Financials

Signet Anticipates Solid Holiday Season, Raises Guidance

FinancialsDec 06, 2022

Signet Anticipates Solid Holiday Season, Raises Guidance

The jewelry giant posted a decline in same-store sales in the third quarter but is gearing up for a season of growth.

20221206_Signet header.jpg
Pictured here is jewelry from the “Jared Atelier” collection by Signet Jewelers-owned banner Jared, featuring elevated, limited-edition pieces. Signet’s third-quarter sales totaled $1.6 billion, up 3 percent year-over-year.
Akron, Ohio—Signet Jewelers Ltd. posted muted overall growth and declining same-store sales in the third quarter as it competed with last year’s strong Q3.

However, the jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared and Kay Jewelers, has raised its fiscal guidance in anticipation of a merry holiday season.

“Our strong third-quarter results exceeded guidance and evidence why we believe Signet is uniquely positioned to deliver consistent market share growth and value creation,” CEO Virginia C. Drosos said in a press release on the company’s Q3 results.

Here are five things to know about its recent earnings report, released Tuesday morning.

Signet had a quiet third quarter.

For the quarter ending Oct. 29, Signet’s sales totaled $1.6 billion, up 3 percent year-over-year against “unusually heightened” sales in last year’s third quarter, which the company attributed to government stimulus programs and its marketing initiatives.

Sales growth in the third quarter was driven by the addition of Blue Nile and Diamonds Direct to its portfolio, said Signet.

Sales were up 33 percent compared with pre-pandemic fiscal 2020.

Same-store sales in the third quarter fell 8 percent year-over-year.

Overall e-commerce sales totaled $331.1 million, up 21 percent year-over-year, as per its 10-Q filing.

In North America, Signet’s banners include Zales and Kay Jewelers as well as Peoples in Canada.

Signet’s third-quarter sales in the region totaled $1.5 billion, up 5 percent year-over-year and up 37 percent compared with pre-pandemic fiscal 2020.

Same-store sales were down 8 percent, which Signet attributed to a higher average transaction value but a lower number of transactions.

E-commerce sales in the region totaled $315.6 million, up 25 percent year-over-year.

Signet’s international banners include Ernest Jones and H. Samuels.

International sales totaled $95.3 million, down 21 percent year over-year and down 10 percent compared with fiscal 2020.

Same-store sales were down 7 percent year-over-year, also due to a higher average transaction value but a lower number of transactions.

“[The results] punctuate that Signet is not a COVID story. We’re successfully executing on a multi-year turnaround of this company, which also led to outperformance on the bottom line,” said Drosos on an earnings call Tuesday morning.

Ahead of the holidays, Signet has upped its full-year guidance.

Signet raised its fiscal outlook, which now includes the recently acquired Blue Nile, as it gears up for a strong holiday season.

“Black Friday weekend was encouraging and met our expectations with our biggest Cyber Monday in our history,” Chief Financial Officer Joan Hilson said on the call.

The company expects fiscal year sales to be in the range of $7.70 billion to $7.84 billion, up from its prior guidance of $7.60 billion to $7.70 billion, but still lower than its initial guidance of $8.03 billion to $8.25 billion.

For the fourth quarter, the company forecasts sales to be in the range of $2.59 billion to $2.66 billion.

Hilson added, “We are seeing shifts in consumer purchasing patterns that indicate many consumers are waiting until later in the season to complete their shopping.”

Signet noted that its revised outlook accounts for a certain level of consumer pressure, including inflation, as well as the impact of the Blue Nile acquisition and the unfavorable impact of foreign currency.

The more optimistic outlook does not account for the potential worsening of the macroeconomic environment or a significant disruption in the supply chain.

“Signet continues to anticipate some shift of consumer discretionary spending away from the jewelry category reflecting pent-up demand for experience-oriented categories,” said the company.

 Related stories will be right here … 

Signet’s bridal sales are on the rise while services revenue soars.

This year was dubbed “the year of the wedding,” with 2.5 million weddings expected to take place in the United States in 2022, and Signet was prepared to make the most of that.

The company looked to not only serve the bride on her special day, but also to capitalize on pre-wedding events, which it sees as a $1.9 billion opportunity in the U.S.

It also launched Bridal by Rocksbox, a subscription box tailored specifically to brides and their wedding parties.

In the third quarter, sales in its bridal category were up 8 percent year-over-year to $2.39 billion.

Drosos noted that 35 percent of new customers in Q3 made their first purchase at a Signet-owned store in the bridal category.

About one-third of bridal customers returned to make a non-bridal purchase, a 40 percent higher repurchase rate than non-bridal customers.

The company has also been focused on growing its services revenue.

Its services, which boost in-store traffic, include Rocksbox, the jewelry subscription business Signet acquired last spring.

It’s also begun offering new services, like appraisals at select Kay Jewelers stores, a new insurance program at Jared, Kay and Zales, and the continued rollout of its Vault Rewards program.

In its first year, more than 1 million customers signed up for the Vault Rewards program, with loyalty members spending 40 percent more on average than non-loyalty customers.

Services revenue climbed 13 percent year-over-year to $504.4 million.

As for its other categories, fashion jewelry sales slipped 5 percent while watch sales were flat.

“We’re seeing spending at higher price points in all of our categories,” noted Drosos.

Signet is well-stocked and well-staffed.

Signet is touting its inventory management skills, noting its current stock features newness while also having the lowest clearance in recent years.

“We are entering this holiday season with the healthiest and most consumer-inspired inventory in our history—down 2 percent despite tiering up our Accessible Luxury offering and with clearance at the lowest levels since our transformation began, excluding acquisitions,” said Hilson.

“Today, nearly all of our inventory is immediately available to customers whenever, wherever and however they choose to browse, shop and buy with us, which is driving inventory turns nearly double pre-transformation levels.”

The company also highlighted its level of staff retention ahead of the holidays.

At Kay, staff turnover is down 17 percent year-over-year, leading to more experienced salespeople on the floor, said Drosos.

Consultants with at least two years of experience in Signet-owned stores sell two times more than those employed for six months or less, she added.

Signet is attracting new customers.

A goal of Signet’s recent Blue Nile acquisition was to reach a customer demographic that is younger, more affluent and ethnically diverse.

“We have acquired 22.5 million new customers over the past five years, driving revenue and market share growth, and these customers are younger, more affluent and highly diverse with meaningful lifetime purchasing power,” said Drosos.

These new customers are also more tech savvy and expect more shopping options, and so, Signet is upping its digital capabilities.

“No other jewelry company is as well positioned as Signet to meet these expectations,” said Drosos.

The company recently introduced social selling options, including the ability to text with a jewelry expert, and has seen a 15 times higher conversion rate compared with a standard e-commerce purchase.

The number of virtual appointments booked has more than doubled, said Drosos, with sales connected to these appointments up 150 percent.

The Latest

Pope Francis
Policies & IssuesMay 14, 2025
Here’s What Happened to Pope Francis’ Ring

Before Pope Leo XIV was elected, a centuries-old procedure regarding the late pontiff’s ring was followed.

1998 Cosmograph Daytona, Ref.16516 Rolex
AuctionsMay 14, 2025
Custom Rolex Pulled From Sotheby’s Sale

The one-of-a-kind platinum Rolex Cosmograph Daytona was estimated to fetch up to $1.7 million.

Jeweler Constance Polamalu at Bloomstone, a store that specializes in lab-grown diamonds
Lab-GrownMay 14, 2025
State of Diamonds: What’s Next for Lab-Grown Diamonds?

While the product has entrenched itself in the market, retailers and consultants are assessing the next phase of the category’s development.

antique_Vegas_2024_by_headshot_stories_9454.jpg
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the Globe

Gain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.

Surveillance footage Tiffany & Co. Seattle robbery
CrimeMay 14, 2025
Seattle Detectives Seek Public’s Help in Tiffany & Co. Robberies

The police are trying to identify the man suspected of robbing two Tiffany & Co. locations in the area.

Weekly QuizMay 08, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Jeff Corey, new chairperson of the board for the Jewelers Board of Trade
MajorsMay 14, 2025
Jeff Corey Elected Chair of JBT Board

The well-known Maine jeweler takes over for Brian Fleming and will serve a one-year term.

Foundrae Ingot Pendant
Policies & IssuesMay 14, 2025
Foundrae Donates $11K to Ethical Metalsmiths

The donation was the result of the brand’s annual Earth Day Ingot event.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest Addition

Supplier Spotlight Sponsored by GIA

Eiseman Jewels ribbon cutting ceremony
IndependentsMay 13, 2025
Eiseman Jewels’ Renovated Dallas Store Is Bigger and Better

Located in NorthPark Center, the revamped store is nearly 2,000 square feet larger and includes the first Tudor boutique in Dallas.

Diamond Council of America
MajorsMay 13, 2025
DCA Announces New Learning Platform, Course Updates

The nonprofit has made updates to the content in its beginner and advanced jewelry sales courses.

Malyia McNaughton and Elyssa Jenkins-Pérez
MajorsMay 13, 2025
BIJC Launches New Education Fund

BIJC President Malyia McNaughton will shift roles to lead the new foundation, and Elyssa Jenkins-Pérez will succeed her as president.

Harwell Godfrey Snake Giza Ring, Foundrae Mind, Body Soul Story Necklace, Tiffany & Co. Tiffany Titan By Pharrell Williams Bracelet
TrendsMay 13, 2025
State of Jewelry Design: The Top 10 Jewelry Trends of the Past Decade

As a nod to the theme of JCK Las Vegas 2025, “Decades,” National Jeweler took a look back at the top 10 jewelry trends of the past 10 years.

Lightbox’s Reminiscence Poet earrings in 14-karat white gold with lab-grown diamonds
Lab-GrownMay 12, 2025
Lightbox to Go Dark by Summer, De Beers Says

The company plans to halt all consumer-facing activity this summer, while Lightbox factory operations will cease by the end of the year.

Stock image of shipping containers
Policies & IssuesMay 12, 2025
Tariffs on Chinese Imports Temporarily Slashed as U.S.-China Reach Deal

Following weekend negotiations, the tax on Chinese goods imported into the United States will drop by 115 percent for the next 90 days.

Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection
Events & AwardsMay 12, 2025
Jewelry By Picasso, Dalí on Display at Florida Art Museum

“Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection” is on view at the Norton Museum of Art through October.

2025 CASE Award Submission Graphic
Events & AwardsMay 12, 2025
CASE Awards Now Accepting Entries For 2025

The deadline to submit is June 16.

Lugano Diamonds store in Greenwich, Connecticut
IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal Investigation

Moti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.

Coeur Percé Scapular Necklace and Love Baby Locket
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s Day

Lichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.

Gemfields emeralds
SourcingMay 09, 2025
Gemfields Resumes Emerald Mining in Zambia

The miner announced plans to recommence open-pit mining at Kagem.

Stock image of a man’s hands in handcuffs
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss

Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.

2025 Met Gala jewelry
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry Moments

Associate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.

instappraise-1.png
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal Format

Sponsored by Instappraise

Exterior of Margot McKinney Beverly Hills Location
IndependentsMay 08, 2025
Margot McKinney Lands in the U.S. With New Boutique

The brand’s first independent location outside of Australia has opened in Beverly Hills, California.

Cathy Marsh
IndependentsMay 08, 2025
Verragio Announces New Regional Sales Manager

Cathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.

Headshot of Smart Age Solutions CEO Emmanuel Raheb
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and Beyond

Connecting with your customers throughout the year is key to a successful holiday marketing push.

Gemfields rough emeralds
SourcingMay 07, 2025
Gemfields Says Emerald Sales Improved in Latest Auction

Its commercial-quality emerald sale held last month totaled more than $16 million, up from about $11 million in September 2024.

Logo for “In the Loupe,” Punchmark’s podcast
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest

National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy