FinancialsMay 31, 2024
Movado’s Q1 Sales Fall 6%FinancialsJun 13, 2024
Signet Awaits Engagement Recovery as Q1 Sales Sink 9%
The company is expecting to see a 5 to 10 percent increase in engagements this year.
A lab-grown diamond engagement ring by the Vera Wang Love brand at Signet Jewelers-owned banner Zales. Signet posted declining revenue and same-store sales in its first quarter.
Akron, Ohio—Signet Jewelers Ltd. posted declining sales in the first quarter but is expecting an engagement recovery ahead.
The jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared, and Kay Jewelers, also reaffirmed its recent guidance boost.
"Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May," Signet Jewelers CEO Virginia C. Drosos said in a company press release.
The May momentum showed up just in time for Mother’s Day sales.
Drosos noted a 4 percent increase in engagement ring sales in North America in the quarter, not including sales at its digital banners, James Allen and Blue Nile.
The company is still working to resolve the integration issues at its digital banners, which have led to fulfillment issues.
Drosos added, “Further, customers continue to respond well to our new product offerings and loyalty program, reflected in a meaningful improvement in comparable sales for fashion since February.”
Signet’s services category was once again a highlight, said Drosos, outperforming its merchandise in the quarter.
“We expect continued momentum in the second quarter, leading to a positive same-store sales inflection in the second half of fiscal 2025."
For the quarter ending May 4, Signet’s overall sales totaled $1.5 billion, down 9 percent year-over-year (10 percent on a constant currency basis.)
Same-store sales fell 9 percent.
In North America, Signet’s banners include Zales and Kay Jewelers, as well as Peoples in Canada.
Signet’s first-quarter sales in the region totaled $1.4 billion, down 9 percent year-over-year, due to a 2 percent decrease in total average transaction value (ATV) on a lower number of transactions.
Same-store sales were down 9 percent.
Signet’s international banners include Ernest Jones and H. Samuels.
International sales totaled $77.2 million, down 17 percent year-over-year (20 percent on a constant currency basis) due to a 15 percent drop in ATV and a lower number of transactions.
International same-store sales were down 3 percent in the quarter.
The ATV drop is in part related to the sale of 15 watch locations to Watches of Switzerland.
The company is looking to improve its U.K. business, closing 23 stores overall in the quarter, mainly Ernest Jones locations.
Signet is looking to close 20 to 30 stores and renovate 300 existing locations this year, said Chief Financial Officer Joan Hilson on an earnings call Thursday morning.
Related stories will be right here …
The jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared, and Kay Jewelers, also reaffirmed its recent guidance boost.
"Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May," Signet Jewelers CEO Virginia C. Drosos said in a company press release.
The May momentum showed up just in time for Mother’s Day sales.
Drosos noted a 4 percent increase in engagement ring sales in North America in the quarter, not including sales at its digital banners, James Allen and Blue Nile.
The company is still working to resolve the integration issues at its digital banners, which have led to fulfillment issues.
Drosos added, “Further, customers continue to respond well to our new product offerings and loyalty program, reflected in a meaningful improvement in comparable sales for fashion since February.”
Signet’s services category was once again a highlight, said Drosos, outperforming its merchandise in the quarter.
“We expect continued momentum in the second quarter, leading to a positive same-store sales inflection in the second half of fiscal 2025."
For the quarter ending May 4, Signet’s overall sales totaled $1.5 billion, down 9 percent year-over-year (10 percent on a constant currency basis.)
Same-store sales fell 9 percent.
In North America, Signet’s banners include Zales and Kay Jewelers, as well as Peoples in Canada.
Signet’s first-quarter sales in the region totaled $1.4 billion, down 9 percent year-over-year, due to a 2 percent decrease in total average transaction value (ATV) on a lower number of transactions.
Same-store sales were down 9 percent.
Signet’s international banners include Ernest Jones and H. Samuels.
International sales totaled $77.2 million, down 17 percent year-over-year (20 percent on a constant currency basis) due to a 15 percent drop in ATV and a lower number of transactions.
International same-store sales were down 3 percent in the quarter.
The ATV drop is in part related to the sale of 15 watch locations to Watches of Switzerland.
The company is looking to improve its U.K. business, closing 23 stores overall in the quarter, mainly Ernest Jones locations.
Signet is looking to close 20 to 30 stores and renovate 300 existing locations this year, said Chief Financial Officer Joan Hilson on an earnings call Thursday morning.
On the call, Drosos also spoke about the role of lab-grown diamonds in the company, which it refers to as lab-created diamonds.
“Over the past five years, LCD production has grown more efficient and has allowed LCD cost in retail to come down, providing attractive options for many price-conscious customers that are looking for larger carat options than they can afford in a natural diamond engagement ring,” she said.
“Our merchandise strategy and trade-up selling have been effective at largely maintaining our ATV while many engagement ring consumers looking to maintain a long-term value continue to be attracted to natural diamonds for their rarity and uniqueness.”
She noted the popularity of LGDs in fashion and the room for expansion in that category.
An increased number of lab-grown diamond fashion jewelry options led to a 14 percent increase year-over-year in lab-grown diamond fashion revenue in Q1, she said.
In an effort to bolster natural diamonds, Signet recently announced a partnership with De Beers Group.
The two are working together on a strategy to promote natural diamonds ahead of the expected uptick in engagements in the coming years.
Signet’s data shows engagements typically occur within three years of a couple dating, so recovery was said to begin later in fiscal 2024 and rebound in fiscal 2025.
Hilson said the company expects to see engagements up 5 to 10 percent this year.
Citing its own research, Signet said it expects to see a 25 percent increase in engagements, particularly for zillennial (the name given to those individuals born on the cusp of the millennial and Gen Z generations) couples, over the next three years as the effects of pandemic lockdowns fade.
Looking to the year ahead, Signet reaffirmed its guidance, expecting fiscal 2025 sales of $6.66 billion to $7 billion, with same-store sales ranging from down 5 percent to up 1 percent.
The guidance was updated April 3 following a preferred shares repurchase transaction, which increased its non-GAAP diluted earnings per share outlook to a range of $9.90 to $11.52 per diluted share from its previous range of $9.08 to $10.48 per diluted share.
In the second quarter, the company expects sales between $1.46 billion to $1.52 billion, with same-store sales down between 2 and 6 percent.
More on Financials
The Latest
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown DiamondsIt will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 SessionsFrom design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry BusinessWhen investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.Her new role is director of strategic initiatives.
Weekly QuizMay 30, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJun 04, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into GoldThe designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.
SurveysJun 03, 2025
Consumer Confidence Improves in May The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand AmbassadorThe actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade ReportsThe company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat RubyThe large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.
GradingJun 02, 2025
GSI Opens New Lab in Thailand Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June Those born in June have a myriad of options for their birthstone jewelry.
SourcingJun 02, 2025
David Allouche Joins Grandview Klein DiamondsThe diamond industry veteran has been named its senior sales executive.
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable EnvironmentBetween tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ NecklaceDesigned by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs InvalidHowever, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry LineThe pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.
Supplier BulletinMay 29, 2025
Inoveo Platinum Grain, Exclusively Distributed by StullerSponsored by Stuller
SourcingMay 29, 2025
Grizzly Auctions 6,620-Carat EmeraldIt was featured in the miner’s latest sale, which brought in $24.8 million.
TechnologyMay 29, 2025
GemFind Launches AI Product Description SoftwareGemText AI uses artificial intelligence to generate tailored product titles, descriptions, and tags with jewelry-specific language.
MajorsMay 28, 2025
Graff Unveils New Las Vegas FlagshipThe 3,300-square foot location is the jeweler's largest store in North America.
CrimeMay 28, 2025
8 Convicted in Kim Kardashian Jewelry Heist TrialAging and with myriad health issues, none will serve time for their roles in robbing the billionaire celebrity at gunpoint in 2016.
CollectionsMay 28, 2025
NY Liberty’s 2024 Championship Rings Honor Historic WinThe WNBA team received rings imbued with meaning, from leaf motifs and its Liberty torch to the number of diamonds used.
MajorsMay 28, 2025
Andrew Rickard Named JBT PresidentA longtime executive at RDI Diamonds, Rickard has served on the JBT board for the past five years.
MajorsMay 27, 2025
MJSA to Become Part of Jewelers of America The two organizations have signed an affiliation agreement that’s expected to be finalized in the coming weeks.
