FinancialsSep 06, 2024
Movado Lowers Guidance as Q2 Sales SlipFinancialsSep 12, 2024
Signet Jewelers’ Q2 Sales Fall 8%
The jewelry giant said it expects to see an uptick in engagements in the second half of the year.
An image from Signet Jewelers-owned Zales’ new marketing campaign, launched in celebration of its 100th anniversary. Signet Jewelers’ sales declined in the second quarter, but it said an engagement recovery is on the way.
Akron, Ohio—Signet Jewelers Ltd. sales continued to decline in the second quarter, but it’s seeing brighter days ahead.
The jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared, and Kay Jewelers, reiterated its prediction that the number of engagements will rise in the near future, following a post-pandemic slump.
“Both the internal and external metrics we track indicate increasing engagements as we head into the back-half of the year,” said Signet Jewelers CEO Virginia C. Drosos in a statement.
Signet’s previously shared data showed engagements occur within three years of a couple dating, but they have been happening less frequently in the wake of the COVID-19 pandemic, which limited people’s ability to connect.
The company previously forecast a rebound in engagements in fiscal 2025, Signet’s current fiscal year. Its current guidance assumes engagements will rise up to 5 percent this year.
On a Q1 earnings call, the company forecast a rise of 5 to 10 percent in engagements.
For the quarter ending Aug. 3, Signet’s overall sales totaled $1.5 billion, down 8 percent year-over-year. Same-store sales fell 3 percent, in line with its prior guidance for the quarter.
Drosos noted the company reported its fifth consecutive quarter of sequential same-store sales improvement.
On an earnings call Thursday morning, Drosos said, “same-store sales improved to a low-single-digit decline in the second quarter led by an acceleration in fashion but also with improvement in bridal and continued strength in services.”
“We continue to focus on new, innovative, and on-trend pieces. This is a proven strategy for us in tougher macroenvironments and there's been a strong response from customers.”
In the first half, sales totaled $3 billion, down 9 percent year-over-year. Same-store sales fell 6 percent.
In North America, Signet’s banners include Zales and Kay Jewelers, as well as Peoples in Canada.
Signet’s second-quarter sales in the region totaled $1.4 billion, down 7 percent year-over-year, due to a 2 percent increase in average transaction value (ATV) on a lower number of transactions. Same-store sales in the region were down 4 percent.
Signet’s international banners include Ernest Jones and H. Samuel.
International quarterly sales totaled $86.5 million, down 15 percent year-over-year (16 percent on a constant currency basis), due to a 14 percent decrease in ATV on a lower number of transactions.
International same-store sales were up 2 percent in the quarter.
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, reiterated its prediction that the number of engagements will rise in the near future, following a post-pandemic slump.
“Both the internal and external metrics we track indicate increasing engagements as we head into the back-half of the year,” said Signet Jewelers CEO Virginia C. Drosos in a statement.
Signet’s previously shared data showed engagements occur within three years of a couple dating, but they have been happening less frequently in the wake of the COVID-19 pandemic, which limited people’s ability to connect.
The company previously forecast a rebound in engagements in fiscal 2025, Signet’s current fiscal year. Its current guidance assumes engagements will rise up to 5 percent this year.
On a Q1 earnings call, the company forecast a rise of 5 to 10 percent in engagements.
For the quarter ending Aug. 3, Signet’s overall sales totaled $1.5 billion, down 8 percent year-over-year. Same-store sales fell 3 percent, in line with its prior guidance for the quarter.
Drosos noted the company reported its fifth consecutive quarter of sequential same-store sales improvement.
On an earnings call Thursday morning, Drosos said, “same-store sales improved to a low-single-digit decline in the second quarter led by an acceleration in fashion but also with improvement in bridal and continued strength in services.”
“We continue to focus on new, innovative, and on-trend pieces. This is a proven strategy for us in tougher macroenvironments and there's been a strong response from customers.”
In the first half, sales totaled $3 billion, down 9 percent year-over-year. Same-store sales fell 6 percent.
In North America, Signet’s banners include Zales and Kay Jewelers, as well as Peoples in Canada.
Signet’s second-quarter sales in the region totaled $1.4 billion, down 7 percent year-over-year, due to a 2 percent increase in average transaction value (ATV) on a lower number of transactions. Same-store sales in the region were down 4 percent.
Signet’s international banners include Ernest Jones and H. Samuel.
International quarterly sales totaled $86.5 million, down 15 percent year-over-year (16 percent on a constant currency basis), due to a 14 percent decrease in ATV on a lower number of transactions.
International same-store sales were up 2 percent in the quarter.
In recent quarters, the company noted integration issues at its digital banners, which had led to fulfillment issues, but said it was working to resolve them.
In Q2, the issues contributed to an operating loss of $100.9 million, or 7 percent of sales.
“The impairment of the digital banners was substantially caused by the ongoing challenges from the Blue Nile integration, the lag in engagement recovery, and to a much lesser degree, impacts from market declines in lab-created diamond pricing,” said the company.
Chief Financial, Strategy, and Services Officer Joan Hilson shared insight on the quarter and the year ahead.
“Our strategy of balancing new merchandise, competitive pricing, and sourcing savings drove merchandise margin expansion of 120 basis points and an increase in average transaction value compared to this time last year,” said Hilson.
“In addition to continuing this strategy, our fiscal year guidance includes an increase in cost savings, now up to $200 million for the year, which we believe provides for flexibility in a competitive environment in the back-half."
Looking to the year ahead, Signet reaffirmed its guidance, expecting fiscal 2025 sales of $6.66 billion to $7.02 billion, with same-store sales ranging from down 5 percent to up 1 percent.
In the third quarter, the company expects sales between $1.35 billion and $1.38 billion, with same-store sales between a 1 percent dip and a 2 percent increase.
More on Financials
The Latest
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in ItalyLocated in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen BrownThe basketball stars wear men’s jewelry from the “Curb Chain” collection.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
