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Signet continues to post strong sales
Same-store sales increased 4 percent in the retailer’s fiscal first quarter, with both bridal and diamond fashion jewelry performing particularly well.
Akron, Ohio--Signet Jewelers Ltd. reported Thursday that its first quarter comps rose 4 percent year-over-year, with its U.K. stores and newly acquired Zale division leading the way.
Total sales in the quarter ended May 2 reached $1.53 billion, up from $474.5 million in the prior-year period, primarily due to the acquisition of Zale completed in May 2014.
In North America, Zale division stores--Zales, Piercing Pagoda and Gordon’s Jewelers as well as Peoples and Mappins Jewellers in Canada--outperformed Sterling Jewelers, which includes Kay Jewelers and Jared the Galleria of Jewelry stores.
Zale posted a 6 percent year-over-year increase in same-store sales during the quarter, while Kay’s comps were up 4 percent and Jared’s same-store sales essentially were flat.
Diamond jewelry, both fashion and bridal, branded and non-branded, did well in all stores, Signet CEO Mark Light said during the company’s earnings call Thursday morning.
Sales were strong of the Diamonds in Rhythm and Unstoppable Love lines of diamond fashion jewelry carried in Kay/Jared and Zales, respectively.
Signet also launched an Instagram and Pinterest account for Kay Jewelers during the quarter.
For Jared, Signet’s weakest performer in the quarter, Light said they are testing radio advertising targeting bridal customers and launched the chain’s first brand book during the quarter, used for direct mail marketing and in stores.
Overall, the first quarter of fiscal 2016 marked the 22nd consecutive quarter of positive comps for Sterling Jewelers, while Zale, which Signet acquired last year, also has been consistently posting positive numbers.
“I feel as good as ever about our future for the near, the medium and long term,” Light said.
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