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
MajorsAug 26, 2024
Longtime Industry Sales Trainer Lenny Zell Dies at 97Said to be the first to write a jewelry sales manual for the industry, Zell is remembered for his zest for life.
WatchesAug 26, 2024
IWC Is Sending Its Watches to SpaceThe company outfitted the Polaris Dawn spaceflight crew with watches that will later be auctioned off to benefit St. Jude’s.
AuctionsAug 23, 2024
Abernethy Pearl Tops Estimates at Auction A buyer paid more than $100,000 for the gemstone known as “Little Willie,” setting a new auction record for a Scottish freshwater pearl.
Brought to you by
Watch: Natural Diamonds: A Great (but Often Untold) Geology StorySupplier Spotlight Sponsored by GIA.
CollectionsAug 23, 2024
Piece of the Week: Gumuchian’s Colorful ‘Spectrum’ NecklaceAnita Gumuchian created the 18-karat yellow gold necklace using 189 carats of colored gemstones she spent the last 40 years collecting.
Weekly QuizAug 23, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingAug 22, 2024
2,492-Carat Diamond Recovered From Botswana Diamond MineThe giant gem came from Karowe, the same mine that yielded the 1,109-carat Lesedi La Rona and the 1,758-carat Sewelô diamond.
TrendsAug 22, 2024
Kaley Cuoco Has a Three-Stone Engagement Ring With a TwistThe three-stone ring was designed by Shahla Karimi Jewelry and represents Cuoco, her fiancé Tom Pelphrey, and their child.
Brought to you by
Watch: Forging the Next Generation of Skilled Bench Jewelers at GIASupplier Spotlight Sponsored by GIA
CollectionsAug 22, 2024
Greenwich St. Jewelers Collabs with TikTok Jewelry Content CreatorThe Manhattan jewelry store has partnered with Xarissa B. of Jewel Boxing on a necklace capsule collection.
TechnologyAug 21, 2024
Instagram’s Notes Feature Expands to Posts, ReelsActing as temporary virtual Post-it notes, Notes are designed to help strengthen mutual connections, not reach new audiences.
TrendsAug 21, 2024
Carol Woolton To Release New BookThe jewelry historian discusses the history and cultural significance of jewelry throughout time and across the globe.
TrendsAug 21, 2024
Amanda’s Style File: Shimmy and ShakeFrom fringe and tassels to pieces that give the illusion they are in motion, jewelry with movement is trending.
IndependentsAug 20, 2024
Mixed-Media Jewelry Artist Jan Yager Dies at 72The designer and maker found community around her Philadelphia studio and creative inspiration on the sidewalks below it.
ColumnistsAug 20, 2024
Google Ads Payment Policy Change: What It Means For YouThe change to accepted payment methods for Google Ads might seem like an irritation but actually is an opportunity, Emmanuel Raheb writes.
IndependentsAug 20, 2024
Pat Henneberry Releases MemoirThe industry consultant’s new book focuses on what she learned as an athlete recovering from a broken back.
Events & AwardsAug 20, 2024
The Ethical Gem Fair Is Going to CaliforniaThe fair will take place on the West Coast for the first time, hosted by Altana Fine Jewelry in Oakland, California.
MajorsAug 20, 2024
Kathy Hillelson Joins Board of WJA Foundation Hillelson is a second-generation diamantaire and CEO of Owl Financial Group.
Events & AwardsAug 19, 2024
Nominations Are Open for the 2025 Gem AwardsSubmissions in the categories of Jewelry Design, Media Excellence, and Retail Excellence will be accepted through this Friday, Aug. 23.
AuctionsAug 19, 2024
Scotland’s Famed Abernethy Pearl Is Up for Sale Known as “Little Willie,” it’s the largest freshwater pearl found in recent history in Scotland and is notable for its shape and color.
IndependentsAug 19, 2024
Kentucky Jeweler Closing After 89 YearsClements Jewelers in Madisonville cited competition from larger retailers and online sellers as the driving factor.
SourcingAug 19, 2024
A&C Gem Trading Corp. Relocates, Opens Wholesale ShowroomThe gemstone company is moving to the Ross Metal Exchange in New York City’s Diamond District.
CrimeAug 16, 2024
Jewels Stolen During Green Vault Heist Back on DisplayMost of the 18th century royal jewelry taken from the Green Vault Museum in Dresden, Germany, in 2019 went back on display this week.
IndependentsAug 16, 2024
Louis Anthony Jewelers Announces First Resort StoreThe Pittsburgh jeweler has opened a store in the nearby Nemacolin resort.
CollectionsAug 16, 2024
Piece of the Week: Jonne Amaya’s ‘Cat Claw’ NecklaceWith a 40-carat cabochon emerald, this necklace is as powerful and elegant as a cat.
Events & AwardsAug 16, 2024
IJO Names Jewel-Craft as VIP Vendor of the YearThe Erlanger, Kentucky-based company was recognized for its reliability when it comes to repairs and fast turnaround times.
SourcingAug 15, 2024
Greenland Ruby Is Up For SaleUnable to pay its debts, the ruby and sapphire miner is looking to restructure and become a “competitive and attractive” company.
TrendsAug 15, 2024
Paola De Luca to Debut Trendbook 2026+ at VicenzaoroThe trend forecaster’s latest guide has intel on upcoming trends in the jewelry market.
