FinancialsApr 13, 2021
Signet Ups Fiscal Guidance Following Strong Q1FinancialsJun 10, 2021
Signet Ups Fiscal Guidance Again After Strong Q1
The jewelry giant’s sales nearly doubled in the first quarter, raising its expectations for the fiscal year ahead.
A diamond ring from the Jared x Royal Asscher bridal collection. Jared owner Signet Jewelers posted strong first quarter results and raised its financial guidance for the fiscal year ahead.
Akron, Ohio—Signet Jewelers Ltd. started its fiscal year on a high note with sales nearly doubling year-over-year, leading the jewelry giant to raise its guidance for the year ahead.
In the first quarter ending May 1, sales totaled $1.69 billion, up 98 percent year-over-year, with same-store sales up 107 percent.
Compared with the first quarter in fiscal 2020, prior to the COVID-19 pandemic, sales were up 18 percent.
Signet expects to close more than 100 stores this fiscal year (FY 2022), but will open as many as 100 locations, mainly kiosks like the high-performing Piercing Pagoda kiosks.
The company operates 2,833 stores and kiosks as of May 1, compared with 3,172 locations last May.
“We delivered strong performance across our portfolio,” CEO Virginia Drosos said in a press release announcing the results.
“While the jewelry category is experiencing meaningful growth, we are outpacing market growth and gaining share consistent with our ‘Inspiring Brilliance’ strategy.”
“Inspiring Brilliance” is the next stage of Signet’s turnaround plan. It includes growing services revenue, expanding its luxury and value segments, bolstering digital commerce, and utilizing its data.
E-commerce sales in the first quarter more than doubled, up 110 percent to $346.3 million, while brick-and-mortar sales grew 106 percent year-over-year.
The jewelry giant has been improving its digital commerce capabilities in recent quarters, providing virtual consultants and other elements to blend the in-store and online experiences.
“For the first time, ship-from-store automation is available across all banners,” said Chief Financial Officer Joan Hilson on the company’s earnings call Thursday morning.
Drosos told the story of a customer who reached out in search of a cushion-cut engagement ring. The catch was he needed it the very next day.
The customer shopped online, reached out to a virtual consultant, shopped alongside an associate and then came in to see the diamond in person.
The exchange utilized all of Signet’s digital offerings, ending with a happy customer and a $25,000 sale, said Drosos.
Related stories will be right here …
In the first quarter ending May 1, sales totaled $1.69 billion, up 98 percent year-over-year, with same-store sales up 107 percent.
Compared with the first quarter in fiscal 2020, prior to the COVID-19 pandemic, sales were up 18 percent.
Signet expects to close more than 100 stores this fiscal year (FY 2022), but will open as many as 100 locations, mainly kiosks like the high-performing Piercing Pagoda kiosks.
The company operates 2,833 stores and kiosks as of May 1, compared with 3,172 locations last May.
“We delivered strong performance across our portfolio,” CEO Virginia Drosos said in a press release announcing the results.
“While the jewelry category is experiencing meaningful growth, we are outpacing market growth and gaining share consistent with our ‘Inspiring Brilliance’ strategy.”
“Inspiring Brilliance” is the next stage of Signet’s turnaround plan. It includes growing services revenue, expanding its luxury and value segments, bolstering digital commerce, and utilizing its data.
E-commerce sales in the first quarter more than doubled, up 110 percent to $346.3 million, while brick-and-mortar sales grew 106 percent year-over-year.
The jewelry giant has been improving its digital commerce capabilities in recent quarters, providing virtual consultants and other elements to blend the in-store and online experiences.
“For the first time, ship-from-store automation is available across all banners,” said Chief Financial Officer Joan Hilson on the company’s earnings call Thursday morning.
Drosos told the story of a customer who reached out in search of a cushion-cut engagement ring. The catch was he needed it the very next day.
The customer shopped online, reached out to a virtual consultant, shopped alongside an associate and then came in to see the diamond in person.
The exchange utilized all of Signet’s digital offerings, ending with a happy customer and a $25,000 sale, said Drosos.
Though the first quarter was strong, Signet said it is prepared for a shift of consumer discretionary spending away from jewelry to other experience-based categories as the vaccine rollout continues. In response, the company will ramp up its marketing efforts.
Looking to North America, where Signet’s banners include Kay, Jared and Zales, first-quarter same-store sales grew 117 percent, e-commerce sales 113 percent, and brick-and-mortar same-store sales 118 percent.
The average transaction value was up 15 percent year-over-year while the number of the transactions was up 90 percent.
When compared to the first quarter two years ago, pre-pandemic, Signet said foot traffic remains down but it has delivered growth over that period through higher conversion and average transaction value.
Sales in the bridal category were up 121 percent year-over-year in the quarter while sales in the fashion category were up 116 percent.
Watch sales were up 52 percent while the “others” category, which includes gift items, beads, repairs, service plans and other non-jewelry items, saw sales grow 26 percent.
By banner, Piercing Pagoda was the top performer, with sales up 189 percent.
Sales at e-tailer James Allen were up 132 percent year-over-year while Kay Jewelers saw sales more than double, up 103 percent.
Sales at Zales also rose 103 percent while sales at Jared were up 95 percent.
Canadian chain Peoples Jewellers posted a 40 percent jump in sales for the quarter.
Looking ahead, Signet raised its fiscal 2022 revenue guidance, expecting revenue of $6.5 billion-$6.65 billion, up from its prior guidance of $6 billion-$6.14 billion.
This marks the second time Signet has upped its guidance for the fiscal year.
The company expects second-quarter revenue of $1.6 billion to $1.65 billion.
Same-store sales for the fiscal year are expected to rise 24 to 27 percent, up from prior guidance of 17 to 20 percent.
In the second quarter, same-store sales are expected to be up 76 to 82 percent.
The company said it still expects same-store sales to be negative in the second half of fiscal 2022.
Signet’s board of directors has also reinstated its dividend program on the common shares.
Looking to North America, where Signet’s banners include Kay, Jared and Zales, first-quarter same-store sales grew 117 percent, e-commerce sales 113 percent, and brick-and-mortar same-store sales 118 percent.
The average transaction value was up 15 percent year-over-year while the number of the transactions was up 90 percent.
When compared to the first quarter two years ago, pre-pandemic, Signet said foot traffic remains down but it has delivered growth over that period through higher conversion and average transaction value.
Sales in the bridal category were up 121 percent year-over-year in the quarter while sales in the fashion category were up 116 percent.
Watch sales were up 52 percent while the “others” category, which includes gift items, beads, repairs, service plans and other non-jewelry items, saw sales grow 26 percent.
By banner, Piercing Pagoda was the top performer, with sales up 189 percent.
Sales at e-tailer James Allen were up 132 percent year-over-year while Kay Jewelers saw sales more than double, up 103 percent.
Sales at Zales also rose 103 percent while sales at Jared were up 95 percent.
Canadian chain Peoples Jewellers posted a 40 percent jump in sales for the quarter.
Looking ahead, Signet raised its fiscal 2022 revenue guidance, expecting revenue of $6.5 billion-$6.65 billion, up from its prior guidance of $6 billion-$6.14 billion.
This marks the second time Signet has upped its guidance for the fiscal year.
The company expects second-quarter revenue of $1.6 billion to $1.65 billion.
Same-store sales for the fiscal year are expected to rise 24 to 27 percent, up from prior guidance of 17 to 20 percent.
In the second quarter, same-store sales are expected to be up 76 to 82 percent.
The company said it still expects same-store sales to be negative in the second half of fiscal 2022.
Signet’s board of directors has also reinstated its dividend program on the common shares.
More on Financials
The Latest
Recorded WebinarsJun 24, 2022
Vegas Jewelry Recap: The Editors Weigh InWatch the webinar in which National Jeweler’s editors talk about jewelry market week trends and their predictions for the rest of 2022.
MajorsJun 24, 2022
Banter by Piercing Pagoda Celebrates Pride with ‘SayGay’ NecklaceAll proceeds up to $25,000 will benefit the It Gets Better Project, a nonprofit that supports LGBTQ+ youth.
Brought to you by
Discover The Extraordinary Italian Jewelry In Las Vegas!Experience all the Italian Jewelry market has to offer in Las Vegas.
CollectionsJun 24, 2022
Piece of the Week: Marie Lichtenberg’s Hidden Message LocketIt’s a reminder that life is best lived with discretion.
Weekly QuizJun 23, 2022
This Week’s QuizTest your knowledge of the latest jewelry news with this quick test.
TechnologyJun 24, 2022
Cloud-Based POS Software Jewel360 Launches for Jewelry RetailersThe end-to-end software allows for real-time control over all sales, inventory, repairs, customer communications, and marketing.
EditorsJun 23, 2022
Antique Show Observations From a First-Time AttendeeAssociate Editor Lenore Fedow shares her impressions of the Las Vegas Antique Jewelry & Watch Show and a few of her favorite finds.
Brought to you by
3 Reasons to Offer Estate Buying at Your StoreProvide your customers with a seamless selling solution by partnering with Windsor Jewelers, Inc.
GradingJun 23, 2022
AIGS Launches Grading Report for ‘Santa Maria’ AquamarineThe Asian Institute of Gemological Sciences aims to set a color standard for the trade name.
SourcingJun 23, 2022
Rough Diamond Sales Rise Again for De Beers Sales were up 36 percent year-over-year in June and are pacing 24 percent ahead of last year at this point.
AuctionsJun 23, 2022
Auction House Freeman’s Appoints First Rep in Florida Kate Della Monica, a senior specialist in the Jewelry and Watches department, will relocate to the Sunshine State.
Lab-GrownJun 22, 2022
LVMH Luxury Ventures Sinks Money Into Lab-Grown Diamond Start-UpLVMH’s investment arm has taken a stake in Lusix, a lab-grown diamond company based in Israel.
AuctionsJun 22, 2022
Here’s How Two 100-Plus-Carat Diamonds Did at AuctionSotheby’s New York put a colorless diamond and a fancy deep orange-brown diamond up for sale last week, with mixed results.
CrimeJun 22, 2022
Leviev Diamonds Launches Bracelet to Help ‘Tinder Swindler’ Victims Profits will help them recoup financial losses.
MajorsJun 22, 2022
Swarovski Names First Non-Family CEORetail veteran Alexis Nasard will step in as CEO on July 4.
SourcingJun 22, 2022
Edward Asscher to Remain WDC President for Another YearThe organization also extended the terms of Vice President Feriel Zerouki and Treasurer Ronnie VanderLinden.
ColumnistsJun 21, 2022
State of the Majors 2022: Reflections on ResilienceAfter suffering a professional setback, columnist Peter Smith reflects on our ability to bounce back even when the hits keep on coming.
IndependentsJun 21, 2022
Jeweler Tommy Glatz, Known for Being Creative and Kind, Dies at 68Glatz owned and operated Glatz Jewelers in Aliquippa, Pennsylvania for more than 40 years.
Events & AwardsJun 21, 2022
24 Karat Club of Southern California Will Honor These Industry LeadersThe organization will present three awards at its annual dinner, dance, and gala in October.
MajorsJun 21, 2022
David Yurman Hires Chief of People, StrategyFormer McKinsey partner Emily Yueh marks new president Evan Yurman’s first hire.
TrendsJun 17, 2022
Britney Spears Wore Over $500K of Stephanie Gottlieb Diamonds at Her WeddingThe New York jeweler also made the pop star’s wedding bands.
AuctionsJun 17, 2022
5-Carat Paraiba Tourmaline Ring to Hit the Auction BlockIt’s predicted to sell for up to $484,000 during the Bonhams Hong Kong Jewels and Jadeite auction on June 22.
Events & AwardsJun 17, 2022
WJA Foundation to Offer Tech Scholarships for Women of ColorThe recipient will receive up to $17,500 toward a tech-focused certification or program of their choice.
CollectionsJun 17, 2022
Piece of the Week: Gemella’s ‘Stella’ NecklaceIt’s as versatile as it is glamorous.
TechnologyJun 16, 2022
Cartier, Amazon Suing ‘Influencer,’ Sellers Over Counterfeit ‘Love’ JewelryThe alleged scheme involving fake “Love” bracelets, necklaces and rings was designed to circumvent Amazon’s counterfeit detection tools.
MajorsJun 16, 2022
Helzberg CEO Beryl Raff to RetireChief Financial Officer Brad Hampton will take over as the retailer’s new CEO.
