Signet Sales + 15.1% in Q2 2016

(IDEX Online News) – Signet has announced that total sales increased by 15.1 percent in the second quarter. According to CEO Mark Light, the company saw sales and profit growth coming from virtually all of its store concepts, across various geographies, with contributions across our selling channels and from several functional areas.

“We consistently outperformed the jewelry market and the total retail market,” he said in a conference call discussing the results. “And based on results to-date, we appear poised to deliver another year of industry outperformance.”

In the Sterling division, total sales increased 5.9 percent to $858.5 million, which included a same-store sales increase of 3.3 percent. The company said sales increases were broad-based across store banners, product brands and non-brands, as well as omni-channel. Bridal and diamond jewelry were also particularly strong. The average transaction price in Sterling increased by 4.2 percent, although the number of transactions decreased by 2.5 percent due to merchandise mix.

The Zale division total sales were $389.3 million for the quarter, which included a same-store sales increase of 5.8 percent. Signet said branded bridal and branded diamond fashion jewelry was particularly strong.

In the UK, total sales decreased 2.3 percent, but increased 6.4 percent on a constant exchange basis. Sales were $159.1 million with a comparable sales increase of 5.1 percent, which was driven primarily by Ernest Jones. The UK saw strong results in bridal and watches. The average transaction price increased 4.3 percent and the number of transactions also increased by 1.8 percent, driven by merchandise mix.

Light said that from a merchandise perspective, diamond jewelry was strong, with bridal growing faster than Signet's overall rate of growth. Bridal brands such as Neil Lane, Vera Wang Love and Tolkowsky performed extremely well. He also said that Diamonds in Rhythm, Unstoppable Love and the solitaire diamond earrings programs saw very good results.

According to CFO Michele Santana, the company is continuing to become more vertically integrated by procuring more rough diamonds to “meet the needs of all of our divisions and to support our strategic initiative to be best in bridal.”

Looking ahead, Light mentioned a number of merchandise initiatives. These include Miracle Links, a pendant for new moms, symbolizing the birth of a new child, a new partnership with ALEX AND ANI, which will test in 108 Jared stores beginning in mid-September and the Chosen Diamond program, which will be tested in 60 Jared stores this fall. The program provides documentation from rough to finished polished diamond. In addition, Kay jewelers will be one of the select few that will sell Star Wars fine jewelry and beads this holiday season.