Another Revenue Dip for Signet
December 06, 23
(IDEX Online) - Signet Jewelers yesterday (5 December) announced a 12 per cent drop in Q3 revenue to $1.4bn, in line with its expectations.
Bridal, which has historically accounted for almost half of Signet's sales is still suffering the post-Covid lag, but the company is forecasting Q4 sales of $2.4bn to $2.6bn as holiday spending drives up revenue.
In Q2 the company - which numbers Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, and Diamonds Direct among its brands - recorded an eight per cent drop in revenue in the previous quarter, down from $1.75bn to $1.61bn.
"We delivered earnings on the high end of our expectations driven by continued progress on our strategic goals," said Signet CEO Virginia C. Drosos.
"Trends through Black Friday weekend, including sequential improvement in engagement trends, are performing in line with guidance expectations for the fourth quarter."
Total sales in the three months to 28 October were down $190.8m year-on-year, and same store sales fell by 11.8 per cent. GAAP operating income was down $35.1m to $13.3m.
Joan Hilson, chief financial, strategy and services officer, said: "We're reaffirming guidance for FY2024 with the full year outlook updated for the profitable and strategic sale of 15 primarily luxury watch stores in the UK.
"We continue to make progress expanding gross margin through merchandise and sourcing strategies and growth in services revenue."
Signet, the world's largest diamond jewelry retailer, is forecasting FY2024 sales (to 3 February 2024) of $7.07bn to $7.27bn.
Pic of a Kay store, part of the Signet group