Recovery Ahead says Signet, Despite 7.6% Slide in Sales
September 16, 24
(IDEX Online) - Signet CEO Virginia C. Drosos sees signs of a recovery ahead, despite a slide in sales and a $100m loss during Q2.
The world's largest retailer of diamond jewelry reported total sales of $1.5bn in the 13 weeks to 3 August, down $122.6m or 7.6 per cent year-on-year. Same store sales were down 3.4 per cent.
"Both the internal and external metrics we track indicate increasing engagements as we head into the back-half of the year," said Drosos (pictured) in Signet's Second Quarter Fiscal 2025 Results.
"This combined with growth in new high margin fashion merchandise and services gives us confidence in delivering our annual guidance."
In an earnings call (transcribed by The Motley Fool) she identified three key takeaways - continued momentum in same-store sales, growth in merchandise margin and average transaction value, and the fact that the company was on track to deliver on its guidance for fiscal 2025.
"Our momentum has carried into Q3 with same-store sales turning positive third quarter to date and engagement units now growing," she said.
She also said bridal was finally recovering.
"Engagements also improved in the second quarter by approximately 400 basis points on a same-store sales basis," she said. "As predicted, the Engagement recovery is happening."
For Q3, Signet expects total sales of between $1.345bn and $1.380bn. Full fiscal year guidance remains optimistic, with anticipated total sales between $6.66bn and $7.02bn.