Signet Jewelers bests estimates with 5% sales uptick
UK and North America-focused jewellery giant Signet Jewelers is starting off its fiscal year on a positive note, beating estimates for its fiscal first quarter.
Total sales for the quarter ended May 5, 2018, increased 5.5 percent to $1.5 billion. Total same store sales performance were down 0.1 percent, however, versus the prior year quarter, as a result of credit outsourcing transition issues.
The company, which owns brands like Zales and Kay Jewelers, said the increase during the quarter was due to the addition of James Allen (acquired in September 2017), among other factors.
As with many other retailers, e-commerce sales were also a bright spot for the company. E-commerce sales in the first quarter including James Allen were $146.5 million, up 80.9 percent on a reported basis.
Earlier this year, Signet announced plans to close over 200 stores as part of its three-year 'Path to Brilliance' transformation plan. That plan involves turning the firm into an omni-channel “category leader”.
“As we begin to implement our Signet Path to Brilliance transformation plan, we remain focused on driving operational improvement by executing on our Customer First, OmniChannel and Culture of Agility and Efficiency pillars,” said Signet Jewelers Chief Executive Officer Virginia C. Drosos.
“In the first quarter, we saw signs of stabilization in our overall sales and once again achieved double digit growth in eCommerce.”
Looking ahead, the company is maintaining its full year 2019 guidance including expected total sales between $5.9 billion to $6.1 billion. Signet, however, expects “second quarter revenues to be impacted by a tougher prior year same store sales comparison and calendar shifts.”
“While progress will continue to be gradual and incremental, we are confident Signet is on the right path to achieve long-term sustainable, profitable growth.”
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