Worldwide, Signet owns more than 2,800 stores including Kay Jewelers, Zales, Jared, Diamonds Direct, JamesAllen.com, Rocksbox, Peoples Jewellers, H.Samuel, Ernest Jones, and Sterling Jewelers. Photo: Zales Interior | Signet Jewelers
Sales decreased by 5 per cent year-on-year to $US2.67 billion ($AU3.97 billion) in the three months ending 28 January.
Additionally, same-store sales at branches open for at least one year declined by 9 per cent, while profit decreased 12 per cent.
Signet CEO Virginia C. Drosos said that despite the results there was still cause for optimism.
“We delivered on our three key priorities of increasing market share, achieving an annual double-digit non-GAAP operating margin, and leveraging capital allocation to drive shareholder returns despite headwinds and volatility throughout the year,” she said.
“As we turn to FY24, we are confident in the sustainable competitive advantages we’ve built and our ability to leverage our enhanced infrastructure and scale to grow ahead of the jewellery industry.”
The discouraging sales performance was attributed to a variety of causes including extreme weather conditions, labour strikes, and weakened currency in the UK.
“While timing and magnitude are difficult to predict, Signet also anticipates a continued shift of consumer discretionary spending away from the jewellery category, reflecting decelerating levels of consumer confidence and pent-up demand for experience-oriented categories, as well as expects further impacts of inflation and other macroeconomic factors on consumer spending.” a statement from Signet reads.
Worldwide, Signet owns more than 2,800 stores including Kay Jewelers, Zales, Jared, Diamonds Direct, JamesAllen.com, Rocksbox, Peoples Jewellers, H.Samuel, Ernest Jones, and Sterling Jewelers.
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