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Signet Sales and Profit Fall in Challenging US Market

June 13, 2024  |  Joshua Freedman
Kay Jewelers Signet store 1280

Signet Jewelers’ sales declined and earnings slumped in the first fiscal quarter as the difficult US market impacted the retailer.

Revenue dropped 9% year on year to $1.51 billion in the 13 weeks ending May 4, the company reported Thursday. Same-store sales — at branches open for at least a year — also fell 9%. Net profit slid 47% to $52.1 million.

Trading was “sluggish” in February before improving during the quarter, “with an even stronger May,” said Signet CEO Gina Drosos. “We expect continued momentum in the second quarter, leading to a positive same-store sales inflection in the second half” of the current fiscal year, which ends in early 2025.

The sales decrease reflects reductions in the average transaction value and the volume of sales. In North America, revenue fell 9% to $1.4 billion as the average transaction value declined 1.6%. Sales for the rest of the world slipped 17% to $77.2 million, with the average transaction value declining 15%, reflecting the sale of some of the company’s prestige-watch locations.

The performance during the period came amid “macro-pressure” on the consumer as well as the impact of a promotional retail environment, Drosos said in an investor call Thursday. The predicted recovery in engagements is accelerating, she added.

Signet maintained its sales outlook of $6.66 billion to $7.02 billion for the full fiscal year, after first-quarter revenue was within the company’s predicted range.

Shares in the jeweler fell 16% in early trading Thursday.

Image: A Kay Jewelers store. (Signet Jewelers)

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Kay Jewelers Signet store 1280 Signet Sales and Profit Fall in Challenging US Market

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