Signet Jewelers is shining shiny.
The specialty jewellery retailer — guardian to the Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples Jewellers, Piercing Pagoda and jamesallen.com manufacturers — revealed quarterly earnings Thursday morning earlier than the market opened, bettering on high and backside traces and exhibiting power throughout almost all classes. Company shares shot up greater than 8 p.c in pre-market hours in consequence.
“Our strong first quarter results demonstrate the momentum we are building as we continue Signet’s transformation,” Virginia C. Drosos, chief government officer, stated in an announcement. “Thank you to all our workforce members for his or her relentless dedication to our prospects and one another and for embracing new capabilities with excellence as we drive innovation and sustainable long-term progress.
“While the jewelry category is experiencing meaningful growth, we are outpacing market growth and gaining share consistent with our Inspiring Brilliance strategy,” Drosos continued. “Specifically, we are winning in our biggest banners through consumer-inspired differentiation, as evidenced by double-digit revenue growth in both Kay and Zales, versus this time two years ago. We are successfully beginning to stretch the top and bottom boundaries of the mid-market as Jared continues to grow at higher price points and in custom design and Piercing Pagoda delivered its best quarter ever accessing more value inspired self-purchasing shoppers. Further, our Connected Commerce strategy is resonating, delivering higher conversion rates and growth both online and in-stores. And finally, we are building a more innovative and agile culture with investments in talent, digital capabilities, newness in product assortment and modern content and marketing channels that give us distinct competitive advantages. As I look ahead, I’m confident in our people and our strategy and believe 2021 will be another transformative year for Signet.”
Total revenues for the three-month interval ending May 1 have been $1.68 billion, up from $852 million the identical time final 12 months. But the positive factors have been even up from pre-pandemic ranges of $1.4 billion. The retailer made greater than $138 million in earnings through the quarter in consequence, in contrast with losses of $197 million the identical time final 12 months.
Strength was throughout almost all classes. Total same-store gross sales elevated greater than 106 p.c, whereas e-commerce gross sales rose roughly 110 p.c to $346 million. Brick-and-mortar same-store gross sales elevated almost 106 p.c, year-over-year. In North America, same-store gross sales shot up greater than 117 p.c through the quarter. Same-store gross sales fell about 12 p.c internationally.
During WWD’s digital summit in October, Jamie Singleton, president of the Kay Jewelers, Zales and Peoples divisions of Signet Jewelers Ltd., stated jewellery purchasing hasn’t slowed amid quarantine. In reality, customers continued to buy commemorative items for main life occasions, like birthdays, graduations and engagements — even when they needed to have a good time on-line.
Signet was fast to capitalize on the digital alternatives, providing digital consultations and marriage ceremony ceremonies; clienteling companies, comparable to telephone calls from gross sales associates, on-line piercing follow-ups and digital styling and purchasing appointments, and elevated curbside pick-ups.
“Virtual selling at scale has propelled us forward digitally; it’s giving us a tremendous competitive advantage,” Singleton stated on the time. “This aggressive and fast-paced digital transformation led us to some seriously exciting results.”
The specialty jewellery retailer has about 2,800 shops within the U.S., U.Ok. and Canada. The firm closed about 400 shops in calendar 12 months 2020 and stated Thursday it plans to shut greater than 100 others within the present fiscal 12 months, whereas opening up 100 new places.
Company headwinds embrace potential resurgence of COVID-19 in key buying and selling areas, provide chain disruptions and unemployment, which might impression shopper spending habits.
Still, Signet expects revenues within the second quarter to be between $1.6 billion and $1.65 billion. For the total fiscal 12 months 2022, Signet is anticipating complete gross sales between $6.5 billion and $6.65 billion, up from its earlier estimates of $6 billion to $6.14 billion.
“We are entering this next phase of Signet’s transformation from a position of financial strength,” stated Joan Hilson, chief monetary and technique officer. “We are continuing to increase liquidity with ongoing cash, cost and inventory discipline, enabling accelerated investment in innovation and growth. Even as we expect some current tailwinds from stimulus and slower than anticipated return to travel and experience spending to subside in the back-half of 2021, we are confident in our ability to deliver strong shareholder return and generate cash. As such, our board has approved reinstatement of a common dividend in the second quarter.”
The firm ended the quarter with about $1.3 billion in money and money equivalents and almost $147 million in long-term debt.
Shares of Signet are up about 397 p.c, year-over-year.