Signet Q2 sales drop to $1.75bn

Signet Jewellers has revealed that its sales dropped 1.9% to $1.75bn (£1.52bn) for the 13 weeks ended 30 July 2022 (Q2 FY23), marking a drop of $33.2m (£28.9m) year-on-year, although this is up 29% compared to pre-Covid levels.

Operating income also decreased year-on-year from $225.4m (£196.2m) to $186.8m (£162.65m), and same store sales (SSS) are down 8.2% compared to Q2 FY22.

In North America, total sales declined by 1.8% year-on-year to $1.6bn (£1.39bn), and SSS declined 8.7%, reflecting higher average transaction value (ATV) but a lower number of transactions.

Additionally, International sales dropped 14.6% to $111.6m (£97.17m) compared to Q2 FY22, with SSS declining 1.5%.

Looking ahead, Signet is reaffirming its full year fiscal 2023 revenue and operating income guidance, with revenues expected to be between $1.46bn (£1.27bn) and $1.49bn (£1.29bn) for Q3, and $7.60bn (£6.6bn) to $7.7bn (£6.7bn) for FY23.

The company said its outlook includes a level of consumer pressure, including inflation and the impact of stimulus, similar to what is currently being experienced.

Signet added that it continues to anticipate some shift of consumer discretionary spending away from the jewellery category, reflecting pent-up demand for experience-oriented categories during the year.

Virginia C. Drosos, Signet CEO, said: “Signet’s focus on gaining market share, driving further operating efficiencies, and building capabilities that are true competitive advantages, is putting us in a position to deliver long-term growth and increase shareholder value.”

Joan Hilson, chief financial and strategy officer, added: “Our working capital efficiency reflects inventory levels down year over year, excluding acquisitions. This gives us the confidence that we are well positioned to deliver newness with minimal levels of clearance for the holidays.”