Signet Jewelers reported sales of $1.51 billion for the first quarter of Fiscal 2025, that ended 4th May 2024, marking a 9.4% decline from $1.67 billion in Q1 Fiscal 2024. Despite a challenging start to the year, Signet’s performance improved significantly towards the end of the quarter, bolstered by customer engagement and new product offerings.
The same store sales (SSS) also saw a decrease of 8.9% compared to the same period last year. Operating income dropped to $49.8 million, down from $101.7 million in the previous year. Adjusted operating income also fell to $57.8 million from $106.5 million.
Signet experienced a 400 basis points increase in North America engagement unit sales, excluding digital banners. The company noted a strong response to new product offerings and loyalty programmes, which improved comparable sales for fashion jewellery since February.
Virginia Drosos, Signet’s Chief Executive Officer, said, “Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May. Customers continue to respond well to our new product offerings and loyalty program, reflected in a meaningful improvement in comparable sales for fashion since February. We expect continued momentum in the second quarter, leading to a positive same store sales inflection in the second half of Fiscal 25.”
In North America, total sales were $1.4 billion, a 9.0% decline from the previous year, with a 9.2% decrease in same store sales. The decrease was attributed to a lower number of transactions and a slight drop in average transaction value.
Sales in the international segment fell by 17% to $77.2 million, reflecting a 3.2% decline in same store sales and the impact of selling prestige watch locations.
Despite the initial downturn, Signet reaffirmed its increased full-year outlook announced in April. The company anticipates continued momentum in the second quarter, projecting total sales between $1.46 billion and $1.52 billion, with same store sales expected to range from -6% to -2%.
For the full fiscal year 2025, Signet forecasts total sales of $6.66 billion to $7.02 billion, with same store sales expected to vary from a decline of 4.5% to an increase of 0.5%. The company also expects operating income between $590 million and $675 million and adjusted EBITDA from $780 million to $865 million.