Signet Jewelers, the US-based jewellery retail giant, reported a decline in sales and earnings for the third quarter of fiscal 2024, but reaffirmed its guidance for the full year excluding the sale of 15 U.K. stores.
The company, which owns brands such as Kay, Zales, Jared and Blue Nile, said its sales fell 12.1% to $1.4 billion in the 13 weeks ended 28th October, 2023, compared to the same period last year. Same store sales, a key metric for retailers, dropped 11.8%.
Signet attributed the lower sales to a challenging retail environment, lower mall traffic, and reduced consumer spending on discretionary items. The company also faced tough comparisons to the previous year, when it benefited from a surge in bridal demand and stimulus checks.
Signet CEO Virginia C. Drosos said, “We delivered earnings on the high end of our expectations driven by continued progress on our strategic goals. We believe our extensive consumer insights provide a competitive advantage that has contributed to continued bridal market share gains and consistency in average transaction value again this quarter. As we enter the holiday season, jewellery remains a top of mind gifting category for consumers in a value conscious shopping environment.”
Reaffirming guidance for FY2024, Joan Hilson, Chief Financial, Strategy & Services Officer, highlighted progress in expanding gross margin and cost-saving initiatives. The company reported a total inventory decrease of 14% year-over-year.