Signet raises revenue forecast to £5.77bn

Same store sales grew by 25.2% year-on-year in Q4 and by 35.1% on a two-year basis.

Signet Jewelers Limited has announced its total sales rose year-on-year by 30.4% to $2.4bn (£1.78bn) for the nine weeks ending January 1 2022 (Q4), with its full year total revenue guidance increasing to $7.78bn (£5.77bn).

Preliminary same store sales grew by 25.2% year-on-year for the period, and by 35.1% on a two-year basis. Additionally, Q4 e-commerce sales were up by $52.1m (£38.7m) from last year, and brick and mortar sales were also up $499.9m (£371.33m).

Meanwhile, total revenues on an international basis were $144m (£106.96m) in Q4, up 30.5% from last year and down 3.6% from pre-Covid levels.

Overall, international e-commerce sales decreased 25.8% year-on-year and increased 43.0% on a two-year basis. Meanwhile, brick and mortar sales increased by 69.7% year-on-year but decreased by 12.4% compared to two years ago.

Signet’s international transactions also rose by 27.2% in Q4 compared to the previous year, with the average transaction value increasing by 2.2%. Same store sales also increased year-on-year by 31.3% and by 6.2% from pre-Covid levels.

Virginia C. Drosos, CEO, said: “We’re driving strong traction on our key initiatives, including our differentiated banner value propositions and a step change in Connected Commerce capabilities, allowing us to serve customers whenever and wherever they choose to shop with us.

“We are confident in our strategy and believe we are building sustainable advantages to continue to outpace growth in the jewellery category, gain share and expand operating margin over time. Our Signet team is highly engaged, and I’m very proud of their agility, innovation and focus on accelerating our strategic initiatives and purpose.”

Joan Hilson, chief financial and strategy officer, added: “We are raising guidance to reflect our strong holiday performance.

“We’re announcing a $500m (£371.4m) expansion to the remaining $184m (£136.67) available under the existing share repurchase program. Within this, we intend to enter into a $250m (£185.7m) accelerated share repurchase agreement after which $434m (£322.38m) would remain under our multi-year programme.”

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