Signet Jewellers sees sales slip to $1.7bn
Looking ahead, Signet said it is anticipating fiscal 2024 sales of $1.53bn to $1.58bn (£1.21bn to £1.25bn)
Signet Jewellers has reported revenues of $1.7bn (£1.36bn) down 9.3% from Q1 FY23, according to its results for the 13 weeks ended April 29, 2023.
Virginia C. Drosos, CEO of Signet Jewellers claimed that macroeconomic headwinds had worsened late in the quarter, while there were fewer engagements resulting from Covid’s disruption of dating three years ago.
Same store sales which include physical stores and e-commerce sales were also down 13.9% to Q1 of FY23
GAAP operating income rose from $200,000 (£159,000) to $101.7m (£81m) during the same period, although last year’s results included $190m for settlement of a litigation matter.
Non-GAAP operating income decreased to $106.5m (£84.6m), compared with $194.6m (£155m) in Q1 of FY23.
North America reported total sales of $1.6bn (£1.28bn), down 8.4% to Q1 of FY23, while International sales also decreased by 15.5% to $93.0m (£74.31m).
Looking ahead, Signet said it is anticipating fiscal 2024 sales of $1.53bn to $1.58bn (£1.21bn to £1.25bn).
The company said it plans to make capital investments up to $200m (£159m), including in stores, connected commerce capabilities and digital and technology advancement.
Signet expects headwinds to continue in engagements with recovery later in fiscal 2024, and continue to rebound in fiscal 2025.
C. Drosos, CEO of Signet Jewellers, said: “In line with our predictions, there were fewer engagements in the quarter resulting from COVID’s disruption of dating three years ago.
“As we look to the balance of the year, we’re leaning in to leverage our differentiated capabilities, widen our competitive advantages, and drive market share gains. We are proactively addressing the dynamic retail climate, leveraging our team’s agility and flexible operating model to raise our cost savings target by up to $150 million while maintaining strategic investments.”
Joan Hilson, chief financial, strategy and services officer, added: “Our updated Fiscal 2024 guidance reflects a recent deceleration of trends that have persisted into the second quarter, including a softer than expected Mother’s Day, increasing macro-economic pressures on consumers at more price points, and deeper competitive discounting.
