Signet earnings sink despite sales recovery internationally, U.S. sales strong
Signet Jewelers announced on Thursday revenues for the first quarter lifted close to 9%, on the back of a recovery in the firm's international sales and continued gains domestically.
The Hamilton, Bermuda-based company said total sales for the quarter ending April 30 were $1.8 billion, up $149.5 million or 8.9% compared to the same quarter last year. Same-store sales were up 2.5%.
By region, Signet's international sales increased 92% to $110 million for the three months, while the U.S. jeweler's domestic sales recorded steady growth of 5.4% to $1.76 billion.
The company, however, did swing to a loss for the quarter, reporting a loss of $92.1 million of diluted loss per share of $1.89, down from net earnings of $129.8 million, or a diluted earnings per share of $2.23 last year.
The loss included $2.92 in charges "related to the resolution of previously disclosed litigation, $2.19 in non-cash charges related to the buy-out of substantially all of the UK pension plan obligations and $0.07 in charges relating to the fair value adjustment of acquired inventory," the company said in a press release.
The company's CEO, Virginia Drosos, was upbeat about her company's "strong" quarterly performance, saying it reflected her "team's successful execution and agility amidst retail headwinds."
"We generated nearly 9% topline growth, including 2.6% organic sales growth, enabled by our healthy inventory position, connected commerce capabilities and data-driven marketing," said Drosos.
"Customers responded to the breadth and newness within our assortment, particularly higher price point offerings, diamonds and precious metals. Our scale, strong balance sheet, and diversified banner portfolio provide flexibility to navigate macro level uncertainties, deliver consistent annual double-digit operating margin, and continue investing in differentiated capabilities to widen our competitive advantages."
Looking ahead, Signet, which operates brands Signet, Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples, Banter by Piercing Pagoda, JamesAllen.com and Diamonds Direct, reaffirmed its fil 2023 earnings guidance, predicting revenues of $8.03 billion to $8.25 billion.
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