Signet swings back to profit in fiscal 2022 as annual sales surge 50%
Signet Jewelers announced on Thursday sales for the fiscal 2022 year surged almost 50%, on the back of a stellar fourth quarter that saw North America sales lift 26% and international revenues gain 40% on the year prior.
The Hamilton, Bermuda-based company said total sales in the fourth quarter reached $2.8 billion, up 28.6% on last year, and up 30.6% to fiscal 2020, driven by a 27% increase in North America sales to $2.6 billion. International quarterly sales surged to $183.4 million, up 49% on the year prior.
The largest jeweler in the U.S. said net income totalled $305.7 million, or $4.91 a share, for the fourth quarter ended January 29, up from $245.7 million, or $4.12, earned in the year-ago quarter.
"Thank you to our team for their dedication, agility and excellent execution again this quarter and throughout the past year. The investments we have made in our 'Connected Commerce' capabilities and differentiated banner assortment and marketing have driven meaningful share gains, with all categories and all banners outpacing jewelry industry growth," said Signet chief executive officer, Virginia Drosos.
"Despite a challenging macro environment ahead, we believe that we are well-positioned in partnership with our strategic suppliers. We're confident in the sustainable competitive advantages we've built and our ability to leverage our enhanced infrastructure and scale to continue growing ahead of the jewelry industry."
The owner of Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples, Banter by Piercing Pagoda, JamesAllen.com and Diamonds Direct said fiscal 2022 sales hit $7.8 billion, up 49.7% on the year prior, or 27.5% on fiscal 2020.
Brick-and-mortar sales totalled $6.3 billion, up 56.2%, while e-commerce sales reached $1.5 billion, up 27.6% to last year.
Net income for all of last year came to $735.4 million, a return to profit for the jeweler, which reported a net loss of $48.7 million in the year prior.
Looking ahead, Signet said it expects fiscal 2023 revenues to sit between $8.03 billion to $8.25 billion.
"Our fiscal 2023 guidance reflects topline performance that we believe will outpace the market while also delivering a double-digit operating margin by leveraging sustainable advantages, notably fleet optimization, inventory efficiency and an enhanced labor model," said Joan Hilson, chief financial and strategy officer.
"With a strengthened balance sheet and confidence in our team's execution, we will continue prioritizing investments that build sustainable competitive advantages and drive shareholder value. To that end, we've increased our capital spend for fiscal 2023 as well as our quarterly common dividend and will remain focused on share repurchases."
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