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E-Commerce Drives Signet Sales Jump

Jun 6, 2018 10:36 AM   By Rapaport News
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RAPAPORT... Signet Jewelers’ sales jumped in the first fiscal quarter, boosted by income from recent acquisition James Allen.

Group sales grew 5.5% year on year to $1.48 billion in the three months ending May 5, the retailer said Wednesday. Revenue from e-commerce was up 81% at $146.5 million for the quarter, accounting for 10% of total sales.

Of the divisions, James Allen — which Signet bought last year — saw the largest increase, with sales climbing 29% to $53.3 million.

Revenue from Zales rose 9% versus the same period last year, coming to $298.1 million, while Piercing Pagoda increased 7% to $74.4 million. The growth outweighed a 1.9% decrease in sales to $583.2 million at its Kay stores, and a slide of 8% to $267.5 million at its Jared outlets.

“In the first quarter, we saw signs of stabilization in our overall sales and once again achieved double-digit growth in e-commerce,” said CEO Virginia Drosos.

However, Signet recorded a net loss of $496.6 million for the quarter, due to a number of factors, including problems related to the credit-outsourcing transition and restructuring charges.

The company’s same-store sales — for branches open at least a year — were flat.

The retail group predicts its second-quarter sales will drop by a mid-single-digit percentage to between $1.3 billion and $1.35 billion, but it still expects to meet full-year goals.

“Looking ahead, we expect second-quarter revenues to be impacted by a tougher prior-year same-store-sales comparison and calendar shifts,” Drosos added. “We are maintaining our full-year 2019 guidance and are intensely focused on laying the foundation to support improved performance in the holiday season.”

Additionally, Signet has appointed former Nielsen head of human resources Mary Elizabeth Finn as chief people officer, and Stephen Lovejoy as chief supply-chain officer. Both will report directly to Drosos.

After Signet reported its first-quarter results, its stock rose 2.6% in premarket trading.
Tags: James Allen, Jared, kay, Mary Elizabeth Finn, Nielsen, Piercing Pagoda, Rapaport News, Signet, Stephen Lovejoy, Virginia Drosos, zales
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