Aug 31, 2015

Signet Reports 15.1% Rise in Sales in Q2

Signet Jewelers, the largest distributor of diamond jewellery worldwide, reported a 15.1% rise in sales for the second quarter of Fiscal 2016. Total sales were $1,410.6 million, up $184.7 million compared to $1,225.9 million in the second quarter Fiscal 2015. Same store sales increased 4.2% compared to an increase of 4.8% in the 13 weeks ended August 2, 2014.

The company said in a statement that the rise was a result of positive sales performance across all national store brands.

• Sterling Jewelers reported a 5.9% increase in sales to $ 858.5 mn with broad-based growth across store banners, product brands and non-brands, as well as multi-channels. Bridal and diamond jewelry was particularly strong.

• Zale division sales were up 57.3% to $ 389.3 mn as a result of higher sales among stores and kiosks.

• The UK Jewelry division witnessed a decline of 2.3%, though this was driven entirely by foreign currency exchange rates. The division saw an increase in same store sales and total sales at constant exchange rates primarily on acount of strong results in diamond jewellery and watches.

eCommerce sales in the second quarter were $65.9 million, up $15.4 million or 30.5% compared to $50.5 million in the prior year second quarter.

According to Signet officials, diamond jewellery was a strong driver of growth, and the strategically focused bridal segment grew faster than the company’s overall rate of growth. Bridal growth was in the non-branded as well as branded segments with Neil Lane, Vera Wang Love and Tolkowsky being stand out performers.

Signet CEO Mark Light said that the company continues to “outperform our industry, driven by our competitive strengths”. He added that Signet is now “increasingly confident about our integration synergies”.

Speaking to analysts he said, “Our success in the second quarter of fiscal 2016 was broad-based with sales and profit growth coming from virtually all of our store concepts across various geographies with contributions across our selling channels and from several functional areas.”