Sales at Signet Jewelers increased during the holiday season, prompting the retailer to raise its full-year outlook.
Same-store sales — at branches open for at least a year — increased 1.6% for the nine weeks ending January 4, while total revenue slipped 1% to $1.82 billion. E-commerce revenue grew 14% to $252.3 million, the company said Thursday.
“We delivered holiday same-store sales growth ahead of our guidance as we continued to implement year two of our Path to Brilliance transformation,” said Signet CEO Virginia Drosos. “Product newness, investments in our digital capabilities, and more targeted marketing campaigns drove both e-commerce and brick-and-mortar growth in North America.”
Based on the strength of its holiday sales, Signet expects same-store sales to increase 1.1% in the fourth fiscal quarter ending February 1, compared with its earlier forecast of a 2% to 4% decrease. The company also expects total revenue for the period to reach $2.12 billion, versus the $2.03 billion to $2.07 billion it initially reported.
Additionally, Signet raised its outlook for the full year ending February 1, expecting same-store sales to rise by up to 0.1%, higher than the 1% to 1.7% drop it had previously forecast. It anticipates total revenue of $6.1 billion, above its earlier prediction of $6.01 billion to $6.05 billion.
Nearly all of Signet’s major US brands experienced growth during the nine-week holiday season ending January 4, with same-store sales at Zales increasing 5%, while James Allen climbed 27%, Piercing Pagoda grew 7%, and Kay saw a rise of 0.2%. Those results outweighed a 3.5% drop in same-store sales at Jared. Same-store sales outside the US fell 3.1%.
The company now expects its Path to Brilliance transformation plan to cut costs by $80 million to $90 million for the current fiscal year, compared with its previous guidance of $70 million to $80 million, it said.
Signet will have closed 127 stores during the fiscal year, slightly higher than its original forecast of 115 locations.
The jeweler’s stock rose 33% in early trading Thursday following the announcement.
Image: A Zales store in San Clemente, California. Source: Rapaport
Zales, Signet, Piercing Pagoda, James Allen, Retail Sales, US Brands, US Market, Kay Jewellers, Jewellery News