Signet Jewelers, recognized as the leading global retailer of diamond jewelry, pleasantly surprised investors with its exceptional performance during the holiday season. With holiday sales results exceeding expectations, the company has boosted its outlook for both the fourth quarter and full fiscal year of 2020.
During the nine-week period ending on January 4, 2020, Signet reported a 1.6% increase in same-store sales, particularly notable was the 2.0% rise in North America. Of significance, the company experienced a substantial growth in its e-commerce channel, with a remarkable 13.5% increase in sales, compensating for a 2.0% decline in brick-and-mortar same-store sales.
Within its portfolio of banners, James Allen witnessed a significant surge in same-store sales of 26.9%, followed by Piercing Pagoda with 6.9% and Zales with 5.4%. Conversely, both Jared and regional banners witnessed a drop in same-store sales during the holiday period.
CEO Virginia C. Drosos credited the company’s positive holiday sales performance to the successful implementation of the second year of Signet’s Path to Brilliance transformation. Key drivers of growth included product innovation, digital investments, and targeted marketing campaigns leading to an uptick in both e-commerce and brick-and-mortar sales.
With the robust performance, Signet has revised its guidance for the fiscal year, now projecting a potential up to a 0.1% increase in same-store sales, with total annual sales forecasted to reach around $6.1 billion. This marks a significant shift from the previous guidance, which anticipated a decrease in same-store sales.
For the fourth quarter, Signet now projects a 1.1% increase in same-store sales, with net sales estimated to hit $2.12 billion. Additionally, quarterly diluted earnings per share are expected to improve, falling in the range of $3.42 to $3.56.
In response to the positive news, shares in Signet surged by 13.4% in premarket trade, underscoring investor confidence in the company’s trajectory of growth and effective strategic initiatives.
For further information on Signet Jewelers and its performance, you can visit their official website here. To explore their range of diamond jewelry and offerings, click here.
