Signet has trimmed its full-year outlook by around seven per cent and announced plans to close around 150 of its 2,800 outlets as the “engagement gap” kicks in.
The parent company of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Rocksbox and others has revised down total sales forecasts from $7.67bn-$7.84bn to $7.1bn-$7.3bn.
“We expected the low double-digit decline in engagements that we saw this quarter,” said CEO Virginia Drosos in a call with investors following publication of its Q1 results for 2024 (which ended 29 April).
“Similar to the fourth quarter, we expected to see units decline, but we also expected growth in average transaction value, which did not materialize.”
“Our Signet team delivered our revenue and bottom-line commitments in Q1 despite macroeconomic headwinds that worsened late in the quarter.
“In line with our predictions, there were fewer engagements in the quarter resulting from COVID’s disruption of dating three years ago.”
Around half of Signet’s revenue is from bridal. “People are still getting engaged but buying a ring at a slightly lower price,” said Drosos.
The company also said it would be closing up to 150 underperforming stores in the next year, mostly in traditional mall locations when leases expire.
Sales during Q1 were $1.7bn, down 9.3 per cent on the same period last year. And same store sales were down 13.9 per cent.
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