Signet Jewelers announces Q1 sales dip, eyes recovery

Signet Jewelers Limited announced on Thursday total sales for the first quarter dropped 9.4% to $1.5 billion, weighed down by both North America and international sales. 

The Hamilton, Bermuda-based company said North America sales for the quarter ended May 4, dropped 9% to $1.4 billion, reflecting a decrease of 1.6% in total average transaction value, on a lower number of transactions.

International sales were equally down 17% to $77.2 million, also due to a decrease of 15.3% in total ATV driven by the previously announced sale of prestige watch locations, as well as a lower number of transactions.

Meanwhile, operating income was $49.8 million or 3.3% of sales, compared to $101.7 million, or 6.1% of sales in the prior year first quarter.

“Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May,” said Signet chief executive officer Virginia C. Drosos. 

“Compared to the previous quarter, we increased North America engagement unit sales by 400 basis points excluding Digital banners. Further, customers continue to respond well to our new product offerings and loyalty program, reflected in a meaningful improvement in comparable sales for Fashion since February. We expect continued momentum in the second quarter, leading to a positive same store sales inflection in the second half of Fiscal 25.”

Looking ahead, Signet said its sale guidance for the second quarter sits between $1.46 billion to $1.52 billion, while full year Fiscal 2025 sales are expected to be between $6.66 billion to $7.02 billion.