Signet Jewelers’ momentum continued in the first quarter with results that topped analysts’ expectations and growth across nearly all its categories.
The parent company of Zales, Kay Jewelers, Jared, Piercing Pagoda, and other brands has focused on the acceleration of its online and services business as part of its new growth strategy. Earlier this year, it acquired Rocksbox, a jewelry rental subscription platform that allows its monthly members to rent exclusive and designer jewelry styles via its online platform.
“Our strong first-quarter results demonstrate the momentum we are building as we continue Signet’s transformation,” stated Virginia C. Drosos, CEO, Signet Jewelers.
Signet reported earnings of $138.4 million, or $2.23 a share, for the quarter ended May 1, compared with a per-share loss of $3.96 in the year-ago period. Analysts were looking for earnings per share of $1.27.
Total revenues rose 98.2% year-over-year to $1.68 billion (and also up from $1.4 billion for the same period in 2019. Total same-store sales rose 106.5%. Online sales totaled $346.3 million, up 110.3% from the prior year. Brick and mortar same-store sales increased 105.7% year over year.
"We delivered strong performance across our portfolio,” said Drosos. “While the jewelry category is experiencing meaningful growth, we are outpacing market growth and gaining share consistent with our Inspiring Brilliance strategy. Specifically, we are winning in our biggest banners through consumer-inspired differentiation, as evidenced by double-digit revenue growth in both Kay and Zales versus this time two years ago. We are successfully beginning to stretch the top and bottom boundaries of the mid-market as Jared continues to grow at higher price points and in custom design, and Piercing Pagoda delivered its best quarter ever accessing more value inspired self-purchasing shoppers. “
Signet operates approximately 2,800 stores primarily under the name brands of Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and JamesAllen.com.