Signet Gaining Market Share as Sales Soar

RAPAPORT... Sales at Signet Jewelers stormed past the company's expectations in the first fiscal quarter as the retailer's new strategy helped it capitalize on resurgent consumer demand.Revenue jumped 98% year on year to $1.68 billion in the 13 weeks that ended May 1 amid buoyant in-store and e-commerce sales, Signet reported Thursday. Same-store sales rose 107%, while group net profit stood at $138.4 million compared with a loss of $197.1 million a year earlier.The improvements partly reflected a comparison with the peak of the 2020 Covid-19 crisis, when stores shut across the company's network. But sales also gained versus two years ago.CEO Virginia Drosos said the company was "winning in our biggest banners," with both Kay and Zales seeing revenue increases in the double-digit percentages compared with the same period of 2019. The Jared brand is continuing to expand its reach at higher price points, while Piercing Pagoda "delivered its best quarter ever" thanks to success among "value-inspired" self-purchasers, the executive added. Omni-channel efforts have also paid off, she noted.Drosos attributed the progress to its Inspiring Brilliance program, which focuses on innovation and sustainable growth. The company introduce the new strategy earlier this year after completing its three-year turnaround plan, Path to Brilliance."Our strong first-quarter results demonstrate the momentum we are building as we continue Signet's transformation," she commented. "While the jewelry category is experiencing meaningful growth, we are outpacing market growth and gaining share consistent with our Inspiring Brilliance strategy."Sales in North America rose 107% year on year to $1.62 billion. Revenue from other markets dropped 19% because of store closures in the UK during the country's latest coronavirus wave. Management had predicted group sales of between $1.57 billion and $1.6 billion for the quarter - already a higher estimate than the company had made earlier in the year.In light of the strong sales, the company raised its guidance again, forecasting full-year sales of $6.5 billion to $6.65 billion - translating to annual growth of up to 20%. The company also declared a quarterly cash dividend of $0.18 per share, setting its stock price on an upward trend. Shares rose 15% in early trading Thursday.Image: Counter cleaning at a store. (Signet Jewelers)