Signet Jewelers Limited announced its second quarter results for fiscal 2019, reporting revenue of $1.4 billion for the period. Same store sales rose 1.7 percent compared to the second quarter of the previous year.
Same-store sales were bolstered by strong performance at Zales and Piercing Pagoda. They increased 2.1 percent in North America, bolstered by the impact of initiatives across banners to increase newness and refocus the company’s product assortment.
Bridal and fashion sales increased in the quarter, benefiting from a greater percentage of newness in the core product assortment and higher clearance sales.
The company has raised its same store sales guidance for the year from a 1.5-percent drop to flat parity with the previous year.
Chief Executive Virginia C. Drosos commented, “While it is still early in our journey, we are encouraged by our improving year-to-date performance as we execute against our Path to Brilliance transformation plan. During the second quarter, we continued to see stabilisation in same store sales, and we remain confident that we have the right strategies in place to continue to drive operational improvement over the long-term.”
She added, “To reflect our improved second quarter performance, we are modestly raising our revenue and earnings guidance for the year. For the fourth quarter, however, where a vast majority of our annual operating profit is generated, we are remaining appropriately cautious in our outlook as many of our Path to Brilliance initiatives are being launched later in the year.”
Drosos continued, “Another highlight of the second quarter was the completion of our transition to a fully outsourced credit structure. Our teams are now able to fully focus on optimising performance within the new credit structure, which will be critical to driving a successful holiday season. As a reminder, transaction proceeds from the full outsourcing of credit over the past year were $1.4 billion, which enabled the company to repurchase 25 percent of its outstanding shares.”