For the first quarter of Fiscal 2025, which concluded on May 4, 2024, Signet Jewelers reported sales of $1.51 billion, a 9.4% decrease from $1.67 billion in Q1 Fiscal 2024. Despite a difficult start to the year, Signet‘s performance dramatically improved by the end of the quarter, helped by new product offers and more customer involvement.
When compared to the same time last year, the same store sales (SSS) similarly witnessed a decline of 8.9%. From $101.7 million to $49.8 million in the prior year, operating income decreased. Additionally, adjusted operating income decreased from $106.5 million to $57.8 million.
Sales of engagement units in North America for Signet increased by 400 basis points, excluding digital banners. Comparable sales of fashion jewelry have increased since February, according to the business, which also observed a positive reaction to new product offerings and reward programs.
“Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May,” stated Virginia Drosos, CEO of Signet. Our new product offers and reward program are still receiving positive feedback from customers, as evidenced by the notable increase in comparative sales for fashion since February. We anticipate that the second quarter will see sustained momentum, which will result in a favorable same-store sales inflection in the second half of Fiscal 25.
With a 9.2% drop in same store sales, North America’s overall sales of $1.4 billion represented a 9.0% fall from the prior year. A smaller number of transactions and a little decline in the average transaction value were the reasons for the decline.
The impact of selling premium watch sites and a 3.2% drop in same-store sales caused the foreign segment’s sales to drop by 17% to $77.2 million.
Signet maintained its improved full-year projection, which was issued in April, notwithstanding the initial decline. The company predicts that the second quarter will see ongoing momentum, with same store sales projected to range from -6% to -2% and total sales between $1.46 billion and $1.52 billion.
Signet predicts $6.66 billion to $7.02 billion in overall sales for the entire fiscal year 2025, with same-store sales predicted to fluctuate between a 4.5% decrease and a 0.5% rise. Additionally, the business projects adjusted EBITDA of $780 million to $865 million and operating income of $590 million to $675 million.