Robin Driver
Apr 13, 2021
International jewelry retailer Signet Jewelers Limited announced on Monday that it has raised its financial
guidance for the current first quarter and full fiscal year, citing stronger than expected conversion and average ticket values.
Signet now expects its revenues to total between $1.57 billion and $1.60 billion in the first quarter, reflecting a year-over-year increase in same-store sales of between 97% and 99%. Previously, the company said that it predicted Q1 revenues of between $1.42 billion and $1.46 billion, on a same-store sales increase in the range of 80% to 84%.
The retailer, whose brand portfolio includes Kay, Zales and Jared in the U.S., and H. Samuel and Ernest Jones in the UK, as well as digital-first jeweler James Allen, also said that it now expects its adjusted quarterly operating income to total between $85 million and $100 million, compared to a previous guidance of between $335 million and $365 million.
As for full-year guidance, Signet now expects its annual revenues to be in the range of $6.00 billion to $6.14 billion, compared to its previously reported prediction of between $5.85 billion and $6.00 billion. Same-store sales are expected to rise in the range of 17% to 20%, up from a prior outlook of between 14% and 17%.
Adjusted full-year operating income is predicted to be between $335 million and $364 million, compared to the company’s previous guidance of between $290 million and $324 million.
According to Signet, it believes that its solid top-line growth in the first quarter has been “due to a combination of traction from strategic initiatives as well as tailwinds from stimulus, tax refunds and consumer enthusiasm on the heels of vaccine rollouts – particularly during the company's guest appreciation events in late March.”
The retailer also said that, having evaluated the impact of recent Covid-19-related inventory delays in countries such as India, it believes that it has mitigated the short-term impacts of these slow-downs. The company did, however, highlight that if the delays continue or intensify, they could negatively affect its full-year guidance.
Signet recently acquired online jewelry rental service Rocksbox as part of a new phase of its Inspiring Brilliance growth strategy, which focuses on boosting the company’s digital presence and expanding its services offering.
In the fiscal year ended January 30, 2021, Signet’s annual net sales totaled $5.2 billion, down 14.8% from $6.1 billion in the previous year due to the impact of the Covid-19 pandemic. Net loss for the year was $48.7 million, or $0.94 per diluted share, compared to income of $72.6 million, or $1.40 per diluted share, in the previous year.
Signet currently operates approximately 2,800 stores in the U.S., Canada and the UK.