Signet CEO sees more strength in online jewelry sales, which doubled in the last quarter

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Signet Jewelers CEO Gina Drosos on Thursday expressed optimism about the company’s investments in e-commerce, telling TBEN that she expects them to be profitable even after the pandemic of Covid.

“I think the pandemic has changed the buying behavior of customers forever. We are seeing a lot more customers coming to us online, even if not to buy, to review selection, to educate themselves,” Drosos said on “Closing Bell”.

This translates into digital sales, of course. Earlier Thursday, the owner of Zales and Kay Jewelers reported e-commerce revenue of $ 346.3 million in the quarter ending May 1, an increase of 110% from the same period ago a year. It is also up around 125% compared to the same quarter two years ago, before the Covid crisis.

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Overall Signet sales for the first fiscal quarter of 2022 were $ 1.69 billion, beating Wall Street expectations of $ 1.62 billion. Earnings per share of $ 2.23 beat analysts’ forecast by $ 1.27.

“Our transformation plan is working,” said Drosos, who has been CEO of Signet since 2017. The former Procter & Gamble executive has been a member of the Signet board since 2012.

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Drosos said Signet has taken a series of steps to gain share in the online jewelry market.

“We added over 700 virtual jewelry consultants during the pandemic,” said Drosos, and the company also recently added capabilities through Apple’s Business Chat and Google’s Business Messages.

“We are rapidly improving our websites – over 100 new features added in Q1,” Drosos said. “We believe we have a unique opportunity and competitive advantage in creating a superior online experience linked to our large-scale store footprint. “

Signet, which also operates the Jared and Piercing Pagoda brands, has approximately 2,800 stores, according to its earnings release. In March, Drosos told TBEN the company was looking to “optimize” its locations, in part by reducing exposure to lower-quality malls.

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Signet shares rose 14% on Thursday, hitting a new 52-week high of $ 74.80 in one day, as investors reacted to the company’s pre-bell earnings and its rise in its forecast for the whole year.

Signet’s share has risen 467% in the past 12 months, based on its Thursday close of $ 69.58 per share.

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