Signet Jewelers 3Q sales tumbled by 12.1%

Dec 06, 2023

Signet Jewelers Limited, the world’s largest retailer of diamond jewelry, announced its results for the 13 weeks ended October 28, 2023 (3Q Fiscal 2024).

“We delivered earnings on the high end of our expectations driven by continued progress on our strategic goals. We believe our extensive consumer insights provide a competitive advantage that has contributed to continued bridal market share gains and consistency in average transaction value again this quarter,” said Signet Chief Executive Officer Virginia C. Drosos.

“Trends through Black Friday weekend, including sequential improvement in engagement trends, are performing in line with guidance expectations for the fourth quarter. As we enter the holiday season, jewelry remains a top of mind gifting category for consumers in a value conscious shopping environment.”

“We’re reaffirming guidance for FY2024 with the full year outlook updated for the profitable and strategic sale of 15 primarily luxury watch stores in the U.K. We continue to make progress expanding gross margin through merchandise and sourcing strategies and growth in services revenue,” said Joan Hilson, Chief Financial, and Strategy & Services Officer.

“Cost savings initiatives are on track and healthy inventory enables product newness as we enter the holiday season and improved free cash flow, allowing Signet to return nearly $160 million to shareholders already this year.”

Third Quarter Fiscal 2024 takeaways are, 1: Sales of $1.4 billion, down $190.8 million or 12.1% to Q3 of FY23 & 2: Same store sales (SSS) down 11.8% to Q3 of FY23.

Cash and cash equivalents, at quarter end, of $643.8 million, compared to $327.3 million in Q3 of FY23.

Year-to-date cash used in operating activities of $205.3 million, compared to cash used of $155.5 million at this time last year, including approximately $200 million for payment of legal settlements in the current year.

Repurchased $35.1 million, or approximately 0.5 million shares, during the third quarter.

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