Signet focuses on gaining market share
Bermudian-based Signet Jewelers Limited, the world's largest retailer of diamond jewellery, has reported GAAP operating income of $186.8 million for the second quarter of the year.
That is down from $225.4 million in the second quarter a year ago, and includes $6.4 million related to the fair value adjustment of acquired inventory as well as acquisition-related charges.
Total sales in the quarter were $1.8 billion, down $33.2 million year-on-year to a record second quarter a year ago, but up 29 per cent on the second quarter of fiscal year 2020.
"Signet's focus on gaining market share, driving further operating efficiencies, and building capabilities that are true competitive advantages, is putting us in a position to deliver long-term growth and increase shareholder value," said Virginia C. Drosos, chief executive officer.
"Our results demonstrate the continued agility of our Signet team, the strength of our differentiated banner portfolio, and the flexibility of our operating model. This is all underpinned by a balance sheet that enables us to continue to make strategic investments such as our recent acquisition of Blue Nile."
Joan Hilson, chief financial and strategy officer, said: "The discipline of our Signet team delivered $1.8 billion in revenue and a 10.6 per cent operating margin, despite a softer top line environment.
"Our working capital efficiency reflects inventory levels down year over year, excluding acquisitions. This gives us the confidence that we are well positioned to deliver newness with minimal levels of clearance for the holidays."