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Signet Q1 sales hit £1.4bn

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Signet Jewellers has revealed its total sales increased 8.9% year-on-year to $1.8bn (£1.4bn) in the 13 weeks ended 30 April 2022 (Q1 FY23), rising by $149.5m (£120.19m).

The retailer said the performance comes as customers responded to the “breadth and newness” within Signet’s assortment, including higher price point offerings, diamonds and precious metals. 

Same store sales (SSS) are also up 2.5%, however Signet’s income dropped from $168.7m (£168.7m) Q1 FY22 to $200,000 (£161,240).

All in all, international sales surged 91.6% year-on-year to $110m (£88.68m). SSS also grew 102.6% due to prior year store operating restrictions, higher average transaction value (ATV) and a higher number of transactions.

Meanwhile, North America posted sales growth of 5.4% to $1.7bn (£1.36bn) compared to Q1 FY22. However, SSS dropped 0.9% amid higher ATV and a lower number of transactions.

The company, however, did swing to a loss in Q1, reporting a loss of $92.1m (£74.04m) with diluted loss per share of $1.89 (£1.52), down from net earnings of $129.8m (£104.35m), or a diluted earnings per share of $2.23 (£1.79) last year.

Looking ahead, Signet expects a level of consumer pressure in Q2, including inflation and the impact of stimulus, although this doesn’t include a material worsening of macroeconomic factors which could impact consumer spending patterns.

Signet said it continues to anticipate some shift of consumer discretionary spending away from the jewellery category, amid decelerating levels of consumer confidence and pent-up demand for experience-oriented categories during the year.

The company also has planned capital investments up to $250m (£201m), reflecting continued investments in Connected Commerce capabilities, banner differentiation and technology harmonisation.

Virginia C. Drosos, chief executive officer, said: “Our scale, strong balance sheet, and diversified banner portfolio provide flexibility to navigate macro level uncertainties, deliver consistent annual double-digit operating margin, and continue investing in differentiated capabilities to widen our competitive advantages.”

Joan Hilson, chief financial and strategy officer, added: “While we anticipated and experienced softening within lower price points resulting from heightened inflation and the lack of stimulus, we delivered offsets through tailored assortments, digital capabilities and enhanced services to maintain higher average transaction values.”

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