The news preceded announcement of the company’s full-year results, which were strong.
Signet Jewelers Ltd. opened its full-year earnings call by addressing the elephant that’s been in the room since late February—the Russian invasion of Ukraine and its impact on the retailer’s business.
The jeweler said [the week of March 7] in a press release about donating to the Red Cross Ukraine that it had suspended all business interactions with Russian-owned entities since the beginning of the invasion, a point its leader reiterated Thursday [March 7 in the morning].
“Russian diamonds, which we have suspended, were really a small impact for us, but we’re taking a bigger stand on this issue because we think that it’s so important,” said Signet CEO Virginia C. Drosos on the call.
She noted that Signet is a founder of the Responsible Jewellery Council and a member of the World Diamond Council, and has its own in-house sourcing protocol.
“This helps us dig back into the supply chain, not only to know that our vendors are operating ethically but that everyone on the supply chain from mine to market is operating on the standards that we require.”
Drosos said the company has been working with its vendors and leveraging its vertical integration and sourcing to mitigate any potential price increases related to the ban of Russian diamonds.
“We believe that the pricing pressure will impact Signet less than other industry players and the retail segment as a whole,” she said.
The Signet Love Inspires Foundation has pledged $1 million to the Red Cross Ukraine and will match donations from Signet employees two-to-one, up to $1,000 per person per year.
“We will continue to look for additional opportunities to support the people of Ukraine and our thoughts and prayers are with them all,” said Drosos.
Looking at its quarterly performance ending Jan. 29, Signet’s sales totaled $2.8 billion, up 29 percent year-over-year, with same-store sales climbing 24 percent, the retailer reported.
“The investments we have made in our ‘Connected Commerce’ capabilities and differentiated banner assortment and marketing have driven meaningful share gains, with all categories and all banners outpacing jewelry industry growth,” Drosos said in a press release.
Compared with pre-pandemic 2020, quarterly sales were up 31 percent with same-store sales up 35 percent.
Brick-and-mortar sales rose 35 percent year-over-year and were up 22 percent compared with 2020, while online sales increased 9 percent year-over-year and surged 85 percent compared with 2020.
For the full year, the jeweler increased its share of the U.S. jewelry market, which is now at 9 percent.
Signet’s full-year sales totaled $7.8 billion, up 50 percent year-over-year, with same-store sales up 49 percent.
Compared with pre-pandemic 2020, annual sales were up 28 percent with same-store sales up 34 percent.
Brick-and-mortar sales rose 56 percent year-over-year and were up 17 percent compared with 2020. Online sales, meanwhile, were up 28 percent year-over-year and more than doubled percent compared with 2020, up 101 percent.
On Thursday [March 7]’s earnings call, Drosos noted that a record number of couples are expected to get married in the United States this year and Signet is ready to serve them.
Around 2.5 million couples will tie the knot in 2022—the most weddings since 1984—and spend an average of $24,300 on their wedding, predicted Shane McMurray, founder and CEO of market research company The Wedding Report Inc.
Rocksbox, the Signet-owned jewelry rental platform’s subscription service, has been testing out a bridal box to cater to the market with affordable jewelry, said Drosos.
Photo © Signet Jewelers.
