Signet posts 68.8% decline in net income in Q3 FY24

Sales fell by 12.1% to $1.39bn in Q3 FY24 from $1.58bn in the same quarter of the previous year.

Jangoulun Singsit December 06 2023

Signet operates 2,700 stores under banners including Kay Jewellers and Zales. Credit: Phillip Pessar/ Flickr (Creative Commons).

Diamond jewellery retailer Signet has reported a net income of $11.7m in the third quarter (Q3) of the fiscal year 2024 (FY24) - a decline of 68.8% from $37.5m in Q3 of FY23.

The retailer’s generally accepted accounting principles (GAAP) diluted earnings per share (EPS) was $0.07 in Q3 FY24 compared with $0.60 in the same period in fiscal 2023 (FY23), while its basic EPS was $0.07 as against $0.62 in Q3 FY23.

Its non-GAAP diluted EPS for the latest quarter was $0.24 compared with $0.74 in Q3 FY23.

In the 13 weeks ending on 28 October 2023, Signet reported $1.39bn in sales, down by 12.1% from $1.58bn in the same quarter of the previous year.

The retailer, which operates 2,700 stores, reported a drop in same-store sales for the quarter of 11.8% compared to Q3 of FY23.

In November 2023, Signet completed the divesture of 15 luxury watch stores under the Ernest Jones banner to the Watches Of Switzerland Group.

The retailer reported that its GAAP operating income was $13.3m in Q3 FY24, down from $48.4m in the same quarter a year previously. Its non-GAAP operating income dropped to $23.9m during the latest quarter against $57.9m in Q3 FY23.

Signet chief executive officer Virginia C Drosos stated: "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.

"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, jewellery remains a top-of-mind gifting category for consumers in a value-conscious shopping environment."

For the full financial year 2024, Signet expects total sales to be between $7.07bn and $7.27bn and operating income to be between $630m and $670m.

The retailer anticipates its full-year diluted EPS to be between $9.55m and $10.18m.