Signet Sees First-Quarter Sales Soar

RAPAPORT... Signet Jewelers' sales jumped in the first fiscal quarter,boosted by income from recent acquisition James Allen and an increase in e-commerce.Group sales grew 5.5% year on year to $1.48 billion in thethree months ending May 5, the retailer said Wednesday. Revenue from e-commercewas up 81% at $146.5 million for the quarter, accounting for 10% of total sales. Of the divisions, James Allen - which Signet bought last year - saw the largest increase, withsales climbing 29% to $53.3 million. Revenue from Zales rose 9% versus the same period last year, coming to $298.1 million, while Piercing Pagoda increased 7% to $74.4 million. Thegrowth outweighed a 1.9% decrease in sales to $583.2 million at its Kay stores,and a slide of 8% to $267.5 million at its Jared outlets. "In the first quarter, we saw signs of stabilization in our overall sales and once again achieved double-digit growth in e-commerce," said CEO Virginia Drosos.However, Signet recorded a net loss of $496.6 million for thequarter, due to a number of factors, including problems related to the credit-outsourcingtransition and restructuring charges. The company's same-store sales - for branches open at least a year -were flat. The retail group predicts its second-quarter sales will drop by a mid-single-digit percentage to between $1.3 billion and $1.35 billion, but it still expects tomeet full-year goals. "Looking ahead, we expect second-quarter revenues to be impactedby a tougher prior-year same-store-sales comparison and calendar shifts,"Drosos added. "We are maintaining our full-year 2019 guidance and are intenselyfocused on laying the foundation to support improved performance in the holidayseason." Additionally, Signet has appointed former Nielsen head of humanresources Mary Elizabeth Finn as chief people officer, and Stephen Lovejoy aschief supply-chain officer. Both will report directly to Drosos. After Signet reported its first-quarter results, its stock rose2.6% in premarket trading.