Signet Jewelers (NYSE:SIG) after the jeweler provided second-quarter revenue and operating-income guidance that fell short of expectations. Signet also lowered its full-year earnings and revenue guidance to below expectations, citing increasing macro-economic pressures on consumers and a softer-than-expected Mother’s Day.
Sales of $1.7 billion, down $170.3 million or 9.3% (down 8.7% on a constant currency basis) to Q1 of FY23.
Same store sales down 13.9% to Q1 of FY23. GAAP operating income of $101.7 million , up from $0.2 million in Q1 of FY23. Q1 of FY24 includes $7.8 million for integration-related charges for Blue Nile. Q1 of FY23 included $190 million for settlement of a previously disclosed litigation matter.
Non-GAAP operating income of $106.5 million , compared to $194.6 million in Q1 of FY23.
Signet Chief Executive Officer Virginia C. Drosos . "As we look to the balance of the year, we're leaning in to leverage our differentiated capabilities, widen our competitive advantages, and drive market share gains. We are proactively addressing the dynamic retail climate, leveraging our team's agility and flexible operating model to raise our cost savings target by up to $150 million while maintaining strategic investments."
Drosos continued, "Our Signet team delivered our revenue and bottom-line commitments in Q1 despite macroeconomic headwinds that worsened late in the quarter. In line with our predictions, there were fewer engagements in the quarter resulting from COVID's disruption of dating three years ago,"
SIG dropped $7.01, or 10.1%, to $62.51.
