The world’s largest diamond jewelry retailer, Signet Jewelers, saw sales decline in the second quarter of 2022.
In the three months to July 30, revenue fell 1.9% to $1.75 billion (A$2.57 billion), according to the US-based retailer, with the drop attributed the impact of inflation on consumer spending.
According to Joan Hilson, chief financial and strategic officer of Signet Jewelers, “the discipline of our Signet team generated $1.8 billion in revenue and an operating margin of 10.6%, despite a weaker environment.”
“Our working capital efficiency reflects declining inventory levels year-over-year, excluding acquisitions,” she noted, adding that “it gives us confidence that we are well positioned to offer novelty with minimum clearance levels for the holidays.”
Overall, a 35% decline in net profit to $145.4 million (A$213.45 million) was recorded.
A management report found discretionary spending had been hit by increased inflationary pressure and noted shoppers were also allocating more money to experiences and travel.
In the United States, sales fell 1.8% to $1.62 billion (A$2.38 billion), which was attributed to record demand caused by the US government’s stimulus l ‘last year.
For the quarter, additional revenue of $113 million (A$165.89 million) was generated by the acquisition of Diamonds Direct in November 2021.
The depreciation of the pound sterling also reduced income from the rest of the world by 15% to $111.6 million (A$163.83 million).
Signet has over 2,800 stores, including Kay Jewelers, Zales, Jared, Diamonds Direct, JamesAllen.com, Rocksbox, Peoples Jewelers, H.Samuel, Ernest Jones and Sterling Jewelers.
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