Signet Jewelers shares fall sharply on weaker second quarter results

Signet Jewelers earnings and revenue fell from a year ago, sending share prices tumbling on Thursday.

The Akron jewelry retailer said it remains on track to meeting its revised full 2023 fiscal year revenue and adjusted earnings guidance. The company in August lowered its outlook for the year, citing decreased consumer spending caused by high inflation.

Signet reported net income of $145.4 million, or $2.58 a share, on revenue of $1.75 billion for its second quarter ending July 30. That compares to net income of $224.6 million, or $3.60 a share, on revenue of $1.79 billion a year ago.

Adjusted earnings were $2.68 per share, down from $3.57 for the fiscal 2022 second quarter.

Shares fall 12% on morning earnings announcement

Signet reported results before the stock market opened Thursday. Shares were down $8.03, or 12.3%, to $57.47 as of 1:33 p.m. Over the past 52 weeks, shares have ranged from a low of $48.31 to a high of $111.92.

"Signet's focus on gaining market share, driving further operating efficiencies, and building capabilities that are true competitive advantages, is putting us in a position to deliver long-term growth and increase shareholder value," Virginia C. Drosos, chief executive officer, said in a news release. "Our results demonstrate the continued agility of our Signet team, the strength of our differentiated banner portfolio, and the flexibility of our operating model. This is all underpinned by a balance sheet that enables us to continue to make strategic investments such as our recent acquisition of Blue Nile."

Besides Blue Nile, Signet brands include Kay Jewelers, Zales, Jared, Piercing Pagoda, Diamonds Direct, Rocksbox, and others.

Signet delivered $1.8 billion in revenue and a 10.6% operating margin despite a softer topline environment, Joan Hilson, chief financial and strategy officer, said in the release. Signet has confidence that it is well positioned to deliver "newness" with minimal levels of clearance for the holidays, she said.

Since the start of its 2023 fiscal year, Signet said it has opened 24 retail stores and closed 45. As of July 30, it had 2,833 stores.

This article originally appeared on Akron Beacon Journal: Shares of Signet Jewelers in Akron fall sharply on 2nd quarter results