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Signet Jewelers can proceed to broaden its market share even because the U.S. financial system slows and inflation weighs on customers, CEO Gina Drosos advised CNBC on Thursday.
The feedback in a “Mad Cash” interview got here after Signet reported second-quarter outcomes earlier within the day. Whereas earnings per share topped estimates and income met expectations, the corporate’s same-store gross sales fell 8.2% 12 months over 12 months. Wall Road had been anticipating a 5.3% decline, which can have contributed to the inventory’s 12% tumble Thursday.
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Nevertheless, Drosos maintained an upbeat outlook for the mother or father agency of Zales and Kay Jewelers, suggesting near-term headwinds associated to inflation don’t change the long-term story.
“We had … vital share development final 12 months. Powerful financial instances are one other alternative for us to develop share, thus our acquisition of Blue Nile, and our continued funding within the enterprise,” stated Drosos, explaining that Signet has targeted on utilizing its scale and leaning into merchandise like lab-created diamonds to attraction to value-seeking prospects.
Signet introduced in early August it was shopping for on-line jewellery model Blue Nile. Whereas Signet has been investing in its on-line choices already, Drosos stated Thursday that including Blue Nile to the fold will assist Signet attain new corners of the market.
“It provides us a brand new shopper cohort,” the CEO stated. “Blue Nile prospects are youthful, extra prosperous, extra various than now we have in the remainder of our portfolio, so an ideal alternative there.”
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