The world’s largest retailer of diamond jewellery, US-based Signet Jewelers, recorded a third-quarter sales slump, which was attributed to a weakened economy.
Sales decreased by 12 per cent on a year-on-year comparison, reaching $US1.39 billion ($AU2.12 billion) for the three months ending 28 October. Same-store sales also declined by 12 per cent.
Bridal revenue decreased by 15 per cent, while sales of fashion jewellery declined by 12 per cent. Services, such as repairs and jewellery rental, increased by five per cent.
“These declines were driven by the impact of heightened inflationary pressure on consumers’ discretionary spending and the decline in the bridal category, driven by lower engagements,” the company said in a statement.
Demand for bridal jewellery increased in November, with sales in the fourth quarter expected to be between $US2.4 billion ($US3.66 billion) and $US2.6 billion ($US3.97 billion) – a forecasted decline of approximately 10 per cent year-on-year.
“Trends through Black Friday weekend, including sequential improvement in engagement trends, are performing in line with guidance expectations for the fourth quarter,” said CEO Virginia Drosos.
“As we enter the holiday season, jewellery remains a top-of-mind gifting category for consumers in a value-conscious shopping environment.”
Signet’s total sales for the first three quarters decreased by 10 per cent year-on-year to $US4.67 billion ($AU7.13 billion).
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