Signet Jewelers can proceed to broaden its market share even because the U.S. economic system slows and inflation weighs on shoppers, 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% yr over yr. Wall Avenue had been anticipating a 5.3% decline, which can have contributed to the inventory’s 12% tumble Thursday.
Nevertheless, Drosos maintained an upbeat outlook for the father or mother agency of Zales and Kay Jewelers, suggesting near-term headwinds associated to inflation don’t change the long-term story.
“We had … important share development final yr. 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 centered on utilizing its scale and leaning into merchandise like lab-created diamonds to enchantment 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 we have now in the remainder of our portfolio, so an incredible alternative there.”