SIG - Earnings call transcript Q1 2025 | Signet Jewelers Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Signet Jewelers First Quarter Fiscal 2025 Earnings Call. [Operator Instructions] Please note this event is being recorded.

Joining us on the call today are Rob Ballew, Senior Vice President of Investor Relations; Gina Drosos, Chief Executive Officer; and Joan Hilson, Chief Financial, Strategy and Services Officer. At this time, I would like to turn this conference over to Mr. Rob Ballew, Senior Vice President of Investor Relations. Please go ahead, sir.

Robert Ballew

morning. Good Jewelers 'XX Signet Conference Quarter First to Earnings Fiscal Call. Welcome

we number certain discussion, facts Any a you uncertainties. to we cautionary We today's risk and to differ X-K. forward-looking results are in and risks may Actual current will XX-Q or to reports on Except read required forward-looking historical light our as During urge Form not other make statements statements. annual disclosures obligation report materially. or of and on Form undertake are by update publicly new statements law, subject factors, on the of revise future XX-K, language that Form no quarterly in reports events. information

we call, discuss the financial will measures. non-GAAP During certain

as the the financial at the our For further discussion ir.signetjewelers.com. directly of most news on the investors well reconciliation measures release non-GAAP a non-GAAP should to website GAAP as financial measure, comparable posted review we of measures

IR Additionally, a morning over presentation also believe deck Gina. that the was new to investor will helpful. With turn that, website to we call I'll this investors find our posted

Virginia Drosos

morning, pressure first and discount Thanks, to good quarter. activity a many continues Signet with expectations for everyone. I'd delivering consumer and like the This our to be environment jewelry participants. challenging team on Rob, the for macro thank our among heightened

key to tenacity commitment today. inspiration like success every me to with takeaways an and team's is day. I'd X Our leave our our customers delivering and is to you

and quarterly strong business, our recovery, in of delivered a we our the and engagement driven offerings services. the performance fashion First, within accelerating in continued product jewelry new guidance the seeing are results by momentum success

April which second an guidance positive sales inflection includes higher reaffirming the year. increased that are for and Second, in the the to same-store year of half in we guide,

as adjusted balance meaningful margin improving EPS. Third, which designed, our strong all flow cash and sheet, diluted operating delivering growth is performance, to our conversion free driving of working model flexible are

on is quarter pre-pandemic, diluted than important EPS adjusted we've our more our perspective, nearly of this doubled and elaborate than takeaways. XXx For adjusted each now these higher income. I'll operating

delivered we saw April top and Recall with improvement with quarter low to half $XX sales begin and and sluggish retail. Day late decline sequential last QX. In April, We in single-digit to a March income quarter, engagements guidance. This mid-single-digit to banners. in Valentine's that improve seen further reflecting momentum excluding adjusted decline. fourth $X.X seen February we've in for with to operating trends low billion was expected in the our the of quarter, meaningful May, million we've double-digit through delivering decline the improve acceleration and bridal, From in digital quarter, QX, in engagements shopping

Our of Diamonds $X,XXX in in Direct, below April. most units growth having bridal flat with were delivered banner, Jared unit positive already and units inflected Kay several April, has weeks last months. Engagement recent to focused to in year

May, quarter seeing to transaction last Engagements in are and recovery further part the decrease at we above which banner price quarter, points slower progresses. value, contributed a in in We continued to discussed as we the small to average improvement ATV. digital or challenges anticipate second $X,XXX improve due

for Our to engagements recovery, increase see in believe the continues to a we we to on X% remain to proprietary multiyear data and track XX% U.S. XXXX. point fiscal

new basis nearly at We of bridal relationship branding the dating on through From merchandise are the are fashion May, do by to gaining February in momentum. to recovery. Sales time in data compared merchandise to driven continuing improved XXX to a win the leverage March individuals sales million fashion to items. XX fourth points and our also right marketing quarter, targeted

merchandise of to this in XX% sell-through newness time year with strong sales, as up of banners. new last see than a to more core percent continue We

are Kay Jared at collection collection of at Shy driven strong new the items by from revenue those materially example, in our Love assortments. both For up and performance Unstoppable

merchandise as for fashion product well our Our include leveraged working items ATV such gold, customers. lab-created margins. These our to and attractive and value is strategy as protect jewelry, as to also new our pieces precious We've diamond points, strong platinum. at metal scale price silver expand delivering innovate including

strength Piercing in Canada saw of in flat a strength to Lane U.K. on by Further, same example, the trend our in We in quarter the banner, had For our Banter Padoda, value-focused year, assortment. sales of quarter the held the gold a flat while units. this Neil Peoples last ATV our branded near and continued same-store collection fashion the extend to Samuel increase delivering H. XX%

loyalty contributed key Another targeted of XX grows to personalized our purchases efforts includes recipients, follow-up In purchasing include total shopping to lifetime marketing active QX, members increase in It's than drive penetration value. to extended more also a more new delivers which We've fiscal and year-end. fashion. to to This fashion 'XX driver year ago. members increased has program, the of engagement fashion ring in points compared a working. since is experience a members loyalty XX% which win

marketing shopping preferences on and is taste merchandise targeted key their provides members and expansion and a Our our value select based plan. margin strategy merchandise in

update diamonds, Before on on from I'd to moving or fashion, lab-created like an provide LCDs.

LCD in more carat attractive that costs are afford customers down, for has diamond X ring. years, This can for grown than retails options has the providing options LCD and natural price-conscious many to engagement they come past the allowed looking Over efficient. production larger

the fashion, be of assortment. however, natural effective continue merchandise has ATV been diamond of expansion seen their attracted segment runway Our industry trade-up long-term at for selling to that ring for our has many a traditionally and natural largely in meaningful maintaining opportunity. overall lower LCD while engagement penetration strategy diamonds value looking consumers to a trade-up to see we the It's uniqueness. In and rarity maintain

pieces first. For carry fashion at of fashion driving margins LCD more blocks performance QX XX% off a builds revenue LCD track out. ATV on offerings, compared same-store will pieces in my attractive ago. year. Xx as we've QX, increased half gain year a inflect takeaway We strength the in our plays than example, remain for sales second in positive the These increase to of fashion to The non-LCD the LCD next year of this Signet. My building

will our frequent newness inventory of through further merchandise depth We the and in new more increase increased deliveries penetration offerings. of product

are bridal competitive We consumer also macro such traction. insights leading as believe opportunity the technology, in challenging scale, Signet our that drive sales advantages, to we point a fashion categories to believe environment. There provide indicators continue to X and and

positive delivered First, our largest banner or flat comp in May. in we operate has sales country each

also May. e-commerce Second, in our comped digital sales, excluding banners, positive our

footprints JCs. advantage connected jewelry positive that impact capabilities with the commerce selling It's competitive recently, already. combination introduced social and virtual physical JCs, ship-from-store a are of both digital are like shoppers. jewelry optimized for footprints our we've or More capabilities a and showing consultants, Our provide for which

combining growth are and selling banners. of at social we X.X contribution personalized and storefronts, underway with year. Last this 'XX spoke expect Our showing their or triple jewelry outreach about will Signet approximately revenue its consultants digital Planned we progress. interventions our are the challenges points quarter, comp social in fiscal integration

And can launched management in-house. create or just-in-time vendors and establish example, working fulfillment. our we've select fast inventory chain wedding streamline a of program with connections our to shipping supply our improve For that to the we for speed API we're correct bands

rate. include provide attachment We'll year by a any improvement As revenue than full XXX-basis-point guidance to increase progresses. Service continue digital XX update year merchandise as a not in does our in growth first our by banners. points driven in operational outpaced the more reminder, the quarter,

offerings, newer Our service are service including agreements performing post-repair well. extended

rings, engagement As XX% than improve, especially in-store have sales merchandise services also from which benefit, attachment. will more

Turning for this to my takeaway final quarter.

operating fiscal Our generated will model more pro fiscal guidance EPS. adjusted to be of driving count continue are impact by forma by We XXX redemption million than dry EPS conversion will basis 'XX points that date. cash XXXX. in in fiscal reduce end margin powder preferreds shares expansion positive approximately to to the the X of driven of we've years, our of operating impact and flow to the reduce $XXX cash from million by provided to flexible reflecting our Recall our debt pre-pandemic. X.X free a flow preferred redemption 'XX increased strong our XX% outstanding of free since This shares. last as the each April the diluted to This meaningful in X% XX%, into approximately share by

and shareholders We the X we takeaways we shape, and expect in our conversion. to strong With year; over opportunistic will to leveraging driving through it again focus of to cash in third, for commitments our value. To drive investing model key in see and great we continue today on operating cash to shareholder the second to delivered flexible now positive are: that, margins first, M&A this flow. With quarter; free inflection to track returning EPS are strong summarize, order sales turn this balance I'll half capital on on significant in an free liquidity the our growth higher Joan. business, is same-store second, excess sheet

Joan Hilson

saw declined to single while even digital ATV billion, down year, and start increased morning, from X.X%, $X.X expected. decline largest reflecting were the low last ATV Thanks, the last in and points our which as with banners, just Loose on February. April as slower from also hold branding and innovation. Traffic Gina, was grew Diamonds midpoint America sales and March the This impacts finished maintained Same-store to an the to down product continued just were disproportionately heightened pressure industry and promotions products above We for Jared, Services improvements year. banners in pricing quarter digital in of good largely our saw stones we ESAs. our attachment digits. everyone. Revenue able X of through guidance. including rate X.X% reflects Direct in North was approximately X.X% the ATV,

of lower of XX%, offerings. line We an the points, costs build sales. XX%. We attachment lab XXX use diamonds growth of or rate bridal in to further including approximately our fashion, develop and product tailwinds significant see will million fashion on service services prior delivered recovery, of gross approximately margin jewelry from was on training see occupancy we customers expansion attachment $XXX the engagement revenue. in-store deleveraging that lower consultants improvements value we but grown expanded and opportunity on current rate sales, Adjusted newness, by lifetime within over with basis this to by in our merchandise on the and of to offset year technology continue by quarter of the margin XX% educate led With

Turning SG&A. to

million quarter year we increased Day. year SG&A XX% higher points was Mother's was Our adjusted last lower the as on and of of diluted X% for or high our than basis $XXX costs quarter revenue. Adjusted was of for for the last expectations. share. per than sales XXX fixed marketing million $X sales or was $X.XX spend end of Adjusted expense $XX the million lower even Adjusted with deleveraged guidance operating income at EPS

share for the half end million preferred XX averaged we redemption diluted of of a from quarter, of With the reduction the the of settlement the 'XX. and net XX% fiscal fully agreement, shares shares

year, at merchandise. bring to last inventory. while revenue, We and We're $X to productive down new in ended in markdowns the Turning in are in lower-margin of to which line clearance levels X% additional take margin, products. with order billion, relevant we optimizing using pace reduce more the inventory higher quarter to less investing and products at strategically even

in to leverage. adjusted EBITDA redemption quarter X.Xx reflects which net April. approximately debt flat, turns the at with with preferred adjusted debt to the to gross share Turning ended We EBITDAR

in shares by debt this recent will remaining noted efforts we coming upgrades senior We both sheet our our Fitch. on and the retire have balance These by ratings address days, been unsecured year. preferred the S&P to the liquidity have and

the Funded also structure is drive flexibility to of have public in on debt our track required maintain modest our provide shareholders. a the future. for amount is to the efficient are we returns in way a which to we coming capital in credit While rating, most X important believe months, is debt to debt

shareholders, our materially we all weighted where lower the in than As below powder boost such, cost we optimization, of our we will our cash be dry banner. closed borrowed excess investments this capital, in while year and Ernest to opportunistic leverage targets. remaining fleet modest Any return year primarily lower for well and Jones stores amount the average to XX will this explore fiscal market ended options 'XX. On in quarter,

margins forward. also going materially of in improve overhead to XXX U.K. previously Both track business. our to to We and U.K. approximately our efforts existing open XX performance part were reduced XX stores remain on this announced the and our stores costs renovate year. the of We

Looking to guidance.

sales same-store engagements with range in in the of revenue the improve billion, in X% down and improvement $X.XX in pressure that from to first second a quarter We $X.XX the believe second will loose continue expect billion quarter. X%, the We with some AUR to of stones. range material quarter

higher SG&A to similar margins quarter. the with We to expect flat gross deleverage compared first

adjusted million million $XX $XX expect between EBITDA million. income and between We million to $XX and operating adjusted $XXX

year today. We guidance our full reaffirming are

there X However, we are watching. potential are impacts

potential preferred boost early redemption preferred count dividends which this of further our our adjusted diluted both reduce our diluted and may the First, would lower outstanding EPS. shares of share year,

discounting may competitive the more expected year. heightened at we Second, margins beginning of back than pressure the into half the

discounting assortment We for second mitigate monitoring the while architecture our to that are 'XX balanced margins strategies. impact of this full in we the and promotional potential work the impact gross of fiscal through half year, to

to continue XX% to million million in X% up also We expect to capital continue and for expenditures. the to expect be incidents $XXX year, we to $XXX spend engagement to

like Before Love. our distribution you Inspiring Signet our and and in in shop centers, centers. our stores, Q&A, our in Thank devotion commitment your thank Purpose team of we your our move our on execution strategy in of I'd to to support to excellence the repair for to our

Your all go now inspiration of let's efforts of Operator, are to questions. us. a source for steady

Operator

[Operator of Bank first the Instructions] question America. line And your Hutchinson comes from Lorraine of with

Unknown Analyst

Melanie bit, did wanted margins specifically was the just than is to little on I Lorraine. This touch for a They different expected. look XQ. for what a on

for So you can just second in half? then that break better what those And confidence bit little apart the a gives getting you the more?

Joan Hilson

are for few and marketing impactful margins be for by we've expense us things: The and ad a ROAS spend. and QX impacted seen Melanie. improved higher on thanks, one, Well, return which just

back we well some positive our number deleverage So seeing to that's inflect comps. the to costs within as that SG&A. as as costs over year the would on higher one. of We somewhat abate expect see staffing We are half we fixed

Unknown Analyst

follow And that then just to up a bit. on

you trending seeing for Just heightened, year? can the respond in you that know doing and said I you just talk about what industry? how the promotionality to that you're that you're to see the it's

Virginia Drosos

Sure.

level. So we've now more significantly That Independent XX the continued back category. months. a last to normalized see to getting promotional were for a has jewelers highly been over-inventoried

back we've about. great So And really haven't to hope of although we'd see the doing, to QX, for our I potentially plans. get I level competitive think we in a and QX accounted environment what been in normalcy feel that

and find So our we use of those our are we key been and great great strategy values That's loyalty scale the great in last XXX the one program. drivers which in assortment. newness metals values a then our offer customers fashion up our as QX compared assortment, to gemstones buying of really to us and in first A our months. X for fashion to story quarter, is basis points February. second the in was nearly

allows the We are us value time. targeted. instead That right be right increasingly much offering to to targeted at opportunities broadscale customers discounting and reduce more the

that in put help kind competition we the have think hopefully, this strategies promotionality right to environment. healthy us more a level number a utilize in And we've challenged see we'll have of of we also that of So strategies. place

Operator

question Paul comes Your Lejuez with line the Citigroup. from of next

Paul Lejuez

about as engagements the than fashion expected? the the Curious, composition both lab-created? natural you the between mix second, piece? talk you is lab-created can what And you're of pricing any can just piece about business talk as the are customers you of both different well natural on recover, seeing then versus in the as what and And engagement buying

Virginia Drosos

Paul, thanks your questions. for

for while choice far So challenged of price-conscious engagement. for good been and a has consumer a natural for environment customers We've more are away by choice seeing now. had in engagement, a customers. we diamonds a Lab-created still

people get has think good they'd so a And can't afford context like innovation stone that in of size been for that I who clarity it to the and natural. in

continue to both customers, diamonds. our we finished and choice so And in in product to that loose offer our

with in story LCD fashion a We trade-up I interesting able on the engagement But have opportunity think here. real on than still we natural. is to be continued leverage lab-created a as have higher AUR to

that our I than the of fashion the ATV in prepared grew So the the ATV an And of assortment, that's twice is more LCD one fashion. quarter. in first remarks at we said things XX% average

a for in that's to in we're add points selling, natural trade bling product, it's that to up but LCD really also very have sometimes At it's So trade price at healthy opportunity more fashion margin consumers expensive to general up fashion. Signet. the more expensive those fashion an us opportunity pieces diamonds piece, and very then obviously, into help beautiful a and a a gives

effectively, in diamond a has opportunity. bit of story continued very both we're our on strategy both, and seeing and different in So a worked little engagement fashion, but

Paul Lejuez

And just Yes. you natural the year-over-year are then or seeing pricing, lab-created? in on declines

Virginia Drosos

Yes.

I category as expectation Retails been still we production carat level. to independent to even There more continue it's the that on matters, extent. a at said, have In per So that as efficient. a a significant due our availability. That's have for good way use which There general pressured. higher discounting, has down place. to but The a though see continues a down are kind decline. strategy it is put is pressure been And has primarily to some lab-created has able why to jewelers. become the Costs to to pricing in much the rate, normalized cost slower lab-created on getting of we've need heavy we've natural, down. what come come in come drive the by in AUR

Paul Lejuez

luck. Good

Operator

Wells line from of Boruchow with Fargo. Ike next Your comes question the

Irwin Boruchow

Gina. Two from me. first Maybe questions for

-- us you share tell and overall specifically using get just for Day And the can Just are where as like be Gina, then just diluted and really for we relevant year, was count you you diluted on also well don't how some guys running guys? preferred helpful. May and share was the know, you exiting some to the count quarter-to-date, around either QX maybe color we and simplify you quarter And ]? if would that it gave dividends, are us preferreds for share details. could season but [ Mother's Day what just just the as, the Mother's QX, I Joan, second you the how could gave selling interesting count

make sure trying to the Just we get straight. all model that

Virginia Drosos

question. a thanks lot And Ike. for your

mean for from this I keyword think to team that team the Signet the resonating store I C-suite every member. the word the call is with is momentum. probably that is

If a Day only for quarter, of to momentum you through recall, the see We and retail. started the but February was start Day not Valentine's to May shopping. saw We Day of and half guide. QX our top sluggish and were in with late some Mother's pretty March all the back business post-Valentine's come actually Signet, April

So that significant that we momentum in the into, really are is broadscale. leaning business

units, fashion February engagement So and of May a accelerating that significant acceleration. being X were where the significantly the over versus at end in high improvement the in quarter last fourth with we months

seeing lot working. what's now, business leaning So the and momentum into a of we're in right we're

is our value-conscious but in this in one and investment right us those industry, customer consumer also of seeing finally allowed customer newness, it engagements in So is for now. not lull things prepared COVID very predict anyone data predict allows that the be insights us a We're to than more that only trends. to abating and analytics

our with a targeting scale, offers customer are And to sharp that our product value-conscious value-engineered so plays value. actually strength. And points we incredible price with an

momentum. So what's working driving into keep we're that leaning to

sales The of to improvement. be fifth guide, shaping second our consecutive quarter, quarter same-store with up is our

working into a have QX. we we're good going and here, leaning So trend what's in

Joan Hilson

year. count, was shares the respect With diluted QX XX for to million share full the

in guidance the shares. the view expect the to be given million considered XX.X that full That's we've year. what's for We

Irwin Boruchow

on help quarter Can second as you well? the

Joan Hilson

I Just than from that earlier a as about as any the impact the retirement would of the think And mentioned would throughout shared shares my it redemptions I view, number. XX date remarks year. balance stay in that million tuned,

Operator

with Mauricio line Serna And your question comes next of from the UBS.

Mauricio Serna Vega

it about Just I what Mother's would it that, was momentum I a carried. on was whether QX guidance, kind you wanted that -- the sure but like then just follow what seems commentary like, up mentioned to patterns? post sales in make volumes trying sales Could like but it understand sales has of First, you to have to event, on engagement about the Mother's looked yes, good are Day? talk just And know just QX Day. it. like if considered the about

Virginia Drosos

Mauricio.

week So top and guide. as to in said answer I half QX in Ike's were overall, Mother's Day question, May our of the

strong So a month.

continue our We sales strong fashion in business. to see

Our versus ago, also of it's was significantly our XX% up and year a sell-through a higher percent newness receipts.

in done mean, So about look quarter. Joan inventory remarks that managing our the talked pre-pandemic, job that her was teams launched Despite And the all in, inventory. I newness significantly. down great down in have it's the we've if our you X%

across to items we're capabilities items across very a sold another they -- access store store particular our So new in place if are consultant quickly our their the that use working to be able ship can from to new own from so in store. healthy our that lean across jewelry We those out country fleet. every into spread those

because I this think a advantage of the we're a is, us think, and competitive at really I that our as for value sharp great into way for mentioned, leaning time. and in value-conscious new have items it's we we like points scale environment this point in price a really to our customers. And So something construct

loyalty interesting kicking in. is program super fashion our on other thing is how The

active in members launched the XX% purchase. of quickly. made So we loyalty program just a years and we come new had it a who increase in are ago, we only a users loyalty members, the had QX of into couple growing it number the but XX% We loyalty

drive this things opportunities and and and that laser messaging now to content target items our to to them consumer that personalized provide of of data use buy, our one really to visibility fashion we're purchases. our customers the that's might interested helping our able to platform, they combination or So be is marketing

that positive to thing inflection to about. we that talked really another we're same-store that into sales leaning achieve it's So

Joan Hilson

bridal the back to flat expect and respect about, have year with of And digital talked recovery up the digital. again, to in terms the And the selling. unit it's we of we QX, as of expect banners to excluding what we Once the that's would inflect question, the fiscal in excluding expect, guidance. momentum throughout mid-single-digit the said, bridal we half is positive continued the of high this year. as fiscal our reflects And engagements on end we would

Mauricio Serna Vega

to I units? up Sorry, want digits make this mid-single sure, was just to flat bridal for total

Joan Hilson

engagement For units.

Mauricio Serna Vega

just... Okay. And Got it. then

Joan Hilson

Excluding digital.

Mauricio Serna Vega

Digital?

Joan Hilson

Yes.

Mauricio Serna Vega

And merchandise versus then on expecting on like about commentary year-over-year? you you shouldn't brick-and-mortar the Could just on a kind quick one follow-up margin. higher in talk to the thing what the of And saw be? getting trends you should on are to the like independent be last why independent just online? would -- shape, jewelers inventory It that risk better they? seems promotions understand like And guide,

Joan Hilson

guidance that better in had inventories general, but I are the consumer the is incorporates And think, in our Versus said, the Gina for what yes, cautious. shape, Yes. year. full

We promotional in are in the of overall the and are we environment and retail. -- industry, cognizant

we to expect are our the ramp to us in of so our helping that as margin for the promotion lever see for year. to QX, services as and up, expansion. We brought us are key a merchandise potential is lot continues of forward within our well the for customers, great and saw that for that And through Mauricio, it as remainder in impact that working prepared team promotion we has newness a the we guidance, -- mitigate that's

a So merchandise margin. the stores add in within new it's margins, services a fashion Gina contributor for LCD influence not and margin. merchandise us merchandise, and the of strong mentioned, assortment, merchandise -- within difference the Between is as e-commerce, meaningful also

As really you years. in we be healthy But we're hygiene were to terms have more clearance. ship clearance and store place inventory, tended -- able from to have prior in online a of and inventories, in we know, very from our reduce which

see X we significant difference the channels. So between don't really a

Virginia Drosos

follow Mauricio, remain that is our be win say provide promotion that our category. customers, is made remember and The of would competitive to way in equities, in thing competitive. the The it promotionality, innovate quickly I to team and to we winning not one great on we who We we've other leader is advice our store on the strategy excellence investments and brand digital and tenured our the our advantage counsel data. the ability and

we but can lead into competitive our that So to do we stay drive don't make sales Signet to lifetime close bring we and sure promotionality, customers family value.

Operator

Your next from the Northcoast comes Research. Jim question of with Sanderson line

James Sanderson

value guidance for I back go your How to today? the wanted slightly down included on should progress commentary to What is first average in year? the transaction experiencing momentum ATV in quarter. going the being given you're the that forward

Joan Hilson

Jim, driving the would into critical fashion we or our in expect for Yes, of in product. balance LCD talked year terms to transaction the of ATV, really terms similar value, about, see a is of average the of comp performance ATV. Gina What

to bridal seeing are in recover. We performance nice continue

really QX able So to at [ saw in between to we we ]. hold levels similar ATV see those as factors, expect we're an X that

James Sanderson

Okay.

very, to but So look very maybe possibly a slight right decline, it? at modest, way

Joan Hilson

Slight decline, yes.

James Sanderson

XX% you'll an include XX% engagement... the services those the that attach and for rates warranties maintain that does on And assumption

Joan Hilson

a price as see Great opportunity we increase. see attachment opportunity XX% rate, expect -- fashion, rate in LCD see great the Yes, increase of would with question. to it's in bridal We question. attachment to We the and revenue definitely points there with in infusion continue we overall engagement yes, growth. an fashion. to the tailwinds with drive But

included services as but is driver for is a ATV not calc, in year. our note that us we considerable a it make to the Just progress through

James Sanderson

Okay.

estimate engagement diamonds bridal? grown in you Did question mix of lab-created on sales the lab what provide another Just is follow-up an your for in diamonds. category

Virginia Drosos

didn't. we No,

to in budget We We lot continue kind rings specialness any a into engagement diamonds well able has time, didn't value as as but a natural, of who finished it leaning choice we and consumers to have see mix. a the offer be both afford loose a its which to consumers choice. of as provide over holds rarity traditionally

James Sanderson

Last for Okay. me. question

you with in I Beers it. De think as be the training of United half the announced the I back with understood major a initiative, in States that will partnering year they

I'm been incrementally So to team De their as you expect that do able far from training what wondering, haven't offer to you your consumer Beers date? U.S. to sales as the

Virginia Drosos

Yes.

when So diamonds It's world's producer De specialty world's a jeweler with great partnering the of very excited of diamonds retail get thing together. largest largest we're about the and Beers.

relationship from directly site buy with vertically We diamonds holders because have the integrated retail a already obviously, who we're of mine. and very one them, are few rough

an years what of say really would is this helping natural specialness, billion forms of to is the to what and of rare I natural diamonds. extension of understand was the So special very customers center return the diamonds. I core that and prehistoric the of tubes it's volcanos allure over a historical in thing partnership. And earth the uniqueness and mean with approach X a

would life about I and teams economy wonderful that And to so I that be them. great to share to excitement able improvements of a in the in that that to it store with we the people thought our that be myself of the with specialness of when seeing Botswana, them time some remind was country saw share

would any reminder a just we teams, treating kind we uniqueness. coach like them and a specialness almost it's again educational natural new for of like our that launch. really item would on We're So an and diamonds train that opportunity like new of item

to also goal And are marketing find clearly so a our consumers, key that time is asking partnership. exist the directly not buying providing are the first it's that is especially who answer the only store one the great having able teams of consumers. for be difference? a question on also consumers We diamond but partnership. front, training a young to of questions So to It will that and on the what's education

Operator

question comes And Telsey the from line Group. Dana of your from next Telsey

Dana Telsey

are the opening on them how on And Given that promotional discerning of and more and what the margins? adjusting And are or different banner in is consumer points by that impact terms offering, cautious How Is levels that the it that you're by promotional the different? this price levels seeing? increased environment is banner? you're newness has out the there, you in changing? then

Virginia Drosos

differentiated board. on pretty across our strategies have we Dana, banners so the

estate our So points about which targeting, average they're off customers how mall on price much mall. even or assortments, real of in we how strategy the think

that And say those are things. But customer don't looking Pagoda. about lot be value-conscious of in say customer think Jared I price banner, we Piercing some the to looking great done within one looking is point value-conscious the So value consumer by reasons. I for. strategy for a And differentiated that each So what obviously, competitive the customers this quite say we've for promotional would can what would those strategies, in work might banner that different for be be also from Banter they're they're value-conscious a different, for? a

points we So that assortment looked are price think at customers. really we and hit to designed that for our have right those

an gold as example. take So

to more higher really price a I point gold things at that in it have get Piercing and a very Banter price Jared innovative we think, we're at less with the able lower which and like allowing offer sharp to technology but end some We a gold, with lower Pagoda, done, something in that's a and a call an a creates still point, big is of bit at end by those banners. innovation a sculpted to look both with us gold a

Joan Hilson

key all newness meaningful customers we we'll and it's newness strategic a a getting way importantly, flowing as answer us. as your we aspect newness newness the the to -- are for banners, in inventory it. be penetration through year. and progress are for increasing older strategy reducing We've our our through in. and newness, of merchandise we Dana, flowing of the infused of And and across that

a forth assortments banners. customer across our by bringing but out new really approach to taking for newness So inventory, increasing old balanced

Virginia Drosos

designing with newness It's lower of naturally hot. with the some can new, it's they'll We're promotionality. that And come sell out. lines intention our

quickly And so to it discounting. it the or available need be that precludes then you for need get and won't

Operator

would that closing our concludes like remarks. turn back Gina it question-and-answer to session. And I Drosos to for

Virginia Drosos

and published recently Corporate the which into I'd purpose-led Report, highlight Citizenship insight end we accomplishments Sustainability Before to and provides our goals. call, like our great

believe attracting category. retaining customers driver sourcing, of Our is in for responsible and the we industry-leading a standards which younger key jewelry

a at available is website, with now our at full bright look is These this Goodbye. core rate of call The materials it. our resonating morning. customers. you Another recycled doubling Thank take and joining report you'll on our are our for hope I banners. the spot of all

Operator

ladies Thank And and you. today's concludes gentlemen, this conference participating. you call. for Thank all

now may disconnect. You

Signet Jewelers Limited (SIG) 13 Jun 242025 Q1 Earnings call transcript