Market Hit: Leveraging CE Data to Understand Signet Earnings Miss amidst Average Ticket Decline

Following SIG’s revenue miss, management cited independent and lower-price jewelers driving lower average tickets amongst its banners.  CE data shows how average ticket growth has been pressured by the subindustry leading to higher promotions and lower sales in the quarter.  

Signet (SIG) Earnings Miss: Sales Growth Year Over Year

CE’s Global Transaction data was predictive of Signet’s (SIG) sales growth, as the jewelry retailer reported total sales decline of -6.2%, close to CE Implied Reported Growth of -7.3% and in-line with CE’s Vantage forecast of -6.3% against consensus estimates of -4.2%.  As a result of the miss, the stock was down -12.1% post-earnings.

Signet Average Ticket Growth vs. Jewelry Subindustry Year Over Year

High discounting amidst independent and lab-grown jewelers pressured SIG to offer similar prices to retain their shoppers. For the first time this quarter, average ticket growth dropped below the industry average.  Company also cited low engagements in the post COVID dryspell leading to lower sales.

Following Q4’s softer than expected sales, the company guided that “Valentine’s Day shoppers were late and highly value-motivated…as a result, January and early February trend was quite soft.” This indicates the same value-oriented shoppers could likely persist into the next quarter keeping average tickets down.

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using CE Transact US, CE Vision, or other products for jewelry insights, retail data, and other industry data year-round to track trends like these, reach out to schedule a demo.

About the Authors

Katherine Bjorkman is the Director of Insights for the CEIC. Explore more of her insights here and follow her on LinkedIn.

Rachel Zucker is an Insights Analyst for the CEIC. Follow her on LinkedIn.