Signet Jewelers can proceed to increase 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 Money” interview got here after Signet reported second-quarter outcomes earlier within the day. While earnings per share topped estimates and income met expectations, the corporate’s same-store gross sales fell 8.2% yr over yr. Wall Street had been anticipating a 5.3% decline, which can have contributed to the inventory’s 12% tumble Thursday.
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However, Drosos maintained an upbeat outlook for the dad or mum agency of Zales and Kay Jewelers, suggesting near-term headwinds associated to inflation don’t change the long-term story.
“We had … significant share growth last year. Tough economic times are another opportunity for us to grow share, thus our acquisition of Blue Nile, and our continued investment in the business,” mentioned 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. While Signet has been investing in its on-line choices already, Drosos mentioned Thursday that including Blue Nile to the fold will assist Signet attain new corners of the market.
“It gives us a new consumer cohort,” the CEO mentioned. “Blue Nile customers are younger, more affluent, more diverse than we have in the rest of our portfolio, so a great opportunity there.”
Source: www.cnbc.com”