Signet Jewelers Limited, the world's largest retailer of diamond jewelry, reported lower same-store sales and revenues for the second quarter of fiscal year 2017 ended July 30. Same store sales were down 2.3% on the same quarter last year, while total sales fell 2.6% to $1.4 billion. Total sales at constant exchange rates were down 1.3%. Annual financial guidance was revised downward based on current trends.
On the bright side, Signet reported that the integration with Zale continues to progress well and is "on track to deliver cumulative synergies of $158 million to $175 million by end of this fiscal year and $225 million to $250 million by end of next fiscal year". In addition, Leonard Green & Partners has committed to a $625 million convertible preferred investment in Signet.
Mark Light, Chief Executive Officer of Signet Jewelers said, “We are disappointed by our Q2 results and market conditions have been challenging particularly in the energy-dependent regions. This has contributed to a downward revision in our annual guidance. We achieved some important wins in the second quarter. Select diamond fashion jewelry, bracelets, and earrings sold well. We saw success in a variety of selling channels including outlets, kiosks, and on-line due to improvements in our consumer websites and mobile sites. The Zale integration is running well and synergies remain on target. We remain confident in the medium and long-term prospects of our business." He added that in a "further demonstration of confidence in our company, LGP, one of the world's preeminent retail investors, agreed to purchase a $625 million stake in Signet”.