Signet Jeweler's New Innovations, Plans for 2024 & Beyond

Signet Jewelers faced a tough second quarter, reporting a 7.6% year-over-year decline in sales. While this represents some improvement over the prior quarter’s 9.4% drop, the overall trend reflects the ongoing challenges in the retail jewelry market. For the first half of fiscal 2025, ending August 3, total revenue dropped by 8.5% to $3 billion, with adjusted EBITDA shrinking from $320 million to $218 million compared to the same period last year.

Despite these hurdles, CEO Gina Drosos remains confident in the company’s ability to turn things around. She points to growth opportunities within Signet’s diverse portfolio of brands, which includes Jared, Diamonds Direct, Zales, Kay Jewelers, Blue Nile, and James Allen.

Across its 2,700 retail stores and integrated e-commerce platforms, the company is seeing positive momentum, especially in bridal jewelry, a category that accounts for nearly half of its sales.

One key area of progress is the introduction of new product designs, which drove a 50% year-over-year increase in sales during the second quarter and now account for 25% of total revenue. Drosos attributes this success to Signet’s vertically integrated model and ability to deliver value through efficient inventory management, which turns over at twice the industry average. This ensures that customers have access to fresh, appealing merchandise at competitive price points.

The broader jewelry market continues to face challenges, including a 6% decline in 2023, with mixed results so far this year. However, lab-grown diamonds have emerged as a game-changer, appealing to budget-conscious shoppers and contributing to higher average transaction values. Signet’s strategic focus on guiding customers toward these alternatives has bolstered its competitive position.

Bridal jewelry is showing early signs of recovery, aided by Signet’s proprietary tools that track key milestones in couples’ relationships. Engagement-related searches are on the rise, and sales in this category began to improve in the early third quarter. These trends suggest that a broader rebound in the bridal segment may be on the horizon.

Beyond products, Signet continues to expand its service offerings, such as extended warranties, repair programs, and financing options. Its Vault Rewards loyalty program, which now boasts over 5 million members, has proven effective in driving repeat purchases and increasing transaction values. With services offering higher margins, they represent a $1 billion growth opportunity for the company.

Looking ahead, Signet is focused on achieving $9 billion in annual revenue over the next three to five years. While the path forward requires addressing current market challenges, the company’s investments in customer experience, technology, and product innovation position it to grow its market share and capitalize on a recovering jewelry industry.

By staying close to its customers and maintaining operational agility, Signet is poised for long-term success.