The owner of Kay Jewelers and Zales is cautious on the US consumer this holiday season, even though the retailer beat Wall Street’s expectations in the most recent quarter.
Designs by Kay Jewelers – Zales
It’s a sign that despite solid Black Friday sales, there are still weeks to go to get a full sense of how the most important shopping time of the year pans out for retailers.
For the current holiday period, Signet Jewelers Ltd.’s management has been “conservative as we think about the quarter just because we know the consumer has a lot going on,” chief executive officer J.K. Symancyk said in an interview with Bloomberg News.
Signet narrowed its full-year guidance on Tuesday after reporting better-than-expected quarterly sales and profit for the three months ended November 1. “What we’ve effectively done is tighten the guidance range as we’ve gone through the year and moved toward the high side,” Symancyk said.
Black Friday isn’t a major sales event for most of Signet’s jewellery brands, which tend to sell more closer to Christmas. That’s in part because engagements pick up during the holiday season and through Valentine’s Day. Wedding-related jewellery typically makes up more than half of Signet’s sales.
