In a Thursday interview with CNBC’s Jim Cramer, Signet Jewelers CEO Gina Drosos described the mood of consumers looking to buy engagement rings, saying demand is there, but many are more judicious when picking out diamonds.
“We thought that engagements might come back a little faster, but there is a cautious consumer,” Drosos said. “So, what we’re seeing is that there are more couples that at any time in the last several years who are ready to get engaged, but they may be just taking a little bit longer as they’re shopping.”
According to Drosos, customers are visiting the company’s websites 15% more often than they were a year ago to browse and carefully search for the right item. Signet owns a variety of jewelry retailers including Jared, Zales, Kay Jewelers and Diamonds Direct.
She also said the company’s Covid engagement trough seems to have passed, with “positive engagement units” in the quarter and in data the company has collected from Google search and Instagram. She added that “newness” accelerated during the quarter, and customers are responding well to new products like sculpted gold. On the conference call, Drosos said Signet saw a 50% increase in revenue from new merchandise.
“Gold prices are high, but people still love a big look,” she said. “And so, we have a technology called sculpted gold, which has a hollow center so you get a very big look without the heaviness and without the cost.”
Signet reported a mixed quarter before Thursday’s open, with management optimistic about the momentum of same-store sales. Shares had jumped more than 11% by close.
