On a constant currency basis, the decline was 8.2%. The company’s Q2 net income dropped 48% to $75.1 million from $145.4 million a year earlier. Sales in North America amounted to $1.5 billion, representing a 7.1% decline compared to Q2 of fiscal 2023.
The company is optimistic about the anticipated multi-year recovery in engagement jewellery, scheduled to commence in the fourth quarter of this year, and further rebound over the next three years. Bridal overall, inclusive of engagements, historically represents nearly 50% of Signet's merchandise sales.
Virginia Drosos, Signet's Chief Executive Officer, stated, “Our team's focus on the consumer enabled us to exceed our revenue and bottom-line commitments in the quarter while also advancing our strategic priorities. We remain confident in our ability to achieve our Fiscal 2024 guidance. Our reimagined merchandise assortment and upcoming holiday season initiatives will leverage our investments in innovation, digital capabilities, and data analytics to widen our competitive advantages. We believe the upcoming multi-year recovery of engagements remains on track to begin in the fourth quarter of this year.”
Joan Hilson, Chief Financial, Strategy and Services Officer, said, “We expanded our margin accretive Services capacity this quarter, advancing our commitment to the jewellery craft, B2B capabilities, and bringing more repairs in house. This network optimisation is enabled through integration of the Blue Nile Seattle facility and the acquisition of SJR National Repair. Our cost savings initiatives of $225 to $250 million are on track, and our core inventory is healthy at 20% below pre-pandemic levels."
In Fiscal 2024, Signet anticipates total sales of $7.1 to $7.3 billion, and expects operating income to be in the range of $635-675 million.