Signet Jeweler, the world's largest supplier of jewelery, in the second fiscal quarter of 2017 (end of the quarter - July 30, 2016) reduced the total sales over this year by 2.6%, to $ 1.4 billion, announced the company on Thursday.
According to report, sales in some stores were down 2.3%. In general, decline has occurred in countries that produce energy. Electronic sales increased by 5.6%, to $69.6 million. 5.1% of them occurred to total sales. Company has been compelled to change plans and financial forecasts for the next quarter and next year, taking into account the relevance of market sentiments. Despite the failing quarter results, the president of Signet Mark Light said that several areas have shown good results. For example, the sale of jewelry, such as bracelets and earrings, was at the high level. Also, success has been recorded in the online sales of outlets. Currently it is ending the period of integration with Zale company, which was bought for $1.4 billion in early 2014. Synergy of integrating is high, the mark is increased from $158 million to $175 till end of 2017 fiscal year.
Company reinforces its confidence in future by repurchase 4% of stocks from market during the 2nd quarter. The largest investor in retail sales, Leonard Green & Partners Fund, ready to buy Signet shares worth of $625 million.