Signet Jewelers can continue to expand its market share even as the U.S. economy slows and inflation weighs on consumers, CEO Gina Drosos told CNBC on Thursday.
The comments in a “Mad Money” interview came after Signet reported second-quarter results earlier in the day. While earnings per share topped estimates and revenue met expectations, the company’s same-store sales fell 8.2% year over year. Wall Street had been expecting a 5.3% decline, which may have contributed to the stock’s 12% tumble Thursday.
However, Drosos maintained an upbeat outlook for the parent firm of Zales and Kay Jewelers, suggesting near-term headwinds related to inflation do not change the long-term story.
“We had … significant share growth last year. Tough economic times are another opportunity for us to grow share, thus our acquisition of Blue Nile, and our continued investment in the business,” said Drosos, explaining that Signet has focused on using its scale and leaning into products like lab-created diamonds to appeal to value-seeking customers.
Signet announced in early August it was buying online jewelry brand Blue Nile. While Signet has been investing in its online offerings already, Drosos said Thursday that adding Blue Nile to the fold will help Signet reach new corners of the market.
“It gives us a new consumer cohort,” the CEO said. “Blue Nile customers are younger, more affluent, more diverse than we have in the rest of our portfolio, so a great opportunity there.”
