Signet Q2 profit drops with Mother’s Day shift
Hamilton, Bermuda — Signet Jewelers Ltd.’s net income fell to $67.4 million for the quarter ended Aug. 3, down from $70.7 million a year earlier, impacted by the Mother’s Day calendar shift.
Total sales increased 3.1% to $880.2 million, fueled by strong sales at the company’s Kay Jewelers and Jared stores in the United States. Sales were soft at its British chains.
Same-store sales were up 3.6%. At Kay, same-store sales rose 5.8%.
Signet CEO Mike Barnes commented: “We delivered solid second quarter results as expected, driven by same-store sales increases of 3.6% overall and 4.9% in the U.S. led by Kay up 5.8% and Jared up 5.5%. All results were, as previously explained, impacted by the Mother’s Day calendar shift.”
Q2 comp-store sales dip at Michaels
IRVING, Texas — Same-store sales at Michaels Stores decreased 1.3% for the second quarter ended August 3. The dip was due, in part, to a 3.6% decrease in transactions and a 0.4% decrease in deferred custom framing revenue, partially offset by a 2.7% increase in the company’s average ticket.
The company experienced its strongest sales performance during the quarter in home accents and yarn.
Net sales increased 1.3% to $904 million from $892 million during the prior-year quarter. Gross profit for the quarter decreased 0.6% to $337 million from $339 million during the prior-year quarter. Gross profit decreased approximately 70 basis points to 37.3% as a percent of net sales; however, merchandise margin improved by 80 basis points.
Net income for the quarter increased 53.8% to $20 million and as a percent of net sales increased 90 basis points to 2.3%.
During the quarter, the company opened six Michaels stores and relocated four. In addition, Aaron Brothers relocated one store and closed one. The company operated 45 net new Michaels stores at the end of the second quarter compared to the same period last year. The company now operates 1,241 stores, including 1,119 Michaels stores and 122 Aaron Brothers stores.
The specialty retailer of arts, crafts, framing, floral, wall décor and seasonal merchandise for the hobbyist and do-it-yourself home decorator produces 11 exclusive private brands, including Recollections, Studio Decor, Bead Landing, Creatology, Ashland, Celebrate It, Art Minds, Artist’s Loft, Craft Smart, Loops & Threads and Imagin8.
Avon sets sights on global expansion with new hire
NEW YORK — Avon Products appointed Brian Salsberg as SVP of global strategy, effective Sept. 23. Salsberg will report to Sheri McCoy, Avon’s CEO, and will join the company’s executive committee.
Salsberg will be responsible for helping to define and develop the global strategic growth plan for the company. In this role, Salsberg will work in close partnership with McCoy and the senior leadership team to build the company’s capabilities across strategy, market stabilization, innovation and growth. He will also work with the executive committee to expand the company’s capabilities on key issues, including the business model of the future and optimal geographic footprint.
"As we continue our work of turning Avon around, Brian will play a key role in helping to optimize our growth strategy," said McCoy. "Brian’s experience developing and leading innovation strategies with blue-chip global consumer companies in Asia and around the world will make him a great asset, and I am pleased to welcome him to the team."
Salsberg joins Avon from McKinsey & Company, where he was a partner and most recently served as a co-leader of the firm’s consumer and retail practice in Asia. In that role, he advised Asia-based multinational corporations as well as international companies with Asia central to their strategy. Prior to his Asia assignment, Salsberg was a McKinsey partner in North America, where he worked with a number of top consumer companies. Salsberg was an associate at Cravath, Swaine & Moore LLP, the New York-based law firm, before he joined McKinsey.
Salsberg graduated magna cum laude with a bachelor of arts degree from Cornell University and received his juris doctor magna cum laude from Harvard Law School.
Avon is a leading global beauty company with nearly $11 billion in annual revenue. Avon products are sold through more than 6 million active independent Avon sales representatives. Avon products are available in more than 100 countries, and the product line includes color cosmetics, skincare, fragrance, fashion and home products, featuring brand names such as Avon Color, Anew, Skin-So-Soft, Advance Techniques and Mark.