Signet Jewelers continues to grow 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 beat estimates and sales met expectations, the company’s same-store sales fell 8.2% year over year. Wall Street had expected a 5.3% decline, which may have contributed to the stock’s 12% plunge on Thursday.
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However, Drosos maintained a bullish outlook for the parent company of Zales and Kay Jewelers, suggesting that near-term headwinds related to inflation are not changing the long-term trajectory.
“We have had… significant stock growth over the past year. Difficult economic times are another opportunity for us to grow our stock, hence our acquisition of Blue Nile and our continued investment in the business,” said Drosos, explaining that Signet focused on leveraging its size and focus on products like lab-created diamonds to appeal to price-conscious consumers.
Signet announced in early August that it was buying online jewelry brand Blue Nile. While Signet has already invested in its online offerings, Drosos said Thursday the addition of Blue Nile will help Signet reach new corners of the market.
“It gives us a new consumer cohort,” said the CEO. “Blue Nile’s clients are younger, wealthier and more diverse than the rest of our portfolio, so it’s a great opportunity.”
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