(IDEX Online) – Signet Jewelers reported total sales were $1.5 billion, up 5.5%, in the 13 weeks ended May 5, its fiscal 2019 first quarter.<?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>
Total same store sales performance was down 0.1% versus the prior year quarter, however.
The firm reported a net loss of $496.6 million in the quarter, compared with a profit of $78.5 million in the year-earlier period due to a non-cash impairment charge related to goodwill and intangibles, a loss recognized on held for sale non-prime receivables and restructuring charges, the company said.
However, its shares rose strongly with the market happy with what it sees as stabilizing sales after two years of declines.
The increase in total sales of $77.2 million in the quarter was positively impacted by the addition of James Allen which was acquired last September, a calendar shift due to the 53rd week in Fiscal 2018, the application of new revenue recognition accounting standards, and foreign exchange translation benefit.
These factors were partially offset by the impact of net store closures and same store sales performance.
Signet reported that eCommerce sales in the first quarter including James Allen were $146.5 million, up 80.9% on a reported basis. James Allen sales were $53.3 million in the quarter up 29.4% compared to the prior year quarter. Online sales increased across all segments and accounted for 9.9% of first quarter sales, up from 5.8% of total sales in the prior year first quarter.
“As we begin to implement our Signet Path to Brilliance transformation plan, we remain...