There was, for quite some time, some concern over the marriage rate in the United States. A variety of cultural factors directly impacted the field, making marriages even harder to come by than normal. However, recently released results from jewelry retailer Signet Jewelers (NYSE:SIG) may change that perception, as apparently, engagements are back on.
Or at least, were, in Signet’s second quarter. Signet turned in wins for both earnings and revenue, though revenue was down 8% against the second quarter of 2022. Signet also revealed that same-store sales were down 12% against the second quarter of 2022 as well. That sounds like bad news, but Signet’s projections saved the day, as forecasts look to be either in line with analysts or slightly above projections. Signet even went so far as to reaffirm the guidance, doubling down on those earlier projections and saying that engagements are up.
In fact, Signet went so far as to project that the number of engagements would continue to go up for the next several months. Word from CEO Virginia Drosos pointed to the handicap COVID-19 put on dating as a big reason why engagements have been down recently. However, now that that’s done—at least for now, a point which is less than clear given word that lockdowns may start coming back in some places due to modest upticks in the newest variants—engagements should begin a “multiyear recovery.” Ongoing consumer softness and uncertainty, however, don’t exactly bode well for shiny rock purchases.
Analysts are likewise hesitant, declaring Signet Jewelers stock a consensus Hold, with two Buy ratings, four Holds, and one Sell. Indeed, today’s pricing action has put Signet Jewelers stock in a bind, with the rise in share prices resulting in a fractional downside risk alongside the average price target of $75.33.