Signet Jewelers Ltd reported a 1.9 per cent decline in sales during the second quarter of its fiscal year amid macroeconomic uncertainties that are impacting consumer spending.

Revenues reached US$1.75 billion during the quarter in review, ending July 30, 2022. The retailer also reported a 35 per cent drop in net income to US$145.4 million from US$224.6 million in 2021.

According to Signet, the market continues to face challenges such as inflation, shifts in spending away from jewellery products and cessation of government stimulus programmes, among others. 

Signet expects third-quarter sales to reach US$1.46 billion to US$1.49 billion, adding that its outlook “includes a level of consumer pressure, including inflation and the impact of stimulus, similar to what is currently being experienced.” 

“Signet continues to anticipate some shift of consumer discretionary spending away from the jewellery category reflecting pent-up demand for experience-oriented categories during the year,” remarked Signet.

The company reaffirmed its full-year fiscal 2023 revenue guidance of US$7.6 billion to US$7.7 billion.