Signet CEO Gina Drosos avoids Covid supply chain issues

Signet Jewelers CEO Gina Drosos told CNBC on Wednesday that the company was able to avoid key Covid-related supply chain challenges through advanced planning.

“We came out ahead. … We got all of our orders a month earlier than normal this year,” Drosos said in an interview with Jim Cramer on “Mad Money.” “The advantage is that it allows our suppliers to plan our production throughout the summer in complete safety.”

Owner Zales, Jared and Kay Jewelers has already received more than 50% of its holiday orders, according to Drosos, who has been CEO of Signet since 2017.

“We’re distributing this to stores immediately. It’s important because I think Christmas shopping is going to happen this year earlier than ever,” Drosos said. “The savvy first buyer is already on the lookout for bargains, great gifts.”

Supply chains for many industries have been disrupted during the coronavirus pandemic. Shipping delays and inventory shortages have occurred, contributing to inflationary pressures felt in the US economy.

Drosos noted that some retail experts have expressed concerns about product availability during the holiday shopping season. However, “at Signet, we will have stock,” she says.

Signet released its latest quarterly results last week, beating Wall Street’s high and low expectations. Earnings per share of $3.57 were significantly better than forecast of $1.69, according to Refinitiv, while sales of $1.79 billion beat forecast of $1.64 billion.

“I think we head into halftime with more momentum and optimism than we had even before the results call,” Drosos told Cramer.

About the author