Bermudian-based Signet Jewelers Limited, the world's largest retailer of diamond jewellery, has reported a dramatic increase in GAAP operating income for the first quarter of fiscal year 2024.

Announcing results for the 13 weeks ended April 29, Signet said GAAP operating income was $101.7 million, up from $0.2 million in Q1 of FY23.

It said Q1 of FY23 included $190 million for settlement of a previously disclosed litigation matter.

Non-GAAP operating income in the quarter was $106.5 million, compared with $194.6 million in Q1 of FY23.

Total sales were $1.7 billion, down $170.3 million or 9.3 per cent (down 8.7 per cent on a constant currency basis) to Q1 of FY23.

Signet chief executive Virginia C. Drosos said: "Our Signet team delivered our revenue and bottom-line commitments in Q1 despite macroeconomic headwinds that worsened late in the quarter. In line with our predictions, there were fewer engagements in the quarter resulting from Covid’s disruption of dating three years ago.

"As we look to the balance of the year, we're leaning in to leverage our differentiated capabilities, widen our competitive advantages and drive market share gains.

“We are proactively addressing the dynamic retail climate, leveraging our team's agility and flexible operating model to raise our cost savings target by up to $150 million while maintaining strategic investments."

Joan Hilson, chief financial, strategy and services officer, said: "Our updated fiscal 2024 guidance reflects a recent deceleration of trends that have persisted into the second quarter, including a softer-than-expected Mother's Day, increasing macro-economic pressures on consumers at more price points, and deeper competitive discounting.

"We built our fortressed balance sheet to strategically invest during periods of disruption. Our growing capabilities enable Signet to navigate this challenging macro environment, position us for success when the bridal recovery begins and maintain strong margins while continuing to return capital to shareholders."