Bermudian-based Signet Jewelers, the world’s largest retailer of diamond jewellery, has reported an operating loss of $100.9 million in the second quarter of fiscal year 2025.

That is down from operating income of $90.2 million in Q2 of FY24.

The change is due to $166 million of non-cash impairment charges, the company said.

Sales for the quarter were $1.5 billion, down $122.6 million or 7.6 per cent compared with Q2 of FY24.

Cash and cash equivalents, at quarter end, were $403.1 million, which compares with $690.2 million in Q2 of FY24.

Signet chief executive Virginia C. Drosos said: “Both the internal and external metrics we track indicate increasing engagements as we head into the back-half of the year. This combined with growth in new high margin fashion merchandise and services gives us confidence in delivering our annual guidance.”

Joan Hilson, chief financial, strategy and services officer, added: “Our strategy of balancing new merchandise, competitive pricing, and sourcing savings drove merchandise margin expansion of 120 basis points and an increase in average transaction value compared to this time last year.

“In addition to continuing this strategy, our fiscal year guidance includes an increase in cost savings, now up to $200 million for the year, which we believe provides for flexibility in a competitive environment in the back-half.”