Winter Weather, Declining Engagements Weigh on Signet’s Results
The jewelry giant’s full-year sales were essentially flat, brought down by fourth-quarter declines.

The jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared, and Kay Jewelers, remains hopeful for its current fiscal year, planning up to $200 million in capital investments.
“We delivered on our three key priorities of growing market share, achieving an annual double-digit non-GAAP operating margin, and leveraging capital allocation to drive shareholder returns despite headwinds and volatility throughout the year," said CEO Virginia C. Drosos.
Here are five things to know about its recent earnings report, released Thursday morning.
Signet had a solid year, but a weak fourth quarter.
For the quarter ending Jan. 28, Signet’s sales totaled $2.67 billion, down 5 percent year-over-year. Same-store sales were down 9 percent.
Sales growth in the quarter was negatively impacted by inclement weather in the United States just before the Christmas season, the company said.
Cross-country Winter Storm Elliott brought hazardous weather from Dec. 21-26, cutting into some of the biggest shopping days of the holiday season.
“During three of the highest revenue days of the year, Winter Storm Elliot caused one-third of our stores to close or operate at reduced hours. Consumers in three-fourths of our trade areas were under a travel advisory warning,” said Drosos on an earnings call Thursday morning.
“These days are eight times more valuable than an average shopping day in January, for example, in a way that is unique to jewelry,” she said, adding that last-minute shoppers are crucial, typically spending more than average and shopping in person.
In the U.K. market, labor strikes and a weakened British pound took a toll, said Signet.
The jeweler was also up against challenging comps, with government benefit programs and its marketing initiatives bolstering Q4 sales in the previous fiscal year.
Sales were up 24 percent compared with pre-pandemic fiscal 2020, which ended Feb. 1, 2020.
The fourth quarter in fiscal 2023 also marked the first to include the integration of recently acquired Blue Nile.
“Blue Nile contributed to our total growth and performed ahead of sales and profit expectations in its first full quarter as part of our portfolio,” said Drosos.
In North America, Signet’s banners include Zales and Kay Jewelers as well as Peoples in Canada.
Signet’s fourth-quarter sales in the region totaled $2.5 billion, down 9 percent year-over-year, but up 28 percent compared to 2020.
Same-store sales were down 9 percent, but up 20 percent compared to 2020, which Signet attributed to higher transaction values being offset by fewer transactions year-over-year.
Signet’s international banners include Ernest Jones and H. Samuels.
International sales totaled $153.2 million, down 16 percent year over-year and down 18 percent compared with 2020. Same-store sales were down 7 percent in the quarter.
For the full year, sales totaled $7.8 billion, up 0.2 percent year-over-year and up 28 percent compared with 2020. Same-store sales were down 6 percent.
In North America, full-year sales totaled $7.29 billion, up 0.3 percent, while same-store sales fell 7 percent.
Internationally, full-year sales were $470.1 million, down 5 percent year-over-year, while same-store sales fell 8 percent.
Engagement ring sales struggled, while fashion jewelry shined.
Last year was the year of the wedding, and Signet posted strong growth in sales of wedding bands and other bridal jewelry.
However, sales of engagement rings were down by low double digits for the year, a pattern Signet expects to repeat in fiscal 2024, said Drosos.
The shift is temporary and COVID-driven, she said, noting the pandemic impacted the formation of new relationships.
Signet’s data found engagements occur typically within 3 years of a couple dating, so a rebound is expected to begin at the end of the next fiscal year.
“We expect FY24 to be the trough of engagements with FY25 seeing a return to growth and FY26 returning to normalized levels,” she said.
Bridal, including engagement, has accounted for 47 to 49 percent of Signet’s merchandise sales over the last five years, said Signet.
In anticipation of the decline in engagement ring sales, Drosos said the company heightened its focus on sentimental gifting and self-purchasing.
Fashion drove nearly 36 percent of growth since pre-pandemic, she said.
“We continue to see strength at higher price points overall. The strength of our fashion assortment continues, helping to partially offset the expected decline in bridal.”
Signet is updating its store fleet.
Signet announced plans to spend up to $200 million in capital investments, with half of that amount going toward its store network.
The funds will go toward expanding new stores and repositioning or closing low-performing stores.
Signet has closed more than 1,000 underperforming stores in the last six years, said Drosos.
There also will be sustainability investments, like LED lighting and modern HVAC systems, as well as cosmetic upgrades for stores in key markets.
Signet will introduce new accessible luxury concepts at Jared, shifting to higher price points.
It also will accelerate recently acquired Diamond Direct’s growth, doubling the pace of store openings and leaning into the “mega-store model.”
The company also will bring new modular concepts to Kay Jewelers after a successful pilot, which would mean lower inventory and build-out costs compared with a more traditional store.
“Given our breadth, we’re able to serve accessible luxury customers, digitally native customers, and value-conscious customers in a scaled way that no other company in our industry can,” said Drosos.
Looking ahead, Signet remains confident despite strong macroeconomic headwinds.
Signet has begun its new fiscal year with cautious confidence.
For the first quarter, sales are expected to be $1.62 billion to $1.65 billion.
Full-year sales are projected to be $7.67 billion to $7.84 billion, notably coming in below fiscal 2023.
Signet said annual U.S. jewelry industry revenue is expected to be down mid-single digits, adding that its guidance accounts for market share gains against the industry’s performance range.
“With the slowing economy and continued inflationary pressures we do not expect to see a rebound in the lower price point consumer in the coming year,” said Signet.
The company also expects to see a continued shift of discretionary spending away from the jewelry category, due in part to declining consumer confidence and “pent-up demand” for experiences, as well as inflation and other macroeconomic factors.
Signet has reshuffled its executives.
Signet started off 2023 by shaking up its executive team.
Jamie Singleton, formerly president of Zales, Kay, and Peoples, was named group president and chief consumer officer.
Her former title of chief marketing officer was given to Tony Rogers.
Bill Brace, formerly president of Jared, has been promoted to president of Kay Jewelers.
Claudia Cividino was named the new president of Jared.
Kecia Caffie, formerly the president of Banter by Piercing Pagoda, is now president of Zales.
Amy Robinson took on the role of president of Banter by Piercing Pagoda.
Stacee Johnson Williams, formerly senior vice president of Kay, Zales and Peoples, was promoted to managing director of Peoples and senior vice president of merchandise planning and inventory at Kay.
Read a full list of the executive changes here.
The Latest

Pritesh Patel, the lab’s chief operating officer, will take over as president and CEO of GIA.

National Jeweler and Jewelers of America discuss the standout jewelry trends and biggest news to emerge from the shows this year.

Signatories to the “Luanda Accord” committed to allocating 1 percent of annual diamond revenue to the Natural Diamond Council.

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

The winning designs captured the “Radiance” theme.


Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

The singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

The bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.

The heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.

The 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week.

The Starboard Cruises SVP discusses who is shopping for jewelry on ships, how much they’re spending, and why brands should get on board.

The historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.

To mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.

The gemstone is the third most valuable ruby to come out of the Montepuez mine, Gemfields said.

Founder and longtime CEO Ben Smithee will stay with the agency, transitioning into the role of founding partner and strategic advisor.

Associate Editor Natalie Francisco shares 20 of her favorite pieces from the jewelry collections that debuted at Couture.

If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.

The top lot was a colorless Graff diamond, followed by a Burmese ruby necklace by Marcus & Co.

Gizzi, who has been in the industry since 2001, is now Jewelers of America’s senior vice president of corporate affairs.

Luca de Meo, a 30-year veteran of the auto industry, will succeed longtime CEO François-Henri Pinault.

Following visits to Vegas and New York, Botswana’s minerals minister sat down with Michelle Graff to discuss the state of the diamond market.

The “Your Love Has the Perfect Ring” campaign showcases the strength of love and need for inclusivity and representation, the jeweler said.

The former De Beers executive is the jewelry house’s new director of high jewelry for the Americas.

The New York Liberty forward is the first athlete to represent the Brooklyn-based jewelry brand.

Take a bite out of the 14-karat yellow gold “Fruits of Love Pear” earrings featuring peridots, diamond stems, and tsavorite leaves.

The one-day virtual event will feature speakers from De Beers, GIA, and Gemworld International.