Signet’s Q4 Same-Store Sales Sink 10%
The jewelry giant also posted a double-digit drop in same-store sales for the full year.
The retailer, which is the parent company of several large jewelry store chains including Zales, Jared, and Kay Jewelers, has been hit by the lull in engagements following the COVID-19 pandemic, but said it expects to see incremental improvements in the coming years.
“We’re seeing engagements recover as we expected they would,” CEO Virginia C. Drosos said on an earnings call Wednesday morning, noting there will be a “gradual, incremental improvement in trends over the next three years.”
She predicted U.S. engagement rates in fiscal 2025 will increase 5 to 10 percent compared with fiscal 2024, though they are off to a slow start so far.
Engagements were down low-to-mid single digits in Q1 of this fiscal year, Chief Financial Officer Joan Hilson said on the call Wednesday.
The decline in the bridal market took a toll on sales.
For the quarter ending Feb. 3, Signet’s sales totaled $2.5 billion, down 6 percent year-over-year. Same-store sales were down 10 percent.
The company noted it lost approximately $25 million in sales due to its recent sale of 15 Ernest Jones stores to Watches of Switzerland.
For the full year, sales totaled $7.2 billion, down 9 percent year-over-year. Same-store sales were down 12 percent.
In addition to soft engagement ring sales, the company had a slow holiday season.
“As anticipated, we saw a late shopper this holiday,” said Drosos, noting customers were holding out for deals, particularly since there was an extra weekend in December.
She also said the industry was “overstocked,” leading to a lot of markdowns.
It was a similar situation for Valentine’s Day, Drosos said, with “value-motivated” shoppers heading to stores late.
“We believe consumers will remain focused on value this year,” she said.
Same-store sales, however, are expected to improve through fiscal 2025, Drosos said, driven in part by engagement recovery, the acquisition of new customers, and new products.
Looking to its sales in North America, where banners include Zales and Kay Jewelers as well as Peoples in Canada, the company struggled with technical difficulties.
Signet’s fourth-quarter sales in the region totaled $2.4 billion, down 6 percent year-over-year.
Same-store sales were down 10 percent, due in part to an integration issue at its digital banners (James Allen and Blue Nile), which led to fulfillment issues in the second half of the quarter.
The company is working to resolve these issues, said Drosos, but they have continued into fiscal 2025.
For the full-year, North American sales totaled $6.7 billion, down 8 percent year-over-year, while same-store sales fell 12 percent.
Signet’s international banners include Ernest Jones and H. Samuels.
International sales in the fourth quarter totaled $141.7 million, down 8 percent year over-year. Same-store sales were down 1 percent in the quarter.
For the full year, international sales totaled $430.7 million, down 8 percent year-over-year. Same-store sales were down 5 percent.
The company closed 30 Ernest Jones locations as it looks to “right-size” its footprint.
Though engagement ring sales struggled, the company found success in low-priced fashion jewelry, said Drosos.
Banter (formerly Piercing Pagoda) had the strongest same-store sales in the United States in Q4, coming in nearly flat, while Peoples in Canada and H. Samuels in the U.K. saw positive holiday same- store sales.
Signet’s services category was also a highlight, said Drosos, outperforming its merchandise.
The category will remain a key area of growth this fiscal year, she said, as it explores B2B services with independents and insurance companies.
As for its store fleet, the company closed 114 locations, mainly low-performing mall-based stores and U.K. locations, bringing its total to around 2,700 locations.
The company plans to invest in 20 to 30 new stores as well as nearly 300 renovations, focusing on Kay, Jared, and Diamonds Direct locations, as well as its e-commerce capabilities and digital and technology advancements, backed by around $160 million to $180 million in planned capital expenditures.
Looking ahead, Signet expects first-quarter sales to be $1.47 billion to $1.53 billion, with same-store sales down between 7 and 11 percent.
Full-year sales are projected to be $6.66 billion to $7.02 billion, with same-store sales down 5 percent to up less than 1 percent.
The Latest
The “Moments” social media campaign emphasizes the emotional ties between natural diamonds and life’s special milestones.
The versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
Letsile Tebogo will help to promote natural diamonds and the good they have done for his country.
The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
The showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
“My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
The seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
Monishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
Jemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
Quinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
The catalog is 48 pages and features more than 100 styles.
The one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
The gemstone show is slated to take place at the Scottish Rite Cathedral.
From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
The suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.
The online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.
The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.
Roy Safit took over the role on Jan. 1.
Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.
The company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.
Now in its fourth year, the program is expanding to include a list of “20 Under 40” for jewelry suppliers.
Core retail sales during the 2024 holiday season surpassed the National Retail Federation’s forecast.
The “Reach for Life” collection uses feather and arrow motifs to invite growth and inner curiosity.
Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.