Financials

Signet Jewelers’ Q3 Sales Slide Amid Slow Engagement Ring Sales, Tech Issues

FinancialsDec 05, 2024

Signet Jewelers’ Q3 Sales Slide Amid Slow Engagement Ring Sales, Tech Issues

The jewelry retailer addressed the lab-grown diamond “disruption,” the price of gold, and its holiday weekend performance.

Gold rings
A selection of jewelry available at Signet Jewelers-owned banner Kay Jewelers. Signet Jewelers posted a 3 percent year-over-year decline in sales in its third quarter.
Akron, Ohio—Signet Jewelers Ltd. sales slipped in the third quarter as its engagement ring sales remained stalled and digital banners James Allen and Blue Nile struggled with technical issues.

The jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared, and Kay Jewelers, named a new CEO last month, former PetSmart CEO J .K. Symancyk.

“After a month at Signet, I’m energized by our opportunity to accelerate growth. Our strong brands, deep consumer focus, and talented team provide a powerful foundation to strategically evolve and transform our business,” Symancyk said on his first Signet earnings call Thursday morning.

“I recognize we have some challenges. Engagement incidents are somewhat less predictable on a short-term basis, and, as you know, lab-created diamonds have disrupted the industry, but also create opportunities in the fashion category as well as increase the breadth of assortment within bridal.”

For the quarter ending Nov. 2, Signet’s overall sales totaled $1.35 billion, down 3 percent year-over-year. Same-store sales fell 1 percent.

Both metrics were within its previous Q3 guidance.

In the first nine months of the fiscal year, sales totaled $4.35 billion, down 7 percent year-over-year. Same-store sales fell 5 percent.

Signet continued to see lower-than-expected engagement ring sales, but reiterated its prediction that the number of engagements will rise in the near future following a post-pandemic slump.

Its current guidance for the full fiscal year assumes engagements will increase as much as 5 percent this year.

On the call, Signet Chief Financial, Strategy and Services Officer Joan Hilson said, “Engagement units are recovering, although slower than we expected.”

There was a 2 percent dip in engagement ring sales in the third quarter, but Hilson noted that is still an improvement over recent quarters.

Excluding digital banners James Allen and Blue Nile, unit sales of engagement rings at Signet’s stores in North America were up about 4 percent in Q3, also an improvement.

(Digital banners refer to the brands in Signet’s portfolio that operate mainly or entirely online.)

“As we look forward, we expect that bridal in the fourth quarter will continue to be positive, albeit with the digital banners’ impact.”

The company also noted high single-digit comps over the Black Friday to Cyber Monday period, which will be accounted for in Q4.

The tech issues at James Allen and Blue Nile, continued in Q3, though the company said it has taken steps to resolve them.

“We saw with the timing of re-platforming being completed later in the third quarter, as well as the aided search upgrades that we put into play, they negatively impacted performance,” said Hilson.

Re-platforming the banners means moving their digital infrastructure from one platform to another.

The issues, which impacted traffic and search placement, are expected to have an impact on the fourth quarter as well.

“[The digital banners] have a high penetration of bridal and engagement in their business, therefore it’s impacting our overall engagement performance,” said Hilson.

In an October filing with the Securities and Exchange Commission, Signet announced that Oded Edelman, who headed its digital banners for the past seven years, would be leaving the company. 

Corinne Bentzen was named as his replacement, effective Nov. 4.   

Hilson also addressed the rising cost of gold and its impact on the company.

“With respect to gold, we see little price resistance on gold. The consumer understands the value and how gold is priced in the market.”

She said in response to rising gold costs, Signet is able to adjust pricing or “value engineer” products to keep them within a certain price point.

Gold was $2,671/ounce as of press time.

Hilson also noted that its fashion jewelry offerings are doing well.

“Our fashion assortment is providing us the ability to manage our way through what may be a bit of a choppy environment related to bridal ATV (average transaction value).”

Signet’s services category also continued to perform well, up 2 percent, and outpace merchandise.

 Related stories will be right here … 

In North America, Signet’s banners include Zales, Jared, and Kay Jewelers, as well as Peoples in Canada.

Signet’s third-quarter sales in the region totaled $1.3 billion, down 2 percent year-over-year due to a total ATV that was flat year-over-year on a lower number of transactions.

Same-store sales in the region were down 1 percent.

It’s been a busy year for Signet’s North American banners.

Kay Jewelers underwent a rebrand, while Zales celebrates its 100th anniversary, and Rocksbox opened a pop-up shop in San Francisco.

Signet announced a partnership with De Beers back in May, joining forces to promote natural diamonds. The campaign, “Worth the Wait,” debuted in October.

Internationally, Signet’s banners include Ernest Jones and H. Samuel.

International quarterly sales totaled $83.3 million, down 12 percent year-over-year (16 percent on a constant currency basis), due to a 13 percent decrease in ATV driven by the sale of some of its watch locations to Watches of Switzerland as well as a lower number of transactions.

International same-store sales were up 2 percent in the quarter.

Hilson, whose role expanded following Gina Drosos’ retirement, shared insights on the quarter and the year ahead.

Signet lowered the high end of its guidance for the full fiscal year while raising the low end. 

The company now expects fiscal 2025 sales of $6.74 billion to $6.81 billion, compared with its prior guidance of $6.66 billion to $7.02 billion.

Regarding the change in guidance, Hilson pointed to an expected small decline in sales at its core banners in Q4 and noted a slight impact related to hurricane season but said the tech issues that are impacting its digital banners are the main driver.

The company is also factoring in a leadership transition cost of $7 million.

Same-store sales guidance was also adjusted. Signet now expects a decrease of 2 to 3 percent, compared with its prior guidance of down 5 percent to up 1 percent.

In the fourth quarter, which includes the winter holidays, the company expects sales between $2.38 billion and $2.46 billion, with same-store sales between flat and a 3 percent increase.

“As we look forward into next fiscal year, I believe there are opportunities to evolve our strategy to further fuel customer and shareholder value. I look forward to sharing more details on this work and our plans in the coming months,” Symancyk said in the company’s Q3 earnings press release. 

The Latest

Stock image of people shopping in a mall
SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRF

The National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.

Tallulah Willis’ Engagement Ring
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With Magic

The 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.

158.2-carat yellow diamond from Diavik
SourcingApr 03, 2025
Canadian Mine Produces 158-Carat Yellow Diamond

Rio Tinto unearthed the diamond at its Diavik mine in Canada’s Northwest Territories.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Buccellati Naturalia exhibition
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in Milan

The multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.

Weekly QuizApr 03, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Jewelers of America logo
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on Tariffs

The virtual event will take place April 7 at 3 p.m.

Bea Bongiasca Animali Tarallo Collection Royal Blue Tang Fish “Dory”
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a Zoo

The pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Neiman Marcus Downtown Dallas store
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For Now

Parent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.

Natural color diamonds on display at Smithsonian National Museum of History
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C.

Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.

Punchmark
Events & AwardsApr 02, 2025
Punchmark to Host Client Workshop

The educational event will take place in Charlotte, North Carolina, this May.

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy