EditorsNov 22, 2024
Out & About: Inside the CD Peacock MansionStep inside the nearly 21,000-square-foot suburban Chicago jewelry store with Editor-in-Chief Michelle Graff.
FinancialsJun 09, 2020
Signet Sales Sink 40% Amid Pandemic-Induced Store Shutdowns
COVID-19 forced Signet to take a hard look at its fleet of physical stores and upgrade its online capabilities.
While all its stores were closed in the first quarter, Signet-owned chain Jared the Galleria of Jewelry launched virtual weddings. CEO Gina Drosos said that within 72 hours of the offer’s launch, 500 people signed up to get married online.
Akron, Ohio—Signet Jewelers Ltd. CEO Gina Drosos started the company’s earnings call Tuesday morning with a statement about the civil unrest sweeping the nation following the murders of George Floyd and Breonna Taylor.
“While these are truly unprecedented times, from the COVID-19 pandemic to economic uncertainty, nothing has matched the pain and heartache of yet another brutal murder of an unarmed person of color,” she said.
“This pattern of discrimination and violence must stop now. Racism has no place in our world, and certainly not in a country dedicated to protecting life, liberty and the pursuit of happiness for all.”
Drosos made her company’s stance public in a LinkedIn post last week, and Signet has made a $100,000 donation to the NAACP Legal Defense and Educational Fund.
Drosos said Tuesday she is hosting an open mic town hall-style meeting with Signet team members next week. Called Signet Speaks Out, it will be a “frank discussion on race” intended to give the retailer ideas for actions it can take within the company, in communities and in the jewelry industry.
“At Signet, our mission is to ‘Celebrate Life and Express Love,’ and we are committed to making this true for all people,” Drosos said.
Signet started the year with “strong momentum,” recording “solid” year-over-year comps at the end of February, with a low-single-digit increase in same-store sales.
Then COVID-19 hit and the retailer made the decision to close all its stores in North America, furloughing the majority of store and support center employees and cutting executive salaries, in late March.
Signet ended the first quarter, which ended May 2, with a 39 percent year-over-year decline in same-store sales, while total sales dropped 40 percent to $852.1 million compared with $1.43 billion last year.
E-commerce sales were up 7 percent to $164.7 million including the impact of the temporary closure of the James Allen distribution center in New York, the epicenter of the COVID-19 pandemic.
Excluding the shutdown, Signet saw online sales climb 18 percent, including a 55 percent increase in April.
In North America, same-store sales were down 39 percent. Average transaction value declined 7 percent while the number of transactions was down 35 percent.
Payment plan participation rate, including both credit and leasing sales, for Q1 was 43 percent versus 50 percent in the first quarter last year, reflecting both the greater proportion of online sales and macroeconomic conditions.
Signet
recorded a loss of $291 million in the quarter.
RELATED CONTENT: 7 Tips for Keeping Your Online Business Rolling
As it did with so many retailers, the COVID-19 pandemic forced Signet to take a hard look at its fleet of physical stores while also upgrading its online capabilities.
During the call, Drosos cited a quote from a “sage” mentor of hers—“Never waste a crisis”—and ran through a list of the changes Signet is making.
The retailer, which closed 13 percent of its stores last year, moving out of Class B malls and shuttering its regional banners, will not reopen at least 150 stores in North America and 80 in Europe following the pandemic.
In addition, Signet will close an additional 150 stores this fiscal year, resulting in a 20 percent reduction in its physical footprint.
As of Feb. 1, Signet operated a total of 3,208 stores, 2,757 in North America and 451 in the U.K.
Drosos said in deciding which locations to close, the company mapped the country in a Greenfield analysis—a method of determining the optimal number of store locations based on demand—to determine which markets warrant one store, two stores, etc.
“We’ve used that customer-first lens to decide what our future store footprint should look like,” she said.
Online in Q1, Signet launched virtual consultations, conducting over 100,000 in the period, while also making progress on targeted marketing efforts and having a “more relevant and curated” merchandise mix.
Drosos also mentioned the virtual weddings offered by Jared the Galleria of Jewelry, saying the retailer had 500 people sign up to get married online in 72 hours.
Signet has begun reopening stores and Drosos said the retailer will have at least 75 percent of its locations open by the end of the month. It is using a “hyperlocal” approach to reopening stores, heeding guidance from local authorities.
She said for the stores that have reopened, revenue is covering operating costs on a four-wall basis.
Signet is not providing guidance for FY 2021 due to the “continuing level of uncertainty.”
RELATED CONTENT: 7 Tips for Keeping Your Online Business Rolling
As it did with so many retailers, the COVID-19 pandemic forced Signet to take a hard look at its fleet of physical stores while also upgrading its online capabilities.
During the call, Drosos cited a quote from a “sage” mentor of hers—“Never waste a crisis”—and ran through a list of the changes Signet is making.
The retailer, which closed 13 percent of its stores last year, moving out of Class B malls and shuttering its regional banners, will not reopen at least 150 stores in North America and 80 in Europe following the pandemic.
In addition, Signet will close an additional 150 stores this fiscal year, resulting in a 20 percent reduction in its physical footprint.
As of Feb. 1, Signet operated a total of 3,208 stores, 2,757 in North America and 451 in the U.K.
Drosos said in deciding which locations to close, the company mapped the country in a Greenfield analysis—a method of determining the optimal number of store locations based on demand—to determine which markets warrant one store, two stores, etc.
“We’ve used that customer-first lens to decide what our future store footprint should look like,” she said.
Online in Q1, Signet launched virtual consultations, conducting over 100,000 in the period, while also making progress on targeted marketing efforts and having a “more relevant and curated” merchandise mix.
Drosos also mentioned the virtual weddings offered by Jared the Galleria of Jewelry, saying the retailer had 500 people sign up to get married online in 72 hours.
Signet has begun reopening stores and Drosos said the retailer will have at least 75 percent of its locations open by the end of the month. It is using a “hyperlocal” approach to reopening stores, heeding guidance from local authorities.
She said for the stores that have reopened, revenue is covering operating costs on a four-wall basis.
Signet is not providing guidance for FY 2021 due to the “continuing level of uncertainty.”
More on Financials
The Latest
CollectionsNov 22, 2024
Piece of the Week: Xander Jane’s ‘Spiked’ Pearl StudsThese punk-inspired earrings from the new Canadian brand’s debut collection reveal the alter ego of the classic pearl.
SourcingNov 22, 2024
Facets of Fire Expands to Include Pear, Marquise DiamondsThe company brings its nanotechnology to two new fancy cuts for diamonds that feature its signature color and brilliance.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
Weekly QuizNov 21, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund RequestsA federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San FranciscoThe new space was designed to evoke a warm, inviting vibe.
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition ReturnsThis year’s theme asks designers to take inspiration from classic fairy tales.
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
