Financials

Signet’s Q2 Sales Slide 35% As It Leans on E-Commerce

FinancialsSep 03, 2020

Signet’s Q2 Sales Slide 35% As It Leans on E-Commerce

The retailer has created a full-time virtual selling team to serve customers “wherever they want to shop” for the upcoming holiday season.

20200903_Signet_cleaning.jpg
A Signet employee, wearing a face mask and gloves, cleans around the store. The jewelry giant posted a 35 percent year-over-year drop in second-quarter sales. (Photo courtesy of Signet Jewelers)

Akron, Ohio—Signet Jewelers Ltd.’s sales saw improvement in the second quarter as stores began to reopen, but the jewelry giant still leaned heavily on its growing online sales.

In the second quarter ending Aug. 1, sales totaled $888 million, down 35 percent year-over-year, with same-store sales dropping 31 percent, the retailer reported Thursday morning.

Year-to-date, Signet’s sales have totaled $1.74 billion, down 38 percent year-over-year, with same-store sales sliding 35 percent.

When COVID-19 hit, 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.

Stores began to reopen in May, with around 20 percent of Signet’s stores operational then. Seventy-five percent were open by the end of June, and 90 percent by mid-July.

Brick-and-mortar sales improved alongside store reopenings, said Signet, but ultimately declined 46 percent in the second quarter.

Online sales were up 72 percent year-over-year to $270.1 million.

On the company’s earnings call Thursday morning, CEO Gina Drosos noted that 40 percent of purchases in the second quarter came from new customers, many of whom were acquired online.

Signet’s e-commerce momentum continued in the third quarter with preliminary data showing August e-commerce sales up 65 percent, while same-store sales have climbed 11 percent.

The company is leaning heavily on its digital capabilities, implementing a full-time virtual selling team and training 15,000 store associates to work virtually with customers from their homes or in stores.

RELATED CONTENT: Here’s How Signet Is Reopening Its Stores

“Signet’s store footprint, combined with recognized jewelry expertise and new virtual selling capabilities, is a strategic, competitive advantage in the jewelry category where trust and counseled selling is important, especially in bridal,” said Drosos.

Signet said it served more than 300,000 customers via virtual consultations and curbside pickup in the second quarter and increased its e-commerce distribution throughput five-fold.

“While the macro environment remains uncertain, the company believes that it is prepared, through both its virtual and physical footprints, to serve customers wherever they want to shop and however this upcoming holiday season unfolds,” Signet said in the press release on its results.

In North America, where Signet’s banners include Kay, Jared and Zales, second-quarter same-store sales sank 31 percent to $823 million.

While brick-and-mortar same-store sales in the region fell 45 percent, online sales were strong, climbing 73 percent.

The average transaction value (ATV) was up 2 percent, but the number of transactions fell 28 percent.

A

greater proportion of online sales in the second quarter hurt Signet’s payment plan participation rate, which includes credit and leasing sales. It was 40 percent in the quarter, down from 52 percent last year.

In the U.K., same-store sales were down 39 percent.

Brick-and-mortar sales sank 55 percent while e-commerce sales were up 66 percent. ATV increased 11 percent while the number of transactions dropped 43 percent.

Product-wise, Drosos noted that more customers were buying meaningful, sentimental, and religious jewelry amid the COVID-19 pandemic.

Sales in the bridal category sank 27 percent to $445.9 million year-over-year in the second quarter and fell 37 percent to $788.1 million in the half-year.

Customizations services, like those offered by Neil Lane and Vera Wang, were a driver in bridal sales, said Drosos.

Signet’s research found that more than 50 percent of non-engaged couples are quarantining together and half of them said their relationship had gotten stronger. Only seven percent said it had gotten worse.

She said the results signal “a nice tailwind in the bridal business.”

Sales in of fashion jewelry dropped 33 percent to $307.2 million year-over-year in the second quarter and fell 35 percent to $617.7 million in the half-year.

In the watches category, quarterly sales were down 50 percent to $46.1 million year-over-year and down 50 percent to $88.2 million in the half-year.

By banner, Kay Jewelers posted quarterly sales of $325 million, down 39 percent year-over-year while Jared’s quarterly sales dipped 34 percent to $168.5 million.

Zales’s quarterly sales were down 34 percent to $185.1 million while Piercing Pagoda’s sales fell 20 percent to $59.3 million.

E-tailer James Allen was the sole gainer, posting quarterly sales of $64.3 million, up 20 percent year-over-year.

The retailer began testing out James Allen store-in-stores in Jared locations to give the banner a “curated, physical presence.” The concept will be gradually expanded to 80 locations, or one-third of Jared’s fleet.

Looking at its store count, Signet closed 293 of the 380 stores it plans to shutter this fiscal year, mostly in traditional mall locations.

As for the holiday season ahead, Signet will be launching new products this month in preparation.

“Fifty-one percent of customers are planning to shop earlier this holiday season than they have in the past, so we’ll be ready for that,” said Drosos.

In light of the coronavirus pandemic, Signet declined to provide financial guidance for the remainder of fiscal 2021.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Elton John’s leopard print Rolex Daytona watch
AuctionsFeb 22, 2024
Elton John’s Leopard-Print Rolex Roars at Auction

Two Cartier watches also topped their estimates at Christie’s “The Collection of Sir Elton John: Goodbye Peachtree Road” evening sale.

Buccellati header
TrendsFeb 22, 2024
Buccellati to Open ‘Prince of Goldsmiths’ Exhibition

Set to be held in Venice, it’s a look through the maison’s history.

813-carat “Constellation” diamond in rough form
SourcingFeb 22, 2024
Lucara, HB Group Partnership Revived

It is another 10-year sales agreement in which all the larger rough recovered from the Karowe mine will go to HB Group for manufacturing.

GIA id100
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

Sebastian Clarke and Katherine van Dell of Heritage Auctions
AuctionsFeb 22, 2024
Heritage Auctions Adds 2 New Hires to West Palm Beach Office

Sebastian Clarke and Katherine van Dell, frequent appraisers on “Antiques Roadshow,” will join the new office.

Weekly QuizFeb 22, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
National Jeweler columnist Sherry Smith
ColumnistsFeb 21, 2024
On Data: January Was a ‘Mixed Bag’ for Independent Jewelers

Sherry Smith dishes on the month’s highs and lows and the two categories consumers were loving ahead of Valentine’s Day.

Stock image of diamonds
GradingFeb 21, 2024
GIA’s Same-Day Service Now Available Everywhere

The new service, introduced to stem fraud related to lab-grown diamonds, will be offered at no cost for the time being.

flashforge pic.png
Brought to you by
WaxJet: Revolution in Jewelry Manufacturing

The WaxJet 400, recognized as the world's fastest wax printer, is bringing in a new era of precision and efficiency to industry.

Jam + Rico Claire’s jewelry
CollectionsFeb 21, 2024
Jam + Rico Debuts Second Claire’s Collection

Founder Lisette Scott was inspired by the intricacy, colors, and symbolism of African art and architecture.

Rapaport logo
SourcingFeb 21, 2024
Rapaport to Hold Another Natural Pearl Auction

Viewings start this week in New York and bidding will close on March 8.

National Jeweler columnist Peter Smith
ColumnistsFeb 20, 2024
Squirrel Spotting: Life After Rolex

Peter Smith shares advice from independent jewelers who used losing this cornerstone brand as a catalyst for reinvention.

Neile Adams McQueen and Steve McQueen
AuctionsFeb 20, 2024
Jewels from Neile Adams McQueen Shine at Bonhams

All 13 lots belonging to the actress and first wife of Steve McQueen sold at the recent “California Jewels” sale.

Stuller bench jeweler
Events & AwardsFeb 20, 2024
Stuller to Host Bench Jeweler Workshop in March

Registration is also open for its “Battle of the Benches” challenge.

Mary Ball Gorman of Henry B. Ball Jewelers
IndependentsFeb 16, 2024
Mary Ball Gorman of Henry B. Ball Jewelers Dies at 99

Gorman was an industry trailblazer, serving as the first female treasurer of Jewelers of America.

Jade Ruzzo gold and diamond Tennessee Torque necklace
CollectionsFeb 16, 2024
Piece of the Week: Jade Ruzzo’s Tribute to Tennessee

The movement of the 18-karat gold and diamond “Tennessee Torque” necklace is subtle.

Jared Goff and Claudia Cividino
MajorsFeb 15, 2024
Detroit Lions’ QB Jared Goff Going to Jared

Goff, whose fans hold up “He Went to Jared” signs at games, has signed a partnership with the retailer.

De Beers Venetia diamond mine
SourcingFeb 15, 2024
De Beers’ Production Down 8% in 2023

The company recovered 31.9 million carats of diamonds in 2023, compared with 34.6 million in 2022.

Gina D’Onofrio Heritage Auctions
AuctionsFeb 15, 2024
Heritage Auctions Names New Co-Director of Fine Jewelry

Industry veteran Gina D’Onofrio has rejoined the auction house.

Indian Diamond and Colorstone Association (IDCA) awards
Events & AwardsFeb 15, 2024
IDCA Hands Out Awards in Tucson

The association also celebrated its 40th anniversary.

A selection of engagement rings
TrendsFeb 14, 2024
5 Engagement Ring Trends for 2024

From three-stone rings to fancy shapes, experts weigh in on what consumers could be looking for this year.

Boucheron Power of Couture
CollectionsFeb 14, 2024
Boucheron’s New High Jewelry Collection Pays Homage to Ceremony, History

“Power of Couture” recalls Frédéric Boucheron’s love of fabric using diamonds and rock crystal.

Rough diamonds from Gahcho Kue diamond mine
SourcingFeb 14, 2024
De Beers’ Rough Diamond Sales Improve Slightly

The diamond miner and marketer said “solid” holiday sales in the U.S. helped stabilize the industry.

Jonker I Diamonds
SourcingFeb 14, 2024
‘100 Carats’ Exhibition Opens at LA Museum

A new display at the Natural History Museum of Los Angeles County features dozens of gemstones each weighing 100 carats or more.

Grand Seiko New York City flagship
WatchesFeb 14, 2024
See Inside Grand Seiko’s New NYC Flagship

Located on Madison Avenue, the store is its largest in the world.

GIA logo
GradingFeb 14, 2024
GIA Offering Discounts on Jade Reports

The 20 percent off promotion will run through March 31.

KIL Promotions NYC Spring Jewelry and Object Show
Events & AwardsFeb 14, 2024
KIL NYC Show Returns for Spring Edition

Its second trade event will feature vintage pieces and contemporary collections.

Lydia Courteille Lips ring
TrendsFeb 13, 2024
Amanda’s Style File: Symbols of Love

When it comes to Valentine’s Day jewels, the fun doesn’t stop at hearts.

×

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