CrimeDec 03, 2024
Man Sentenced to Life in Prison for Murder of Florida JewelerJohn Willard Craiger, 83, fatally shot jeweler Ghazi “Gus” Michel Osta following an argument in the store.
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.
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.
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.
More on Financials
The Latest
ColumnistsDec 03, 2024
Peter Smith: How a Leadership Hire Can Make or Break a CompanyIn his latest column, Smith provides a list of questions every business needs to be asking their next potential leader.
SourcingDec 03, 2024
Gemstone Cutter Glenn Lehrer Dies at 71An innovative artist inspired by the natural world, Lehrer is remembered for being a visionary and a shining light.
Brought to you by
Protecting Your Sparkle: Why Screening Has Become Essential While no reputable jeweler would knowingly sell lab-grown stones as natural, it's a growing possibility.
WatchesDec 03, 2024
Jaeger-LeCoultre and Vacheron Constantin Appoint New CEOsJérôme Lambert returns as CEO of Jaeger-LeCoultre, while Laurent Perves takes the lead role at Vacheron Constantin.
Weekly QuizNov 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsDec 03, 2024
Neiman Marcus’ ‘Fantasy Gifts’ Sparkle In Pavé This Holiday SeasonThe extravagant gifts in this year’s “A Neiman’s Fantasy” Holiday Book range from a Messika diamond necklace to pavé diamond cowboy boots.
IndependentsDec 02, 2024
Windsor Jewelry Closing After 105 YearsOwners Greg and Lynn Bires are heading into retirement.
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.
GradingDec 02, 2024
Jewelry Appraiser Craig Lynch Dies at 70The industry veteran is remembered for his faith, his dedication to his family, his wealth of knowledge and his generosity in sharing it.
SurveysDec 02, 2024
10-Year Rewind: Comparing 2024 Holiday Shoppers With the Consumers of 2015PricewaterhouseCoopers’ 2024 holiday trends survey took a 10-year look back to see what mattered to consumers then versus now.
Lab-GrownDec 02, 2024
Lab-Grown Diamond Jewelry Set Sells for $55K at Charity AuctionMonique Lhuillier and Kay Jewelers collaborated to create the pieces, which were offered at the recent Baby2Baby gala.
Policies & IssuesNov 27, 2024
G7 Announces Botswana as Second Verification ‘Node’ for Rough DiamondsBotswana joins Antwerp as a certification center for rough under the G7 ban on Russian diamonds.
SourcingNov 27, 2024
Gemfields Reports 'Disappointing' High-Quality Emerald Auction ResultsThe miner said its November sale, which earned $16.1 million, felt the effect of competitive pricing by a rival Zambian producer.
CollectionsNov 27, 2024
Piece of the Week: Mignon Faget’s ‘Crescent Starry Night’ Tassel EarringsMignon Faget honors its hometown of New Orleans with a piece inspired by “The Crescent City.”
TechnologyNov 27, 2024
Nivoda Secures Additional Funding The London-based business-to-business diamond and gemstone marketplace just closed on a $51 million round of Series C funding.
SourcingNov 26, 2024
De Beers Stays With ‘A Diamond Is Forever’ for 2024 Holiday Campaign“Forever Present” highlights gifting opportunities for natural diamonds, celebrating familial, friendship, and romantic relationships.
AuctionsNov 26, 2024
Christie’s To Auction Collection of Suzanne Belperron JewelsIt’s one of the most impressive assemblages of the French designer’s pieces ever to come to auction, Christie’s said.
ColumnistsNov 26, 2024
The Smart Lab: 7 Strategies for Refining Your Holiday Email Marketing CampaignsSuccessful email marketing campaigns are all about timing, personalization, and compelling CTAs, Emmanuel Raheb writes.
MajorsNov 26, 2024
GIA’s Board of Governors Adds 2 New MembersRetail leader Lisa Bridge and geology professor Dr. Wendy Bohrson joined the organization’s board.
MajorsNov 26, 2024
Ben Bridge Jeweler Unveils This Year’s ‘Benny Bear’ Look out for a black bear wearing a purple Santa hat and its zippered tummy pouch made for holding a holiday gift from Ben Bridge Jeweler.
SourcingNov 25, 2024
William Goldberg Celebrates 2 Major Milestones With New Book“The William Goldberg Way” was released in honor of the company’s 75th anniversary and 25 years of its proprietary Ashoka diamond.
Lab-GrownNov 25, 2024
Lab-Grown Co. Lusix Sold to 2 Companies for $4M Fenix and Dholakia Lab-Grown Diamonds have jointly acquired the Israel-based company, which grows diamonds using solar power.
IndependentsNov 25, 2024
Sophie Bille Brahe Opens First US StoreThe Danish brand has opened an appointment-only location on Madison Avenue in New York City.
Events & AwardsNov 25, 2024
The Original Miami Beach Antique Show Panel to Feature Fred SavageThe actor and watch enthusiast will be part of the show’s education lineup.
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.
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.
