AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat RubyThe ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.
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
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft RecoveredThe two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More JewelryThe time to start experimenting with video content is now, writes columnist Emmanuel Raheb.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic DesignFrom striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.
Weekly QuizMar 21, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid TurnaroundThe jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair ServicesThe auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
SourcingMar 21, 2025
BrankoGems To Hold Conference in MontanaThe event, set for June 13-15, will feature educational presentations and guided visits to the state’s sapphire mines.
TrendsMar 21, 2025
Piece of the Week: Marrow Fine’s ‘Til Death’ RingAfter the black enamel band became a best-seller for the brand, it has now launched an enamel ring personalization program.
IndependentsMar 20, 2025
Korman Fine Jewelry’s New Store Is Double the Size The Austin, Texas, jeweler’s new 11,000-square-foot store is set to open this summer.
Events & AwardsMar 20, 2025
JCK Rocks to Feature Snoop Dogg, Jason DeruloThe rapper and singer-songwriter will perform at Tao Beach on June 8.
TechnologyMar 20, 2025
Chris Ploof, Severine Ferrari Launch YouTube Video Series“Conversations with Chris Ploof” covers tips for men buying wedding bands, behind-the-scenes footage of Ploof in his studio, and more.
Lab-GrownMar 20, 2025
Beyond Jewelry: Possibilities in the Lab-Grown Diamond SectorAs lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.
MajorsMar 19, 2025
Signet Jewelers to Close Stores, Cut Staff Amid Declining SalesThe moves are part of the retailer’s new turnaround plan, “Grow Brand Love,” which also includes emphasizing brand loyalty over store banners.
CollectionsMar 19, 2025
Jessica McCormack’s New Collection Elevates Office WearThe “Rush Hour” campaign stars Zoë Kravitz in bold, wearable pieces designed to make a statement in the workplace.
WatchesMar 19, 2025
Breitling Acquires Another Watch Brand From the 1800sBreitling is reviving Gallet, which was founded in 1826 and is known for making watches used in the early days of long-distance travel.
AuctionsMar 19, 2025
10-Carat Fancy Vivid Blue Diamond Expected to Sell for $20MDubbed the “Mediterranean Blue,” this “remarkably rare” diamond will be part of Sotheby’s May jewelry auction in Geneva.
MajorsMar 19, 2025
AGS Adds New Program, Relaunches CSAThe American Gem Society now offers a Jewelry Evaluation Advisor designation as well as an updated Certified Sales Associate designation.
CollectionsMar 18, 2025
Beck Debuts New Collection as Trove’s Latest Designer-in-ResidenceRebecca Zeijdel-Paz created more than 75 new pieces for the residency, which will be on display at Trove’s store in New York through April.
ColumnistsMar 18, 2025
Peter Smith: The Importance of Culture in HiringSmith explores why a qualified candidate might still not be right for the job.
Events & AwardsMar 18, 2025
Fink’s Jewelers Is Now a Regional Emmy WinnerThe company and its marketing agency, Loudr, were recognized for the “Make You Dance” marketing campaign.
WatchesMar 18, 2025
Citizen Announces New Modern Luxury Watch CategoryThe “Series8” and “Attesa” collections will be grouped under Citizen Premier.
MajorsMar 18, 2025
Borsheims Names New Assistant IT ManagerDavid Fager, a former systems engineer at the retailer, was promoted to the role.
Events & AwardsMar 17, 2025
Gem Awards Honor All Facets of the IndustryFrom retailers to designers and the media, the fine jewelry industry recognized one another’s work and looked to the future.
Events & AwardsMar 17, 2025
GIA Names Winner of Emerging Jewelry Design Talent AwardEleanor H. Yeh is the recipient of the eighth annual Gianmaria Buccellati Foundation Award for Excellence in Jewelry Design.
MajorsMar 17, 2025
Tous Names U.S. Managing Director, VPJoseph Cavalcante takes on the dual role as the Spanish jewelry brand looks to expand further into the U.S. market.
