Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
FinancialsMar 14, 2018
Signet to Close 200+ Stores This Fiscal Year
It’s part of a three-year turnaround plan announced Wednesday called the “Path to Brilliance.”
Continuing credit issues and the declining popularity of “Ever Us” resulted in a difficult year for Signet-owned chain Kay Jewelers. The retailer recorded an 11 percent drop in same-store sales in the fourth quarter and 8 percent decline for the fiscal year.
Akron, Ohio--Signet Jewelers Ltd. is set to shutter 200-plus stores this year as part of a three-year turnaround plan announced Wednesday.
The introduction of the plan comes as the retailer continues to see sales slip but enters its first full fiscal year under the leadership of CEO Virginia Drosos, who started in August.
Signet’s same-store sales slid 5 percent in the fourth quarter and full year ended Feb. 3, with Kay Jewelers and Jared the Galleria of Jewelry stores accounting for much of the decline.
The company’s Sterling Jewelers division, which includes Kay, Jared and regional brands, posted a 9 percent drop in same-store sales in the fourth quarter and a 7 percent decline for the year.
The retailer pointed to ongoing issues with the outsourcing of its credit program as well as declining sales of Ever Us, the two-stone collection that was a bestseller when first introduced.
Zale Jewelry’s same-store sales rose 4 percent in the fourth quarter, driven by the new Enchanted Disney collection, line extensions to Vera Wang Love and an improved selection of solitaires and fancy-cut diamonds. For the year, same-store sales declined 2 percent, with strength in Disney and Vera Wang sales offset by weakness in bridal and beads.
During the company’s earnings call Wednesday morning, Drosos said the retailer is losing bridal sales to online competitors as well as to independent jewelers who are offering a “very personalized relationship” with customers, which is outweighing the competitive advantage Signet feels it has in selection.
Total sales for Signet, including its U.K. division, were $2.29 billion in the fourth quarter, up 1 percent year-over-year, and $6.25 billion for the year, down 2.4 percent. The total sales calculation includes an extra calendar week when compared with the previous fiscal year.
Drosos called the year “challenging.” The company expects comps to decline again this fiscal year, which she said will be a “transitional year” for the retailer as it implements its three-year turnaround plan.
The plan, termed the “Signet Path to Brilliance,” includes an evaluation of the company’s physical footprint, which Signet said it believes will result in the closure of more than 200 stores by the end of fiscal 2019. About three-quarters of the stores that will close are located in malls where Signet has already has another store. In addition, over the next three years, Signet will close all its regional brand stores.
Two hundred stores represents about 6 percent of
Signet’s total store fleet, which numbered 3,556 as of the close of the fiscal year on Feb. 3. A company spokesman said that Signet will open between 35 and 40 stores in FY 2019, including some new concept stores.
The 200-plus closings follow a year in which Signet shuttered 242 stores but opened 116, for a net reduction of 126.
Improving its omnichannel capabilities is another facet of the turnaround plan, with Drosos outlining a few specifics during Wednesday’s call: allowing customers to check the inventory of any Signet store while online in a store; the expansion of online appointment booking; more personalized content on its websites; and the expansion of online wish lists.
This year also marks the first in which Signet will be operating with a fully outsourced credit program.
The retailer announced Wednesday that it has sold the remaining, non-prime portion of its accounts receivable to investment funds managed by CarVal Investors for $401 to $435 million.
This means Signet has gotten all the credit programs it used to handle in-house off its books, a process that began in May 2017.
The board appointed Sharon L. McCollam and Nancy A. Reardon as directors, effective March 13.
McCollam was the executive vice president, chief administration and chief financial officer at Best Buy Co. Inc. from 2012 to 2017, and currently also serves on the board of Stitch Fix Inc., an online apparel subscription company.
Reardon has 33 years of human resources experience, most recently working as the chief human resources and communications officer for the Campbell Soup Co. from 2004 until her retirement in 2012. She currently is on the board of directors for Big Lots Inc. and Kids II, which sells toys and other gear for infants and toddlers.
Signet’s board now numbers 12, six of whom are women.
Grant is being replaced by Randi Abada, whose title will be senior vice president of corporate finance strategy and investor relations.
Editor’s note: This story was updated with information recevied post-publication.
The 200-plus closings follow a year in which Signet shuttered 242 stores but opened 116, for a net reduction of 126.
Improving its omnichannel capabilities is another facet of the turnaround plan, with Drosos outlining a few specifics during Wednesday’s call: allowing customers to check the inventory of any Signet store while online in a store; the expansion of online appointment booking; more personalized content on its websites; and the expansion of online wish lists.
This year also marks the first in which Signet will be operating with a fully outsourced credit program.
The retailer announced Wednesday that it has sold the remaining, non-prime portion of its accounts receivable to investment funds managed by CarVal Investors for $401 to $435 million.
This means Signet has gotten all the credit programs it used to handle in-house off its books, a process that began in May 2017.
RELATED CONTENT: A Q&A with the New CEO of Signet JewelersAlso on Wednesday, Signet announced the addition of two women to its board of directors and the departure of James Grant, the vice president of investor relations.
The board appointed Sharon L. McCollam and Nancy A. Reardon as directors, effective March 13.
McCollam was the executive vice president, chief administration and chief financial officer at Best Buy Co. Inc. from 2012 to 2017, and currently also serves on the board of Stitch Fix Inc., an online apparel subscription company.
Reardon has 33 years of human resources experience, most recently working as the chief human resources and communications officer for the Campbell Soup Co. from 2004 until her retirement in 2012. She currently is on the board of directors for Big Lots Inc. and Kids II, which sells toys and other gear for infants and toddlers.
Signet’s board now numbers 12, six of whom are women.
Grant is being replaced by Randi Abada, whose title will be senior vice president of corporate finance strategy and investor relations.
Editor’s note: This story was updated with information recevied post-publication.
More on Financials
The Latest
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in ItalyLocated in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen BrownThe basketball stars wear men’s jewelry from the “Curb Chain” collection.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired CollectionInterior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning CenterThe free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from MembersThe feedback will be used to prepare other jewelers for the challenges ahead, the organization said.
