Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
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
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
MajorsDec 12, 2024
Mark Henry Appoints New Director of SalesCarrie Forman joins the brand to guide it into the next phase of growth with major and independent retailers in the U.S. and abroad.
