This year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.
Dept. Stores Ramping Up Discounting in Q4, Signet Says
In reporting its third quarter results Thursday, the retailer said it is going to have to increase promotions to compete.

Akron, Ohio—Signet Jewelers Ltd. had a stable but not outstanding third quarter and said it is going to have to discount more heavily to compete with department stores in the fourth quarter.
The jewelry retailer’s same-store sales grew 2 percent year-over-year in the period ended Nov. 3.
Total sales inched up 3 percent at both actual and constant exchange rates to $1.19 billion, and the company raised its full-year same-store sales outlook to $6.26 to $6.31 billion, with comps flat or increasing 1 percent.
Signet recorded an operating loss of $48.8 million, or 4 percent of sales, in the quarter compared to operating income of $5.5 million, or 0.5 percent of sales, in the prior-year third quarter.
It said the decline was driven by a $46 million impact related to the outsourcing of its credit program, higher advertising costs, higher incentive compensation expenses and $9.5 million in charges tied to store closing costs, among other factors.
In North America, same-store sales were up 2 percent.
Piercing Pagoda continues to be the retailer’s top performer, with comps for the ear piercing chain climbing 16 percent.
Sales on JamesAllen.com were up 13 percent in the quarter, and Signet is preparing to open its first James Allen store, which is located in Washington, D.C., on Friday.
Though the site’s sales continue to grow, executives acknowledged that having to collect sales tax in more states in the wake of the U.S. Supreme Court’s decision to overturn Quill earlier this year had a negative impact during the quarter.
Zales’ comps increased 3 percent and Kay returned to growth with a 1 percent same-store sales increase. Sales at Jared were flat.
E-commerce sales, including JamesAllen.com, rose 55 percent to $125 million and now account for 11 percent of Signet’s total sales, up from 7 percent in the same period last year.
In bridal, solitaires, the Enchanted Disney Fine Jewelry collection and Love’s Destiny were the top sellers, while sales of the Ever Us collection and Tolkowsky declined.
In fashion jewelry, gold chains and bracelets, as well as diamond earrings and pendants, were the top sellers.
Signet’s average transaction value in North America rose 5 percent in the quarter while the number of transactions slipped 1 percent. The company attributed this to increased bridal and gold sales and the phasing out of its own bead brands, a low-priced item that drags down ATV.
On
WATCH: Jared’s “Dare to Be Devoted” Holiday Commercial
{youtube} cuQJmV5owpM{/youtube}
Ninety percent of Signet’s fourth quarter advertising is new this year, and it encompasses a broader spectrum of relationships, including the company’s first commercial featuring a same-sex couple. In addition, Kay has a new tagline, “Long Live Love,” as does Jared with “Dare to Be Devoted.”
Drosos said on Thursday’s call that the company is “highly focused” on delivering results in Q4 but noted that it faces “promotional environment headwinds” and will be forced to ramp up its own promotions to compete.
“The fourth quarter is always a competitive quarter, and we are seeing our competition, especially department stores, increase discounting,” she said.
Signet had 3,478 stores as of Nov. 3, including 2,984 in North America. That is down from 3,556 stores as of Feb. 3, including 3,052 in North America.
As previously announced, the retailer will close more than 200 stores this fiscal year (FY 2019) after shuttering about the same amount last year.
When asked by an analyst about plans for store closures in FY 2020, Drosos did not provide a specific number but indicated more closures could come.
She said as part of the retailer’s three-year turnaround plan, it remains “very agile” and will continue to scrutinize its real estate portfolio to ensure it has the right stores in the right places while also testing new store concepts.
The Latest

As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.

Discover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.

When investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.

The “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.


The entrepreneur and “Shark Tank” star will share his top tips for success.

Two existing executives have been given new roles.

More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.

Meredith Tiderington, an electrical engineering student, was selected for the award.

It will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”

From design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.

The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.

Her new role is director of strategic initiatives.

The designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.

The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.

The actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.

The company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."

The large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.

Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.

Those born in June have a myriad of options for their birthstone jewelry.

The diamond industry veteran has been named its senior sales executive.

Between tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.

Designed by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.

However, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.

The pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.

Sponsored by Stuller

It was featured in the miner’s latest sale, which brought in $24.8 million.