Majors

Signet Sees 5% Drop in Holiday Comps

MajorsJan 10, 2018

Signet Sees 5% Drop in Holiday Comps

Kay and Jared stores turned in the worst performance, as the retailer continues to grapple with credit issues.

2016_Kay-Jewelers.jpg
Continued problems with the in-store credit approval process resulted in a 9 percent drop in same-store sales for Signet Jewelers’ Sterling division, which includes Kay Jewelers stores.

Akron, Ohio--Signet Jewelers Inc. said continued issues with its in-store credit processes impacted holiday season sales at Kay and Jared, which dragged down comps for the company as a whole.

In a conference call held Wednesday morning, the retailer reported that same-store sales were down 5 percent year-over-year in the nine-week period ended Dec. 30.

Total sales declined 3 percent to $1.88 billion.

The company’s Sterling division, which includes Kay Jewelers and Jared the Galleria of Jewelry, recorded a 9 percent drop in comps.

While the average transaction value was up 3 percent, the number of transactions dropped 11 percent.

On Wednesday’s call, Signet CEO Gina Drosos said two-thirds of the holidays sales decline is attributable to in-store issues related to the outsourcing of Sterling’s credit program. These issues impacted both bridal and fashion sales at higher price points, where credit is typically used.

In the fall, Signet completed the outsourcing of $1 billion in prime-only credit accounts to Alliance Data System Corp. (ADS), which is now its primary provider of credit funding and servicing for customers of Kay, Jared and the regional brands under the Sterling umbrella. The outsourcing came after analysts questioned the amount of risk Signet was assuming with the credit it was extending and how that was being accounted for on the balance sheet.

Pressed to explain exactly what’s happening at the store level within the credit approval process that’s causing the retailer to lose sales and customers, Chief Financial Officer Michele Santana said it’s not one particular problem but a number of issues, including sales associates having to ask for the same information from customers multiple times, which “throws them off the sales process,” and a “learning curve” for sales associates to understand and explain the payment plans under ADS.

“We significantly underestimated the impact these changes would have on in-store sales,” she said.

Drosos allowed that the time it took to process transactions was longer over the holiday season, which also was an issue.

Both said there has not been a change in the number of customers being approved for credit since the transition to ADS, a question posed by numerous analysts on Wednesday’s call.

The company’s Zale division, meanwhile, turned in a stronger performance.

Same-store sales were up 4 percent, driven by the strength of the Vera Wang Love and Enchanted Disney collections, as well as pieces designed for stacking and layering, yellow gold, and jewelry repairs.

The

average transaction value rose 6 percent while the number of transactions was flat.

Drosos called Zale a “good example” of how the changes Signet is making to improve its website, SEO and social media presence are impacting sales without having to account for the problems being caused by the credit transition. (Stores under the Zale umbrella are not having credit transition issues because Alliance Data has been providing credit services to their customers since 2013, prior to its acquisition by Signet.)

E-commerce sales for Signet, including both its Sterling and Zale divisions, rose 48 percent and accounted for 11 percent of total sales, compared with 7 percent last year.

For the fourth quarter and full fiscal year 2018, Signet projects a mid-single-digit decline in comps.

The retailer also said Wednesday that it expects a significant tax benefit in fiscal year 2018 thanks to the lower corporate tax rate brought in with tax reform, though it expects that impact to moderate in future years as the savings from a lower corporate income tax rate will be largely offset by disallowances and limitations in certain tax deductions.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Gemist
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech Platform

The company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.

Jeff Preolo, David Stout, Levi Higgs, David Benavides
IndependentsJun 27, 2025
David Webb Announces New Hires, Promotions

Following its recent acquisition, the storied brand has updated its leadership team and regional managers.

Blake Graham and Jessica Kohoutek
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner

AGS also named the recipient of its “Women in Leadership” scholarship.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Buddha Mama Monstera Ring
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap Ring

The 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.

Weekly QuizJun 26, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Penny Ruston
IndependentsJun 26, 2025
Penny Ruston Dies at 80

The creator of the WJA Chicago chapter is remembered as a champion for women in the jewelry industry and a loving grandmother.

Stock image of woman shopping
SurveysJun 26, 2025
After Recovering in May, Consumer Confidence Dips in June

The decline was consistent across age groups and almost all income groups, with tariffs and inflation still top of mind.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Sorellina Playlist: Electric Dreams Campaign
CollectionsJun 26, 2025
Jam Out With Sorellina’s Jimi Hendrix-Inspired Jewels

The “Playlist: Electric Dreams” collection brings lyrics from the musician’s song, “Little Wing,” to life through fine jewelry.

The Jewelry Symposium event
Events & AwardsJun 26, 2025
The Jewelry Symposium Is Looking for Speakers for 2026 Event

The event is set for May 16-19 in Detroit, Michigan.

Exterior of Marissa Collections’ new store in Nantucket, Massachusetts
IndependentsJun 25, 2025
Marissa Collections Opens in Nantucket as Legal Fight Continues

The Vault’s Katherine Jetter is accusing the retailer of using info she shared for a potential partnership to move into Nantucket.

Counterfeit Cartier “Juste Un Clou” bracelet
CrimeJun 25, 2025
Customs Nabs Another Big Shipment of Fake Cartier, Van Cleef Jewelry

Agents seized 2,193 pieces, a mix of counterfeit Cartier “Love” and “Juste Un Clou” bracelets, and Van Cleef & Arpels’ “Alhambra” design.

Karine Choudhrie Big Splash Circus Starfish and Lantern Fish
CollectionsJun 25, 2025
Splash into Karina Choudhrie’s Collection of Underwater Circus Performers

The designer brought her children’s book, “The Big Splash Circus,” to life through a collection of playful fine jewelry characters.

Jewelers of America
Events & AwardsJun 25, 2025
JA Announces Impact Initiative Fund Recipients

The trade association has chosen the recipients of the funding initiative it formed to foster the growth and sustainability of the industry.

John Dyer Montana Sun Sapphire
SourcingJun 25, 2025
2025 AGTA Spectrum Awards Open for Entries

The organization has also announced this year’s slate of judges.

Khepri Jewels Luna collection fancy color fringe multi-shape drop diamond earrings
EditorsJun 24, 2025
The Best New Jewelry from Couture 2025, Part 2

Associate Editor Natalie Francisco shares 20 additional pieces that stood out to her at the Couture show.

Lori Tucker
IndependentsJun 24, 2025
Colorado Bench Jeweler Celebrates 50 Years With Local Retailer

Lori Tucker started at Williams Jewelers when she was 18 years old.

“Marvel | Citizen Zenshin” watch for the new The Fantastic Four movie
WatchesJun 24, 2025
Citizen’s New ‘Fantastic Four’ Watch Is Literally Super

The “Marvel | Citizen Zenshin” watch is crafted in Super Titanium and has subtle nods to all four “Fantastic Four” superheroes on the dial.

Pritesh Patel
GradingJun 23, 2025
GIA Names New President and CEO

Pritesh Patel, the lab’s chief operating officer, will take over as president and CEO of GIA.

Graphic for Las Vegas recap episode of “My Next Question”
Recorded WebinarsJun 23, 2025
Watch: Top Trends at Couture, JCK Las Vegas 2025

National Jeweler and Jewelers of America discuss the standout jewelry trends and biggest news to emerge from the shows this year.

Luanda Accord
SourcingJun 23, 2025
Diamond Producers, Organizations to Kick in Money to Promote Natural Diamonds

Signatories to the “Luanda Accord” committed to allocating 1 percent of annual diamond revenue to the Natural Diamond Council.

Penny Preville, Maggie Hess, Stella Song, and Benjamin King
Events & AwardsJun 23, 2025
Jose Hess Design Awards Celebrate 6 Jewelry Designers

The winning designs captured the “Radiance” theme.

24th Gem Awards Show Logo
Events & AwardsJun 23, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

Single Stone Bryn Ring and Grace Lee Marquise Demi Demi Ring
TrendsJun 20, 2025
Dua Lipa Stays On-Trend With Chunky Engagement Ring

The singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.

Yvonne Léon Python Gold Bracelet
TrendsJun 20, 2025
Piece of the Week: Yvonne Léon’s ‘Python Gold’ Bracelet

The bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.

Stock image of handcuffs
CrimeJun 18, 2025
7 Men Indicted in $100M Brinks Jewelry Heist

The heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.

Marie-Thérèse Pink diamond and Blue Belle sapphire necklace
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’s

The 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week. 

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy