SourcingJan 28, 2026
Ethical Gem Fair to Debut Designer Showcase in TucsonThe new addition will feature finished jewelry created using “consciously sourced” gemstones.
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.
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
Editors' Picks
Sponsored by
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.
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.
More on Majors
The Latest
ColumnistsJan 28, 2026
Peter Smith: Setting the Next Generation Up for SuccessIn his new column, Smith advises playing to your successor's strengths and resisting the urge to become a backseat driver.
SurveysJan 28, 2026
Consumer Confidence Falls Below Pandemic Lows in JanuaryThe index fell to its lowest level since May 2014 amid concerns about the present and the future.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
IndependentsJan 28, 2026
Foundrae Heads to Aspen for Latest Store OpeningThe new store in Aspen, Colorado, takes inspiration from a stately library for its intimate yet elevated interior design.
Weekly QuizJan 22, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
FinancialsJan 28, 2026
Tiffany & Co., Bulgari Sales Resilient as LVMH’s 2025 Sales SlipThe brands’ high jewelry collections performed especially well last year despite a challenging environment.
CollectionsJan 27, 2026
De Beers London, GemFair Debut New Collection Highlighting Artisanal DiamondsThe collection marks the first time GemFair’s artisanal diamonds will be brought directly to consumers.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
SourcingJan 27, 2026
GemGuide Launches Pricing for Montana SapphiresThe initial charts are for blue, teal, and green material, each grouped into three charts categorized as good, fine, and extra fine.
TechnologyJan 27, 2026
Clientbook Launches Appointment Booking ToolThe new tool can assign the appropriate associate based on the client or appointment type and automate personalized text message follow-ups.
SourcingJan 26, 2026
Tucson Preview 2026: Earthy Tones and Innovative Shapes Buyers are expected to gravitate toward gemstones that have a little something special, just like last year.
SourcingJan 26, 2026
Angolan Diamond Cos. Join NDC as Rio Tinto, Murowa Exit Endiama and Sodiam will contribute money to the marketing of natural diamonds as new members of the Natural Diamond Council.
CollectionsJan 26, 2026
Tiffany & Co. Celebrates 189 Years of Love StoriesThe jeweler’s 2026 Valentine’s Day campaign, “Celebrating Love Stories Since 1837,” includes a short firm starring actress Adria Arjona.
GradingJan 26, 2026
DCA Updates Colored Gemstone CourseThe new features include interactive flashcards and scenario-based roleplay with AI tools.
MajorsJan 23, 2026
Watches of Switzerland Acquires 4-Store Jewelry Chain in TexasFamily-owned jewelry and watch retailer Deutsch & Deutsch has stores in El Paso, Laredo, McAllen, and Victoria.
WatchesJan 23, 2026
Damiani Group to Acquire Baume & MercierThe Italian luxury company purchased the nearly 200-year-old Swiss watch brand from Richemont.
TrendsJan 23, 2026
Martin Katz’s Earrings Call to Mind Wintry Weather Micro-set with hundreds of diamonds, these snowflake earrings recreate “winter’s most elegant silhouette,” and are our Piece of the Week.
MajorsJan 23, 2026
Rembrandt Charms Names New Director of Creative, Brand StrategyElla Blum was appointed to the newly created role.
Supplier BulletinJan 22, 2026
The Rise of Centralized Sourcing in the Colored Gemstone MarketSponsored by RapNet
MajorsJan 22, 2026
Lugano Diamonds Finds a BuyerInvestment firm Enhanced Retail Funding, a division of Gordon Brothers, was the successful bidder.
SourcingJan 22, 2026
De Beers To Release ‘A Diamond Is Forever’ BookIt explores the history of the iconic tagline and the company’s strategy to redefine the role of diamonds in society.
MajorsJan 22, 2026
Swarovski Appoints New North America PresidentRetail veteran Sindhu Culas has stepped into the role.
MajorsJan 22, 2026
Stuller Names New Chief Merchandising, Marketing, Sales OfficerTaylor Burgess, who has been at Stuller since 2013, was promoted to the newly created role.
PodcastsJan 21, 2026
Episode 1: High Gold Prices, the Diamond Dilemma, & What’s NextWas 2025 a good year for jewelers? Did lab-grown diamonds outsell natural? Find out on the first episode of the “My Next Question” podcast.
EditorsJan 21, 2026
6 Jewelry Designers Poised to Have a Breakout Year in 2026Whether you recognize their jewels or are just discovering them now, these designers’ talent and vision make them ones to watch this year.
CrimeJan 21, 2026
4 Men Charged in $1.7M California Smash-and-Grab Jewelry Store RobberyPlus, JSA’s Scott Guginsky discusses the need for jewelers to take more precautions as the gold price continues to climb.
IndependentsJan 21, 2026
Delaware Jeweler Felice Morris Dies at 91Morris’ most cherished role was being a mother and grandmother, her family said.
