ColumnistsApr 09, 2026
Jewelry Demand Isn’t Stronger, Prices Are Just Higher Jewelers who misinterpret the state of the jewelry market risk employing the wrong retail strategy, cautions columnist Sherry Smith.
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
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
WatchesApr 09, 2026
Jacob & Co. Rolls Out Its Sequel to ‘The Godfather’ Musical Watch“The Godfather II” watch plays two melodies from the mob film’s score, “The Godfather’s Waltz” and “The Godfather Love Theme.”
Events & AwardsApr 09, 2026
JCK Announces Jesse Itzler as 2026 Keynote SpeakerOrganizers have also introduced the new JCK Talks Signature Series, as well as an offering of watch-focused workshops and lectures.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
SourcingApr 09, 2026
AGA To Honor ‘Quiet Leadership’ With New AwardThe Alan Hodgkinson Medal recognizes gemologists who are consistently generous with their time and expertise.
Weekly QuizApr 02, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesApr 09, 2026
Oris Names New CEO, CFOThe Swiss watchmaker is changing up its executive leadership team as part of a restructuring.
CollectionsApr 08, 2026
Hearts On Fire Celebrates 30 Years By Asking a QuestionThe “What’s Your Signature?” campaign invites women to think about how they see themselves.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
SourcingApr 08, 2026
Sale of 42-Carat Blue Diamond Gives Petra a Boost in Q3The big diamond’s sale added to the company’s revenue though the market remains “challenging” overall, particularly for smaller goods.
Events & AwardsApr 08, 2026
AGS Confluence Returns with AI, Sustainability SessionsRob Bates of The Jewelry Wire will also moderate a panel on the state of the jewelry industry during the virtual event.
Events & AwardsApr 08, 2026
TJS to Honor 2 Longtime Former Stuller EmployeesThe Jewelry Symposium will honor two industry veterans with lifetime achievement awards at its upcoming May event.
TrendsApr 08, 2026
Amanda’s Style File: April’s Brilliant Birthstone With their durability, brilliance, and beauty, diamonds are the perfect stone for everyday birthstone jewelry.
ColumnistsApr 07, 2026
Peter Smith: A Tip to the Post Office on Workplace CultureSmith recounts a recent trip to the post office that included an uncomfortable, embarrassing, and public exchange between two employees.
GradingApr 07, 2026
GIA CFO David Tearle to Retire in June John Cowley, who has more than 30 years of experience, is succeeding Tearle as the lab’s chief financial officer.
CollectionsApr 07, 2026
Nerd Out Over Gemology Geek’s First Jewelry CollectionFounder Erica Silverglide has designed 35 colorful pieces set with fluorescing gemstones for the brand's first finished jewelry offering.
CollectionsApr 07, 2026
Ukrainian Jewelers Highlighted In New Book“Ukrainian Jewelry | Contemporary Jewelry and Art Jewelry from Ukraine” features 33 contemporary Ukrainian designers and studios.
CollectionsApr 06, 2026
Fope’s New Jewelry Debuts Are Golden“The Golden Now” campaign celebrates the here and now with the brand’s signature styles and a selection of its new pieces.
MajorsApr 06, 2026
Kecia Caffie, Corinne Bentzen No Longer With Signet JewelersSignet confirmed that Caffie, president of Zales and Banter, and Bentzen, who headed Blue Nile, have left the company.
CollectionsApr 06, 2026
Historian Tanzy Ward Pens Book on Black Victorians’ JewelryThe antique jewelry dealer talks about the importance of including Black Americans in jewelry history and preserving their stories.
SourcingApr 06, 2026
Gemfields Reports $51M Loss in 2025Both its mines faced challenges last year, from operational issues to disruptions in the market.
CollectionsApr 03, 2026
Taylor Swift’s ‘Elizabeth Taylor’ Video Puts Jewelry Front and CenterIconic pieces, like the Mike Todd Diamond Tiara, appear in the superstar’s new music video for her song inspired by the actress.
MajorsApr 03, 2026
Saks Global Says It Will Emerge From Bankruptcy This SummerThe luxury retailer, which went Chapter 11 in January, announced Thursday that it has secured $500 million in exit financing.
Events & AwardsApr 03, 2026
JCK Luxury, NouvelleBox Partner on New Designer BallroomThe NouvelleBox ballroom will feature independent jewelry designers, including Lene Vibe, Wyld Box Jewelry, and Kiaia Limited.
CollectionsApr 03, 2026
Buddha Mama Brings Its ‘Moon’ Locket To DallasThe one-of-a-kind locket, our Piece of the Week, opens to reveal three hidden images to keep close to your heart.
MajorsApr 02, 2026
Pandora Opens New Canadian Distribution Center Amid Tariff ConcernsThe new facility was also designed to better serve its growing customer base in Canada.
TrendsApr 02, 2026
Michelle Yeoh Fronts New Mikimoto Campaign The campaign is a tribute to the year 1893, when Kokichi Mikimoto created the world’s first cultured pearl.
GradingApr 02, 2026
GIA Debuts New Campus in TaiwanIt is the only GIA school to offer the GIA Graduate Gemologist program in Chinese.
