Signet Sees Q4 Revenue, Same-Store Sales Dip

includes company-owned bead brands and Pandora, were down as well.

Signet Jewelers is in the midst of a three-year turnaround plan aimed to cut costs to spur future growth.

As part of its cost-cutting efforts, Signet offered a “voluntary transition program” to its more than 3,000 corporate employees in Akron, Ohio and Dallas earlier this year.

The retailer has a cost-savings figure it wants to hit via the voluntary transition program; if it does not achieve that figure, then layoffs will follow.

Asked about the program Wednesday, Signet Vice President of Corporate Affairs David Bouffard said:
“The VTP program ran through late March, we’ll be evaluating the results in mid-April, and departures will be held by the end of the month.”

The company also will close its manufacturing facility in Dallas, cutting 122 jobs.

Signet reported $85 million of net cost savings in its fiscal year.

CEO Virginia Drosos said in a company statement that while the company made progress with the program initiatives it did not finish the year “as strongly as expected.”

She pointed to a highly competitive promotional environment, consumer weakness in the UK, lower-than-expected customer demand for legacy merchandise collections, and a weak holiday season as contributing factors.

For the full fiscal year, Signet’s revenue was down slightly to $6.24 billion compared with $6.25 billion in the previous year.

However, same-store sales recovered somewhat, slipping just 0.1 percent compared with a more than 5 percent dip a year ago.

Looking to fiscal 2020, the company said it plans to take a “faster” and more “aggressive” approach to its transformation plan, strategically reducing its number of stores and reducing its exposure to “lower-grade malls,” said executives during its earning call.

For the first time in its history, the company plans to spend more on digital and social advertising than on TV advertising in fiscal 2020, according to executives on the earnings call.

Sales are expected to be between $6-$6.1 billion with same-store sales flat at best.

First quarter sales are projected to be between $1.42-$1.44 billion with same-store sales projected to be down at least a half-percent.

Also on Wednesday, an 8-K filing revealed that Chief Customer Officer Sebastian Hobbs is expected to step down as of April 4 but will stay on as an advisor until the end of June.

Newly appointed Chief Financial Officer Joan M. Hilson, former CFO of David’s Bridal and American Eagle Outfitters, is expected to begin this month.

Signet also has assembled a “Mall Leadership” team, combining the leadership of its Kay, Zales, and Peoples banners under one umbrella.