The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Signet to Close 150 More Stores This Fiscal Year
Mall stores and regional banners likely will be first on the chopping block.
Akron, Ohio—Signet Jewelers Ltd. plans to shutter 100-plus stores this fiscal year as it continues along its “Path to Brilliance,” the retailer’s three-year turnaround plan.
The company reported lackluster fourth quarter results Wednesday, weighed down by a weak holiday season and faltering demand for its legacy merchandise.
Quarterly revenue fell 6 percent while same-store sales were down 2 percent.
The retailer’s e-commerce segment, however, was one of the bright spots, with online sales rising more than 5 percent to $260.6 million and accounting for 12 percent of overall sales.
“About 70 percent of our customers now have already shopped one of our online sites before they walk in the door,” CEO Gina Drosos said during the company’s earnings call Wednesday.
In contrast, brick-and-mortar same-store quarterly sales fell 3 percent.
Signet shuttered a total of 262 stores last year and plans to continue targeting underperforming stores, particularly in malls. It will close 150 more stores this year.
“We have seen better performance from our off-mall locations,” Drosos said on the call. “And so we have been moving systematically out of lower-performing malls and simplifying by moving out of regional banners.”
Since fiscal year 2016, Signet’s total store count has fallen 8 percent, SEC filings show.
It had 3,625 stores at the end of FY 2016. By the end of FY 2019, the retailer had 3,334.
By the end of FY 2020, Signet will have reduced its store base by 13 percent over a three-year period, Drosos said.
However, fewer stores has not translated into fewer sales opportunities, outgoing Chief Financial Officer Michele Santana noted on Wednesday’s call.
“When you look at the stores that we are closing and the geographic ring that surrounds it where we have either another banner or a sister banner, we have been pretty successful in capturing a sales transference rate to mute impact to the bottom line,” she said.
Looking to boost sales in its remaining locations, the retailer also will begin testing piercing in several Kay stores during the second half of fiscal 2020, perhaps looking to capture some momentum from the company’s top-performing segment.
Piercing Pagoda was a sales standout in the fourth quarter, seeing same- store sales climb more than 17 percent.
Signet’s plans for fiscal 2020 include introducing a greater assortment of products and upgrading its websites and mobile platforms.
The retailer will also look to self-purchasing and gifting as potential growth drivers.
Fiscal 2020 sales are expected to be between $6-$6.1 billion
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.