ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
FinancialsJun 09, 2020
Signet Sales Sink 40% Amid Pandemic-Induced Store Shutdowns
COVID-19 forced Signet to take a hard look at its fleet of physical stores and upgrade its online capabilities.
While all its stores were closed in the first quarter, Signet-owned chain Jared the Galleria of Jewelry launched virtual weddings. CEO Gina Drosos said that within 72 hours of the offer’s launch, 500 people signed up to get married online.
Akron, Ohio—Signet Jewelers Ltd. CEO Gina Drosos started the company’s earnings call Tuesday morning with a statement about the civil unrest sweeping the nation following the murders of George Floyd and Breonna Taylor.
“While these are truly unprecedented times, from the COVID-19 pandemic to economic uncertainty, nothing has matched the pain and heartache of yet another brutal murder of an unarmed person of color,” she said.
“This pattern of discrimination and violence must stop now. Racism has no place in our world, and certainly not in a country dedicated to protecting life, liberty and the pursuit of happiness for all.”
Drosos made her company’s stance public in a LinkedIn post last week, and Signet has made a $100,000 donation to the NAACP Legal Defense and Educational Fund.
Drosos said Tuesday she is hosting an open mic town hall-style meeting with Signet team members next week. Called Signet Speaks Out, it will be a “frank discussion on race” intended to give the retailer ideas for actions it can take within the company, in communities and in the jewelry industry.
“At Signet, our mission is to ‘Celebrate Life and Express Love,’ and we are committed to making this true for all people,” Drosos said.
Signet started the year with “strong momentum,” recording “solid” year-over-year comps at the end of February, with a low-single-digit increase in same-store sales.
Then COVID-19 hit and the retailer made the decision to close all its stores in North America, furloughing the majority of store and support center employees and cutting executive salaries, in late March.
Signet ended the first quarter, which ended May 2, with a 39 percent year-over-year decline in same-store sales, while total sales dropped 40 percent to $852.1 million compared with $1.43 billion last year.
E-commerce sales were up 7 percent to $164.7 million including the impact of the temporary closure of the James Allen distribution center in New York, the epicenter of the COVID-19 pandemic.
Excluding the shutdown, Signet saw online sales climb 18 percent, including a 55 percent increase in April.
In North America, same-store sales were down 39 percent. Average transaction value declined 7 percent while the number of transactions was down 35 percent.
Payment plan participation rate, including both credit and leasing sales, for Q1 was 43 percent versus 50 percent in the first quarter last year, reflecting both the greater proportion of online sales and macroeconomic conditions.
Signet
Editors' Picks
Sponsored by
recorded a loss of $291 million in the quarter.
RELATED CONTENT: 7 Tips for Keeping Your Online Business Rolling
As it did with so many retailers, the COVID-19 pandemic forced Signet to take a hard look at its fleet of physical stores while also upgrading its online capabilities.
During the call, Drosos cited a quote from a “sage” mentor of hers—“Never waste a crisis”—and ran through a list of the changes Signet is making.
The retailer, which closed 13 percent of its stores last year, moving out of Class B malls and shuttering its regional banners, will not reopen at least 150 stores in North America and 80 in Europe following the pandemic.
In addition, Signet will close an additional 150 stores this fiscal year, resulting in a 20 percent reduction in its physical footprint.
As of Feb. 1, Signet operated a total of 3,208 stores, 2,757 in North America and 451 in the U.K.
Drosos said in deciding which locations to close, the company mapped the country in a Greenfield analysis—a method of determining the optimal number of store locations based on demand—to determine which markets warrant one store, two stores, etc.
“We’ve used that customer-first lens to decide what our future store footprint should look like,” she said.
Online in Q1, Signet launched virtual consultations, conducting over 100,000 in the period, while also making progress on targeted marketing efforts and having a “more relevant and curated” merchandise mix.
Drosos also mentioned the virtual weddings offered by Jared the Galleria of Jewelry, saying the retailer had 500 people sign up to get married online in 72 hours.
Signet has begun reopening stores and Drosos said the retailer will have at least 75 percent of its locations open by the end of the month. It is using a “hyperlocal” approach to reopening stores, heeding guidance from local authorities.
She said for the stores that have reopened, revenue is covering operating costs on a four-wall basis.
Signet is not providing guidance for FY 2021 due to the “continuing level of uncertainty.”
RELATED CONTENT: 7 Tips for Keeping Your Online Business Rolling
As it did with so many retailers, the COVID-19 pandemic forced Signet to take a hard look at its fleet of physical stores while also upgrading its online capabilities.
During the call, Drosos cited a quote from a “sage” mentor of hers—“Never waste a crisis”—and ran through a list of the changes Signet is making.
The retailer, which closed 13 percent of its stores last year, moving out of Class B malls and shuttering its regional banners, will not reopen at least 150 stores in North America and 80 in Europe following the pandemic.
In addition, Signet will close an additional 150 stores this fiscal year, resulting in a 20 percent reduction in its physical footprint.
As of Feb. 1, Signet operated a total of 3,208 stores, 2,757 in North America and 451 in the U.K.
Drosos said in deciding which locations to close, the company mapped the country in a Greenfield analysis—a method of determining the optimal number of store locations based on demand—to determine which markets warrant one store, two stores, etc.
“We’ve used that customer-first lens to decide what our future store footprint should look like,” she said.
Online in Q1, Signet launched virtual consultations, conducting over 100,000 in the period, while also making progress on targeted marketing efforts and having a “more relevant and curated” merchandise mix.
Drosos also mentioned the virtual weddings offered by Jared the Galleria of Jewelry, saying the retailer had 500 people sign up to get married online in 72 hours.
Signet has begun reopening stores and Drosos said the retailer will have at least 75 percent of its locations open by the end of the month. It is using a “hyperlocal” approach to reopening stores, heeding guidance from local authorities.
She said for the stores that have reopened, revenue is covering operating costs on a four-wall basis.
Signet is not providing guidance for FY 2021 due to the “continuing level of uncertainty.”
More on Financials
The Latest
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
Events & AwardsMay 15, 2024
See Who’s in JA’s 2024 ‘20 Under 40’ ClassThe annual list recognizes young professionals making an impact in jewelry retail.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
Weekly QuizMay 09, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
SourcingMay 14, 2024
Anglo American Confirms It Is Looking to Sell De Beers The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
MajorsMay 14, 2024
Platinum Born Taps ‘Born Leaders’ for New CampaignThe ad aims to position platinum jewelry as ideal for everyday wear.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%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.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
MajorsMay 09, 2024
JBT Elects New ChairmanBrian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Supplier BulletinMay 08, 2024
Fusing Past and Present at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
