Signet’s Q2 Sales Slide 35% As It Leans on E-Commerce

Akron, Ohio—Signet Jewelers Ltd.’s sales saw improvement in the second quarter as stores began to reopen, but the jewelry giant still leaned heavily on its growing online sales.

In the second quarter ending Aug. 1, sales totaled $888 million, down 35 percent year-over-year, with same-store sales dropping 31 percent, the retailer reported Thursday morning.

Year-to-date, Signet’s sales have totaled $1.74 billion, down 38 percent year-over-year, with same-store sales sliding 35 percent.

When COVID-19 hit, 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.

Stores began to reopen in May, with around 20 percent of Signet’s stores operational then. Seventy-five percent were open by the end of June, and 90 percent by mid-July.

Brick-and-mortar sales improved alongside store reopenings, said Signet, but ultimately declined 46 percent in the second quarter.

Online sales were up 72 percent year-over-year to $270.1 million.

On the company’s earnings call Thursday morning, CEO Gina Drosos noted that 40 percent of purchases in the second quarter came from new customers, many of whom were acquired online.

Signet’s e-commerce momentum continued in the third quarter with preliminary data showing August e-commerce sales up 65 percent, while same-store sales have climbed 11 percent.

The company is leaning heavily on its digital capabilities, implementing a full-time virtual selling team and training 15,000 store associates to work virtually with customers from their homes or in stores.

RELATED CONTENT: Here’s How Signet Is Reopening Its Stores

“Signet’s store footprint, combined with recognized jewelry expertise and new virtual selling capabilities, is a strategic, competitive advantage in the jewelry category where trust and counseled selling is important, especially in bridal,” said Drosos.

Signet said it served more than 300,000 customers via virtual consultations and curbside pickup in the second quarter and increased its e-commerce distribution throughput five-fold.

“While the macro environment remains uncertain, the company believes that it is prepared, through both its virtual and physical footprints, to serve customers wherever they want to shop and however this upcoming holiday season unfolds,” Signet said in the press release on its results.

In North America, where Signet’s banners include Kay, Jared and Zales, second-quarter same-store sales sank 31 percent to $823 million.

While brick-and-mortar same-store sales in the region fell 45 percent, online sales were strong, climbing 73 percent.

The average transaction value (ATV) was up 2 percent, but the number of transactions fell 28 percent.

A