De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Signet’s Q1 Sales Dip, Retailer Lowers Guidance for the Year
The company narrowed its full-year guidance, as it expects same-store sales to continue declining.
Akron, Ohio—Signet Jewelers’ fiscal year got off to a lackluster start as a decline in foot traffic weighed on revenue and the retailer narrowed guidance for the year ahead.
First quarter revenue for all Signet stores, both in North America and the United Kingdom, totaled $1.43 billion, dipping 3 percent year-over-year from $1.48 billion.
Same-store sales, which include both online and in-store sales, fell 1 percent.
Quarterly e-commerce sales were up 5 percent to $154.3 million, accounting for nearly 11 percent of overall sales compared with 10 percent last year.
“We continue to expect growth in our overall e-commerce business for the year,” new Chief Financial Officer Joan Hilson said Thursday morning on her first earnings call with the company.
Also on the call, CEO Gina Drosos detailed the retailer’s plans to invest in its mobile experience and build out its customization capabilities. She noted that the number of orders placed using the company’s “design-your-own tools” nearly doubled in the quarter.
Brick-and-mortar same-store sales, meanwhile, were down 2 percent.
In North America, which constitutes the bulk of Signet’s business and includes Kay, Zales and Jared stores, sales totaled $1.3 billion, with same-store sales essentially flat.
While the average transaction value increased more than 1 percent, the number of transactions fell more than 2 percent.
Piercing Pagoda shined brightest, with same-store sales for the chain of ear-piercing kiosks climbing nearly 14 percent.
Kay Jewelers and Zales both saw same-store sales dip 1 percent while comps at Jared the Galleria of Jewelry and James Allen both fell around 2 percent.
Same-store sales at Canadian chain Peoples Jewellers fell nearly 5 percent while regional banners performed the worst, with comps falling 11 percent.
Category-wise, Signet said sales of new merchandise increased while “legacy” collections continued to struggle.
Flagship brands, such as the “Enchanted Disney” and “Vera Wang Love” collections, performed well.
Bridal sales were down slightly on a same-store sales basis with non-branded bridal especially underperforming.
Gold jewelry was a top seller in the fashion category alongside Disney jewelry and the “Love + Be Loved” collection, while legacy fashion collections like Le Vian fell out of favor, the company said.
The Love + Be Loved collection was launched in the fourth quarter of the previous fiscal year and expanded in this year’s first quarter. The retailer ran an ad campaign for Mother’s Day and said a few styles sold out.
Sales in the “others” category, which includes company-owned bead brands and Pandora, were down.
Looking
The retailer lowered its outlook for the year ahead, expecting sales of $6-$6.06 billion with same-store sales falling more than 1 percent.
The trade tensions between the United States and China have had “no meaningful impact on our business,” Drosos said on the call.
The tariffs have been introduced in phases, she said, and while the first three have not impacted business, the fourth phase, introduced in May, which raised the tariff rate to 25 percent, might.
About 30 percent of the company’s merchandise spend involves exposure to Chinese goods, she said. The company has begun looking for opportunities to work with vendors to reduce the impact on pricing.
Signet reaffirmed its commitment to its Path To Brilliance turnaround plan and expects to see between $200 million and $225 million of net cost savings in fiscal years 2019 to 2021.
Its cost-cutting plan for the fiscal year includes closing 150 stores, including 44 closures in the first quarter, but opening 20 to 25 stores.
The Latest
Sponsored by the Las Vegas Antique Jewelry & Watch Show
The Patek Philippe expert will serve as personal curator for the brand-focused company.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
He is remembered for his charisma, passion, integrity, kindness, and wit.
The retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
The bridal collection consists of 35 engagement rings and seven wedding bands.
The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.