International jewelry retailer Signet Jewelers Limited ended the year with positive sales and earnings growth, as well as unveiling its new growth strategy. In the fourth quarter, the company reported a 1.5% increase in total sales compared to the previous year, reaching $2.19 billion. Same store sales saw a significant growth of 7%, driven by a strong increase in e-commerce sales which grew by 70.5%. However, the company experienced a decline of 4.2% in brick-and-mortar sales.
Signet’s performance was mixed across different regions. While North America saw strong same store sales growth of 10.4%, international same store sales decreased by 28.3%. This decline was primarily due to a steep decrease of 56% in brick-and-mortar same store sales, counterbalanced by a notable growth of 115.1% in e-commerce sales.
For the quarter, net income attributable to common shareholders was $245.7 million, or $4.12 per diluted share, a significant increase from $178.8 million, or $3.14 per diluted share, in the previous year.
CEO Virginia C. Drosos expressed satisfaction with the company’s performance, emphasizing that these results highlight an important milestone in Signet’s transformation journey, known as “Path to Brilliance.” She praised the dedication and resilience of Signet team members, particularly considering the challenging circumstances throughout the past year.
Over the full fiscal year, Signet reported total sales of $5.2 billion, a decrease of 14.8% from the previous year. Same store sales declined by 10.8% overall, while e-commerce sales rose by 57.9% to reach $1.2 billion. The company incurred an annual net loss of $48.7 million, compared to income of $72.6 million in the prior year.
Drosos also unveiled Signet’s new growth strategy, called “Inspiring Brilliance.” The strategy focuses on achieving success in key categories, countries, and banner brands, while emphasizing the acceleration of services revenue. Signet aims to expand its presence in the accessible luxury and value segments and prioritize digital commerce. Additionally, the company plans to enhance the customer experience through data-driven insights, offering a more personalized approach, and strengthen its omnichannel strategy by integrating both physical and digital platforms.
Signet has also renewed its commitment to corporate responsibility by joining the UN Global Compact and the Sustainability Accounting Standards Board Alliance. In addition, the company launched the Love Inspires Foundation, an initiative with a community focus.
To support its initiatives, the Inspiring Brilliance strategy includes measures to improve productivity and reduce expenses by $175 million to $200 million over the next three years.
Moving forward, Signet anticipates reporting sales of between $1.42 billion and $1.46 billion in the first quarter of fiscal 2022, with same store sales projected to increase by 80% to 84% year-over-year. The company’s full-year sales guidance falls within the range of $5.85 billion to $6.00 billion, with a projected same store sales increase of 14% to 17%.
Useful links:
Signet Jewelers Limited Website
UN Sustainable Development Goals
