Signet Jewelers Limited, a prominent diamond jewelry retailer known for brands like Kay Jewelers, Zales, Jared The Galleria Of Jewelry, and H.Samuel, recently experienced a steep drop in its shares, plummeting over 22% due to underwhelming sales performance. The company attributed this decline to unexpected reductions in its legacy product lines and a decrease in foot traffic during the crucial gifting weeks in December.
For the nine weeks ending on January 5, 2019, Signet reported a 1.3% decrease in same-store sales, prompting a revision of its anticipated fourth-quarter results. Signet now projects a further drop in same-store sales, with expectations ranging from 1.6% to 2.5%. Additionally, the company adjusted its predicted GAAP earnings per share to fall between $2.32 and $2.53, a significant departure from the previously estimated range.
Looking ahead to the full fiscal year of 2019, Signet forecasts flat same-store sales, with GAAP earnings per share expected to be between $8.16 and $7.93. The retailer also anticipates total sales of $6.26 billion for the year.
In response to these disappointing figures, Signet’s CEO, Virginia C. Drosos, hinted at potential store closures and product adjustments in the near future. Drosos outlined the company’s commitment to enhancing profitability through various strategies, including optimizing cost structures, right-sizing store bases, and improving inventory management. She also highlighted plans to enhance the product assortment, personalize marketing efforts, improve promotional effectiveness, expand service offerings, and bolster e-commerce capabilities to create a more seamless and engaging shopping experience for customers across all channels.
Drosos announced that Signet will reveal its updated plans for fiscal year 2020 during the fourth-quarter earnings report in March. This strategic approach seeks to address the challenges faced by the company and drive growth in the upcoming year.
For more information on Signet Jewelers Limited and its operations, visit their official website here. Additionally, for insights into the latest trends and developments in the jewelry industry, check out this informative article here.
