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Weak Holidays Dampen Signet’s Year

Revenue down 0.1% as fourth quarter disappoints.
Apr 3, 2019 11:46 AM   By Rapaport News
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 Sales at Signet Jewelers fell last year as demand tailed off during a disappointing holiday season. 

Same-store sales — at branches open for a year — slipped 0.1% for the fiscal year ending February 2, while total revenue also declined 0.1% to $6.25 billion, the company said Wednesday.

Sales at Kay fell 0.4% to $2.42 billion, with Jared declining 4.3% to $1.14 billion. Revenue at Zales increased 1.3% to $1.26 billion, and Piercing Pagoda climbed 8.7% to $302.5 million.

The company reported a loss of $657.4 million, compared with a profit of $519.3 million the previous year. An impairment charge — a devaluation of the company’s assets — of $286.7 million, recorded during the fourth quarter, contributed to the loss.

“We did not finish the year as strongly as expected, due to a highly competitive promotional environment, continued consumer weakness in the UK, and lower-than-expected customer demand for legacy merchandise collections that impacted our holiday fourth-quarter results,” said Signet CEO Virginia Drosos.

Sales fell 6% to $2.15 billion in the fourth quarter, as revenue from Jared declined 10% to $382.2 million. The company also posted a net loss of $107.9 million for the period, versus a profit of $351.3 million the year before.

That followed a 3.3% rise in sales to $4.09 billion for the first nine months of the fiscal year.

Signet made progress on its Path to Brilliance transformation plan, a three-year program to restructure and fund growth initiatives, Drosos noted. In the first year, the company has saved $85 million and achieved double-digit e-commerce growth.

The retailer expects same-store sales to be down 2.5% to flat during the fiscal year that began in February. Total sales will decline to a range of $6 billion to $6.1 billion, it forecast.

Image: A Jared store in Oregon. (Aboutmovies)
Tags: Jared, kay, Path to Brilliance, Piercing Pagoda, Rapaport News, Signet, Signet Jewelers, Virginia Drosos, zales
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