Rapaport News




Advanced search
Latest Articles
Rough Markets
Polished Markets

Signet Holiday Sales Disappoint

Disruptions to the jeweler's outsourced credit program dents its performance for the season.
Jan 10, 2018 12:54 PM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Signet Jewelers’ holiday sales fell 3% as issues relating to outsourcing its credit transactions adversely impacted the business.

Signet in October sold its prime credit program to Alliance Data Systems for $960 million, meaning that credit purchases were now outsourced to the third party rather than extended by Signet. However, disruptions in the system, primarily at its Kay Jewelers stores, put a dent in the important holiday period.

Signet’s total sales came to $1.88 billion, while same-store sales declined 5.3% for the nine-week period that ended December 30.

“During the holiday season, we made positive progress on our strategic priorities, offset primarily by the negative impact of the credit-outsourcing transition, as evident [from] the mixed performance across our banners and channels,” said Signet CEO Virginia Drosos.

Sales at the Sterling Jewelers division, which consists of Kay and Jared, slid 4.5% to $1.15 billion, and same-store sales dropped 8.5%. Its UK division also disappointed, with sales down 4% to $177.1 million and same-store sales slumping 10.3%.

Signet’s strongest performer was its Zale division, where sales rose 1% to $556.2 million, and same-store sales increased 4%, thanks to a strong performance in bridal and fashion jewelry, the company noted. Its e-commerce business jumped 48% to $210.5 million, driven by the addition of James Allen, which the company acquired earlier in the year.

The disappointing results followed a string of positive reports about the holiday season, with Mastercard SpendingPulse reporting a 5.9% rise in overall jewelry sales across the US during the two-month period.

Signet shares slumped 7% in Wednesday-morning trading on the New York Stock Exchange.

Image: Tooykrub/Shutterstock
Tags: credit, holiday season, holidays, Rapaport News, retail, Signet, Signet Jewelers
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us