Jewelry giant reports disappointing holiday results
The parent company of such chains as Kay Jeweler’s, Jared and Zales Jewelers saw its total holiday sales fall over last year as issues related to outsourcing its credit transactions negatively impacted business.
Signet’s total sales for the nine weeks ending Dec. 30 fell 3.1% to $1.88 billion. Same-store sales dropped 5.3%.
Same-store sales at Zales Jewelers rose 4.6%. Signet’s online outlet, R2Net, had a comp-sales gain of 38.6%. Same-store sales declined 10.8% at Key and 5.9% at Jared.
“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 by the mixed performance across our banners and channels,” stated Virginia C. Drosos. “Our overall e-commerce business grew double-digits, and our Zale division, where our strategic initiatives are beginning to take hold unencumbered by the credit transition, delivered same store sales growth with strength in both bridal and fashion. Conversely, progress in our Sterling division was overshadowed by the negative impact of the credit outsourcing transition in stores.”
Signet affirmed its fiscal 2018 same-store sales outlook of down in the mid- single-digit percentage range. The company raised its earnings-per-share outlook to $6.45 to $6.50 from $6.10 to $6.50 to reflect an expected lower tax rate after the tax reform legislation.
Signet’s total sales for the nine weeks ending Dec. 30 fell 3.1% to $1.88 billion. Same-store sales dropped 5.3%.
Same-store sales at Zales Jewelers rose 4.6%. Signet’s online outlet, R2Net, had a comp-sales gain of 38.6%. Same-store sales declined 10.8% at Key and 5.9% at Jared.
“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 by the mixed performance across our banners and channels,” stated Virginia C. Drosos. “Our overall e-commerce business grew double-digits, and our Zale division, where our strategic initiatives are beginning to take hold unencumbered by the credit transition, delivered same store sales growth with strength in both bridal and fashion. Conversely, progress in our Sterling division was overshadowed by the negative impact of the credit outsourcing transition in stores.”
Signet affirmed its fiscal 2018 same-store sales outlook of down in the mid- single-digit percentage range. The company raised its earnings-per-share outlook to $6.45 to $6.50 from $6.10 to $6.50 to reflect an expected lower tax rate after the tax reform legislation.