Signet reorganization plan includes off-mall move
Signet Jewelers Ltd. is reorganizing as its looks to grow its business on the heels of a drop in sales and earnings during the holiday quarter.
The jewelry giant, whose brands include Kay Jewelers, Zales, Jared and others, unveiled a new strategy, called "Grow Brand Love,” designed to enhance product assortment and centralize core capabilities. As part of the strategy, Signet said it is focused on real estate “optimization” and expects to transition more than 10% of its mall stores to off-mall locations and e-commerce channels during the next three years, leveraging its average mall lease term of just over two years.
“Our overall Q4 performance and lack of growth over the past several quarters informed our new strategy to grow our business,” said J.K. Symancyk, who took the reins as CEO in November 2024. “We will infuse more style and design-led product into our assortment to accelerate our growth in self-purchase and gifting while expanding our leadership position in bridal To activate our strategy, we are reorganizing our business to drive a brand mind-set and centralizing core capabilities to improve speed, maximize benefits of scale, and deliver organic growth over time.”
Signet’s net income fell to $100.6 million, or $2.30 a share, in the quarter ended Feb. 1, from $626.2 million, or $11.75, in the year-ago period. Adjusted earnings were $6.62 a share, ahead of the $6.25 a share expected by analysts.
Sales declined 5.8% to $2.35 billion, missing estimates of $2.33 billion. Comparable same-store sales were down 1.1%.
Looking ahead, Signet COO and CFO Joan Hilson said the company’s guidance for its current fiscal year reflects sales that assume a “measured consumer environment.”
The company expects sales for its current fiscal year between $6.53 billion and $6.80 billion. Same-store sales are expected to be down 2.5% to up 1.5%. Signet said it expected adjusted earnings for the year to be between $7.31 and $9.10.
Signet operates approximately 2,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones.
