Operational and integration challenges on a few of Signet Jewelers’ digital banners resulted in lower success within the retailer’s fiscal 2024 ended Feb. 3, CEO Gina Drosos said in a March 20 earnings call with investors.
These digital issues have continued into Signet’s fiscal 2025, Drosos added. The challenges with integrating subsidiary Blue Nile with production partners resulted in lower conversion rates within the last six weeks of Signets fiscal Q4. That reduced overall North American same-store sales by one point, she said.
Signet Jewelers Limited reported that total sales for its fiscal Q4 were $2.5 billion. That’s down $168.6 million 12 months over 12 months, or 6.3%. Same-store sales — which include those from physical stores and ecommerce — decreased 9.6% within the period. Signet began including Blue Nile in same-store sales in Q3 of its fiscal 2024.
For the complete 12 months, Signet sales decreased to $7.17 billion from $7.84 billion in its fiscal 2023.
In North America, Signet’s Q4 total sales were $2.4 billion, which is a $152.9 million (or 6.1%) decrease. Meanwhile, same-store sales declined 10%, 1% of which Signet attributes to the digital integration issues.
Digital integration issues hold down two Signet brands
“These issues are solely related to the James Allen and Blue Nile integration and usually are not tied to, nor are they impacting the ecommerce channels of our core banners that are performing well,” said Joan Hilson, chief financial, strategy and services officer.
Drosos said the digital operational issues with its James Allen and Blue Nile were related to replatforming.
“Frankly, we thought we had all of it wired and that the pipes were connected well but they weren’t,” Drosos said. “And we had, unfortunately, some problems integrating Blue Nile with its production partners, which caused us to see a dip in conversion with for much longer success times.”
Signet acquired Blue Nile for $360 million in August 2022.
“We’re working to resolve these issues and expect to have fixes implemented later this 12 months,” Drosos said.
Hilson elaborated barely, saying that Signet expects to resolve the problems in its digital banners within the second half of the 12 months.
Signet Jewelers Ltd. is No. 60 within the Top 1000. It’s also the highest-ranked retailer within the database’s Jewelry category. The Top 1000 Database ranks North America’s largest online retailers by their annual web sales. Before Signet acquired it, Blue Nile ranked No. 143 within the Top 1000.
Signet holiday sales
Early Valentine’s Day shopping was down mid-teens, Hilson said, adding that that’s consistent with January’s performance.
“Since Valentine’s Day, same-store sales have improved notably up 2 to three points to the fourth quarter and an extra point when excluding our digital banners,” she said.
Recent stores and investments
Signet expects $160 million to $180 million in 2024 capital expenditures, Hilson said. That features opening 20 to 30 recent stores and renovating about 300 locations. The renovations will mostly be for 200 Kay stores and 50 Jared stores.
Signet also intends to take a position between $40 million and $50 million “in digital and technology in support of our consumers and team member experiences,” including connected commerce capabilities.
Within the U.K., Signet is closing as much as 30 Ernest Jones locations as a part of an effort to shift those sales to digital, Hilson said.
“As we glance to Fiscal 2025, we expect sequential same store sales improvement over the 12 months as engagements progressively recuperate,” Drosos said in a press release. “We imagine we’re positioned to win recent customers through our marketing personalization, growing consumer inspired product newness, and aggressive expansion of our service business.”
She also said Signet expects the jewellery category overall to be down mid-single digits in 2024.
Signet Jewelers earnings
For its fiscal Q4 ended Feb. 3, 2024, Signet reported:
- $2.49 billion in sales, down from $2.67 billion within the year-ago quarter.
- Same-store sales decreased 9.6%.
- In North America, Signet same-store sales — which include digital — decreased 10% for a complete of $2.35 billion.
For its fiscal 12 months ended Feb. 3, 2024, Signet reported:
- $7.17 billion in sales, down from $7.84 billion the prior 12 months.
- Same-store sales decreased 11.6%
- In North America, Signet same-store sales — which include digital — decreased 11.9% for a complete of $6.70 billion.
Percentage changes may not align exactly with dollar figures resulting from rounding. Check back for more earnings reports.
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