Signet announces holiday sales powered by e-commerce, raises fourth quarter guidance

By

Gabriella Lacombe

Published
Jan 15, 2021

Hamilton, Bermuda-based diamond jewelry retailer Signet saw strong holiday sales for the 9-week period ended January 2, 2021, seeing a significant boost in e-commerce sales.

The positive results were driven by the company's "new digital and fulfillment capabilities, increasingly personalized and insight-based marketing, banner portfolio differentiation, and a strong merchandising strategy that included competitive newness and a strengthened core assortment -- all of which increased conversion, attracted new customers, and increased market share," according to Virginia C. Drosos, chief executive officer.

Total sales for the holiday season were $1.8 billion, flat to last year. Total same store sales increased 5.6% year over year, while e-commerce sales were up 60.8% year over year. With the Covid-19 pandemic impacting in-person shopping, Signet's brick-and-mortar same store sales declined 4.1% year over year. 

The company's e-commerce sales increased by 57.5% in its North America market and 92.8% internationally. According to the company, it was able to increase its e-commerce fulfillment capacity to five-times that of last holiday season. 

Both Signet's bridal and fashion category sales grew in the double digits on a same store sales basis "reflecting competitive product newness and strengthened core assortment," the company said. 

In response to the strong performance, the company—which operates brands including Kay Jewelers, Zales and Piercing Pagoda, among others—raised its fourth quarter guidance. Now, the company is expecting same store sales for the quarter to be up 4% to 5% with total sales of $2.10 to $2.12 billion.

"Despite considerable macro hurdles, the Signet team delivered strong holiday performance – an achievement that demonstrates the power of our multi-year Path to Brilliance transformation strategy and the agility, innovation, and determination of our people," said Drosos. 

"Our sales momentum coupled with strong profit generation are reflective of our team's excellent execution and new ways to help our customers 'Celebrate Life' and 'Express Love' whenever and however they desire to shop."

By the end of the season, the company said it was able to pay down the full balance of its ABL revolving facility. 

As of January 2, the company has completed 355 store closures as part of a plan to close at least 380 stores this fiscal year.