Image credit: Kay Jewelers
Virginia C. Drosos, Chief Executive Officer: "Despite considerable macro hurdles, the Signet team delivered strong holiday performance. Our results were driven by 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."
Signet’s preliminary total sales for the Holiday Season were $1.8 bn, flat to last year; preliminary same-store sales (SSS), including physical store sales and eCommerce sales improved 5.6% year over year; eCommerce sales were up 60.8% y-o-y. Signet's 2,866 stores reflect brick and mortar SSS declined of 4.1%. As of January 2nd, the Company had closed 355 of its planned 380 store closures this fiscal year.
In North America, preliminary same-store sales, including physical store sales and eCommerce sales increased 7.8%; transactions rose 4.4% and average transaction value increased 1.6%; traditional mall same-store sales, including physical store sales and eCommerce sales were slightly negative while off-mall formats were positive; eCommerce sales grew 57.5% and brick and mortar sales declined 0.8% on a SSS basis; both bridal and fashion category sales grew in the double digits.
UK governmental lockdown resulted in a same-store sales (including physical store sales and eCommerce sales) decline of 19.2% to last year, though the impact was partially offset by 92.8% growth in eCommerce sales.
Signet's quick increase of eCommerce fulfillment capacity to five times that of last holiday, accuracy in forecasting and valued relationships with distribution partners allowed the Company to successfully deliver 98% of North America customer orders on time this Holiday Season.
According to the company, its Fourth Quarter Fiscal 2021 guidance for the SSS will be up 4% to 5% with total sales of $2.10 to $2.12 bn; and the operating income will be around $255 - $270 mn.
Signet's Board of Directors has elected to maintain the temporary suspension of the dividend program on the common shares and pay the February quarterly dividend on its preference shares in kind.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
