Jewellery retailer Signet Jewelers has lowered its guidance for the fourth fiscal quarter as a result of sales during the holiday period were below expectations.
The company’s same-store holiday sales fell by approximately 2% for the 10 weeks that ended January 11. It now expects its sales to be between $2.32 and $2.34 billion, compared with the $2.38 to $2.46 billion previously. Meanwhile, same-store sales are expected decline 2% to 2.5% versus the previously predicted flat to a 3% increase.
“Fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment. Merchandise assortment gaps at key gifting price points impeded our ability to meet that trend,” said Joan Hilson, Signet CFO and CEO.
“Merchandise margin expanded, but less than expected due to the lower fashion mix and a stronger customer response to promotional items. These dynamics are reflected in our updated guidance.”
The company plans to focus on reshaping its customer facing strategies in the areas of marketing, product design, and assortment innovation, while building its leading position in bridal category and larger self-purchase and gifting fashion categories.
Theodor Lisovoy, Managing Editor, Rough&Polished
