US performance key ingredient behind Signet’s Q3 success

Gina Drosos, Signet Jewelers CEO.

Signet continued to build on its positive year in Q3, posting a same-store sales rise of 1.6% to $1.19 billion.

In its Q3 report for the 13 weeks ending November 3, 2018, the firm, which has an international portfolio of 3,500 stores, saw its total sales rise to $1.19 billion, up 3.0%

This number was up 3.3% from the prior year quarter on a constant currency basis rise after a positive same-stores performance in North America.

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The group primarily operates under the name brands Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and JamesAllen.com.

Same store sales increased at Zales by 2.8%, and Piercing Pagoda by 16.2%. James Allen grew by 13.6%, while Kay same store sales rose by 0.7%.

Away from the US, Signet did not do so well on internationally and saw same store sales slide by 3.1%, with Ernest Jones and H Samuel posting a decrease of 2.8% and 3.5% respectively.

The report outlines that the results internationally were in part caused by lower sales in diamond jewellery and fashion watches, despite a positive return from prestige watches.

Signet chief executive officer, Virginia C. Drosos, stated: “In the third quarter, we delivered positive same store sales growth, with a return to positive same store sales in our Kay banner, further momentum at Piercing Pagoda and Zales, and double-digit increases in eCommerce sales.

“As we enter the holiday season, amid a highly competitive market and with key selling weeks ahead, we are keenly focused on delivering on our holiday plans and implementing the beginning stages of our transformation initiatives in our stores and on our websites. While still early, we believe the initiatives underway will serve as a foundation for our future efforts as we move along our transformation journey.”

In March of 2018, the company announced a three-year Signet Path to Brilliance transformation plan to reposition the company to be an OmniChannel jewelry category leader.

As per the report, the company said it continues to expect its transformation plan to deliver $200 million – $225 million of net cost savings over the next three fiscal years.

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