Operational and integration challenges on some of Signet Jewelers’ digital banners resulted in lower fulfillment in 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 in 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 year over year, or 6.3%. Same-store sales — which include those from physical stores and ecommerce — decreased 9.6% in the period. Signet began including Blue Nile in same-store sales in Q3 of its fiscal 2024.
For the full year, 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 are not tied to, nor are they impacting the ecommerce channels of our core banners which 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 it all 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 much longer fulfillment times.”
Signet acquired Blue Nile for $360 million in August 2022.
“We are working to resolve these issues and expect to have fixes implemented later this year,” Drosos said.
Hilson elaborated slightly, saying that Signet expects to resolve the issues in its digital banners in the second half of the year.
Signet Jewelers Ltd. is No. 60 in the Top 1000. It is also the highest-ranked retailer in 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 in 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 3 points to the fourth quarter and a further point when excluding our digital banners,” she said.
New stores and investments
Signet expects $160 million to $180 million in 2024 capital expenditures, Hilson said. That includes opening 20 to 30 new stores and renovating about 300 locations. The renovations will mostly be for 200 Kay stores and 50 Jared stores.
Signet also intends to invest between $40 million and $50 million “in digital and technology in support of our consumers and team member experiences,” including connected commerce capabilities.
In the U.K., Signet is closing up to 30 Ernest Jones locations as part of an effort to shift those sales to digital, Hilson said.
“As we look to Fiscal 2025, we are expecting sequential same store sales improvement over the year as engagements gradually recover,” Drosos said in a statement. “We believe we’re positioned to win new customers through our marketing personalization, growing consumer inspired product newness, and aggressive expansion of our service business.”
She also said Signet expects the jewelry 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 in the year-ago quarter.
- Same-store sales decreased 9.6%.
- In North America, Signet same-store sales — which include digital — decreased 10% for a total of $2.35 billion.
For its fiscal year ended Feb. 3, 2024, Signet reported:
- $7.17 billion in sales, down from $7.84 billion the prior year.
- Same-store sales decreased 11.6%
- In North America, Signet same-store sales — which include digital — decreased 11.9% for a total of $6.70 billion.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
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The post Signet Jewelers digital integration falters as sales drop in Q4 appeared first on Digital Commerce 360.
