Signet Jewelers Limited, the global jewelry retailer that owns popular chains like Kay Jewelers and Zales, concluded its fiscal year with positive results as sales and earnings increased in the fourth quarter. The company reported a total of $2.19 billion in sales for the quarter, representing a 1.5% rise compared to the same period last year. This growth was driven by a 7.0% increase in same-store sales and a significant surge in e-commerce sales, which soared by 70.5% year over year.

Although Signet experienced overall positive results, it did face a 4.2% decline in brick-and-mortar sales, underscoring the ongoing shift towards online shopping in the jewelry industry. However, same-store sales in North America saw substantial growth of 10.4%, while international same-store sales declined by 28.3%, mainly due to a significant decrease in brick-and-mortar sales.

Quarterly net income attributable to common shareholders at Signet reached $245.7 million, up from $178.8 million in the previous year. This increase in profitability testifies to the success of Signet’s ongoing transformation plan, known as the “Path to Brilliance.” Virginia C. Drosos, Signet CEO, credited the dedication and resilience of the Signet team for their strong performance in a challenging retail environment.

For the entire fiscal year, Signet’s total sales amounted to $5.2 billion, representing a 14.8% decrease compared to the previous year. Same-store sales experienced an overall decline of 10.8%, while e-commerce sales showed significant growth, increasing by 57.9% to $1.2 billion. The company reported an annual net loss of $48.7 million, primarily due to the impact of the COVID-19 pandemic on brick-and-mortar sales.

Moving forward, Signet is embarking on the next phase of its growth strategy, known as “Inspiring Brilliance.” This strategy focuses on excelling in major brands, categories, and countries while accelerating revenue from services. Additionally, it aims to expand in the accessible luxury and value segments, and enhance the company’s digital commerce capabilities.

As part of its growth strategy, Signet plans to enhance the customer experience by utilizing data-driven insights to personalize interactions. The company also aims to integrate its physical and digital presence by improving its omnichannel strategy. Moreover, Signet is recommitting to corporate responsibility and has joined the UN Global Compact and the Sustainability Accounting Standards Board Alliance. They have also launched the Love Inspires Foundation, a community-focused initiative.

To support these initiatives, Signet has implemented several productivity measures expected to reduce expenses by $175 million to $200 million over the next three years. This will help offset the investments required for the company’s growth plans.

Looking ahead, Signet anticipates strong sales performance in the first quarter of fiscal 2022, with projected sales between $1.42 billion and $1.46 billion. The company’s full-year sales guidance is expected to range between $5.85 billion and $6.00 billion, with an estimated increase in same-store sales between 14% and 17%.

Signet’s strong performance in the fourth quarter, along with its new growth strategy, positions the company for success in a rapidly evolving retail landscape. By leveraging digital capabilities, prioritizing customer experience, and maintaining a commitment to corporate responsibility, Signet Jewelers is well-equipped to continue its transformation and gain market share in the jewelry industry.

Useful links:
Signet Jewelers Investor Relations
Signet Jewelers Corporate Responsibility