Signet closes year with quarterly sales and earnings gains, reveals new growth strategy
International jewelry retailer Signet Jewelers Limited reported total sales of $2.19 billion for the fourth quarter on Thursday, as well as improvements in its bottom line. The company also outlined the next stage in its growth plan.
The retailer’s sales for the fourth quarter ended January 30, 2021, represented a 1.5% increase compared to revenues of $2.14 billion in the prior-year period. Same store sales at the company rose 7.0%.
Signet, which owns chains including Kay Jewelers, Zales, Jared, H.Samuel and Ernest Jones, saw particular growth in its e-commerce sales, which increased 70.5% year over year, accounting for 23.4% of the company’s total quarterly revenues. However, this progress was largely offset by a 4.2% decline in brick-and-mortar sales.
By region, the company’s same store sales in North America grew 10.4%, while international same store sales declined 28.3%, as year-over-year e-commerce sales growth of 115.1% was offset by a 56% decrease in brick-and-mortar same store sales.
Quarterly net income attributable to common shareholders at Signet was $245.7 million, or $4.12 per diluted share, up from $178.8 million, or $3.14 per diluted share, in the prior-year period.
“This quarter marked an important milestone for Signet as our team delivered a strong fourth quarter and third year of the company's Path to Brilliance transformation,” commented Signet CEO Virginia C. Drosos in a release. “These results reflect the exceptionally hard work and resilience of our Signet team members in a uniquely challenging time.”
For the full fiscal year, Signet's total sales came to $5.2 billion, falling 14.8% from $6.1 billion in the previous year. Overall same store sales decreased 10.8% year over year, while e-commerce sales rose 57.9% to $1.2 billion.
The annual net loss at the company was $48.7 million, or $0.94 per diluted share, compared to income of $72.6 million, or $1.40 per diluted share, in the prior year.
Drosos also revealed that Signet is entering the next phase of its growth strategy, which has been dubbed “Inspiring Brilliance.” According to the executive, “it is focused on winning in our big banners, categories and countries; accelerating services revenue; broadening our mid-market with expansion in the accessible luxury and value segments; and accelerating digital commerce.”
The main pillars of the plan include using data-driven insights to offer a more personalized customer experience and developing the company’s omnichannel strategy to integrate its physical and digital footprints.
As part of this new phase, the group will also be renewing its focus on corporate responsibility and has therefore joined the UN Global Compact and the Sustainability Accounting Standards Board Alliance, and launched the community-focused Love Inspires Foundation.
In order to offset the investments necessary for these initiatives, Inspiring Brilliance also includes a range of productivity measures expected to reduce Signet’s expenses in the range of $175 million to $200 million over the next three years.
Looking forward, Signet expects to report sales of between $1.42 billion and $1.46 billion in the first quarter of fiscal 2022, reflecting a year-over-year increase in same store sales of between 80% and 84%. The company’s full-year sales guidance is in the range of $5.85 billion to $6.00 billion, with same store sales expected to increase between 14% and 17%.
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