Same-store sales at Signet’s UK division fall 3.8% in Q4

Jewellery retail giant Signet Jewelers has reported a plunge in sales in the fourth quarter of its 2017 financial year.

For the 13 weeks ending January 28, 2017, Signet reporting a 3.8% fall in same-store sales across its UK retail division – comprising Ernest Jones and H Samuel – to $227.6m (£187m).

When compared with the same period in the previous year, same-store sales fell 5.3% at H Samuel to $119.7m (£98m) and 2.1% at Ernest Jones to $107.9m (£88.7m).

Signet said the same-store sales decline was driven principally by lower sales in fashion jewellery, fashion watches, and gifts. However, it said the decline was partially offset by stronger sales of prestige watches and bridal jewellery.

The average transaction value at the UK jewellery division increased by 8%, but this was offset by an 11.8% decrease in the number of transactions made.

Overall Signet’s total sales for the fourth quarter of the year stood at £2.3bn (£1.9bn) – down $122.7m (£100m) or 5.1%, compared with an increase of 5.1% in the 13 weeks ending January 30, 2016.

Mark Light, CEO, said: “Signet had a challenging fourth quarter and fiscal year, but we delivered top-and-bottom lines for the fourth quarter within our revised expectations. This was driven principally by performance from select categories and collections including diamond fashion jewellery, bracelets, and earrings.”

He said the company is adapting to a “challenging” retail environment, with Signet adopting an “intense focus” on its omni-channel approach and a “significant increase in resources” directed into its e-commerce channels.

Across the entire 2017 financial year, Signet’s total sales were down 2.2% to $6.4bn (£5.3bn) compared with the preceding year. Same-store sales decreased 1.9% compared with an increase of 4.1%.

However, the UK jewellery division saw a same-store sales increase of 0.1%, with average transaction value up 6%. This was driven by increased sales of bridal and prestige watches.