Signet Jewelers Ltd (NYSE:SIG), owner of the Kay Jewelers, Zales and Jared chains said it plans to close underperforming stores and invest in its digital platforms as its fourth-quarter results showed a drop in sales.
The New York-listed firm saw its total sales fall to US$2.27bn in the fourth quarter to January 28, down from US$2.39bn a year earlier, and lower than the US$2.30bn consensus forecast.
Signet said its same-store sales fell by 4.5% in the period, more than the 4.2% consensus estimated decline.
The jeweller’s chief executive, Mark Light said: “We are adapting to a challenging retail environment and weak mall traffic.”
Light said the group plans to beef up its platforms for omnichannel sales with “a significant increase in resources directed to our digital ecosystem.”
Signet saw its e-commerce sales fall 2.7% year-on-year in the fourth quarter, which it blamed on technical issues during the holiday period.
Less stores …
The company said it plans to close 165 to 170 stores in its current fiscal year, while also opening 90 to 115 stores, giving around a 1% decline in net selling space.
Signet’s net income in the fourth quarter rose to US$387.8mln or US$3.92 a share, up from US$271.9mln, or US$3.42 a share a year earlier.
For the current year, the firm said it is now expecting same-store sales to be down in the low-to-mid single digits, and for earnings to range from US$7.00 to US$7.40 per share
Consensus forecasts were for earnings per share of US$7.76. this year.
In pre-market trading, Signet shares were 2% lower at US$63.01. The stock has fallen by 31% in the year to date.
Story by ProactiveInvestors