|Diamond jewelry retailer Signet Jewelers Limited (Signet) has announced its financial results for the 13 weeks ended October 28, 2017 (third quarter Fiscal 2018), reporting same store sales (SSS) down 5 percent.
Signet reports total sales of US$1.157 billion for Q3 Fiscal 2018, down 2.5 percent compared with Q3 Fiscal 2017. Same store sales are reported down by 5 percent compared with the similar 2017 period. Same store sales were reportedly negatively impacted due to weather-related incidents, as well as disruptions related to the credit outsourcing transition.
Sales declines were primarily driven by soft bridal sales and a lower number of customer transactions, says Signet, partly offset by strong eCommerce sales of US$80.7 million, a 56.4 percent increase, including the impact of the recently-acquired R2Net.
Signet Jewelers CEO Virginia C. Drosos says, "Signet had a challenging third quarter. In addition to an anticipated sequential slowdown in our same store sales, unfavorable weather-related incidents, along with unexpected disruptions during the transition of our credit services, further negatively impacted results. Encouragingly, within this backdrop, we advanced our strategic priorities, which are beginning to deliver results."Continues Drosos: "We are seeing positive customer reaction to enhancements in our OmniChannel experience, as well as streamlined marketing messages and improved fashion assortment. We have also implemented several synergies from the R2Net acquisition ahead of plan. Unfortunately, these wins are being overshadowed by the systems disruptions and significant process changes associated with the outsourcing of our credit portfolio, with particular impact at Kay. While the identified systems issues are behind us, we expect some credit process disruption to continue and to negatively impact our fourth quarter and full-year performance. As a result, we now expect our fourth quarter same store sales to be down low- to mid-single digits, leading to Fiscal 2018 same store sales down mid-single digits and earnings ranging from $6.10 to $6.50 per share."