Signet Jewelers Reports Holiday Season Sales

HAMILTON, Bermuda–(BUSINESS WIRE)–Signet Jewelers Limited (“Signet”) (NYSE:SIG), the world’s largest
retailer of diamond jewelry, today announced its sales for the nine
weeks ended December 31, 2016 (“Holiday Season”).

Holiday Season Summary:

  • Same store sales decreased 4.6% compared to an increase of 5.1% in the
    nine weeks ended January 2, 2016 (“prior year”).
  • Total sales decreased 5.1% compared to an increase of 5.3% in the
    prior year.
  • Total sales at constant currency decreased 3.3% compared to an
    increase of 6.6% in the prior year.
  • Signet is maintaining the low-end of its earnings guidance and
    revising same store sales taking into account the holiday sales
    results and post-holiday sales to-date.

Mark Light, Chief Executive Officer, said, “Signet’s disappointing
holiday results were driven principally by underperformance in its
Sterling division e-commerce business. A preliminary view of market data
suggests that the jewelry category was broadly flat to modestly down
with in-store sales down mid-single-digits and e-commerce sales up
double-digits. Signet’s in-store results were in-line with the jewelry
market, but technical performance issues in Sterling’s e-commerce
platform largely led to Signet’s lower-than-expected results. Sterling’s
challenges in its e-commerce platform were due to recent enhancements
that did not perform as expected when exposed to high holiday volume. We
are investing and directing more resources to improve the functioning of
the platform and the overall customer digital journey.

“Select categories, collections, and other selling channels performed
relatively well. This included diamond fashion jewelry, bracelets,
earrings, Ever Us, Vera Wang Love, and the kiosk selling channels. We
will continue to invest in the long-term growth of our business and
build upon our competitive strengths and leading market position. Signet
continues to focus on solid expense and working capital management
leading to a disciplined capital allocation.

“I would like to thank all Signet team members very much for their
dedication and hard work during the holiday selling period.”


Financial Guidance:


Fourth Quarter



Same Store Sales

(4.8%) to (4.3%)

(4.0%) to (2.0%)
Earnings per Share

$3.91 to $3.98

$3.91 to $4.13
Adjustments of purchase accounting & integration

($0.09) to ($0.07)

($0.09) to ($0.07)
Adjusted Earnings per Share1

$4.00 to $4.05

$4.00 to $4.20
Weighted Average Common Shares

76 million

76 million


Fiscal Year 2017



Same Store Sales

(2.5%) to (2.0%)

(2.5%) to (1.0%)
Earnings per Share

$7.03 to $7.10

$7.03 to $7.25
Adjustments of purchase accounting & integration

($0.35) to ($0.33)

($0.35) to ($0.33)
Adjusted Earnings per Share1

$7.38 to $7.43

$7.38 to $7.58
Signet uses adjusted metrics which adjust for purchase accounting
and integration costs in relation to the Zale acquisition and its
integration into Signet. Adjusted EPS is a non-GAAP measure and is
defined as EPS adjusted for the impact of purchase accounting and
integration costs. Purchase accounting includes deferred revenue
adjustments related to acquisition accounting which resulted in a
reset of deferred revenue associated with extended service plans
previously sold by Zale Corporation. Integration is consulting costs
associated with information technology implementations.

Holiday Season Fiscal 2017 Sales Summary:

Total sales were $1,940.9 million, down $104.2 million or 5.1%, compared
to $2,045.1 million in prior year. Total sales at constant exchange
rates decreased 3.3% compared to prior year. Same store sales decreased
4.6%. Merchandise categories and collections were broadly lower most
notably in the mall and e-commerce selling channels, while select
merchandise and other selling channels performed relatively well such as
diamond fashion jewelry, bracelets, earrings, Ever Us, Vera Wang Love,
and the off-mall and kiosk selling channels.

Signet’s e-commerce sales in the holiday season were $142.5 million,
down $3.5 million or 2.4% compared to $146.0 million in the prior year.
The decline was due principally to the underperformance of recent
enhancements to e-commerce systems across all Sterling Jewelers division
store banners, which use a common platform. These enhancements,
implemented early in 2016, performed poorly when exposed to high holiday
volume resulting in customer communications issues and purchasing

  • Sterling Jewelers division experienced declines across most categories
    with Kay Jewelers declines and weak e-commerce performance being the
    primary drivers.
  • Zale division sales were driven by a decrease at the Zales store brand
    offset in part by an increase at Piercing Pagoda and e-commerce
  • UK Jewelry division total sales declines were driven principally by
    unfavorable foreign currency exchange rates. Same store sales
    decreases were driven primarily by fashion jewelry and beads, most
    notably at H.Samuel, offset in part by higher sales of bridal and
    Same Store     Non-same     Total sales %     Exchange    




Sales store sales at constant translation



Holiday Season    



%, net2

    exchange rate     impact %     %    

(in millions $)

Kay     -4.6     2.2     -2.4           -2.4     792.5
Jared     -4.7     1.0     -3.7           -3.7     363.6
Regional brands     -16.9     -10.9     -27.8           -27.8     44.9
Sterling Jewelers division     -5.2     1.1     -4.1           -4.1     1,201.0
Zales Jewelers     -3.7     2.6     -1.1           -1.1     392.8
Gordon’s Jewelers     -11.7     -16.7     -28.4           -28.4     16.6
Zale US Jewelry     -4.0     1.4     -2.6           -2.6     409.4
Peoples Jewellers     -7.8     0.7     -7.1     1.4     -5.7     62.4
Mappins     -3.4     -6.6     -10.0     1.8     -8.2     9.0
Zale Canada Jewelry     -7.3     -0.2     -7.5     1.4     -6.1     71.4
Zale Jewelry     -4.6     1.2     -3.4     0.3     -3.1     480.8
Piercing Pagoda     4.2     1.4     5.6           5.6     69.6
Zale division     -3.5     1.2     -2.3     0.2     -2.1     550.4
H.Samuel     -4.9     0.3     -4.6     -16.4     -21.0     99.2
Ernest Jones     -2.2     0.7     -1.5     -16.9     -18.4     85.1
UK Jewelry division     -3.7     0.5     -3.2     -16.6     -19.8     184.3
Other segment3           NMF     NMF           NMF     5.2
Signet     -4.6     1.3     -3.3     -1.8     -5.1     1,940.9
Adjusted Signet4                             -5.2     1,942.9
Notes: 1=For stores open for at least 12 months. 2=For stores not
open in the last 12 months. 3= Not meaningful figure. 4= Includes
$2.0 million deferred revenue adjustment related to acquisition
accounting which resulted in a reset of deferred revenue associated
with extended service plans sold by Zale Corporation prior to the
acquisition on May 29, 2014.

Quarterly Dividend:

Signet’s board declared a quarterly cash dividend of $0.26 per share for
the fourth quarter of Fiscal 2017, payable on February 28, 2017 to
shareholders of record on January 27, 2017, with an ex-dividend date of
January 25, 2017.

Conference Call:

There will be a conference call today at 8:30 a.m. ET and a simultaneous
audio webcast and slide presentation available at
The slides are available to be downloaded from the website. The call
details are: Dial-in 1-647-788-4901. Access code 34775745. A replay of
the conference call and a transcript of the call will be posted on
Signet’s website as soon as is practical after the call has ended.

About Signet and Safe Harbor Statement:

Signet Jewelers Limited is the world’s largest retailer of diamond
jewelry. Signet operates approximately 3,600 stores primarily under the
name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry,
H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. Further information
on Signet is available at
See also,,,,,

This release contains statements which are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements, based upon management’s beliefs and expectations
as well as on assumptions made by and data currently available to
management, appear in a number of places throughout this document and
include statements regarding, among other things, Signet’s results of
operation, financial condition, liquidity, prospects, growth, strategies
and the industry in which Signet operates. The use of the words
“expects,” “intends,” “anticipates,” “estimates,” “predicts,”
“believes,” “should,” “potential,” “may,” “forecast,” “objective,”
“plan,” or “target,” and other similar expressions are intended to
identify forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to a number of
risks and uncertainties, including but not limited to general economic
conditions, to general economic conditions, regulatory changes following
the United Kingdom’s announcement to exit from the European Union, a
decline in consumer spending, the merchandising, pricing and inventory
policies followed by Signet, the reputation of Signet and its brands,
the level of competition in the jewelry sector, the cost and
availability of diamonds, gold and other precious metals, regulations
relating to customer credit, seasonality of Signet’s business, financial
market risks, deterioration in customers’ financial condition, exchange
rate fluctuations, changes in Signet’s credit rating, changes in
consumer attitudes regarding jewelry, management of social, ethical and
environmental risks, security breaches and other disruptions to Signet’s
information technology infrastructure and databases, inadequacy in and
disruptions to internal controls and systems, changes in assumptions
used in making accounting estimates relating to items such as extended
service plans and pensions, risks related to Signet being a Bermuda
corporation, the impact of the acquisition of Zale Corporation on
relationships, including with employees, suppliers, customers and
competitors, and our ability to successfully integrate Zale
Corporation’s operations and to realize synergies from the transaction.

For a discussion of these risks and other risks and uncertainties which
could cause actual results to differ materially from those expressed in
any forward looking statement, see the “Risk Factors” section of
Signet’s Fiscal 2016 Annual Report on Form 10-K filed with the SEC on
March 24, 2016 and Part II, Item 1A of Form 10-Q filed November 29,
2016. Signet undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or
circumstances, except as required by law.


Signet Jewelers
James Grant, VP Investor Relations
Bouffard, VP Corporate Affairs