Signet, the largest jewelry retailer in the world, with stores across the United States, Canada and the United Kingdom, reported that same store sales declined 5.2% in the fourth quarter and declined 5.3% in its fiscal 2018 year which ended on February 3.
Same store sales is a critical parameter for retailers in showing how well their sales are compared with the same period a year before.
Signet said it is likely to close more than 200 stores by the end of its fiscal 2019 financial year.
Signet tried to soften the impact of its statement by saying that around 75% of the stores expected to close are in the same mall as another Signet outlet.
The coming year does not promise great things for the jeweler, forecasting same store sales in the low-to-mid single digits in the current financial year, with total sales of $5.9 billion -$6.1 billion.
“Fiscal 2018 was a challenging year for Signet," said Signet Jewelers Chief Executive Officer Virginia C. Drosos. "We gained sales momentum in our Zales stores in the fourth quarter as our strategic initiatives began to take hold, but we experienced challenges at our Kay and Jared stores."
The company announced a three-year company-wide comprehensive strategy to reinvigorate Signet and transform the company with the aim of seeing improved operations and financial performance in fiscal year 2020.”
