Founded in 1949, and headquartered in Hamilton, Bermuda, Signet Jewelers (SIG - Free Report) is a retailer of diamond jewelry, watches as well as other products. The company operates in the U.S., Canada, U.K., Puerto Rico, the Republic of Ireland, and the Channel Islands.
The company operates through the following divisions: Sterling Jewelers, Zale and UK Jewelry.
Shares Plunge on Weak Holiday Sales
On January 10, the jewelry retailer announced its sales for the 9 weeks ended December 30, 2017 (Holiday Season).
Total sales fell 3.1% to $1,881.7 million from $1,940.9 million in the prior year, while same store sales fell 5.3%. On a constant currency basis, total sales declined 3.9%. However, e-commerce sales in the holiday season surged 48%.
Shares fell about 7% after the report.
The company had reported lackluster results for Q3, with lower-than-expected revenues for the eighth time in last ten quarters.
The Bottom Line
The jewelry retailer has been facing headwinds due to the changing retail landscape. Aggressive promotions and low mall traffic have hurt sales, even though e-commerce sales have been rising.
Further, “Retail – Jewelry” industry is current ranked 236 out of 265 Zacks industries, suggesting weakness in the short-to-mid term.
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