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Signet Jewelers Idea Proposal (SIG)

Signet Jewelers Idea Proposal (SIG)
 

Will Signet bounce back with improved sales for Mother’s Day?

Report Available: May 22, 2017

 

Blueshift’s initial research shows SIG off to a slow start in 2017 as holiday sales and Valentine’s Day sales were both disappointing. A sexual harassment scandal hasn’t helped matters. The company has vowed to improve its e-commerce platform, which it blamed for poor sales performance earlier this year, in time for Mother’s Day in hopes it spurs sales for the last remaining major jewelry gift-giving occasion of the year.

 

Observations

  1. SIG’s Q4 beat earnings but fell short on revenue, which was 5.4% lower than a year ago. Overall same-store sales fell 4.5% in the quarter, as Zales was down 5.2% and Sterling (Jared and Kay) was off 4.9%. Gross margin fell to 41.7% of sales. The company expects same-store sales growth to fall in the low- to mid-single digits. The company was the worst performing stock in the first four months of 2017.
  2. SIG is in the middle of a sexual harassment and discrimination scandal brought on by former employees of SIG’s Sterling Jewelers. They are also accusing Sterling of wage violations and women being passed over for promotions. SIG has brought in a former federal judge to help with its workplace policies and procedures to address these complaints.
  3. SIG is upgrading its e-commerce platform in time for Mother’s Day after the company said technical difficulties led to subpar holiday sales as the platform could not keep up with surging demand at the time. Kay is offering 30% off personalized jewelry and free 2nd day shipping with no minimum. Jared is promoting its Mother’s Day Pandora charms and gift sets. And Zales is offering 30% off its selection storewide.
  4. Blueshift’s Feb. 24 report said none of SIG’s three main retailers had positive year-to-year store sales for Valentine’s Day. In fact, Zales and Jared sales were worse than a year ago, while Kay sales were mixed. This continues the trend observed in Blueshift Research’s Jan. 5 report, which showed lackluster holiday sales for SIG. Slow traffic and fewer customers willing to make purchases were the primary culprits. SIG’s collections from Ever Us and Vera Wang were popular and sold well. PNDORA was popular, but the line allowed customers to spend less for a Valentine’s gift.

 

How were Mother’s Day sales at Kay, Zales, and Jared? How did the branded collections perform? How were online sales? What were customers buying? How was customer spending? How did Pandora perform at Jared? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Kay, Zales and Jared personnel.

 

Companies: Signet Jewelers Ltd. (SIG)

 

Research Begins: May 15, 2017