Signet Jewelers Limited has released its financial outcomes for both the fourth quarter and the full fiscal year of 2024, reflecting a challenging period across many of its brands and territories.
Overview of Financial Results
For the fourth quarter of fiscal year 2024, ending on February 3, 2024, Signet reported total sales amounting to $2.5 billion, representing a decrease of $168.6 million or 6.3% compared to the corresponding quarter of the previous fiscal year. When adjusted for constant currency, this decline stands at 6.6%.
A noteworthy component of this quarter’s sales includes $103.2 million attributed to an additional 53rd week. However, this was partly negated by around $25 million in lost sales from the divestment of U.K. prestige watch locations.
The company’s same store sales (SSS) saw a 9.6% decrease from the previous year, indicating a challenging period.
North America Segment
In North America, Signet’s sales reached $2.4 billion, marking a 6.1% decrease from the fourth quarter of the preceding fiscal year. This downturn reflects a 0.6% drop in average transaction value (ATV), compounded by fewer transactions. Notably, SSS in this region plummeted by 10.0%, with digital integration challenges at James Allen and Blue Nile adversely affecting performance by approximately 1%.
International Segment
Internationally, Signet recorded sales of $141.7 million, a 7.5% decline (11.4% on a constant currency basis) compared to the prior year’s quarter. This was primarily due to the sale of prestige watch locations, evidenced by a 10.4% decrease in ATV.
Full Fiscal Year 2024 Performance
For the entire fiscal year 2024, Signet announced total sales of $7.2 billion, down 8.6% from the previous year, with constant currency adjustments mirroring this decline. SSS across the board fell by 11.6%.
North America Full-Year Results
The North American market experienced sales of $6.7 billion, an 8.0% reduction from the previous year, despite a 2.4% increase in ATV, partly bolstered by Blue Nile’s performance. However, SSS in North America declined by 11.9%.
International Full-Year Results
Internationally, sales amounted to $430.7 million, decreasing by 8.4% with a slight 0.6% drop in ATV. On a constant currency basis, sales declined by 10.3% for the year, with SSS down by 5.3%.
Looking Ahead: 2025 Strategy
Signet has outlined its strategic plans for 2025, earmarking capital expenditures between $160 million to $180 million. These investments will fund the opening of 20 to 30 new stores and nearly 300 renovations, particularly focusing on Kay, Jared, and Diamonds Direct stores. Additionally, there is a significant emphasis on enhancing Connected Commerce capabilities alongside digital and technological advancements.
