Signet Jewelers Limited (NYSE: SIG) announced fourth quarter financial results. Same store sales declined 5.2% in the fourth quarter and declined 5.3% in full year fiscal 2018. Signet is launching a three-year comprehensive transformation plan to reposition the Company to be a share gaining, OmniChannel jewelry category leader. The three-year plan includes cost efficiencies, a portion of which will be reinvested in growth initiatives including 1) eCommerce growth; 2) OmniChannel capabilities; and 3) innovation in product assortment and the store experience. We believe this plan will enable the Company to drive long-term sustainable, profitable sales growth and create value for shareholders.
“Fiscal 2018 was a challenging year for Signet," said Signet Jewelers Chief Executive Officer Virginia C. Drosos. "We gained sales momentum in our Zales banner in the fourth quarter as our strategic initiatives began to take hold, but we experienced challenges at our Kay and Jared banners, including execution issues related to the first phase of our credit outsourcing transaction."
She continued, “Today we are announcing a three-year company-wide comprehensive strategy to reinvigorate Signet and transform the Company to be a share-gaining, OmniChannel jewelry category leader. Our 'Signet Path to Brilliance' plan will advance our strategic priorities across our Customer First, OmniChannel and Culture of Agility and Efficiency pillars. Plan initiatives build on the strength of the Signet banners and focus on 1) investing in eCommerce and product innovation, 2) enhancing customer value, and 3) increasing cost competitiveness. We will also look to further optimize our real estate portfolio through opportunistic reinvestment in innovative store concepts, relocations to off-mall locations, and strategic store closures. Looking ahead, Fiscal 2019 will be an important transition year as we implement our transformation plan, and we expect to see improved operational and financial performance beginning in Fiscal 2020.”
Signet has launched an Innovation Engine and is investing further in data analytics and consumer insights, including a system to track customer net promoter score. The Company is also addressing gaps in the customer value proposition. These investments are expected to result in improved product assortment and faster time to market, as well as greater marketing and promotional effectiveness.
Signet Jewelers reached a new 52 week low of $38.10 on Wednesday.