Today, Signet Jewelers announced that it is planning to close more than 150 of its stores in fiscal 2020 as part of its turnaround plan.
Signet Jewelers is the parent firm of Zales, Jared, and Kay jewellers. It is recovering from a weak holiday season that forced it to reduce its profit outlook. It has been under pressure as the foot traffic at malls have dropped and the industry has increasingly depended on promotions to get sales.
In a statement, Virginia C. Drosos, the Chief Executive Officer of the company, stated: “We did not finish the year as strongly as expected due to a highly competitive promotional environment, continued consumer weakness in the UK, and lower than expected customer demand for legacy merchandise collections that impacted our holiday fourth quarter results.”
For the fourth fiscal quarter of fiscal 2019, ended February 2, same-store sales dropped by 2 percent. For the year, they dropped by 0.1 percent. Today, Signet said that it is expecting that in fiscal 2020 that same-store sales will plunge between a range of a 2.5 percent decline and flat. It is expecting total sales amounting to $6 billion.
Year to date, the shares of Signet are down by 12.5 percent.
As part of the planned turnaround of the company, Signet has disclosed that it is focusing more on marketing, products, and online business.