Sales at Signet Beat Expectations, but Coronavirus Forces Cost Cutting
March 29, 20
Signet, the world's largest retailer of diamond jewelry, reported an improved performance for the last quarter of 2020, but will be borrowing $900m as it faces the uncertainty of coronavirus.
The company, whose brands include Kay Jewelers, Zales, Jared, James Allen, Peoples and Piercing Pagoda, last week closed all its 3,200 stores.
It saw same-store sales grow 2.3 per cent overall and 2.9 per cent among those (all but 450) in North America.
Signet Jewelers Ltd's revenue for Q4 of 2020 was $2.15 billion, unchanged from Q4 of 2019.
The company's CEO, Virginia C. Drosos, said: "Prior to this crisis, our Signet team delivered results ahead of expectations for the fourth quarter and Fiscal 2020. Moreover, we delivered our best overall holiday business performance in four years.
"What's paramount now is that we are moving quickly and aggressively to strengthen Signet's financial flexibility by reducing capital expenditures, driving transformational cost savings, and accelerating optimization of our real estate footprint."
Meanwhile, the New York Times reports that Signet Jewelers Ltd has reached a $240m settlement of a shareholder lawsuit accusing the company of concealing sexual harassment allegations against senior executives and losses in its customer financing credit portfolio.