Signet Jewelers Q4 sales up 1%, will close 200 stores
Staff Writer |
Signet Jewelers announced its results for the fourth quarter fiscal 2018 ended February 3, 2018.
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Signet's total sales were $2.3 billion, up $23.2 million or 1%, in the fourth quarter.
The total sales increase was driven by the extra 14th retail-calendar week of sales, worth $84.3 million, as well as the addition of R2Net acquired in September 2017 which contributed $64.4 million in sales in the quarter, offset by a year-over-year decline in base same store sales.
Same store sales, which excluded the impact of the 14th week from its calculation, decreased 5.2% in the fourth quarter Fiscal 2017.
R2Net sales were up 35.0% compared to the prior year quarter and had a 90 bps positive impact on total Company same store sales in the quarter.
eCommerce sales in the fourth quarter at banner websites and R2Net were $253.8 million on a 14-week basis, or $247.2 million on a 13 week basis, up 52.8%.
eCommerce sales increased across all divisions and accounted for 11.1% of quarterly sales, up from 7.1% of total sales in the prior year fourth quarter.
Signet's total sales were $6.3 billion, down $155.4 million or 2.4%, compared to Fiscal 2017.
The total sales decline was driven by a decline in base same store sales, partially offset by benefit of the extra 14th retail-calendar week of sales worth $84.3 million, as well as the addition of R2Net acquired in September 2017 which contributed $88.1 million in sales for the year.
Same store sales, which excluded the impact of the 53rd week from its calculation, decreased 5.3% compared to the prior year. R2Net sales were up 29.9% compared to the prior year and had a 40 bps positive impact on total company same store sales.
eCommerce sales at banner websites and R2Net in the fiscal year were $497.7 million on a 53-week basis and $491.1 million on a 52-week basis, up 35.3%.
eCommerce sales increased across all divisions and accounted for 8.0% of annual sales, up from 5.7% in the prior year.
Signet anticipates to close more than 200 stores by the end of Fiscal 2019. As approximately three-quarters of stores expected to close are within the same mall as another Signet banner, the company expects approximately 30 percent of revenue from closed stores to transfer to remaining Signet stores.
The cost reductions are expected to deliver $200 million - $225 million of net cost savings over the next three fiscal years.
The company's preliminary estimates for pre-tax charges related to cost reduction activities over the next three fiscal years is a range of $170 million - $190 million, of which $105 million - $120 million are expected to be cash charges. ■