Signet Jewelers Reports 3.1% Sales Decline and Net Income Drop in Q3 Fiscal 2025

Signet Jewelers Limited reported a decline in financial performance for the third quarter of fiscal 2025, with total sales of $1.35 billion, a decrease of 3.1% compared to $1.39 billion in the same period last year. The company experienced a net income of $7.0 million, down from $11.7 million in the prior year, resulting in a basic earnings per share of $0.12, compared to $0.07 in the previous year. For the year-to-date period, total sales reached $4.35 billion, down 6.9% from $4.67 billion, with a net loss of $39.4 million compared to a net income of $184.2 million in the prior year.

The decline in sales was attributed to several factors, including store closures, the divestiture of the UK prestige watch business, and adverse weather conditions impacting consumer traffic. Additionally, the company faced challenges in its digital operations, particularly with the integration and re-platforming of its digital banners, which affected online sales. The North America segment saw a 2.3% decrease in sales, while the International segment experienced a more significant decline of 11.4%, primarily due to the aforementioned divestiture.

Strategically, Signet has been focusing on its "Inspiring Brilliance" strategy, which aims to enhance its market position through investments in digital capabilities and the expansion of its accessible luxury portfolio. The company has also made significant acquisitions, including Diamonds Direct and Blue Nile, to strengthen its market presence. However, it has also undertaken restructuring efforts, including the closure of underperforming stores and the reorganization of its UK operations to improve profitability.

Operationally, Signet's customer engagement metrics showed mixed results, with same-store sales down 0.7% in the third quarter, a notable improvement from a 11.8% decline in the prior year. The average transaction value in North America remained flat, while the International segment saw a 13.4% decrease. The company operated 2,655 retail locations as of November 2, 2024, with plans for continued investment in store renovations and digital advancements.

Looking ahead, Signet anticipates same-store sales to decline by 2% to 3% for the full fiscal year, with expectations for a positive holiday performance driven by targeted marketing and new product offerings. The company remains cautious about macroeconomic factors, including inflation and geopolitical tensions, which could impact consumer spending and overall business performance.