Signet Jewelers Reports 6.5% Sales Decline and $35.6M Net Loss for Fiscal Year Ending February 1, 2025

Signet Jewelers Limited reported a decline in financial performance for the fiscal year ending February 1, 2025, with total sales decreasing by 6.5% to $6.70 billion, down from $7.17 billion in the previous fiscal year. The company's same-store sales fell by 3.4%, a notable improvement from a 11.6% decline in the prior year. The decrease in sales was attributed to several factors, including a slower-than-expected recovery in engagement purchases, store closures, and challenges related to the integration of its digital brands. The company also faced headwinds from macroeconomic conditions affecting consumer spending.

In terms of profitability, Signet's operating income dropped significantly to $110.7 million, or 1.7% of sales, compared to $621.5 million, or 8.7% of sales, in the previous year. This decline was primarily driven by substantial asset impairment charges totaling $372 million, which included $272.5 million related to goodwill and indefinite-lived intangible assets. The net income attributable to common shareholders was a loss of $35.6 million, contrasting sharply with a profit of $775.9 million in the prior year, resulting in a diluted loss per share of $0.81.

Strategically, Signet has initiated its "Grow Brand Love" strategy aimed at enhancing brand loyalty and expanding its market presence. This includes a focus on product innovation and captivating customer experiences. The company plans to optimize its store fleet by closing underperforming locations and repositioning stores from declining venues. In line with this strategy, Signet has also made significant acquisitions, including Diamonds Direct and Blue Nile, to bolster its bridal offerings and digital capabilities.

Operationally, Signet managed 2,642 retail locations as of February 1, 2025, a reduction from 2,698 the previous year, with a notable shift towards enhancing its eCommerce capabilities. The company reported that eCommerce sales accounted for 22.7% of total sales, amounting to $1.52 billion, although this represented a decline of 7.2% from the prior year. The company also reported a decrease in its workforce, with 27,595 employees as of February 1, 2025, down from 27,991 the previous year.

Looking ahead, Signet anticipates same-store sales to decline between 2.5% and increase by 1.5% for Fiscal 2026, reflecting ongoing uncertainties in consumer spending. The company aims to capitalize on growth opportunities in the self-purchase and gifting segments while continuing to monitor macroeconomic factors such as inflation and geopolitical conflicts that could impact its operations.