Signet’s Q4 profit dips on weak sales

US diamond jewellery retailer Signet reported lacklustre sales in its fourth fiscal quarter but announced a positive financial guidance on the back of brand-oriented growth strategies.

Sales in the quarter ending January 2025 were down 6 per cent to US$2.35 billion from US$2.5 billion a year ago while net income plunged to US$100.6 million from US$617.6 million, representing an 84 per cent decline.

Full fiscal-year sales dipped 6.5 per cent to US$6.7 billion from US$7.17 billion. The company also incurred a loss of US$35.6 million compared to a profit of US$775.9 million in fiscal year 2024. 

“Our overall Q4 performance and lack of growth over the past several quarters informed our new strategy to grow our business,” remarked Signet CEO JK Symancyk. “This transformative strategy is called 'Grow Brand Love' and builds on a strong foundation to create shareholder value.”

Symancyk said the company will infuse more style and design-led products into its offerings to boost growth in the self-purchase and gifting categories while expanding its leadership position in bridal jewellery. 

Meanwhile, the retailer is projecting sales to reach US$6.53 billion to US$6.8 billion in fiscal year 2026.

Chief Operating and Financial Officer Joan Hilson explained, “We are initiating FY26 guidance reflecting sales that assume a measured consumer environment. Our reorganisation plan is expected to fund the reset of incentive compensation with further benefit expected beyond FY26.”

Signet also expects to transition over 10 per cent of mall locations to off-mall and online channels over the next three years as part of its optimisation initiatives.

Signet is a publicly traded company and operates approximately 2,700 stores primarily under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, JamesAllen.com, Rocksbox, Peoples Jewellers, H.Samuel and Ernest Jones. Its operations and supply chain relationships span Africa and India.