News in Brief
- Signet Jewelers will shut its James Allen retail website in the second fiscal quarter, which ends in early August, the company announced in its annual results on Thursday.
- Signet will repackage the brand as a “proprietary collection” within Blue Nile, its other major e-commerce brand. “Complementary products and styles” will move over to that site.
- Rocksbox, which sells secondhand jewelry, will also become a distinct collection within Kay Jewelers, Signet’s largest store brand, during the current fiscal year. Rocksbox will operate as part of the Kay team rather than as a stand-alone entity, Signet said in its 10-K annual report.
- Group sales were essentially flat in the fourth fiscal quarter that ended January 31, down 0.3% year on year to $2.35 billion. Sales for the full fiscal year were up 1.6% to $6.81 billion.
- Group net profit jumped to $250 million for the fourth fiscal quarter from $100.6 million a year earlier. For the full year, net profit rose almost fivefold to $294.4 million, compared with $61.2 million for the previous 12 months.
- Same-store sales — at branches open at least a year — dropped 0.7% for the quarter and climbed 1.3% for the year.
- The average selling price increased 5% for the quarter and 7% for the year, with growth in bridal and fashion.
The Rapaport View
Management’s decision to “sunset” the Jamesallen.com site — to use Signet’s term — and to absorb Rocksbox within Kay appears to reflect efforts to make the group more efficient.
James Allen has struggled recently. Signet incurred a $13 million impairment charge on the James Allen trade name last year. The brand’s sales dropped 33% to $142.5 million for the fiscal year. Revenue at Blue Nile, a larger and arguably better-known brand, slipped 2% to $339 million.
“As part of our ongoing brand- and digital-transformation efforts, we are continuously evaluating and implementing changes to our brand portfolio and digital platforms, including aligning brands, evolving digital brand strategies, and, in certain cases, consolidating or sunsetting stand-alone digital experiences,” Signet said in the 10-K.
Signet said it was assuming a negative effect on revenue of $60 to $80 million because of the James Allen transition, with a “minimal impact” on operating income.
Growth in full-year sales for the group resulted from “filling merchandise assortment gaps at key price points both in fashion and in bridal, particularly in the largest brands,” the company said. The company had already released sales estimates for the period last week.
Image: A James Allen sign outside its showroom in Washington, DC, in 2022. (Shutterstock)
