Signet Jewelers Ltd. reported ecommerce sales increased more quickly in the most recent quarter than did overall sales, which fell.
Total sales were down 5.2%, $145.1 million, in the fourth quarter to $2.7 billion, Signet Jewelers reported. During that same period, ecommerce sales grew from $556 million in Q4 2021 to $650 million in the fourth quarter of 2022, a 16.9% increase.
For the year ended Jan. 28, 2023, the retailer said total sales were up 0.2%, $16.1 million, to $7.8 billion. Same-store sales were down 6.1% year over year. Ecommerce accounted for 20.4% of those sales, a larger proportion than 19.3% of total sales in 2021.
Signet Jewelers ranks No. 64 in Digital Commerce 360’s Top 1000 ecommerce retailers in North America.
The majority of online sales come from James Allen and Blue Nile, which are both fully digital brands under Signet. Blue Nile ranks No. 144 in the Top 1000. Signet acquired Blue Nile for $360 million in August 2022. Since the acquisition, the digital business has grown, CEO Virginia Drosos told investors. The company had its best-ever Cyber Monday in 2022 with traffic up 18%. Enrollment in Signet’s loyalty program nearly tripled in the fourth quarter compared to the previous quarter.
More ecommerce investments are planned for 2023, Drosos said. About $100 million will go toward ‘”next-gen automation” and other feature to drive digital conversion, she told investors. The retailer is anticipating minor challenges to the bridal industry in 2023, which makes up 49% of Signet’s sales, with the expectation that conditions return to normal the following year.
Signet Jewelers earnings summary
For the quarter ended Jan. 28, Signet Jewelers reported:
- Total sales were down 5.2% to $145.1 million.
- Ecommerce sales grew from $556 million in Q4 2021 to $650 million in the fourth quarter of 2022, an increase of 16.9%.
- Average transaction value was up 3.9% year-over-year.
For the year ended Jan. 28, Signet Jewelers reported:
- Total sales were up 0.2%, $16.1 million, to $7.8 billion for the year
- Store count decreased by 46 locations.
- Ecommerce sales made up 20.4% of sales, compared to 19.3% in 2021.
- Average transaction value was up 11.2% year-over-year.
Percentage changes may not align exactly with dollar figures due to rounding.
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