Signet Jewelers Ltd. reported on Thursday (Sept. 3) that same-store sales dropped 31.3 percent in Q2 FY21, but eCommerce revenues grew 72.1 percent year over year as the chain expanded its virtual-selling model amid a digital shift, according to an announcement.
"Sales improved sequentially throughout the second quarter as we reopened stores and remained agile and innovative in these unprecedented times,” Chief Executive Officer Virginia Drosos said in the announcement. “During the quarter, we also scaled our new virtual selling model, improved our merchandise assortment and enhanced our targeted digital marketing to a strong consumer response.”
Signet said it has put a full-time digital selling workforce into place, with more than 15,000 store staffers working with shoppers through virtual selling from their residences or in retail locations. The retailer said that its investment in digital selling is creating "higher levels of conversion on digital and retail foot traffic."
Signet currently has more than 90 percent of its total fleet in operation. The retailer has made health and wellness a priority via its Love Takes Care program, which implements safety procedures created with top health experts.
The company said it will continue with its initiatives to keep costs in check; net structural cost savings are expected to exceed $100 million in fiscal year 2021.
As for its overall results, Signet reported non-GAAP diluted loss per share of $1.13 on total sales of $888 million. The results exceeded analyst estimates of a loss of $2.07 per share on revenues of $788.51 million. Still, the results disappointed Wall Street and Signet stock fell as much as 10.9 percent Thursday morning, although it later partly recovered. Shares were trading at $17.68 on the New York Stock Exchange shortly before 11 a.m. ET, down 4.8 percent on the day.
Signet runs about 3,200 retail locations, mainly under brands such as Zales, Jared and Kay Jewelers. In June, the company announced that it intends to shutter almost 400 retail locations for good.
In announcing its Q1 results in June, Signet reported that its stores had formidable sales in February for Valentine’s Day. But total sales dropped by over 40 percent to $852 million in the U.S., Canada and United Kingdom for the three months that concluded May 2, the timeframe in which most stores were closed due to the pandemic.