Signet Jewelers Limited reported revenue of $6.25 billion for fiscal 2019, registering an operating loss of $764.6 million or 12.2 percent on sales by generally accepted accounting principles (GAAP). Same store sales were down 0.1 percent. The result contrasts with the $579.9 million operating profit registered in fiscal 2018.
The company however said it had registered $275.1 million in operating profit by non-GAAP standards after offsetting the $735.4 million in loss related to goodwill and intangible impairment, the $125.9 million charges related to the company’s restructuring plan, the $167.4 million loss related to the sale of non-prime receivables and a $11 million charge related to regulatory resolution.
Chief Executive Virginia Drosos commented, "In Fiscal 2019, we began our ‘Path to Brilliance’ transformation journey, building foundational capabilities to drive future growth. We made progress on these initiatives, achieving double-digit eCommerce growth, delivering $85 million of net cost savings, and continuing to optimise our store footprint.”
She added, “However, we did not finish the year as strongly as expected due to a highly competitive promotional environment, continued consumer weakness in the UK, and lower than expected customer demand for legacy merchandise collections that impacted our holiday fourth quarter results."
Guidance for fiscal 2020 sees same store sales being down 2.5 percent to flat and revenue of $6-$6.1 billion.