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Signet to Avoid Giving Sales Guidance
Mar 24, 2020 6:48 AM
By Rapaport News
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RAPAPORT... Signet Jewelers will not issue a forecast for the first quarter of its 2021 fiscal year as it weighs the effects of the coronavirus pandemic on its retail operations.
“Retailers are already experiencing the severe impact…of COVID-19 on the global economy, and we are anticipating continued reduction in consumer spend,” Signet CEO Virginia Drosos said Monday. “We are moving quickly and aggressively to strengthen Signet’s financial flexibility, prioritize investments, and reduce capital expenditures and operating expenses.”
The jeweler — whose banners include Kay, Jared and Zales — will report its fourth-quarter and full-year results for fiscal 2020 on Thursday. It will also provide an update on first-quarter sales trends, it said Monday.
Following government guidelines on health and safety, Signet has closed all its stores in North America in an effort to stem the spread of the virus, it told Rapaport News Sunday. It will reopen those stores when appropriate, after assessing the situation at a local level, it noted.
During the shutdown, Signet store workers will receive pay and benefits through April 4, Signet added. The company will reassess the pay situation should the closure last longer.
Macy’s has also withdrawn its guidance for 2020, which it issued in February, and is not currently providing an updated outlook, it said last week. It also intends to suspend its quarterly dividend payout beginning in the second quarter of the fiscal year, and will make use of its $1.5 billion revolving credit facility as required.
The department-store chain has closed all its stores across the US due to the situation.
Image: A Kay Jewelers store. (Shutterstock)
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Tags:
Coronavirus, COVID-19, Jared, kay, Rapaport News, Signet, Signet Jewelers, Virgina Drosos, zales
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