Signet Jewelers is launching an internal restructuring in an effort to stem a continued decline in sales and profits, but Wall Street doesn’t seem optimistic.Shares of the jewelry retailer fell 20.24 percent to $38.22, an all-time low, after it revealed total sales for fiscal 2017 down 2.4 percent to $6.25 billion and net income attributable to common shareholders of $486.4 million, compared with $531.3 million in fiscal 2016.The company attributed the decline to a 5.3 percent drop in same-store sales, chief executive officer Virginia Drosos admitted it was a “challenging year” for Signet, and said the company would be undergoing a three-year restructuring plan to “reinvigorate” the company, which will include the close more than 200 stores, mainly in malls, by the end of this fiscal year.Some of the expected cost savings will be reinvested in “growth initiatives,” Drosos said, like more innovative store concepts, but the company overall is in need of a lot of updating.“We did not invest fast enough in omnichannel initiatives, particularly mobile and have been too slow to capture our fair share of the online channel, both in terms of traffic and conversion,” Drosos said during a call with financial analysts. “We have less effective product innovation success and did not invest enough in differentiated products. As product life cycles have shortened, our innovation pipeline has not been robust enough to offset the natural decline of some of our larger selections. Our banner brand equities have become less relevant and our in-store experience and communication platforms need updating.”Drosos added that all of Signet’s brands, including Kay, Jared and Piercing Pagoda, have been relying “too heavily on the promotional lever, which has incentivize customers to buy on deal and created a value perception problem.” Employee moral has also suffered while the company failed to respond to larger shifts in retail, including declining mall traffic and online shopping.Last year also saw numerous accounts of harassment come to the fore through an ongoing class-wide lawsuit, currently in private arbitration, alleging gender-based pay and promotion discrimination throughout Signet’s retail stores. Drosos was named ceo in the wake of the published accounts, becoming Signet’s first female top-level executive. She’s since added two additional women to the company's board, which now has an equal number of men and women. Signet last year experienced some operational issues, too, related to its decision to sell its credit business, which also cut about $20 million in profits related to interest income it previously received, according to Drosos. This year will see Signet sell the remaining portion of its credit receivables to a group of investment funds managed by CarVal Investors for up to $435 million, which will be used to buy back shares of common stock.“The good news is many of our problems are fixable,” Drosos said. “We can and we will correct them.”Outside of closing stores, the ceo said the restructuring will get rid of some costs that “customers do not see or care about,” and turn the company's focus to boosting Signet’s overall relevance and value for shoppers through store and media updates, as well as its online and mobile channels. Data science will also be brought into a new marketing mix to measure impact and optimize campaigns and he company is looking at altering its overall pricing structure.All of this will be funded by an expected $200 million in cost savings related to changes in sourcing, logistics information technology, third-party contracts and corporate spending, Drosos said.Despite these plans, the current fiscal year is set to be disappointing. Same store sales are set to be down by low-to mid-single digits, on total revenue down to an estimated $5.9 billion.For More, See:Signet Stock Slips on Weak Holiday SalesInditex Hammers Home Omnichannel StrategyStitch Fix Gains Sales, Users But EBITDA Falls Again
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.