Signet Jewelers Limited   announcing its results for the 13 weeks ended October 28, 2017 (third quarter Fiscal 2018), reported that same store sales (SSS) for the period decreased by 5.0%. This included “an estimated 120 basis point negative impact due to weather-related incidents and systems and process disruptions associated with outsourcing of the credit portfolio”, the Company explained.

Signet's total sales amounted to US$ 1,156.9 million; down by US$ 29.3 million or 2.5%, compared to a decrease also of 2.5% in the 13 weeks ended October 29, 2016 (third quarter Fiscal 2017).

 “Sales declines were primarily driven by soft bridal sales and a lower number of customer transactions,” Signet elaborated. “These were offset in part by the strength in eCommerce, with sales of $ 80.7 million, a 56.4% increase, including the impact of R2Net. Excluding R2Net, eCommerce sales grew 10.5%, driven by 34% growth at Sterling, partially offset by a decline in Zale eCommerce sales which was impacted by the conversion to the hybris platform during the quarter.”

While Sterling Jewelers' SSS decreased 6.2%, including 60 basis points of favorable impact from R2Net sales;  Zale Jewelry's SSS decreased 3.4% and its    eCommerce sales were “negatively impacted by the planned conversion of Zale eCommerce platforms to hybris technology, which is beginning to drive improvements in website functionality and performance”, Signet reported.

Piercing Pagoda's SSS increased 2.1%, driven primarily by higher sales of fashion gold jewelry.  UK Jewelry's SSS decreased 5.1%,   principally due to lower sales    of    non-branded jewellery, which was partially  offset   by higher sales in select watch brands.

Signet also reported a loss of US$ 0.20 per share; including, the Company said   “a   ($0.25) per share in net transaction costs related to the first phase of strategic credit outsourcing and the R2Net acquisition, and ($0.10) due to weather-related incidents and credit outsourcing disruptions”.

As a result, the Company has issued a revised guidance for Fiscal 2018.

"Signet had a challenging third quarter. In addition to an anticipated sequential slowdown in our same store sales, unfavorable weather-related incidents, along with unexpected disruptions during the transition of our credit services, further negatively impacted results,” commented Virginia C. Drosos, Chief Executive Officer of Signet Jewelers. “Encouragingly, within this backdrop, we advanced our strategic priorities, which are beginning to deliver results.”

 Talking about the new acquisition and  impact of various factors on business, Drosos said: “We have also implemented several synergies from the R2Net acquisition ahead of plan. Unfortunately, these wins are being overshadowed by the systems disruptions and significant process changes associated with the outsourcing of our credit portfolio, with particular impact at Kay. While the identified systems issues are behind us, we expect some credit process disruption to continue and to negatively impact our fourth quarter and full-year performance. As a result, we now expect our fourth quarter same store sales to be down low- to mid-single digits, leading to Fiscal 2018 same store sales down mid-single digits and earnings ranging from $6.10 to $6.50 per share .”

 Signet also revealed that the Company is in advanced discussions with interested funding partners related to the second phase of its credit outsourcing, which is expected to be completed in the first half of calendar year 2018.