Last fall, when Zale announced in a conference call that sales had dropped by double digits, it was an early indicator that this was not a normal downturn.

So we can only be hopeful that Signet’s announcement that U.S. same-store sales for the first quarter were down 2.6% –  a result that in a normal year would be slagged off as mediocre and a sign of trouble – is an indicator that the market is stabilizing. Certainly, it’s a nice achievement in a week when other public jewelry companies reported declines of 27% and 50%.

It’s interesting that chairman Terry Burman noted that Jared had weaker results than Kay because of the “general weakness in spending among households with above average incomes.” This is also a switch from even a year ago, where everyone was stampeding towards the high end.  

Burman also said that “differentiated merchandise [is] performing particularly well” – and it seems there is still strength in its ultra-differentiated Jane Seymour “Open Hearts” collection. This line, which I will write about in JCK next month, is a canny mixture of a solid celebrity spokesperson with a clever and meaningful product concept. Clearly the line is known enough to inspire wicked parodies – surely a sign it’s seeped into mass consciousness. (There’s some frank language at that link – but it’s funny.)

One of the things that people always say about Sterling is there is nothing magical about what they do –  they simply attend to retail basics, and do it well, in a relatively stable corporate culture. Yet, judging from how Signet is now dominating its competitors, that could be a bigger accomplishment than it seems.

Now, all eyes are on Zale, which already has people nervous with the Bailey lease situation. Any guesses how they’ll do?

Rob Bates

JCK News Director