Written by StockNews.com

Signet Jewelers Ltd. (NYSE: SIG) early Thursday [Mar 9, 2017 | 7:08am] posted mixed fourth quarter earnings results and offered a weak outlook for the current year, as both mall-based and online sales continue to struggle.

The Bermuda-based jewelry retailer, which operates the Kay, Sterling, and Zale brands, reported adjusted Q4 earnings per share (EPS) of $4.03, which was $0.03 better than the Wall Street consensus estimate of $4.00.

Revenues fell 5.2% from last year to $2.27 billion, slightly missing analysts’ view for $2.3 billion.

Signet also said that same-store sales (“comps”) fell 4.5% in the fourth quarter, hurt by declines in both its mall-based stores and e-commerce unit.

It’s worth noting that back on January 9, SIG had cut its Q4 EPS outlook to $4.00-4.05 from $4.00-4.20, and lowered its comps forecast to (4.3-4.8%) from (2-4%). The latest results were indeed within the range of those updated forecasts.

Looking ahead, SIG forecast full-year fiscal 2018 EPS of $7.00 to $7.40, which is significantly lower than the $7.73 that analysts are looking for. The company also sees 2018 comps declining in the low to mid-single digits.

To combat sluggish sales, Signet plans to close 165 to 170 stores in the current fiscal year, but open 90 to 115 stores in more lucrative geographical locations.

The company commented on its ongoing business challenges via press release:

“We are adapting to a challenging retail environment and weak mall traffic. Given the importance of an omni-channel experience to jewelry customers, we have an intensive focus on an omni-channel approach to customer service supported by a significant increase in resources directed to our digital ecosystem. We have re-aligned our executive organization structure to sharpen our focus on our customers’ channel preferences. And we are making greater technology investments to improve customers’ on-line experience. Going forward, our digital marketing and presence on-line will be more pronounced than ever.