thanks for visiting cnnmoney. the worst day for mall diamonds in 25 years - cheap online fashion jewelry stores
Sales in three stores have fallen.
A jeweler at an affordable price.
Signet, the parent company, warned that profits will be low next year.
Virginia Deros, CEO, said on Tuesday that weak sales of hurricanes and engagement rings and wedding rings had led to a "challenging" quarter.
Revenue for the quarter ended October fell by $30 million, while revenue for Kay fell by 7%.
Customer service mistakes led to a slowdown in Kay.
Kai is making a sweeping overhaul of its store credit program, and the disruption of the switch has caused some customers to cancel the reward program.
According to Paul Lejuez, a senior analyst at Citi, Kai has more than 1,200 stores nationwide, accounting for about third of Signet's total revenue.
The report of the downturn shocked investors: Signet's (SIG)
Stocks plunged 30% on Tuesday.
It was the worst day in 25 years.
Shares have fallen 44% this year.
According to Oliver Chen, retail analyst at Cowen, Signet has a 13% market share in the $43 billion jewelry industry, more than double its recent competitors.
Related report: Lejuez said Signet's stock plummeted after the allegations of discrimination surfaced, but the lagging flow of shopping malls is squeezing stores. The lower-
Driven by struggling retailers cutting prices to stay competitive, the cost jewelry business is bottoming out.
Chain stores such as Target, JCPenney, Nordstrom and Macy's offer jewelry options.
JCPenney pointed out last week that jewelry sales rose in the quarter and are expected to continue to rise during the holiday season. Mom-and-
Popular stores are also challenging Signet, says Lejuez.
Local shops often promote
Cuts can be offered because they are clearing. Amazon (AMZN)and Walmart's (WMT)
Online jewellery collections have also benefited a lot from Signet's sales.
Market Segment: look at the latest news & which stock market segments perform best, and Signet is well aware that the impact of its shopping mall brand is declining.
The company announced that it will open 125 stores mainly in the mall in 2018.
In addition to closing poor-performing stores, Signet also bought r2 net, owner of the online wedding ring site James Allen, for $0. 328 billion in August.
James Allen immediately gave Signet a boost: the company's overall digital sales surged 56% this quarter.