Photo: Shutterstock
This may be the season of happily ever after, but Signet Jewelers is living a nightmare.
The owner of Jared, Kay Jewelers and Zales has been under fire since a report last month accusing the company of swapping real stones for fakes when customers brought their jewelry in for repairs.
These were not isolated incidents, according to BuzzFeed.
Customers flocked to social media to vent their frustrations, promising to sue the Bermuda-based company and to demand their money back.
“I bought my daughter a diamond ring when she graduated from high school and now it might be a fake this is not right I want my money back I paid too much for it!!!!!!!!!!!!” Yvonne Escalante wrote on Kay Jeweler’s Facebook page.
The report and the backlash helped send Signet shares down about 17 percent since the report first appeared on May 25.
The stock was also hurt this week by a report in Grant’s Interest Rate Observer, a financial tip sheet, questioning Signet’s business practices.
On Friday, the company responded to the uproar, blasting reports that diamond-swapping was systemic.
“We strongly object to recent allegations on social media, republished and grossly amplified, that our team members systematically mishandle customers’ jewelry repairs or engage in ‘diamond swapping,’ ” the company said in a statement.
The reheated diamond-swapping episode helped sink Signet shares on Friday.
They fell 4.4 percent, to close at $88.20. They are down 29 percent for the year.
The shares declined despite Signer reporting record first-quarter profits — including a 20.4 percent rise in adjusted earnings per share and a 3.2 percent increase in revenue.
No comments:
Post a Comment