Publications
Publications
  • June 2017 (Revised January 2019)
  • Case
  • HBS Case Collection

Signet Jewelers: Assessing Customer Financing Risk

By: Gerardo Pérez Cavazos, Suraj Srinivasan and Monica Baraldi
  • Format:Print
  • | Language:English
  • | Pages:30
ShareBar

Abstract

Marc Cohodes, a renowned short seller, has identified weaknesses in Signet's business strategy, which he argues is heavily reliant on providing loans to customers with subprime credit scores. He believes that the company accounts for its receivables portfolio using recency accounting to hide the problem. The case presents Cohodes' thesis, the response by Signet's management team, as well as the reactions by sell-side analysts.

Keywords

Short Selling; Bad Debt Expense; Accounting; Financial Reporting; Financial Statements; Finance; Financing and Loans; Valuation; Retail Industry; Financial Services Industry; United States

Citation

Pérez Cavazos, Gerardo, Suraj Srinivasan, and Monica Baraldi. "Signet Jewelers: Assessing Customer Financing Risk." Harvard Business School Case 117-038, June 2017. (Revised January 2019.)

About The Author

Suraj Srinivasan

Accounting and Management
More Publications

Related Work