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New York, NY—Shares of both Tiffany and Signet dropped after the retailers both reported first-quarter sales declines. Tiffany shares fell 6.6% following an unexpectedly sluggish first quarter in both the Americas and Asia, according to reports. Valentine’s Day sales at the jeweler, usually a strong period, were off this year, as was tourist spending, another traditionally strong part of the retailer’s sales.

Tiffany underwent a key management change in the first quarter, with the February ouster of CEO Frederic Cumenal and return of chairman Michael Kowalski to the corner office. While banking on its efforts to draw younger consumers with the HardWear line of jewelry with singer Lady Gaga and other changes, the retailer acknowledges that turnaround could be slow.

Higher operating margins helped the retailer top earnings estimates even with the sales drop: its projection was 70 cents and its reported profit, 74 cents. Net sales were $899.6 million in the period ended April 30; missing the $914.4 million predicted by analysts. Nevertheless, the retailer maintains its forecast for the year, calling for sales to grow by low single digits and earnings to grow by mid-single digits.

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Meanwhile, Signet posted a double-digit decline (-11.5%) in first-quarter comps. CEO Mark Light blamed the late timing of Mother’s Day and later-than-usual IRS tax refunds, along with continued retail headwinds such as falling mall traffic impacting fine jewelry.

The jeweler—whose U.S. stores include Kay, Zales, Jared The Galleria Of Jewelry, and Piercing Pagoda—reported sales slumps across all its brick-and-mortar brands, including the low-end Piercing Pagoda, which typically has been a strong performer for the company. E-commerce was the one bright spot, though bright was somewhat relative with a 1.1% increase for the quarter.

In a conference call, Light said higher-end bridal jewelry and diamond fashion jewelry were the top performers, and its “Ever Us” brand continues to grow. Long-term, he expects the company to benefit from the rise in independent jewelers closing. Signet itself plans to close 165-170 stores but open 90 to 115 this fiscal year, for a net decline of 50-80 doors across its various brands.

But what, exactly, is Signet selling? This article in Forbes suggests in-house credit, not merchandise, is driving Signet’s profits. While many of the retailer’s stores have seen double-digit profit growth in the past few years, they are increasingly promoting in-house financing to drive sales, says the article. Zander Rosenbluth of Lone Star Value Management told Forbes that Signet (SIG) has become more of a non-bank lender than a pure-play jeweler, and expressed concern that 75% of its book value is comprised of “questionably performing receivables” with high delinquency rates. 

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