Signet Jewelers Limited (“Signet”) (NYSE:SIG), the world's
largest retailer of diamond jewelry, today announced its sales for
the 9 weeks ended January 5, 2019 (“Holiday Season”).
Holiday Season Summary:
- Same store sales ("SSS") down 1.3%
- Revises fourth quarter guidance to same
store sales down 1.6% - down 2.5%, GAAP EPS of $2.32 - $2.53 and
non-GAAP EPS of $3.77 - $3.92. GAAP EPS guidance now includes a
$0.19 charge related to resolution of a previously disclosed
regulatory matter which is excluded from non-GAAP EPS guidance
- Revises Fiscal 2019 guidance to same
store sales approximately flat, GAAP EPS of ($8.16) - ($7.93) and
non-GAAP EPS of $3.53 - $3.69. GAAP EPS guidance now includes a
$0.20 charge related to resolution of a previously disclosed
regulatory matter which is excluded from non-GAAP EPS guidance
Virginia C. Drosos, Chief Executive Officer, commented, "Our
holiday season performance fell short of our expectations. Early
improvements in refreshed merchandise assortment, digital marketing
and OmniChannel were more than offset by larger than expected
declines in legacy product lines. In addition, the competitive
promotional environment we saw early in the season intensified in
December and, despite our increased promotional investments, we
experienced reduced traffic during key December gifting weeks.
Combined with higher than expected credit costs, these factors
negatively impacted our profitability."
Drosos continued, “These holiday results reinforce the need to
take even faster action to improve our financial and operational
performance. We will move decisively to improve profitability
through aggressively optimizing our cost structure and continuing
to right-size our store base, as well as more effectively managing
our inventory. As we enter the second year of our Path to
Brilliance transformation, we expect to accelerate initiatives to
enhance our product assortment, marketing personalization and
analytics, promotional effectiveness, service offerings, and
e-commerce to deliver a more seamless and engaging OmniChannel
customer experience. We will provide an update on our plans for
FY2020 when we report our fourth quarter earnings in March.”
Change from previous year
Holiday Season Fiscal 2019
Samestoresales
(1)
Non-samestore
sales,net
Total salesat
constantexchangerate
Exchangetranslationimpact
Totalsalesas
reported
Totalsales(in
millions)
Kay (0.8)% 1.3% 0.5% na 0.5% $ 726.7 Zales 2.9% (3.9)% (1.0)% na
(1.0)% $ 397.6 Jared (8.0)% 1.7% (6.3)% na (6.3)% $ 323.9 Piercing
Pagoda 16.9% (4.0)% 12.9% na 12.9% $ 82.4 James Allen (0.2)% —%
(0.2)% na (0.2)% $ 50.5 Peoples 4.5% (3.1)% 1.4% (4.6)% (3.2)% $
63.9 Regional banners (2) (14.6)% (32.6)% (47.2)% (0.2)% (47.4)% $
22.5
North America segment (0.7)% (1.2)%
(1.9)% (0.2)% (2.1)% $ 1,667.5
H.Samuel (5.9)% (1.5)% (7.4)% (4.4)% (11.8)% $ 84.1 Ernest Jones
(9.0)% 1.7% (7.3)% (4.3)% (11.6)% $ 72.3
International
segment (7.3)% —% (7.3)% (4.4)%
(11.7)% $ 156.4 Other(3) $ 11.5
Signet
(1.3)% (0.6)% (1.9)% (0.6)%
(2.5)% $ 1,835.4 (1) The 53rd
week in Fiscal 2018 has resulted in a shift in Fiscal 2019, as the
fiscal year began a week later than the previous fiscal year. As
such, same store sales for Fiscal 2019 are being calculated by
aligning the weeks of the quarter to the same weeks in the prior
year. Total reported sales continue to be calculated based on the
reported fiscal periods. (2) Regional banners represents results
for regional stores presented in the prior year as part of the
former Sterling Jewelers and Zale Jewelry segments (including
Gordon’s and Mappins). (3) Includes sales from Signet’s diamond
sourcing initiative.
Holiday Season Fiscal 2019 Sales Highlights:
Total same store sales performance decreased 1.3% year over
year, inclusive of a positive impact of approximately 90 bps
related to incremental clearance and a positive impact of 40 bps
due to planned shifts in timing of promotions at Zales and Peoples.
Payment plan participation rate, including both credit and leasing
sales, improved year over year, reflecting continued operational
improvements.
eCommerce sales in the Holiday Season were $222.3 million, up
5.6% year over year. Brick and mortar same store sales declined
2.2%.
By operating segment:
North America
- Same store sales decreased 0.7%,
including a favorable impact of approximately 100 bps of
incremental clearance and a favorable impact of 45 bps due to a
planned shift in timing of promotions at Zales and Peoples.
eCommerce sales increased 6.7% and brick and mortar sales declined
1.6% on a same store sales basis.
- Same store sales increased at Piercing
Pagoda by 16.9%. Zales grew by 2.9%, including a positive impact of
160 bps due to a planned shift in the timing of promotions. Kay
same store sales decreased 0.8% and Jared same store sales
decreased 8.0%. James Allen sales declined 0.2%.
- During the Holiday Season, the
percentage of sales from new merchandise increased, but this
performance was more than offset by declines in legacy collections.
Bridal sales were up slightly during the Holiday Season on a same
store sales basis. Within bridal, engagement sales increased while
anniversary sales declined, as anniversary sales were unfavorably
impacted by declines in the Ever Us® collection. The Enchanted
Disney Fine Jewelry® collection, Vera Wang Love® collection, Neil
Lane® collection, and solitaires performed well. Fashion category
sales decreased during the Holiday Season, with gold fashion
jewelry, Disney fashion jewelry, and the Love + Be Loved collection
performing well offset by declines in the LeVian® and other legacy
collections. The Other product category declined driven by a
strategic reduction of owned brand beads, as well as declines in
Pandora®.
International
- International same store sales
decreased 7.3%. eCommerce sales declined 3.8% and brick and mortar
sales declined 7.9% on a same store sales basis.
- The same store sales decline was driven
by lower sales in bridal jewelry, fashion jewelry and fashion
watches, partially offset by higher sales in prestige watches.
Fiscal 2019 Financial Guidance
Fiscal 2019 Current Guidance
Prior Guidance
Same store sales (excluding impact
ofrevenue recognition changes)
Approximately flat flat -
up 1.0% Total sales $6.24 billion to $6.26 billion $6.26 billion to
$6.31 billion GAAP diluted EPS $(8.16) - $(7.93) $(7.40) - $(7.07)
Non-GAAP diluted EPS $3.53 - $3.69 $4.15 - $4.40 Weighted
average common shares - basic 55 million 55 million Weighted
average common shares - diluted 62 million 62 million Capital
expenditures $165 million to $175 million $165 million to $185
million Net selling square footage Approximately -6% Approximately
-5%
The above current Fiscal 2019 guidance reflects the following
assumptions:
- Same store sales guidance includes an
unfavorable impact of 20 bps related to a timing shift of service
plan revenue recognized as a result of historical claims experience
shifting away from the earlier years of the service plans to later
years of the coverage period
- Transformation program net savings are
expected to be approximately $85 million. The company continues to
expect net savings of $200 million to $225 million in fiscal years
2019-2021.
- Negative operating profit impact of
$146 million - $150 million as a result of the outsourcing of prime
and non-prime accounts receivables. This represents a negative year
over year impact of $164 million - $168 million as compared to
Fiscal 2018. This estimate represents an unfavorable increase
versus prior guidance primarily due to a higher mix of non-prime
customers
- Pre-tax charges of $129 million - $134
million related to the transformation plan
- Pre-tax charges of $167 million
associated with the credit outsourcing transaction
- GAAP tax benefit estimated in the range
of $114 million - $118 million including the impact of impairment
charges, the loss associated with the sale of the non-prime
receivables, inclusive of the servicing fee and related transaction
costs, and restructuring charges
- Interest expense of approximately $40
million
- GAAP EPS guidance includes a pre-tax
charge of $11 million or $0.20 per share related to resolution of a
previously disclosed regulatory matter. For additional information
please see our Form 8-K filed on January 16, 2019
- Both GAAP and non-GAAP EPS is
calculated applying a share count that excludes the preferred
shares for the full year
- Non-GAAP EPS guidance of $3.53 - $3.69
excludes restructuring charges associated with the transformation
plan, the loss associated with the sale of the non-prime
receivables, the goodwill and intangible impairment charge and a
charge related to the resolution of a previously disclosed
regulatory matter
- Non-GAAP EPS is computed using a
normalized tax rate of approximately 2% - 3%. The revaluation of
deferred tax assets associated with the United States tax reform
may result in discrete adjustments within subsequent quarters which
are excluded from the calculation of non-GAAP EPS in Fiscal
2019
Fourth Quarter Fiscal 2019 Financial Guidance:
Fourth Quarter Fiscal 2019 Current Guidance
Prior Guidance
Same store sales (excluding impact of
revenuerecognition changes)
down 1.6% - down 2.5%
down 1.5% - up 1.0% Total sales $2.14 - $2.16 billion $2.17 - $2.22
billion GAAP diluted EPS $2.32 - $2.53 $3.02 - $3.33 Non-GAAP
diluted EPS $3.77 - $3.92 $4.35 - $4.59 Weighted average
common shares - diluted 58.9 million 58.9 million
The above fourth quarter Fiscal 2019 guidance reflects the
following assumptions:
- Fourth quarter same store sales
guidance reflects a more difficult prior year same store sales
comparison in January versus the prior year same store sales
comparison in the Holiday Season
- Same store sales guidance includes an
unfavorable impact of 30 bps related to a timing shift of service
plan revenue recognized as a result of historical claims experience
shifting away from the earlier years of the service plans to later
years of the coverage period
- Lack of a 53rd week in the current year
fourth quarter, which contributed $84 million in sales in the
fourth quarter of Fiscal 2018
- Negative operating profit impact of
approximately $10 million to $14 million as compared to the fourth
quarter of Fiscal 2018 related to the credit outsourcing. This
estimate represents an increase versus prior guidance primarily due
to a higher mix of non-prime customers
- Pre-tax charges of approximately $31 -
$36 million related to Signet Path to Brilliance transformation
plan
- GAAP EPS guidance includes a pre-tax
charge of $11 million or $0.19 per share related to resolution of a
previously disclosed regulatory matter. For additional information
please see our Form 8-K filed on January 16, 2019
- GAAP and non-GAAP EPS guidance is
calculated by using net income before preferred dividend and
applying fully diluted share count
- Non-GAAP EPS guidance of $3.77 - $3.92
excludes restructuring charges associated with the transformation
and a charge related to the resolution of a previously disclosed
regulatory matter.
- Non-GAAP EPS is computed using a
normalized tax rate of approximately 1% - 2%. The revaluation of
deferred tax assets associated with the United States tax reform
may result in discrete adjustments within subsequent quarters which
are excluded from the calculation of non-GAAP EPS in Fiscal
2019.
Quarterly Dividend:
Signet's Board of Directors declared a quarterly cash dividend
of $0.37 per share for the fourth quarter of Fiscal 2019, payable
on March 1, 2019 to shareholders of record on February 1, 2019,
with an ex-dividend date of January 31, 2019.
Fourth Quarter Earnings Announcement:
Signet is scheduled to report fourth quarter and full year
Fiscal 2019 financial results on March 14, 2019. Additional detail
on financial performance will be provided at that time.
About Signet and Safe Harbor Statement:
Signet Jewelers Limited is the world's largest retailer of
diamond jewelry. Signet operates nearly 3,500 stores primarily
under the name brands of Kay Jewelers, Zales, Jared The Galleria Of
Jewelry, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and
JamesAllen.com. Further information on Signet is available at
www.signetjewelers.com. See also www.kay.com, www.zales.com,
www.jared.com, www.hsamuel.co.uk, www.ernestjones.co.uk,
www.peoplesjewellers.com, www.pagoda.com, and
www.jamesallen.com.
This release contains statements which are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, based upon management’s
beliefs and expectations as well as on assumptions made by and data
currently available to management, appear in a number of places
throughout this document and include statements regarding, among
other things, Signet’s results of operation, financial condition,
liquidity, prospects, growth, strategies and the industry in which
Signet operates. The use of the words “expects,” “intends,”
“anticipates,” “estimates,” “predicts,” “believes,” “should,”
“potential,” “may,” “forecast,” “objective,” “plan,” or “target,”
and other similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to a number of
risks and uncertainties, including, but not limited to, our ability
to implement Signet's transformation initiative, the effect of US
federal tax reform and adjustments relating to such impact on the
completion of our quarterly and year-end financial statements,
changes in interpretation or assumptions, and/or updated regulatory
guidance regarding the US federal tax reform, the benefits and
outsourcing of the credit portfolio sale including technology
disruptions, future financial results and operating results, the
impact of weather-related incidents on Signet’s business,
deterioration in the performance of individual businesses or of the
Company's market value relative to its book value, resulting in
impairments of fixed assets or intangible assets or other adverse
financial consequences, including tax consequences related thereto,
especially in view of the Company’s recent market valuation, and
our ability to successfully integrate Zale Corporation and R2Net’s
operations and to realize synergies from the Zale and R2Net
transactions, general economic conditions, potential regulatory
changes or other developments following the United Kingdom’s
announced intention to negotiate a formal exit from the European
Union, a decline in consumer spending, the merchandising, pricing
and inventory policies followed by Signet, the reputation of Signet
and its banners, the level of competition in the jewelry sector,
the cost and availability of diamonds, gold and other precious
metals, regulations relating to customer credit, seasonality of
Signet’s business, financial market risks, deterioration in
customers’ financial condition, exchange rate fluctuations, changes
in Signet’s credit rating, changes in consumer attitudes regarding
jewelry, management of social, ethical and environmental risks, the
development and maintenance of Signet’s omni-channel retailing,
security breaches and other disruptions to Signet’s information
technology infrastructure and databases, inadequacy in and
disruptions to internal controls and systems, changes in
assumptions used in making accounting estimates relating to items
such as extended service plans and pensions, risks related to
Signet being a Bermuda corporation, the impact of the acquisition
of Zale Corporation on relationships, including with employees,
suppliers, customers and competitors, and an adverse decision in
legal or regulatory proceedings.
For a discussion of these and other risks and uncertainties
which could cause actual results to differ materially from those
expressed in any forward-looking statement, see the “Risk Factors”
section of Signet’s Fiscal 2018 Annual Report on Form 10-K filed
with the SEC on April 2, 2018 and quarterly reports on Form 10-Q
filed with the SEC. Signet undertakes no obligation to update or
revise any forward-looking statements to reflect subsequent events
or circumstances, except as required by law.
GAAP to Non-GAAP Reconciliations
The following information provides reconciliations of the most
comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in the
U.S. (“GAAP”) to presented non-GAAP financial measures. The company
believes that non-GAAP financial measures, when reviewed in
conjunction with GAAP financial measures, can provide more
information to assist investors in evaluating historical trends and
current period performance. For these reasons, internal management
reporting also includes non-GAAP measures. Items may be excluded
from GAAP financial measures when the company believes this
provides greater clarity to management and investors.
Fiscal Q4'19Guidance LowEnd
Fiscal Q4'19Guidance HighEnd
Q4 GAAP Diluted EPS $ 2.32 $ 2.53 Charges related to transformation
plan1 0.41 0.35 Charge related to regulatory resolution 0.19 0.19
GAAP quarterly impact of annual tax benefit1 0.85 0.85 Q4
Non-GAAP Diluted EPS $ 3.77 $ 3.92
Fiscal 2019Guidance LowEnd
Fiscal 2019Guidance HighEnd
2019 GAAP Diluted EPS $ (8.16 ) $ (7.93 ) Charges related to
transformation plan1 1.83 1.76 Loss related to goodwill and
intangible impairment1 7.59 7.59 Charge related to regulatory
resolution 0.20 0.20 Loss related to sale of non-prime receivables1
2.07 2.07 2019 Non-GAAP Diluted EPS $ 3.53 $
3.69
1Reconciliation of GAAP and non-GAAP charges and losses includes
related tax impact.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190117005154/en/
Investors:Randi AbadaSVP Corporate Finance Strategy &
Investor Relations+1 330 668
3489randi.abada@signetjewelers.comMedia:David BouffardVP
Corporate Affairs+1 330 668 5369david.bouffard@signetjewelers.com
Signet Jewelers (NYSE:SIG)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Signet Jewelers (NYSE:SIG)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024