Signet Jewelers Limited (“Signet”) (NYSE and LSE: SIG), the
world's largest retailer of diamond jewelry, today announced its
sales for the eight weeks ended December 26, 2015 (“Holiday
Season”) and guidance for the 13 weeks (“Fourth Quarter”) ending
January 30, 2016.
Holiday Season Sales
Highlights:
- Total sales of $1,947.8 million, up
5.0% over the prior year.
- Same store sales increased 4.9%
compared to an increase of 3.6% in the prior year.
- Financial guidance narrowed to top end
of previously provided guidance.
Mark Light, Chief Executive Officer, said, “Signet delivered
excellent holiday sales as a result of the successful execution of
our product, marketing, and omni-channel selling strategies, as
well as our superior customer experience. These results were driven
by broad-based success across strategic store brands, merchandise
categories and selling channels. The implementation of store
operations initiatives in the third quarter combined with
investment in our recently launched innovative merchandising and
marketing programs positioned Signet well for a strong fourth
quarter and beyond.
“The continuation of strong sales and profitability combined
with operating expenses that were in-line with expectations,
including as-anticipated credit-related expense trends, enabled us
to narrow our fourth quarter earnings guidance as well as our same
store sales guidance to the top end of the previously provided
guidance.
“I would like to thank all Signet team members very much for
their dedication, hard work, and solid execution of our strategies
during the holiday selling period.”
Fourth Quarter Financial Guidance:
Currently
Formerly
Same Store Sales
4.6% to 5.0%
3.5% to 5.0% Earnings per Share
$3.44 to $3.50
$3.30 to $3.50 Adjusted Earnings per Share
$3.54 to $3.60
$3.40 to $3.60
Holiday Season Fiscal 2016 Sales Highlights:
Total sales were $1,947.8 million, up $93.4 million or 5.0%,
compared to $1,854.4 million in the eight weeks ended December 27,
2014 ("prior year"). Total sales at constant exchange rate
increased 6.3% compared to prior year. Same store sales increased
4.9% compared to an increase of 3.6% in the prior year driven
primarily by mall-based and outlet concepts in the U.S. as well as
Ernest Jones stores in the U.K. Signet’s e-commerce sales in the
Holiday Season were $139.7 million, up $13.7 million or 10.9%
compared to $126.0 million in the prior year.
- Sterling Jewelers division results were
driven primarily by higher sales at Kay Jewelers and the success of
key collections and categories such as recently introduced Ever Us
two-stone rings as well as diamond earrings and bracelets. Jared
delivered higher sales year-over-year driven by the combined impact
of new consumer-research-driven initiatives around store
operations, marketing, and merchandising.
- Zale division sales were driven by
material increases at the flagship Zales stores as well as Piercing
Pagoda kiosks. Ever Us and select other fashion and bridal brands
were important drivers at Zales; as well as gold jewelry sales in
the kiosk channel.
- UK Jewelry division total sales were
driven by higher same store sales largely offset by unfavorable
foreign currency exchange rates. Same store sales increases were
driven primarily by branded bridal, diamond fashion jewelry, and
beads – most notably at Ernest Jones.
Sales change from previous year
Same Non-same
Total sales Exchange
Holiday Season store store at constant translation
Total Total sales
Fiscal 2016 sales
sales, net exchange rate
impact sales
(in mill $) Kay 7.2 % 1.7 % 8.9 % — 8.9 %
778.0 Jared 2.7 % 4.1 % 6.8 % — 6.8 % 359.1 Regional brands
(1.8) % (6.9 )%
(8.7 )% —
(8.7 )% 59.8
Sterling
Jewelers division 5.3 %
1.9 %
7.2 % —
7.2 %
1,196.9 Zales Jewelers 6.4 % 1.2 % 7.6 % — 7.6 % 378.2
Gordon’s Jewelers (7.2 )% (8.8 )% (16.0 )% — (16.0 )% 22.0 Zale US
Jewelry 5.6 % 0.4 % 6.0 % — 6.0 % 400.2 Peoples Jewellers (2.0) %
0.9 % (1.1) % (15.4 )% (16.5 )% 62.9 Mappins (8.2 )% (3.1 )% (11.3
)% (14.1 )% (25.4 )% 9.4 Zale Canada Jewelry (2.8) % 0.2 % (2.6) %
(15.1 )% (17.7 )% 72.3 Zale Jewelry 4.2 % 0.4 % 4.6 % (3.1 )% 1.5 %
472.5 Piercing Pagoda 7.2 %
1.8 % 9.0 % —
9.0 % 60.4
Zale division 4.5 %
0.5 %
5.0 % (2.7 )%
2.3 %
532.9 H.Samuel 1.6 % 0.2 % 1.8 % (4.0 )% (2.2 )%
119.0 Ernest Jones 6.9 %
2.1 % 9.0 % (4.1 )%
4.9 % 98.0
UK
Jewelry division 3.9 %
1.0 %
4.9 % (4.0 )%
0.9 %
217.0 Other segment
— % (50.0) %
(50.0) %
— % (50.0) %
1.0 Signet
4.9 % 1.4 %
6.3 %
(1.3 )% 5.0 %
1,947.8 Adjusted Signet1
1,951.4
1 Includes $3.6 million deferred revenue adjustment related to
acquisition accounting which resulted in a reset of deferred
revenue associated with extended service plans sold by Zale
Corporation prior to the acquisition on May 29, 2014.
Quarterly Dividend:
Signet’s board declared a quarterly cash dividend of $0.22 per
share for the fourth quarter of Fiscal 2016, payable on February
26, 2016 to shareholders of record on January 29, 2016, with an
ex-dividend date of January 28, 2016. This reflects the Board’s
confidence in the strength of the business, Signet’s ability to
invest in growth initiatives, and the Board’s commitment to
building long-term shareholder value.
Conference Call:
There will be a conference call today at 8:30 a.m. ET (1:30 p.m.
GMT and 5:30 a.m. PT) and a simultaneous audio webcast and slide
presentation available at www.signetjewelers.com. The slides are available
to be downloaded from the website ahead of the conference call. The
call details are: Dial-in 1-647-788-4901. Access code 3157781.
A replay of the conference call and a transcript of the call
will be posted on Signet’s website as soon as is practical after
the call has ended and will be available for one year.
About Signet and Safe Harbor Statement:
Signet Jewelers Limited is the world's largest retailer of
diamond jewelry. Signet operates approximately 3,600 stores
primarily under the name brands of Kay Jewelers, Zales, Jared The
Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing
Pagoda. 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 and www.pagoda.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, 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 general
economic conditions, risks relating to Signet being a Bermuda
corporation, the merchandising, pricing and inventory policies
followed by Signet, the reputation of Signet and its brands, 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,
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, the impact of the
acquisition of Zale Corporation on relationships, including with
employees, suppliers, customers and competitors, and our ability to
successfully integrate Zale's operations and to realize synergies
from the transaction.
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 2015 Annual Report on Form 10-K filed
with the SEC on March 26, 2015. Signet undertakes no obligation to
update or revise any forward-looking statements to reflect
subsequent events or circumstances, except as required by law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160107005252/en/
Signet JewelersInvestors:James Grant, VP Investor
Relations+1-330-668-5412orMedia:David Bouffard, VP Corporate
Affairs+1-330-668-5369
Signet Jewelers (NYSE:SIG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Signet Jewelers (NYSE:SIG)
Historical Stock Chart
From Sep 2023 to Sep 2024