Signet Q1 2022 Earnings Report
Key Takeaways
Signet Jewelers reported strong first-quarter results with total sales of $1.7 billion, a 98.2% increase year over year. Same-store sales increased by 106.5%, and eCommerce sales were up 110.3%. The company's GAAP diluted EPS was $2.23, a significant improvement from prior periods.
Total sales were $1.7 billion, an increase of over $250 million to Q1 of FY20 and more than $835 million to Q1 of FY21.
Q1 same store sales up 106.5% to Q1 of FY21 and up 27.2% to Q1 of FY20.
GAAP diluted earnings per share of $2.23, up from a loss per share of ($3.96) in Q1 of FY21 and ($0.35) in Q1 of FY20.
Non-GAAP diluted EPS of $2.23, an increase from a loss per share of ($1.59) in Q1 of FY21 and EPS of $0.08 in Q1 of FY20.
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Forward Guidance
Signet Jewelers provided guidance for the second quarter of Fiscal 2022, with total revenue expected to be in the range of $1.60 to $1.65 billion and same-store sales expected to increase by 76% to 82%.
Positive Outlook
- Signet expects stronger sales performance in the first half of the fiscal year.
- The Company has increased its gross cost savings expectations for Fiscal 2022 to $75 million to $95 million from $50 million to $75 million.
- Signet’s cost savings have been identified to partially mitigate the additional investments required in digital and technology to further strengthen the Company’s competitive advantage and long-term positioning within the jewelry category.
- With the flexibility of Signet’s liquidity position, the Company has raised its planned Fiscal 2022 capital expenditures to the range of $175 million to $200 million from $150 million to $175 million.
- Aligning with Signet’s capital priorities, the increased level of investments will continue to focus on technology and innovation.
Challenges Ahead
- Signet expects some current tailwinds from stimulus and slower than anticipated return to travel and experience spending to subside in the back-half of 2021.
- Signet continues to expect same store sales to be negative in the second half of Fiscal 2022.
- The magnitude and timing of this shift is difficult to predict.
- Signet is planning for increased marketing expenses to continue to fuel momentum from the first half of Fiscal 2022 as well as to proactively manage against shifts in consumer spending as the year progresses.
- Signet expects to close over 100 stores in Fiscal 2022.