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Apr 30, 2022
Signet Q1 2023 Earnings Report
Delivered strong revenue growth and expanded non-GAAP operating margin
Key Takeaways
Signet Jewelers reported strong Q1 fiscal 2023 results with total sales of $1.8 billion, up 8.9% year-over-year. Same store sales increased by 2.5%. Non-GAAP diluted EPS was $2.86, up from $2.23 in the prior year. The company reaffirms its full year guidance and expanded its share repurchase authorization by $500 million.
Total sales were $1.8 billion, up 8.9% to Q1 of FY22.
Same store sales (“SSS”) up 2.5% to Q1 of FY22.
Non-GAAP diluted EPS of $2.86, up from $2.23 in Q1 of FY22.
Completed $318.2 million of share repurchases during Q1, including $50 million related to completion of the previously announced accelerated share repurchase agreement.
Signet
Signet
Signet Revenue by Segment
Signet Revenue by Geographic Location
Revenue by Segment
Other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
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CapyFin.com Forward Guidance
Signet is reaffirming its Fiscal 2023 annual outlook which is provided on a non-GAAP basis.
Positive Outlook
- Total revenue (in billions) $1.79 to $1.82
- Total revenue (in billions) $8.03 to $8.25
- Operating income (in millions) $188 to $204
- Operating income (in millions) $921 to $974
- Diluted EPS $12.72 to $13.47
Challenges Ahead
- The Company’s outlook includes a level of consumer pressure, including inflation and the impact of stimulus, similar to what is currently being experienced.
- Signet continues to anticipate some shift of consumer discretionary spending away from the jewelry category reflecting decelerating levels of consumer confidence and pent-up demand for experience-oriented categories during the year.
- Signet’s efforts to mitigate supply chain disruption have been effective thus far. Guidance assumes no significant disruptions in availability of inventory.
- Annual effective tax rate of approximately 19% assumes no additional discrete items and no changes in current tax laws during the remainder of Fiscal 2023.
- The above guidance excludes non-recurring charges for Fiscal 2023 related to the resolution of previously disclosed legal matter of $190 million, approximately $11 million relating to the fair value adjustment of acquired inventory that will be recognized within cost of sales in Fiscal 2023, and the non-operating non-cash charges for the buy-out of substantially all of the UK pension obligations of approximately $132 million.