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Apr 29, 2023
Signet Q1 2024 Earnings Report
Signet's revenue and bottom-line commitments were delivered amidst macroeconomic headwinds.
Key Takeaways
Signet Jewelers reported Q1 Fiscal 2024 results with sales of $1.7 billion, a decrease of 9.3% compared to Q1 of FY23. Despite the decline, the company delivered on its revenue and bottom-line commitments while also raising its cost savings target by up to $150 million. The company is facing macroeconomic pressures, fewer engagements, and deeper competitive discounting.
Sales were $1.7 billion, down 9.3% compared to Q1 of FY23.
Same store sales decreased by 13.9% compared to Q1 of FY23.
GAAP operating income was $101.7 million, up from $0.2 million in Q1 of FY23.
Non-GAAP diluted EPS was $1.78, compared to $2.86 in Q1 of FY23.
Signet
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CapyFin.comRevenue by Geographic Location
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CapyFin.com Forward Guidance
Signet provided guidance for the second quarter and full year Fiscal 2024 on a non-GAAP basis. Total sales for Q2 are expected to be $1.53 billion to $1.58 billion, with operating income between $85 million and $100 million, and diluted EPS between $1.49 and $1.66. For the full year, sales are expected to be $7.10 billion to $7.30 billion, with operating income between $635 million and $675 million, and diluted EPS between $9.49 and $10.09.
Positive Outlook
- Guidance contemplates annual market share gains against total industry performance range.
- Planned capital investments up to $200 million, reflecting investments in banner differentiation, including stores, Connected Commerce capabilities, and digital and technology advancement.
- The Company expects headwinds to continue in engagements with recovery later in Fiscal 2024, and continue to rebound in Fiscal 2025.
- Annual tax rate of approximately 19% excludes additional discrete items.
- Earnings per share for Fiscal 2024 excludes the impact of any further share repurchases beyond the shares repurchased through today, and includes the dilutive effect of the 8.1 million preferred shares.
Challenges Ahead
- Annual US Jewelry industry revenues are now expected to be down more than the Company’s initial expectations of mid-single digits, driven by the impacts of macroeconomic factors on consumer spending and continued shift of consumer discretionary spend.
- The Company's guidance contemplates annual market share gains against this total industry performance range.
- Headwinds to continue in engagements with recovery later in Fiscal 2024
- Bridal overall, inclusive of engagements, historically represents nearly 50% of Signet’s merchandise sales.
- Annual tax rate of approximately 19% excludes additional discrete items.