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Jul 31, 2021
Signet Q2 2022 Earnings Report
Reported strong Q2 2022 results, exceeding expectations and raising FY22 guidance.
Key Takeaways
Signet Jewelers reported strong second quarter performance with total sales of $1.8 billion, a significant increase compared to the previous year. Same store sales were up 97.4%, and the company raised its guidance for the year, reflecting business strength and confidence in its growth strategy.
Total sales were $1.8 billion, an increase of more than $900 million to Q2 of FY21 and more than $423 million to Q2 of FY20.
Same store sales up 97.4% to Q2 of FY21 and up 38.1% to Q2 of FY20.
GAAP operating income of $225.4 million, up from a loss of $89.7 million in Q2 of FY21 and a loss of $22.4 million in Q2 of FY20.
Non-GAAP diluted EPS of $3.57, an increase from a loss per share of $1.13 in Q2 of FY21 and EPS of $0.51 in Q2 of FY20.
Signet
Signet
Signet Revenue by Segment
Signet Revenue by Geographic Location
Revenue by Segment
Other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Signet expects total revenue between $1.26 to $1.31 billion and same store sales between (3%) to 1% for the third quarter of fiscal 2022. The company expects total revenue between $6.80 to $6.95 billion and same store sales between 30% to 33% for the full fiscal year 2022.
Positive Outlook
- Continued uncertainty regarding macroeconomic factors exists.
- Signet continues to expect a shift of consumer discretionary spending away from the jewelry category toward experience-oriented categories within the second half of the fiscal year.
- The Company has increased its gross cost savings expectations for Fiscal 2022 to $85 million to $105 million from $75 million to $95 million.
- Signet has narrowed its planned Fiscal 2022 capital expenditures to a range of $190 million to $200 million from $175 million to $200 million.
- Signet's efforts to mitigate supply chain disruption amongst the pandemic impact on India have been effective thus far.
Challenges Ahead
- Magnitude and duration of COVID-19 resurgence through the Delta variant in key trade areas
- Extended duration of heightened unemployment
- Supply chain disruptions
- Pricing environment changes (including, but not limited to, materials, labor, fulfillment and advertising costs)
- Government support policies which can impact consumers’ ability to spend, particularly in discretionary categories like jewelry.