Signet Q2 2022 Earnings Report
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
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Signet Revenue by Segment
Signet Revenue by Geographic Location
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.