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Jul 30, 2022
Signet Q2 2023 Earnings Report
Delivered double-digit operating margin and reaffirmed annual guidance.
Key Takeaways
Signet Jewelers reported Q2 Fiscal 2023 results with $1.8 billion in revenue and a 10.6% operating margin. The company's focus on market share, operating efficiencies, and strategic investments, including the acquisition of Blue Nile, positions it for long-term growth. Despite a softer topline environment, inventory discipline provided flexibility and working capital efficiencies.
Total sales were $1.8 billion, down 1.9% compared to a record Q2 of FY22, but up 29% versus Q2 of FY20.
Same store sales decreased by 8.2% compared to Q2 of FY22.
GAAP operating income was $186.8 million, down from $225.4 million in Q2 of FY22.
Cash and cash equivalents at quarter end were $851.7 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Signet is reaffirming its full year Fiscal 2023 revenue and operating income guidance which is provided on a non-GAAP basis.
Positive Outlook
- Total revenue (in billions) $1.46 to 1.49
- Operating income (in millions) $20 to 34
- Diluted EPS $10.98 to $11.57
- Total revenue (in billions)$7.60 to $7.70
- Operating income (in millions)$787 to $828
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.
- The Company’s outlook does not include 1) a material worsening of macroeconomic factors which could impact consumer spending patterns and have associated impacts on business performance; 2) the acquisition of Blue Nile, Inc.
- Signet continues to anticipate some shift of consumer discretionary spending away from the jewelry category reflecting pent-up demand for experience-oriented categories during the year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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