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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.
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 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.
- Signet’s efforts to mitigate supply chain disruption have been effective thus far. Guidance assumes no significant disruptions in availability of inventory.
- The Company’s outlook factors in a level of promotion.