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Oct 28, 2023
Signet Q3 2024 Earnings Report
Signet's earnings were delivered on the high end of expectations, driven by strategic goals and consumer insights, with reaffirmation of FY2024 guidance excluding the profitable sale of 15 U.K. stores.
Key Takeaways
Signet Jewelers reported Q3 Fiscal 2024 sales of $1.4 billion, a decrease of 12.1% compared to the previous year. EPS was $0.07, while non-GAAP EPS was $0.24. The company reaffirmed its FY2024 guidance, updated for the sale of 15 U.K. stores. Inventory is down 14% year-over-year and the company repurchased $35.1 million of shares during the quarter.
Sales decreased by 12.1% to $1.4 billion.
GAAP EPS was $0.07, and non-GAAP EPS was $0.24.
Inventory decreased by 14% year-over-year.
The company reaffirmed FY2024 guidance, updated for the sale of 15 U.K. stores.
Signet
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CapyFin.comRevenue by Geographic Location
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CapyFin.com Forward Guidance
Signet provided fourth quarter and full year Fiscal 2024 guidance on a non-GAAP basis, updated for the strategic sale of 15 luxury watch stores in the U.K.
Positive Outlook
- Total sales for Q4 are expected to be $2.40 billion to $2.60 billion.
- Total sales for Fiscal Year 2024 are expected to be $7.07 billion to $7.27 billion.
- Operating income for Q4 is expected to be $397 million to $437 million.
- Operating income for Fiscal Year 2024 is expected to be $630 million to $670 million.
- Diluted EPS for Fiscal Year 2024 is expected to be $9.55 to $10.18.
Challenges Ahead
- The guidance is updated for the strategic sale of 15 luxury watch stores in the U.K. in the fourth quarter, including approximately $25 million of revenue and $5 million of 4-wall operating income.
- The Company continues to expect headwinds in engagements with recovery beginning in the fourth quarter, and further rebound over the next three years.
- Planned capital investments up to $200 million, reflecting investments in banner differentiation, including stores, Connected Commerce capabilities, and digital and technology advancement.
- Annual tax rate of approximately 19% excludes additional discrete items.
- Diluted EPS for Fiscal 2024 includes the repurchase of an additional 0.5 million shares during Q3 and 0.1 million shares during Q4 of FY24, the dilutive effect of the 8.2 million preferred shares and excludes the impact of any further share repurchases beyond what is reported today.