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Jan 30, 2021
Signet Q4 2021 Earnings Report
Signet's Q4 2021 earnings were strong, with same-store sales up 7% and eCommerce sales up 70%.
Key Takeaways
Signet Jewelers reported a strong fourth quarter with a 1.5% increase in total sales, driven by a 7% growth in same-store sales and a 70.5% surge in eCommerce sales. The company's operating cash flow was $1.4 billion, with cash and cash equivalents ending at $1.2 billion. Signet is moving into the next phase of its growth strategy called ‘Inspiring Brilliance.’
Total sales increased by 1.5% to $2.2 billion.
Same store sales grew by 7.0%.
eCommerce sales increased by 70.5%, representing 23.4% of total sales.
Operating cash flow was $1.4 billion, with cash and cash equivalents at $1.2 billion at year end.
Revenue by Geographic Location
Forward Guidance
Signet provided financial guidance for Fiscal Year 2022, including total revenue between $5.85 billion and $6.00 billion and same store sales growth between 14% and 17%.
Positive Outlook
- Preliminary SSS for Q1 to date, through March 14, 2021, were approximately 16%.
- Signet expects stronger sales performance in the first half of the fiscal year.
- The Company’s Inspiring Brilliance strategy requires additional investments in digital and technology to further strengthen our competitive advantage and long-term positioning within the jewelry category.
- Gross cost savings of $50 million - $75 million are expected in Fiscal 2022, with continued benefits from closed stores and operational efficiencies. Cost savings are expected to benefit both SG&A and gross margin.
- Signet has planned Fiscal 2022 capital expenditures in the range of $150 million to $175 million, reflecting continued investments in technology and innovation.
Challenges Ahead
- As the vaccine rollout progresses, there could be a shift of consumer discretionary spending away from the jewelry category toward experience-oriented categories, the magnitude and timing of which is difficult to predict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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