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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.
Signet
Signet
Signet Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.
- Signet expects categories with pent up demand to be promotional in order to capture discretionary spend.
- The Company is conservatively planning for same store sales to be negative in the second half of the fiscal year.
- Continued uncertainty surrounding multiple factors include the magnitude and potential resurgence of COVID-19 in key trade areas, extended duration of heightened unemployment, supply chain disruptions and macro or governmental influences on consumers’ ability to spend, particularly in discretionary categories like jewelry.
- There can be no assurance that preliminary quarter to date trends will continue for the remainder of the first quarter and are not indicative of future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income