Signet Q4 2022 Earnings Report
Key Takeaways
Signet Jewelers reported strong Q4 2022 results, with total sales increasing by 28.6% to $2.8 billion. The company's performance was driven by investments in Connected Commerce capabilities and differentiated banner assortment and marketing, leading to meaningful share gains.
Total sales increased by 28.6% to $2.8 billion compared to last year.
Brick and mortar sales increased by 34.6% to $2.3 billion.
eCommerce sales increased by 8.7% to $556.0 million.
GAAP diluted earnings per share increased to $4.91, up from $4.12 in Q4 of FY21.
Signet
Signet
Signet Revenue by Geographic Location
Forward Guidance
Signet provided its Fiscal 2023 outlook on a non-GAAP basis, expecting annual industry revenues to be down low single digits to roughly flat. The company's guidance contemplates market share gains against this total industry performance range.
Positive Outlook
- Total revenue $1.78 billion - $1.82 billion for Q1 2023
- Operating income $177 million - $186 million for Q1 2023
- Earnings Per Share $12.28 - $13.00 for Q1 2023
- Total revenue $8.03 billion to $8.25 billion for FY2023
- Operating income $921 million - $974 million for FY2023
Challenges Ahead
- Annual industry revenues are expected to be down low single digits to roughly flat.
- Guidance assumes no significant disruptions in availability of inventory.
- The Company expects inflationary pressures in the diamond market to continue in Fiscal 2023
- Signet anticipates some shift of consumer discretionary spending away from the jewelry category.
- The above guidance excludes non-recurring charges of approximately $11 million relating to the step-up of Diamonds Direct inventory
Revenue & Expenses
Visualization of income flow from segment revenue to net income