Signet Q4 2024 Earnings Report
Key Takeaways
Signet Jewelers reported Q4 2024 results with total sales of $2.5 billion, a decrease of 6.3% compared to Q4 FY23. Despite the sales decline, GAAP operating income increased to $416.3 million from $369.5 million in the prior year, and GAAP diluted EPS rose to $11.75, which included a significant benefit from a deferred tax asset. The company also announced a $350 million cost out initiative and raised its share repurchase authorization to $850 million.
Total sales decreased by 6.3% to $2.5 billion, including a $103.2 million contribution from the 53rd week.
GAAP operating income increased to $416.3 million, up from $369.5 million in Q4 FY23.
GAAP diluted EPS was $11.75, compared to $5.02 in Q4 FY23, benefiting from a deferred tax asset.
Cash and cash equivalents at year-end were $1.4 billion, up approximately $212 million from Q4 FY23.
Signet
Signet
Signet Revenue by Segment
Signet Revenue by Geographic Location
Forward Guidance
Signet provided its first quarter and full year Fiscal 2025 guidance, anticipating sequential same store sales improvement and an increase in engagement incidents. The company expects total sales of $1.47 to $1.53 billion for Q1 2025 and $6.66 to $7.02 billion for the full fiscal year.
Positive Outlook
- Trends notably improving since mid-February.
- Expects US engagement incidents to be up 5% to 10% to Fiscal 2024.
- Approximately $150 million to $180 million in new cost savings initiatives leveraging technology such as AI, sourcing efficiencies, and spend discipline.
- Investments in 20 to 30 new stores, nearly 300 renovations with focus on Kay, Jared and Diamonds Direct stores.
- Investments in Connected Commerce capabilities, and digital and technology advancement.
Challenges Ahead
- Reflects a soft start to the quarter.
- The Company expects US engagement incidents to be down low to mid-single digits compared to the first quarter of Fiscal 2024.
- The Company expects an approximately 1.5% to 2.0% negative impact to sales from integration issues with its Digital banners.
- Approximately $225 million in non-comparable sales headwinds reflecting over $100 million from the 53rd week in Fiscal 2024, approximately $75 million in the UK from the sale of previously announced prestige watch locations in the UK and up to 30 Ernest Jones store closures, and approximately $50 million from total store closures in North America in Fiscal 2024 and Fiscal 2025.
- The Company anticipates net square footage decline of 1% to flat for the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income