Temporarily Closing All Stores in North
America
Taking Immediate Actions to Increase Financial
Flexibility
Not Providing Fiscal 2021 Financial
Guidance
Signet Jewelers Limited (“Signet”) (NYSE:SIG), the world's
largest retailer of diamond jewelry, today provided an update on
its global operations in response to the continued spread and
impact of COVID-19.
Virginia C. Drosos, Chief Executive Officer, stated: “Our hearts
and prayers go out to all who have been impacted by this global
pandemic. We greatly appreciate the many workers and family members
who are caring for those in need. I also want to thank our
dedicated Signet team members who have found many new and
innovative ways to safely help our customers continue to celebrate
love during this difficult time.
The health and safety of our team members and customers
continues to be our top priority. Out of the highest respect for
governmental orders and the advice of leading health officials, we
have temporarily closed our physical locations in North America.
Store team members will receive pay and benefits through April 4,
2020 in a combination of base pay and available paid time off
provisions, at which time we will further assess the situation. We
will continue to follow the guidelines of government and health
officials in determining when we will reopen our stores. Most
importantly, we will continue to make all decisions guided by our
core value of People First.”
Ms. Drosos continued, “The exceptional team, capabilities, and
agility we have built through our Path to Brilliance transformation
over the past two years strongly position us to navigate this time
of uncertainty. Retailers are already experiencing the severe
impact of the impact of COVID-19 on the global economy, and we are
anticipating continued reduction in consumer spend. We are moving
quickly and aggressively to strengthen Signet’s financial
flexibility, prioritize investments, and reduce capital
expenditures and operating expenses. This will include implementing
reduced work hours, furloughs and reduced compensation across store
and support center teams as we navigate this unprecedented
environment.”
Store Closures
The Company has temporarily closed all of its stores in North
America effective March 23, 2020. This includes the Company’s Kay
Jewelers, Zales, Jared, James Allen, Peoples and Piercing Pagoda
banners and the Company’s support centers. Following these
temporary closures, the Company will reopen stores as pandemic
conditions allow.
OmniChannel & Ecommerce
Our teams continue to work tirelessly to help our millions of
customers Celebrate Life and Express Love. To this end we have made
strategic investments in our eCommerce platforms resulting in
enhanced online customer shopping experiences. For all of life’s
most meaningful moments, from birthdays to engagements, Signet’s
online platforms and channels remain open: www.kay.com,
www.zales.com, www.jared.com, www.hsamuel.co.uk,
www.ernestjones.co.uk, www.peoplesjewellers.com, www.pagoda.com,
and www.jamesallen.com.
Increasing Financial Flexibility
As a prudent measure to increase Signet’s financial flexibility
and bolster its cash position, the Company elected to access an
additional $900 million from its senior secured asset-based
revolving credit facility. At the time of drawdown on March 19, the
Company had more than $1.2 billion in cash and an additional $292
million available on this asset-based revolving credit
facility.
The asset-based revolving credit facility is subject to a fixed
charge coverage ratio if availability under the facility falls
below 10% of the borrowing base or $100 million whichever is
higher. The Company’s most recently reported borrowing base under
the asset-based revolving credit facility is approximately $1.4
billion. The Company’s senior unsecured notes due in 2024 are not
subject to financial covenants.
The Company is aggressively reducing capital expenditures,
prioritizing investments in flexible fulfillment and digital
initiatives, and reducing operating expenses, as well as focusing
on inventory discipline. This will include implementing reduced
work hours, furloughs, and reduced compensation across store and
Support Center teams including executives and Board of
Directors.
Fiscal 2021 Outlook
As announced on January 16, 2020, Signet’s holiday period same
store sales were up 1.6%, with North America same store sales up
2.0% and eCommerce sales up 13.5%. The Company will report its
final fourth quarter and fiscal year 2020 results on Thursday,
March 26, 2020. Signet will provide an update on first quarter
sales trends to date but will not provide guidance for first
quarter or full year Fiscal 2021.
About Signet Jewelers
Signet Jewelers Limited is the world's largest retailer of
diamond jewelry. Signet operates approximately 3,200 stores
primarily under the name brands of Kay Jewelers, Zales, Jared,
H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and
JamesAllen.com. Further information on Signet is available at
www.signetjewelers.com. See also www.kay.com, www.zales.com,
www.jared.com, www.hsamuel.co.uk,
www.ernestjones.co.uk,www.peoplesjewellers.com, www.pagoda.com, and
www.jamesallen.com.
Forward-Looking Statements
This release contains statements which are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, based upon management’s
beliefs and expectations as well as on assumptions made by and data
currently available to management, appear in a number of places
throughout this document and include statements regarding, among
other things, Signet’s results of operation, financial condition,
liquidity, prospects, growth, strategies and the industry in which
Signet operates. The use of the words “expects,” “intends,”
“anticipates,” “estimates,” “predicts,” “believes,” “should,”
“potential,” “may,” “forecast,” “objective,” “plan,” or “target,”
and other similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to a number of
risks and uncertainties which could cause the actual results to not
be realized, including, but not limited to: the impact of a public
health crisis or disease outbreak, epidemic or pandemic, such as
the recent novel coronavirus on Signet’s business; general economic
or market conditions, financial market risks, or other factors that
relate to us, including our ability to optimize Signet's
transformation initiative; a decline in consumer spending or
deterioration in consumer financial position; changes to
regulations relating to customer credit, disruption in the
availability of credit for customers and customer inability to meet
credit payment obligations; our ability to achieve the benefits
related to the outsourcing of the credit portfolio sale due to
technology disruptions, future financial results and operating
results and/or disruptions arising from changes to or termination
of the non-prime outsourcing agreement requiring transition to
alternative arrangements through other providers or alternative
payment options; deterioration in the performance of individual
businesses or of the Company's market value relative to its book
value, resulting in impairments of fixed assets or intangible
assets or other adverse financial consequences; the volatility of
our stock price; the impact of financial covenants, credit ratings
or interest volatility on our ability to borrow; changes in our
credit rating; potential regulatory changes, global economic
conditions or other developments related to the United Kingdom’s
exit from the European Union; exchange rate fluctuations; the cost,
availability of and demand for diamonds, gold and other precious
metals; stakeholder reactions to disclosure regarding the source
and use of certain minerals; seasonality of Signet’s business; the
merchandising, pricing and inventory policies followed by Signet
and failure to manage inventory levels; Signet’s relationships with
suppliers and ability to obtain merchandise that customers wish to
purchase; the failure to adequately address the impact of existing
tariffs and/or the imposition of additional duties, tariffs, taxes
and other charges or other barriers to trade or impacts from trade
relations; the level of competition and promotional activity in the
jewelry sector; the development and maintenance of Signet’s
OmniChannel retailing and ability to increase digital sales;
changes in consumer attitudes regarding jewelry and failure to
anticipate and keep pace with changing fashion trends; changes in
the supply and consumer acceptance of and demand for gem quality
lab created diamonds and adequate identification of the use of
substitute products in our jewelry; ability to execute successful
marketing programs and manage social media; the ability to optimize
Signet’s real estate footprint; the ability to satisfy the
accounting requirements for “hedge accounting,” or the default or
insolvency of a counterparty to a hedging contract; the performance
of and ability to recruit, train, motivate and retain qualified
sales associates; management of social, ethical and environmental
risks; the reputation of Signet and its banners; inadequacy in and
disruptions to internal controls and systems, including related to
the migration to a new financial reporting information technology
system; security breaches and other disruptions to Signet’s
information technology infrastructure and databases; and an adverse
development in legal or regulatory proceedings or tax matters, any
new regulatory initiatives or investigations, and ongoing
compliance with regulations and any consent orders or other legal
or regulatory decisions; failure to comply with labor regulations;
collective bargaining activity; changes in taxation laws, rules or
practices in the US and jurisdictions in which Signet’s
subsidiaries are incorporated, including developments related to
the tax treatment of companies engaged in Internet commerce; risks
related to international laws and Signet being a Bermuda
corporation; difficulty or delay in executing or integrating an
acquisition, business combination, major business or strategic
initiative; risks relating to the outcome of pending litigation;
our ability to protect our intellectual property or physical
assets; changes in assumptions used in making accounting estimates
relating to items such as extended service plans and pensions; the
success of recent changes in Signet’s executive management team; or
the impact of weather-related incidents, natural disasters or
terrorism and acts of war on Signet’s business.
For a discussion of these and other risks and uncertainties
which could cause actual results to differ materially from those
expressed in any forward-looking statement, see the “Risk Factors”
and "Forward-Looking Statements" sections of Signet’s reports filed
with the SEC, including its annual report on Form 10-K and
quarterly reports on Form 10-Q and the "Safe Harbor Statements"
included in its current reports on Form 8-K. Signet undertakes no
obligation to update or revise any forward-looking statements to
reflect subsequent events or circumstances, except as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200323005328/en/
Investors: Randi Abada SVP Corporate Finance Strategy &
Investor Relations +1 330 668 3489 randi.abada@signetjewelers.com
Media: Colleen Rooney Chief Communications Officer +1 267 438 8611
colleen.rooney@signetjewelers.com David Bouffard Vice President,
Corporate Affairs 1-330-668-5369
david.bouffard@signetjewelers.com
Signet Jewelers (NYSE:SIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Signet Jewelers (NYSE:SIG)
Historical Stock Chart
From Apr 2023 to Apr 2024