HAMILTON, Bermuda, March 18, 2021 /PRNewswire/ -- Signet Jewelers
Limited ("Signet") (NYSE:SIG), the world's largest retailer of
diamond jewelry, today announced its results for the 13 weeks
("fourth quarter Fiscal 2021") and 52 weeks ("Fiscal 2021") ended
January 30, 2021.
"This quarter marked an important milestone for Signet as our
team delivered a strong fourth quarter and third year of the
Company's Path to Brilliance transformation. These results reflect
the exceptionally hard work and resilience of our Signet team
members in a uniquely challenging time. I'm so appreciative
of their passion, commitment to our purpose, and agility in meeting
the needs of our customers with new digital capabilities.
They are the driving force behind our success and are positioning
us for long-term growth," said Virginia C.
Drosos, Chief Executive Officer.
Drosos continued, "Our company today is stronger: we're more
innovative, efficient, and digitally advanced. We are capitalizing
on our momentum as we move into the next phase of our growth
strategy called 'Inspiring Brilliance.' It is focused on winning in
our big banners, categories and countries; accelerating Services
revenue; broadening our mid-market with expansion in the Accessible
Luxury and Value segments; and accelerating Digital Commerce, all
with an emphasis on leading innovation in the jewelry industry and
growing the scope of Signet's market. The cornerstone of this
strategy will remain centered on our purpose of Inspiring Love and
being a catalyst for positive change in our company, industry and
community."
Business and Strategy Update
The next phase of Signet's growth strategy is called Inspiring
Brilliance. Inspiring Brilliance builds on foundational
improvements implemented over the past three years and is focused
on leading innovation in the jewelry industry and achieving
sustainable long-term growth as follows:
- The Company will utilize data-driven insights to target new and
existing customers. Signet's Customer First strategy will evolve
into a Consumer-Inspired experience that includes both tailored
merchandise assortments as well as expanded services designed to
offer more innovative and personalized experiences to engage and
delight consumers.
- Signet intends to be the leader in the jewelry industry in
digital commerce by offering its customers a seamless and efficient
experience at every step of their shopping journey. As such,
the Company will evolve its OmniChannel strategy into true
Connected Commerce that integrates its physical and digital
footprints to serve customers where, when and how they want to be
served, including virtual selling and fast, flexible
fulfillment.
- Signet plans to further elevate its culture from one of agility
and efficiency to one that expands to fully embrace innovation and
purpose as an integral part of the Company's strategy. Building on
its long-standing commitment to Corporate Social Responsibility,
Signet is continuing its efforts to be a purpose-driven and
sustainability-focused company. To that end, the Company has joined
the UN Global Compact and the Sustainability Accounting Standards
Board (SASB) Alliance. In addition, to further Signet's commitment
to community impact, Signet launched the Love Inspires Foundation
to bring our purpose to life in all the communities we serve.
Inspiring Brilliance includes a priority on transformational
productivity which the Company expects to benefit both efficiencies
in SG&A as well as gross margin over the next three years in
the range of $175M to $200M to help offset critical investments in
technology and innovation. The Company will continue to focus on
working capital efficiency. Signet will further optimize
its store footprint, transitioning to off-mall formats and adding
highly efficient kiosks in underserved markets. Capital allocation
priorities for Signet remain: 1) investing in the business, 2)
reducing debt leverage, now targeting below 3.0x Adjusted
Debt/EBITDAR over time and 3) returning cash to shareholders.
Fourth Quarter Fiscal 2021:
- Total sales were $2.2 billion, an
increase of 1.5% to last year. Same store sales ("SSS") grew
7.0%2.
- eCommerce sales increased 70.5% to last year and were 23.4% of
sales.
- Brick and mortar SSS were down 4.2%.
- Operating cash flow of $1.4
billion with cash and cash equivalents of $1.2 billion at year end.
- Ending inventory was $2.0
billion, $299 million lower to
last year.
- Fully paid down revolving credit facility and FILO loan during
the quarter.
|
|
Q4 Fiscal
2021
|
|
Q4 Fiscal
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
Revenue ($ in
millions)
|
|
$
|
2,186.5
|
|
|
$
|
2,153.3
|
|
|
$
|
5,226.9
|
|
|
$
|
6,137.1
|
|
Same store sales %
change(2)
|
|
|
7.0
|
%
|
|
2.3
|
%
|
|
(10.8)
|
%
|
|
0.6
|
%
|
GAAP
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
291.9
|
|
|
$
|
223.2
|
|
|
$
|
(57.7)
|
|
|
$
|
158.3
|
|
Operating income
(loss) as % of sales
|
|
13.4
|
%
|
|
10.4
|
%
|
|
(1.1)
|
%
|
|
2.6
|
%
|
GAAP Diluted
EPS
|
|
$
|
4.12
|
|
|
$
|
3.14
|
|
|
$
|
(0.94)
|
|
|
$
|
1.40
|
|
Non-GAAP(1)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
293.8
|
|
|
$
|
270.3
|
|
|
$
|
156.4
|
|
|
$
|
318.3
|
|
Operating income as %
of sales
|
|
13.4
|
%
|
|
12.6
|
%
|
|
3.0
|
%
|
|
5.2
|
%
|
Non-GAAP Diluted
EPS
|
|
$
|
4.15
|
|
|
$
|
3.67
|
|
|
$
|
2.11
|
|
|
$
|
3.88
|
|
|
|
(1)
|
See non-GAAP
reconciliation page
|
(2)
|
Same store sales
include physical stores and eCommerce sales
|
By operating segment:
North America
- North America SSS grew 10.4%, with eCommerce sales growth of
66.0%, and brick and mortar SSS growth of 0.6%.
- Signet's enhanced OmniChannel capabilities continue to drive
improved conversion levels in a period of suppressed retail
industry traffic. Average transaction value ("ATV") increased 1.1%
and the number of transactions increased 9.9%.
- All US banners delivered SSS growth for the second consecutive
quarter, reflecting the continued effectiveness of Signet's banner
value proposition.
International
- International SSS decreased 28.3%, with eCommerce sales growth
of 115.1% offset by brick and mortar SSS decline of 56.2%
reflecting the continued impact of COVID-19 related lockdowns.
- ATV grew 6.3% and the number of transactions decreased
29.7%.
Gross margin was $869.5 million,
or 39.8% of sales, 190 bps lower versus the prior year quarter. The
gross margin rate reflected strategic promotion to further
inventory optimization efforts and reduced levels of service
revenue primarily related to lower store traffic.
SGA was $573.8 million, or 26.2%
of sales, compared to $633.2 million,
or 29.4% of sales in the prior year. The rate improvement of 320
basis point was largely driven by lower labor, advertising expense
and central costs.
GAAP operating income was $291.9
million or 13.4% of sales, compared to $223.2 million, or 10.4% of sales in the prior
year fourth quarter. The improvement over last year was driven by
the combination of higher sales volume and operational efficiencies
as noted above.
|
|
Fourth quarter
Fiscal 2021
|
|
Fourth quarter
Fiscal 2020
|
GAAP Operating
income/(loss) in millions
|
|
$
|
|
% of
sales
|
|
$
|
|
% of
sales
|
North America
segment
|
|
296.2
|
|
|
14.4
|
%
|
|
$
|
255.5
|
|
|
13.1
|
%
|
International
segment
|
|
9.3
|
|
|
7.6
|
%
|
|
25.5
|
|
|
13.7
|
%
|
Other segment
(1)
|
|
(1.1)
|
|
|
nm
|
|
|
(1.5)
|
|
|
nm
|
|
Corporate and
unallocated expenses
|
|
(12.5)
|
|
|
nm
|
|
|
(56.3)
|
|
|
nm
|
|
Total GAAP operating
income
|
|
$
|
291.9
|
|
|
13.4
|
%
|
|
$
|
223.2
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes sales from
Signet's diamond sourcing initiative.
|
nm Not
meaningful.
|
Non-GAAP operating income was $293.8
million, or 13.4% of sales, compared to $270.3 million, or 12.6% of sales in prior year
fourth quarter. Non-GAAP operating income excludes $1.9 million in impairment and restructuring
charges related to the Path to Brilliance transformation plan.
|
|
Fourth quarter
Fiscal 2021
|
|
Fourth quarter
Fiscal 2020
|
Non-GAAP Operating
income/(loss) in millions
|
|
$
|
|
% of
sales
|
|
$
|
|
% of
sales
|
North America
segment
|
|
$
|
294.7
|
|
|
14.3
|
%
|
|
$
|
263.3
|
|
|
13.5
|
%
|
International
segment
|
|
12.5
|
|
|
10.2
|
%
|
|
30.1
|
|
|
16.2
|
%
|
Other segment
(1)
|
|
(1.1)
|
|
|
nm
|
|
|
(1.5)
|
|
|
nm
|
|
Corporate and
unallocated expenses
|
|
(12.3)
|
|
|
nm
|
|
|
(21.6)
|
|
|
nm
|
|
Total Non-GAAP
operating income
|
|
$
|
293.8
|
|
|
13.4
|
%
|
|
$
|
270.3
|
|
|
12.6
|
%
|
|
|
(1)
|
Includes sales from
Signet's diamond sourcing initiative.
|
nm Not
meaningful.
|
The current quarter GAAP effective tax rate of 10.8% and the
non-GAAP effective tax rate was 11.0% were primarily driven by
pre-tax earnings mix by jurisdiction.
GAAP EPS was $4.12, including: 1)
a $0.02 charge related to the Path to
Brilliance transformation plan, 2) a $0.01 charge related to the impairment of
long-lived assets, 3) a $0.01 charge
related to debt extinguishment, and 4) tax impact of these items of
$(0.01). Excluding these charges, EPS
was $4.15 on a non-GAAP basis.
GAAP and non-GAAP EPS in the quarter is based on non-GAAP net
income before preferred dividends, with the preferred shares
included in diluted share count due to the level of fourth quarter
non-GAAP net income.
Full Year Fiscal 2021 Financial Results:
Signet's
total sales for the year ended January 30, 2021 were
$5.2 billion. This is $910.2 million, or 14.8%, lower to the prior year
on a reported basis and 14.9% lower on a constant currency basis.
Total SSS decreased 10.8% year-over-year.
eCommerce sales were $1.2 billion,
up 57.9% year over year. eCommerce sales accounted for 22.7% of
sales, up from 12.2% of sales in the prior year. Brick and mortar
SSS declined 21.3%.
By operating segment:
North America
- North America SSS decreased 9.5%, with eCommerce sales growth
of 55.8% and brick and mortar SSS decline of 19.4%.
- ATV was flat to last year and the number of transactions
decreased 7.6%.
International
- International SSS decreased 25.0%, with eCommerce sales growth
of 80.6% offset by brick and mortar SSS decline of 41.7%.
- ATV increased 8.5% and the number of transactions decreased
30.4%.
Balance Sheet and Statement of Cash Flows:
Operating cash flow for Fiscal 2021 was $1.4 billion, compared to $555.7 million in the prior year. Cash and cash
equivalents were $1.2 billion as of
January 30, 2021, compared to $374.5
million at prior-year end.
Inventory ended the year at $2.0
billion, 12.8%, or $299
million, lower to last year due to improved inventory life
cycle management and the implementation of flexible
fulfillment.
Long-term debt was $146.7 million,
down $369.2 million, to the prior
year. Subsequent to the previously announced pay down of its ABL
Revolving Facility, the Company paid down its related FILO loan
within the quarter.
Quarterly Dividend:
Signet's Board of Directors has elected to maintain the
temporary suspension of the dividend program on the common shares
and has elected to resume cash payment of the quarterly dividend on
its preference shares beginning with the scheduled May dividend.
The Company will continue to evaluate a reinstatement of the common
dividend as the year progresses.
Fiscal 2022 Guidance:
|
First
Quarter
|
|
Fiscal
2022
|
Total
revenue
|
$1.42 billion - $1.46
billion
|
|
$5.85 billion to
$6.00 billion
|
Same store
sales1
|
80% to 84%
|
|
14% to 17%
|
Non-GAAP operating
income
|
$40 million - $60
million
|
|
$290 million - $324
million
|
|
|
(1)
|
Same store sales
include physical stores and eCommerce sales
|
Forecasted non-GAAP operating income provided above excludes
potential non-recurring charges. However, given the potential
impact of non-recurring charges to the GAAP operating income, we
cannot provide forecasted GAAP operating income or the probable
significance of such items without unreasonable efforts. As such,
we do not present a reconciliation of forecasted non-GAAP operating
income to corresponding GAAP operating income.
The Company's Fiscal 2022 Outlook is based on the following
assumptions:
- Preliminary SSS for Q1 to date, through March 14, 2021, were approximately 16%.
Given the strong performance to date, the quarter plan includes
continued investment in digital capabilities and increased
marketing. The increase in investments is reflected in the
Signet's first quarter guidance.
- Signet expects stronger sales performance in the first half of
the fiscal year. 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. Further,
Signet expects categories with pent up demand to be promotional in
order to capture discretionary spend. As such, the Company is
planning for increased marketing expenses to continue to fuel
momentum in the front half as well as to proactively manage against
shifts in consumer spending as the year progresses. While
Signet's transformational initiatives continue to gain traction,
the Company is conservatively planning for same store sales to be
negative in the second half of the fiscal year. Depending on
the timing and extent of potential shifts in spending, future
results could differ materially from current guidance.
- 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. To partially mitigate the increased level of
investment, 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. Recall that the Company reduced its
capital expenditures in Fiscal 2021 to $83
million given the cash conservation focus in response to the
pandemic.
- The Company is planning to close over 100 stores in Fiscal 2022
and will open up to 100 locations, primarily in highly efficient
kiosks.
- 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. Further, 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. Please
see disclosures within the Safe Harbor Statement for other risk
factors.
Conference Call:
A conference call is scheduled for March 18, 2021 at
8:30 a.m. ET and a simultaneous audio
webcast is available at www.signetjewelers.com. The call details
are:
Toll Free Dial-in: +1-866-652-5200
International Dial-in: +1-412-317-6060
Conference call participants may also pre-register at:
https://dpregister.com/sreg/10152429/e2cb61e915
A replay and transcript of the call will be posted on Signet's
website as soon as they are available and will be accessible for
one year.
About Signet and Safe Harbor Statement:
Signet Jewelers Limited is the world's largest retailer of
diamond jewelry. Signet operates approximately 2,800 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.
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," "preliminary," "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 negative impacts
that the COVID-19 pandemic has had, and will continue to have, on
Signet's business, financial condition, profitability and cash
flows; the effect of steps we take in response to the pandemic; the
severity and duration of the pandemic, including whether it is
necessary to temporarily reclose our stores, distribution centers
and corporate facilities or for our suppliers and vendors to
temporarily reclose their facilities; the pace of recovery when the
pandemic subsides and the heightened impact it has on many of the
risks described herein, including without limitation risks relating
to disruptions in our supply chain, consumer behaviors such as
spending and willingness to congregate in shopping centers and the
impact on demand of our products, our level of indebtedness and
covenant compliance, availability of adequate capital, our ability
to execute our business plans, our lease obligations and
relationships with our landlords, and asset impairments; general
economic or market conditions; financial market risks; 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,
including due to technology disruptions, future financial results
and operating results and/or disruptions arising from changes to or
termination of the relevant non-prime outsourcing agreement
requiring transition to alternative arrangements through other
providers or alternative payment options and our ability to
successfully establish future arrangements for the forward-flow
receivables; deterioration in the performance of individual
businesses or of the Company's market value relative to its book
value, resulting in impairments of long-lived 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; our ability to
maintain adequate levels of liquidity for our cash needs, including
debt obligations, payment of dividends, and capital expenditures as
well as the ability of our customers, suppliers and lenders to
access sources of liquidity to provide for their own cash needs;
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 including the ability to continue to utilize extended
payment terms and the 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; our ability to optimize
Signet's multi-year strategy to gain market share, expand and
improve existing services, innovate and achieve sustainable,
long-term growth; the maintenance and continued innovation 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; an adverse
development in legal or regulatory proceedings or tax matters,
including any new claims or litigation brought by employees,
suppliers, consumers or shareholders, 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,
strikes, protests, riots or terrorism, acts of war or another
public health crisis or disease outbreak, epidemic or pandemic 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 Item 1A, Risk
Factors, and elsewhere in the Annual Report on Form 10-K for the
year ended February 1, 2020 filed
with the SEC on March 26, 2020, as
well as the Quarterly Report on Form 10-Q for the quarterly period
ended October 31, 2020. Signet
undertakes no obligation to update or revise any forward-looking
statements to reflect subsequent events or circumstances, except as
required by law.
Investors:
Vinnie
Sinisi
SVP Investor Relations & Treasury
+1-330-665-6530
vincent.sinisi@signetjewelers.com
Media:
Colleen
Rooney
Chief Communications Officer
+1 330 668 5932
colleen.rooney@signetjewelers.com
David Bouffard
VP Corporate Affairs
+1 330 668 5369
david.bouffard@signetjewelers.com
GAAP to Non-GAAP Reconciliations
The following information provides reconciliations of the most
comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in the US
("GAAP") to presented non-GAAP financial measures. The Company
believes that non-GAAP financial measures, when reviewed in
conjunction with GAAP financial measures, can provide more
information to assist investors in evaluating historical trends and
current period performance. For these reasons, internal management
reporting also includes non-GAAP measures. Items may be excluded
from GAAP financial measures when the Company believes this
provides useful supplementary information to management and
investors in assessing the operating performance of our
business.
These non-GAAP financial measures should be considered in
addition to, and not superior to or as a substitute for the GAAP
financial measures presented in this earnings release and the
Company's consolidated financial statements and other publicly
filed reports. In addition, our non-GAAP financial measures may not
be the same as or comparable to similar non-GAAP measures presented
by other companies.
In discussing financial results, the Company refers to free cash
flow that is not in accordance with GAAP and is defined as the net
cash provided by operating activities, less purchases of property,
plant, and equipment. Free cash flow does not represent the
residual cash flow available for discretionary purposes.
(in millions)
|
Fiscal
2021
|
|
Fiscal
2020
|
Net cash provided by
operating activities
|
$
|
1,372.3
|
|
|
$
|
555.7
|
|
Purchase of property,
plant and equipment
|
(83.0)
|
|
|
(136.3)
|
|
Free cash
flow
|
1,289.3
|
|
|
419.4
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
Gross
margin
|
|
$
|
869.5
|
|
|
$
|
897.9
|
|
|
$
|
1,732.5
|
|
|
$
|
2,223.7
|
|
Restructuring charges
- cost of sales
|
|
—
|
|
|
3.4
|
|
|
1.4
|
|
|
9.2
|
|
Non-GAAP gross
margin
|
|
$
|
869.5
|
|
|
$
|
901.3
|
|
|
$
|
1,733.9
|
|
|
$
|
2,232.9
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
Total GAAP operating
income (loss)
|
|
$
|
291.9
|
|
|
$
|
223.2
|
|
|
$
|
(57.7)
|
|
|
$
|
158.3
|
|
Charges related to
transformation plan
|
|
1.0
|
|
|
13.9
|
|
|
47.6
|
|
|
79.1
|
|
Asset
impairments
|
|
0.9
|
|
|
—
|
|
|
159.0
|
|
|
47.7
|
|
Shareholder
settlements
|
|
—
|
|
|
33.2
|
|
|
7.5
|
|
|
33.2
|
|
Total non-GAAP
operating income
|
|
$
|
293.8
|
|
|
$
|
270.3
|
|
|
$
|
156.4
|
|
|
$
|
318.3
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
North America segment
GAAP operating income
|
|
$
|
296.2
|
|
|
$
|
255.5
|
|
|
$
|
57.9
|
|
|
$
|
284.9
|
|
Charges (credits)
related to transformation plan
|
|
(1.3)
|
|
|
7.8
|
|
|
37.6
|
|
|
48.1
|
|
Asset impairments
(gains)
|
|
(0.2)
|
|
|
—
|
|
|
136.7
|
|
|
47.7
|
|
North America segment
non-GAAP operating income
|
|
$
|
294.7
|
|
|
$
|
263.3
|
|
|
$
|
232.2
|
|
|
$
|
380.7
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
International segment
GAAP operating income (loss)
|
|
$
|
9.3
|
|
|
$
|
25.5
|
|
|
$
|
(43.3)
|
|
|
$
|
9.0
|
|
Charges related to
transformation plan
|
|
2.1
|
|
|
4.6
|
|
|
9.7
|
|
|
7.0
|
|
Asset
impairments
|
|
1.1
|
|
|
—
|
|
|
22.3
|
|
|
—
|
|
International segment
non-GAAP operating income (loss)
|
|
$
|
12.5
|
|
|
$
|
30.1
|
|
|
$
|
(11.3)
|
|
|
$
|
16.0
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
Other segment GAAP
operating loss
|
|
$
|
(1.1)
|
|
|
$
|
(1.5)
|
|
|
$
|
(0.3)
|
|
|
$
|
(15.9)
|
|
Charges (credits)
related to transformation plan
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
3.2
|
|
Other segment
non-GAAP operating loss
|
|
$
|
(1.1)
|
|
|
$
|
(1.5)
|
|
|
$
|
(0.5)
|
|
|
$
|
(12.7)
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
Corporate and
unallocated expenses GAAP operating loss
|
|
$
|
(12.5)
|
|
|
$
|
(56.3)
|
|
|
$
|
(72.0)
|
|
|
$
|
(119.7)
|
|
Charges related to
transformation plan
|
|
0.2
|
|
|
1.5
|
|
|
0.5
|
|
|
20.8
|
|
Shareholder
settlements
|
|
—
|
|
|
33.2
|
|
|
7.5
|
|
|
33.2
|
|
Corporate and
unallocated expenses non-GAAP operating loss
|
|
$
|
(12.3)
|
|
|
$
|
(21.6)
|
|
|
$
|
(64.0)
|
|
|
$
|
(65.7)
|
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
GAAP effective tax
rate
|
|
10.8
|
%
|
|
13.0
|
%
|
|
83.1
|
%
|
|
18.7
|
%
|
Charges related to
transformation plan
|
|
0.1
|
%
|
|
0.6
|
%
|
|
(29.0)
|
%
|
|
(0.9)
|
%
|
Asset
impairments
|
|
0.1
|
%
|
|
—
|
%
|
|
(65.7)
|
%
|
|
—
|
%
|
Shareholder
settlements
|
|
—
|
%
|
|
1.4
|
%
|
|
(4.8)
|
%
|
|
(0.4)
|
%
|
GAAP quarterly impact
of annual tax benefit
|
|
—
|
%
|
|
1.9
|
%
|
|
—
|
%
|
|
—
|
%
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
%
|
|
—
|
%
|
|
(0.2)
|
%
|
|
0.1
|
%
|
Non-GAAP effective
tax rate
|
|
11.0
|
%
|
|
16.9
|
%
|
|
(16.6)
|
%
|
|
17.5
|
%
|
(in
millions)
|
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
GAAP Diluted
EPS
|
|
$
|
4.12
|
|
|
$
|
3.14
|
|
|
$
|
(0.94)
|
|
|
$
|
1.40
|
|
Charges related to
transformation plan
|
|
0.02
|
|
|
0.24
|
|
|
0.92
|
|
|
1.53
|
|
Asset
impairments
|
|
0.01
|
|
|
—
|
|
|
3.06
|
|
|
0.92
|
|
Loss (gain) on early
extinguishment of debt
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
(0.12)
|
|
Shareholder
settlements
|
|
—
|
|
|
0.56
|
|
|
0.14
|
|
|
0.64
|
|
GAAP quarterly impact
of annual tax benefit
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
|
—
|
|
Share dilution
effect(1)
|
|
—
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Tax impact of above
items
|
|
(0.01)
|
|
|
(0.18)
|
|
|
(1.03)
|
|
|
(0.49)
|
|
Non-GAAP Diluted
EPS(1)
|
|
$
|
4.15
|
|
|
$
|
3.67
|
|
|
$
|
2.11
|
|
|
$
|
3.88
|
|
|
|
(1)
|
Full year Fiscal 2021
includes 53.0 diluted weighted average common shares outstanding.
The additional dilutive shares were excluded from the calculation
of GAAP dilutive EPS, as their effect was antidilutive.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
(in millions,
except per share amounts)
|
13 weeks ended
January 30,
2021
|
|
13 weeks ended
February 1,
2020
|
|
Fiscal
2021
|
|
Fiscal
2020
|
Sales
|
$
|
2,186.5
|
|
|
$
|
2,153.3
|
|
|
$
|
5,226.9
|
|
|
$
|
6,137.1
|
|
Cost of
sales
|
(1,317.0)
|
|
|
(1,252.0)
|
|
|
(3,493.0)
|
|
|
(3,904.2)
|
|
Restructuring charges -
cost of sales
|
—
|
|
|
(3.4)
|
|
|
(1.4)
|
|
|
(9.2)
|
|
Gross
margin
|
869.5
|
|
|
897.9
|
|
|
1,732.5
|
|
|
2,223.7
|
|
Selling, general and
administrative expenses
|
(573.8)
|
|
|
(633.2)
|
|
|
(1,587.4)
|
|
|
(1,918.2)
|
|
Restructuring
charges
|
(1.0)
|
|
|
(10.5)
|
|
|
(46.2)
|
|
|
(69.9)
|
|
Asset
impairments
|
(0.9)
|
|
|
—
|
|
|
(159.0)
|
|
|
(47.7)
|
|
Other operating income
(loss)
|
(1.9)
|
|
|
(31.0)
|
|
|
2.4
|
|
|
(29.6)
|
|
Operating income
(loss)
|
291.9
|
|
|
223.2
|
|
|
(57.7)
|
|
|
158.3
|
|
Interest expense,
net
|
(6.4)
|
|
|
(7.7)
|
|
|
(32.0)
|
|
|
(35.6)
|
|
Other non-operating
income, net
|
(0.3)
|
|
|
(0.5)
|
|
|
—
|
|
|
7.0
|
|
Income (loss) before
income taxes
|
285.2
|
|
|
215.0
|
|
|
(89.7)
|
|
|
129.7
|
|
Income taxes
|
(30.9)
|
|
|
(27.9)
|
|
|
74.5
|
|
|
(24.2)
|
|
Net income
(loss)
|
$
|
254.3
|
|
|
$
|
187.1
|
|
|
$
|
(15.2)
|
|
|
$
|
105.5
|
|
Dividends on redeemable
convertible preferred shares
|
(8.6)
|
|
|
(8.3)
|
|
|
(33.5)
|
|
|
(32.9)
|
|
Net income (loss)
attributable to common shareholders
|
$
|
245.7
|
|
|
$
|
178.8
|
|
|
$
|
(48.7)
|
|
|
$
|
72.6
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
4.72
|
|
|
$
|
3.45
|
|
|
$
|
(0.94)
|
|
|
$
|
1.40
|
|
Diluted
|
$
|
4.12
|
|
|
$
|
3.14
|
|
|
$
|
(0.94)
|
|
|
$
|
1.40
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
52.1
|
|
|
51.8
|
|
|
52.0
|
|
|
51.7
|
|
Diluted
|
61.7
|
|
|
59.5
|
|
|
52.0
|
|
|
51.8
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
$
|
—
|
|
|
$
|
0.37
|
|
|
$
|
—
|
|
|
$
|
1.48
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(in millions,
except par value per share amount)
|
January 30,
2021
|
|
February 1,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,172.5
|
|
|
$
|
374.5
|
|
Accounts receivable,
net
|
88.7
|
|
|
38.8
|
|
Other current
assets
|
236.6
|
|
|
403.5
|
|
Income
taxes
|
51.7
|
|
|
6.3
|
|
Inventories,
net
|
2,032.5
|
|
|
2,331.7
|
|
Total current
assets
|
3,582.0
|
|
|
3,154.8
|
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment, net
|
605.5
|
|
|
741.9
|
|
Operating lease
right-of-use assets
|
1,362.2
|
|
|
1,683.3
|
|
Goodwill
|
238.0
|
|
|
248.8
|
|
Intangible assets,
net
|
179.0
|
|
|
263.8
|
|
Other assets
|
195.8
|
|
|
201.8
|
|
Deferred tax
assets
|
16.4
|
|
|
4.7
|
|
Total assets
|
$
|
6,178.9
|
|
|
$
|
6,299.1
|
|
Liabilities,
Redeemable convertible preferred shares, and Shareholders'
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Loans and
overdrafts
|
$
|
—
|
|
|
$
|
95.6
|
|
Accounts
payable
|
812.6
|
|
|
227.9
|
|
Accrued expenses and
other current liabilities
|
494.1
|
|
|
697.0
|
|
Deferred
revenue
|
288.7
|
|
|
266.2
|
|
Operating lease
liabilities
|
377.3
|
|
|
338.2
|
|
Income
taxes
|
26.0
|
|
|
27.7
|
|
Total current
liabilities
|
1,998.7
|
|
|
1,652.6
|
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
146.7
|
|
|
515.9
|
|
Operating lease
liabilities
|
1,147.3
|
|
|
1,437.7
|
|
Other
liabilities
|
111.1
|
|
|
116.6
|
|
Deferred
revenue
|
783.3
|
|
|
731.5
|
|
Deferred tax
liabilities
|
159.2
|
|
|
5.2
|
|
Total
liabilities
|
4,346.3
|
|
|
4,459.5
|
|
Commitments and
contingencies
|
|
|
|
Series A redeemable
convertible preferred shares of $0.01 par value: 500 shares
authorized, 0.625
shares outstanding
|
642.3
|
|
|
617.0
|
|
Shareholders'
equity:
|
|
|
|
Common shares of $0.18
par value: authorized 500 shares, 52.3 shares
outstanding
(2020: 52.3 shares
outstanding)
|
12.6
|
|
|
12.6
|
|
Additional paid-in
capital
|
258.8
|
|
|
245.4
|
|
Other
reserves
|
0.4
|
|
|
0.4
|
|
Treasury shares at
cost: 17.7 shares (2020: 17.7 shares)
|
(980.2)
|
|
|
(984.9)
|
|
Retained
earnings
|
2,189.2
|
|
|
2,242.9
|
|
Accumulated other
comprehensive loss
|
(290.5)
|
|
|
(293.8)
|
|
Total shareholders'
equity
|
1,190.3
|
|
|
1,222.6
|
|
Total liabilities,
redeemable convertible preferred shares and shareholders'
equity
|
$
|
6,178.9
|
|
|
$
|
6,299.1
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
(in
millions)
|
Fiscal
2021
|
|
Fiscal
2020
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(15.2)
|
|
|
$
|
105.5
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
176.0
|
|
|
178.0
|
|
Amortization of
unfavorable contracts
|
(5.4)
|
|
|
(5.5)
|
|
Share-based
compensation
|
14.5
|
|
|
16.9
|
|
Deferred
taxation
|
141.8
|
|
|
21.5
|
|
Goodwill and
intangible impairments
|
159.0
|
|
|
47.7
|
|
Restructuring
charges
|
14.7
|
|
|
25.9
|
|
Net loss (gain) on
extinguishment of debt
|
0.4
|
|
|
(6.2)
|
|
Other non-cash
movements
|
0.3
|
|
|
(4.3)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in accounts
receivable
|
(50.1)
|
|
|
(15.2)
|
|
Decrease (increase) in
other assets and other receivables
|
181.9
|
|
|
(184.2)
|
|
Decrease in
inventories
|
308.0
|
|
|
48.8
|
|
Increase in accounts
payable
|
577.8
|
|
|
77.2
|
|
Increase (decrease) in
accrued expenses and other liabilities
|
(185.8)
|
|
|
232.9
|
|
Change in operating
lease assets and liabilities
|
31.2
|
|
|
(9.4)
|
|
Increase in deferred
revenue
|
73.1
|
|
|
30.8
|
|
Changes in income tax
receivable and payable
|
(45.5)
|
|
|
0.6
|
|
Pension plan
contributions
|
(4.4)
|
|
|
(5.3)
|
|
Net cash provided by
operating activities
|
1,372.3
|
|
|
555.7
|
|
Investing
activities
|
|
|
|
Purchase of property,
plant and equipment
|
(83.0)
|
|
|
(136.3)
|
|
Proceeds from sale of
assets
|
—
|
|
|
0.5
|
|
Purchase of
available-for-sale securities
|
—
|
|
|
(13.3)
|
|
Proceeds from sale of
available-for-sale securities
|
5.2
|
|
|
8.3
|
|
Net cash used in
investing activities
|
(77.8)
|
|
|
(140.8)
|
|
Financing
activities
|
|
|
|
Dividends paid on
common shares
|
(19.4)
|
|
|
(77.4)
|
|
Dividends paid on
redeemable convertible preferred shares
|
(7.8)
|
|
|
(31.2)
|
|
Proceeds from term
loans
|
—
|
|
|
100.0
|
|
Repayments of term
loans
|
(100.0)
|
|
|
(294.9)
|
|
Settlement of senior
notes, including third party fees
|
—
|
|
|
(241.5)
|
|
Proceeds from
revolving credit facilities
|
900.0
|
|
|
858.3
|
|
Repayments of
revolving credit facilities
|
(1,170.0)
|
|
|
(588.3)
|
|
Payment of debt
issuance costs
|
—
|
|
|
(9.3)
|
|
Borrowings
(repayments) of bank overdrafts
|
(87.4)
|
|
|
47.5
|
|
Other financing
activities
|
(14.0)
|
|
|
(0.2)
|
|
Net cash used in
financing activities
|
(498.6)
|
|
|
(237.0)
|
|
Cash and cash
equivalents at beginning of period
|
374.5
|
|
|
195.4
|
|
Increase in cash and
cash equivalents
|
795.9
|
|
|
177.9
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
2.1
|
|
|
1.2
|
|
Cash and cash
equivalents at end of period
|
$
|
1,172.5
|
|
|
$
|
374.5
|
|
Real Estate Portfolio:
Signet has a diversified real estate portfolio. On
January 30, 2021, Signet operated 2,833 stores totaling 4.2
million square feet of selling space. Compared to prior year, store
count decreased by 375 and square feet of selling space decreased
9.3%.
Store count by
banner
|
|
February 1,
2020
|
|
Openings(1)
|
|
Closures(1)
|
|
January 30,
2021
|
North America
segment
|
|
2,757
|
|
53
|
|
(329)
|
|
2,481
|
International
segment
|
|
451
|
|
—
|
|
(99)
|
|
352
|
Signet
|
|
3,208
|
|
53
|
|
(428)
|
|
2,833
|
|
(1) Includes 33 store repositions in
Fiscal 2021.
|
View original
content:http://www.prnewswire.com/news-releases/signet-jewelers-delivers-strong-fourth-quarter-and-sets-next-path-for-growth-301249776.html
SOURCE Signet Jewelers Ltd.