HAMILTON, Bermuda, June 10, 2021 /PRNewswire/ -- Signet
Jewelers Limited ("Signet") (NYSE: SIG), the world's largest
retailer of diamond jewelry, today announced its results for the 13
weeks ended May 1, 2021 ("first quarter Fiscal 2022").
"Our strong first quarter results demonstrate the momentum we
are building as we continue Signet's transformation," said
Virginia C. Drosos, Chief Executive
Officer. "Thank you to all our team members for their relentless
dedication to our customers and each other, and for embracing new
capabilities with excellence as we drive innovation and sustainable
long-term growth."
"We delivered strong performance across our portfolio. While the
jewelry category is experiencing meaningful growth, we are
outpacing market growth and gaining share consistent with our
Inspiring Brilliance strategy. Specifically, we are winning in our
biggest banners through consumer-inspired differentiation, as
evidenced by double-digit revenue growth in both Kay and Zales
versus this time two years ago. We are successfully beginning to
stretch the top and bottom boundaries of the mid-market as Jared
continues to grow at higher price points and in custom design, and
Piercing Pagoda delivered its best quarter ever accessing more
value inspired self-purchasing shoppers. Further, our
Connected Commerce strategy is resonating, delivering higher
conversion rates and growth both online and in-stores. And finally,
we are building a more innovative and agile culture with
investments in talent, digital capabilities, newness in product
assortment, and modern content and marketing channels that give us
distinct competitive advantages. As I look ahead, I'm confident in
our people and our strategy and believe 2021 will be another
transformative year for Signet."
Joan Hilson, Chief Financial and
Strategy Officer, added, "We are entering this next phase of
Signet's transformation from a position of financial strength. We
are continuing to increase liquidity with ongoing cash, cost and
inventory discipline, enabling accelerated investment in innovation
and growth. Even as we expect some current tailwinds from stimulus
and slower than anticipated return to travel and experience
spending to subside in the back-half of 2021, we are confident in
our ability to deliver strong shareholder return and generate
cash. As such, our Board has approved reinstatement of a
common dividend in the second quarter."
First Quarter Fiscal 2022:
- Total sales were $1.7 billion, an
increase of over $250 million to Q1
of FY20 and more than $835 million to
Q1 of FY21.
- Q1 same store sales ("SSS") up 106.5% (1) to Q1 of
FY21 and up 27.2% to Q1 of FY20.
- GAAP diluted earnings per share ("EPS") of $2.23, up from a loss per share of ($3.96) in Q1 of FY21 and ($0.35) in Q1 of FY20.
- Non-GAAP diluted EPS of $2.23
(2), an increase from a loss per share of ($1.59) in Q1 of FY21 and EPS of $0.08 in Q1 of FY20.
|
|
Fiscal 22
Q1
|
|
Fiscal 21
Q1
|
|
Fiscal 20
Q1
|
Revenue ($ in
millions)
|
|
$
|
1,688.8
|
|
|
$
|
852.1
|
|
|
$
|
1,431.7
|
|
SSS % change
(1)
|
|
106.5
|
%
|
|
(38.9)
|
%
|
|
(1.3)
|
%
|
GAAP
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
168.7
|
|
|
$
|
(299.6)
|
|
|
$
|
(2.6)
|
|
Operating income
(loss) as % of sales
|
|
10.0
|
%
|
|
(35.2)
|
%
|
|
(0.2)
|
%
|
GAAP Diluted
EPS
|
|
$
|
2.23
|
|
|
$
|
(3.96)
|
|
|
$
|
(0.35)
|
|
Non-GAAP
(2)
|
|
|
|
|
|
|
Non-GAAP operating
income (loss)
|
|
$
|
168.9
|
|
|
$
|
(142.5)
|
|
|
$
|
24.2
|
|
Non-GAAP operating
income (loss) as % of sales
|
|
10.0
|
%
|
|
(16.7)
|
%
|
|
1.7
|
%
|
Non-GAAP Diluted
EPS
|
|
$
|
2.23
|
|
|
$
|
(1.59)
|
|
|
$
|
0.08
|
|
|
(1) Same store sales
include physical store sales and eCommerce sales.
|
(2) See non-GAAP
reconciliation page.
|
First Quarter 2022 Financial Results:
Signet's total sales were $1.7
billion, up 98.2% year over year, in the 13 weeks ended
May 1, 2021 on a reported basis and up 96.4% on a constant
currency basis. Total same store sales increased 106.5% year over
year. eCommerce sales were $346.3
million, up 110.3% from the prior year. Brick and mortar
same store sales increased 105.7% year over year.
|
Change
from previous year
|
|
|
First Quarter Fiscal
2022
|
Same
store
sales
|
|
Non-same
store sales,
net
|
|
Total sales
at constant
exchange rate
|
|
Exchange
translation
impact
|
|
Total
sales
as reported
|
|
Total
sales
(in millions)
|
North America
segment
|
117.2
|
%
|
|
(10.5)
|
%
|
|
106.7
|
%
|
|
0.4
|
%
|
|
107.1
|
%
|
|
$
|
1,618.0
|
|
International
segment
|
(12.2)
|
%
|
|
(7.1)
|
%
|
|
(19.3)
|
%
|
|
7.7
|
%
|
|
(11.6)
|
%
|
|
$
|
57.4
|
|
Other segment
(1)
|
nm
|
|
|
nm
|
|
|
nm
|
|
|
nm
|
|
|
nm
|
|
|
$
|
13.4
|
|
Signet
|
106.5
|
%
|
|
(10.1)
|
%
|
|
96.4
|
%
|
|
1.8
|
%
|
|
98.2
|
%
|
|
$
|
1,688.8
|
|
|
(1)
Includes sales from Signet's diamond sourcing
initiative.
|
nm Not
meaningful
|
By operating segment:
North America
- North America SSS increased 117.2%, with broad-based category
strength. Average transaction value ("ATV") increased 15.2% to the
first quarter of last year and the number of transactions increased
90.0%. When compared to the first quarter two years ago, physical
traffic remains down but Signet has delivered growth over that
period through higher conversion and ATV.
- Brick and mortar SSS grew 118.4%. eCommerce sales grew
113.4%.
International
- International same store sales decreased 12.2%. ATV increased
5.8% and the number of transactions declined 16.6% reflecting the
mandated closure of UK stores for 10 of the 13 weeks this
quarter.
- eCommerce sales grew 80.0%, with brick and mortar same store
sales declining 40.9%.
GAAP gross margin was $678.4
million, or 40.2% of sales, up 1,630 bps versus the prior
year quarter and up 540 bps versus the first quarter of FY20. The
majority of gross margin rate improvement is driven by leveraging
of fixed costs such as occupancy.
SGA was $512.0 million, or 30.3%
of sales, up 1,180 bps favorable to the prior year quarter and 290
bps favorable to the first quarter of FY20. The rate improvement
was primarily driven by more efficient operating hours and
corresponding labor.
GAAP operating income was $168.7
million or 10.0% of sales. The operating income compares to
an operating loss of $299.6 million,
or (35.2)% of sales in the prior year first quarter and operating
loss of $2.6 million, or (0.2)% of
sales in Q1 of FY20.
Non-GAAP operating income was $168.9
million, or 10.0% of sales, compared to Non-GAAP operating
loss of $142.5 million, or (16.7)% of
sales in prior year first quarter and non-GAAP operating income of
$24.2 million, or 1.7% of sales in Q1
of FY20.
|
|
First quarter
Fiscal 2022
|
|
First quarter
Fiscal 2021
|
GAAP Operating
income (loss) in millions
|
|
$
|
|
% of
sales
|
|
$
|
|
% of
sales
|
North America
segment
|
|
$
|
212.0
|
|
|
13.1
|
%
|
|
$
|
(234.2)
|
|
|
(30.0)
|
%
|
International
segment
|
|
(19.7)
|
|
|
(34.3)
|
%
|
|
(38.6)
|
|
|
(59.5)
|
%
|
Other
segment
|
|
(0.9)
|
|
|
nm
|
|
|
(0.3)
|
|
|
nm
|
|
Corporate and
unallocated expenses
|
|
(22.7)
|
|
|
nm
|
|
|
(26.5)
|
|
|
nm
|
|
Total GAAP operating
income (loss)
|
|
$
|
168.7
|
|
|
10.0
|
%
|
|
$
|
(299.6)
|
|
|
(35.2)
|
%
|
|
|
|
|
First quarter
Fiscal 2022
|
|
First quarter
Fiscal 2021
|
Non-GAAP Operating
income (loss) in millions (1)
|
|
$
|
|
% of
sales
|
|
$
|
|
% of
sales
|
North America
segment
|
|
$
|
212.2
|
|
|
13.1
|
%
|
|
$
|
(107.8)
|
|
|
(13.8)
|
%
|
International
segment
|
|
(19.7)
|
|
|
(34.3)
|
%
|
|
(16.6)
|
|
|
(25.6)
|
%
|
Other
segment
|
|
(0.9)
|
|
|
nm
|
|
|
(0.3)
|
|
|
nm
|
|
Corporate and
unallocated expenses
|
|
(22.7)
|
|
|
nm
|
|
|
(17.8)
|
|
|
nm
|
|
Total Non-GAAP
operating income (loss)
|
|
$
|
168.9
|
|
|
10.0
|
%
|
|
$
|
(142.5)
|
|
|
(16.7)
|
%
|
|
(1) See non-GAAP
reconciliation page.
|
nm Not
meaningful
|
The current quarter income tax expense was $26.5 million compared to an income tax benefit
of $109.5 million in the prior year
first quarter driven by the year over year difference in pre-tax
income. Further, the prior year income tax was also favorably
impacted by the benefits of the Coronavirus Aid, Relief, and
Economic Security Act ("CARES Act").
Diluted EPS was $2.23 on both a
GAAP and non-GAAP basis. GAAP and non-GAAP diluted EPS in the
quarter includes the dilutive impact of the preferred shares in the
share count based on the level of net income this quarter.
Balance Sheet and Statement of Cash Flows Highlights:
Cash flow from operating activities of $161.1 million in Q1 FY22, up $169 million to FY21 and $56 million to FY20. Total liquidity was
$2.5 billion at quarter end,
consisting of cash of $1.3 billion
with $1.2 billion available on the
revolving credit facility.
Ending inventory was $2.0 billion,
a reduction of more than $370 million
to Q1 of FY21. Long term debt was $146.8
million, compared to $1.3
billion at the prior year quarter end.
Quarterly Dividend:
Signet's Board of Directors has elected to reinstate the
dividend program on the common shares and declared a quarterly cash
dividend of $0.18 per share for the
second quarter of Fiscal 2022, payable August 27, 2021 to shareholders of record on
July 30, 2021, with an ex-dividend
date of July 29, 2021.
Fiscal 2022 Guidance:
|
Second
Quarter
|
|
Fiscal
2022
|
|
Previous
Fiscal
2022
|
Total revenue (in
billions)
|
$1.60 to
$1.65
|
|
$6.50 to
$6.65
|
|
$6.00 to
$6.14
|
Same store sales
(1)
|
76% to 82%
|
|
24% to 27%
|
|
17% to 20%
|
Non-GAAP operating
income (2) (in millions)
|
$118 to
$130
|
|
$490 to
$545
|
|
$335 to
$364
|
|
(1) Same store sales include physical
stores and eCommerce sales
|
(2) See description of non-GAAP
measures below
|
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 Second Quarter and Fiscal 2022 Outlook is based on
the following assumptions:
- Signet expects stronger sales performance in the first half of
the fiscal year. As the vaccine rollout matures, the Company
believes there will be a shift of consumer discretionary spending
away from the jewelry category toward experience-oriented
categories. The magnitude and timing of this shift is difficult to
predict. As such, the Company is planning for increased marketing
expenses to continue to fuel momentum from the first half of Fiscal
2022 as well as to proactively manage against shifts in consumer
spending as the year progresses. Signet continues to expect same
store sales to be negative in the second half of Fiscal 2022,
though the Company is widening the range of its guidance as macro
level momentum continues to magnify customer response to the
Company's services and capabilities. Depending on the timing and
extent of potential shifts in spending, future results could differ
materially from current guidance.
- The Company has increased its gross cost savings expectations
for Fiscal 2022 to $75 million to
$95 million from $50 million to $75
million. The increase reflects the partial year savings
relating to the recently enhanced relationships with credit
partners ADS and Genesis. Signet's cost savings have been
identified to partially mitigate the additional investments
required in digital and technology to further strengthen the
Company's competitive advantage and long-term positioning within
the jewelry category. Cost savings are expected to benefit both
SG&A and gross margin.
- With the flexibility of Signet's liquidity position, the
Company has raised its planned Fiscal 2022 capital expenditures to
the range of $175 million to
$200 million from $150 million to $175
million. Aligning with Signet's capital priorities,
the increased level of investments will continue to focus on
technology and innovation.
- The Company expects to close over 100 stores in Fiscal 2022 and
open up to 100 locations, primarily in highly efficient
kiosks.
- Signet's efforts to mitigate supply chain disruption amongst
the pandemic impact on India have
been effective thus far. Guidance assumes no material supply chain
disruptions for the remainder of the year.
- Continued uncertainty regarding multiple factors exist for the
remainder of Fiscal 2022, including but not limited to 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 first
quarter results and trends will continue for the second quarter and
remainder of the fiscal year and such results and trends are not
indicative of future performance. Please see disclosures
within the Safe Harbor Statement for other risk factors.
Our Purpose and Sustainable Growth:
As a company with a purpose-inspired business strategy, Signet
is committed to ongoing leadership in Corporate Citizenship &
Sustainability and views ESG initiatives as an important growth
driver. As such, Signet released its first-ever Corporate
Citizenship and Sustainability Report earlier this month,
reflecting our continued leadership, prioritization and board
oversight of these important ESG initiatives. Issued with the
Sustainability report is a supplement including data disclosures in
alignment with ESG reporting frameworks, as well as our 2030
Corporate Sustainability Goals which includes Human Capital
Management and Climate Change goals. This set of 44 goals are set
with 2030 targets in line with the Decade of Action to achieve the
Sustainable Development Goals with one exception -- achieving
net-zero greenhouse gas emissions by 2050.
In line with Inspiring Love – Signet also took actions this past
quarter to further enhance its commitment to advancing Diversity,
Equity and Inclusion. Specifically, Signet announced the launch of
its first ever Employee Experience which commits to providing team
members with an exceptional place to work and further solidifies
inclusiveness, and encourages individuality and diversity within a
welcoming culture. As advocates for positive change in the
communities Signet serves, the Company is committing to further
advancing women's gender parity by joining Paradigm for Parity and
aligning with their five-point action plan. Signet's first donation
from its newly formed Signet Love Inspires Foundation was made this
quarter to the Equal Justice Initiative, as there is much to be
done to fight systemic racism. And, in line with our mission of
Celebrating Life and Expressing Love for all, the Company is
celebrating PRIDE month across Signet banners and endorsed the
Human Rights Council's Business Statement on Anti-LGBTQ+ State
Legislation. Lastly, as a global company with long-standing
partners and vendors around the world, the Company donated to the
Gajera Charitable Trust in India
with the intention of support for COVID-19 relief efforts.
Conference Call:
A conference call is scheduled for June 10, 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: +1-844-750-4866
International Dial-in: +1-412-317-5109
Conference call participants may also pre-register at:
https://dpregister.com/sreg/10156193/e840e1f9ea
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 continues 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, duration and potential resurgence 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 (specifically in India),
consumer behaviors such as willingness to congregate in shopping
centers and shifts in spending away from the jewelry category 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 strategies; 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 new information technology systems which impact
financial reporting; 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 corporate taxation rates, 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 or
deductions associated with payments to foreign related parties that
are subject to a low effective tax rate; 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; 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 the "Risk Factors"
and "Forward-Looking Statements" sections of Signet's Fiscal 2021
Annual Report on Form 10-K filed with the SEC on March 19,
2021 and quarterly reports on Form 10-Q and the "Safe Harbor
Statements" in current reports on Form 8-K filed with the SEC.
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
directly 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.
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
Net cash provided by
(used in) operating activities
|
$
|
161.1
|
|
|
$
|
(7.6)
|
|
|
$
|
105.4
|
|
Purchase of property,
plant and equipment
|
(11.3)
|
|
|
(7.7)
|
|
|
(24.6)
|
|
Free cash
flow
|
$
|
149.8
|
|
|
$
|
(15.3)
|
|
|
$
|
80.8
|
|
|
|
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
Gross
margin
|
$
|
678.4
|
|
|
$
|
204.2
|
|
|
$
|
499.4
|
|
Restructuring charges
- cost of sales
|
—
|
|
|
(0.4)
|
|
|
—
|
|
Non-GAAP Gross
Margin
|
$
|
678.4
|
|
|
$
|
203.8
|
|
|
$
|
499.4
|
|
|
|
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
Total GAAP operating
income (loss)
|
$
|
168.7
|
|
|
$
|
(299.6)
|
|
|
$
|
(2.6)
|
|
Charges related to
transformation plan
|
(0.7)
|
|
|
12.3
|
|
|
26.8
|
|
Asset impairments,
net(1)
|
(0.2)
|
|
|
136.3
|
|
|
—
|
|
Rocksbox
acquisition-related costs
|
1.1
|
|
|
—
|
|
|
—
|
|
Shareholder
settlement
|
—
|
|
|
8.5
|
|
|
—
|
|
Total non-GAAP
operating income (loss)
|
$
|
168.9
|
|
|
$
|
(142.5)
|
|
|
$
|
24.2
|
|
|
(1)
Includes asset impairments, net recorded due to the various impacts
of COVID-19 to the Company's business and related gains on
terminations or modifications of leases, resulting from previously
recorded impairments of the right of use assets in Fiscal
2021.
|
|
|
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
North America segment
GAAP operating income (loss)
|
$
|
212.0
|
|
|
$
|
(234.2)
|
|
|
$
|
28.3
|
|
Charges related to
transformation plan
|
(0.7)
|
|
|
8.5
|
|
|
19.3
|
|
Asset impairments,
net (1)
|
(0.2)
|
|
|
117.9
|
|
|
—
|
|
Rocksbox
acquisition-related costs
|
1.1
|
|
|
—
|
|
|
—
|
|
North America segment
non-GAAP operating income (loss)
|
$
|
212.2
|
|
|
$
|
(107.8)
|
|
|
$
|
47.6
|
|
|
(1)
Includes asset impairments, net recorded due to the various impacts
of COVID-19 to the Company's business and related gains on
terminations or modifications of leases, resulting from previously
recorded impairments of the right of use assets in Fiscal
2021.
|
|
|
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
International segment
GAAP operating income (loss)
|
$
|
(19.7)
|
|
|
$
|
(38.6)
|
|
|
$
|
(9.0)
|
|
Charges related to
transformation plan
|
—
|
|
|
3.6
|
|
|
1.0
|
|
Asset impairments,
net (1)
|
—
|
|
|
18.4
|
|
|
—
|
|
International segment
non-GAAP operating income (loss)
|
$
|
(19.7)
|
|
|
$
|
(16.6)
|
|
|
$
|
(8.0)
|
|
|
(1)
Includes asset impairments, net recorded due to the various impacts
of COVID-19 to the Company's business and related gains on
terminations or modifications of leases, resulting from previously
recorded impairments of the right of use assets in Fiscal
2021.
|
|
|
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
Other segment GAAP
operating income (loss)
|
$
|
(0.9)
|
|
|
$
|
(0.3)
|
|
|
$
|
(3.8)
|
|
Charges related to
transformation plan
|
—
|
|
|
—
|
|
|
0.5
|
|
Other segment
non-GAAP operating income (loss)
|
$
|
(0.9)
|
|
|
$
|
(0.3)
|
|
|
$
|
(3.3)
|
|
|
|
|
13 weeks
ended
|
(in millions)
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
Corporate and
unallocated expenses GAAP operating income (loss)
|
$
|
(22.7)
|
|
|
$
|
(26.5)
|
|
|
$
|
(18.1)
|
|
Charges related to
transformation plan
|
—
|
|
|
0.2
|
|
|
6.0
|
|
Shareholder
settlement
|
—
|
|
|
8.5
|
|
|
—
|
|
Corporate and
unallocated expenses non-GAAP operating income (loss)
|
$
|
(22.7)
|
|
|
$
|
(17.8)
|
|
|
$
|
(12.1)
|
|
|
|
|
13 weeks
ended
|
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
GAAP effective tax
rate
|
16.1
|
%
|
|
35.7
|
%
|
|
13.0
|
%
|
Charges related to
transformation plan
|
0.1
|
%
|
|
1.3
|
%
|
|
5.3
|
%
|
Asset impairments,
net
|
—
|
%
|
|
13.0
|
%
|
|
—
|
%
|
Rocksbox
acquisition-related costs
|
(0.1)
|
%
|
|
—
|
%
|
|
—
|
%
|
Shareholder
settlement
|
—
|
%
|
|
0.4
|
%
|
|
—
|
%
|
Non-GAAP effective
tax rate
|
16.1
|
%
|
|
50.4
|
%
|
|
18.3
|
%
|
|
|
|
13 weeks
ended
|
|
May 1,
2021
|
|
May 2,
2020
|
|
May 4,
2019
|
GAAP Diluted
EPS
|
$
|
2.23
|
|
|
$
|
(3.96)
|
|
|
$
|
(0.35)
|
|
Charges related to
transformation plan
|
(0.01)
|
|
|
0.24
|
|
|
0.52
|
|
Asset impairments,
net
|
—
|
|
|
2.63
|
|
|
—
|
|
Rocksbox
acquisition-related costs
|
0.02
|
|
|
—
|
|
|
—
|
|
Shareholder
settlement
|
—
|
|
|
0.16
|
|
|
—
|
|
Tax impact of items
above
|
(0.01)
|
|
|
(0.66)
|
|
|
(0.09)
|
|
Non-GAAP Diluted
EPS
|
$
|
2.23
|
|
|
$
|
(1.59)
|
|
|
$
|
0.08
|
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
13 weeks
ended
|
(in millions, except
per share amounts)
|
|
May 1,
2021
|
|
May 2,
2020
|
Sales
|
|
$
|
1,688.8
|
|
|
$
|
852.1
|
|
Cost of
sales
|
|
(1,010.4)
|
|
|
(648.3)
|
|
Restructuring charges
- cost of sales
|
|
—
|
|
|
0.4
|
|
Gross
margin
|
|
678.4
|
|
|
204.2
|
|
Selling, general and
administrative expenses
|
|
(512.0)
|
|
|
(358.4)
|
|
Restructuring
charges
|
|
0.7
|
|
|
(12.7)
|
|
Asset impairments,
net
|
|
(1.5)
|
|
|
(136.3)
|
|
Other operating
income, net
|
|
3.1
|
|
|
3.6
|
|
Operating income
(loss)
|
|
168.7
|
|
|
(299.6)
|
|
Interest expense,
net
|
|
(3.9)
|
|
|
(7.1)
|
|
Other non-operating
income, net
|
|
0.1
|
|
|
0.1
|
|
Income (loss) before
income taxes
|
|
164.9
|
|
|
(306.6)
|
|
Income tax benefit
(expense)
|
|
(26.5)
|
|
|
109.5
|
|
Net income
(loss)
|
|
$
|
138.4
|
|
|
$
|
(197.1)
|
|
Dividends on
redeemable convertible preferred shares
|
|
(8.6)
|
|
|
(8.2)
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
129.8
|
|
|
$
|
(205.3)
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
Basic
|
|
$
|
2.49
|
|
|
$
|
(3.96)
|
|
Diluted
|
|
$
|
2.23
|
|
|
$
|
(3.96)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
Basic
|
|
52.1
|
|
|
51.8
|
|
Diluted
|
|
62.0
|
|
|
51.8
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(in millions, except
par value per share amount)
|
|
May 1,
2021
|
|
January 30,
2021
|
|
May 2,
2020
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,298.4
|
|
|
$
|
1,172.5
|
|
|
$
|
1,066.6
|
|
Accounts receivable,
net
|
|
78.9
|
|
|
88.7
|
|
|
29.8
|
|
Other current
assets
|
|
187.1
|
|
|
236.6
|
|
|
327.7
|
|
Income
taxes
|
|
58.4
|
|
|
51.7
|
|
|
199.2
|
|
Inventories
|
|
2,019.0
|
|
|
2,032.5
|
|
|
2,392.2
|
|
Total current
assets
|
|
3,641.8
|
|
|
3,582.0
|
|
|
4,015.5
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property, plant and
equipment, net of accumulated depreciation and amortization of
$1,208.7, $1,198.1 and $1,092.6, respectively
|
|
544.5
|
|
|
605.5
|
|
|
687.1
|
|
Operating lease
right-of-use assets
|
|
1,301.2
|
|
|
1,362.2
|
|
|
1,541.4
|
|
Goodwill
|
|
244.9
|
|
|
238.0
|
|
|
238.0
|
|
Intangible assets,
net
|
|
190.6
|
|
|
179.0
|
|
|
178.7
|
|
Other
assets
|
|
241.0
|
|
|
195.8
|
|
|
204.9
|
|
Deferred tax
assets
|
|
16.8
|
|
|
16.4
|
|
|
12.1
|
|
Total
assets
|
|
$
|
6,180.8
|
|
|
$
|
6,178.9
|
|
|
$
|
6,877.7
|
|
Liabilities,
Redeemable convertible preferred shares, and Shareholders'
equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Loans and
overdrafts
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22.2
|
|
Accounts
payable
|
|
700.1
|
|
|
812.6
|
|
|
329.1
|
|
Accrued expenses and
other current liabilities
|
|
517.2
|
|
|
494.1
|
|
|
636.1
|
|
Deferred
revenue
|
|
310.0
|
|
|
288.7
|
|
|
271.2
|
|
Operating lease
liabilities
|
|
345.7
|
|
|
377.3
|
|
|
390.3
|
|
Income
taxes
|
|
24.5
|
|
|
26.0
|
|
|
27.8
|
|
Total current
liabilities
|
|
1,897.5
|
|
|
1,998.7
|
|
|
1,676.7
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
146.8
|
|
|
146.7
|
|
|
1,336.0
|
|
Operating lease
liabilities
|
|
1,087.3
|
|
|
1,147.3
|
|
|
1,334.8
|
|
Other
liabilities
|
|
108.9
|
|
|
111.1
|
|
|
113.3
|
|
Deferred
revenue
|
|
797.7
|
|
|
783.3
|
|
|
719.8
|
|
Deferred tax
liabilities
|
|
171.1
|
|
|
159.2
|
|
|
95.9
|
|
Total
liabilities
|
|
4,209.3
|
|
|
4,346.3
|
|
|
5,276.5
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Series A redeemable
convertible preferred shares of $.01 par value: authorized 500
shares, 0.625 shares outstanding (January 30, 2021 and
May 2, 2020: 0.625 shares outstanding)
|
|
650.9
|
|
|
642.3
|
|
|
617.4
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common shares of $.18
par value: authorized 500 shares, 52.7 shares outstanding
(January 30, 2021 and May 2, 2020: 52.3
outstanding)
|
|
12.6
|
|
|
12.6
|
|
|
12.6
|
|
Additional paid-in
capital
|
|
252.2
|
|
|
258.8
|
|
|
246.4
|
|
Other
reserves
|
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
Treasury shares at
cost: 17.3 shares (January 30, 2021 and May 2, 2020: 17.7
shares)
|
|
(965.2)
|
|
|
(980.2)
|
|
|
(985.2)
|
|
Retained
earnings
|
|
2,304.2
|
|
|
2,189.2
|
|
|
2,037.4
|
|
Accumulated other
comprehensive loss
|
|
(283.6)
|
|
|
(290.5)
|
|
|
(327.8)
|
|
Total shareholders'
equity
|
|
1,320.6
|
|
|
1,190.3
|
|
|
983.8
|
|
Total liabilities,
redeemable convertible preferred shares and shareholders'
equity
|
|
$
|
6,180.8
|
|
|
$
|
6,178.9
|
|
|
$
|
6,877.7
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
13 weeks
ended
|
(in
millions)
|
|
May 1,
2021
|
|
May 2,
2020
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
138.4
|
|
|
$
|
(197.1)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
42.1
|
|
|
37.3
|
|
Amortization of
unfavorable contracts
|
|
(1.4)
|
|
|
(1.4)
|
|
Share-based
compensation
|
|
8.0
|
|
|
1.4
|
|
Deferred
taxation
|
|
9.5
|
|
|
83.3
|
|
Asset
impairments
|
|
1.5
|
|
|
136.3
|
|
Restructuring
charges
|
|
—
|
|
|
6.7
|
|
Other non-cash
movements
|
|
0.5
|
|
|
0.6
|
|
Changes in operating
assets and liabilities, net of acquisition:
|
|
|
|
|
Decrease in accounts
receivable
|
|
9.8
|
|
|
8.6
|
|
Decrease in other
assets and other receivables
|
|
44.0
|
|
|
72.4
|
|
Decrease (increase) in
inventories
|
|
19.3
|
|
|
(77.2)
|
|
Increase (decrease) in
accounts payable
|
|
(122.2)
|
|
|
99.0
|
|
Increase (decrease) in
accrued expenses and other liabilities
|
|
18.0
|
|
|
(40.1)
|
|
Changes in operating
lease assets and liabilities
|
|
(31.2)
|
|
|
61.4
|
|
Increase (decrease) in
deferred revenue
|
|
34.4
|
|
|
(5.0)
|
|
Changes in income tax
receivable and payable
|
|
(8.4)
|
|
|
(192.7)
|
|
Pension plan
contributions
|
|
(1.2)
|
|
|
(1.1)
|
|
Net cash provided by
(used in) operating activities
|
|
161.1
|
|
|
(7.6)
|
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(11.3)
|
|
|
(7.7)
|
|
Purchase of
available-for-sale securities
|
|
(1.0)
|
|
|
—
|
|
Proceeds from sale of
available-for-sale securities
|
|
1.9
|
|
|
1.3
|
|
Acquisition of
Rocksbox Inc., net of cash acquired
|
|
(14.4)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(24.8)
|
|
|
(6.4)
|
|
Financing
activities
|
|
|
|
|
Dividends paid on
common shares
|
|
—
|
|
|
(19.3)
|
|
Dividends paid on
redeemable convertible preferred shares
|
|
—
|
|
|
(7.8)
|
|
Proceeds from
revolving credit facilities
|
|
—
|
|
|
900.0
|
|
Repayments of
revolving credit facilities
|
|
—
|
|
|
(80.0)
|
|
Decrease of bank
overdrafts
|
|
—
|
|
|
(74.0)
|
|
Other financing
activities
|
|
(13.7)
|
|
|
(4.9)
|
|
Net cash (used in)
provided by financing activities
|
|
(13.7)
|
|
|
714.0
|
|
Cash and cash
equivalents at beginning of period
|
|
1,172.5
|
|
|
374.5
|
|
Increase in cash and
cash equivalents
|
|
122.6
|
|
|
700.0
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
3.3
|
|
|
(7.9)
|
|
Cash and cash
equivalents at end of period
|
|
$
|
1,298.4
|
|
|
$
|
1,066.6
|
|
Real Estate Portfolio:
Signet has a diversified real estate portfolio. On May 1,
2021, Signet had 2,833 stores totaling 4.2 million square feet of
selling space. In the first quarter, store count, net stayed flat
and square feet of selling space decreased 0.2%. Compared to
year-end Fiscal 2021, store count, net stayed flat and square
feet of selling space decreased 0.2%.
Store count by
segment
|
January 30,
2021
|
|
Openings
|
|
Closures
|
|
May 1,
2021
|
North America
segment
|
2,481
|
|
9
|
|
(8)
|
|
2,482
|
International
segment
|
352
|
|
—
|
|
(1)
|
|
351
|
Signet
|
2,833
|
|
9
|
|
(9)
|
|
2,833
|
View original
content:http://www.prnewswire.com/news-releases/signet-jewelers-first-quarter-results-exceed-expectations-301309634.html
SOURCE Signet Jewelers Ltd.