Signet Jewelers Reports Third Quarter Financial Results

Signet Jewelers Limited ("Signet") (NYSE:SIG), the world's largest retailer of diamond jewelry, today announced its results for the 13 weeks ended October 29, 2016 ("third quarter Fiscal 2017").

Summary:
  • Same store sales ("SSS") down 2.0%. Total sales $1.2 billion down 2.5%. Total sales at constant exchange rate down 0.5%.
  • Third quarter Fiscal 2017 diluted earnings per common share ("EPS") $0.20. Adjusted EPS $0.30.
  • Zale integration continues to progress well. Signet to deliver cumulative synergies of $158 million to $175 million by end of this fiscal year and $225 million to $250 million by end of next fiscal year.
  • Year-to-date cash from operations $361 million, up $272 million. Capital expenditures $196 million, up $25 million.
  • Credit review process proceeding according to plan.

Mark Light, Chief Executive Officer of Signet Jewelers said, "We expected challenging market conditions to result in a sales decline. However, our continuing ability to execute in a difficult environment led to results that were somewhat better than our expectations.

"Signet achieved some important wins during the quarter. Fashion diamond and gold jewelry performed well as did select branded bridal. We saw success in a variety of selling channels including kiosks, outlets, and on-line. In addition, our teams delivered solid expense and inventory management leading to strong free cash generation. The Zale integration is running well and synergies remain on target.

"While near term headwinds may persist, we are confident that we made the right investments into initiatives designed to drive growth and deliver on our fourth quarter expectations.

Mr. Light concluded, "Our competitive strengths, leading market position, and precedent of success support Signet's robust opportunities for long term growth. I want to thank all Signet team members for their dedication and hard work having delivered on the third quarter while preparing effectively for the fourth quarter."

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