- Same store sales decreased 4.6% compared to an increase of 5.1% in the nine weeks ended January 2, 2016 ("prior year").
- Total sales decreased 5.1% compared to an increase of 5.3% in the prior year.
- Total sales at constant currency decreased 3.3% compared to an increase of 6.6% in the prior year.
- Signet is maintaining the low-end of its earnings guidance and revising same store sales taking into account the holiday sales results and post-holiday sales to-date.
"I would like to thank all Signet team members very much for their dedication and hard work during the holiday selling period."
|Same Store Sales||(4.8%) to (4.3%)||(4.0%) to (2.0%)|
|Earnings per Share||$3.91 to $3.98||$3.91 to $4.13|
|Adjustments of purchase accounting & integration||($0.09) to ($0.07)||($0.09) to ($0.07)|
|Adjusted Earnings per Share 1||$4.00 to $4.05||$4.00 to $4.20|
|Weighted Average Common Shares||76 million||76 million|
|Fiscal Year 2017||Current||Previous|
|Same Store Sales||(2.5%) to (2.0%)||(2.5%) to (1.0%)|
|Earnings per Share||$7.03 to $7.10||$7.03 to $7.25|
|Adjustments of purchase accounting & integration||($0.35) to ($0.33)||($0.35) to ($0.33)|
|Adjusted Earnings per Share 1||$7.38 to $7.43||$7.38 to $7.58|
|Signet uses adjusted metrics which adjust for purchase accounting and integration costs in relation to the Zale acquisition and its integration into Signet. Adjusted EPS is a non-GAAP measure and is defined as EPS adjusted for the impact of purchase accounting and integration costs. Purchase accounting includes deferred revenue adjustments related to acquisition accounting which resulted in a reset of deferred revenue associated with extended service plans previously sold by Zale Corporation. Integration is consulting costs associated with information technology implementations.|
Signet's e-commerce sales in the holiday season were $142.5 million, down $3.5 million or 2.4% compared to $146.0 million in the prior year. The decline was due principally to the underperformance of recent enhancements to e-commerce systems across all Sterling Jewelers division store banners, which use a common platform. These enhancements, implemented early in 2016, performed poorly when exposed to high holiday volume resulting in customer communications issues and purchasing disruptions.
- Sterling Jewelers division experienced declines across most categories with Kay Jewelers declines and weak e-commerce performance being the primary drivers.
- Zale division sales were driven by a decrease at the Zales store brand offset in part by an increase at Piercing Pagoda and e-commerce performance.
- UK Jewelry division total sales declines were driven principally by unfavorable foreign currency exchange rates. Same store sales decreases were driven primarily by fashion jewelry and beads, most notably at H.Samuel, offset in part by higher sales of bridal and watches.
|Same Store||Non-same||Total sales %||Exchange||Total||Total|
|Sales||store sales||at constant||translation||sales||sales|
|Holiday Season||% 1||%, net 2||exchange rate||impact %||%||(in millions $)|
|Sterling Jewelers division||-5.2||1.1||-4.1||-4.1||1,201.0|
|Zale US Jewelry||-4.0||1.4||-2.6||-2.6||409.4|
|Zale Canada Jewelry||-7.3||-0.2||-7.5||1.4||-6.1||71.4|
|UK Jewelry division||-3.7||0.5||-3.2||-16.6||-19.8||184.3|
|Other segment 3||NMF||NMF||NMF||5.2|
|Adjusted Signet 4||-5.2||1,942.9|
|Notes: 1=For stores open for at least 12 months. 2=For stores not open in the last 12 months. 3= Not meaningful figure. 4= Includes $2.0 million deferred revenue adjustment related to acquisition accounting which resulted in a reset of deferred revenue associated with extended service plans sold by Zale Corporation prior to the acquisition on May 29, 2014.|
Conference Call:There will be a conference call today at 8:30 a.m. ET and a simultaneous audio webcast and slide presentation available at www.signetjewelers.com. The slides are available to be downloaded from the website. The call details are: Dial-in 1-647-788-4901. Access code 34775745. A replay of the conference call and a transcript of the call will be posted on Signet's website as soon as is practical after the call has ended. About Signet and Safe Harbor Statement: Signet Jewelers Limited is the world's largest retailer of diamond jewelry. Signet operates approximately 3,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. 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 and www.pagoda.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," "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, including but not limited to general economic conditions, to general economic conditions, regulatory changes following the United Kingdom's announcement to exit from the European Union, a decline in consumer spending, the merchandising, pricing and inventory policies followed by Signet, the reputation of Signet and its brands, the level of competition in the jewelry sector, the cost and availability of diamonds, gold and other precious metals, regulations relating to customer credit, seasonality of Signet's business, financial market risks, deterioration in customers' financial condition, exchange rate fluctuations, changes in Signet's credit rating, changes in consumer attitudes regarding jewelry, management of social, ethical and environmental risks, security breaches and other disruptions to Signet's information technology infrastructure and databases, inadequacy in and disruptions to internal controls and systems, changes in assumptions used in making accounting estimates relating to items such as extended service plans and pensions, risks related to Signet being a Bermuda corporation, the impact of the acquisition of Zale Corporation on relationships, including with employees, suppliers, customers and competitors, and our ability to successfully integrate Zale Corporation's operations and to realize synergies from the transaction.
For a discussion of these risks 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" section of Signet's Fiscal 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2016 and Part II, Item 1A of Form 10-Q filed November 29, 2016. Signet undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.