Group 1: Company Performance - Signet (SIG) closed at $85.27, with a daily increase of +1.16%, outperforming the S&P 500's gain of 1.08% [1] - The company is expected to report earnings of $10.60 per share and revenue of $6.8 billion for the full year, reflecting year-over-year changes of +2.22% and -5.23% respectively [2] - For the upcoming financial results, an EPS of $1.13 is anticipated, indicating a 27.1% decline compared to the same quarter last year, with revenue expected to be $1.49 billion, down 7.66% year-over-year [5] Group 2: Valuation Metrics - Signet is currently trading at a Forward P/E ratio of 7.95, which is significantly lower than the industry average Forward P/E of 19.99, indicating a valuation discount [3] - The company has a PEG ratio of 0.91, compared to the industry average PEG ratio of 1.17, suggesting that the stock may be undervalued relative to its expected earnings growth [10] Group 3: Industry Context - The Retail - Jewelry industry, to which Signet belongs, has a Zacks Industry Rank of 186, placing it in the bottom 27% of over 250 industries [7] - Over the past month, Signet's shares have decreased by 5.98%, underperforming the Retail-Wholesale sector's loss of 0.31% and the S&P 500's gain of 0.43% [8] Group 4: Analyst Sentiment - Recent changes to analyst estimates for Signet indicate a shifting business landscape, with positive revisions reflecting optimism about the company's profitability [9] - The Zacks Rank system currently rates Signet at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [12]

Coming into today, shares of the jewelry company had gained 1.04% in the past month. In that same time, the Retail-Wholesale sector gained 1.3%, while the S&P 500 gained 3.78%. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.60 per share and a revenue of $6.8 billion, representing changes of +2.22% and -5.23%, respectively, from the prior year. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit thi ...

The company faces challenges stemming from weakened consumer demand and heightened competitive pressures, particularly in the higher-priced market segments crucial for sustaining revenue growth and profitability. This scenario is not unique to Signet, as competitors like Brilliant Earth Group, Inc. (BRLT) and Chow Tai Fook Jewellery Group Limited (CJEWY) are also navigating similar market dynamics. Why is Signet's Shine Fading? Signet's ongoing digital transformation initiatives are yet to fully offset thes ...

Signet Jewelers' Same-Store Sales Decline: Impact on Stock Signet Jewelers 52-Week Range $59.80 $112.06 P/E Ratio 7.42 Add to Watchlist Another potential reason for the fall in the stock price is that in the quarterly conference call, Chief Financial Officer Joan Hilson stated that the firm is sensing there will be more pressure on margins this year than previously thought. This is due to promotional pricing within the industry, which could force Signet to do the same to keep prices competitive. Positive EP ...

As a result, revenue fell 9.4% year over year to $1.51 billion, matching analyst estimates and the company's own guidance. However, profits fell sharply along with the decline in revenue as adjusted operating income slipped from $106.5 million to $57.8 million. The company reported adjusted earnings per share of $1.11, down from $1.78 in the quarter a year ago. Coming into its first-quarter earnings report, Signet Jewelers (SIG -5.50%) appeared to be executing its business plan effectively. The world's larg ...

This Zacks Rank #4 (Sell) player's shares have lost 7.8% in the past three months compared with the industry's 7.3% decline. This jewelry retailer generated total sales of $1,510.8 million, surpassing the consensus estimate of $1,505 million. However, the top line fell 9.4% year over year. The metric declined 9.6% at constant currency. The adjusted merchandise margin increased 100 basis points, driven by growth in services and the introduction of new products, including the expansion of lab-grown diamonds i ...

Signet Jewelers Limited (NYSE:SIG) Q1 2025 Earnings Conference Call June 13, 2024 8:30 AM ET Company Participants Rob Ballew - Senior Vice President, Investor Relations Gina Drosos - Chief Executive Officer Joan Hilson - Chief Financial, Strategy and Services Officer Conference Call Participants Paul Lejuez - Citigroup Ike Boruchow - Wells Fargo Mauricio Serna - UBS Jim Sanderson - Northcoast Research Dana Telsey - Telsey Group Operator Good morning, and welcome to Signet Jewelers First Quarter Fiscal 2025 ...

PART I FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) The company's Q1 FY2025 results show a sales decline to $1.51 billion and a net loss of $40.1 million due to a preferred share redemption [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2025 sales fell 9.4% to $1.51 billion, leading to a net loss of $40.1 million driven by a large dividend on preferred shares Q1 FY2025 vs Q1 FY2024 Statement of Operations | Metric | Q1 FY2025 (13 weeks ended May 4, 2024) | Q1 FY2024 (13 weeks ended April 29, 2023) | Change | | :--- | :--- | :--- | :--- | | **Sales** | $1,510.8 million | $1,668.0 million | -9.4% | | **Gross Margin** | $572.4 million | $632.0 million | -9.4% | | **Operating Income** | $49.8 million | $101.7 million | -51.0% | | **Net Income** | $52.1 million | $97.4 million | -46.5% | | **Net (Loss) Income Attributable to Common Shareholders** | ($40.1) million | $88.8 million | -145.2% | | **Diluted EPS** | ($0.90) | $1.79 | -150.3% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $6.15 billion, primarily due to a reduction in cash used for redeeming preferred shares Key Balance Sheet Items (in millions) | Account | May 4, 2024 | February 3, 2024 | April 29, 2023 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $729.3 | $1,378.7 | $655.9 | | **Inventories** | $1,983.6 | $1,936.6 | $2,183.5 | | **Total Assets** | $6,151.2 | $6,813.2 | $6,205.4 | | **Current portion of long-term debt** | $147.8 | $147.7 | $0.0 | | **Total Liabilities** | $3,741.4 | $3,991.2 | $3,969.6 | | **Total Shareholders' Equity** | $2,081.8 | $2,166.5 | $1,581.5 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations improved, while significant cash was used in financing for preferred and common share repurchases Summary of Cash Flows (in millions) | Cash Flow Activity | 13 weeks ended May 4, 2024 | 13 weeks ended April 29, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(158.2) | $(381.8) | | **Net cash used in investing activities** | $(21.5) | $(27.1) | | **Net cash used in financing activities** | $(467.5) | $(100.7) | | **Decrease in cash and cash equivalents** | $(647.2) | $(509.6) | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail sales declines across banners, a $414.1 million preferred share redemption, and a new restructuring plan Q1 FY2025 Sales by Banner (in millions) | Banner | Q1 FY2025 Sales | Q1 FY2024 Sales | | :--- | :--- | :--- | | Kay | $567.5 | $602.2 | | Zales | $256.7 | $295.4 | | Jared | $249.5 | $274.0 | | Digital banners (James Allen/Blue Nile) | $133.7 | $168.2 | Q1 FY2025 Sales by Product (in millions) | Product | Q1 FY2025 Sales | Q1 FY2024 Sales | | :--- | :--- | :--- | | Bridal | $674.6 | $768.7 | | Fashion | $552.0 | $587.0 | | Watches | $63.5 | $74.9 | | Services | $184.5 | $182.1 | - On April 1, 2024, the company settled a conversion of 312,500 Preferred Shares for **$414.1 million in cash**[49](index=49&type=chunk) - The company initiated a restructuring plan involving the closure of up to 150 stores with total estimated costs of **$20-$30 million**[89](index=89&type=chunk)[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 9.4% sales decline, flat gross margin, and reduced operating income, while highlighting a strong liquidity position [Overall Performance and Outlook](index=25&type=section&id=Overall%20Performance%20and%20Outlook) Q1 sales declined due to macroeconomic pressures, but the company anticipates sequential improvement and a recovery in US engagements - Sales in Q1 FY2025 **decreased by 9.4% year-over-year**, impacted by a challenging macroeconomic environment and a decline in engagements[105](index=105&type=chunk) - For Fiscal 2025, the company expects **same-store sales between -4.5% and +0.5%**, with a projected 5% to 10% increase in US engagements[108](index=108&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 total sales fell 9.4% with an 8.9% same-store sales decline, leading to a significant drop in operating income to $49.8 million Q1 FY2025 Sales Performance vs. Prior Year | Segment | Same Store Sales Change | Total Sales Change (Constant Exchange Rate) | Total Sales Change (Reported) | | :--- | :--- | :--- | :--- | | **North America** | -9.2% | -9.0% | -9.0% | | **International** | -3.2% | -19.5% | -17.0% | | **Signet Total** | -8.9% | -9.6% | -9.4% | - **Gross margin rate remained flat at 37.9%** as higher merchandise margins offset the deleveraging of fixed costs on lower sales[120](index=120&type=chunk) - **SG&A as a percentage of sales increased to 34.1%** from 31.8%, primarily due to higher advertising expense and deleverage on fixed costs[121](index=121&type=chunk) Q1 Operating Income by Segment (in millions) | Segment | Q1 FY2025 Operating Income | Q1 FY2024 Operating Income | | :--- | :--- | :--- | | **North America** | $83.2 | $124.7 | | **International** | $(13.0) | $(6.9) | | **Total Operating Income** | $49.8 | $101.7 | [NON-GAAP Measures](index=29&type=section&id=NON-GAAP%20Measures) Adjusted operating income was $57.8 million and adjusted diluted EPS was $1.11, excluding restructuring and preferred share dividend impacts Reconciliation of GAAP to Adjusted Operating Income (in millions) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **Operating Income (GAAP)** | $49.8 | $101.7 | | Restructuring & Asset Impairments | $6.5 | $0.0 | | Integration-related expenses | $0.2 | $7.8 | | Litigation charges | $0.0 | $(3.0) | | **Adjusted Operating Income (Non-GAAP)** | $57.8 | $106.5 | Reconciliation of GAAP to Adjusted Diluted EPS | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | $(0.90) | $1.79 | | Restructuring & other charges | $0.17 | $0.08 | | Deemed dividend on redemption of Preferred Shares | $1.91 | $0.00 | | Dilution effect | $(0.03) | $0.00 | | Tax Impact | $(0.04) | $(0.09) | | **Adjusted Diluted EPS (Non-GAAP)** | $1.11 | $1.78 | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $729.3 million in cash after significant share redemptions and repurchases - The company's capital allocation priorities are to invest in the business, optimize capital structure, and return cash to shareholders[143](index=143&type=chunk) - In Q1 FY2025, the company **redeemed half of its Preferred Shares for $414.1 million** in cash[148](index=148&type=chunk) - The quarterly common dividend was **increased from $0.23 to $0.29 per share** for Fiscal 2025[150](index=150&type=chunk) Summary Cash Flow (in millions) | Metric | 13 weeks ended May 4, 2024 | 13 weeks ended April 29, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(158.2) | $(381.8) | | Net cash used in investing activities | $(21.5) | $(27.1) | | Net cash used in financing activities | $(467.5) | $(100.7) | | **Decrease in cash and cash equivalents** | **$(647.2)** | **$(509.6)** | [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from currency, interest rates, and commodity prices using derivatives, with no material changes to its risk profile - The company is exposed to market risks including **foreign currency exchange rates, interest rates, and precious metal prices**[177](index=177&type=chunk) - Signet uses forward foreign currency exchange contracts to manage currency exposure for its UK and Canadian operations[178](index=178&type=chunk) - The company's market risk profile has **not materially changed** from what was disclosed in its Fiscal 2024 Annual Report on Form 10-K[180](index=180&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls in Q1 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of May 4, 2024[182](index=182&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the first quarter of Fiscal 2025[183](index=183&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=ITEM%201.%20Legal%20Proceedings) Pending legal proceedings are not expected to have a material adverse effect on the company's financial condition - The company does **not expect any pending legal proceedings to have a material adverse effect** on its financial condition or results of operations[92](index=92&type=chunk) [Risk Factors](index=39&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the last annual report - **No material changes** have occurred in the company's risk factors since the filing of its last Annual Report on Form 10-K[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 73,440 common shares in Q1, with $853.6 million remaining under its repurchase authorization Q1 FY2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Feb 4 - Mar 2, 2024 | 41,536 | $102.91 | | Mar 3 - Mar 30, 2024 | 31,904 | $98.74 | | **Total Q1** | **73,440** | **$101.09** | - As of May 4, 2024, approximately **$853.6 million remains authorized for repurchase** under the company's share repurchase programs[188](index=188&type=chunk) [Other Information](index=39&type=section&id=ITEM%205.%20Other%20Information) Several directors and officers adopted Rule 10b5-1 trading plans during the first quarter to sell common shares - Multiple directors and officers, including the CIO, CDO, and Group President, **adopted Rule 10b5-1 trading plans** during Q1 FY2025[189](index=189&type=chunk) [Exhibits](index=40&type=section&id=ITEM%206.%20Exhibits) This section lists filed exhibits, including officer certifications and details on Series A Convertible Preference Shares - Key exhibits filed include the Amended Certificate of Designation for Series A Convertible Preference Shares and **certifications by the CEO and CFO**[191](index=191&type=chunk)

Signet (SIG) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for nonrecurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Over the last four quarters, the company has surpassed consensus EPS estimates fou ...

Exhibit 99.1 SIGNET JEWELERS REPORTS FIRST QUARTER FISCAL 2025 RESULTS Delivered First Quarter Expectations Engagement Recovery Momentum Continues Reaffirms April Increase to Full Year Outlook HAMILTON, Bermuda, June 13, 2024 – Signet Jewelers Limited ("Signet" or the "Company") (NYSE:SIG), the world's largest retailer of diamond jewelry, today announced its results for the 13 weeks ended May 4, 2024 ("first quarter Fiscal 2025"). "Our results reflect notable acceleration from a sluggish February to the top ...