Core Insights - Signet Jewelers Limited reported a decline in sales and profitability for the first quarter of Fiscal 2025, with total sales of $1.51 billion, down 9.4% from the previous year [44][29][36] - The company experienced a significant drop in same store sales (SSS), which decreased by 8.9% compared to the first quarter of Fiscal 2024 [44][46] - The diluted loss per share was $0.90, a decrease from a diluted earnings per share of $1.79 in the same quarter last year, primarily due to a deemed dividend related to the redemption of preferred shares [44][48][67] Financial Performance - Total sales for the North America segment were $1.42 billion, down 9.0%, while the International segment reported sales of $77.2 million, down 17.0% [4][39] - Gross margin decreased to $572.4 million, representing 37.9% of sales, compared to $632.0 million or 37.9% of sales in the prior year [29][73] - Selling, general and administrative expenses (SG&A) were $515.4 million, down from $530.4 million in Q1 of FY24, but SG&A as a percentage of sales increased to 34.1% [5][29] Adjusted Metrics - Adjusted operating income was $57.8 million, down from $106.5 million in the prior year, with an adjusted operating margin of 3.8% [11][44][40] - Adjusted diluted EPS was $1.11, compared to $1.78 in Q1 of FY24 [44][48] - The company ended the quarter with an adjusted debt to adjusted EBITDAR ratio of 2.2x, below the target of 2.5x [49][66] Cash Flow and Capital Management - Cash and cash equivalents at the end of the quarter were $729.3 million, up from $655.9 million in Q1 of FY24 [44][75] - Year-to-date cash used in operating activities was $158.2 million, significantly improved from $381.8 million in the same period last year [44][75] - The company repurchased approximately 73,000 common shares for $7.4 million during the first quarter [44][76] Guidance and Outlook - For the second quarter, Signet expects total sales between $1.46 billion and $1.52 billion, with same store sales projected to decline between 6% and 2% [14][50] - The full year guidance for Fiscal 2025 includes total sales of $6.66 billion to $7.02 billion, with adjusted EBITDA expected between $780 million and $865 million [77][78] - The company anticipates a negative impact of approximately 1.5% to 2.0% on sales due to integration issues with its digital banners [78]

Core Viewpoint - The average brokerage recommendation (ABR) for Signet (SIG) is 2.00, indicating a Buy, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][4][9]. Brokerage Recommendation Trends - Signet's ABR of 2.00 is based on recommendations from six brokerage firms, with three firms (50%) issuing a Strong Buy rating [2]. - Brokerage analysts tend to exhibit a positive bias, often issuing more favorable ratings than warranted, which can mislead investors [5][9]. Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a current Zacks Rank of 3 (Hold) for Signet, indicating a cautious outlook despite the Buy-equivalent ABR [7][12][13]. - The Zacks Rank is based on timely earnings estimate revisions, which correlate strongly with near-term stock price movements, unlike the potentially outdated ABR [10][11]. Earnings Estimates - The Zacks Consensus Estimate for Signet's current year earnings remains unchanged at $10.60, suggesting stable analyst views on the company's earnings prospects [12]. - The lack of change in the consensus estimate may indicate that Signet's stock is likely to perform in line with the broader market in the near term [12].

Shares of Signet (SIG) have been strong performers lately, with the stock up 16.1% over the past month. The stock hit a new 52-week high of $109.53 in the previous session. Signet has gained 2.1% since the start of the year compared to the 9.3% move for the Zacks Retail-Wholesale sector and the -2.1% return for the Zacks Retail - Jewelry industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the ...

Signet (SIG) closed at $105.83 in the latest trading session, marking a +1.44% move from the prior day. This change outpaced the S&P 500's 0.6% loss on the day. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a techheavy index, lost 1.08%. The jewelry company's stock has climbed by 8.73% in the past month, exceeding the Retail-Wholesale sector's gain of 1.07% and the S&P 500's gain of 3.15%. The upcoming earnings release of Signet will be of great interest to investors. The company's earnings report is expec ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by th ...

Signet (SIG) closed at $102.74 in the latest trading session, marking a +1.35% move from the prior day. This move outpaced the S&P 500's daily gain of 0.7%. On the other hand, the Dow registered a gain of 0.01%, and the technology-centric Nasdaq increased by 1.1%. The jewelry company's shares have seen an increase of 1.72% over the last month, not keeping up with the Retail-Wholesale sector's gain of 1.98% and the S&P 500's gain of 4.03%. The upcoming earnings release of Signet will be of great interest to ...

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a st ...

Company Overview - Signet Jewelers Limited is the world's largest retailer of diamond jewelry [2] - The company operates approximately 2,700 stores and various eCommerce sites under multiple brand names including KAY Jewelers, Zales, and Jared [2] - Signet is committed to sustainability and participates in the United Nations Global Compact [2] Upcoming Financial Announcement - Signet intends to announce its first quarter results on June 13, 2024, at approximately 7:00 a.m. ET [1] - A conference call will be held on the same day at 8:30 a.m. ET, with a simultaneous audio webcast available [1] - Registration for the webcast can be done through a provided link [1]

"Honestly, Kay is one of the key reasons I came to Signet. It's is such a well-loved brand in the ... [+] U.S.," said CEO Gina Drosos. Courtesy of Signet Jewelers Signet Jewelers just came off a disappointing year and expects another tough market in 2024. With North America accounting for over 90% of its total $7.2 billion revenues last year – its fiscal 2024 ended February 3, 2024 – Signet experienced an 8% decline here to $6.7 billion. This is set against a 2% decline in American jewelry expenditures, fro ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that ...