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 ...

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 ...