Signet Q4 Earnings Beat Estimates, Same-Store Sales Decline Y/Y

Core Viewpoint - Signet Jewelers Limited (SIG) reported fourth-quarter fiscal 2025 results with both revenues and earnings declining year over year, despite surpassing consensus estimates for both metrics [1][3]. Financial Performance - Adjusted earnings per share were $6.62, exceeding the Zacks Consensus Estimate of $6.39, but down 1.6% from $6.73 in the previous year [3]. - Total sales reached $2,352.6 million, beating the consensus estimate of $2,330 million, but fell 5.8% year over year, with a 5.7% decline at constant currency [3]. - Gross profit for the quarter was $1 billion, down 7.4% from $1.08 billion in the prior year, with a gross margin decline of 70 basis points to 42.6% [4]. - Selling, general and administrative (SG&A) expenses were $639.2 million, a decrease of 4.9% year over year, but SG&A as a percentage of sales increased by 30 basis points to 27.2% [5]. Segment Performance - North American segment sales fell 5.6% year over year to $2.22 billion, surpassing the consensus estimate of $2.19 billion, while same-store sales decreased by 1.1% [6]. - International segment sales decreased by 10.9% year over year to $126.2 million, missing the consensus estimate of $137 million, with same-store sales down 1.5% [6]. Store Count - As of February 1, 2025, the North American segment had 2,379 stores, down from 2,411 a year prior, while the International segment had 263 stores, down from 287 [7]. Financial Snapshot - At the end of the fiscal fourth quarter, cash and cash equivalents stood at $604 million, with inventories at $1.94 billion and total shareholders' equity at $1.85 billion [8]. Share Repurchase - In fiscal 2025, Signet repurchased 1.6 million shares for $138 million, with approximately $723 million remaining under its share repurchase authorization [9]. Guidance - For Q1 fiscal 2026, total sales are expected between $1.50 billion and $1.53 billion, with same-store sales projected to be flat to an increase of 2% [11]. - For fiscal 2026, total sales are projected between $6.53 billion and $6.80 billion, with same-store sales expected to decline by 2.5% to an increase of 1.5% [12].