SIGNET JEWELERS REPORTS FIRST QUARTER FISCAL 2025 RESULTS

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]