Signet Jewelers Limited · NYSE:SIG

Signet Jewelers — Q2 2018 Earnings Presentation

13 slides from Signet Jewelers's earnings presentation, Aug 24, 2017

  1. Slide 1: Second Quarter Fiscal 2018 Results

    Second Quarter Fiscal 2018 Results Thursday, August 24, 2017

  2. Slide 2: Forward Looking Statements & Other Disclosure Matters

    Forward Looking Statements & Other Disclosure Matters Forward-Looking Statements – This presentation contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management's beliefs and expectations

  3. Slide 3: Strategic Priorities

    Strategic Priorities Immediate focus areas to rebuild competitive advantage Culture of Agility and Customer First OmniChannel Efficiency  Deepen consumer  Seamlessly integrated  Innovative and entrepreneurial understanding and leverage customer experience across mindset; leadership at every data

  4. Slide 4: Strategic Acquisition of R2Net, owner of JamesAllen.com

    Strategic Acquisition of R2Net, owner of JamesAllen.com Transaction accelerates Signet’s OmniChannel strategy and creates significant growth opportunities  JamesAllen.com is a leading, fast-growing online retailer of diamond jewelry with millennial appeal and superior average transaction value (“AT

  5. Slide 5: Second Quarter Fiscal 2018 Summary

    Second Quarter Fiscal 2018 Summary  Same store sales increased 1.4%. Key drivers included: o Fashion jewelry – On-trend wins around stacking, layering; EverUs, Le Vian o Branded bridal jewelry – Neil Lane, Vera Wang, Leo and Chosen o Kay Jewelers, Peoples, Piercing Pagoda o eCommerce – Robust onlin

  6. Slide 6: Progress on Strategic Initiatives

    Progress on Strategic Initiatives  OmniChannel: o eCommerce platform enhancements: improved user experience, technical enhancements, effective digital marketing and greater store integration, Zale division websites re-launch o The implementation of R2Net’s innovation capabilities and digital techno

  7. Slide 7: Second Quarter Sales Performance

    Second Quarter Sales Performance Total sales % Non-same at constant Exchange Same Store store sales exchange translation Total sales Sales %1 %, net2 rate impact % Total sales % (in millions $) Kay 2.9 2.8 5.7 5.7 564.0 Jared 0.8 1.5 2.3 2.3 276.2 Regional brands -9.5 -12.6 -22.1 -22.1 27.9 Sterling

  8. Slide 8: Income Statement Highlights

    Income Statement Highlights (Percentage of Sales) 2Q Fiscal 2018 2Q Fiscal 2017 Difference Gross margin 32.7% 33.9% (120) bps SG&A 29.2% 30.3% (110) bps Credit transaction, net 1.1% - 110 bps Other operating income 5.1% 5.1% 0 bps Operating income 9.7% 8.7% 100 bps Earnings per share $1.33 $1.06 $0.

  9. Slide 9: Working Capital and Free Cash Flow

    Working Capital and Free Cash Flow  Inventory $2.3 billion, down 5.6%, while Q2 total sales increased 1.9%  Prudent inventory management, particularly Zales brands  Underperforming collections reduced across organization  Free cash flow YTD $304M, up $96M Note: Free cash flow is a non-GAAP measu

  10. Slide 10: Sterling Division Credit and Allowance Metrics

    Sterling Division Credit and Allowance Metrics (in millions except percentages) 2Q FY18 2Q FY17 Difference Credit sales $536 $529 $7 In-house credit participation 61.7% 63.1% (140) bps Accounts receivable, gross¹ $1,792 $1,745 $47 Average monthly payment collection rate 10.3% 10.8% (50) bps Interest

  11. Slide 11: Sterling Division Credit Portfolio: Phase I Outsourcing Impact

    Sterling Division Credit Portfolio: Phase I Outsourcing Impact One-time Items Q4 Considerations  $20.7M pre-tax non-cash gain in Q2 associated  $22M decline in EBIT due to: with classification of prime receivables as “Assets o $28M net unfavorable due to loss of prime Held For Sale” portfolio net

  12. Slide 12: Financial Guidance

    Financial Guidance Reiterated SSS guidance; Updated EPS guidance to reflect the benefits from strategic outsourcing of credit portfolio, partially offset by CEO separation costs and R2Net acquisition costs Est. change (per share Initial Guidance, March 9 Guidance, August 24 unless indicated) SSS Dow

  13. Slide 13: Signet Jewelers Ltd.

    Signet Jewelers Ltd.

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