Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q3 FY2014 Earnings Presentation
15 slides from Signet Jewelers's earnings presentation, Nov 26, 2013
Slide 1: Fiscal 2014 Third Quarter Results
Every kiss begins with Kay.® Fiscal 2014 Third Quarter Results Tuesday, November 26, 2013 1
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
Slide 3: Third Quarter Fiscal 2014 Results Highlights
Third Quarter Fiscal 2014 Results Highlights Same store sales up 3.2% US division up 4.2% UK division down 0.9% Operating income $51.6 million Diluted earnings per share $0.42 Diluted earnings per share excluding Ultra $0.45 3
Slide 4: US Performance
US Performance Change in same Change in total Third Quarter Fiscal 2014 Total sales store sales¹ sales Kay $364.0m 5.8% 7.9% Jared $195.2m 3.0% 2.8% Regionals $44.9m (2.2)% (7.6)% US division excluding Ultra $604.1m 4.2% 5.0% Ultra² $28.0m — 4.8%² US division $632.1m 4.2% 9.8% US division excluding
Slide 5: US Stores: Outlets
US Stores: Outlets Effective Kay outlet development driven by: New stores Integration of Ultra New merchandise Tailored advertising Credit penetration Expectations for FY14-end: Nearly 160 stores Over $200 million in sales 5
Slide 6: UK Performance
UK Performance Change Change Change in same in total in total Total store sales at sales as sales sales¹ CER² reported Third Quarter Fiscal 2014 H.Samuel $73.1m (2.2)% (1.3)% (1.3)% Ernest Jones $66.2m 0.6% (0.5)% (0.5)% UK division $139.3m (0.9)% (0.9)% (0.9)% Operating loss $(4.4)m down 20.0% Oper
Slide 7: Ready to Win
Ready to Win Talented and well-trained sales teams Exciting new products Bridal: Leo Artisan; Tolkowsky; Neil Lane Artistry and Vivid colored diamonds assortment expansion LeVian: expanding successful styles into new colors Open Hearts Wave Digital ecosystem initiatives Captivating n
Slide 8: Third Quarter Fiscal 2014 Sales Performance
Third Quarter Fiscal 2014 Sales Performance US excluding Ultra Ultra¹ US UK Total Sales Q3 2014 $m 604.1 28.0 632.1 139.3 771.4 Sales Q3 2013 $m 575.6 — 575.6 140.6 716.2 Change in sales % % % % % Change in same store sales²,³ 4.2 — 4.2 (0.9) 3.2 Non-same store sales, net³,⁴ 0.8 4.8 5.6 — 4.5 Change
Slide 9: Third Quarter Fiscal 2014 Reconciliation
Third Quarter Fiscal 2014 Reconciliation Signet % of sales Operating Income Q3 2013 $52.5m 7.3% Gross margin movement $3.8m (1.9)% Selling, general & admin. expense $(10.8)m 0.9% movement Other operating income movement $6.1m 0.4% Operating Income Q3 2014 $51.6m 6.7% Diluted earnings per share $0.42
Slide 10: SG&A Bridge
SG&A Bridge ( ) = decrease % of sales SG&A Q3 Fiscal 2013 $222.6m 31.1% Change in US SG&A $9.0m Change in UK/Corporate $(6.6)m Ultra Expenses¹ $8.4m SG&A Q3 Fiscal 2014 $233.4m 30.2% 1. Includes results for all store locations acquired in the Ultra acquisition. 10
Slide 11: Third Quarter Fiscal 2014 Inventory
Third Quarter Fiscal 2014 Inventory Ending inventory was $1,644.9 million, up $136.4 million or 9.0%, which includes: Ultra inventory of $41.4 million Rough diamond inventory of $52.0 million, which was up $19.5 million over prior year Excluding these items, inventory increased 5.0% Invent
Slide 12: Credit Statistics
Credit Statistics Third Quarter Fiscal 2014 Fiscal 2013 Accounts receivable, net $1,123.5m $998.2m Credit Participation – US Excluding Ultra 64.2% 62.7% Credit Participation – US Including Ultra 63.3% 62.7% US Average monthly collection rate 11.7% 12.0% Year to Date Fiscal 2014 Fiscal 2013 Accounts
Slide 13: Credit Statistics
Credit Statistics Third Quarter Fiscal 2014 Fiscal 2013 Net bad debt ($35.1)m ($31.3)m As a % of US sales 5.6% 5.4% Other operating income, net $45.8m $39.7m As a % of Signet sales 5.9% 5.5% Net Impact $10.7m $8.4m Year to Date Fiscal 2014 Fiscal 2013 Net bad debt ($92.9)m ($81.4)m As a % of US sale
Slide 14: Financial Guidance
Financial Guidance Fourth Quarter Fiscal 2014 Same store sales Low-to-mid single-digits Diluted earnings per share $2.30 - $2.40 Fiscal 2014 Capital spending $180 million - $185 million New Kay and Jared stores 75 – 85 14
Slide 15: Fiscal 2014 Third Quarter Results
Every kiss begins with Kay.® Fiscal 2014 Third Quarter Results Tuesday, November 26, 2013 15