Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q3 Fiscal 2012 Earnings Presentation
21 slides from Signet Jewelers's earnings presentation, Nov 22, 2011
Slide 1: Fiscal 2012 Q3 Results
Fiscal 2012 Q3 Results November 22, 2011 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: Q3 Fiscal 2012 Results Highlights
Q3 Fiscal 2012 Results Highlights Ö Same store sales up 10.6% Ö US division +13.9% (Q3 Fiscal 2011 +9.7%) Ö UK division –0.5% (Q3 Fiscal 2011 -0.6%) Ö 6.0% operating margin, +310 bpts Ö Income before taxes $42.1 million, +$30.1 million Ö Diluted eps $0.30, +$0.23 Ö Share Repurchase Program announced
Slide 4: Q3 US Performance
Q3 US Performance Changes in Sales Same store Sales ASP1 sales Q3 Fiscal 2012 Kay $314.3m 13.0% 13.8% 8.7% Jared $194.6m 18.3% 18.4% 21.7% Regionals $54.1m 4.3% (3.9)% 7.3% US division $563.0m 13.9% 13.3% 12.4% Operating income, net $56.4m up $30.7 million,+119.5% Operating margin 10.0% + 510 bpts 1
Slide 5: Superior In-Store Customer Experience
Superior In-Store Customer Experience ÖBest-in-class customer service ÖFocus on training & development of sales associates 5
Slide 6: Brands Driving Bridal Sales
Brands Driving Bridal Sales ÖLeo Diamond®: recognized as the most successful branded diamond program ÖNeil Lane Bridal™: rolled out to all stores over last 15 months ÖBridal contributing to growth in ASP 6
Slide 7: Exclusive & Differentiated Brands
Exclusive & Differentiated Brands ÖStrong performance by branded merchandise ÖCreates a unique store destination ÖPowerful selling proposition for sales associates 7
Slide 8: Increased Marketing For Holiday
Increased Marketing For Holiday 8
Slide 9: Q3 UK Performance
Q3 UK Performance Changes in Sales Same store Total ASP1 sales Sales Q3 Fiscal 2012 H.Samuel $78.3m 0.0% 3.0% 5.2% Ernest Jones $69.2m -1.1% 0.6% 12.4% UK division $147.5m -0.5% 1.9% 6.5% Operating loss, net -$5.0m an increased loss of $3.4 million Operating margin -3.4% down by 230 bpts 1. Average
Slide 10: UK Initiatives
UK Initiatives ÖDifferentiated store brands ÖMarketing initiatives ÖFocused execution 10
Slide 11: Investing in Digital Media
Investing in Digital Media 11
Slide 12: Q3 Fiscal 2012 Sales Performance
Q3 Fiscal 2012 Sales Performance US UK Total Sales Q3 Fiscal 2012 $m 563.0 147.5 710.5 Sales Q3 Fiscal 2011 $m 497.0 144.8 641.8 Change in sales % % % Same store sales 13.9 (0.5) 10.6 Space impact (0.6) (0.7) (0.7) Change in total sales at constant 13.3 (1.2) 9.9 exchange rate1 Exchange translation
Slide 13: Q3 Fiscal 2012 Income Analysis
Q3 Fiscal 2012 Income Analysis % of sales Income before tax Q3 Fiscal 2011 $12.0m 1.9% Gross margin movement $36.3m 2.2% Selling, general & admin. expense movement $(18.1)m 0.5% Other net operating income movement $ 5.8m 0.4% Net operating income movement $24.0m 3.1% Net interest movement $6.1m 0.9%
Slide 14: SG&A Reconciliation
SG&A Reconciliation Q3 YTD % of Fiscal $m 2011 $m % of Fiscal SG&A 2011 SG&A SG&A Fiscal 2011 201.5 643.7 Net advertising investment 3.7 1.8% 14.0 2.2% Currency movement 1.5 0.8% 7.6 1.2% 401(k) increase 1.1 0.6% 4.1 0.7% Store staff flex 7.1 3.5% 22.8 3.5% Change in other items 4.7 2.3% 15.7 2.4% S
Slide 15: Receivables Trend Shows Continued Improvement in Q3
Receivables Trend Shows Continued Improvement in Q3 9.0 15.0 8.0 7.0 12.0 6.0 US net bad 5.0 9.0 Average debt monthly as % 4.0 collection of total 3.0 6.0 rate % US sales 2.0 Q3 Fiscal 2002 to Q3 Fiscal 2008 3.0 1.0 net bad debt range 3.9% to 4.8% 0.0 0.0 2 3 4 5 6 7 8 9 0 1 12 Fi 200 Fi 200 Fi 200
Slide 16: YTD Fiscal 2012 Highlights
YTD Fiscal 2012 Highlights Ö Same store sales up 10.2% Ö US division +12.8%, YTD Fiscal 2011 +7.5% Ö UK division +0.4%, YTD Fiscal 2011 –0.5% Ö 11.0% operating margin, +350 bpts Ö Income before taxes $259.7 million, +$118.9 million or +84.4% Ö Diluted eps $1.93, +$0.83 or +75.5% 16
Slide 17: Cash Flow
Cash Flow YTD Fiscal YTD Fiscal 2012 2011 $m $m Net cash provided by operating activities 113.6 196.9 Net cash used in investing activities (73.0) (39.5) Free cash flow1 40.6 157.4 Net cash provided by/(used in) financing activities 6.3 (56.7) Increase in cash and cash equivalents 46.9 100.7 Cash an
Slide 18: Fiscal 2012 Financial Objectives
Fiscal 2012 Financial Objectives Ö Gain profitable market share Ö Improve gross margin ratio Ö Maintain broadly similar SG&A ratio Ö Planned capex in Fiscal 2012 of $110 million to $130 million Ö Free cash flow expected to be $175 million to $225 million 18
Slide 19: Regulation G Disclosures
Regulation G Disclosures JEWELERS
Slide 20: Exchange Translation Impact on Q3 Fiscal 2012 Results
Exchange Translation Impact on Q3 Fiscal 2012 Results Signet has historically used constant exchange rates to compare period-to-period changes in certain financial data. Management considers this a useful measure for analyzing and explaining changes and trends in Signet’s results. The impact of the
Slide 21: Free Cash Flow
Free Cash Flow Free cash flow is a “non-GAAP financial measure” defined as the net cash provided by operating activities less net cash flows used in investing activities. Management considers that it is helpful in understanding how the business is generating cash from its operating and investing act
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