Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — FY2013 Earnings Presentation
21 slides from Signet Jewelers's earnings presentation, Mar 28, 2013
Slide 1: Fiscal 2013 Fourth Quarter and Full Year Results
Every kiss begins with Kay.® Fiscal 2013 Fourth Quarter and Full Year Results Thursday, March 28, 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: Fourth Quarter 2013 Results
Fourth Quarter 2013 Results Same store sales* up 3.5% US division up 4.9% UK division down 1.9% Operating income $267.7 million, up 9.8% Diluted earnings per share $2.12, up 18.4% * As the fourth quarter of Fiscal 2013 includes 14 weeks, sales in the last week of the quarter were not inclu
Slide 4: Fiscal 2013 Results and Highlights
Fiscal 2013 Results and Highlights Same store sales* up 3.3% US division up 4.0%; UK division up 0.3% Record profitability Operating income $560.5 million, up 10.5% Diluted earnings per share $4.35, up 16.6% Repurchased 7.4% of stock Increased dividend Acquired Ultra Stores, Inc. to
Slide 5: US Performance
US Performance Change in same Change in total Fiscal 2013 Total sales store sales1 sales Kay $1,953.3m 6.4% 9.3% Jared $1,003.1m 1.6% 4.8% Regionals $271.8m (3.4)% (6.4)% US division excluding Ultra $3,228.2m 4.0% 6.4% Ultra $45.7m — 1.5%² US including Ultra $3,273.9m 4.0% 7.9% Operating income $547
Slide 6: FY 2013 US Performance Drivers: Merchandise
FY 2013 US Performance Drivers: Merchandise ® ® Broad based sales growth Branded differentiated and exclusive merchandise gained relative share, sales up 9.7% Sales strength in watches 6
Slide 7: FY 2013 US Performance Drivers: Marketing
FY 2013 US Performance Drivers: Marketing Everyone knows Every Kiss Begins With Kay ® and He Went to Jared ® Outstanding, creative advertising engages customers emotionally and drives sales Industry-leading share of voice Every kiss begins with Kay® He went to Jared! ® 7
Slide 8: FY 2013 US Performance Drivers: Digital Media
FY 2013 US Performance Drivers: Digital Media Drove sales with integrated multi-channel approach Computer-assisted selling Investing in digital media New websites and mobile apps 8
Slide 9: FY 2013 US Performance Drivers: Outlet Strategy
FY 2013 US Performance Drivers: Outlet Strategy Acquisition of Ultra Stores creates leading position in US outlet channel Sales of ~$140 million annually 110 stores at the end of Fiscal 2013 Immediate goal Convert majority of Ultra stores to Kay outlets by mid-FY14 to leverage advertising,
Slide 10: UK Performance
UK Performance Change in Change in same total sales at Total sales store sales¹ CER² Fiscal 2013 H.Samuel $387.0m 0.2% 0.1% Ernest Jones $322.5m 0.3% (0.5)% UK division $709.5m 0.3% (0.2)% Operating income $40.0m Operating margin 5.6% 1. As Fiscal 2013 includes 53 weeks, sales in the last week of th
Slide 11: UK: Committed to Long-Term Plan
UK: Committed to Long-Term Plan Primary focus on merchandise assortment Real estate and channel optimization Cost control 11
Slide 12: Goal: To Enhance Signet's Position as the Market Leader
Goal: To Enhance Signet’s Position as the Market Leader To accomplish our goal, we will stay focused on: Developing and training our team members to consistently enhance the retail experience of our customers. Growing and developing new and existing brands and categories to delight customers.
Slide 13: 4Q 2013 Sales Performance
4Q 2013 Sales Performance US US Excluding Including Ultra Ultra⁴ Ultra UK Total Sales 4Q 2013 $m 1,199.2 45.7 1,244.9 268.4 1,513.3 Sales 4Q 2012 $m 1,090.1 — 1,090.1 263.7 1,353.8 Change in sales % % % % % Change in same store sales¹ 4.9 — 4.9 (1.9) 3.5 Non-same store sales, net¹,² 1.3 4.0 5.3 (3.6
Slide 14: 4Q 2013 Reconciliation – 14 Weeks
4Q 2013 Reconciliation – 14 Weeks % of sales Operating Income 4Q 2012 $243.9m 18.0% Gross margin movement $73.9m 0.5% Selling, general & admin. expense $(62.1)m (1.3)% movement Other operating income movement $12.0m 0.5% Operating Income 4Q 2013 $267.7m 17.7% Net interest $(1.1)m Income before tax $
Slide 15: 4Q 2013 SG&A Reconciliation
4Q 2013 SG&A Reconciliation % of $m sales SG&A 4Q 2012 348.8 25.8% 53rd week impact excluding the Ultra impact 26.7 Ultra impact 13.4 Other 22.0 SG&A 4Q 2013 – as reported 410.9 27.1% SG&A Rate – excluding the 14th week and Ultra 26.2% 15
Slide 16: Fiscal 2013 Key Financial Highlights
Fiscal 2013 Key Financial Highlights Fiscal Fiscal 2013 2012 Sales: $3,983.4m $3,749.2m Total Sales 6.2% 9.1% Same Store Sales 3.3% 9.0% Gross Margin Rate 38.6% 38.3% SG&A Rate – as reported 28.6% 28.2% SG&A Rate – excluding the 53rd week and 28.3% Ultra Operating Margin 14.1% 13.5% Diluted earnings
Slide 17: Strong Cash Position
Strong Cash Position Use of Cash Increases Shareholder Value Fiscal 2013 $ millions Net cash provided by operating activities 312.7 Property and equipment, net (134.2) Free cash flow* 178.5 Fiscal 2013 significant cash uses: Ultra Stores, Inc. acquisition (56.7) Stock repurchase (287.2) Dividends pa
Slide 18: Fiscal 2013 Inventory
Fiscal 2013 Inventory Inventories $1,397.0 million, up 7.1%, 4.1% excluding Ultra Ultra Increased commodity costs Strategic investments Best inventory management in specialty jewelry retail 18
Slide 19: Credit Statistics
Credit Statistics Fiscal 2013 Fiscal 2012 Accounts receivable, net $1,205.3m $1,088.2m Customer finance participation 56.9% 56.1% Average outstanding account $1,110 $1,068 balance at year end Average monthly collection rate 12.4% 12.7% Net bad debt In $ ($122.4)m ($103.1)m As a % of US sales 3.7% 3.
Slide 20: Financial Guidance
Financial Guidance First Quarter Fiscal 2014 Same store sales 5% to 7% Diluted earnings per share $1.07 - $1.12 Fiscal 2014 Capital spending $180 million - $195 million New stores 65 – 75 20
Slide 21: Every kiss begins with Kay. Fiscal 2013 4th Quarter and Full Year Results
Every kiss begins with Kay.® Fiscal 2013 4th Quarter and Full Year Results Thursday, March 28, 2013 21