Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q3 FY2013 Earnings Presentation
16 slides from Signet Jewelers's earnings presentation, Nov 20, 2012
Slide 1: Q3 Fiscal 2013 Results
Q3 Fiscal 2013 Results Tuesday, November 20, 2012
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 1995. These statements statements, based upon management’s manageme
Slide 3: Q3 Fiscal 2013 Results Highlights
Q3 Fiscal 2013 Results Highlights g g Same store sales up 1.4% US division +1.2% (Q3 Fiscal 2012 +13.9%) UK division +2.3% (Q3 Fiscal 2012 -0.5%) 7.3% operating margin, +130bps Operating income $52 $52.5 5 million million, +$10 +$10.0 0 million Record diluted EPS $0.43, +$0.13 or 43.3% 3
Slide 4: US Performance
US Performance Change in Total Sales Same Store Same Store Q3 FY13 Totall Sales T S l Sales Sales (in millions) Q3 FY 13 Q3 FY13 Q3 FY12 Kay $337.2 7.3% 5.5% 13.0% Jared $189 8 $189.8 (2 5)% (2.5)% (4 1)% (4.1)% 18.3% Regionals $48.6 (10.2)% (5.0)% 4.3% US division $575.6 2.2% 1.2% 13.9% Operating i
Slide 5: Ready to Win at Holiday
Ready to Win at Holiday Exciting new products Innovative new advertising campaigns Professional and well-trained sales teams 5
Slide 6: Continuing Our Growth in Digital Sales
Continuing Our Growth in Digital Sales Enhanced Kay & Jared websites launched Continued drive into social media and mobile capabilities Roll out of in-store sales gy technology 6
Slide 7: Acquisition of Ultra Stores
Acquisition q of Ultra Stores $58.4 million in cash, including working capital adjustment sales of ~$140 million annually 107 stores 33 licensed jewelry departments Long-term strategy convertt mostt outlet tl t stores t to t Kay K Jewelers J l b mid-FY14 by id FY14 tto increase productiv
Slide 8: UK Performance
UK Performance Change in Change iin Change Ch Ch iin Total sales total sales same store same store Q3 FY 13 at CER1 sales sales (in millions) Q3 FY 13 Q3 FY 13 Q3 FY12 H.Samuel $74.1 (2.9)% 1.3% 0.0% Ernest Jones $66.5 (1.5)% 3.6% (1.1)% UK division $140.6 (2.2)% 2.3% (0.5)% Operating loss, net $(5.
Slide 9: Ready to Win
Ready y to Win Record level of new merchandise Enhanced merchandise programs at H.Samuel H Samuel (e.g. (e g Together) and Ernest Jones (e.g. Watch boutiques) Greater merchandise availability due to new technology rollout Continued growth in digital sales 9
Slide 10: Q3 Fiscal 2013 Sales Performance
Q3 Fiscal 2013 Sales Performance US UK Total Total sales Q3 Fiscal 2013 $m 575.6 140.6 716.2 Total sales Q3 Fiscal 2012 $m 563.0 147.5 710.5 Ch Change in i total t t l sales l 2 2% 2.2% (4 7)% (4.7)% 0 8% 0.8% Change in same store sales 1.2% 2.3% 1.4% g in non-same store sales1, net Change 1.0% ((4.
Slide 11: Q3 Fiscal 2013 Reconciliation
Q3 Fiscal 2013 Reconciliation % of sales Operating Income Q3 Fiscal 2012 $42.5m 6.0% Gross margin movement $5.5m 0.5% Selling, general & admin. expense movement $(3.0)m (0.2)% Other operating income movement $7.5m 1.0% Operating Income Q2 Fiscal 2013 $52.5m 7.3% Net interest $(0.9)m Income before ta
Slide 12: Q3 Fiscal 2013 Balance Sheet Highlights
Q3 Fiscal 2013 Balance Sheet Hi hli ht Highlights Inventories $1,508.5 million, up p 6.7% on Q3 FY12 Seasonal fluctuations Increased commodity costs Strategic investments Best inventory management in specialty jewelry retail Net N t accounts t receivables i bl $998 $998.2 2 million, illi
Slide 13: Credit Portfolio Remains Strong in Q3 Fiscal 2013
Credit Portfolio Remains Strong in Q3 Fiscal 2013 Net bad debt to US sales of 5.4% unchanged g from Q3 FY12 Collection rate of 12.0% 12 2% Q3 FY12 12.2% Other operating income $39.7 million $32 2 million Q3 FY12 $32.2 13
Slide 14: Investing for Growth – Capital Spending
Investing for Growth – Capital Spending Annual capital spending currently expected to range from $155 million - $160 million US net selling space up 10.5%, UK down 3.4% Projected Kay Kay Kay Ultra Jared Regionals US UK Signet store count Mall Off- Total Total Total Mall Jan 28, 28 2012 766 154 9
Slide 15: Q4 Fiscal 2013 Guidance
Q4 Fiscal 2013 Guidance EPS 13 weeks $1.98 - $2.15 14th week $(0.02) – $(0.03) $1 96 - $2.12 $1.96 $2 12 Ultra Stores $(0.01) - $(0.02) Q4 Fiscal 2013, 14 weeks $1.95 - $2.10 15
Slide 16: Q3 Fiscal 2013 Results
Q3 Fiscal 2013 Results Tuesday, November 20, 2012