Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q3 2018 Earnings Presentation
13 slides from Signet Jewelers's earnings presentation, Nov 22, 2017
Slide 1: Third Quarter Fiscal 2018 Results
Third Quarter Fiscal 2018 ResultsTuesday, November 21, 2017
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: Key Takeaways
Key Takeaways Same store sales (“SSS”) declined 5.0%, including an estimated 120 bps impact from weather-related incidents and systems and process disruptions associated with outsourcing of credit portfolioTotal sales were $1.2 billion, down 2.5% year-over-yearContinued to advance strategic initiati
Slide 4: Progress on Strategic Priorities
Progress on Strategic Priorities 4 Streamlined promotional strategies and customer targetingEnhanced Fashion category assortmentIncreased focus on digital and social media marketingLaunched Data Management PlatformBuilding first-ever Customer Data Analytics team Customer First Strong eCommerce growt
Slide 5: Holiday Season Business Drivers
Holiday Season Business Drivers 5 Addressing Last Year’s Gaps:Improved Sterling eCommerce platform performance Strengthened assortment in $200-$700 price rangeInnovation and Newness across Product Assortment:Interwoven – targeted especially for younger couplesStrong trend identification and assortme
Slide 6: Third Quarter Sales Performance
Third Quarter Sales Performance 6 Notes: 1) For stores open for at least 12 months. 2)For stores not open in the last 12 months. 3) Includes 47 days of R2Net sales as if R2Net had been part of Signet in the same period prior year. Same Store Sales %1 Non-same store sales %, net2 Total sales % at con
Slide 7: Income Statement Highlights (Percentage of Sales)
Income Statement Highlights (Percentage of Sales) 3Q Fiscal 2018 3Q Fiscal 2017 Difference Gross margin 27.8% 29.5% (170) bps SG&A 32.5% 32.6% (10) bps Credit transaction, net (1.1%) - (110) bps Other operating income 6.3% 5.8% 50 bps Operating income 0.5% 2.7% (220) bps Earnings (loss) per share ($
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Prudent working capital managementInventory $2.47 billion, down 6.9%, while Q3 total sales decreased 2.5%Net accounts receivable $640 million, compared to $1.6 billion LY, reflecting sale of prime accounts receivable of $960 millionFree cash flow YTD $1.3 billion, up $1.2
Slide 9: Sterling Division Credit and Allowance Metrics
Sterling Division Credit and Allowance Metrics 9 (in millions except percentages) 3Q FY18 3Q FY17 Difference Credit sales $402 $476 ($73) Credit participation 59.6% 66.8% (720) bps Accounts receivable, gross $707 $1,679 ($972) Average monthly payment collection rate 10.2% 10.6% (40) bps Interest inc
Slide 10: Financial Guidance
Financial Guidance 10 1) Includes net impact of outsourcing the credit portfolio, net transaction costs including gain on sale of prime A/R, CEO separation costs, transaction costs related to R2Net acquisition and share repurchases associated with the credit transaction proceeds. Fiscal 2018 Prior R
Slide 11: Appendix
Appendix
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures 12 (in millions) 39 Weeks EndedOctober 28, 2017 October 29, 2016 Net Cash Provided by Operating Activities $1,482.3 $360.9 Purchase of Property, Plant and Equipment ($166.1) ($195.6) Free Cash Flow $1,316.2 $165.3 Free cash flow is a non-GAAP measure defined as the net ca
Slide 13: Signet Jewelers Ltd.
Signet Jewelers Ltd.