Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q3 FY2016 Earnings Presentation
14 slides from Signet Jewelers's earnings presentation, Nov 24, 2015
Slide 1: Fiscal 2016 Third Quarter Results
Fiscal 2016 Third Quarter Results Tuesday, November 24, 2015
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 2016 Highlights
Q3 Fiscal 2016 1. Same store sales growth in-line with guidance • Same store sales +3.3%. Total sales +3.3%. • Consistently outperforming US and UK jewelry industries 2. Significant investments made in store operations 3. Third quarter investments paying off 4. Top line results translating into stro
Slide 4: Highlights
Q3 Fiscal 2016 Highlights • Bridal and select diamond fashion jewelry • Marketing campaigns • Kay Jewelers stores • Piercing Pagoda – gold; piercings • Partially offset by Jared and Zales
Slide 5: Ever Us
Ever Us • Biggest new launch in Signet history • Reinvigorates jewelry industry innovation • Marketing tagged with multiple Signet store brands • Strategy around line extensions to drive long term momentum and financial benefit • Omni-channel marketing approach
Slide 6: Fourth Quarter Initiatives
Fourth Quarter Initiatives • Merchandising • Ever Us • Vera Wang Love rollout • Star Wars collection • Miracle Links • Marketing • Greater advertising weights • Application of customer segmentation learnings • New Zale and Jared creative campaigns • Jared semi-annual sales events underway • Field op
Slide 7: Summary
Summary • Third quarter. Solid sales, net synergies, significant EPS growth, effective Q4 preparation executed. • Well-positioned for fourth quarter. Several initiatives in many functional areas.
Slide 8: Q3 Fiscal 2016 Sales Performance
Q3 Fiscal 2016 Sales Performance Change in Total sales Exchange same store at constant translation Change in Total sales sales1 exchange rate2 impact2 total sales (in millions) Kay 7.1% 9.0% — 9.0% $ 462.9 Jared -2.7% 2.2% — 2.2% $ 232.5 Regional brands 0.3% -6.8% — -6.8% $ 38.1 Sterling Jewelers di
Slide 9: Non-GAAP Reconciliation
Non-GAAP Reconciliation (in millions of $ except per share data) Adjustments Adjusted Signet Purchase Accounting Transaction Costs Signet Sales 1,222.6 (6.2) — 1,216.4 Cost of goods sold (848.8) 0.1 — (848.7) Gross margin 373.8 (6.1) — 367.7 SGA (387.6) 2.4 (9.8) (395.0) Other operating income, net
Slide 10: Q3 Fiscal 2016 Adjusted Income Statement Highlights
Q3 Fiscal 2016 Adjusted Income Statement Highlights¹ $m % of Adjusted Sales Adjusted operating income Q3 2015 $35.7 3.0% Adjusted gross margin $373.8 30.6% Adjusted selling, general & admin. ($387.6) (31.7)% Other operating income $60.9 5.0% Adjusted operating income Q3 2016 $47.1 3.9% Adjusted earn
Slide 11: Q3 Fiscal 2016 Inventory
Q3 Fiscal 2016 Inventory • Ending inventory $2,727.0 million, up $52.4 million or 2.0%, driven by: • Total sales growth exceeded inventory growth by 130 bps • Store growth impact partially offset by improved inventory management • Inventory clean and well-positioned for fourth quarter
Slide 12: Credit Metrics
Credit Metrics Year-to-Date Fiscal 2016 Fiscal 2015 Accounts receivable, net (in millions) $1,451.5 $1,292.1 Sterling credit participation 63.0% 61.7% Sterling average monthly collection rate 11.7% 12.1% Third Quarter Net bad debt (in millions) ($53.0) ($41.7) Other operating income (in millions) $6
Slide 13: Financial Guidance
Financial Guidance Fourth Quarter Fiscal 2016 Same store sales 3.5% to 5.0% EPS $3.30 to $3.50 Adjusted EPS $3.40 to $3.60 Fiscal 2016 Effective tax rate 28% to 29% Capital expenditures $260M to $280M (reduced from $275M to $325M) Net selling square footage growth 2% to 3% Net synergies $30M to $35M
Slide 14: Y ZALES
Y ZALES ‘SAMUEL PE©PLES JEWELLER ERNEST JONES ———=—_—— CANADA'S 1 DIAMOND STORE LOVE & LIFE I JAR Of Jewelry Pago da SIGNET JEW ELER S