Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q1 FY2015 Earnings Presentation
15 slides from Signet Jewelers's earnings presentation, May 22, 2014
Slide 1: Fiscal 2015 First Quarter Results
Fiscal 2015 First Quarter Results Thursday, May 22, 2014 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: First Quarter Fiscal 2015 Financial Results
First Quarter Fiscal 2015 Financial Results Same store sales up 3.3% US division up 3.2%. Kay +4.2% and Jared +2.3% UK division up 4.1%. Ernest Jones +5.0% and H.Samuel +3.3% Operating income $150.7 million, up 5.5% Diluted earnings per share $1.20, up 6.2% Adjusted operating income $159
Slide 4: US Performance
US Performance Change in same Change in total First Quarter Fiscal 2015 Total sales store sales¹ sales Kay $562.4m 4.2% 7.3% Jared² $280.0m 2.3% 7.9% National brands $842.4m 3.6% 7.5% Regional brands² $61.1m (2.1)% (16.9)% US division $903.5m 3.2% 5.4% US division Operating income $166.3m up 8.8% Op
Slide 5: US Performance Drivers
US Performance Drivers Customer experience ® ® Merchandising initiatives Marketing investment Multi-channels 5
Slide 6: UK Performance
UK Performance Change Change Change in same in total in total Total store sales at sales as First Quarter Fiscal 2015 sales sales¹ CER² reported H.Samuel $78.8m 3.3% 0.9% 9.9% Ernest Jones $72.9m 5.0% 5.8% 15.2% UK division $151.7m 4.1% 3.2% 12.4% Operating income $0.0m Operating margin 0.0% up 300
Slide 7: Well-Positioned to Achieve Fiscal 2015 Objectives
Well-Positioned to Achieve Fiscal 2015 Objectives Very strong first quarter results Consistent ability to execute strategies: Maximize mid-market Best in bridal Best-in-class digital ecosystem Expand our footprint People, purpose and passion 7
Slide 8: First Quarter Fiscal 2015 Sales Performance
First Quarter Fiscal 2015 Sales Performance US Other¹ UK Total Sales Q1 2015 $m 903.5 0.9 151.7 1,056.1 Sales Q1 2014 $m 857.2 1.4 135.0 993.6 Change in sales % % % % Change in same store sales² 3.2 — 4.1 3.3 Non-same store sales, net³ 2.2 NM (0.9) 1.7 Change in total sales at constant exchange 5.4
Slide 9: Reconciliation
First Quarter Fiscal 2015 Reconciliation Signet % of sales Operating income Q1 2014 $142.8m 14.4% Gross margin movement $24.4m 0.1% Selling, general & admin. expense $(23.5)m (0.5)% movement Other operating income movement $7.0m 0.3% Operating income Q1 2015 $150.7m 14.3% Pre-acquisition transaction
Slide 10: SG&A Bridge
SG&A Bridge ( ) = decrease % of sales SG&A Q1 Fiscal 2014 $287.0m 28.9% Change in US $13.0m Change in UK $1.2m Pre-acquisition transaction costs $8.4m Corporate $0.9m SG&A Q1 Fiscal 2015 $310.5m 29.4% Pre-acquisition transaction costs $(8.4)m Adjusted SG&A Q1 Fiscal 2015 $302.1m 28.6% 10
Slide 11: Inventory
First Quarter Fiscal 2015 Inventory Ending inventory was $1,523.9 million, up $97.5 million or 6.8% compared to Q1 Fiscal 2014 UK inventory foreign currency translation up $22.3 million Excluding foreign currency impact, inventory increased 5.3% Inventory increases include: New stores inve
Slide 12: Credit Metrics
Credit Metrics First Quarter Fiscal 2015 Fiscal 2014 Accounts receivable, net $1,308.2m $1,157.5m Credit participation – US 58.1% 57.7%¹ US average monthly collection rate 13.2% 13.4% 1. Fiscal 2014 excludes the sales from Ultra as Ultra did not offer credit financing until June 2013. 12
Slide 13: Credit Statistics
Credit Statistics First Quarter Fiscal 2015 Fiscal 2014 Net bad debt ($22.3)m ($21.3)m As a % of US sales 2.5% 2.5% Other operating income, net $54.0m $47.0m As a % of Signet sales 5.1% 4.8% Net Impact $31.7m $25.7m 13
Slide 14: Financial Guidance
Financial Guidance Second Quarter Fiscal 2015 Same store sales 3% to 5% Adjusted diluted earnings per share $0.95 to $1.01 Acquisition Costs ($0.15) to ($0.13) Financing Costs ($0.10) Diluted earnings per share $0.70 to $0.78 Fiscal 2015 Capital spending $180 million - $200 million New Kay and Jared
Slide 15: Fiscal 2015 First Quarter Results
Fiscal 2015 First Quarter Results Thursday, May 22, 2014 15