Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Bank of America Merrill Lynch Consumer Conference 2010
10 slides from Signet Jewelers's conference presentation, Mar 10, 2010
Slide 1: Competitive Advantages Reinforcing Sector Leadership
“Competitive Advantages Reinforcing Sector Leadership” March 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement (Private Securities Litigation Reform Act of 1995) This presentation include 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 as well as on assumptions m
Slide 3: Why Invest in Signet?
Why Invest in Signet? Ö Market leadership in US & UK Ö Gaining profitable market share in sector undergoing accelerated rationalization Ö Strong balance sheet and cash flow Ö Strengthening significant competitive advantages Ö Effective strategy in tough environment Ö Well positioned for economic rec
Slide 4: World's Largest Specialty Jeweler
World’s Largest Specialty Jeweler Group sales ~$3,300 million – 78% US / 22% UK Kay Jewelers - #1 mid market brand H.Samuel - #1 in UK Sales: about $1,500m Stores: 920 in 50 states Sales: about £250m Stores: 345 Jared - #1 Off-Mall “Category Killer” Ernest Jones - #1 UK upper middle market Sales: ab
Slide 5: Effective Strategy in Tough Market
Effective Strategy in Tough Market Ö Enhance position as strongest middle market specialty retail jeweler and gain share Ö capitalize on sustainable competitive advantages Ö benefit from competitors withdrawing capacity Ö Maximize profit & free cash flow Ö Use strong balance sheet as competitive adv
Slide 6: January 2010 Update
January 2010 Update Ö Same store sales down 0.6% for 48 weeks Ö US down 0.1%, UK down 2.2% Ö Expect income before tax of $222.5 million to $232.5 million Ö fiscal 2009: underlying $200.9 million(1) Ö Expect earnings per share of $1.76 to $1.84 Ö fiscal 2009: underlying $1.57 (1) Ö Net debt anticipat
Slide 7: Consistent Gains in US Market Share
Consistent Gains in US Market Share 1999 2004 2007 2008 2009 Signet 4.9% 7.5% 9.0% 9.0% 9.4% Zale(1,2,3) 6.4% 7.8% 6.5% 5.8% ~5.1% Tiffany(1) 2.8% 3.9% 4.9% 5.2% n.a. Blue Nile(1) 0.1% 0.6% 1.0% 0.9% 1.0% Finlay(1,2) nil nil 0.7% 1.1% Liquidated Friedman(1) 1.2% 1.5% ~1.0% Liquidated - Whitehall(1)
Slide 8: Strengths Driving Share Gains
Strengths Driving Share Gains Ö Excellence in customer service Ö staff training, development and incentivization programs Ö Significant brand equity and awareness Ö consistent high level of customer satisfaction Ö national TV advertising Ö High quality real estate Ö strict operational and financial
Slide 9: Developed Differentiated Ranges
Developed Differentiated Ranges 9
Slide 10: Outlook for Fiscal 2011
Outlook for Fiscal 2011 Ö Economic environment Ö better than 12 months ago, but still challenging, particularly in the UK Ö Operating strategy largely unchanged Ö focus on reinforcing competitive advantages Ö tight control of gross merchandise margin, costs and inventory Ö disciplined approach to in
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