Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q2 FY2014 Earnings Presentation
17 slides from Signet Jewelers's earnings presentation, Aug 29, 2013
Slide 1: Fiscal 2014 Second Quarter Results
Every kiss begins with Kay.® Fiscal 2014 Second Quarter Results Thursday, August 29, 2013 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: Second Quarter Fiscal 2014 Results Highlights
Second Quarter Fiscal 2014 Results Highlights Same store sales up 3.6% US division up 4.9% UK division down 2.4% Operating income $105.5 million Diluted earnings per share $0.84 Diluted earnings per share excluding Ultra $0.90 3
Slide 4: US Performance
US Performance Change in same Change in total Second Quarter Fiscal 2014 Total sales store sales¹ sales Kay $427.9m 5.8% 2.2% Jared $232.2m 5.5% 4.4% Regionals $51.5m (4.6)% (15.4)% US division excluding Ultra $711.6m 4.9% 1.4% Ultra² $29.5m — 4.2%² US division including Ultra $741.1m 4.9% 5.6% US d
Slide 5: Performance Drivers
Performance Drivers ® ® Customer experience Merchandising initiatives Marketing investment Multi-channels Every kiss begins with Kay® 5
Slide 6: Outlet Strategy Update
Outlet Strategy Update Comprehensive outlet strategy Integration of acquisition on plan Stores converted Field team trained Information systems integrated In-house credit program rolled-out Merchandise mix transitioning 6
Slide 7: UK Performance
UK Performance Change Change Change in same in total in total Total store sales at sales as sales sales¹ CER² reported Second Quarter Fiscal 2014 H.Samuel $72.6m (2.4)% (5.3)% (7.8)% Ernest Jones $66.5m (2.4)% (6.9)% (9.3)% UK division $139.1m (2.4)% (6.1)% (8.5)% Operating loss $(0.8)m Operating ma
Slide 8: Ready to Win
Ready to Win Exciting new products Bridal: Leo Artisan; Neil Lane Bridal new styles, settings and collections Artistry and Vivid colored diamonds assortment expansion LeVian: expanding successful styles into new colors Open Hearts Wave Digital ecosystem initiatives Kayoutlet.com Enha
Slide 9: Second Quarter Fiscal 2014 Sales Performance
Second Quarter Fiscal 2014 Sales Performance US excluding Ultra Ultra¹ US UK Total Sales Q2 2014 $m 711.6 29.5 741.1 139.1 880.2 Sales Q2 2013 $m 701.9 — 701.9 152.0 853.9 Change in sales % % % % % Change in same store sales²,³ 4.9 — 4.9 (2.4) 3.6 Non-same store sales, net³,⁴ (3.5) 4.2 0.7 (3.7) — C
Slide 10: Second Quarter Fiscal 2014 Reconciliation
Second Quarter Fiscal 2014 Reconciliation Signet % of sales Operating Income Q2 2013 $110.9m 13.0% Gross margin movement $(1.5)m (1.2)% Selling, general & admin. expense $(10.2)m (0.4)% movement Other operating income movement $6.3m 0.6% Operating Income Q2 2014 $105.5m 12.0% Diluted earnings per sh
Slide 11: SG&A Bridge
SG&A Bridge ( ) = decrease $m % of Sales SG&A Q2 Fiscal 2013 240.3 28.1% Change in US net advertising investment (1.3) Change in US store expenses and other 0.9 items¹ Change in UK (2.9) Ultra² 13.5 SG&A Q2 Fiscal 2014 250.5 28.5% 1. Other items primarily reflects investment in IT, credit infrastruc
Slide 12: Authorized Share Repurchase Plan
Authorized Share Repurchase Plan Shares Total Cost Average Price Second Quarter FY2014 0.4m $25.0m $66.74 June 2013 Program First Quarter FY2014 0.7m $50.1m $66.92 October 2011 Program Total FY2014 1.1m $75.1m 12
Slide 13: Second Quarter Fiscal 2014 Inventory
Second Quarter Fiscal 2014 Inventory Ending inventory was $1,417.7 million, up $104.9 million or 8.0%, which includes: Ultra inventory of $41.7 million Rough diamond purchases of $32.3 million Excluding these items, inventory increased 2.4% Inventory is well positioned for the holiday seas
Slide 14: Credit Statistics
Credit Statistics Second Quarter Fiscal 2014 Fiscal 2013 Accounts receivable, net $1,152.1m $1,032.2m Credit Participation – Excluding Ultra 60.4% 59.4% Credit Participation – Including Ultra 59.1% 59.4% Average monthly collection rate 11.9% 12.1% Year to Date Fiscal 2014 Fiscal 2013 Accounts receiv
Slide 15: Credit Statistics
Credit Statistics Second Quarter Fiscal 2014 Fiscal 2013 Net bad debt ($36.5)m ($31.6)m As a % of US sales 4.9% 4.5% Other operating income, net $46.3m $40.0m As a % of Signet sales 5.3% 4.7% Net Impact $9.8m $8.4m Year to Date Fiscal 2014 Fiscal 2013 Net bad debt ($57.8)m ($50.0)m As a % of US sale
Slide 16: Financial Guidance
Financial Guidance Third Quarter Fiscal 2014 Same store sales Low-single-digits Diluted earnings per share – estimated $0.37 - $0.43 Fiscal 2014 Capital spending $180 million - $195 million New Kay and Jared stores 75 – 85 Total US Total UK Total Fiscal 2013 1,443 511 1,954 Openings planned 75-85 0-
Slide 17: Every kiss begins with Kay. Fiscal 2014 Second Quarter Results
Every kiss begins with Kay.® Fiscal 2014 Second Quarter Results Thursday, August 29, 2013 17