Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q1 FY2014 Earnings Presentation
16 slides from Signet Jewelers's earnings presentation, May 23, 2013
Slide 1: Fiscal 2014 First Quarter Results
Every kiss begins with Kay.® Fiscal 2014 First Quarter Results Thursday, May 23, 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: First Quarter Fiscal 2014 Results Highlights
First Quarter Fiscal 2014 Results Highlights Same store sales up 6.4% US division up 8.1% UK division down 2.3% Operating income $142.8 million, up 10.4% Diluted earnings per share $1.13, up 17.7% 3
Slide 4: US Performance
US Performance Change in same Change in total First Quarter Fiscal 2014 Total sales store sales sales Kay $506.0m 10.2% 11.8% Jared $254.6m 6.0% 9.9% Regionals $64.0m 0.5% (4.9)% US division excluding Ultra $824.6m 8.1% 9.7% Ultra $34.0m — 4.6%¹ US division including Ultra $858.6m 8.1% 14.3% US divi
Slide 5: Performance Drivers
Performance Drivers Customer experience ® ® Merchandising initiatives Marketing investment Multi-channels Every kiss begins with Kay® 5
Slide 6: UK Performance
UK Performance Change Change in same Change in in total Total store total sales sales as sales sales at CER¹ reported First Quarter Fiscal 2014 H.Samuel $71.7m (4.0)% (7.0)% (10.5)% Ernest Jones $63.3m (0.2)% (3.8)% (7.5)% UK division $135.0m (2.3)% (5.5)% (9.1)% Operating loss $(4.1)m Operating mar
Slide 7: Well-Positioned to Achieve Fiscal 2014 Financial Objectives
Well-Positioned to Achieve Fiscal 2014 Financial Objectives Excellent first quarter results Consistent ability to execute initiatives 7
Slide 8: First Quarter Fiscal 2014 Sales Performance
First Quarter Fiscal 2014 Sales Performance US excluding Ultra Ultra¹ US UK Total Sales Q1 2014 $m 824.6 34.0 858.6 135.0 993.6 Sales Q1 2013 $m 751.5 — 751.5 148.5 900.0 Change in sales % % % % % Change in same store sales 8.1 — 8.1 (2.3) 6.4 Non-same store sales, net² 1.6 4.6 6.2 (3.2) 4.7 Change
Slide 9: Reconciliation
First Quarter Fiscal 2014 Reconciliation Signet % of sales Operating Income Q1 2013 $129.4m 14.4% Gross margin movement $29.1m (0.8)% Selling, general & admin. expense $(22.5)m 0.5% movement Other operating income movement $6.8m 0.3% Operating Income Q1 2014 $142.8m 14.4% Diluted earnings per share
Slide 10: SG&A Bridge
SG&A Bridge ( ) = decrease $m % of Sales SG&A Q1 Fiscal 2013 264.5 29.4% Change in US net advertising investment (2.4) Change in US store expenses 8.6 Change in other items* 6.4 Change in UK (2.7) Ultra 12.6 SG&A Q1 Fiscal 2014 287.0 28.9% *Other items primarily reflects investment in IT, credit inf
Slide 11: Authorized Share Repurchase Completed
Authorized Share Repurchase Completed Shares Average Price Total Cost First Quarter FY2014 0.7m $66.92 $50.1m Life of Program 7.4m $47.10 $350.0m 11
Slide 12: First Quarter Fiscal 2014 Inventory
First Quarter Fiscal 2014 Inventory Ending inventory of $1,426.4 million, up $91.4 million or 6.8% Ultra Rough diamond purchases New bridal initiatives New store growth Best inventory management in specialty jewelry retail 12
Slide 13: Credit Statistics
Credit Statistics First Quarter Fiscal 2014 Fiscal 2013 Accounts receivable, net $1,157.5m $1,025.1m Average monthly collection rate 13.4% 13.8% Net bad debt ($21.3)m ($18.4)m As a % of US sales 2.5% 2.5% Other operating income, net $47.0m $40.2m As a % of Signet sales 4.8% 4.5% 13
Slide 14: Financial Guidance
Financial Guidance As referenced in the 8-K filing on January 15, 2013, the Company continues to expect the shift of Mother’s Day sales this year partly into the first quarter to impact second quarter sales and earnings performance. Second Quarter Fiscal 2014 Same store sales low-to-mid single-dig
Slide 15: Financial Guidance - Capital
Financial Guidance - Capital Fiscal 2014 Capital spending $180 million - $195 million New Kay and Jared stores 70 – 80 Total US Total UK Total Fiscal 2013 1,443 511 1,954 Openings planned 70-80 0-2 70-82 Closures planned (35-40) (25-30) (60-70) Fiscal 2014 1,473-1,488 481-488 1,954-1,976 15
Slide 16: Every kiss begins with Kay. Fiscal 2013 First Quarter Results
Every kiss begins with Kay.® Fiscal 2013 First Quarter Results Thursday, May 23, 2013 16