Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q2 FY2013 Earnings Presentation
19 slides from Signet Jewelers's earnings presentation, Aug 23, 2012
Slide 1: Q2 Fiscal 2013 Results
Q2 Fiscal 2013 Results Thursday, August 23, 2012
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 1995. These statements statements, based upon management’s manageme
Slide 3: Q2 Fiscal 2013 Results Highlights
Q2 Fiscal 2013 Results Highlights Same store sales up 7 7.1% 1% US division up 8.2% UK division up 2.1% Operating margin of 13.0%, up 20 bpts Diluted earnings per share $0.85, up $0.09 or 11.8% $196.5 million share repurchases completed 3
Slide 4: US Performance
US Performance Sales Change in same Change in store sales total sales Q2 Fiscal 2013 Kay $418.6m 12.5% 13.9% Jared $222.4m 2.4% 4.0% R i Regionals l $60 9 $60.9m 3 1% 3.1% (1 3)% (1.3)% US division $701.9m 8.2% 9.2% Operating income income, net $117 3m $117.3m up 12 12.4% 4% Operating margin 16.7% u
Slide 5: US Merchandising Initiatives
US Merchandising g Initiatives Building on success Focused on delighting the customer Ready to win 5
Slide 6: Continuing Our Growth in Digital Sales
Continuing Our Growth in Digital Sales Enhanced Kay & Jared websites launch in October O t b Continued drive into social media and mobile capabilities Roll out of in-store sales technology 6
Slide 7: Ready to Win
Ready to Win Exciting new products Innovative new advertising campaigns Professional and well-trained sales teams 7
Slide 8: Strengthening Our Supply Chain
Strengthening Our Supply Chain Rio Ri Ti Tinto t sightholder 8
Slide 9: UK Performance
UK Performance S l Sales Change in Ch i Change in Ch i same store total sales sales at CER1 Q2 Fiscal 2013 H.Samuel $78.7m 0.1% (0.3)% Ernest Jones $73 3m $73.3m 4 4% 4.4% 3 2% 3.2% UK division $152.0m 2.1% 1.4% Operating income, net $(0.3)m Operating margin (0.2)% down 200 bpts 1. CER=Constant Exch
Slide 10: Ready to Win
Ready y to Win Exciting merchandise initiatives New concept stores Continued g growth in digital g sales New and improved advertising support for the business 10
Slide 11: Building for the Future
Building g for the Future Objective to deliver 10% plus operating margin by Fiscal 2015 in the UK Build B ild on market k t lleadership d hi Expand the brand portfolio Rationalize real estate portfolio p Restructure the operating costs 11
Slide 12: Q2 Fiscal 2013 Sales Performance
Q2 Fiscal 2013 Sales Performance US UK Signet g Sales Q2 Fiscal 2013 $m 701.9 152.0 853.9 Sales Q2 Fiscal 2012 $m 643.0 154.6 797.6 Change in sales % % % Change in same store sales 8.2 2.1 7.1 Change in store space, net 1.0 (0.7) 0.6 Change in total sales at constant 9.2 1.4 7.7 exchange rate1 Excha
Slide 13: Q2 Fiscal 2013 Reconciliation
Q2 Fiscal 2013 Reconciliation % of sales Operating Income Q2 Fiscal 2012 $102.3m 12.8% Gross margin movement $16.4m (0.6)% Selling, general & admin. expense movement $(15.8)m 0.1% Other operating income movement $8.0m 0.7% Operating Income Q2 Fiscal 2013 $110.9m 13.0% Net interest $(0.7)m Income bef
Slide 14: SG&A Reconciliation
SG&A Reconciliation $m % of Sales SG&A Q2 Fiscal 2012 224.5 28.2% Change in net advertising investment 8.3 (0.8)% St Store expenses 45 4.5 0 6% 0.6% Change in other items 3.0 0.3% SG&A Q2 Fiscal 2013 240 3 240.3 28 1% 28.1% 14
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights att July J l 28 28, 2012 Cash C h $237 $237.5 5 million illi Returning cash to shareholders $287 million share repurchases YTD $19 million dividends paid p Net accounts receivable $1,032.2 million Inventories $1 $1,312.8 312 8 million 15
Slide 16: Credit Portfolio Remains Strong
Credit Portfolio Remains Strong 8.0 15 0 15.0 7.0 6.0 12.0 50 5.0 Net bad 9.0 Average debt 4.0 monthly as % of total 3.0 6.0 collection rate % US sales 2.0 3.0 1.0 00 0.0 00 0.0 16
Slide 17: Investing for Growth – Capital Spending
Investing for Growth – C Capital S Spending Annual capital spending currently expected to range from $155 million - $165 million Projected store Kay Jared Regionals Total US UK Total count Signet January 28, 2012 920 183 215 1,318 535 1,853 Openings, 43 8 - 51 3 54 planned l d Closures, planned (1
Slide 18: Fiscal 2013 Guidance
Fiscal 2013 Guidance Q3 Fiscal 2013 low to mid single digit same store sales eps of $0.34 - $0.38 Q4 Fiscal 2013 - impact of 53rd week increase sales by approximately $50 million operating loss of $2 - $4 million 18
Slide 19: Q2 Fiscal 2013 Results
Q2 Fiscal 2013 Results Thursday, August 23, 2012