Yahoo Finance

• Revenue: Down 6% year-over-year, but finished ahead of updated guidance.

• Same-Store Sales: Down 1.1%.

• Gross Margin: Adjusted gross margin of $1 billion or 42.6% of sales, down 70 basis points from last year.

• SG&A Expenses: Adjusted expense down $32 million to $638 million; SG&A rate up 30 basis points.

• Adjusted Operating Income: $356 million for the quarter.

• Adjusted EPS: $6.62, nearly in line with last year.

• Inventory: Ended the year at $1.9 billion, roughly flat to last year.

• Free Cash Flow: $438 million, approximately 88% cash conversion of adjusted operating income.

• Dividend: Quarterly dividend raised by 10% to $0.32 per share.

• Total Liquidity: Ended the year with $1.7 billion.

• Guidance - Q1 Sales: Expected between $1.5 billion to $1.53 billion.

• Guidance - Q1 Adjusted Operating Income: Expected between $48 million to $60 million.

• Guidance - FY Sales: Expected between $6.53 billion to $6.8 billion.

• Guidance - FY Adjusted Operating Income: Expected between $420 million to $510 million.

• Guidance - EPS: Expected in the range of $7.31 to $9.10 per diluted share.

• Warning! GuruFocus has detected 4 Warning Sign with SIG.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Signet Jewelers Ltd (NYSE:SIG) reported positive same-store sales in January and quarter-to-date, driven by quick adjustments in inventory and assortment gaps.

• The company is launching a transformative strategy called 'Grow Brand Love' to accelerate growth by focusing on brand loyalty, style innovation, and captivating customer experiences.

• Signet Jewelers Ltd (NYSE:SIG) plans to modernize its go-to-market strategy, creating clear brand distinctions and leveraging in-house design capabilities for faster market releases.

• The company is centralizing its sourcing practices to leverage buying power and improve agility, aiming for greater transparency and competitive pricing.

• Signet Jewelers Ltd (NYSE:SIG) is realigning its real estate portfolio, planning to close underperforming stores and reposition others to optimize sales transference and reduce mall revenue penetration.

Negative Points

• Revenue for the quarter was down 6% compared to last year, reflecting challenges in key gifting price points and a softer fashion performance.

• The company experienced a decline in same-store sales by 1.1%, with a larger gap due to the cycling of the 53rd week in the prior year.

• Adjusted gross margin decreased by 70 basis points, impacted by fixed cost leverage and year-end adjustments in digital brands.

• Signet Jewelers Ltd (NYSE:SIG) anticipates a measured consumer environment, with guidance reflecting potential variability in consumer spending.

• The company is undergoing a significant reorganization, including a 30% reduction in senior leadership, which may pose challenges in execution and transition.