Signet Jewelers announced its results for the 13 weeks ended May 4, 2024 (first quarter-1Q, Fiscal 2025).
“Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May,” said Signet Chief Executive Officer Virginia C. Drosos. “Compared to the previous quarter, we increased North America engagement unit sales by 400 basis points excluding Digital banners.
Further, customers continue to respond well to our new product offerings and loyalty program, reflected in a meaningful improvement in comparable sales for Fashion since February. We expect continued momentum in the second quarter, leading to a positive same store sales inflection in the second half of Fiscal 25.”
“Our flexible operating model continues to work as designed, leading to adjusted merchandise margin expansion of 100 basis points, continued working capital optimization, and improved free cash flow over the prior year,” said Joan Hilson, Chief Financial, Strategy & Services Officer. “Signet’s strong balance sheet provides a clear line of sight to redeeming all convertible preferred shares. We are reaffirming our increased full year guidance.”
First Quarter Fiscal 2025 Highlights are,
1: Sales of $1.5 billion, down $157.2 million or 9.4% remained down 9.6% on a constant currency basis, to Q1 of FY24. Same store sales down 8.9% to Q1 of FY24.
2: Operating income of $49.8 million, down $51.9 million from Q1 of FY24.
3: Adjusted operating income of $57.8 million, down $48.7 million from Q1 of FY24. 4: Diluted loss per share of $0.90, compared to a diluted earnings per share $1.79 in Q1 of FY24. The current year diluted loss per share reflects the impact of a deemed dividend of $85.1 million related to the redemption of half of the preferred shares in Q1.
4: Cash and cash equivalents, at quarter end, of $729.3 million, compared to $655.9 million in Q1 of FY24.
Year-to-date cash used in operating activities of $158.2 million, compared to $381.8 million in Q1 of FY24.
