Signet Jewelers Limited announced its results for the 13 weeks ended July 29, 2023 (second quarter Fiscal 2024). “Our team’s focus on the consumer enabled us to exceed our revenue and bottom-line commitments in the quarter while also advancing our strategic priorities. We remain confident in our ability to achieve our Fiscal 2024 guidance,” said Signet Chief Executive Officer Virginia C. Drosos.
“Our reimagined merchandise assortment and upcoming holiday season initiatives will leverage our investments in innovation, digital capabilities, and data analytics to widen our competitive advantages. We believe the upcoming multi-year recovery of engagements remains on track to begin in the fourth quarter of this year.”
“We’re reaffirming our full year revenue and non-GAAP operating income guidance today as we anticipate the current macro trends will continue and engagements will begin their recovery. Additionally, we are increasing our EPS guidance to reflect second quarter share repurchases,” said Joan Hilson, Chief Financial, Strategy and Services Officer.
“We expanded our margin accretive Services capacity this quarter, advancing our commitment to the jewelry craft, B2B capabilities, and bringing more repairs in house. This network optimization is enabled through integration of the Blue Nile Seattle facility and the acquisition of SJR National Repair. Our cost savings initiatives of $225 to $250 million are on track, and our core inventory is healthy at 20% below pre-pandemic levels.”
2Q Fiscal 2024 Highlights are, 1: Sales of $1.6 billion, down $141.3 million or 8.1% (down 8.2% on a constant currency basis) to Q2 of FY23. 2: Same store sales (SSS) down 12.0% to Q2 of FY23. 3: GAAP operating income of $90.2 million, down $96.6 million from Q2 of FY23. Q2 of FY24 includes $4.8 million for integration-related charges for Blue Nile. 4: Q2 of FY23 included $6.4 million related to the fair value adjustment of acquired inventory as well as acquisition-related charges.
Non-GAAP operating income of $102.7 million, down $90.5 million from Q2 of FY23. GAAP diluted earnings per share (EPS) of $1.38, compared to $2.58 in Q2 of FY23, including $0.09 in integration-related charges for Blue Nile. Q2 of FY23 included $0.11 in charges relating to the fair value adjustment of acquired inventory as well as acquisition-related charges.
Non-GAAP diluted EPS of $1.55, compared to $2.68 in Q2 of FY23. Cash and cash equivalents, at quarter end, of $690.2 million, compared to $851.7 million in Q2 of FY23, reflecting the acquisition of Blue Nile in Q3 of FY23 and payment of legal settlements in Q1 of FY24.
Year-to-date cash used in operating activities of $253.3 million, compared to cash used in first half of FY23 of $114.9 million, including approximately $200 million for the payment of legal settlements in the current year.
Repurchased $43.3 million, or approximately 0.7 million shares, during the second quarter.
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