Signet Jewelers tumbles by 9.3% in 1Q
Signet Jewelers Limited announced its results for the 13 weeks ended April 29, 2023 1Q FY 2024). “Our Signet team delivered our revenue and bottom-line commitments in Q1 despite macroeconomic headwinds that worsened late in the quarter. In line with our predictions, there were fewer engagements in the quarter resulting from Covid’s disruption of dating three years ago,” said Signet Chief Executive Officer Virginia C. Drosos.
“As we look to the balance of the year, we’re leaning in to leverage our differentiated capabilities, widen our competitive advantages, and drive market share gains. We are proactively addressing the dynamic retail climate, leveraging our team’s agility and flexible operating model to raise our cost savings target by up to $150 million while maintaining strategic investments.”
“Our updated Fiscal 2024 guidance reflects a recent deceleration of trends that have persisted into the second quarter, including a softer than expected Mother’s Day, increasing macro-economic pressures on consumers at more price points, and deeper competitive discounting,” said Joan Hilson, Chief Financial, Strategy and Services Officer.
“We built our fortressed balance sheet to strategically invest during periods of disruption. Our growing capabilities enable Signet to navigate this challenging macro environment, position us for success when the bridal recovery begins, and maintain strong margins while continuing to return capital to shareholders.”
According to the first quarter fiscal 2024 highlights, sales of $1.7 billion, down $170.3 million or 9.3% (down 8.7% on a constant currency basis) to Q1 of FY23. Same store sales (SSS) down 13.9% to Q1 of FY23. GAAP operating income of $101.7 million, up from $0.2 million in Q1 of FY23.
Q1 of FY24 includes $7.8 million for integration-related charges for Blue Nile. Q1 of FY23 included $190 million for settlement of a previously disclosed litigation matter.
Second quarter and Full year Fiscal 2024 Guidance forecasted non-GAAP operating income and diluted EPS provided below excludes potential non-recurring charges, such as asset impairments or integration-related costs associated with the acquisition of Blue Nile.
However, given the potential impact of non-recurring charges to the GAAP operating income and diluted EPS, we cannot provide forecasted GAAP operating income or diluted EPS or the probable significance of such items without unreasonable efforts. As such, we do not present a reconciliation of forecasted non-GAAP operating income and diluted EPS to corresponding forecasted GAAP amounts.
Signet’s second quarter and full year Fiscal 2024 guidance for sales, operating income and diluted EPS is provided on a non-GAAP basis.
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