Signet Jewelers Limited, the world’s largest retailer of diamond jewelry, today announced its results for the 14 weeks (4Q, FY 2024) and 53 weeks (FY 2024) ended February 3, 2024.
“Thank you to our Signet team for once again delivering on our expectations and successfully navigating a challenging quarter and year for the industry. We drove gross margin expansion of 160 basis points and sustained average transaction value this quarter by executing on our strategy of building brand equity, customer experience innovation, and accelerated sell through on product newness as offsets to heavy discounting by competitors,” said Signet Chief Executive Officer Virginia C. Drosos.
“As we look to Fiscal 2025, we are expecting sequential same store sales improvement over the year as engagements gradually recover. We believe we’re positioned to win new customers through our marketing personalization, growing consumer inspired product newness, and aggressive expansion of our service business.”
“For the fourth year in a row, our flexible operating model generated over $600 million in free cash flow in Fiscal 2024, excluding non-recurring legacy legal settlements, led by agile inventory management and cost discipline.
Fueled by robust cash conversion, we are raising our share buyback program from approximately $650 million to $850 million, increasing our common dividend, and maintaining ample financial capacity to address maturities this fiscal year,” said Joan Hilson, Chief Financial-Strategy & Services Officer. “Our Fiscal 2025 guidance reflects the beginning of the three-year engagement recovery, investments in our strategic initiatives, and continuing cost diligence to drive operating income, including $150 million to $180 million in cost savings this year.”
According to the Fourth Quarter Fiscal 2024 Key Highlights,
1: Total sales of $2.5 billion, down $168.6 million or 6.3% (down 6.6% on a constant currency basis) to Q4 of FY23.This includes $103.2 million of sales from the Company’s 53rd week, partially offset by approximately $25 million from lost sales contribution from U.K. prestige watch locations that were sold.
2: Same store sales down 9.6% to last year.
3: Cash and cash equivalents, at year-end, of $1.4 billion, up approximately $212 million from Q4 of FY23. Year-to-date cash from operating activities for Fiscal 2024 of $546.9 million, compared to $797.9 million in Fiscal 2023, primarily due to lower full year income and legal settlements, partially offset by improvements in working capital.
4: Repurchased $21.8 million, or approximately 246,000 shares, during the fourth quarter.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
