NYSE$SIG

Signet Jewelers LTD · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong Q2 2022 results, exceeding expectations and raising FY22 guidance.

Signet Jewelers reported strong second quarter performance with total sales of $1.8 billion, a significant increase compared to the previous year. Same store sales were up 97.4%, and the company raised its guidance for the year, reflecting business strength and confidence in its growth strategy.

  • Total sales were $1.8 billion, an increase of more than $900 million to Q2 of FY21 and more than $423 million to Q2 of FY20.
  • Same store sales up 97.4% to Q2 of FY21 and up 38.1% to Q2 of FY20.
  • GAAP operating income of $225.4 million, up from a loss of $89.7 million in Q2 of FY21 and a loss of $22.4 million in Q2 of FY20.
  • Non-GAAP diluted EPS of $3.57, an increase from a loss per share of $1.13 in Q2 of FY21 and EPS of $0.51 in Q2 of FY20.

Headline financials

Total Revenue

$1.79B

Previous: $888M+101.4%
EPS (adj)

$3.57

Previous: -$1.13+415.9%
Same-store sales growth

97.4%

Previous: -31.3%+411.2%
Capital Expenditures

-$32.2M

Previous: -$23.6M-36.4%
Free Cash Flow

$192M

Previous: -$105M+282.7%
Net Income

$225M

Previous: -$81.7M+374.9%
Operating Income

$225M

Previous: -$89.7M+351.3%
Gross Profit

$718M

Previous: $224M+219.9%
Cash & Equivalents

$1.57B

Previous: $1.2B+30.7%
Total Assets

$6.31B

Previous: $6.58B-4.0%
Stock-Based Comp

$17.5M

Previous: $4.9M+257.1%

Revenue & EPS history

Signet · Revenue · Quarterly

$1.79B

Q2 2022+101.4%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Signet · $2.15B total across 3 segments · Q4 2020

  • North America
    $1.95B
  • International
    $186M
  • Other
    $13.3M

Forward guidance

Signet expects total revenue between $1.26 to $1.31 billion and same store sales between (3%) to 1% for the third quarter of fiscal 2022. The company expects total revenue between $6.80 to $6.95 billion and same store sales between 30% to 33% for the full fiscal year 2022.

Tailwinds

  • Continued uncertainty regarding macroeconomic factors exists.
  • Signet continues to expect a shift of consumer discretionary spending away from the jewelry category toward experience-oriented categories within the second half of the fiscal year.
  • The Company has increased its gross cost savings expectations for Fiscal 2022 to $85 million to $105 million from $75 million to $95 million.
  • Signet has narrowed its planned Fiscal 2022 capital expenditures to a range of $190 million to $200 million from $175 million to $200 million.
  • Signet's efforts to mitigate supply chain disruption amongst the pandemic impact on India have been effective thus far.

Headwinds

  • Magnitude and duration of COVID-19 resurgence through the Delta variant in key trade areas
  • Extended duration of heightened unemployment
  • Supply chain disruptions
  • Pricing environment changes (including, but not limited to, materials, labor, fulfillment and advertising costs)
  • Government support policies which can impact consumers’ ability to spend, particularly in discretionary categories like jewelry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.4%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.8%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+27.6%

Q3 2023

Best reaction

-30.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+13.0%-9.4%-0.3%
Q3 2026-7.2%-13.3%-13.4%
Q2 2026+2.2%+6.4%+11.9%
Q1 2026+12.2%+16.3%+25.8%
Q4 2025+17.3%+26.9%+14.7%
Q3 2025-7.0%-14.1%-21.6%
Q2 2025+16.7%+19.8%+23.1%
Q1 2025-19.6%-15.8%-18.8%
Q4 2024-12.2%-7.2%-6.8%
Q3 2024+12.4%+14.7%+16.5%
Q2 2024+10.0%+4.3%+0.5%
Q1 2024-13.9%-15.7%-1.4%
Q4 2023+8.0%+10.0%+9.0%
Q3 2023+27.6%+18.1%+16.1%
Q2 2023-15.6%-18.2%-12.5%
Q1 2023-0.9%-1.8%-10.5%
Q4 2022+3.1%+6.4%-0.2%
Q3 2022-9.1%-3.9%-6.4%
Q2 2022+3.3%-3.3%+1.1%
Q1 2022+22.5%+21.6%+25.5%
Q4 2021+2.7%-8.8%+6.9%
Q3 2021-1.8%-5.1%-8.5%
Q2 2021+3.7%-3.7%+4.9%
Q1 2021-27.2%-32.9%-40.1%
Q4 2020+7.8%-12.0%+3.8%
Q3 2020+23.6%+24.9%+14.4%
Q2 2020+27.5%+53.0%+47.6%
Q1 2020+1.6%+2.0%-10.9%
Q4 2019+2.4%-6.1%-16.3%
Q3 2019-22.9%-30.7%-30.7%
Q2 2019+17.5%+15.6%+20.6%
Q1 2019+22.1%+28.0%+33.6%
Q4 2018-21.6%-17.6%-19.4%
Q3 2018-30.1%-34.3%-26.5%
Q2 2018+20.8%+21.0%+24.1%
Q1 2018-9.6%-12.2%+7.1%
Q4 2017+8.4%+5.3%+5.9%
Q3 2017+5.6%+4.7%+5.1%
Q2 2017-15.5%-16.3%-17.3%
Q1 2017-8.1%-8.7%-24.3%
Q4 2016+4.0%
Q3 2016-3.7%
Q2 2016+15.1%
Q1 2016-2.9%
Q4 2015+7.1%
Q3 2015+5.2%
Q2 2015+9.1%
Q1 2015+4.7%
Q4 2014+7.7%
Q3 2014+0.9%
Q2 2014-4.9%
Q1 2014-2.4%
Q4 2013+6.8%
Q3 2013-2.7%
Q2 2013-2.0%
Q1 2013-7.3%
Q4 2012-3.5%
Q3 2012-3.8%
Q2 2012+6.5%
Q1 2011+5.7%
Q1 2012-1.8%
Q4 2009+2.7%
Q4 2011+2.7%
Q3 2011+0.4%
Q3 2010+0.4%
Q2 2010-6.0%
Q4 2010-6.0%
Q2 2011-6.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro