NYSE$SIG

Signet Jewelers LTD · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Delivered double-digit operating margin and reaffirmed annual guidance.

Signet Jewelers reported Q2 Fiscal 2023 results with $1.8 billion in revenue and a 10.6% operating margin. The company's focus on market share, operating efficiencies, and strategic investments, including the acquisition of Blue Nile, positions it for long-term growth. Despite a softer topline environment, inventory discipline provided flexibility and working capital efficiencies.

  • Total sales were $1.8 billion, down 1.9% compared to a record Q2 of FY22, but up 29% versus Q2 of FY20.
  • Same store sales decreased by 8.2% compared to Q2 of FY22.
  • GAAP operating income was $186.8 million, down from $225.4 million in Q2 of FY22.
  • Cash and cash equivalents at quarter end were $851.7 million.

Headline financials

Total Revenue

$1.75B

Previous: $1.79B-1.9%
EPS (adj)

$2.68

Previous: $3.57-24.9%
Capital Expenditures

-$58.2M

Previous: -$32.2M-80.7%
Free Cash Flow

$87.2M

Previous: $192M-54.7%
Net Income

$145M

Previous: $225M-35.3%
Operating Income

$187M

Previous: $225M-17.1%
Gross Profit

$665M

Previous: $718M-7.4%
Cash & Equivalents

$852M

Previous: $1.57B-45.9%
Total Assets

$6.16B

Previous: $6.31B-2.3%
Stock-Based Comp

$12.4M

Previous: $17.5M-29.1%

Revenue & EPS history

Signet · Revenue · Quarterly

$1.75B

Q2 2023-1.9%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
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 is reaffirming its full year Fiscal 2023 revenue and operating income guidance which is provided on a non-GAAP basis.

Tailwinds

  • Total revenue (in billions) $1.46 to 1.49
  • Operating income (in millions) $20 to 34
  • Diluted EPS $10.98 to $11.57
  • Total revenue (in billions)$7.60 to $7.70
  • Operating income (in millions)$787 to $828

Headwinds

  • The Company’s outlook includes a level of consumer pressure, including inflation and the impact of stimulus, similar to what is currently being experienced.
  • The Company’s outlook does not include 1) a material worsening of macroeconomic factors which could impact consumer spending patterns and have associated impacts on business performance; 2) the acquisition of Blue Nile, Inc.
  • Signet continues to anticipate some shift of consumer discretionary spending away from the jewelry category reflecting pent-up demand for experience-oriented categories during the year.
  • Signet’s efforts to mitigate supply chain disruption have been effective thus far. Guidance assumes no significant disruptions in availability of inventory.
  • The Company’s outlook factors in a level of promotion.

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 2023

Historical avgQ2 2023

+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%

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