NYSE$SIG

Signet Jewelers LTD · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Signet's Q4 2021 earnings were strong, with same-store sales up 7% and eCommerce sales up 70%.

Signet Jewelers reported a strong fourth quarter with a 1.5% increase in total sales, driven by a 7% growth in same-store sales and a 70.5% surge in eCommerce sales. The company's operating cash flow was $1.4 billion, with cash and cash equivalents ending at $1.2 billion. Signet is moving into the next phase of its growth strategy called ‘Inspiring Brilliance.’

  • Total sales increased by 1.5% to $2.2 billion.
  • Same store sales grew by 7.0%.
  • eCommerce sales increased by 70.5%, representing 23.4% of total sales.
  • Operating cash flow was $1.4 billion, with cash and cash equivalents at $1.2 billion at year end.

Headline financials

Total Revenue

$2.19B

Previous: $2.15B+1.6%
EPS (adj)

$4.15

Previous: $3.67+13.1%
Same-store sales growth

7.0%

Previous: 2.3%+204.3%
Capital Expenditures

$41.9M

Previous: $41M+2.2%
Free Cash Flow

$1.29B

Previous: $419M+207.4%
Net Income

$254M

Previous: $187M+35.9%
Operating Income

$292M

Previous: $223M+30.8%
Gross Profit

$870M

Previous: $898M-3.2%
Cash & Equivalents

$1.2B

Previous: $375M+220.4%
Total Assets

$6.18B

Previous: $6.3B-1.9%
Stock-Based Comp

$4.9M

Previous: $3.9M+25.6%

Revenue & EPS history

Signet · Revenue · Quarterly

$2.19B

Q4 2021+1.6%vs Q4 2020
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 provided financial guidance for Fiscal Year 2022, including total revenue between $5.85 billion and $6.00 billion and same store sales growth between 14% and 17%.

Tailwinds

  • Preliminary SSS for Q1 to date, through March 14, 2021, were approximately 16%.
  • Signet expects stronger sales performance in the first half of the fiscal year.
  • The Company’s Inspiring Brilliance strategy requires additional investments in digital and technology to further strengthen our competitive advantage and long-term positioning within the jewelry category.
  • Gross cost savings of $50 million - $75 million are expected in Fiscal 2022, with continued benefits from closed stores and operational efficiencies. Cost savings are expected to benefit both SG&A and gross margin.
  • Signet has planned Fiscal 2022 capital expenditures in the range of $150 million to $175 million, reflecting continued investments in technology and innovation.

Headwinds

  • As the vaccine rollout progresses, there could be a shift of consumer discretionary spending away from the jewelry category toward experience-oriented categories, the magnitude and timing of which is difficult to predict.
  • Signet expects categories with pent up demand to be promotional in order to capture discretionary spend.
  • The Company is conservatively planning for same store sales to be negative in the second half of the fiscal year.
  • Continued uncertainty surrounding multiple factors include the magnitude and potential resurgence of COVID-19 in key trade areas, extended duration of heightened unemployment, supply chain disruptions and macro or governmental influences on consumers’ ability to spend, particularly in discretionary categories like jewelry.
  • There can be no assurance that preliminary quarter to date trends will continue for the remainder of the first quarter and are not indicative of future performance.

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 Q4 2021

Historical avgQ4 2021

+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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