Signet Jewelers (SIG) Q1 2025 earnings summary

Executive summary

• Q1 FY25 sales were $1.51B, down 9.4% YoY, with same-store sales down 8.9% and engagement and fashion sales showing sequential improvement.

• Adjusted operating income was $57.8M (3.8% margin), down from $106.5M (6.4%) YoY, with adjusted diluted EPS at $1.11, down from $1.78.

• Net loss attributable to common shareholders was $(40.1)M, mainly due to a $92.2M preferred share dividend and redemption charges.

• Margin and cash flow improved over the prior year, with adjusted merchandise margin up 100 bps and free cash flow improving to $(181.5)M.

• Full-year guidance reaffirmed, with positive same-store sales inflection expected in H2 FY25.

Financial highlights

• Q1 revenue: $1.51B, gross margin: $572.4M (37.9% of sales), and adjusted operating income: $57.8M (3.8% margin).

• Adjusted EPS: $1.11 per diluted share; GAAP diluted EPS: $(0.90) due to preferred share redemption.

• SG&A expenses: $515.4M (34.1% of sales), up YoY due to deleverage and higher advertising.

• Inventory: $1.98B, down from $2.18B YoY, aligned with revenue.

• Cash and cash equivalents: $729.3M, up from $655.9M a year ago.

Outlook and guidance

• Q2 FY25 sales expected at $1.46B–$1.52B; same-store sales down 6%–2%; adjusted operating income: $50M–$75M.

• FY25 sales guidance reaffirmed at $6.66B–$7.02B, same-store sales between -4.5% and +0.5%, adjusted operating income of $590M–$675M, and adjusted diluted EPS of $9.90–$11.52.

• US engagements projected to increase 5–10% for FY25; digital banner integration issues expected to negatively impact sales by 1.5–2.0%.

• Capital expenditures planned at $160M–$180M for the year.

• Approximately $1.1B allocated to debt retirement, preferred share redemption, and share repurchases in FY25.