HAMILTON, Bermuda, 2016-Aug-27 — /EPR Retail News/ — Signet Jewelers Limited (“Signet”) (NYSE: SIG), the world’s largest retailer of diamond jewelry, today ( August 25, 2016) announced its results for the 13 weeks ended July 30, 2016 (“second quarter Fiscal 2017”).
Summary:
- Same store sales down 2.3%. Total sales $1.4 billion down 2.6%. Total sales at constant exchange rate down 1.3%.
- Second quarter Fiscal 2017 diluted earnings per share (“EPS”) $1.06. Adjusted EPS $1.14.
- Zale integration continues to progress well. On track to deliver cumulative synergies of $158 million to $175 million by end of this fiscal year and $225 million to $250 million by end of next fiscal year.
- Repurchased over 2.8 million shares in second quarter for $250 million along with insider buying.
- Credit review process proceeding according to plan.
- Leonard Green & Partners (“LGP”) commits to $625 million convertible preferred investment in Signet.
- Annual financial guidance revised downward based on current trends.
Mark Light, Chief Executive Officer of Signet Jewelers said, “We are disappointed by our Q2 results and market conditions have been challenging particularly in the energy-dependent regions. This has contributed to a downward revision in our annual guidance.
“We achieved some important wins in the second quarter. Select diamond fashion jewelry, bracelets, and earrings sold well. We saw success in a variety of selling channels including outlets, kiosks, and on-line due to improvements in our consumer websites and mobile sites. The Zale integration is running well and synergies remain on target. We remain confident in the medium and long-term prospects of our business.
“Demonstrating our confidence in our company, we repurchased nearly four percent of our outstanding common stock during the quarter coupled with purchases by our Directors and Officers. As announced, and in a further demonstration of confidence in our company, LGP, one of the world’s preeminent retail investors, agreed to purchase a $625 million stake in Signet. Finally, our credit review process is proceeding according to plan.”
Mr. Light concluded, “We have experience and success in navigating through the kind of uncertain business conditions we are seeing today. We are confident that our organization will do so again this year. We are intensely focused on preparations for the fourth quarter when we will launch new initiatives around merchandising, marketing, digital, and the customer experience. I want to thank all Signet team members for their dedication and hard work as we move in to the all-important holiday season.”
Contact:
Investors:
James Grant
VP Investor Relations
1 330-668-5412
Media:
David Bouffard
VP Corporate Affairs
1 330-668-5369
Source: Signet Jewelers Limited