Signet Jewelers beats by $0.01, misses on revs; guides Q2 EPS in-line; reaffirms FY17 EPS guidance, lowers comps
- Reports Q1 (Apr) earnings of $1.95 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.94; revenues rose 2.9% year/year to $1.58 bln vs the $1.61 bln Capital IQ Consensus.
- Same store sales increased 2.4% vs. +3-4% guidance, compared to an increase of 3.6% in the first quarter Fiscal 2016, driven primarily by strong sales in select branded bridal and diamond fashion jewelry. Ecommerce sales in the first quarter Fiscal 2017 were $80.1 million, or 5.1% of sales, up $3.2 million, or 4.2%, compared to $76.9 million in the first quarter Fiscal 2016. Overall, average transaction value ("ATV") was higher and number of transactions were lower due to merchandise mix.
- Co issues in-line guidance for Q2, sees EPS of $1.49-1.54, excluding non-recurring items, vs. $1.53 Capital IQ Consensus; comps +1-2%.
- Co reaffirms guidance for FY17, sees EPS of $8.25-8.55, excluding non-recurring items, vs. $8.41 Capital IQ Consensus; lowers comps to +2-3.5% from +3-4.5%.
- Zale acquisition integration progressing well; synergies remain on-target.
- Repurchased over 1.1 million shares in first quarter for $125.0 million.
- Signet also announced that its Board of Directors has authorized management to conduct a strategic evaluation of the Company's credit portfolio. Goldman Sachs has been engaged as the Company's financial advisor in this process. Signet will consider a full range of options with respect to its credit operations and update investors as appropriate. Q1 credit metrics improved sequentially and in-line with expectations.