Latest news with #Symancyk
Yahoo
4 days ago
- Business
- Yahoo
Signet Shares Soar 12.5 Percent as Q1 Sales Gain
Updated 4:16 p.m. ET June 3 Signet Jewelers, reporting sales gains for the first quarter and displaying confidence in its transformation efforts, saw its share price spike 12.5 percent on Tuesday. More from WWD Jane Win and Shoe Brand Larroudé Collaborate on Limited-edition Evil Eye Motif Jewelry Capsule Roberto Coin Brings Touch of Venice to NYC to Fete Dakota Johnson as Ambassador Dakota Johnson Steps Into Sculptural Allure With Ferragamo's 'F' Heels at Roberto Coin Event Net income was $33.5 million, or 78 cents per diluted share for the quarter ended May 3, when results were pulled down by tax changes and restructuring charges totaling 46 cents per share. A year ago, earnings stood at $52.1 million, or 90 cents. Adjusted operating income, which the company considers a clearer indication of its financial performance, increased to $70.3 million from $57.8 million. Sales rose 2 percent to $1.54 billion from $1.51 billion, while comparable-store sales increased 2.5 percent. The average unit retail price increased approximately 8 percent. The results, as well as a slightly elevated outlook on sales for 2025, pushed shares up $8.32 to $75.13 on Tuesday. 'We really saw balanced growth across all categories,' chief executive officer J.K. Symancyk told WWD. He attributed much of the sales gain to bridal jewelry, which has continued to show growth since the fourth quarter, and fashion jewelry, where there has been 'early wins' in jewelry priced between $250 to $500, a range that Signet in the past did not emphasize enough. During the interview, the CEO characterized the consumer as 'resilient and smart.…They are making choices, but if the design and value proposition are right, and you are connecting in the right emotional ways as a brand, we see the consumer willing to invest and spend. But we certainly recognize it's a dynamic environment. We don't take that for granted.' Symancyk also gave WWD a progress report on Signet's 'Grow Brand Love' transformation strategy, which was completed in the first quarter and involved some reduction in staff size and the elimination of some layers of management. The headcount reduction was not disclosed because, as Symancyk said: 'It wasn't big enough. It was more about being more efficient and effective and really aligning our structure behind the strategy.' He also said the reorganization enables management to 'speed the clock on how we make decisions, particularly when you speak about being relevant in trend and fashion,' and brings the teams across the Signet portfolio of brands closer to the consumer. As part of the transformation, Symancyk said he sees fewer than 200 stores across the entire Signet portfolio closing this year. Another aspect of the strategy calls for the company to be innovative 'in three ways,' Symancyk said. Developing more design-led assortments that are on-trend and convey greater newness. 'Dimensionalizing the customer experience' across the brands and no longer taking a standardized approach to store operations. Elevating the marketing. 'You will see different personalities for each brand,' said Symancyk, adding that the company's marketing spend grew by 2 percent last quarter, helping drive impressions up 30 percent. Overall, the strategic plan is intended to accelerate growth in several ways after the company experienced a difficult 2024. Also on the agenda: expansion into new categories such as gifts, building brand loyalty and creating compelling experiences for customers including new store designs. Among the best-performing collections last quarter were Unspoken at Jared, and the Stellar Allure and Whimley collections at Zales. In his prepared statement, Symancyk said: 'While we're in the early innings of Grow Brand Love, our strategy is already driving growth in both bridal and fashion. 'We delivered positive same-store sales growth each month of the quarter, and into May, by bolstering our offerings at key price points and continuing the evolution of our assortment. Our three largest brands — Kay, Zales and Jared — all saw sequential comp sales improvement from the fourth quarter on higher margins, highlighting the impact of our outsized focus on our larger brands.' Signet also operates Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, Rocksbox, Peoples Jewellers, H. Samuel and Ernest Jones. Joan Hilson, chief operating and financial officer, said in her prepared statement: 'Our renewed promotional strategy and inventory management delivered both gross merchandise margin and adjusted operating margin expansion in the quarter with sales improvement outpacing inventory growth. Given our positive performance, we are increasing the low end and maintaining the high end of our fiscal 2026 operating guidance. This outlook reflects the current macro environment and current tariffs as well as on track cost savings initiatives. Further, we are raising our adjusted EPS guidance to reflect the repurchase of more than 5 percent of outstanding shares year to date.' Signet brought up the bottom-end of its guidance for 2025 and is now forecasting $6.57 billion to $6.8 billion in sales, from its previous projection of $6.53 billion to $6.8 billion in sales. Same-store sales are now seen ranging from down 2 percent to up 1.5 percent, versus the previous guidance of down 2.5 percent to up 1.5 percent. Adjusted operating income is seen ranging from $430 million to $510 million, versus the earlier projection of from $420 million to $510 million. The total sales outlook anticipates a 'measured consumer environment, providing for variability in consumer spending over the year,' the company said. Signet also indicated that it expects to absorb current tariffs within the adjusted operating income range provided, and that the forecast excludes any potential impact resulting from any new tariffs and the potential outcome of reciprocal tariffs. In other first-quarter results, gross margin was $598.8 million, up approximately $26 million from the first quarter last year. Gross margin rate grew 100 basis points to 38.8 percent, driven by gross merchandise margin expansion and leverage on fixed costs. SG&A was $526 million, or 34.1 percent of sales, up from $515.4 million, and flat to the year-ago first quarter, as a percentage of sales. 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Yahoo
5 days ago
- Business
- Yahoo
Signet Jewelers Ltd (SIG) Q1 2026 Earnings Call Highlights: Strong Growth in E-commerce and ...
Revenue: $1.5 billion for the quarter. Same-Store Sales Growth: 2.5% increase. E-commerce Sales Growth: Double-digit growth for Kay, Zales, and Jared. Merchandise Average Unit Retail (AUR): Increased approximately 8% overall; fashion up 10%, bridal up slightly. Gross Margin Expansion: 100 basis points increase from last year. Adjusted Operating Income: $70 million, up more than 20% from last year. Adjusted EPS: $1.18, above last year. Inventory: $2 billion, up approximately 1%. Cash Position: $264 million, with total liquidity of $1.4 billion. Share Repurchases: Approximately 2.3 million shares repurchased year-to-date. Store Closures: 14 stores closed in the quarter; plan to close just under 100 stores within the fiscal year. Guidance for Q2 Sales: $1.47 billion to $1.51 billion. Full-Year Sales Guidance: $6.57 billion to $6.8 billion. Capital Expenditures: Expected to be $145 million to $160 million. Warning! GuruFocus has detected 7 Warning Sign with DG. Release Date: June 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Signet Jewelers Ltd (NYSE:SIG) reported same-store sales and operating income growth above their guidance range for the first quarter. The company's 'Grow Brand Love' strategy is showing early signs of delivering long-term sustainable growth by aligning brands with customer expectations. Signet Jewelers Ltd (NYSE:SIG) achieved a more than 30% increase in impressions for its three largest brands with only a low single-digit increase in ad spend. The company reported a 60% increase in lab-grown diamond (LGD) fashion sales, contributing to an 8% increase in average unit retail (AUR) for fashion. Signet Jewelers Ltd (NYSE:SIG) expanded its gross margin by 100 basis points year-over-year, driven by refined promotional strategies and inventory management. James Allen, one of Signet Jewelers Ltd (NYSE:SIG)'s digital brands, created 140 basis points of pressure on comps due to lower brand awareness and positioning challenges. The company faces potential cost impacts and supply chain disruptions due to tariffs, particularly with imports from India and China. Signet Jewelers Ltd (NYSE:SIG) is closing up to 150 underperforming stores over the next two years, reflecting challenges in certain retail locations. The company anticipates slightly higher SG&A as a percentage of sales year-over-year, partly due to incentive compensation resets. Signet Jewelers Ltd (NYSE:SIG) is navigating a dynamic macroeconomic landscape, which includes potential consumer spending variability and tariff uncertainties. Q: Can you quantify the unmitigated tariff pressure and discuss the actions being taken to mitigate these pressures? Also, how are pricing trends in lab-grown and natural diamonds within the bridal and fashion categories? A: J.K. Symancyk, CEO, explained that the company is focusing on design and assortment architecture to maintain margin structure amidst tariff pressures. The tariffs primarily affect imports from India, and the company is leveraging its long lead times and strong inventory position to adjust assortments. Lab-grown diamonds (LGD) have seen continued deflation but are contributing to an increase in average unit retail (AUR) due to consumer trade-ups. Joan Hilson, CFO, added that the guidance includes the current impact of tariffs, with flexibility for unforeseen changes. Q: How is the performance of fashion compared to bridal, and have you seen an increase in new customers due to lab-grown diamonds? A: J.K. Symancyk, CEO, noted that while bridal trends are improving, fashion has shown sequential improvement, particularly in the sub-$500 price point. The introduction of new collections has helped drive positive same-store sales. Lab-grown diamonds have indeed attracted new customers, contributing to growth in both bridal and fashion categories. Q: What are you seeing in terms of consumer health across different brands, and how are you preparing for the upcoming holiday season amidst tariff concerns? A: J.K. Symancyk, CEO, stated that consumer resilience is evident, with AUR growth driven by aligning with consumer trends. For the holiday season, the company plans to focus on targeted marketing and reducing promotional noise, leveraging increased digital reach to expand their customer base. Q: Could you provide details on the penetration of lab-grown diamonds and the implications for your guidance? A: J.K. Symancyk, CEO, mentioned that lab-grown diamonds now represent about 20% of their business, up 5 points from last year. This growth is aligned with their strategic positioning and is expected to drive gross margin expansion. Joan Hilson, CFO, added that the current quarter's performance is near the high end of their guidance range, with flexibility built in for consumer variability. Q: How does the company view the risk of increased tariffs on lab-grown diamonds from India, and what is the outlook for the bridal category? A: J.K. Symancyk, CEO, emphasized that the company is actively managing tariff risks through a task force and leveraging its scale with partners. The lab-grown diamond category is less pressured due to controllable input costs. In the bridal category, unit growth has exceeded industry trends, supported by improved assortment architecture. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
