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Signet Jewelers Brick & Mortar Sales Off 4.2% Latest Quarter; Ecommerce Up 71% March 18, 2021 (0 comments)
HAMILTON, Bermuda--Signet Jewelers Limited ("Signet") (NYSE:SIG), the world's largest retailer of diamond jewelry, today announced its results for the 13 weeks ("fourth quarter Fiscal 2021") and 52 weeks ("Fiscal 2021") ended January 30, 2021. Image Credit, Signet Jewelers Limited.
Fourth Quarter Fiscal 2021:
- Total sales were $2.2 billion, an increase of 1.5% to last year. Same store sales ("SSS") grew 7.0%2.
- eCommerce sales increased 70.5% to last year and were 23.4% of sales.
- Brick and mortar SSS were down 4.2%.
- Operating cash flow of $1.4 billion with cash and cash equivalents of $1.2 billion at year end.
- Ending inventory was $2.0 billion, $299 million lower to last year.
- Fully paid down revolving credit facility and FILO loan during the quarter.
"This quarter marked an important milestone for Signet as our team delivered a strong fourth quarter and third year of the Company's Path to Brilliance transformation. These results reflect the exceptionally hard work and resilience of our Signet team members in a uniquely challenging time. I'm so appreciative of their passion, commitment to our purpose, and agility in meeting the needs of our customers with new digital capabilities. They are the driving force behind our success and are positioning us for long-term growth," said Virginia C. Drosos, Chief Executive Officer.
Drosos continued, "Our company today is stronger: we're more innovative, efficient, and digitally advanced. We are capitalizing on our momentum as we move into the next phase of our growth strategy called 'Inspiring Brilliance.' It is focused on winning in our big banners, categories and countries; accelerating Services revenue; broadening our mid-market with expansion in the Accessible Luxury and Value segments; and accelerating Digital Commerce, all with an emphasis on leading innovation in the jewelry industry and growing the scope of Signet's market. The cornerstone of this strategy will remain centered on our purpose of Inspiring Love and being a catalyst for positive change in our company, industry and community."
Business and Strategy Update
The next phase of Signet's growth strategy is called Inspiring Brilliance. Inspiring Brilliance builds on foundational improvements implemented over the past three years and is focused on leading innovation in the jewelry industry and achieving sustainable long-term growth as follows:
The Company will utilize data-driven insights to target new and existing customers. Signet's Customer First strategy will evolve into a Consumer-Inspired experience that includes both tailored merchandise assortments as well as expanded services designed to offer more innovative and personalized experiences to engage and delight consumers.
Signet intends to be the leader in the jewelry industry in digital commerce by offering its customers a seamless and efficient experience at every step of their shopping journey. As such, the Company will evolve its OmniChannel strategy into true Connected Commerce that integrates its physical and digital footprints to serve customers where, when and how they want to be served, including virtual selling and fast, flexible fulfillment.
Signet plans to further elevate its culture from one of agility and efficiency to one that expands to fully embrace innovation and purpose as an integral part of the Company's strategy. Building on its long-standing commitment to Corporate Social Responsibility, Signet is continuing its efforts to be a purpose-driven and sustainability-focused company. To that end, the Company has joined the UN Global Compact and the Sustainability Accounting Standards Board (SASB) Alliance. In addition, to further Signet's commitment to community impact, Signet launched the Love Inspires Foundation to bring our purpose to life in all the communities we serve.
Inspiring Brilliance includes a priority on transformational productivity which the Company expects to benefit both efficiencies in SG&A as well as gross margin over the next three years in the range of $175M to $200M to help offset critical investments in technology and innovation. The Company will continue to focus on working capital efficiency. Signet will further optimize its store footprint, transitioning to off-mall formats and adding highly efficient kiosks in underserved markets. Capital allocation priorities for Signet remain: 1) investing in the business, 2) reducing debt leverage, now targeting below 3.0x Adjusted Debt/EBITDAR over time and 3) returning cash to shareholders.
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