Categories AlphaGraphs, Consumer, Earnings, Retail

Earnings: Signet Jewelers Q2 results hurt by retail traffic softness

Signet Jewelers Ltd. (NYSE: SIG) reported a wider loss in the second quarter of 2020 due to goodwill impairment charges and higher costs and expenses. The softness in retail traffic and tough competitive environment hurt the top line, which declined by 4%.

Net loss was $44.3 million or $0.86 per share compared to a loss of $31.2 million or $0.56 per share in the previous year quarter. The latest quarter included goodwill impairment charges and a charge related to the Path to Brilliance transformation plan. Adjusted earnings declined by 2% to $0.51 per share.

Revenue fell by 4% to $1.36 billion as softness in retail traffic and tough competitive environment hurt the sales trends. Same-store sales decreased by 1.5% owing to higher expenses and unproductive stores, while eCommerce sales increased by 4.4%.

Earnings: Signet Jewelers Q2 results hurt by retail traffic softness

Looking ahead into the third quarter, Signet expects total sales in the range of $1.14 billion to $1.16 billion and same-store sales in the range of down 2% to down 1%. Adjusted loss is anticipated to be in the range of $1.16 to $1.02 per share and GAAP net loss is predicted to be in the range of $1.48 to $1.21 per share.

For fiscal 2020, total sales are now estimated to be $6 billion to $6.03 billion. Same-store sales are still expected to be down 2.5% to 1.5%. The company lowered its full-year GAAP EPS guidance to the range of $0.87 to $1.33 from the prior range of $1.88 to $2.38 while lifting its adjusted EPS forecast to the range of $2.91 to $3.23 from the previous range of $2.88 to $3.17.

In fiscal 2020, the company expects net cost savings of $70 million to $80 million. The company expects its transformation plan to deliver $200 million to $225 million of net cost savings in fiscal years 2019-2021, inclusive of the $85 million achieved in fiscal 2019. In fiscal 2020, the company expects to close about 150 stores, with 66 closures in the fiscal year-to-date and limited new store openings for the full year.

Read: Qutoutiao Q2 earnings review

The company expects it will have reduced its store base by about 13% over the three-year period from fiscal years 2018 to 2020, materially reducing its exposure to lower grade malls and simplifying the portfolio by exiting most of its regional banners. The company’s board declared a quarterly cash dividend of $0.37 per share for the third quarter, payable on November 29, 2019, to shareholders of record on November 1, 2019, with an ex-dividend date of October 31, 2019.

Signet announced that it expects to enter into new fully-committed 5-year $1.6 billion senior asset-based credit facilities to refinance all outstanding amounts under its existing senior credit facilities that mature in July 2021. This is in order to finance a tender offer for its outstanding senior notes due in 2024, to pay related fees and expenses, and for general corporate purposes.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Viewing Highlight