Signet Jewelers Ltd (NYSE:SIG) shares are trading higher in premarket after reporting fourth-quarter FY25 earnings results.
On Wednesday, the company reported a fourth-quarter sales decline of 5.8% year-on-year to $2.35 billion, beating the analyst consensus estimate of $2.33 billion.
Same store sales decreased 1.1% in the quarter. Merchandise Average Unit Retail (AUR) increased about 7%.
North America segment sales amounted to $2.2 billion, a 5.6% decrease Y/Y. Same-store sales for the segment decreased 1.1% versus last year.
International segment same-store sales decreased 1.5%, and sales fell 10.9% Y/Y to $126.2 million.
Gross margin of 42.5% contracted 80 basis points. The operating income for the quarter was $152.6 million versus $416.3 million last year, with an operating margin of 6.5%, down from 16.7% last year.
The operating income was impacted by non-cash impairment charges of $200.7 million substantially related to Digital brands.
Adjusted EPS of $6.62 beat the consensus estimate of $6.25.
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Signet’s operating cash flow for FY25 was $590.9 million. It held cash and equivalents of $604 million as of February 1.
The Board of Directors has raised the quarterly cash dividend by 10% to $0.32 per share for the first quarter of Fiscal 2026, payable May 23, 2025, to shareholders of record on April 25, 2025.
For Fiscal 2025, Signet repurchased approximately 1.6 million shares for $138.0 million, including $24.2 million during the fourth quarter.
“I’d like to thank the team for their efforts in delivering a positive comp in January. This positive trend has continued into the first quarter to date with growth across all categories. Since holiday, we increased our depth of assortment at key price points while also benefiting from improved Bridal trends,” said Chief Executive Officer J.K. Symancyk.
Outlook: Signet expects FY26 revenue of $6.53 billion – $6.80 billion, with an estimate of $6.742 billion.
The company sees FY26 adjusted EPS of $7.31 – $9.10 versus the estimate of $9.00. Adjusted EBITDA of $605 million – $695 million.
Signet anticipates first-quarter revenue of $1.50 billion – $1.53 billion versus the $1.504 billion estimate. The company sees first-quarter adjusted EBITDA of $94 million – $106 million.
Price Action: SIG shares traded higher by 18.4% at $57.20 in premarket at last check Wednesday.
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