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Signet Jewelers Limited (SIG)
NYSE:SIG
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Signet Jewelers
(NYSE:SIG)
61Neutral
Positive Factors
Cost Management
Reorganization and simplification should drive $100mn of annual costs savings to offset incentive comp and inflation.
Earnings
Shares rallied after a 4Q comp and SG&A beat and commentary on positive comps YTD.
Growth Strategy
CEO Symancyk outlined a new strategy for SIG to accelerate growth, focusing on elevating branding, growing the core business, and redesigning the operating model.
Negative Factors
Consumer Behavior
Management’s guidance calls for a slowdown in comp from the current +2% to a full year range of -2.5% to +1.5% due to concerns around consumer behavior.
Holiday Sales Performance
SIG reported weaker than expected holiday results and cut 4Q guidance across the board.
Market Share
SIG is the only company in our universe that missed this holiday (at this point), which in some ways supports the bear thesis of losing market share and being disrupted by lab created diamonds.
Signet Jewelers (SIG) vs. S&P 500 (SPY)
Market Cap
$2.53B
Dividend Yield1.96%
Average Volume (3M)1.67M
Price to Earnings (P/E)5.6
Beta (1Y)1.12
Revenue Growth-6.52%
EPS Growth-104.24%
CountryUS
Employees27,595
SectorConsumer Cyclical
Sector Strength67
IndustryLuxury Goods
Share Statistics
EPS (TTM)-0.76
Shares Outstanding42,895,786
10 Day Avg. Volume990,364
30 Day Avg. Volume1,673,304
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.25
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.21
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$74.60Price Target Upside24.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Signet Jewelers Business Overview & Revenue Model
Company DescriptionSignet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Jewelers, Zales Outlet, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through JamesAllen.com and Rocksbox. The International segment operates stores in shopping malls and off-mall locations primarily under the H.Samuel and Ernest Jones brands in the United Kingdom, Republic of Ireland, and Channel Islands. The Other segment is involved in the purchase and conversion of rough diamonds to polished stones, as well as the provision of diamond polishing services. As of January 29, 2022, it operated 2,854 stores and kiosks. Signet Jewelers Limited is based in Hamilton, Bermuda.
How the Company Makes MoneySignet Jewelers makes money primarily through the sale of jewelry and related products across its various retail brands. Its revenue streams are largely driven by in-store sales, e-commerce transactions, and a range of financing and warranty services offered to customers. The company benefits from its wide geographical presence, with stores located in prime shopping areas and malls, as well as a strong online retail platform. Signet also generates revenue through partnerships with credit providers, enabling them to offer financing options to their customers. Additionally, the company's revenue is supported by its repair and maintenance services for jewelry and watches, as well as its extended service plans, which provide additional customer value and engagement.
Signet Jewelers Financial Statement Overview
Summary
Signet Jewelers shows a moderate financial standing with strong cost management reflected in a good gross profit margin. However, challenges in operational efficiency and cash generation consistency are notable.Income Statement
The income statement shows mixed performance with a revenue decline in 2024 compared to 2023, but a recovery in net income margin from previous losses. The gross profit margin remains strong, indicating effective cost management. However, the decline in EBIT margin suggests challenges in operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a relatively healthy financial position with a declining debt-to-equity ratio, indicating reduced leverage. The equity ratio is stable, showcasing solid asset management. However, fluctuations in stockholders' equity highlight potential volatility.75
Positive
Cash Flow
Cash flow analysis presents concerns with declining operating cash flow and free cash flow figures in recent years. The operating cash flow to net income ratio demonstrates inconsistency, suggesting potential issues in converting income into cash. Nonetheless, the company maintains positive free cash flow to net income ratios, reflecting some cash generation capability.60
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.70B | 7.17B | 7.84B | 7.83B | 5.23B | Gross Profit |
| 2.63B | 2.83B | 3.05B | 3.12B | 1.73B | EBIT |
| 110.70M | 621.50M | 604.90M | 903.40M | 147.50M | EBITDA |
| 651.20M | 789.60M | 629.20M | 1.06B | 118.30M | Net Income Common Stockholders |
| 61.20M | 810.40M | 376.70M | 769.90M | -15.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 604.00M | 1.38B | 1.17B | 1.42B | 1.17B | Total Assets |
| 5.73B | 6.81B | 6.62B | 6.58B | 6.18B | Total Debt |
| 1.18B | 1.24B | 1.33B | 1.45B | 1.67B | Net Debt |
| 575.90M | -135.00M | 163.50M | 33.90M | 498.80M | Total Liabilities |
| 3.87B | 3.99B | 4.39B | 4.36B | 4.35B | Stockholders Equity |
| 1.85B | 2.82B | 2.23B | 2.22B | 1.83B |
| Cash Flow | Free Cash Flow | |||
| 437.90M | 421.40M | 659.00M | 1.13B | 1.29B | Operating Cash Flow |
| 590.90M | 546.90M | 797.90M | 1.26B | 1.37B | Investing Cash Flow |
| -159.10M | -75.80M | -545.40M | -642.70M | -77.80M | Financing Cash Flow |
| -1.20B | -259.70M | -490.00M | -366.60M | -498.60M |
Signet Jewelers Technical Analysis
Neutral
60.15
Price Trends
54.19
Positive
62.21
Negative
75.40
Negative
Market Momentum
0.92
Negative
58.86
Neutral
82.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIG, the sentiment is Neutral. The current price of 60.15 is above the 20-day moving average (MA) of 56.53, above the 50-day MA of 54.19, and below the 200-day MA of 75.40, indicating a neutral trend. The MACD of 0.92 indicates Negative momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 82.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SIG.
Signet Jewelers Risk Analysis
Signet Jewelers disclosed 36 risk factors in its most recent earnings report. Signet Jewelers reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Signet Jewelers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $172.59M | 25.75 | 13.39% | ― | 5.07% | -3.19% | |
61 Neutral | $2.53B | 5.56 | 2.62% | 1.96% | -6.52% | -104.24% | |
60 Neutral | $6.87B | 11.73 | 3.11% | 4.16% | 2.36% | -22.03% | |
60 Neutral | $218.85M | 17.07 | 3.95% | 10.03% | -8.69% | -57.84% | |
58 Neutral | $153.06M | ― | 3.88% | ― | -5.43% | -15.13% | |
40 Underperform | $20.08M | ― | 89.94% | ― | 3.11% | 11.94% | |
33 Underperform | $779.57K | ― | ― | -26.68% | 27.41% |
* Consumer Cyclical Sector Average
Performance Comparison
SIG
Signet Jewelers
60.15
-36.24
-37.60%
BGI
Birks & Mayors
1.04
-1.52
-59.38%
CTHR
Charles & Colvard
0.14
-3.19
-95.80%
MOV
Movado Group
14.00
-9.62
-40.73%
ELA
Envela
6.79
2.50
58.28%
BRLT
Brilliant Earth Group
1.56
-0.99
-38.82%
Signet Jewelers Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2025)
| % Change Since: 25.21%|
Next Earnings Date:Jun 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant strategic initiatives to drive future growth, but also highlighted current challenges such as revenue decline and underperformance in key areas. Positive developments in lab-grown diamond sales and strategic reorganization were offset by revenue and same-store sales declines.Q4-2025 Updates
Positive Updates
Positive Same-Store Sales Growth
Signet Jewelers reported positive same-store sales over the last three months, including Valentine's Day, indicating a successful adjustment in inventory and product offerings.
Growth in Lab-Grown Diamonds
Lab-grown diamond fashion sales increased by 60% in Signet's big three brands, driving fashion average unit retail growth and margin expansion.
Strategic Reorganization and Cost Savings
Signet announced a reorganization to streamline operations, expected to save $50 million to $60 million in the fiscal year, with an annualized impact of at least $100 million.
Dividend Increase
Signet raised its quarterly dividend by 10%, marking the fourth consecutive annual increase.
Strong January Performance
The company experienced strong sales in January, driven by product landing at key price points and strong engagement.
Negative Updates
Revenue Decline
Signet's quarterly revenue was down 6% year-over-year, reflecting challenges in achieving growth.
Underperformance of Key Gifting Price Points
Key gifting price points underperformed in the two weeks before Christmas, leading to a softer fashion performance.
Slight Decline in Same-Store Sales
Same-store sales were down 1.1% for the quarter, indicating a need for improvement in consumer engagement.
Gross Margin Contraction
The adjusted gross margin was down 70 basis points from the previous year, despite merchandise margin expansion.
Potential Store Closures
Signet is evaluating around 150 underperforming stores for potential closure over the next two years.
Company Guidance
During the Signet Jewelers Fourth Quarter Fiscal 2025 Earnings Call, the company outlined its forward-looking strategy, "Grow Brand Love," which aims to transform and accelerate growth by focusing on brand loyalty and leveraging core capabilities. The guidance provided included expectations for the first quarter with total sales projected between $1.5 billion to $1.53 billion and same-store sales ranging from flat to up 2%. For the fiscal year, Signet anticipates total sales between $6.53 billion to $6.8 billion, with same-store sales fluctuating from down 2.5% to up 1.5%. The company expects adjusted operating income to be between $420 million to $510 million, with plans to reduce senior leadership by roughly 30% and achieve annual savings of at least $100 million, primarily impacting SG&A. The strategy includes centralizing sourcing, optimizing real estate by closing or relocating underperforming stores, and enhancing customer experiences to better align with brand identities, aiming to achieve sustainable profit growth and increased shareholder value.Signet Jewelers Corporate Events
Business Operations and StrategyFinancial Disclosures
Signet Jewelers Unveils ‘Grow Brand Love’ Strategy
Neutral
Mar 19, 2025
Signet Jewelers reported its fourth quarter and fiscal 2025 results, showing a decline in sales and operating income compared to the previous year. Despite these declines, the company announced a new ‘Grow Brand Love’ strategy aimed at accelerating growth through design-led products and a reorganization plan to improve operational efficiency. The company also highlighted its strong cash flow, which allowed for significant shareholder returns, and outlined plans to optimize real estate by transitioning mall locations to off-mall and eCommerce channels over the next three years.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.