LONDON, UK / ACCESSWIRE / April 16, 2018 / Active-Investors.com has just released a free earnings report on Signet Jewelers Ltd (NYSE: SIG) ("Signet"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SIG. The Company reported its fourth quarter fiscal 2018 and full fiscal year 2018 operating and financial results on March 14, 2018. The world's largest retailer of diamond jewelry reported better than expected sales and earnings results. Additionally, the Company launched a 3-year transformational plan. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Signet Jewelers most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Signet's total sales were $2.29 billion in the 14 weeks ended February 03, 2018, compared to $2.27 billion in Q4 FY17. The total sales increase was driven by the extra 14th retail-calendar week of sales worth $84.3 million, as well as the addition of R2Net, which was acquired in September 2017, and contributed $64.4 million in sales during the reported quarter. Signet's revenue numbers beat analysts' estimates of $2.20 billion.

For Q4 FY18, Signet's same store sales, which excluded the impact of the 14th week from its calculation, decreased 5.2% on a y-o-y basis.

During Q4 FY18, Signet's gross margin was $919.8 million, or 40.1% of sales, down 160 basis points (bps) from Q4 FY17, including a negative 70 bps impact related to R2Net, which carried a lower gross margin rate. The remaining decline in gross margin rate was driven by lower sales, leading to deleverage on fixed costs and merchandise mix.

During Q4 FY18, Signet's operating income was $323.5 million, or 14.1% of sales, compared to $399.2 million, or 17.6% of sales, in Q4 FY17. The 350-bps decline was driven by deleverage of fixed costs due to sales declines, the impact of the credit outsourcing transaction, and deleverage related to R2Net. The credit outsourcing transaction reduced the Company's operating income by $21 million in the reported quarter, primarily due to the loss of interest income.

Signet's GAAP earnings were $343.0 million, or $5.24 per diluted share, in Q4 FY18 compared to $287.8 million, or $3.92 per diluted share, in Q4 FY17. The Company's non-GAAP diluted earnings per share (EPS) were $4.28, and excluded a benefit of $0.96 from the revaluation of deferred tax assets. The Company's non-GAAP diluted EPS were also ahead of Wall Street's estimates of $4.20. Signet's GAAP and non-GAAP earnings growth was driven by lower interest expenses due to lower debt balances, a lower effective tax rate, and a lower share count.

For FY18, Signet's total sales were $6.25 billion, down 2.4% compared to $6.41 billion in FY17. The total sales decline was driven by a decline in base same store sales.

For FY18, Signet recorded a GAAP net income of $486.4 million, or $7.44 per diluted share, compared to $531.3 million, or $7.08 per diluted share, in FY17. The Company's non-GAAP diluted EPS were $6.51 in FY18.

Segment Results

For Q4 FY18, Signet's ecommerce sales at banner websites and R2Net were $253.8 million on a 14-week basis, or $247.2 million on a 13-week basis, up 52.8% compared to the year ago same period. The Company's ecommerce sales increased across all divisions and accounted for 11.1% of the reported quarter sales, up from 7.1% of total sales in Q4 FY17.

Balance Sheet and Statement of Cash Flows

During FY18, Signet's net cash provided by operating activities was $1.9 billion, or $988.0 million when excluding the proceeds of the sale of the Company's prime receivables to ADS in October 2017. The Company's free cash flow was $1.7 billion, or $750.6 million when excluding the proceeds of the sale of prime receivables, in FY18.

As of February 03, 2018, Signet's cash and cash equivalents were $225.1 million compared to $98.7 million at the prior-year end. The higher cash position was due to a lower inventory and a favorable impact from the reduction in accounts receivable due to the sale of the Company's prime receivables to ADS in October 2017. As of February 03, 2018, Signet's long-term debt was $688.2 million, down $629.7 million compared to $1.3 billion at the end of FY17, primarily due to the repayment of the asset back securitization of $600.0 million.

For FY18, Signet deployed $460.0 million to repurchase its outstanding common stock, or 8.1 million shares, at an average cost of $56.91 per share. As of February 03, 2018, there was $650.6 million remaining under Signet's share repurchase authorization.

Transformation Plan

In the earnings press release, Signet also announced a three-year comprehensive transformation plan to reposition the Company to be a share gaining, omnichannel jewelry category leader. The three-year plan includes cost efficiencies, a portion of which will be reinvested in growth initiatives, including i) ecommerce growth; ii) omnichannel capabilities; and iii) innovation in product assortment and store experience.

Outlook

For the full fiscal year 2019, Signet is forecasting same-store sales to be down in the low- to mid-single digits. The Company is estimating sales to be in the range of $5.9 billion to $6.1 billion, and non-GAAP EPS to be in the band of $3.75 to $4.25.

Stock Performance Snapshot

April 13, 2018 - At Friday's closing bell, Signet Jewelers' stock marginally climbed 0.39%, ending the trading session at $38.63.

Volume traded for the day: 1.83 million shares.

Stock performance in the last month ? up 1.07%

After last Friday's close, Signet Jewelers' market cap was at $2.33 billion.

Price to Earnings (P/E) ratio was at 7.74.

The stock has a dividend yield of 3.83%.

The stock is part of the Services sector, categorized under the Jewelry Stores industry.

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