Signet annual sales flat on lacklustre international, comps; earnings slashed
Signet Jewelers Limited said total sales for fiscal 2023 inched forward 0.2% to $7.8 billion, weighed down by a 6% decline incomparable sales and a single-digit sales decline in the fourth quarter.
The Hamilton, Bermuda-based company said fourth-quarter sales fell 5.2% to $2.7 billion, hurt by a 9% decline in comparable sales and a 16% plummet in international sales during the three months ending January 28.
North America sales dropped 4% to $2.5 billion during the quarter, while net income was slashed to $277.3 million, compared to $314.3 million, in the prior-year quarter.
Moreover, net income was almost halved for the fiscal 2023, to $376.7 million,
from net income of $769.9 in fiscal 2022.
"Thank you to our team for their dedication, agility, and excellent execution. We delivered on our three key priorities of growing market share, achieving an annual double-digit non-GAAP operating margin, and leveraging capital allocation to drive shareholder returns despite headwinds and volatility throughout the year," said Signet chief executive officer Virginia Drosos.
"As we turn to FY24, we are confident in the sustainable competitive advantages we've built and our ability to leverage our enhanced infrastructure and scale to grow ahead of the jewelry industry."
Looking ahead, Signet said its sale guidance for fiscal 2024 sits between $7.67 billion to $7.84 billion.
"Our fiscal 2024 guidance reflects confidence in our ability to deliver an annual double-digit non-GAAP operating margin despite a jewelry retail environment that we estimate will decline mid-single digits through the year," said Joan Hilson, chief financial, strategy and services officer.
"Consistent with our stated capital allocation priorities to drive shareholder returns, we have prioritized up to $200 million in capital investments, increased our quarterly common dividend to $0.23 per share as part of our commitment as a dividend growth company, and increased our share buyback program by $263 million, bringing the total remaining authorization to approximately $775 million."
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