- Signet Jewelers Ltd (NYSE:SIG) reported fourth-quarter FY22 sales growth of 28% year-on-year, to $2.81 billion, beating the consensus of $2.77 billion. Same-store sales grew 23.8% versus last year.
- Brick and mortar sales increased 34.6% to $2.3 billion, and eCommerce sales rose 8.7% to $556 million.
- North America segment raked in the major chunk of sales, amounting to $2.6 billion, a 26.9% increase Y/Y. Same-store sales for the segment increased 22.2% versus last year.
- International segment same-store sales increased 50.2%, and sales rose 49% Y/Y to $183.4 million.
- The gross margin expanded 120 basis points to 41%. The adjusted operating income for the quarter increased 39.9% Y/Y to $411 million, with an operating margin of 14.6%.
- Adjusted EPS increased 20.7% Y/Y to $5.01, matching the Street view.
- Signet generated $1.3 billion in operating cash flow for FY22 and held cash and equivalents of $1.4 billion as of January 29, 2022.
- The company had an inventory of $2.1 billion at year-end, a 1.4% increase Y/Y.
- "Despite a challenging macro environment ahead, we believe that we are well-positioned in partnership with our strategic suppliers," said CEO Virginia C. Drosos.
- Guidance: Signet expects Q1 sales of $1.78 billion - $1.82 billion, above the consensus of $1.74 billion.
- It sees FY23 sales of $8.03 billion - $8.25 billion, above the consensus of $7.89 billion. Signet sees FY23 EPS of $12.28 - $13.00, above the Street view of $10.52.
- Price action: SIG shares are trading higher by 8.74% at $84.51 in premarket trading on the last check Thursday.
