Signet Jewelers Gains After Q4 Earnings Beat, Dividend Boost

Signet Jewelers Ltd SIG reported a fourth-quarter FY23 sales decline of 5.2% year-on-year to $2.67 billion, beating the consensus of $2.65 billion.
Same-store sales were down 9.1% to last year and up 16.4% to FY20.
North America segment sales amounted to $2.5 billion, a 4% decrease Y/Y. Same-store sales for the segment decreased 9.3% versus last year.
International segment same-store sales decreased 6.8%, and sales fell 16.5% Y/Y to $153.2 million.
Gross margin expanded 70 basis points to 41.7%. The operating income for the quarter was $369.5 million versus $402.4 million last year, with the margin shrinking from 14.3% to 13.9%.
Adjusted EPS of $5.52 beat the consensus of $5.43.
Signet's cash flow from operating activities for FY23 was $797.9 million versus $1.3 billion in the prior year. It held cash and equivalents of $1.2 billion as of Jan. 28, 2023.
Signet's Board increased the quarterly cash dividend on common shares from $0.20 per share to $0.23, payable on May 26, 2023, to shareholders of record on Apr. 28, 2023.
On Mar. 15, 2023, the Board approved a $263 million increase to the multi-year authorization under its share repurchase program bringing the total remaining authorization to approximately $775 million.
The company had an inventory of $2.2 billion at year-end.
Guidance: Signet expects Q1 sales of $1.62 billion - $1.65 billion, below the consensus of $1.8 billion.
It sees FY24 sales of $7.67 billion - $7.84 billion, against the consensus of $7.89 billion. Signet sees FY24 adjusted EPS of $11.07 - $11.59, above the Street view of $10.68.
Price Action: SIG shares are trading higher by 4.85% at $71.17 on the last check Thursday.

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