Signet Jewelers Stock Falls After Q3 Results; Registers 18% Top-Line Growth

Signet Jewelers Ltd SIG reported third-quarter FY22 sales growth of 18.3% year-on-year, to $1.54 billion. Same-store sales grew 18.9% versus last year and up 37.2% compared to 3Q FY20.

• Same-store sales for the North America segment rose 19.8%, and International increased 8.8%.
• Brick and mortar same-store sales rose 20.3% versus Q3 of FY21 and up 28.8% versus Q3 of FY20. eCommerce sales increased 14.4% Y/Y to $273.1 million.
• The operating margin was 7%, and the operating income jumped 169.3% Y/Y to $106.9 million.
• Non-GAAP EPS was $1.43, up from $0.11 last year.
• Signet generated $483.9 million in operating cash flow and $352.1 million in adjusted free cash flow as of October 30, 2021.
• Signet held cash and equivalents of $1.5 billion as of October 30, 2021.
• "While uncertainties remain in the macro environment, our strategies are working as evidenced by strong conversion rates and higher average transaction value," said CEO Virginia C. Drosos.
• Guidance: Signet sees Q4 sales of $2.40 billion - $2.48 billion and Same-store sales growth of 6% - 9%.
• The company raised the FY21 sales outlook to $7.41 billion - $7.49 billion (previously $7.04 billion - $7.19 billion). Same store sales growth of 41% -43% (prior view 35% - 38%).
• Price action: SIG shares are trading lower by 5.62% at $87.46 on the last check Thursday.