Signet Jewelers (SIG) Holiday Comps Up 5.0%; Trims Outlook

Signet Jewelers Ltd (NYSE: SIG) announced its sales for the eight weeks ended December 28, 2013 and guidance for the 13 weeks ending February 1, 2014, and the 52 weeks ending February 1, 2014.

      Same Store Sales for 8 Weeks Ended December 28, 2013

               Kay                 up 5.6%
               Jared               up 5.6%
               Regional Brands     down 2.3%
               US Division         up 4.9%

               H.Samuel            up 3.3%
               Ernest Jones        up 8.0%
               UK division         up 5.2%

               Signet              up 5.0%

Mike Barnes, Chief Executive Officer, commented: "We were pleased to deliver 5% same store sales for the Holiday Season and were especially encouraged by both the improvement in the UK division and the strength of our eCommerce sales across divisions. I would like to thank the US and UK teams very much for their dedication, hard work, and execution of our exciting merchandise programs during the holiday selling period.

"The US Holiday Season was highlighted by a strong November and a strong finish to December. Overall, we expect fourth quarter same store sales to be within our guidance. However, additional discounting was necessary in a highly promotional retail environment that included challenging customer traffic trends and lower than anticipated commodity cost savings. We believe these factors will result in lower than expected gross margins and profitability versus our original expectations."

2014 Updated Fourth Quarter and Full Year Guidance:

For the fourth quarter, the Company now expects diluted earnings per share in the range of $2.12 to $2.16, based on an estimated 80.3 million weighted average common shares outstanding. The decrease in projected diluted earnings per share is due primarily to projected sales and the impact of lower margins resulting from the factors described above.

For the full Fiscal 2014 year, the Company anticipates:

-- Diluted earnings per share in the range of $4.51 to $4.55, based on an estimated 80.7 million weighted average common shares outstanding. (The Street sees FY14 EPS of $4.80.)
-- Capital expenditures in the range of $170 million to $175 million, a $10 million decrease from previous expectations due to the timing of information technology projects.

Sales Performance:

In the eight week period ended December 28, 2013, total sales of $1,276.3 million increased 7.7% compared to the eight weeks ended December 29, 2012 ("the comparable eight weeks"). Same store sales increased 5.0% driven by balanced strength across a variety of brands and categories. Consolidated eCommerce sales increased by 27.2%, comprised of a 24.8% increase in the US division and an 37.5% increase in the UK division.

-- In the eight week period ended December 28, 2013, the US division's total sales of $1,072.7 million increased 7.9% versus the comparable eight weeks. Same store sales increased 4.9%.
-- In the eight week period ended December 28, 2013, the UK division's total sales of $203.6 million increased 6.6% versus the comparable eight weeks. Same store sales in the UK were up 5.2%.

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