Tue, Jun 3, 1:25 PM (40 days ago)
**Signet Jewelers Limited (SIG) Q1 2026 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total sales increased by 2.0% to $1.54 billion, driven by a 2.5% increase in same-store sales, primarily from higher merchandise average unit retail (AUR) in both bridal and fashion categories. - **Profit Margins:** Gross margin improved to 38.8% from 37.9%, reflecting merchandise margin expansion and a balanced promotional strategy. - **Operating Income:** Decreased by 3.4% to $48.1 million, primarily due to restructuring costs related to the "Grow Brand Love" strategy. - **Net Income:** Declined by 35.7% to $33.5 million, impacted by restructuring charges and lower interest income. - **Earnings per Share (EPS):** Basic EPS was $0.79, while diluted EPS was $0.78. **Cash Flow:** - **Operating Activities:** Net cash used in operating activities was $175.3 million, primarily due to higher paydowns of accounts payable. - **Investing Activities:** Net cash used was $36.6 million, mainly for capital expenditures. - **Financing Activities:** Net cash used was $137.3 million, including $117.4 million for common share repurchases and $12.6 million for dividends. **Segment Performance:** - **North America:** Sales increased by 2.1% to $1.45 billion, with a 2.3% increase in same-store sales. - **International:** Sales increased by 3.8% to $80.1 million, with a 4.5% increase in same-store sales. - **Other:** Sales were $11.0 million. **Trends & Uncertainties:** - **Grow Brand Love Strategy:** Focuses on sustainable growth, brand innovation, and organizational realignment. - **Macroeconomic Factors:** Uncertainties include tariffs, inflation, and geopolitical conflicts, which could impact consumer spending and supply chains. - **Future Operations:** The company plans to optimize its real estate footprint, invest in digital and technology advancements, and maintain a conservative balance sheet. **Liquidity & Capital Resources:** - **Cash Position:** $264.1 million in cash and cash equivalents as of May 3, 2025. - **Debt:** No outstanding debt after repaying the Senior Notes. - **Credit Facility:** $1.1 billion available under the asset-based revolving credit facility. **Outlook:** - **Fiscal 2026:** The company anticipates same-store sales to be down 2.0% to up 1.5%, with a focus on expanding margins and aligning brands to customer expectations. - **Capital Expenditures:** Planned for up to $160 million, reflecting investments in new stores, renovations, and digital advancements.