Signet Jewelers (SIG, Financial) has released its projected range for the second quarter's adjusted EBITDA, anticipating figures between $99 million and $119 million. This outlook reflects the company's ongoing efforts to optimize its financial performance. Investors closely watch these figures as they provide insights into the company's operational efficiency and profit margins. As the jewelry retailer navigates market challenges, these estimates serve as a benchmark for its financial health and future growth potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Signet Jewelers Ltd (SIG, Financial) is $74.33 with a high estimate of $85.00 and a low estimate of $62.00. The average target implies an upside of 11.26% from the current price of $66.81. More detailed estimate data can be found on the Signet Jewelers Ltd (SIG) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Signet Jewelers Ltd's (SIG, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Signet Jewelers Ltd (SIG, Financial) in one year is $85.73, suggesting a upside of 28.32% from the current price of $66.81. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Signet Jewelers Ltd (SIG) Summary page.
SIG Key Business Developments
Release Date: March 19, 2025
- Revenue: Down 6% year-over-year, but finished ahead of updated guidance.
- Same-Store Sales: Down 1.1%.
- Gross Margin: Adjusted gross margin of $1 billion or 42.6% of sales, down 70 basis points from last year.
- SG&A Expenses: Adjusted expense down $32 million to $638 million; SG&A rate up 30 basis points.
- Adjusted Operating Income: $356 million for the quarter.
- Adjusted EPS: $6.62, nearly in line with last year.
- Inventory: Ended the year at $1.9 billion, roughly flat to last year.
- Free Cash Flow: $438 million, approximately 88% cash conversion of adjusted operating income.
- Dividend: Quarterly dividend raised by 10% to $0.32 per share.
- Total Liquidity: Ended the year with $1.7 billion.
- Guidance - Q1 Sales: Expected between $1.5 billion to $1.53 billion.
- Guidance - Q1 Adjusted Operating Income: Expected between $48 million to $60 million.
- Guidance - FY Sales: Expected between $6.53 billion to $6.8 billion.
- Guidance - FY Adjusted Operating Income: Expected between $420 million to $510 million.
- Guidance - EPS: Expected in the range of $7.31 to $9.10 per diluted share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Signet Jewelers Ltd (SIG, Financial) reported positive same-store sales in January and quarter-to-date, driven by quick adjustments in inventory and assortment gaps.
- The company is launching a transformative strategy called 'Grow Brand Love' to accelerate growth by focusing on brand loyalty, style innovation, and captivating customer experiences.
- Signet Jewelers Ltd (SIG) plans to modernize its go-to-market strategy, creating clear brand distinctions and leveraging in-house design capabilities for faster market releases.
- The company is centralizing its sourcing practices to leverage buying power and improve agility, aiming for greater transparency and competitive pricing.
- Signet Jewelers Ltd (SIG) is realigning its real estate portfolio, planning to close underperforming stores and reposition others to optimize sales transference and reduce mall revenue penetration.
Negative Points
- Revenue for the quarter was down 6% compared to last year, reflecting challenges in key gifting price points and a softer fashion performance.
- The company experienced a decline in same-store sales by 1.1%, with a larger gap due to the cycling of the 53rd week in the prior year.
- Adjusted gross margin decreased by 70 basis points, impacted by fixed cost leverage and year-end adjustments in digital brands.
- Signet Jewelers Ltd (SIG) anticipates a measured consumer environment, with guidance reflecting potential variability in consumer spending.
- The company is undergoing a significant reorganization, including a 30% reduction in senior leadership, which may pose challenges in execution and transition.
