Signet Jewelers Reports Holiday Season Same Store Sales up 4.9%

HAMILTON, Bermuda–(BUSINESS WIRE)–Signet Jewelers Limited (“Signet”) (NYSE and LSE: SIG), the world’s
largest retailer of diamond jewelry, today announced its sales for the
eight weeks ended December 26, 2015 (“Holiday Season”) and guidance for
the 13 weeks (“Fourth Quarter”) ending January 30, 2016.

Holiday Season Sales Highlights:

  • Total sales of $1,947.8 million, up 5.0% over the prior year.
  • Same store sales increased 4.9% compared to an increase of 3.6% in the
    prior year.
  • Financial guidance narrowed to top end of previously provided guidance.

Mark Light, Chief Executive Officer, said, “Signet delivered excellent
holiday sales as a result of the successful execution of our product,
marketing, and omni-channel selling strategies, as well as our superior
customer experience. These results were driven by broad-based success
across strategic store brands, merchandise categories and selling
channels. The implementation of store operations initiatives in the
third quarter combined with investment in our recently launched
innovative merchandising and marketing programs positioned Signet well
for a strong fourth quarter and beyond.

“The continuation of strong sales and profitability combined with
operating expenses that were in-line with expectations, including
as-anticipated credit-related expense trends, enabled us to narrow our
fourth quarter earnings guidance as well as our same store sales
guidance to the top end of the previously provided guidance.

“I would like to thank all Signet team members very much for their
dedication, hard work, and solid execution of our strategies during the
holiday selling period.”

Fourth Quarter Financial Guidance:

         

Currently

         

Formerly

Same Store Sales

4.6% to 5.0%

3.5% to 5.0%
Earnings per Share

$3.44 to $3.50

$3.30 to $3.50
Adjusted Earnings per Share

$3.54 to $3.60

$3.40 to $3.60
 

Holiday Season Fiscal 2016 Sales Highlights:

Total sales were $1,947.8 million, up $93.4 million or 5.0%, compared to
$1,854.4 million in the eight weeks ended December 27, 2014 (“prior
year”). Total sales at constant exchange rate increased 6.3% compared to
prior year. Same store sales increased 4.9% compared to an increase of
3.6% in the prior year driven primarily by mall-based and outlet
concepts in the U.S. as well as Ernest Jones stores in the U.K. Signet’s
e-commerce sales in the Holiday Season were $139.7 million, up $13.7
million or 10.9% compared to $126.0 million in the prior year.

  • Sterling Jewelers division results were driven primarily by higher
    sales at Kay Jewelers and the success of key collections and
    categories such as recently introduced Ever Us two-stone rings as well
    as diamond earrings and bracelets. Jared delivered higher sales
    year-over-year driven by the combined impact of new
    consumer-research-driven initiatives around store operations,
    marketing, and merchandising.
  • Zale division sales were driven by material increases at the flagship
    Zales stores as well as Piercing Pagoda kiosks. Ever Us and select
    other fashion and bridal brands were important drivers at Zales; as
    well as gold jewelry sales in the kiosk channel.
  • UK Jewelry division total sales were driven by higher same store sales
    largely offset by unfavorable foreign currency exchange rates. Same
    store sales increases were driven primarily by branded bridal, diamond
    fashion jewelry, and beads – most notably at Ernest Jones.
Sales change from previous year      
      Same       Non-same       Total sales       Exchange      
Holiday Season store store at constant translation Total Total sales
Fiscal 2016       sales       sales, net       exchange rate       impact       sales       (in mill $)
 
Kay 7.2 % 1.7 % 8.9 % 8.9 %   778.0
Jared 2.7 % 4.1 % 6.8 % 6.8 % 359.1
Regional brands       (1.8) %       (6.9 )%       (8.7 )%               (8.7 )%         59.8
Sterling Jewelers division       5.3 %       1.9 %       7.2 %               7.2 %         1,196.9
Zales Jewelers 6.4 % 1.2 % 7.6 % 7.6 % 378.2
Gordon’s Jewelers (7.2 )% (8.8 )% (16.0 )% (16.0 )% 22.0
Zale US Jewelry 5.6 % 0.4 % 6.0 % 6.0 % 400.2
Peoples Jewellers (2.0) % 0.9 % (1.1) % (15.4 )% (16.5 )% 62.9
Mappins (8.2 )% (3.1 )% (11.3 )% (14.1 )% (25.4 )% 9.4
Zale Canada Jewelry (2.8) % 0.2 % (2.6) % (15.1 )% (17.7 )% 72.3
Zale Jewelry 4.2 % 0.4 % 4.6 % (3.1 )% 1.5 % 472.5
Piercing Pagoda       7.2 %       1.8 %       9.0 %               9.0 %         60.4
Zale division       4.5 %       0.5 %       5.0 %       (2.7 )%       2.3 %         532.9
H.Samuel 1.6 % 0.2 % 1.8 % (4.0 )% (2.2 )% 119.0
Ernest Jones       6.9 %       2.1 %       9.0 %       (4.1 )%       4.9 %         98.0
UK Jewelry division       3.9 %       1.0 %       4.9 %       (4.0 )%       0.9 %         217.0
Other segment       %       (50.0) %       (50.0) %       %       (50.0) %         1.0
Signet       4.9 %       1.4 %       6.3 %       (1.3 )%       5.0 %         1,947.8
Adjusted Signet1                                                 1,951.4

1 Includes $3.6 million deferred revenue adjustment related
to acquisition accounting which resulted in a reset of deferred revenue
associated with extended service plans sold by Zale Corporation prior to
the acquisition on May 29, 2014.

Quarterly Dividend:

Signet’s board declared a quarterly cash dividend of $0.22 per share for
the fourth quarter of Fiscal 2016, payable on February 26, 2016 to
shareholders of record on January 29, 2016, with an ex-dividend date of
January 28, 2016. This reflects the Board’s confidence in the strength
of the business, Signet’s ability to invest in growth initiatives, and
the Board’s commitment to building long-term shareholder value.

Conference Call:

There will be a conference call today at 8:30 a.m. ET (1:30 p.m. GMT and
5:30 a.m. PT) and a simultaneous audio webcast and slide presentation
available at www.signetjewelers.com.
The slides are available to be downloaded from the website ahead of the
conference call. The call details are: Dial-in 1-647-788-4901. Access
code 3157781.

A replay of the conference call and a transcript of the call will be
posted on Signet’s website as soon as is practical after the call has
ended and will be available for one year.

About Signet and Safe Harbor Statement:

Signet Jewelers Limited is the world’s largest retailer of diamond
jewelry. Signet operates approximately 3,600 stores primarily under the
name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry,
H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. Further information
on Signet is available at www.signetjewelers.com.
See also www.kay.com,
www.zales.com,
www.jared.com,
www.hsamuel.co.uk,
www.ernestjones.co.uk,
www.peoplesjewellers.com
and www.pagoda.com.

This release contains statements which are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements, based upon management’s beliefs and expectations
as well as on assumptions made by and data currently available to
management, include statements regarding, among other things, Signet’s
results of operation, financial condition, liquidity, prospects, growth,
strategies and the industry in which Signet operates. The use of the
words “expects,” “intends,” “anticipates,” “estimates,” “predicts,”
“believes,” “should,” “potential,” “may,” “forecast,” “objective,”
“plan,” or “target,” and other similar expressions are intended to
identify forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to a number of
risks and uncertainties, including but not limited to general economic
conditions, risks relating to Signet being a Bermuda corporation, the
merchandising, pricing and inventory policies followed by Signet, the
reputation of Signet and its brands, the level of competition in the
jewelry sector, the cost and availability of diamonds, gold and other
precious metals, regulations relating to customer credit, seasonality of
Signet’s business, financial market risks, deterioration in customers’
financial condition, exchange rate fluctuations, changes in Signet’s
credit rating, changes in consumer attitudes regarding jewelry,
management of social, ethical and environmental risks, security breaches
and other disruptions to Signet’s information technology infrastructure
and databases, inadequacy in and disruptions to internal controls and
systems, changes in assumptions used in making accounting estimates
relating to items such as extended service plans and pensions, the
impact of the acquisition of Zale Corporation on relationships,
including with employees, suppliers, customers and competitors, and our
ability to successfully integrate Zale’s operations and to realize
synergies from the transaction.

For a discussion of these and other risks and uncertainties which could
cause actual results to differ materially from those expressed in any
forward-looking statement, see the “Risk Factors” section of Signet’s
Fiscal 2015 Annual Report on Form 10-K filed with the SEC on March 26,
2015. Signet undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or
circumstances, except as required by law.

Contacts

Signet Jewelers
Investors:
James Grant, VP Investor Relations
+1-330-668-5412
or
Media:
David
Bouffard, VP Corporate Affairs
+1-330-668-5369