Bermuda
|
||
(State or other jurisdiction of
|
(IRS Employer
|
|
incorporation)
|
Identification No.)
|
Signet Jewelers Ltd (NYSE and LSE: SIG)
|
Embargoed until 7.30 a.m. (EDT)
|
Results for the 13 and 52 weeks ended January 30, 2010
|
March 25,
2010
|
· |
Same store sales down 0.4% |
· |
Income before income taxes of $241.8 million |
· |
Basic earnings per share $1.92, above guidance provided in January 2010 of $1.76 to $1.84 |
· |
Year end net debt(1) of $7.9 million |
· |
Positive free cash flow(1) of $471.9 million against target of $175 million to $225 million |
· |
Significantly exceeded working capital reduction objectives |
· |
Slightly exceeded $100 million cost saving program |
· |
Positive free cash flow(1) of between $150 million and $200 million |
· |
Controllable costs(3) little changed from fiscal 2010 at constant exchange rates |
· |
Capital expenditure of about $80 million |
|
Ended January 30 2010
|
Ended January 31 2009
|
Change
|
|
|
|
|
|
up 5.2%
|
down 14.9%
|
|
|
|
|
|
·
Total sales
|
$1,203.6m
|
$1,123.6m
|
up 7.1%
|
At constant exchange rates
(1)
|
|
|
up 4.7%
|
|
|
|
|
·
Operating income/(loss)
|
$179.9m
|
$(366.5)m
|
|
Underlying operating income
(1,2)
|
$181.5m
|
$150.4m
|
up 20.7%
|
|
|
|
|
·
Income/(loss) before income taxes
|
$172.4m
|
$(373.6)m
|
|
Underlying income before income taxes
(1,2)
|
$174.0m
|
$143.3m
|
up 21.4%
|
|
|
|
|
·
Basic earnings/(loss) per share
|
$1.37
|
$(4.97)
|
|
Underlying basic earnings per share
(1,2)
|
$1.45
|
$1.12
|
up 29.5%
|
|
Ended January 30 2010
|
Ended January 31 2009
|
Change
|
|
|
|
|
·
Same store sales
|
down 0.4%
|
down 8.2%
|
|
|
|
|
|
·
Total sales
|
$3,290.7m
|
$3,344.3m
|
down 1.6%
|
At constant exchange rates
(1)
|
|
|
up 0.6%
|
|
|
|
|
·
Operating income
|
$275.8m
|
$(297.3)m
|
|
Underlying operating income
(1,2)
|
$262.4m
|
$230.1m
|
up 14.0%
|
|
|
|
|
·
Income/(loss) before income taxes
|
$241.8m
|
$(326.5)m
|
|
Underlying income before income taxes
(1,2)
|
$228.4m
|
$200.9m
|
up 13.7%
|
|
|
|
|
·
Basic earnings/(loss) per share
|
$1.92
|
$(4.62)
|
|
Underlying basic earnings per share
(1,2)
|
$1.83
|
$1.57
|
up 16.6%
|
Change in sales
|
|
|
US
%
|
UK
%
|
Signet
%
|
|
|
|
|
|
|
Same store sales
|
|
|
7.4
|
(1.5)
|
5.2
|
Change in net new store space
|
|
|
(0.6)
|
(0.1)
|
(0.5)
|
Change at constant exchange rates
|
|
|
6.8
|
(1.6)
|
4.7
|
Exchange translation
|
|
|
-
|
9.7
|
2.4
|
Total sales growth as reported
|
|
|
6.8
|
8.1
|
7.1
|
|
|
|
|
|
|
Sales, million
|
|
|
$920.8
|
$282.8
|
$1,203.6
|
% of total
|
|
|
76.5%
|
23.5%
|
100.0%
|
Change in operating margin
|
US
%
|
UK
%
|
Signet
%
|
Q4 fiscal 2009 underlying operating margin
(1)
|
9.4
|
26.6
|
13.4
(2
)
|
Gross merchandise margin movement
|
(0.3)
|
(0.9)
|
(0.5)
|
Expenses leverage/(deleverage)
|
4.6
|
(4.3)
|
2.2
|
Q4 fiscal 2010 underlying operating margin
(1)
|
13.7
|
21.4
|
15.1
(2)
|
Change in US vacation entitlement policy
|
(0.2)
|
-
|
(0.2)
|
Q4 fiscal 2010 operating margin
|
13.5
|
21.4
|
14.9
(2)
|
|
|
|
|
Change in sales
|
US
%
|
UK
%
|
Signet
%
|
Same store sales
|
0.2
|
(2.4)
|
(0.4)
|
Change in net new store space
|
0.6
|
2.3
|
1.0
|
Change at constant exchange rates
|
0.8
|
(0.1)
|
0.6
|
Exchange translation(1)
|
-
|
(9.2)
|
(2.2)
|
Total sales growth as reported
|
0.8
|
(9.3)
|
(1.6)
|
|
|
|
|
Sales, million
|
$2,557.5
|
$733.2
|
$3,290.7
|
% of total
|
77.7%
|
22.3%
|
100.0%
|
Change in operating margin
|
US
%
|
UK
%
|
Signet
%
|
Fiscal 2009 underlying operating margin
(1)
|
6.8
|
8.8
|
6.9
(2)
|
Gross merchandise margin movement
|
0.4
|
(0.2)
|
0.2
|
Expenses leverage/(deleverage)
|
1.5
|
(0.9)
|
0.9
|
Fiscal 2010 underlying operating margin
(1)
|
8.7
|
7.7
|
8.0
(2)
|
Change in US vacation entitlement policy
|
0.5
|
-
|
0.4
|
Fiscal 2010 operating margin
|
9.2
|
7.7
|
8.4
(2)
|
|
Fiscal
2010
|
Fiscal
2009
|
|
($ million)
|
|
Net income/(loss)
|
164.1
|
(393.7)
|
Adjustments to reconcile to cash flows provided by operations
|
129.8
|
653.5
|
Net income adjusted for non-cash items(1)
|
293.9
|
259.8
|
Changes in operating assets and liabilities
|
221.5
|
(95.4)
|
Net cash from operating activities
|
515.4
|
164.4
|
Net cash flows used in investing activities
|
(43.5)
|
(113.3)
|
Free cash flow(1)
|
471.9
|
51.1
|
Facility amendment fees
|
(9.3)
|
-
|
Dividends paid
|
-
|
(123.8)
|
Net change in common shares
|
1.0
|
0.1
|
|
463.6
|
(72.6)
|
Cash & cash equivalents less total debt at start of period
|
(470.7)
|
(374.6)
|
Effect of exchange rate changes on cash & cash equivalents
|
(0.8)
|
(32.9)
|
Effect of exchange rate changes on debt
|
_ -
|
9.4
|
Cash and cash equivalents less total debt at end of period
|
(7.9)
|
(470.7)
|
|
|
|
Change on previous year
|
||
|
Sales
|
Average
|
Reported
|
Same
|
Average
|
|
|
unit
|
sales
|
store
|
unit
|
|
|
selling
|
|
sales
|
selling
|
Fourth quarter
|
|
price
|
|
|
price
|
Kay
|
$558.1m
|
$274
|
7.4%
|
7.7%
|
(7.6)%
|
Regional brands
|
$115.0m
|
$288
|
(7.0)%
|
2.8%
|
(5.1)%
|
Jared
|
$247.7m
|
$660
(1)
|
13.2%
|
9.1%
|
(3.3)%
(1)
|
US
|
$920.8m
|
$270
|
6.8%
|
7.4%
|
(
19.6)%
|
|
|
|
Change on previous year
|
||
|
Sales
|
Average
|
Reported
|
Same
|
Average
|
|
|
unit
|
sales
|
store
|
unit
|
|
|
selling
|
|
sales
|
selling
|
Fiscal 2010
|
|
price
|
|
|
price
|
Kay
|
$1,508.2m
|
$307
|
4.8%
|
4.4%
|
(7.4)%
|
Regional brands
|
$326.8m
|
$329
|
(11.9)%
|
(4.0)%
|
(4.8)%
|
Jared
|
$722.5m
|
$713
(1)
|
(0.5)%
|
(6.0)%
|
(7.3)%
(1)
|
US
|
$2,557.5m
|
$324
|
0.8%
|
0.2%
|
(16.8)%
|
|
|
|
Change on previous year
|
|||
|
Sales
|
Average
|
Reported
|
Sales at
|
Same
|
Average
|
|
|
unit
|
sales
|
constant
|
store
|
unit
|
|
|
selling
|
|
exchange
|
sales
|
selling
|
Fourth quarter
|
|
price
|
|
rates
|
|
price
|
H.Samuel
|
$157.8m
|
£52
|
5.6%
|
(2.6)%
|
(1.9)%
|
7.6%
|
Ernest Jones
|
$123.9m
|
£213
(1)
|
11.0%
|
(0.4)%
|
(0.9)%
|
15.0%
(1)
|
Other
|
$1.1m
|
na
|
na
|
na
|
na
|
na
|
UK
|
$282.8m
|
£75
|
8.1%
|
(1.6)%
|
(1.5)%
|
3.9%
|
|
|
|
Change on previous year
|
|||
|
Sales
|
Average
|
Reported
|
Sales at
|
Same
|
Average
|
|
|
unit
|
sales
|
constant
|
store
|
unit
|
|
|
selling
|
|
exchange
|
sales
|
selling
|
Fiscal 2010
|
|
price
|
|
rates
|
|
price
|
H.Samuel
|
$394.0m
|
£52
|
(10.0)%
|
(1.0)%
|
(1.7)%
|
7.8%
|
Ernest Jones
|
$333.5m
|
£228(1)
|
(8.5)%
|
0.7%
|
(3.2)%
|
12.5%(1)
|
Other
|
$5.7m
|
na
|
na
|
na
|
na
|
na
|
UK
|
$733.2m
|
£78
|
(
9.3)%
|
(0.1)%
|
(2.4)%
|
5.5%
|
· |
enhance Signet's position as the strongest middle market specialty retail jeweler; |
· |
focus on profit and cash flow maximization to maintain a strong balance sheet; and |
· |
reduce business risk. |
· |
Controllable costs to be little changed from fiscal 2010 at constant exchange rates, that is costs excluding net bad debt charge, expenses that vary with sales, the US vacation entitlement policy change and the impact from amendments to the Truth in Lending Act |
· |
Capital expenditure of about $80 million |
· |
Positive free cash flow of between $150 million and $200 million |
|
Kay
|
Kay
|
|
|
|
Net space
|
|
mall
|
Off-mall
|
Regionals
|
Jared
(1)
|
Total
|
change
|
January 2009
|
795
|
131
|
304
|
171
|
1,401
|
4%
|
Opened
|
5(2)
|
3
|
1
|
7
|
16
|
|
Closed
|
(6)
|
(5)
|
(45)
(2)
|
-
|
(56)
|
|
January 2010
|
794
|
129
|
260
|
178
|
1,361
|
(1)%
|
Openings (planned)
|
4
|
2
|
-
|
2
|
8
|
|
Closures (forecast)
|
(10)
|
(4)
|
(36)
|
-
|
(50)
|
|
January 2011
|
788
|
127
|
224
|
180
|
1,319
|
(2)%
|
|
H.Samuel
|
Ernest Jones
(1)
|
Total
|
January 2009
|
352
|
206
|
558
|
Opened
|
-
|
1
|
1
|
Closed
|
(5)
|
(2)
|
(7)
|
January 2010
|
347
|
205
|
552
|
Openings (planned)
|
-
|
-
|
-
|
Closures (forecast)
|
(10)
|
(5)
|
(15)
|
January 2011
|
337
|
200
|
537
|
|
US dial-in:
|
+1
718 354 1387
|
|
|
US 48hr. replay:
|
+1 347 366 9565
|
Pass code: 2841486#
|
|
|
|
|
|
European dial-in:
|
+44
(0)20 7806 1953
|
|
|
European 48hr. replay:
|
+44 (0)20 7111 1244
|
Pass code: 2841486#
|
Enquiries:
|
Terry Burman, Chief Executive
|
+1 441 296 5872
|
|
Walker Boyd, Finance Director
|
+1 441 296 5872
|
|
|
|
Press:
|
Alecia Pulman, ICR, Inc.
|
+1 (646) 277 1220
|
|
Jonathan Glass, Brunswick
|
+44 (0)20 7404 5959
|
|
13 weeks ended
|
13 weeks ended
|
|
|
|
|
January 30, 2010
|
January 31,
2009
|
Fiscal
2010
|
Fiscal
2009
|
|
|
$million
|
$million
|
$million
|
$million
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
1,203.6
|
1,123.6
|
3,290.7
|
3,344.3
|
2
|
Cost of sales
|
(769.5)
|
(745.1)
|
(2,213.8)
|
(2,264.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
434.1
|
378.5
|
1,076.9
|
1,080.1
|
|
Selling, general and administrative expenses
|
(282.6)
|
(260.3)
|
(916.5)
|
(969.2)
|
|
Impairment of goodwill
|
-
|
(516.9)
|
-
|
(516.9)
|
|
Relisting costs
|
-
|
-
|
-
|
(10.5)
|
|
Other operating income, net
|
28.4
|
32.2
|
115.4
|
119.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss), net
|
179.9
|
(366.5)
|
275.8
|
(297.3)
|
2
|
Interest income
|
0.1
|
0.5
|
0.8
|
3.6
|
|
Interest expense
|
(7.6)
|
(7.6)
|
(34.8)
|
(32.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes
|
172.4
|
(373.6)
|
241.8
|
(326.5)
|
|
Income taxes
|
(55.2)
|
(50.4)
|
(77.7)
|
(67.2)
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
|
117.2
|
(424.0)
|
164.1
|
(393.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share - basic
|
$1.37
|
$ (4.97)
|
$1.92
|
$ (4.62)
|
5
|
- diluted
|
$1.36
|
$ (4.97)
|
$1.91
|
$ (4.62)
|
5
|
|
|
|
|
|
|
|
January 30, 2010
|
January 31, 2009
|
|
|
$million
|
$million
|
Notes
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
316.2
|
96.8
|
|
Accounts receivable, net
|
858.0
|
825.2
|
|
Other receivables
|
27.9
|
81.8
|
|
Other current assets
|
58.4
|
45.0
|
|
Deferred tax assets
|
2.2
|
-
|
|
Inventories
|
1,173.1
|
1,364.4
|
7
|
|
|
|
|
|
|
|
|
Total current assets
|
2,435.8
|
2,413.2
|
|
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
Property, plant and equipment, net of accumulated depreciation of $
566.0 million,
and
$
572.6 million, respectively
|
396.9
|
452.1
|
|
Other intangible assets, net
|
24.2
|
23.9
|
|
Other assets
|
12.6
|
9.9
|
|
Deferred tax assets
|
54.7
|
54.8
|
|
|
|
|
|
|
|
|
|
Total assets
|
2,924.2
|
2,953.9
|
2
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Loans and overdrafts
|
44.1
|
187.5
|
|
Accounts payable
|
66.2
|
42.2
|
|
Accrued expenses and other current liabilities
|
272.1
|
274.8
|
|
Deferred revenue
|
120.1
|
120.1
|
8
|
Deferred tax liabilities
|
74.7
|
56.9
|
|
Income taxes payable
|
44.1
|
55.8
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
621.3
|
737.3
|
|
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
Long-term debt
|
280.0
|
380.0
|
|
Other liabilities
|
79.6
|
71.5
|
|
Deferred revenue
|
140.9
|
142.5
|
8
|
Retirement benefit obligation
|
4.8
|
12.9
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
1,126.6
|
1,344.2
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (note 10)
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
Common shares of $0.18 par value: authorized 500 million shares, 85.5 million shares issued and outstanding (2009: 85.3 million shares issued and outstanding)
|
15.4
|
15.3
|
|
Additional paid-in capital
|
169.9
|
164.5
|
|
Other reserves
|
235.2
|
235.2
|
|
Treasury shares:
0.03 million shares of $0.18 par value
(2009: 0.1 million shares)
|
(1.1)
|
(10.7)
|
|
Retained earnings
|
1,556.4
|
1,400.9
|
|
Accumulated other comprehensive loss
|
(178.2)
|
(195.5)
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
1,797.6
|
1,609.7
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
2,924.2
|
2,953.9
|
|
|
|
|
|
|
|
|
|
|
13 weeks ended
|
13 weeks ended
|
|
|
|
January 30, 2010
|
January 31,
2009
|
Fiscal
2010
|
Fiscal
2009
|
|
$million
|
$million
|
$million
|
$million
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
:
|
|
|
|
|
Net income/(loss)
|
117.2
|
(424.0)
|
164.1
|
(393.7)
|
Adjustments to reconcile net income/(loss) to cash flows provided by operations:
|
|
|
|
|
Depreciation of property, plant and equipment
|
26.3
|
27.8
|
101.0
|
108.1
|
Amortization of other intangible assets
|
2.4
|
2.2
|
7.9
|
6.4
|
Impairment of goodwill
|
-
|
516.9
|
-
|
516.9
|
Pension
|
(2.5)
|
(0.6)
|
(5.3)
|
0.2
|
Share-based compensation
|
1.3
|
(0.1)
|
5.6
|
0.7
|
Deferred taxation
|
15.1
|
19.6
|
15.5
|
24.7
|
Facility amendment fees included in net income
|
0.3
|
-
|
4.3
|
-
|
Other non-cash movements
|
1.7
|
(1.4)
|
0.8
|
(2.8)
|
Profit on disposal of property, plant and equipment
|
(0.4)
|
(0.8)
|
-
|
(0.7)
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
(Increase)/decrease in accounts receivable
|
(127.9)
|
(108.6)
|
(32.4)
|
20.5
|
(Increase)/decrease in other receivables
|
(4.0)
|
(13.0)
|
51.4
|
(18.2)
|
(Increase)/decrease in other current assets
|
(11.4)
|
3.2
|
(27.7)
|
1.4
|
Decrease in inventories
|
127.3
|
160.2
|
226.5
|
12.7
|
(Decrease)/increase in accounts payable
|
(72.9)
|
(81.0)
|
22.0
|
(38.0)
|
Increase/(decrease) in accrued expenses and other liabilities
|
42.7
|
26.7
|
(5.5)
|
6.1
|
Increase/(decrease) in deferred revenue
|
25.9
|
22.0
|
(2.3)
|
(9.8)
|
Increase/(decrease) in income taxes payable
|
24.5
|
23.7
|
(9.8)
|
(20.5)
|
Effect of exchange rate changes on currency swaps
|
0.7
|
(7.5)
|
(0.7)
|
(49.6)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
166.3
|
165.3
|
515.4
|
164.4
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Purchase of property, plant and equipment
|
(11.4)
|
(14.0)
|
(35.8)
|
(105.1)
|
Purchase of other intangible assets
|
(1.8)
|
(3.7)
|
(7.8)
|
(9.8)
|
Proceeds from sale of property, plant and equipment
|
-
|
0.8
|
0.1
|
1.6
|
|
|
|
|
|
|
|
|
|
|
Net cash flows used in investing activities
|
(13.2)
|
(16.9)
|
(43.5)
|
(113.3)
|
|
|
|
|
|
|
|
|
|
|
Financing activities
:
|
|
|
|
|
Dividends paid
|
-
|
(16.4)
|
-
|
(123.8)
|
Proceeds from issue of common shares
|
0.1
|
0.1
|
1.0
|
0.1
|
Facility amendment fees paid
|
-
|
-
|
(9.3)
|
-
|
Proceeds from/(repayment of) short-term borrowings
|
27.8
|
(39.1)
|
(143.4)
|
160.6
|
Repayment of long-term debt
|
-
|
-
|
(100.0)
|
-
|
|
|
|
|
|
|
|
|
|
|
Net cash flows provided by/(used in) financing activities
|
27.9
|
(55.4)
|
(251.7)
|
36.9
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
139.6
|
35.5
|
96.8
|
41.7
|
Increase in cash and cash equivalents
|
181.0
|
93.0
|
220.2
|
88.0
|
Effect of exchange rate changes on cash and cash equivalents
|
(4.4)
|
(31.7)
|
(0.8)
|
(32.9)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
316.2
|
96.8
|
316.2
|
96.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares at par value
|
Additional paid-in capital
|
Other reserves
|
Treasury shares
|
Retained earnings
|
Accumulated other comprehensive (loss)/income
|
Total shareholders' equity
|
|
$million
|
$million
|
$million
|
$million
|
$million
|
$million
|
$million
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 31, 2009
|
15.3
|
164.5
|
235.2
|
(10.7)
|
1,400.9
|
(195.5)
|
1,609.7
|
Net income
|
-
|
-
|
-
|
-
|
164.1
|
-
|
164.1
|
Foreign currency translation adjustments
|
-
|
-
|
-
|
-
|
-
|
21.4
|
21.4
|
Changes in fair value of derivative instruments, net of tax
|
-
|
-
|
-
|
-
|
-
|
(7.0)
|
(7.0)
|
Actuarial gains and losses on pension scheme, net of tax
|
-
|
-
|
-
|
-
|
-
|
3.6
|
3.6
|
Prior service costs on pension scheme, net of tax
|
-
|
-
|
-
|
-
|
-
|
(0.7)
|
(0.7)
|
Reclassification of loss on share options exercised in prior periods
|
-
|
-
|
-
|