HAMILTON, Bermuda - Signet Jewelers Limited (NYSE:SIG), the world's largest retailer of diamond jewelry, reported fourth-quarter earnings that exceeded analyst expectations but issued a weaker-than-expected outlook for the first quarter and full fiscal year 2025, sending its shares down 5.47% in premarket trading.
For the fourth quarter, the company posted adjusted earnings per share (EPS) of $6.73, surpassing the analyst estimate of $6.35. However, revenue fell short of expectations at $2.5 billion, compared to the consensus estimate of $2.54 billion. The company's revenue declined 6.3% compared to the same period last year, reflecting challenges in the jewelry sector.
Looking ahead, Signet anticipates first-quarter fiscal 2025 revenue to range between $1.47 billion and $1.53 billion, which falls below the analyst consensus of $1.662 billion. For the full fiscal year 2025, the company expects adjusted EPS between $9.08 and $10.48, with revenue projections of $6.66 billion to $7.02 billion, both of which are below the consensus estimates of $10.47 EPS and $7.15 billion in revenue.
Signet's CEO Virginia C. Drosos commented on the results, "Our team delivered on our expectations and navigated a challenging quarter and year for the industry. We are positioned to win new customers through our marketing personalization and service business expansion." She also highlighted the company's strategic initiatives and cost diligence, which are expected to drive operating income and result in cost savings of $150 million to $180 million this year.
The company plans to address challenges with a $350 million cost reduction initiative over the next three years and has increased its share repurchase authorization to $850 million while boosting its common dividend by 26%.
Signet's financial health remains robust, with $1.4 billion in cash and cash equivalents and over $600 million in free cash flow generated in fiscal 2024, excluding non-recurring legal settlements. Despite the weaker guidance, the company's leadership expressed confidence in their flexible operating model and strategic growth initiatives moving forward.
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