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Signet Q1 Sales $1.4B As e-Commerce Rises But Same Store Sales Decline

Signet Jewelers reported total sales of $1.43 billion for the first quarter of fiscal 2020 (13 weeks ended May 4, 2019), down 3.3 percent on a reported basis and down 2.6 percent on a constant currency basis. Free cash flow was $80.8 million, an increase of $79 million over the same quarter in the previous year.

Total same store sales performance decreased 1.3 percent year-over-year. However, e-Commerce sales were $154.3 million, up 5.3 percent year over year. The company said e-Commerce sales accounted for 10.8 percent of sales, up from 9.9 percent of total sales in the prior year quarter. Brick and mortar same store sales declined 2 percent.

The company’s guidance for fiscal 2020 is that total sales will be between $6- and $6.06 billion, with same store sales down between 1.5 and 2.5 percent. Operating income for the year is projected at between $190- and $225 million.

“We delivered operating profit above our guidance range and strong free cash flow in the first quarter, with same store sales at the low end of our guidance,” said Signet Chief Executive Officer Virginia Drosos. “Given the sales trends we experienced year to date and softening retail traffic, we are narrowing our Fiscal 2020 guidance while continuing to expect strong progress on cost savings across our business.”

She added, “We remain focused on executing our Path to Brilliance transformation initiatives to improve the trajectory of our same store sales and drive higher profitability over the long-term.”

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