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Signet Jewelers Limited (SIG) has submitted its Form 10-Q filing for the quarterly period ended November 2, 2024.
The filing reveals a decrease in total sales by 3.1% to $1.35 billion compared to $1.39 billion in the same quarter last year. The decrease is attributed to operational challenges at the digital banners, the impact of hurricanes in the Southern US, and a slower than expected engagement recovery.
Gross margin was reported at $485.3 million, maintaining a margin of 36% of sales, consistent with the previous year. The company noted that growth in services and new merchandise helped offset the impact of lower sales volume.
Selling, general, and administrative expenses were $469.6 million, representing 34.8% of sales, unchanged from last year. The expenses include higher advertising costs and fixed labor costs.
Net income for the quarter was $7.0 million, down from $11.7 million in the previous year. The company incurred restructuring charges and asset impairment expenses, which impacted the overall profitability.
Signet reported a net cash outflow from operating activities of $189.8 million for the year to date, compared to an outflow of $205.3 million in the prior year. This change was primarily due to the payment of litigation settlements in the prior year.
The company completed the redemption of all outstanding Preferred Shares, settling them in cash totaling $401.5 million during the second and third quarters.
Signet also repurchased $113.8 million of common shares during the 39 weeks ended November 2, 2024, with $747.3 million of shares authorized for repurchase remaining.
The company forecasts same store sales to be down 2% to 3% for the full fiscal year 2025, with expectations of a positive holiday performance driven by new fashion assortments and services.
The filing provides detailed financial statements and notes, including information on segment performance, cash flow activities, and recent accounting pronouncements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Signet Jewelers Limited quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.