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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Signet Jewelers Ltd | NYSE:SIG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
2.83 | 3.00% | 97.18 | 98.35 | 94.57 | 95.39 | 900,376 | 01:00:00 |
FORM 10-Q
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x
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Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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for the quarterly period ended October 28, 2017 or
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¨
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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SIGNET JEWELERS LIMITED
(Exact name of Registrant as specified in its charter)
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Bermuda
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Not Applicable
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(State or other jurisdiction of incorporation)
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(I.R.S. Employer Identification No.)
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PAGE
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PART I
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FINANCIAL INFORMATION
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ITEM 1.
|
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Financial Statements (Unaudited)
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Condensed Consolidated Income Statements
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Condensed Consolidated Statements of Comprehensive Income (Loss)
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Condensed Consolidated Balance Sheets
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Condensed Consolidated Statements of Cash Flows
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Condensed Consolidated Statement of Shareholders’ Equity
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Notes to the Condensed Consolidated Financial Statements
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ITEM 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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ITEM 3.
|
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Quantitative and Qualitative Disclosures about Market Risk
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ITEM 4.
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Controls and Procedures
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||||
PART II
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OTHER INFORMATION
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ITEM 1.
|
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Legal Proceedings
|
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ITEM 1A.
|
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Risk Factors
|
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ITEM 2.
|
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Unregistered Sales of Equity and Securities and Use of Proceeds
|
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ITEM 6.
|
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Exhibits
|
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|
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|
|
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|
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13 weeks ended
|
|
39 weeks ended
|
|
|
||||||||||||
(in millions, except per share amounts)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
|
Notes
|
||||||||
Sales
|
$
|
1,156.9
|
|
|
$
|
1,186.2
|
|
|
$
|
3,959.9
|
|
|
$
|
4,138.5
|
|
|
5
|
Cost of sales
|
(835.8
|
)
|
|
(836.2
|
)
|
|
(2,689.7
|
)
|
|
(2,723.2
|
)
|
|
|
||||
Gross margin
|
321.1
|
|
|
350.0
|
|
|
1,270.2
|
|
|
1,415.3
|
|
|
|
||||
Selling, general and administrative expenses
|
(375.9
|
)
|
|
(386.5
|
)
|
|
(1,237.7
|
)
|
|
(1,264.9
|
)
|
|
|
||||
Credit transaction, net
|
(12.2
|
)
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
3
|
||||
Other operating income, net
|
72.5
|
|
|
68.6
|
|
|
221.3
|
|
|
213.6
|
|
|
|
||||
Operating income
|
5.5
|
|
|
32.1
|
|
|
256.4
|
|
|
364.0
|
|
|
5
|
||||
Interest expense, net
|
(16.6
|
)
|
|
(12.7
|
)
|
|
(42.7
|
)
|
|
(36.4
|
)
|
|
|
||||
(Loss) income before income taxes
|
(11.1
|
)
|
|
19.4
|
|
|
213.7
|
|
|
327.6
|
|
|
|
||||
Income taxes
|
7.2
|
|
|
(2.4
|
)
|
|
(45.7
|
)
|
|
(81.9
|
)
|
|
10
|
||||
Net (loss) income
|
$
|
(3.9
|
)
|
|
$
|
17.0
|
|
|
$
|
168.0
|
|
|
$
|
245.7
|
|
|
|
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
(2.2
|
)
|
|
(24.6
|
)
|
|
(2.2
|
)
|
|
7
|
||||
Net (loss) income attributable to common shareholders
|
$
|
(12.1
|
)
|
|
$
|
14.8
|
|
|
$
|
143.4
|
|
|
$
|
243.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Loss) earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.20
|
)
|
|
$
|
0.20
|
|
|
$
|
2.24
|
|
|
$
|
3.19
|
|
|
8
|
Diluted
|
$
|
(0.20
|
)
|
|
$
|
0.20
|
|
|
$
|
2.24
|
|
|
$
|
3.18
|
|
|
8
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
60.1
|
|
|
73.5
|
|
|
64.0
|
|
|
76.4
|
|
|
8
|
||||
Diluted
|
60.1
|
|
|
73.6
|
|
|
64.1
|
|
|
76.5
|
|
|
8
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
$
|
0.31
|
|
|
$
|
0.26
|
|
|
$
|
0.93
|
|
|
$
|
0.78
|
|
|
7
|
|
13 weeks ended
|
|||||||||||||||||||||||||
|
October 28, 2017
|
|
October 29, 2016
|
|||||||||||||||||||||||
(in millions)
|
Pre-tax
amount |
|
Tax
(expense) benefit |
|
After-tax
amount |
|
Pre-tax
amount |
|
Tax
(expense) benefit |
|
After-tax
amount |
|||||||||||||||
Net (loss) income
|
|
|
|
|
$
|
(3.9
|
)
|
|
|
|
|
|
$
|
17.0
|
|
|||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign currency translation adjustments
|
$
|
(6.5
|
)
|
|
$
|
—
|
|
|
(6.5
|
)
|
|
$
|
(28.9
|
)
|
|
$
|
—
|
|
|
(28.9
|
)
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unrealized loss
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
0.2
|
|
|
(0.2
|
)
|
|||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unrealized gain
|
1.3
|
|
|
(0.4
|
)
|
|
0.9
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|||||||||
Reclassification adjustment for (gains) to net income
|
(0.8
|
)
|
|
0.2
|
|
|
(0.6
|
)
|
|
(0.2
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|||||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Actuarial loss
|
(1.1
|
)
|
|
0.2
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
0.7
|
|
|
(0.1
|
)
|
|
0.6
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
(0.5
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
|||||||||
Net curtailment gain and settlement loss
|
(3.7
|
)
|
|
0.7
|
|
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total other comprehensive loss
|
$
|
(10.7
|
)
|
|
$
|
0.6
|
|
|
$
|
(10.1
|
)
|
|
$
|
(27.7
|
)
|
|
$
|
0.4
|
|
|
$
|
(27.3
|
)
|
|||
Total comprehensive loss
|
|
|
|
|
$
|
(14.0
|
)
|
|
|
|
|
|
$
|
(10.3
|
)
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
39 weeks ended
|
|||||||||||||||||||||||||
|
October 28, 2017
|
|
October 29, 2016
|
|||||||||||||||||||||||
(in millions)
|
Pre-tax
amount |
|
Tax
(expense) benefit |
|
After-tax
amount |
|
Pre-tax
amount |
|
Tax
(expense) benefit |
|
After-tax
amount |
|||||||||||||||
Net income
|
|
|
|
|
$
|
168.0
|
|
|
|
|
|
|
$
|
245.7
|
|
|||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign currency translation adjustments
|
$
|
18.6
|
|
|
$
|
—
|
|
|
18.6
|
|
|
$
|
(38.0
|
)
|
|
$
|
—
|
|
|
(38.0
|
)
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unrealized gain
|
0.6
|
|
|
(0.3
|
)
|
|
0.3
|
|
|
0.3
|
|
|
(0.1
|
)
|
|
0.2
|
|
|||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unrealized gain
|
4.5
|
|
|
(1.8
|
)
|
|
2.7
|
|
|
11.2
|
|
|
(3.0
|
)
|
|
8.2
|
|
|||||||||
Reclassification adjustment for (gains) losses to net income
|
(4.1
|
)
|
|
1.0
|
|
|
(3.1
|
)
|
|
2.4
|
|
|
(0.8
|
)
|
|
1.6
|
|
|||||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Actuarial loss
|
(1.1
|
)
|
|
0.2
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
2.2
|
|
|
(0.4
|
)
|
|
1.8
|
|
|
1.2
|
|
|
(0.2
|
)
|
|
1.0
|
|
|||||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(1.3
|
)
|
|
0.2
|
|
|
(1.1
|
)
|
|
(1.5
|
)
|
|
0.3
|
|
|
(1.2
|
)
|
|||||||||
Net curtailment gain and settlement loss
|
(3.7
|
)
|
|
0.7
|
|
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total other comprehensive income (loss)
|
$
|
15.7
|
|
|
$
|
(0.4
|
)
|
|
$
|
15.3
|
|
|
$
|
(24.4
|
)
|
|
$
|
(3.8
|
)
|
|
$
|
(28.2
|
)
|
|||
Total comprehensive income
|
|
|
|
|
$
|
183.3
|
|
|
|
|
|
|
$
|
217.5
|
|
(in millions, except par value per share amount)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
|
Notes
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
113.4
|
|
|
$
|
98.7
|
|
|
$
|
82.7
|
|
|
|
Accounts receivable, net
|
640.1
|
|
|
1,858.0
|
|
|
1,581.1
|
|
|
11
|
|||
Other receivables
|
80.3
|
|
|
95.9
|
|
|
74.2
|
|
|
|
|||
Other current assets
|
145.0
|
|
|
136.3
|
|
|
146.8
|
|
|
|
|||
Income taxes
|
17.3
|
|
|
4.4
|
|
|
20.8
|
|
|
|
|||
Inventories
|
2,466.1
|
|
|
2,449.3
|
|
|
2,649.4
|
|
|
12
|
|||
Total current assets
|
3,462.2
|
|
|
4,642.6
|
|
|
4,555.0
|
|
|
|
|||
Non-current assets:
|
|
|
|
|
|
|
|
||||||
Property, plant and equipment, net of accumulated depreciation of $1,162.7, $1,049.4 and $1,015.4, respectively
|
855.1
|
|
|
822.9
|
|
|
791.1
|
|
|
|
|||
Goodwill
|
867.1
|
|
|
517.6
|
|
|
517.0
|
|
|
13
|
|||
Intangible assets, net
|
410.4
|
|
|
417.0
|
|
|
419.8
|
|
|
13
|
|||
Other assets
|
169.1
|
|
|
165.1
|
|
|
157.5
|
|
|
14
|
|||
Deferred tax assets
|
1.3
|
|
|
0.7
|
|
|
—
|
|
|
|
|||
Retirement benefit asset
|
35.5
|
|
|
31.9
|
|
|
47.1
|
|
|
22
|
|||
Total assets
|
$
|
5,800.7
|
|
|
$
|
6,597.8
|
|
|
$
|
6,487.5
|
|
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||
Loans and overdrafts
|
$
|
291.8
|
|
|
$
|
91.1
|
|
|
$
|
288.8
|
|
|
17
|
Accounts payable
|
324.9
|
|
|
255.7
|
|
|
382.2
|
|
|
|
|||
Accrued expenses and other current liabilities
|
430.5
|
|
|
478.2
|
|
|
402.9
|
|
|
|
|||
Deferred revenue
|
270.3
|
|
|
276.9
|
|
|
256.7
|
|
|
18
|
|||
Income taxes
|
—
|
|
|
101.8
|
|
|
4.4
|
|
|
|
|||
Total current liabilities
|
1,317.5
|
|
|
1,203.7
|
|
|
1,335.0
|
|
|
|
|||
Non-current liabilities:
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
696.8
|
|
|
1,317.9
|
|
|
1,324.2
|
|
|
17
|
|||
Other liabilities
|
244.4
|
|
|
213.7
|
|
|
219.9
|
|
|
|
|||
Deferred revenue
|
646.1
|
|
|
659.0
|
|
|
632.1
|
|
|
18
|
|||
Deferred tax liabilities
|
143.8
|
|
|
101.4
|
|
|
133.4
|
|
|
|
|||
Total liabilities
|
3,048.6
|
|
|
3,495.7
|
|
|
3,644.6
|
|
|
|
|||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
21
|
|||
Series A redeemable convertible preferred shares of $.01 par value: authorized 500 shares, 0.625 shares outstanding (January 28, 2017 and October 29, 2016: 0.625 shares outstanding)
|
613.1
|
|
|
611.9
|
|
|
611.7
|
|
|
6
|
|||
Shareholders’ equity:
|
|
|
|
|
|
|
|
||||||
Common shares of $0.18 par value: authorized 500 shares, 60.4 shares outstanding (January 28, 2017: 68.3 outstanding; October 29, 2016: 69.6 outstanding)
|
15.7
|
|
|
15.7
|
|
|
15.7
|
|
|
|
|||
Additional paid-in capital
|
285.6
|
|
|
280.7
|
|
|
128.5
|
|
|
|
|||
Other reserves
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
|
|
|||
Treasury shares at cost: 26.8 shares (January 28, 2017: 18.9 shares; October 29, 2016: 17.6 shares)
|
(1,945.2
|
)
|
|
(1,494.8
|
)
|
|
(1,338.9
|
)
|
|
7
|
|||
Retained earnings
|
4,074.9
|
|
|
3,995.9
|
|
|
3,727.8
|
|
|
|
|||
Accumulated other comprehensive loss
|
(292.4
|
)
|
|
(307.7
|
)
|
|
(302.3
|
)
|
|
9
|
|||
Total shareholders’ equity
|
2,139.0
|
|
|
2,490.2
|
|
|
2,231.2
|
|
|
|
|||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
|
$
|
5,800.7
|
|
|
$
|
6,597.8
|
|
|
$
|
6,487.5
|
|
|
|
|
39 weeks ended
|
||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
168.0
|
|
|
$
|
245.7
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
147.1
|
|
|
138.8
|
|
||
Amortization of unfavorable leases and contracts
|
(10.8
|
)
|
|
(14.9
|
)
|
||
Pension benefit
|
(3.6
|
)
|
|
(1.3
|
)
|
||
Share-based compensation
|
11.0
|
|
|
14.0
|
|
||
Deferred taxation
|
41.7
|
|
|
60.9
|
|
||
Excess tax benefit from exercise of share awards
|
—
|
|
|
(1.3
|
)
|
||
Credit transaction, net
|
(30.9
|
)
|
|
—
|
|
||
Amortization of debt discount and issuance costs
|
3.2
|
|
|
2.2
|
|
||
Other non-cash movements
|
1.5
|
|
|
1.9
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Decrease in accounts receivable
|
286.1
|
|
|
174.0
|
|
||
Proceeds from sale of in-house finance receivables
|
960.2
|
|
|
—
|
|
||
Decrease in other receivables and other assets
|
19.6
|
|
|
9.0
|
|
||
Increase in other current assets
|
(2.5
|
)
|
|
(15.4
|
)
|
||
Decrease (increase) in inventories
|
4.6
|
|
|
(217.0
|
)
|
||
Increase in accounts payable
|
39.7
|
|
|
114.1
|
|
||
Decrease in accrued expenses and other liabilities
|
(5.4
|
)
|
|
(82.2
|
)
|
||
Decrease in deferred revenue
|
(29.5
|
)
|
|
(2.5
|
)
|
||
Decrease in income taxes payable
|
(115.3
|
)
|
|
(62.6
|
)
|
||
Pension plan contributions
|
(2.4
|
)
|
|
(2.5
|
)
|
||
Net cash provided by operating activities
|
1,482.3
|
|
|
360.9
|
|
||
Investing activities
|
|
|
|
||||
Purchase of property, plant and equipment
|
(166.1
|
)
|
|
(195.6
|
)
|
||
Purchase of available-for-sale securities
|
(1.7
|
)
|
|
(10.4
|
)
|
||
Proceeds from sale of available-for-sale securities
|
0.9
|
|
|
10.0
|
|
||
Acquisition of R2Net Inc., net of cash acquired
|
(332.4
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(499.3
|
)
|
|
(196.0
|
)
|
||
Financing activities
|
|
|
|
||||
Dividends paid on common shares
|
(57.7
|
)
|
|
(57.5
|
)
|
||
Dividends paid on redeemable convertible preferred shares
|
(26.9
|
)
|
|
—
|
|
||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
|
—
|
|
|
611.6
|
|
||
Proceeds from term and bridge loans
|
350.0
|
|
|
—
|
|
||
Repayments of term and bridge loans
|
(365.7
|
)
|
|
(12.0
|
)
|
||
Proceeds from securitization facility
|
1,745.9
|
|
|
1,837.1
|
|
||
Repayments of securitization facility
|
(2,345.9
|
)
|
|
(1,837.1
|
)
|
||
Proceeds from revolving credit facility
|
605.0
|
|
|
598.0
|
|
||
Repayments of revolving credit facility
|
(405.0
|
)
|
|
(339.0
|
)
|
||
Repurchase of common shares
|
(460.0
|
)
|
|
(1,000.0
|
)
|
||
Repayments of bank overdrafts
|
(5.9
|
)
|
|
(13.3
|
)
|
||
Other financing activities
|
(4.5
|
)
|
|
(6.0
|
)
|
||
Net cash used in financing activities
|
(970.7
|
)
|
|
(218.2
|
)
|
||
Cash and cash equivalents at beginning of period
|
98.7
|
|
|
137.7
|
|
||
Increase (decrease) in cash and cash equivalents
|
12.3
|
|
|
(53.3
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
2.4
|
|
|
(1.7
|
)
|
||
Cash and cash equivalents at end of period
|
$
|
113.4
|
|
|
$
|
82.7
|
|
(in millions)
|
Common
shares at par value |
|
Additional
paid-in capital |
|
Other
reserves |
|
Treasury
shares |
|
Retained
earnings |
|
Accumulated
other comprehensive loss |
|
Total
shareholders’ equity |
||||||||||||||
Balance at January 28, 2017
|
$
|
15.7
|
|
|
$
|
280.7
|
|
|
$
|
0.4
|
|
|
$
|
(1,494.8
|
)
|
|
$
|
3,995.9
|
|
|
$
|
(307.7
|
)
|
|
$
|
2,490.2
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168.0
|
|
|
—
|
|
|
168.0
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.3
|
|
|
15.3
|
|
|||||||
Dividends on common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58.7
|
)
|
|
—
|
|
|
(58.7
|
)
|
|||||||
Dividends on redeemable convertible preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.6
|
)
|
|
—
|
|
|
(24.6
|
)
|
|||||||
Repurchase of common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(460.0
|
)
|
|
—
|
|
|
—
|
|
|
(460.0
|
)
|
|||||||
Net settlement of equity based awards
|
—
|
|
|
(6.1
|
)
|
|
—
|
|
|
9.4
|
|
|
(5.7
|
)
|
|
—
|
|
|
(2.4
|
)
|
|||||||
Share options exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||||
Share-based compensation expense
|
—
|
|
|
11.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.0
|
|
|||||||
Balance at October 28, 2017
|
$
|
15.7
|
|
|
$
|
285.6
|
|
|
$
|
0.4
|
|
|
$
|
(1,945.2
|
)
|
|
$
|
4,074.9
|
|
|
$
|
(292.4
|
)
|
|
$
|
2,139.0
|
|
(in millions)
|
Initial amounts
|
||
Cash and cash equivalents
|
$
|
47.3
|
|
Inventories
|
12.1
|
|
|
Other current assets
|
9.7
|
|
|
Property, plant and equipment
|
3.5
|
|
|
Current liabilities
|
(41.4
|
)
|
|
Fair value of net assets acquired
|
31.2
|
|
|
Goodwill
(1)
|
348.5
|
|
|
Total consideration transferred
|
$
|
379.7
|
|
(1)
|
The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition
reflected above.
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Sales:
|
|
|
|
|
|
|
|
||||||||
Sterling Jewelers
|
$
|
698.7
|
|
|
$
|
712.5
|
|
|
$
|
2,437.8
|
|
|
$
|
2,532.3
|
|
Zale Jewelry
|
268.2
|
|
|
282.4
|
|
|
933.7
|
|
|
994.8
|
|
||||
Piercing Pagoda
|
55.4
|
|
|
53.4
|
|
|
187.4
|
|
|
179.4
|
|
||||
UK Jewelry
|
128.4
|
|
|
130.3
|
|
|
382.8
|
|
|
419.5
|
|
||||
Other
|
6.2
|
|
|
7.6
|
|
|
18.2
|
|
|
12.5
|
|
||||
Total sales
|
$
|
1,156.9
|
|
|
$
|
1,186.2
|
|
|
$
|
3,959.9
|
|
|
$
|
4,138.5
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
|
|
|
||||||||
Sterling Jewelers
|
$
|
73.7
|
|
(1)
|
$
|
78.6
|
|
|
$
|
362.6
|
|
(2)
|
$
|
417.8
|
|
Zale Jewelry
|
(15.7
|
)
|
|
(19.3
|
)
|
|
(12.4
|
)
|
|
(0.5
|
)
|
||||
Piercing Pagoda
|
(4.2
|
)
|
|
(5.4
|
)
|
|
—
|
|
|
2.2
|
|
||||
UK Jewelry
|
(1.7
|
)
|
|
—
|
|
|
(1.9
|
)
|
|
3.0
|
|
||||
Other
|
(46.6
|
)
|
(3)
|
(21.8
|
)
|
|
(91.9
|
)
|
(4)
|
(58.5
|
)
|
||||
Total operating income
|
$
|
5.5
|
|
|
$
|
32.1
|
|
|
$
|
256.4
|
|
|
$
|
364.0
|
|
(1)
|
For the 13 weeks ended
October 28, 2017
, amount includes
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 for additional information.
|
(2)
|
For the 39 weeks ended
October 28, 2017
, amount includes
$20.7 million
gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 for additional information.
|
(3)
|
For the 13 weeks ended
October 28, 2017
, amount includes
$22.4 million
of transaction costs related to the credit transaction and
$8.1 million
of R2Net acquisition costs. See Note 3 and Note 4 for additional information regarding credit transaction and acquisition of R2Net, respectively.
|
(4)
|
For the 39 weeks ended
October 28, 2017
, amount includes
$28.3 million
of transaction costs related to the credit transaction,
$9.4 million
of R2Net acquisition costs, and
$3.4 million
of CEO transition costs. See Note 3 and Note 4 for additional information regarding credit transaction and acquisition of R2Net, respectively.
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Total assets:
|
|
|
|
|
|
||||||
Sterling Jewelers
|
$
|
3,260.0
|
|
|
$
|
4,015.4
|
|
|
$
|
3,715.6
|
|
Zale Jewelry
|
1,885.0
|
|
|
1,940.7
|
|
|
2,061.7
|
|
|||
Piercing Pagoda
|
139.8
|
|
|
141.6
|
|
|
136.1
|
|
|||
UK Jewelry
|
404.8
|
|
|
372.6
|
|
|
407.1
|
|
|||
Other
|
111.1
|
|
|
127.5
|
|
|
167.0
|
|
|||
Total assets
|
$
|
5,800.7
|
|
|
$
|
6,597.8
|
|
|
$
|
6,487.5
|
|
(in millions, except conversion rate and conversion price)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Conversion rate
|
10.7707
|
|
|
10.6529
|
|
|
10.6529
|
|
|||
Conversion price
|
$
|
92.8445
|
|
|
$
|
93.8712
|
|
|
$
|
93.8712
|
|
Potential impact of preferred shares if-converted to common shares
|
6.7
|
|
|
6.7
|
|
|
6.7
|
|
|||
Liquidation preference
|
$
|
632.8
|
|
|
$
|
636.3
|
|
|
$
|
627.1
|
|
|
|
|
39 weeks ended October 28, 2017
|
|
39 weeks ended October 29, 2016
|
||||||||||||||||||||
(in millions, except per share amounts)
|
Amount
authorized |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
||||||||||||
2016 Program
(1)
|
$
|
1,375.0
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
|
8.7
|
|
|
$
|
706.9
|
|
|
$
|
81.32
|
|
2013 Program
(2)
|
$
|
350.0
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
1.2
|
|
|
135.6
|
|
|
$
|
111.26
|
|
|||
Total
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
|
9.9
|
|
|
$
|
842.5
|
|
|
$
|
85.00
|
|
(1)
|
The 2016 Program had
$50.6 million
remaining as of
October 28, 2017
.
|
(2)
|
The 2013 Program was completed in May 2016.
|
n/a
|
Not applicable.
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||||||
(in millions, except per share amounts)
|
Cash dividend per share
|
|
Total
dividends |
|
Cash dividend
per share |
|
Total
dividends |
||||||||
First quarter
|
$
|
0.31
|
|
|
$
|
21.3
|
|
|
$
|
0.26
|
|
|
$
|
20.4
|
|
Second quarter
|
0.31
|
|
|
18.7
|
|
|
0.26
|
|
|
19.7
|
|
||||
Third quarter
(1)
|
0.31
|
|
|
18.7
|
|
|
0.26
|
|
|
18.1
|
|
||||
Total
|
$
|
0.93
|
|
|
$
|
58.7
|
|
|
$
|
0.78
|
|
|
$
|
58.2
|
|
(1)
|
Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
October 28, 2017
and
October 29, 2016
,
$18.7 million
and
$18.1 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on common shares declared for the
third
quarter of
Fiscal 2018
and
Fiscal 2017
, respectively.
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||
(in millions)
|
Total cash
dividends |
|
Total cash
dividends |
||||
First quarter
|
$
|
7.8
|
|
|
$
|
—
|
|
Second quarter
|
7.8
|
|
|
—
|
|
||
Third quarter
(1)
|
7.8
|
|
|
—
|
|
||
Total
|
$
|
23.4
|
|
|
$
|
—
|
|
(1)
|
Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
October 28, 2017
and
October 29, 2016
,
$7.8 million
and
$2.1 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the
third
quarter of
Fiscal 2018
and
Fiscal 2017
, respectively.
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions, except per share amounts)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to common shareholders
|
$
|
(12.1
|
)
|
|
$
|
14.8
|
|
|
$
|
143.4
|
|
|
$
|
243.5
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
60.1
|
|
|
73.5
|
|
|
64.0
|
|
|
76.4
|
|
||||
EPS – basic
|
$
|
(0.20
|
)
|
|
$
|
0.20
|
|
|
$
|
2.24
|
|
|
$
|
3.19
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions, except per share amounts)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to common shareholders
|
$
|
(12.1
|
)
|
|
$
|
14.8
|
|
|
$
|
143.4
|
|
|
$
|
243.5
|
|
Add: Dividends on preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Numerator for diluted EPS
|
$
|
(12.1
|
)
|
|
$
|
14.8
|
|
|
$
|
143.4
|
|
|
$
|
243.5
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
60.1
|
|
|
73.5
|
|
|
64.0
|
|
|
76.4
|
|
||||
Plus: Dilutive effect of share awards
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Diluted weighted average common shares outstanding
|
60.1
|
|
|
73.6
|
|
|
64.1
|
|
|
76.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
EPS – diluted
|
$
|
(0.20
|
)
|
|
$
|
0.20
|
|
|
$
|
2.24
|
|
|
$
|
3.18
|
|
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
||
Share awards
|
0.3
|
|
|
0.3
|
|
Potential impact of preferred shares
|
6.7
|
|
|
6.7
|
|
Total anti-dilutive shares
|
7.0
|
|
|
7.0
|
|
|
|
|
|
|
|
|
Pension plan
|
|
|
||||||||||||||
(in millions)
|
Foreign
currency translation |
|
Losses on available-for-sale securities, net
|
|
Gains (losses)
on cash flow hedges |
|
Actuarial
losses |
|
Prior
service credits |
|
Accumulated
other comprehensive loss |
||||||||||||
Balance at January 28, 2017
|
$
|
(263.4
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
2.4
|
|
|
$
|
(55.5
|
)
|
|
$
|
9.2
|
|
|
$
|
(307.7
|
)
|
Other comprehensive income (“OCI”) before reclassifications
|
18.6
|
|
|
0.3
|
|
|
2.7
|
|
|
(0.9
|
)
|
|
—
|
|
|
20.7
|
|
||||||
Amounts reclassified from AOCI to net income
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|
4.0
|
|
|
(6.3
|
)
|
|
(5.4
|
)
|
||||||
Net current period OCI
|
18.6
|
|
|
0.3
|
|
|
(0.4
|
)
|
|
3.1
|
|
|
(6.3
|
)
|
|
15.3
|
|
||||||
Balance at October 28, 2017
|
$
|
(244.8
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
2.0
|
|
|
$
|
(52.4
|
)
|
|
$
|
2.9
|
|
|
$
|
(292.4
|
)
|
|
Amounts reclassified from AOCI
|
|
|
|||||||||||||||
|
13 weeks ended
|
|
39 weeks ended
|
|
|
|||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
|
Income statement caption
|
|||||||||
(Gains) losses on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign currency contracts
|
$
|
(0.8
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(3.0
|
)
|
|
$
|
(1.0
|
)
|
|
Cost of sales (see Note 15)
|
|
Interest rate swaps
|
—
|
|
|
0.5
|
|
|
0.4
|
|
|
1.7
|
|
|
Interest expense, net
(see Note 15)
|
|||||
Commodity contracts
|
—
|
|
|
(0.3
|
)
|
|
(1.5
|
)
|
|
1.7
|
|
|
Cost of sales (see Note 15)
|
|||||
Total before income tax
|
(0.8
|
)
|
|
(0.2
|
)
|
|
(4.1
|
)
|
|
2.4
|
|
|
|
|||||
Income taxes
|
0.2
|
|
|
0.1
|
|
|
1.0
|
|
|
(0.8
|
)
|
|
|
|||||
Net of tax
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(3.1
|
)
|
|
1.6
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Defined benefit pension plan items:
|
|
|
|
|
|
|
|
|
|
|||||||||
Amortization of unrecognized actuarial losses
|
0.7
|
|
|
0.4
|
|
|
2.2
|
|
|
1.2
|
|
|
Selling, general and administrative expenses
(1)
|
|||||
Amortization of unrecognized net prior service credits
|
(0.4
|
)
|
|
(0.5
|
)
|
|
(1.3
|
)
|
|
(1.5
|
)
|
|
Selling, general and administrative expenses
(1)
|
|||||
Net curtailment gain and settlement loss
|
(3.7
|
)
|
|
—
|
|
|
(3.7
|
)
|
|
—
|
|
|
Selling, general and administrative expenses
(1)
|
|||||
Total before income tax
|
(3.4
|
)
|
|
(0.1
|
)
|
|
(2.8
|
)
|
|
(0.3
|
)
|
|
|
|||||
Income taxes
|
0.6
|
|
|
0.1
|
|
|
0.5
|
|
|
0.1
|
|
|
|
|||||
Net of tax
|
(2.8
|
)
|
|
—
|
|
|
(2.3
|
)
|
|
(0.2
|
)
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Total reclassifications, net of tax
|
$
|
(3.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
1.4
|
|
|
|
(1)
|
These items are included in the computation of net periodic pension benefit. See Note
22
for additional information.
|
|
39 weeks ended
|
||||
|
October 28, 2017
|
|
October 29, 2016
|
||
Forecasted annual effective tax rate
|
21.2
|
%
|
|
25.0
|
%
|
Discrete items recognized
|
0.2
|
%
|
|
—
|
%
|
Effective tax rate recognized in income statement
|
21.4
|
%
|
|
25.0
|
%
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Accounts receivable by portfolio segment, net:
|
|
|
|
|
|
||||||
Sterling Jewelers customer in-house finance receivables
|
$
|
597.7
|
|
|
$
|
1,813.3
|
|
|
$
|
1,546.3
|
|
Zale customer in-house finance receivables
|
32.3
|
|
|
33.4
|
|
|
26.4
|
|
|||
Other accounts receivable
|
10.1
|
|
|
11.3
|
|
|
8.4
|
|
|||
Total accounts receivable, net
|
$
|
640.1
|
|
|
$
|
1,858.0
|
|
|
$
|
1,581.1
|
|
|
39 weeks ended
|
||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
||||
Beginning balance
|
$
|
(138.7
|
)
|
|
$
|
(130.0
|
)
|
Charge-offs, net
|
160.9
|
|
|
143.1
|
|
||
Recoveries
|
30.1
|
|
|
26.8
|
|
||
Provision
|
(181.8
|
)
|
|
(172.9
|
)
|
||
Reversal of allowance on receivables previously held for sale
|
20.7
|
|
|
—
|
|
||
Ending balance
|
$
|
(108.8
|
)
|
|
$
|
(133.0
|
)
|
Ending receivable balance evaluated for impairment
|
706.5
|
|
|
1,679.3
|
|
||
Sterling Jewelers customer in-house finance receivables, net
|
$
|
597.7
|
|
|
$
|
1,546.3
|
|
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||||||||||||
(in millions)
|
Gross
|
|
Valuation
allowance |
|
Gross
|
|
Valuation
allowance |
|
Gross
|
|
Valuation
allowance |
||||||||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current, aged 0 – 30 days
|
$
|
586.5
|
|
|
$
|
(50.3
|
)
|
|
$
|
1,538.2
|
|
|
$
|
(47.2
|
)
|
|
$
|
1,294.9
|
|
|
$
|
(39.3
|
)
|
Past due, aged 31 – 60 days
|
40.3
|
|
|
(3.5
|
)
|
|
282.0
|
|
|
(9.0
|
)
|
|
250.6
|
|
|
(8.1
|
)
|
||||||
Past due, aged 61 – 90 days
|
27.1
|
|
|
(2.4
|
)
|
|
51.6
|
|
|
(2.3
|
)
|
|
50.7
|
|
|
(2.5
|
)
|
||||||
Non Performing:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Past due, aged more than 90 days
|
52.6
|
|
|
(52.6
|
)
|
|
80.2
|
|
|
(80.2
|
)
|
|
83.1
|
|
|
(83.1
|
)
|
||||||
|
$
|
706.5
|
|
|
$
|
(108.8
|
)
|
|
$
|
1,952.0
|
|
|
$
|
(138.7
|
)
|
|
$
|
1,679.3
|
|
|
$
|
(133.0
|
)
|
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||||||
(as a % of the ending receivable balance)
|
Gross
|
|
Valuation
allowance |
|
Gross
|
|
Valuation
allowance |
|
Gross
|
|
Valuation
allowance |
||||||
Performing
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current, aged 0 – 30 days
|
83.0
|
%
|
|
8.6
|
%
|
|
78.8
|
%
|
|
3.1
|
%
|
|
77.2
|
%
|
|
3.0
|
%
|
Past due, aged 31 – 60 days
|
5.7
|
%
|
|
8.7
|
%
|
|
14.5
|
%
|
|
3.2
|
%
|
|
14.9
|
%
|
|
3.2
|
%
|
Past due, aged 61 – 90 days
|
3.8
|
%
|
|
8.9
|
%
|
|
2.6
|
%
|
|
4.5
|
%
|
|
3.0
|
%
|
|
4.9
|
%
|
Non Performing
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Past due, aged more than 90 days
|
7.5
|
%
|
|
100.0
|
%
|
|
4.1
|
%
|
|
100.0
|
%
|
|
4.9
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
15.4
|
%
|
|
100.0
|
%
|
|
7.1
|
%
|
|
100.0
|
%
|
|
7.9
|
%
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Raw materials
|
$
|
68.2
|
|
|
$
|
60.8
|
|
|
$
|
71.2
|
|
Finished goods
|
2,397.9
|
|
|
2,388.5
|
|
|
2,578.2
|
|
|||
Total inventories
|
$
|
2,466.1
|
|
|
$
|
2,449.3
|
|
|
$
|
2,649.4
|
|
(in millions)
|
Sterling
Jewelers |
|
Zale
Jewelry |
|
Piercing
Pagoda |
|
UK Jewelry
|
|
Other
|
|
Total
|
||||||||||||
Balance at January 30, 2016
|
$
|
23.2
|
|
|
$
|
488.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
515.5
|
|
Impact of foreign exchange
|
—
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
||||||
Balance at January 28, 2017
|
23.2
|
|
|
490.8
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
|
517.6
|
|
||||||
Acquisitions
|
348.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
348.5
|
|
||||||
Impact of foreign exchange
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||||
Balance at October 28, 2017
|
$
|
371.7
|
|
|
$
|
491.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
867.1
|
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Deferred ESP selling costs
|
$
|
86.0
|
|
|
$
|
86.1
|
|
|
$
|
81.8
|
|
Investments
(1)
|
28.7
|
|
|
27.2
|
|
|
27.5
|
|
|||
Other assets
|
54.4
|
|
|
51.8
|
|
|
48.2
|
|
|||
Total other assets
|
$
|
169.1
|
|
|
$
|
165.1
|
|
|
$
|
157.5
|
|
|
Fair value of derivative assets
|
||||||||||||
(in millions)
|
Balance sheet location
|
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
|
$
|
0.2
|
|
|
$
|
1.4
|
|
|
$
|
3.5
|
|
Commodity contracts
|
Other current assets
|
|
0.7
|
|
|
—
|
|
|
0.6
|
|
|||
Interest rate swaps
|
Other assets
|
|
1.3
|
|
|
0.4
|
|
|
—
|
|
|||
|
|
|
$
|
2.2
|
|
|
$
|
1.8
|
|
|
$
|
4.1
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|||
Total derivative assets
|
|
|
$
|
2.2
|
|
|
$
|
3.6
|
|
|
$
|
4.1
|
|
|
Fair value of derivative liabilities
|
||||||||||||
(in millions)
|
Balance sheet location
|
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current liabilities
|
|
$
|
(0.7
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
Commodity contracts
|
Other current liabilities
|
|
—
|
|
|
(3.4
|
)
|
|
(0.7
|
)
|
|||
Interest rate swaps
|
Other liabilities
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|||
|
|
|
$
|
(0.7
|
)
|
|
$
|
(3.6
|
)
|
|
$
|
(3.0
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current liabilities
|
|
(0.6
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||
Total derivative liabilities
|
|
|
$
|
(1.3
|
)
|
|
$
|
(3.6
|
)
|
|
$
|
(3.1
|
)
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Foreign currency contracts
|
$
|
—
|
|
|
$
|
4.1
|
|
|
$
|
6.4
|
|
Commodity contracts
|
1.5
|
|
|
(2.1
|
)
|
|
3.8
|
|
|||
Interest rate swaps
|
1.3
|
|
|
0.4
|
|
|
(2.3
|
)
|
|||
Gains recorded in AOCI
|
$
|
2.8
|
|
|
$
|
2.4
|
|
|
$
|
7.9
|
|
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Gains recorded in AOCI, beginning of period
|
|
|
$
|
0.6
|
|
|
$
|
3.8
|
|
|
$
|
4.1
|
|
|
$
|
1.4
|
|
Current period (losses) gains recognized in OCI
|
|
|
0.2
|
|
|
3.0
|
|
|
(1.1
|
)
|
|
6.0
|
|
||||
Gains reclassified from AOCI to net income
|
Cost of sales
|
|
(0.8
|
)
|
|
(0.4
|
)
|
|
(3.0
|
)
|
|
(1.0
|
)
|
||||
Gains recorded in AOCI, end of period
|
|
|
$
|
—
|
|
|
$
|
6.4
|
|
|
$
|
—
|
|
|
$
|
6.4
|
|
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Gains (losses) recorded in AOCI, beginning of period
|
|
|
$
|
1.0
|
|
|
$
|
6.2
|
|
|
$
|
(2.1
|
)
|
|
$
|
(3.7
|
)
|
Current period (losses) gains recognized in OCI
|
|
|
0.5
|
|
|
(2.1
|
)
|
|
5.1
|
|
|
5.8
|
|
||||
(Gains) losses reclassified from AOCI to net income
|
Cost of sales
|
|
—
|
|
|
(0.3
|
)
|
|
(1.5
|
)
|
|
1.7
|
|
||||
Gains recorded in AOCI, end of period
|
|
|
$
|
1.5
|
|
|
$
|
3.8
|
|
|
$
|
1.5
|
|
|
$
|
3.8
|
|
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Gains (losses) recorded in AOCI, beginning of period
|
|
|
$
|
0.7
|
|
|
$
|
(3.8
|
)
|
|
$
|
0.4
|
|
|
$
|
(3.4
|
)
|
Current period gains (losses) recognized in OCI
|
|
|
0.6
|
|
|
1.0
|
|
|
0.5
|
|
|
(0.6
|
)
|
||||
Losses reclassified from AOCI to net income
|
Interest expense, net
|
|
—
|
|
|
0.5
|
|
|
0.4
|
|
|
1.7
|
|
||||
Gains (losses) recorded in AOCI, end of period
|
|
|
$
|
1.3
|
|
|
$
|
(2.3
|
)
|
|
$
|
1.3
|
|
|
$
|
(2.3
|
)
|
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
Other operating income, net
|
|
$
|
(0.1
|
)
|
|
$
|
1.6
|
|
|
$
|
3.1
|
|
|
$
|
3.2
|
|
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||||||||||||||||||||||||
(in millions)
|
Carrying Value
|
|
Quoted prices in active markets for identical assets
(Level 1) |
|
Significant
other observable inputs (Level 2) |
|
Carrying Value
|
|
Quoted prices in active markets for identical assets
(Level 1) |
|
Significant
other observable inputs (Level 2) |
|
Carrying Value
|
|
Quoted prices in active markets for identical assets
(Level 1) |
|
Significant
other observable inputs (Level 2) |
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
US Treasury securities
|
$
|
7.7
|
|
|
$
|
7.7
|
|
|
$
|
—
|
|
|
$
|
8.1
|
|
|
$
|
8.1
|
|
|
$
|
—
|
|
|
$
|
8.3
|
|
|
$
|
8.3
|
|
|
$
|
—
|
|
Corporate equity securities
|
4.1
|
|
|
4.1
|
|
|
—
|
|
|
3.8
|
|
|
3.8
|
|
|
—
|
|
|
3.6
|
|
|
3.6
|
|
|
—
|
|
|||||||||
Foreign currency contracts
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
3.2
|
|
|
—
|
|
|
3.2
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|||||||||
Commodity contracts
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||||||||
Interest rate swaps
|
1.3
|
|
|
|
|
1.3
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
US government agency securities
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|
4.5
|
|
|
—
|
|
|
4.5
|
|
|||||||||
Corporate bonds and notes
|
11.5
|
|
|
—
|
|
|
11.5
|
|
|
10.9
|
|
|
—
|
|
|
10.9
|
|
|
11.1
|
|
|
—
|
|
|
11.1
|
|
|||||||||
Total assets
|
$
|
30.9
|
|
|
$
|
11.8
|
|
|
$
|
19.1
|
|
|
$
|
30.8
|
|
|
$
|
11.9
|
|
|
$
|
18.9
|
|
|
$
|
31.6
|
|
|
$
|
11.9
|
|
|
$
|
19.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Foreign currency contracts
|
$
|
(1.3
|
)
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
Commodity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|
—
|
|
|
(3.4
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
|||||||||
Interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
(2.3
|
)
|
|||||||||
Total liabilities
|
$
|
(1.3
|
)
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
(3.6
|
)
|
|
$
|
—
|
|
|
$
|
(3.6
|
)
|
|
$
|
(3.1
|
)
|
|
$
|
—
|
|
|
$
|
(3.1
|
)
|
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||||||||||||
(in millions)
|
Carrying
Value |
|
Fair Value
|
|
Carrying
Value |
|
Fair Value
|
|
Carrying
Value |
|
Fair Value
|
||||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior notes (Level 2)
|
$
|
394.3
|
|
|
$
|
398.8
|
|
|
$
|
393.7
|
|
|
$
|
391.2
|
|
|
$
|
393.4
|
|
|
$
|
390.5
|
|
Securitization facility (Level 2)
|
—
|
|
|
—
|
|
|
599.7
|
|
|
600.0
|
|
|
599.6
|
|
|
600.0
|
|
||||||
Term loan (Level 2)
|
330.0
|
|
|
332.9
|
|
|
345.1
|
|
|
348.6
|
|
|
349.3
|
|
|
353.0
|
|
||||||
Total
|
$
|
724.3
|
|
|
$
|
731.7
|
|
|
$
|
1,338.5
|
|
|
$
|
1,339.8
|
|
|
$
|
1,342.3
|
|
|
$
|
1,343.5
|
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Debt:
|
|
|
|
|
|
||||||
Senior unsecured notes due 2024, net of unamortized discount
|
$
|
398.9
|
|
|
$
|
398.8
|
|
|
$
|
398.7
|
|
Securitization facility
|
—
|
|
|
600.0
|
|
|
600.0
|
|
|||
Senior unsecured term loan
|
332.9
|
|
|
348.6
|
|
|
353.0
|
|
|||
Revolving credit facility
|
256.0
|
|
|
56.0
|
|
|
259.0
|
|
|||
Bank overdrafts
|
8.3
|
|
|
14.2
|
|
|
11.1
|
|
|||
Total debt
|
$
|
996.1
|
|
|
$
|
1,417.6
|
|
|
$
|
1,621.8
|
|
Less: Current portion of loans and overdrafts
|
(291.8
|
)
|
|
(91.1
|
)
|
|
(288.8
|
)
|
|||
Less: Unamortized capitalized debt issuance fees
|
(7.5
|
)
|
|
(8.6
|
)
|
|
(8.8
|
)
|
|||
Total long-term debt
|
$
|
696.8
|
|
|
$
|
1,317.9
|
|
|
$
|
1,324.2
|
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Sterling Jewelers ESP deferred revenue
|
$
|
717.6
|
|
|
$
|
737.4
|
|
|
$
|
710.2
|
|
Zale ESP deferred revenue
|
165.2
|
|
|
168.2
|
|
|
155.2
|
|
|||
Voucher promotions and other
|
33.6
|
|
|
30.3
|
|
|
23.4
|
|
|||
Total deferred revenue
|
$
|
916.4
|
|
|
$
|
935.9
|
|
|
$
|
888.8
|
|
|
|
|
|
|
|
||||||
Disclosed as:
|
|
|
|
|
|
||||||
Current liabilities
|
$
|
270.3
|
|
|
$
|
276.9
|
|
|
$
|
256.7
|
|
Non-current liabilities
|
646.1
|
|
|
659.0
|
|
|
632.1
|
|
|||
Total deferred revenue
|
$
|
916.4
|
|
|
$
|
935.9
|
|
|
$
|
888.8
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Sterling Jewelers ESP deferred revenue, beginning of period
|
$
|
732.7
|
|
|
$
|
720.3
|
|
|
$
|
737.4
|
|
|
$
|
715.1
|
|
Plans sold
|
47.9
|
|
|
52.8
|
|
|
176.7
|
|
|
190.4
|
|
||||
Revenue recognized
|
(63.0
|
)
|
|
(62.9
|
)
|
|
(196.5
|
)
|
|
(195.3
|
)
|
||||
Sterling Jewelers ESP deferred revenue, end of period
|
$
|
717.6
|
|
|
$
|
710.2
|
|
|
$
|
717.6
|
|
|
$
|
710.2
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Zale ESP deferred revenue, beginning of period
|
$
|
169.5
|
|
|
$
|
156.2
|
|
|
$
|
168.2
|
|
|
$
|
146.1
|
|
Plans sold
(1)
|
25.0
|
|
|
28.3
|
|
|
89.6
|
|
|
100.8
|
|
||||
Revenue recognized
|
(29.3
|
)
|
|
(29.3
|
)
|
|
(92.6
|
)
|
|
(91.7
|
)
|
||||
Zale ESP deferred revenue, end of period
|
$
|
165.2
|
|
|
$
|
155.2
|
|
|
$
|
165.2
|
|
|
$
|
155.2
|
|
(1)
|
Includes impact of foreign exchange translation.
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Warranty reserve, beginning of period
|
$
|
39.3
|
|
|
$
|
40.4
|
|
|
$
|
40.0
|
|
|
$
|
41.9
|
|
Warranty expense
|
3.1
|
|
|
3.7
|
|
|
7.9
|
|
|
9.4
|
|
||||
Utilized
(1)
|
(3.1
|
)
|
|
(3.6
|
)
|
|
(8.6
|
)
|
|
(10.8
|
)
|
||||
Warranty reserve, end of period
|
$
|
39.3
|
|
|
$
|
40.5
|
|
|
$
|
39.3
|
|
|
$
|
40.5
|
|
(1)
|
Includes impact of foreign exchange translation.
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Disclosed as:
|
|
|
|
|
|
||||||
Current liabilities
|
$
|
12.2
|
|
|
$
|
13.0
|
|
|
$
|
12.9
|
|
Non-current liabilities
|
27.1
|
|
|
27.0
|
|
|
27.6
|
|
|||
Total warranty reserve
|
$
|
39.3
|
|
|
$
|
40.0
|
|
|
$
|
40.5
|
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Components of net periodic pension benefit:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
(0.6
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(1.5
|
)
|
Interest cost
|
(1.6
|
)
|
|
(1.7
|
)
|
|
(4.7
|
)
|
|
(5.5
|
)
|
||||
Expected return on UK Plan assets
|
2.4
|
|
|
2.5
|
|
|
7.1
|
|
|
8.0
|
|
||||
Amortization of unrecognized actuarial losses
|
(0.7
|
)
|
|
(0.4
|
)
|
|
(2.2
|
)
|
|
(1.2
|
)
|
||||
Amortization of unrecognized net prior service credits
|
0.4
|
|
|
0.5
|
|
|
1.3
|
|
|
1.5
|
|
||||
Net periodic pension (expense) benefit
|
$
|
(0.1
|
)
|
|
$
|
0.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
1.3
|
|
Net curtailment gain and settlement loss
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
||||
Total recognized in net periodic pension benefit and OCI
|
$
|
3.6
|
|
|
$
|
0.4
|
|
|
$
|
3.6
|
|
|
$
|
1.3
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,067.0
|
|
|
$
|
89.9
|
|
|
$
|
—
|
|
|
$
|
1,156.9
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(799.9
|
)
|
|
(35.9
|
)
|
|
—
|
|
|
(835.8
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
267.1
|
|
|
54.0
|
|
|
—
|
|
|
321.1
|
|
||||||
Selling, general and administrative expenses
|
(0.6
|
)
|
|
—
|
|
|
(346.4
|
)
|
|
(28.9
|
)
|
|
—
|
|
|
(375.9
|
)
|
||||||
Credit transaction, net
|
—
|
|
|
—
|
|
|
(12.2
|
)
|
|
—
|
|
|
—
|
|
|
(12.2
|
)
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
72.7
|
|
|
(0.2
|
)
|
|
—
|
|
|
72.5
|
|
||||||
Operating (loss) income
|
(0.6
|
)
|
|
—
|
|
|
(18.8
|
)
|
|
24.9
|
|
|
—
|
|
|
5.5
|
|
||||||
Intra-entity interest income (expense)
|
—
|
|
|
4.7
|
|
|
(47.0
|
)
|
|
42.3
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(5.1
|
)
|
|
(7.7
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
(16.6
|
)
|
||||||
(Loss) income before income taxes
|
(0.6
|
)
|
|
(0.4
|
)
|
|
(73.5
|
)
|
|
63.4
|
|
|
—
|
|
|
(11.1
|
)
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
28.3
|
|
|
(21.2
|
)
|
|
—
|
|
|
7.2
|
|
||||||
Equity in income of subsidiaries
|
(3.3
|
)
|
|
—
|
|
|
(71.5
|
)
|
|
(45.5
|
)
|
|
120.3
|
|
|
—
|
|
||||||
Net (loss) income
|
$
|
(3.9
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(116.7
|
)
|
|
$
|
(3.3
|
)
|
|
$
|
120.3
|
|
|
$
|
(3.9
|
)
|
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.2
|
)
|
||||||
Net (loss) income attributable to common shareholders
|
$
|
(12.1
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(116.7
|
)
|
|
$
|
(3.3
|
)
|
|
$
|
120.3
|
|
|
$
|
(12.1
|
)
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,121.8
|
|
|
$
|
64.4
|
|
|
$
|
—
|
|
|
$
|
1,186.2
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(821.7
|
)
|
|
(14.5
|
)
|
|
—
|
|
|
(836.2
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
300.1
|
|
|
49.9
|
|
|
—
|
|
|
350.0
|
|
||||||
Selling, general and administrative expenses
|
(0.3
|
)
|
|
—
|
|
|
(362.0
|
)
|
|
(24.2
|
)
|
|
—
|
|
|
(386.5
|
)
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
75.6
|
|
|
(7.0
|
)
|
|
—
|
|
|
68.6
|
|
||||||
Operating (loss) income
|
(0.3
|
)
|
|
—
|
|
|
13.7
|
|
|
18.7
|
|
|
—
|
|
|
32.1
|
|
||||||
Intra-entity interest income (expense)
|
—
|
|
|
4.7
|
|
|
(47.8
|
)
|
|
43.1
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(5.0
|
)
|
|
(4.5
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(12.7
|
)
|
||||||
(Loss) income before income taxes
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(38.6
|
)
|
|
58.6
|
|
|
—
|
|
|
19.4
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
15.1
|
|
|
(17.5
|
)
|
|
—
|
|
|
(2.4
|
)
|
||||||
Equity in income of subsidiaries
|
17.3
|
|
|
—
|
|
|
(51.9
|
)
|
|
(23.6
|
)
|
|
58.2
|
|
|
—
|
|
||||||
Net income (loss)
|
$
|
17.0
|
|
|
$
|
(0.3
|
)
|
|
$
|
(75.4
|
)
|
|
$
|
17.5
|
|
|
$
|
58.2
|
|
|
$
|
17.0
|
|
Dividends on redeemable convertible preferred shares
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
||||||
Net income (loss) attributable to common shareholders
|
$
|
14.8
|
|
|
$
|
(0.3
|
)
|
|
$
|
(75.4
|
)
|
|
$
|
17.5
|
|
|
$
|
58.2
|
|
|
$
|
14.8
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,714.5
|
|
|
$
|
245.4
|
|
|
$
|
—
|
|
|
$
|
3,959.9
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(2,623.1
|
)
|
|
(66.6
|
)
|
|
—
|
|
|
(2,689.7
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
1,091.4
|
|
|
178.8
|
|
|
—
|
|
|
1,270.2
|
|
||||||
Selling, general and administrative expenses
|
(1.0
|
)
|
|
—
|
|
|
(1,144.9
|
)
|
|
(91.8
|
)
|
|
—
|
|
|
(1,237.7
|
)
|
||||||
Credit transaction, net
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
221.6
|
|
|
(0.3
|
)
|
|
—
|
|
|
221.3
|
|
||||||
Operating (loss) income
|
(1.0
|
)
|
|
—
|
|
|
170.7
|
|
|
86.7
|
|
|
—
|
|
|
256.4
|
|
||||||
Intra-entity interest income (expense)
|
—
|
|
|
14.1
|
|
|
(138.8
|
)
|
|
124.7
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(15.0
|
)
|
|
(16.5
|
)
|
|
(11.2
|
)
|
|
—
|
|
|
(42.7
|
)
|
||||||
(Loss) income before income taxes
|
(1.0
|
)
|
|
(0.9
|
)
|
|
15.4
|
|
|
200.2
|
|
|
—
|
|
|
213.7
|
|
||||||
Income taxes
|
—
|
|
|
0.2
|
|
|
(8.4
|
)
|
|
(37.5
|
)
|
|
—
|
|
|
(45.7
|
)
|
||||||
Equity in income of subsidiaries
|
169.0
|
|
|
—
|
|
|
(41.2
|
)
|
|
11.0
|
|
|
(138.8
|
)
|
|
—
|
|
||||||
Net income (loss)
|
$
|
168.0
|
|
|
$
|
(0.7
|
)
|
|
$
|
(34.2
|
)
|
|
$
|
173.7
|
|
|
$
|
(138.8
|
)
|
|
$
|
168.0
|
|
Dividends on redeemable convertible preferred shares
|
(24.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.6
|
)
|
||||||
Net income (loss) attributable to common shareholders
|
$
|
143.4
|
|
|
$
|
(0.7
|
)
|
|
$
|
(34.2
|
)
|
|
$
|
173.7
|
|
|
$
|
(138.8
|
)
|
|
$
|
143.4
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,955.0
|
|
|
$
|
183.5
|
|
|
$
|
—
|
|
|
$
|
4,138.5
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(2,688.0
|
)
|
|
(35.2
|
)
|
|
—
|
|
|
(2,723.2
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
1,267.0
|
|
|
148.3
|
|
|
—
|
|
|
1,415.3
|
|
||||||
Selling, general and administrative expenses
|
(0.9
|
)
|
|
—
|
|
|
(1,190.9
|
)
|
|
(73.1
|
)
|
|
—
|
|
|
(1,264.9
|
)
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
227.6
|
|
|
(14.0
|
)
|
|
—
|
|
|
213.6
|
|
||||||
Operating (loss) income
|
(0.9
|
)
|
|
—
|
|
|
303.7
|
|
|
61.2
|
|
|
—
|
|
|
364.0
|
|
||||||
Intra-entity interest income (expense)
|
—
|
|
|
14.1
|
|
|
(142.2
|
)
|
|
128.1
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(14.8
|
)
|
|
(12.1
|
)
|
|
(9.5
|
)
|
|
—
|
|
|
(36.4
|
)
|
||||||
(Loss) income before income taxes
|
(0.9
|
)
|
|
(0.7
|
)
|
|
149.4
|
|
|
179.8
|
|
|
—
|
|
|
327.6
|
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
(61.5
|
)
|
|
(20.5
|
)
|
|
—
|
|
|
(81.9
|
)
|
||||||
Equity in income of subsidiaries
|
246.6
|
|
|
—
|
|
|
48.8
|
|
|
93.1
|
|
|
(388.5
|
)
|
|
—
|
|
||||||
Net income (loss)
|
$
|
245.7
|
|
|
$
|
(0.6
|
)
|
|
$
|
136.7
|
|
|
$
|
252.4
|
|
|
$
|
(388.5
|
)
|
|
$
|
245.7
|
|
Dividends on redeemable convertible preferred shares
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
||||||
Net income (loss) attributable to common shareholders
|
$
|
243.5
|
|
|
$
|
(0.6
|
)
|
|
$
|
136.7
|
|
|
$
|
252.4
|
|
|
$
|
(388.5
|
)
|
|
$
|
243.5
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net (loss) income
|
$
|
(3.9
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(116.7
|
)
|
|
$
|
(3.3
|
)
|
|
$
|
120.3
|
|
|
$
|
(3.9
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(6.5
|
)
|
|
—
|
|
|
(6.5
|
)
|
|
—
|
|
|
6.5
|
|
|
(6.5
|
)
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized loss
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.2
|
|
|
(0.2
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
(0.9
|
)
|
|
0.9
|
|
||||||
Reclassification adjustment for gains to net income
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
0.6
|
|
|
(0.6
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
0.9
|
|
|
(0.9
|
)
|
||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
(0.6
|
)
|
|
0.6
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
(0.4
|
)
|
||||||
Net curtailment gain and settlement loss
|
(3.0
|
)
|
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
3.0
|
|
|
(3.0
|
)
|
||||||
Total other comprehensive (loss) income
|
(10.1
|
)
|
|
—
|
|
|
(9.9
|
)
|
|
(0.2
|
)
|
|
10.1
|
|
|
(10.1
|
)
|
||||||
Total comprehensive (loss) income
|
$
|
(14.0
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(126.6
|
)
|
|
$
|
(3.5
|
)
|
|
$
|
130.4
|
|
|
$
|
(14.0
|
)
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
17.0
|
|
|
$
|
(0.3
|
)
|
|
$
|
(75.4
|
)
|
|
$
|
17.5
|
|
|
$
|
58.2
|
|
|
$
|
17.0
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(28.9
|
)
|
|
—
|
|
|
(32.5
|
)
|
|
3.6
|
|
|
28.9
|
|
|
(28.9
|
)
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized loss
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.2
|
|
|
(0.2
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
(1.9
|
)
|
|
1.9
|
|
||||||
Reclassification adjustment for losses to net income
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
(0.4
|
)
|
|
0.4
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
(0.4
|
)
|
||||||
Total other comprehensive (loss) income
|
(27.3
|
)
|
|
—
|
|
|
(30.7
|
)
|
|
3.4
|
|
|
27.3
|
|
|
(27.3
|
)
|
||||||
Total comprehensive (loss) income
|
$
|
(10.3
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(106.1
|
)
|
|
$
|
20.9
|
|
|
$
|
85.5
|
|
|
$
|
(10.3
|
)
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
168.0
|
|
|
$
|
(0.7
|
)
|
|
$
|
(34.2
|
)
|
|
$
|
173.7
|
|
|
$
|
(138.8
|
)
|
|
$
|
168.0
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
18.6
|
|
|
—
|
|
|
18.6
|
|
|
—
|
|
|
(18.6
|
)
|
|
18.6
|
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.3
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
(2.7
|
)
|
|
2.7
|
|
||||||
Reclassification adjustment for gains to net income
|
(3.1
|
)
|
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|
3.1
|
|
|
(3.1
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
0.9
|
|
|
(0.9
|
)
|
||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
(1.8
|
)
|
|
1.8
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
1.1
|
|
|
(1.1
|
)
|
||||||
Net curtailment gain and settlement loss
|
(3.0
|
)
|
|
—
|
|
|
(3.0
|
)
|
|
|
|
3.0
|
|
|
(3.0
|
)
|
|||||||
Total other comprehensive income
|
15.3
|
|
|
—
|
|
|
15.0
|
|
|
0.3
|
|
|
(15.3
|
)
|
|
15.3
|
|
||||||
Total comprehensive income (loss)
|
$
|
183.3
|
|
|
$
|
(0.7
|
)
|
|
$
|
(19.2
|
)
|
|
$
|
174.0
|
|
|
$
|
(154.1
|
)
|
|
$
|
183.3
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
245.7
|
|
|
$
|
(0.6
|
)
|
|
$
|
136.7
|
|
|
$
|
252.4
|
|
|
$
|
(388.5
|
)
|
|
$
|
245.7
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(38.0
|
)
|
|
—
|
|
|
(45.2
|
)
|
|
7.2
|
|
|
38.0
|
|
|
(38.0
|
)
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
0.2
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
8.2
|
|
|
—
|
|
|
8.2
|
|
|
—
|
|
|
(8.2
|
)
|
|
8.2
|
|
||||||
Reclassification adjustment for losses to net income
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
(1.6
|
)
|
|
1.6
|
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
(1.0
|
)
|
|
1.0
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(1.2
|
)
|
|
—
|
|
|
(1.2
|
)
|
|
—
|
|
|
1.2
|
|
|
(1.2
|
)
|
||||||
Total other comprehensive (loss) income
|
(28.2
|
)
|
|
—
|
|
|
(35.6
|
)
|
|
7.4
|
|
|
28.2
|
|
|
(28.2
|
)
|
||||||
Total comprehensive income (loss)
|
$
|
217.5
|
|
|
$
|
(0.6
|
)
|
|
$
|
101.1
|
|
|
$
|
259.8
|
|
|
$
|
(360.3
|
)
|
|
$
|
217.5
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
59.1
|
|
|
$
|
53.8
|
|
|
$
|
—
|
|
|
$
|
113.4
|
|
Accounts receivable, net
|
—
|
|
|
—
|
|
|
638.7
|
|
|
1.4
|
|
|
—
|
|
|
640.1
|
|
||||||
Intra-entity receivables, net
|
85.6
|
|
|
7.6
|
|
|
—
|
|
|
262.1
|
|
|
(355.3
|
)
|
|
—
|
|
||||||
Other receivables
|
—
|
|
|
—
|
|
|
55.6
|
|
|
24.7
|
|
|
—
|
|
|
80.3
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
140.0
|
|
|
5.0
|
|
|
—
|
|
|
145.0
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
17.3
|
|
|
—
|
|
|
—
|
|
|
17.3
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
2,392.6
|
|
|
73.5
|
|
|
—
|
|
|
2,466.1
|
|
||||||
Total current assets
|
86.0
|
|
|
7.7
|
|
|
3,303.3
|
|
|
420.5
|
|
|
(355.3
|
)
|
|
3,462.2
|
|
||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
847.5
|
|
|
7.6
|
|
|
—
|
|
|
855.1
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
515.0
|
|
|
352.1
|
|
|
—
|
|
|
867.1
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
410.4
|
|
|
—
|
|
|
—
|
|
|
410.4
|
|
||||||
Investment in subsidiaries
|
2,693.7
|
|
|
—
|
|
|
834.5
|
|
|
346.2
|
|
|
(3,874.4
|
)
|
|
—
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
400.0
|
|
|
—
|
|
|
2,835.0
|
|
|
(3,235.0
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
136.9
|
|
|
32.2
|
|
|
—
|
|
|
169.1
|
|
||||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
1.2
|
|
|
0.1
|
|
|
—
|
|
|
1.3
|
|
||||||
Retirement benefit asset
|
—
|
|
|
—
|
|
|
35.5
|
|
|
—
|
|
|
—
|
|
|
35.5
|
|
||||||
Total assets
|
$
|
2,779.7
|
|
|
$
|
407.7
|
|
|
$
|
6,084.3
|
|
|
$
|
3,993.7
|
|
|
$
|
(7,464.7
|
)
|
|
$
|
5,800.7
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and overdrafts
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
292.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
291.8
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
291.0
|
|
|
33.9
|
|
|
—
|
|
|
324.9
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
355.3
|
|
|
—
|
|
|
(355.3
|
)
|
|
—
|
|
||||||
Accrued expenses and other current liabilities
|
27.6
|
|
|
7.1
|
|
|
372.1
|
|
|
23.7
|
|
|
—
|
|
|
430.5
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
259.6
|
|
|
10.7
|
|
|
—
|
|
|
270.3
|
|
||||||
Income taxes
|
—
|
|
|
(0.2
|
)
|
|
(24.3
|
)
|
|
24.5
|
|
|
—
|
|
|
—
|
|
||||||
Total current liabilities
|
27.6
|
|
|
6.2
|
|
|
1,546.2
|
|
|
92.8
|
|
|
(355.3
|
)
|
|
1,317.5
|
|
||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
395.0
|
|
|
301.8
|
|
|
—
|
|
|
—
|
|
|
696.8
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
3,235.0
|
|
|
—
|
|
|
(3,235.0
|
)
|
|
—
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
238.8
|
|
|
5.6
|
|
|
—
|
|
|
244.4
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
646.1
|
|
|
—
|
|
|
—
|
|
|
646.1
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
143.6
|
|
|
0.2
|
|
|
—
|
|
|
143.8
|
|
||||||
Total liabilities
|
27.6
|
|
|
401.2
|
|
|
6,111.5
|
|
|
98.6
|
|
|
(3,590.3
|
)
|
|
3,048.6
|
|
||||||
Series A redeemable convertible preferred shares
|
613.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
613.1
|
|
||||||
Total shareholders’ equity (deficit)
|
2,139.0
|
|
|
6.5
|
|
|
(27.2
|
)
|
|
3,895.1
|
|
|
(3,874.4
|
)
|
|
2,139.0
|
|
||||||
Total liabilities, preferred shares and shareholders’ equity
|
$
|
2,779.7
|
|
|
$
|
407.7
|
|
|
$
|
6,084.3
|
|
|
$
|
3,993.7
|
|
|
$
|
(7,464.7
|
)
|
|
$
|
5,800.7
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
1.7
|
|
|
$
|
0.1
|
|
|
$
|
70.3
|
|
|
$
|
26.6
|
|
|
$
|
—
|
|
|
$
|
98.7
|
|
Accounts receivable, net
|
—
|
|
|
—
|
|
|
1,858.0
|
|
|
—
|
|
|
—
|
|
|
1,858.0
|
|
||||||
Intra-entity receivables, net
|
12.7
|
|
|
—
|
|
|
145.1
|
|
|
—
|
|
|
(157.8
|
)
|
|
—
|
|
||||||
Other receivables
|
—
|
|
|
—
|
|
|
71.1
|
|
|
24.8
|
|
|
—
|
|
|
95.9
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
131.4
|
|
|
4.9
|
|
|
—
|
|
|
136.3
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
2,371.8
|
|
|
77.5
|
|
|
—
|
|
|
2,449.3
|
|
||||||
Total current assets
|
14.4
|
|
|
0.1
|
|
|
4,652.1
|
|
|
133.8
|
|
|
(157.8
|
)
|
|
4,642.6
|
|
||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
818.5
|
|
|
4.4
|
|
|
—
|
|
|
822.9
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
514.0
|
|
|
3.6
|
|
|
—
|
|
|
517.6
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
417.0
|
|
|
—
|
|
|
—
|
|
|
417.0
|
|
||||||
Investment in subsidiaries
|
3,117.6
|
|
|
—
|
|
|
721.6
|
|
|
590.9
|
|
|
(4,430.1
|
)
|
|
—
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
402.9
|
|
|
—
|
|
|
3,647.1
|
|
|
(4,050.0
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
134.8
|
|
|
30.3
|
|
|
—
|
|
|
165.1
|
|
||||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.1
|
|
|
—
|
|
|
0.7
|
|
||||||
Retirement benefit asset
|
—
|
|
|
—
|
|
|
31.9
|
|
|
—
|
|
|
—
|
|
|
31.9
|
|
||||||
Total assets
|
$
|
3,132.0
|
|
|
$
|
403.0
|
|
|
$
|
7,290.5
|
|
|
$
|
4,410.2
|
|
|
$
|
(8,637.9
|
)
|
|
$
|
6,597.8
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and overdrafts
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
91.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91.1
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
248.2
|
|
|
7.5
|
|
|
—
|
|
|
255.7
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
157.8
|
|
|
(157.8
|
)
|
|
—
|
|
||||||
Accrued expenses and other current liabilities
|
29.9
|
|
|
2.5
|
|
|
429.2
|
|
|
16.6
|
|
|
—
|
|
|
478.2
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
275.5
|
|
|
1.4
|
|
|
—
|
|
|
276.9
|
|
||||||
Income taxes
|
—
|
|
|
(0.2
|
)
|
|
115.5
|
|
|
(13.5
|
)
|
|
—
|
|
|
101.8
|
|
||||||
Total current liabilities
|
29.9
|
|
|
1.6
|
|
|
1,160.2
|
|
|
169.8
|
|
|
(157.8
|
)
|
|
1,203.7
|
|
||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
394.3
|
|
|
323.6
|
|
|
600.0
|
|
|
—
|
|
|
1,317.9
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
4,050.0
|
|
|
—
|
|
|
(4,050.0
|
)
|
|
—
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
208.7
|
|
|
5.0
|
|
|
—
|
|
|
213.7
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
659.0
|
|
|
—
|
|
|
—
|
|
|
659.0
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
101.4
|
|
|
—
|
|
|
—
|
|
|
101.4
|
|
||||||
Total liabilities
|
29.9
|
|
|
395.9
|
|
|
6,502.9
|
|
|
774.8
|
|
|
(4,207.8
|
)
|
|
3,495.7
|
|
||||||
Series A redeemable convertible preferred shares
|
611.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
611.9
|
|
||||||
Total shareholders’ equity
|
2,490.2
|
|
|
7.1
|
|
|
787.6
|
|
|
3,635.4
|
|
|
(4,430.1
|
)
|
|
2,490.2
|
|
||||||
Total liabilities, preferred shares and shareholders’ equity
|
$
|
3,132.0
|
|
|
$
|
403.0
|
|
|
$
|
7,290.5
|
|
|
$
|
4,410.2
|
|
|
$
|
(8,637.9
|
)
|
|
$
|
6,597.8
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
55.7
|
|
|
$
|
26.7
|
|
|
$
|
—
|
|
|
$
|
82.7
|
|
Accounts receivable, net
|
—
|
|
|
—
|
|
|
1,581.1
|
|
|
—
|
|
|
—
|
|
|
1,581.1
|
|
||||||
Intra-entity receivables, net
|
50.4
|
|
|
—
|
|
|
—
|
|
|
278.9
|
|
|
(329.3
|
)
|
|
—
|
|
||||||
Other receivables
|
—
|
|
|
—
|
|
|
52.0
|
|
|
22.2
|
|
|
—
|
|
|
74.2
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
140.3
|
|
|
6.5
|
|
|
—
|
|
|
146.8
|
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
35.6
|
|
|
(14.9
|
)
|
|
—
|
|
|
20.8
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
2,578.3
|
|
|
71.1
|
|
|
—
|
|
|
2,649.4
|
|
||||||
Total current assets
|
50.6
|
|
|
0.2
|
|
|
4,443.0
|
|
|
390.5
|
|
|
(329.3
|
)
|
|
4,555.0
|
|
||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
786.4
|
|
|
4.7
|
|
|
—
|
|
|
791.1
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
513.4
|
|
|
3.6
|
|
|
—
|
|
|
517.0
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
419.8
|
|
|
—
|
|
|
—
|
|
|
419.8
|
|
||||||
Investment in subsidiaries
|
2,812.5
|
|
|
—
|
|
|
586.7
|
|
|
474.4
|
|
|
(3,873.6
|
)
|
|
—
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
407.6
|
|
|
—
|
|
|
3,647.4
|
|
|
(4,055.0
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
126.2
|
|
|
31.3
|
|
|
—
|
|
|
157.5
|
|
||||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Retirement benefit asset
|
—
|
|
|
—
|
|
|
47.1
|
|
|
—
|
|
|
—
|
|
|
47.1
|
|
||||||
Total assets
|
$
|
2,863.1
|
|
|
$
|
407.8
|
|
|
$
|
6,922.6
|
|
|
$
|
4,551.9
|
|
|
$
|
(8,257.9
|
)
|
|
$
|
6,487.5
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and overdrafts
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
289.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
288.8
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
376.4
|
|
|
5.8
|
|
|
—
|
|
|
382.2
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
329.3
|
|
|
—
|
|
|
(329.3
|
)
|
|
—
|
|
||||||
Accrued expenses and other current liabilities
|
20.2
|
|
|
7.1
|
|
|
360.1
|
|
|
15.5
|
|
|
—
|
|
|
402.9
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
256.7
|
|
|
—
|
|
|
—
|
|
|
256.7
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
3.9
|
|
|
0.5
|
|
|
—
|
|
|
4.4
|
|
||||||
Total current liabilities
|
20.2
|
|
|
6.4
|
|
|
1,615.9
|
|
|
21.8
|
|
|
(329.3
|
)
|
|
1,335.0
|
|
||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
394.1
|
|
|
330.1
|
|
|
600.0
|
|
|
—
|
|
|
1,324.2
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
4,055.0
|
|
|
—
|
|
|
(4,055.0
|
)
|
|
—
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
213.7
|
|
|
6.2
|
|
|
—
|
|
|
219.9
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
632.1
|
|
|
—
|
|
|
—
|
|
|
632.1
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
133.5
|
|
|
(0.1
|
)
|
|
—
|
|
|
133.4
|
|
||||||
Total liabilities
|
20.2
|
|
|
400.5
|
|
|
6,980.3
|
|
|
627.9
|
|
|
(4,384.3
|
)
|
|
3,644.6
|
|
||||||
Series A redeemable convertible preferred shares
|
611.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
611.7
|
|
||||||
Total shareholders’ equity (deficit)
|
2,231.2
|
|
|
7.3
|
|
|
(57.7
|
)
|
|
3,924.0
|
|
|
(3,873.6
|
)
|
|
2,231.2
|
|
||||||
Total liabilities, preferred shares and shareholders’ equity
|
$
|
2,863.1
|
|
|
$
|
407.8
|
|
|
$
|
6,922.6
|
|
|
$
|
4,551.9
|
|
|
$
|
(8,257.9
|
)
|
|
$
|
6,487.5
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
617.1
|
|
|
$
|
4.6
|
|
|
$
|
1,467.2
|
|
|
$
|
511.4
|
|
|
$
|
(1,118.0
|
)
|
|
$
|
1,482.3
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchase of property, plant and equipment
|
—
|
|
|
—
|
|
|
(165.7
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
(166.1
|
)
|
||||||
Purchase of available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
|
(1.7
|
)
|
||||||
Proceeds from available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
||||||
Acquisition of R2Net Inc., net of cash acquired
|
—
|
|
|
—
|
|
|
(332.4
|
)
|
|
—
|
|
|
—
|
|
|
(332.4
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(498.1
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(499.3
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends paid on common shares
|
(57.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57.7
|
)
|
||||||
Dividends paid on redeemable convertible preferred shares
|
(26.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.9
|
)
|
||||||
Intra-entity dividends paid
|
—
|
|
|
—
|
|
|
(800.0
|
)
|
|
(318.0
|
)
|
|
1,118.0
|
|
|
—
|
|
||||||
Proceeds from term and bridge loans
|
—
|
|
|
—
|
|
|
350.0
|
|
|
—
|
|
|
—
|
|
|
350.0
|
|
||||||
Repayments of term and bridge loans
|
—
|
|
|
—
|
|
|
(365.7
|
)
|
|
—
|
|
|
—
|
|
|
(365.7
|
)
|
||||||
Proceeds from securitization facility
|
—
|
|
|
—
|
|
|
—
|
|
|
1,745.9
|
|
|
—
|
|
|
1,745.9
|
|
||||||
Repayments of securitization facility
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,345.9
|
)
|
|
—
|
|
|
(2,345.9
|
)
|
||||||
Proceeds from revolving credit facility
|
—
|
|
|
—
|
|
|
605.0
|
|
|
—
|
|
|
—
|
|
|
605.0
|
|
||||||
Repayments of revolving credit facility
|
—
|
|
|
—
|
|
|
(405.0
|
)
|
|
—
|
|
|
—
|
|
|
(405.0
|
)
|
||||||
Repurchase of common shares
|
(460.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(460.0
|
)
|
||||||
Repayments of bank overdrafts
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
||||||
Other financing activities
|
(3.1
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
||||||
Intra-entity activity, net
|
(70.7
|
)
|
|
(4.6
|
)
|
|
(359.7
|
)
|
|
435.0
|
|
|
—
|
|
|
—
|
|
||||||
Net cash used in financing activities
|
(618.4
|
)
|
|
(4.6
|
)
|
|
(982.7
|
)
|
|
(483.0
|
)
|
|
1,118.0
|
|
|
(970.7
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
1.7
|
|
|
0.1
|
|
|
70.3
|
|
|
26.6
|
|
|
—
|
|
|
98.7
|
|
||||||
(Decrease) increase in cash and cash equivalents
|
(1.3
|
)
|
|
—
|
|
|
(13.6
|
)
|
|
27.2
|
|
|
—
|
|
|
12.3
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
59.1
|
|
|
$
|
53.8
|
|
|
$
|
—
|
|
|
$
|
113.4
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
558.7
|
|
|
$
|
4.9
|
|
|
$
|
385.1
|
|
|
$
|
391.4
|
|
|
$
|
(979.2
|
)
|
|
$
|
360.9
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchase of property, plant and equipment
|
—
|
|
|
—
|
|
|
(195.6
|
)
|
|
—
|
|
|
—
|
|
|
(195.6
|
)
|
||||||
Investment in subsidiaries
|
(91.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91.0
|
|
|
—
|
|
||||||
Purchase of available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.4
|
)
|
|
—
|
|
|
(10.4
|
)
|
||||||
Proceeds from available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
10.0
|
|
||||||
Net cash used in investing activities
|
(91.0
|
)
|
|
—
|
|
|
(195.6
|
)
|
|
(0.4
|
)
|
|
91.0
|
|
|
(196.0
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends paid on common shares
|
(57.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57.5
|
)
|
||||||
Dividends paid on redeemable convertible preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Intra-entity dividends paid
|
—
|
|
|
—
|
|
|
(650.0
|
)
|
|
(329.2
|
)
|
|
979.2
|
|
|
—
|
|
||||||
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs
|
611.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
611.6
|
|
||||||
Repayments of term loan
|
—
|
|
|
—
|
|
|
(12.0
|
)
|
|
—
|
|
|
—
|
|
|
(12.0
|
)
|
||||||
Proceeds from securitization facility
|
—
|
|
|
—
|
|
|
—
|
|
|
1,837.1
|
|
|
—
|
|
|
1,837.1
|
|
||||||
Repayments of securitization facility
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,837.1
|
)
|
|
—
|
|
|
(1,837.1
|
)
|
||||||
Proceeds from revolving credit facility
|
—
|
|
|
—
|
|
|
598.0
|
|
|
—
|
|
|
—
|
|
|
598.0
|
|
||||||
Repayments of revolving credit facility
|
—
|
|
|
—
|
|
|
(339.0
|
)
|
|
—
|
|
|
—
|
|
|
(339.0
|
)
|
||||||
Repurchase of common shares
|
(1,000.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,000.0
|
)
|
||||||
Repayments of bank overdrafts
|
—
|
|
|
—
|
|
|
(13.3
|
)
|
|
—
|
|
|
—
|
|
|
(13.3
|
)
|
||||||
Other financing activities
|
(4.4
|
)
|
|
—
|
|
|
90.0
|
|
|
(0.6
|
)
|
|
(91.0
|
)
|
|
(6.0
|
)
|
||||||
Intra-entity activity, net
|
(19.1
|
)
|
|
(4.9
|
)
|
|
91.6
|
|
|
(67.6
|
)
|
|
—
|
|
|
—
|
|
||||||
Net cash used in financing activities
|
(469.4
|
)
|
|
(4.9
|
)
|
|
(234.7
|
)
|
|
(397.4
|
)
|
|
888.2
|
|
|
(218.2
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
1.9
|
|
|
0.1
|
|
|
102.0
|
|
|
33.7
|
|
|
—
|
|
|
137.7
|
|
||||||
(Decrease) increase in cash and cash equivalents
|
(1.7
|
)
|
|
—
|
|
|
(45.2
|
)
|
|
(6.4
|
)
|
|
—
|
|
|
(53.3
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
(1.7
|
)
|
||||||
Cash and cash equivalents at end of period
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
55.7
|
|
|
$
|
26.7
|
|
|
$
|
—
|
|
|
$
|
82.7
|
|
•
|
The Sterling Jewelers division is one reportable segment. It operated
1,613
stores in all 50 states at
October 28, 2017
. Its stores operate nationally in malls and off-mall locations principally as Kay Jewelers (“Kay”), including Kay Jewelers Outlet and Jared The Galleria Of Jewelry (“Jared”), including Jared Vault. The division also operates a variety of mall-based regional brands and the JamesAllen.com website, which was acquired in the R2Net acquisition. See Note
4
of Item 1 for additional information regarding the Company’s acquisition of R2Net during the third quarter of Fiscal 2018.
|
•
|
The Zale division consists of two reportable segments:
|
◦
|
Zale Jewelry, which operated
910
jewelry stores at
October 28, 2017
, is located primarily in shopping malls in North America. Zale Jewelry includes the US store brand Zales (Zales Jewelers and Zales Outlet), which operates in all 50 states, and the Canada store brand Peoples Jewellers, which operates in nine provinces. The division also operates the Gordon’s Jewelers and Mappins Jewellers regional brands.
|
◦
|
Piercing Pagoda, which operated
608
mall-based kiosks at
October 28, 2017
, is located in shopping malls in the US and Puerto Rico.
|
•
|
The UK Jewelry division is one reportable segment. It operated
508
stores at
October 28, 2017
. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.
|
(in millions, except per share amounts)
|
13 weeks ended
|
|
Change %
|
|
Impact of exchange rate movement
|
|
13 weeks ended October 29, 2016 at constant exchange rates (non-GAAP)
|
|
Change % from 13 weeks ended October 29, 2016 at constant exchange rates (non-GAAP)
|
||||||||||||
Sales by segments:
|
October 28, 2017
|
|
October 29, 2016
|
|
|
|
|
|
|
|
|
||||||||||
Sterling Jewelers
|
$
|
698.7
|
|
|
$
|
712.5
|
|
|
(1.9
|
)%
|
|
$
|
—
|
|
|
$
|
712.5
|
|
|
(1.9
|
)%
|
Zale Jewelry
|
268.2
|
|
|
282.4
|
|
|
(5.0
|
)%
|
|
2.1
|
|
|
284.5
|
|
|
(5.7
|
)%
|
||||
Piercing Pagoda
|
55.4
|
|
|
53.4
|
|
|
3.7
|
%
|
|
—
|
|
|
53.4
|
|
|
3.7
|
%
|
||||
UK Jewelry
|
128.4
|
|
|
130.3
|
|
|
(1.5
|
)%
|
|
2.5
|
|
|
132.8
|
|
|
(3.3
|
)%
|
||||
Other
|
6.2
|
|
|
7.6
|
|
|
(18.4
|
)%
|
|
—
|
|
|
7.6
|
|
|
(18.4
|
)%
|
||||
Total sales
|
1,156.9
|
|
|
1,186.2
|
|
|
(2.5
|
)%
|
|
4.6
|
|
|
1,190.8
|
|
|
(2.8
|
)%
|
||||
Cost of sales
|
(835.8
|
)
|
|
(836.2
|
)
|
|
—
|
%
|
|
(3.5
|
)
|
|
(839.7
|
)
|
|
0.5
|
%
|
||||
Gross margin
|
321.1
|
|
|
350.0
|
|
|
(8.3
|
)%
|
|
1.1
|
|
|
351.1
|
|
|
(8.5
|
)%
|
||||
Selling, general and administrative expenses
|
(375.9
|
)
|
|
(386.5
|
)
|
|
2.7
|
%
|
|
(1.4
|
)
|
|
(387.9
|
)
|
|
3.1
|
%
|
||||
Credit transaction, net
|
(12.2
|
)
|
(1)
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Other operating income, net
|
72.5
|
|
|
68.6
|
|
|
5.7
|
%
|
|
0.1
|
|
|
68.7
|
|
|
5.5
|
%
|
||||
Operating income by segment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sterling Jewelers
|
73.7
|
|
(2)
|
78.6
|
|
|
(6.2
|
)%
|
|
—
|
|
|
78.6
|
|
|
(6.2
|
)%
|
||||
Zale Jewelry
|
(15.7
|
)
|
|
(19.3
|
)
|
|
(18.7
|
)%
|
|
(0.1
|
)
|
|
(19.4
|
)
|
|
(19.1
|
)%
|
||||
Piercing Pagoda
|
(4.2
|
)
|
|
(5.4
|
)
|
|
(22.2
|
)%
|
|
—
|
|
|
(5.4
|
)
|
|
(22.2
|
)%
|
||||
UK Jewelry
|
(1.7
|
)
|
|
—
|
|
|
nm
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
nm
|
|
||||
Other
|
(46.6
|
)
|
(3)
|
(21.8
|
)
|
|
(113.8
|
)%
|
|
—
|
|
|
(21.8
|
)
|
|
(113.8
|
)%
|
||||
Total operating income
|
5.5
|
|
|
32.1
|
|
|
(82.9
|
)%
|
|
(0.2
|
)
|
|
31.9
|
|
|
(82.8
|
)%
|
||||
Interest expense, net
|
(16.6
|
)
|
|
(12.7
|
)
|
|
(30.7
|
)%
|
|
|
|
|
|
|
|||||||
Income before income taxes
|
(11.1
|
)
|
|
19.4
|
|
|
nm
|
|
|
|
|
|
|
|
|||||||
Income taxes
|
7.2
|
|
|
(2.4
|
)
|
|
nm
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
(3.9
|
)
|
|
$
|
17.0
|
|
|
nm
|
|
|
|
|
|
|
|
|||||
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
(2.2
|
)
|
|
nm
|
|
|
|
|
|
|
|
|||||||
Net income attributable to common shareholders
|
$
|
(12.1
|
)
|
|
$
|
14.8
|
|
|
nm
|
|
|
|
|
|
|
|
|||||
Basic earnings per share
|
$
|
(0.20
|
)
|
|
$
|
0.20
|
|
|
nm
|
|
|
|
|
|
|
|
|||||
Diluted earnings per share
|
$
|
(0.20
|
)
|
|
$
|
0.20
|
|
|
nm
|
|
|
|
|
|
|
|
(1)
|
Includes
$22.4 million
of transaction costs related to the credit transaction, offset by
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 of Item 1 for additional information.
|
(2)
|
Includes
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 of Item 1 for additional information.
|
(3)
|
Includes
$22.4 million
of transaction costs related to the credit transaction and
$8.1 million
of R2Net acquisition costs. See Note 3 and Note 4 of Item 1 for additional information regarding the credit transaction and R2Net acquisition, respectively.
|
nm
|
Not meaningful.
|
(in millions, except per share amounts)
|
39 weeks ended
|
|
Change %
|
|
Impact of exchange rate movement
|
|
39 weeks ended October 29, 2016 at constant exchange rates (non-GAAP)
|
|
Change % from 39 weeks ended October 29, 2016 at constant exchange rates (non-GAAP)
|
||||||||||||
Sales by segments:
|
October 28, 2017
|
|
October 29, 2016
|
|
|
|
|
|
|
|
|
||||||||||
Sterling Jewelers
|
$
|
2,437.8
|
|
|
$
|
2,532.3
|
|
|
(3.7
|
)%
|
|
$
|
—
|
|
|
$
|
2,532.3
|
|
|
(3.7
|
)%
|
Zale Jewelry
|
933.7
|
|
|
994.8
|
|
|
(6.1
|
)%
|
|
1.3
|
|
|
996.1
|
|
|
(6.3
|
)%
|
||||
Piercing Pagoda
|
187.4
|
|
|
179.4
|
|
|
4.5
|
%
|
|
—
|
|
|
179.4
|
|
|
4.5
|
%
|
||||
UK Jewelry
|
382.8
|
|
|
419.5
|
|
|
(8.7
|
)%
|
|
(26.2
|
)
|
|
393.3
|
|
|
(2.7
|
)%
|
||||
Other
|
18.2
|
|
|
12.5
|
|
|
45.6
|
%
|
|
—
|
|
|
12.5
|
|
|
45.6
|
%
|
||||
Total sales
|
3,959.9
|
|
|
4,138.5
|
|
|
(4.3
|
)%
|
|
(24.9
|
)
|
|
4,113.6
|
|
|
(3.7
|
)%
|
||||
Cost of sales
|
(2,689.7
|
)
|
|
(2,723.2
|
)
|
|
1.2
|
%
|
|
18.5
|
|
|
(2,704.7
|
)
|
|
0.6
|
%
|
||||
Gross margin
|
1,270.2
|
|
|
1,415.3
|
|
|
(10.3
|
)%
|
|
(6.4
|
)
|
|
1,408.9
|
|
|
(9.8
|
)%
|
||||
Selling, general and administrative expenses
|
(1,237.7
|
)
|
|
(1,264.9
|
)
|
|
2.2
|
%
|
|
6.6
|
|
|
(1,258.3
|
)
|
|
1.6
|
%
|
||||
Credit transaction, net
|
2.6
|
|
(1)
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Other operating income, net
|
221.3
|
|
|
213.6
|
|
|
3.6
|
%
|
|
—
|
|
|
213.6
|
|
|
3.6
|
%
|
||||
Operating income by segment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sterling Jewelers
|
362.6
|
|
(2)
|
417.8
|
|
|
(13.2
|
)%
|
|
—
|
|
|
417.8
|
|
|
(13.2
|
)%
|
||||
Zale Jewelry
|
(12.4
|
)
|
|
(0.5
|
)
|
|
nm
|
|
|
—
|
|
|
(0.5
|
)
|
|
nm
|
|
||||
Piercing Pagoda
|
—
|
|
|
2.2
|
|
|
(100.0
|
)%
|
|
—
|
|
|
2.2
|
|
|
(100.0
|
)%
|
||||
UK Jewelry
|
(1.9
|
)
|
|
3.0
|
|
|
nm
|
|
|
0.1
|
|
|
3.1
|
|
|
nm
|
|
||||
Other
|
(91.9
|
)
|
(3)
|
(58.5
|
)
|
|
(57.1
|
)%
|
|
0.1
|
|
|
(58.4
|
)
|
|
(57.4
|
)%
|
||||
Total operating income
|
256.4
|
|
|
364.0
|
|
|
(29.6
|
)%
|
|
0.2
|
|
|
364.2
|
|
|
(29.6
|
)%
|
||||
Interest expense, net
|
(42.7
|
)
|
|
(36.4
|
)
|
|
(17.3
|
)%
|
|
|
|
|
|
|
|||||||
Income before income taxes
|
213.7
|
|
|
327.6
|
|
|
(34.8
|
)%
|
|
|
|
|
|
|
|||||||
Income taxes
|
(45.7
|
)
|
|
(81.9
|
)
|
|
44.2
|
%
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
168.0
|
|
|
$
|
245.7
|
|
|
(31.6
|
)%
|
|
|
|
|
|
|
|||||
Dividends on redeemable convertible preferred shares
|
(24.6
|
)
|
|
(2.2
|
)
|
|
nm
|
|
|
|
|
|
|
|
|||||||
Net income attributable to common shareholders
|
$
|
143.4
|
|
|
$
|
243.5
|
|
|
(41.1
|
)%
|
|
|
|
|
|
|
|||||
Basic earnings per share
|
$
|
2.24
|
|
|
$
|
3.19
|
|
|
(29.8
|
)%
|
|
|
|
|
|
|
|||||
Diluted earnings per share
|
$
|
2.24
|
|
|
$
|
3.18
|
|
|
(29.6
|
)%
|
|
|
|
|
|
|
(1)
|
Includes
$20.7 million
gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables, offset by
$28.3 million
of transaction costs related to the credit transaction. See Note 3 of Item 1 for additional information.
|
(2)
|
Includes
$20.7 million
gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 of Item 1 for additional information.
|
(3)
|
Includes
$28.3 million
of transaction costs related to the credit transaction,
$9.4 million
of R2Net acquisition costs, and $3.4 million of CEO transition costs. See Note 3 and Note 4 of Item 1 for additional information regarding the credit transaction and R2Net acquisition, respectively.
|
nm
|
Not meaningful.
|
(in millions)
|
October 28, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||
Cash and cash equivalents
|
$
|
113.4
|
|
|
$
|
98.7
|
|
|
$
|
82.7
|
|
Loans and overdrafts
|
(291.8
|
)
|
|
(91.1
|
)
|
|
(288.8
|
)
|
|||
Long-term debt
|
(696.8
|
)
|
|
(1,317.9
|
)
|
|
(1,324.2
|
)
|
|||
Net debt
|
$
|
(875.2
|
)
|
|
$
|
(1,310.3
|
)
|
|
$
|
(1,530.3
|
)
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Net cash provided by operating activities
|
$
|
1,072.5
|
|
|
$
|
51.7
|
|
|
$
|
1,482.3
|
|
|
$
|
360.9
|
|
Purchase of property, plant and equipment
|
(60.4
|
)
|
|
(94.6
|
)
|
|
(166.1
|
)
|
|
(195.6
|
)
|
||||
Free cash flow
|
$
|
1,012.1
|
|
|
$
|
(42.9
|
)
|
|
$
|
1,316.2
|
|
|
$
|
165.3
|
|
4.
|
Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)
|
|
13 weeks ended
|
|
39 weeks ended
|
||||||||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
|
October 28, 2017
|
|
October 29, 2016
|
||||||||
Operating income
|
$
|
5.5
|
|
|
$
|
32.1
|
|
|
$
|
256.4
|
|
|
$
|
364.0
|
|
Depreciation and amortization
|
48.7
|
|
|
47.0
|
|
|
147.1
|
|
|
138.8
|
|
||||
Amortization of unfavorable leases and contracts
|
(2.2
|
)
|
|
(5.0
|
)
|
|
(10.8
|
)
|
|
(14.9
|
)
|
||||
EBITDA
|
$
|
52.0
|
|
|
$
|
74.1
|
|
|
$
|
392.7
|
|
|
$
|
487.9
|
|
•
|
Same store sales: Down
5.0%
, including an estimated 120 basis point negative impact due to weather-related incidents and systems and process disruptions associated with outsourcing of credit portfolio.
|
•
|
Total sales:
$1,156.9 million
, decreased
2.5%
. Total sales at constant exchange rates
(1)
decreased
2.8%
.
|
•
|
Operating income:
$5.5 million
, down
$26.6 million
.
|
•
|
Operating margin: down
220
basis points to
0.5%
, including 170 basis points attributable to net transaction costs related to the first phase of strategic credit outsourcing and the R2Net acquisition.
|
•
|
Loss per share:
$0.20
, including $0.25 per share in net transaction costs related to the first phase of strategic credit outsourcing and the R2Net acquisition, and $0.10 due to weather-related incidents and systems and process disruptions associated with outsourcing of credit portfolio.
|
•
|
Same store sales: Down
5.4%
.
|
•
|
Total sales:
$3,959.9 million
, decreased
4.3%
. Total sales at constant exchange rates
(1)
decreased
3.7%
.
|
•
|
Operating income:
$256.4 million
, down
$107.6 million
or
29.6%
.
|
•
|
Operating margin: down
230
basis points to
6.5%
.
|
•
|
Diluted earnings per share:
$2.24
, decreased
$0.94
or
29.6%
.
|
(1)
|
Non-GAAP measure.
|
|
Third Quarter
|
|
Year to Date
|
||||||||||||||||||||||||
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||||||||||||||
(in millions)
|
$
|
|
% of sales
|
|
$
|
|
% of sales
|
|
$
|
|
% of sales
|
|
$
|
|
% of sales
|
||||||||||||
Sales
|
$
|
1,156.9
|
|
|
100.0
|
%
|
|
$
|
1,186.2
|
|
|
100.0
|
%
|
|
$
|
3,959.9
|
|
|
100.0
|
%
|
|
$
|
4,138.5
|
|
|
100.0
|
%
|
Cost of sales
|
(835.8
|
)
|
|
(72.2
|
)
|
|
(836.2
|
)
|
|
(70.5
|
)
|
|
(2,689.7
|
)
|
|
(67.9
|
)
|
|
(2,723.2
|
)
|
|
(65.8
|
)
|
||||
Gross margin
|
321.1
|
|
|
27.8
|
|
|
350.0
|
|
|
29.5
|
|
|
1,270.2
|
|
|
32.1
|
|
|
1,415.3
|
|
|
34.2
|
|
||||
Selling, general and administrative expenses
|
(375.9
|
)
|
|
(32.5
|
)
|
|
(386.5
|
)
|
|
(32.6
|
)
|
|
(1,237.7
|
)
|
|
(31.3
|
)
|
|
(1,264.9
|
)
|
|
(30.6
|
)
|
||||
Credit transaction, net
|
(12.2
|
)
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||
Other operating income, net
|
72.5
|
|
|
6.3
|
|
|
68.6
|
|
|
5.8
|
|
|
221.3
|
|
|
5.6
|
|
|
213.6
|
|
|
5.2
|
|
||||
Operating income
|
5.5
|
|
|
0.5
|
|
|
32.1
|
|
|
2.7
|
|
|
256.4
|
|
|
6.5
|
|
|
364.0
|
|
|
8.8
|
|
||||
Interest expense, net
|
(16.6
|
)
|
|
(1.5
|
)
|
|
(12.7
|
)
|
|
(1.1
|
)
|
|
(42.7
|
)
|
|
(1.1
|
)
|
|
(36.4
|
)
|
|
(0.9
|
)
|
||||
Income before income taxes
|
(11.1
|
)
|
|
(1.0
|
)
|
|
19.4
|
|
|
1.6
|
|
|
213.7
|
|
|
5.4
|
|
|
327.6
|
|
|
7.9
|
|
||||
Income taxes
|
7.2
|
|
|
0.7
|
|
|
(2.4
|
)
|
|
(0.2
|
)
|
|
(45.7
|
)
|
|
(1.2
|
)
|
|
(81.9
|
)
|
|
(2.0
|
)
|
||||
Net income
|
$
|
(3.9
|
)
|
|
(0.3
|
)%
|
|
$
|
17.0
|
|
|
1.4
|
%
|
|
$
|
168.0
|
|
|
4.2
|
%
|
|
$
|
245.7
|
|
|
5.9
|
%
|
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
nm
|
|
|
(2.2
|
)
|
|
nm
|
|
|
(24.6
|
)
|
|
nm
|
|
|
(2.2
|
)
|
|
nm
|
|
||||
Net (loss) income attributable to common shareholders
|
$
|
(12.1
|
)
|
|
(1.0
|
)%
|
|
$
|
14.8
|
|
|
1.2
|
%
|
|
$
|
143.4
|
|
|
3.6
|
%
|
|
$
|
243.5
|
|
|
5.9
|
%
|
nm
|
Not meaningful.
|
|
Change from previous year
|
|
|
|||||||||||||||
Third quarter of Fiscal 2018
|
Same
store sales (1) |
|
Non-same
store sales, net (2) |
|
Total sales
at constant exchange rate
(3)
|
|
Exchange
translation impact (3) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
Sterling Jewelers division
|
(6.2
|
)%
|
|
4.3
|
%
|
|
(1.9
|
)%
|
|
—
|
%
|
|
(1.9
|
)%
|
|
$
|
698.7
|
|
Zale Jewelry
|
(3.4
|
)%
|
|
(2.3
|
)%
|
|
(5.7
|
)%
|
|
0.7
|
%
|
|
(5.0
|
)%
|
|
$
|
268.2
|
|
Piercing Pagoda
|
2.1
|
%
|
|
1.6
|
%
|
|
3.7
|
%
|
|
—
|
%
|
|
3.7
|
%
|
|
$
|
55.4
|
|
Zale division
|
(2.5
|
)%
|
|
(1.7
|
)%
|
|
(4.2
|
)%
|
|
0.6
|
%
|
|
(3.6
|
)%
|
|
$
|
323.6
|
|
UK Jewelry division
|
(5.1
|
)%
|
|
1.8
|
%
|
|
(3.3
|
)%
|
|
1.8
|
%
|
|
(1.5
|
)%
|
|
$
|
128.4
|
|
Other
(4)
|
|
|
|
|
|
|
|
|
|
|
$
|
6.2
|
|
|||||
Signet
|
(5.0
|
)%
|
|
2.2
|
%
|
|
(2.8
|
)%
|
|
0.3
|
%
|
|
(2.5
|
)%
|
|
$
|
1,156.9
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website. The Sterling Jewelers Division includes R2Net sales for the 47 day period since the date of acquisition.
|
(2)
|
Includes all sales from stores not open for 12 months.
|
(3)
|
Non-GAAP measure. See “Income Statement at Constant Exchange Rates” above.
|
(4)
|
Includes sales from Signet’s diamond sourcing initiative.
|
|
Change from previous year
|
|
|
|||||||||
Third quarter of Fiscal 2018
|
Same
store sales (1) |
|
Non-same
store sales, net (2) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||
Kay
|
(7.2
|
)%
|
|
2.8
|
%
|
|
(4.4
|
)%
|
|
$
|
436.3
|
|
Jared
(3)
|
(5.1
|
)%
|
|
1.3
|
%
|
|
(3.8
|
)%
|
|
$
|
218.0
|
|
R2Net
(4)
|
17.9
|
%
|
|
|
|
|
|
$
|
23.7
|
|
||
Regional brands
|
(16.3
|
)%
|
|
(13.3
|
)%
|
|
(29.6
|
)%
|
|
$
|
20.7
|
|
Sterling Jewelers division
|
(6.2
|
)%
|
|
4.3
|
%
|
|
(1.9
|
)%
|
|
$
|
698.7
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.
|
(2)
|
Includes all sales from stores not open or owned for 12 months.
|
(3)
|
Includes smaller concept Jared stores such as Jared Vault and Jared Jewelry Boutique.
|
(4)
|
Includes R2Net sales for the 47 day period since the date of acquisition. Same store sales presented for R2Net to provide comparative performance measure.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Third Quarter
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||
Kay
|
$
|
534
|
|
|
$
|
541
|
|
|
(1.3
|
)%
|
|
5.5
|
%
|
|
(5.3
|
)%
|
|
(8.9
|
)%
|
Jared
|
$
|
729
|
|
|
$
|
675
|
|
|
8.0
|
%
|
|
(3.0
|
)%
|
|
(11.7
|
)%
|
|
(3.1
|
)%
|
Regional brands
|
$
|
553
|
|
|
$
|
530
|
|
|
4.3
|
%
|
|
3.6
|
%
|
|
(19.6
|
)%
|
|
(14.3
|
)%
|
Sterling Jewelers division
|
$
|
587
|
|
|
$
|
578
|
|
|
1.6
|
%
|
|
2.9
|
%
|
|
(7.6
|
)%
|
|
(7.7
|
)%
|
(2)
|
Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales.
|
|
Change from previous year
|
|
|
|||||||||||||||
Third quarter of Fiscal 2018
|
Same store sales
(1)
|
|
Non-same
store sales, net (2) |
|
Total sales
at constant exchange rate
(3)
|
|
Exchange
translation impact (3) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
Zales
|
(3.3
|
)%
|
|
(1.0
|
)%
|
|
(4.3
|
)%
|
|
—
|
%
|
|
(4.3
|
)%
|
|
$
|
215.7
|
|
Gordon’s
|
(15.8
|
)%
|
|
(18.9
|
)%
|
|
(34.7
|
)%
|
|
—
|
%
|
|
(34.7
|
)%
|
|
$
|
6.4
|
|
Zale US Jewelry
|
(3.7
|
)%
|
|
(1.8
|
)%
|
|
(5.5
|
)%
|
|
—
|
%
|
|
(5.5
|
)%
|
|
$
|
222.1
|
|
Peoples
|
(0.5
|
)%
|
|
(1.1
|
)%
|
|
(1.6
|
)%
|
|
4.3
|
%
|
|
2.7
|
%
|
|
$
|
42.3
|
|
Mappins
|
(15.9
|
)%
|
|
(24.7
|
)%
|
|
(40.6
|
)%
|
|
2.9
|
%
|
|
(37.7
|
)%
|
|
$
|
3.8
|
|
Zale Canada Jewelry
|
(1.9
|
)%
|
|
(4.8
|
)%
|
|
(6.7
|
)%
|
|
4.2
|
%
|
|
(2.5
|
)%
|
|
$
|
46.1
|
|
Total Zale Jewelry
|
(3.4
|
)%
|
|
(2.3
|
)%
|
|
(5.7
|
)%
|
|
0.7
|
%
|
|
(5.0
|
)%
|
|
$
|
268.2
|
|
Piercing Pagoda
|
2.1
|
%
|
|
1.6
|
%
|
|
3.7
|
%
|
|
—
|
%
|
|
3.7
|
%
|
|
$
|
55.4
|
|
Zale division
|
(2.5
|
)%
|
|
(1.7
|
)%
|
|
(4.2
|
)%
|
|
0.6
|
%
|
|
(3.6
|
)%
|
|
$
|
323.6
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.
|
(2)
|
Includes all sales from stores not open for 12 months.
|
(3)
|
Non-GAAP measure. See “Income Statement at Constant Exchange Rates” above.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Third Quarter
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||
Zales
|
$
|
537
|
|
|
$
|
522
|
|
|
2.9
|
%
|
|
3.0
|
%
|
|
(7.2
|
)%
|
|
(3.2
|
)%
|
Gordon’s
|
$
|
545
|
|
|
$
|
503
|
|
|
8.3
|
%
|
|
1.4
|
%
|
|
(17.7
|
)%
|
|
(12.3
|
)%
|
Peoples
(3)
|
C$
|
469
|
|
|
C$
|
462
|
|
|
1.5
|
%
|
|
5.6
|
%
|
|
(4.2
|
)%
|
|
(6.5
|
)%
|
Mappins
(3)
|
C$
|
397
|
|
|
C$
|
412
|
|
|
(3.6
|
)%
|
|
—
|
%
|
|
(10.1
|
)%
|
|
(0.8
|
)%
|
Total Zale Jewelry
|
$
|
498
|
|
|
$
|
486
|
|
|
2.5
|
%
|
|
3.5
|
%
|
|
(6.9
|
)%
|
|
(4.2
|
)%
|
Piercing Pagoda
|
$
|
60
|
|
|
$
|
55
|
|
|
9.1
|
%
|
|
14.6
|
%
|
|
(6.6
|
)%
|
|
(4.3
|
)%
|
Zale division
|
$
|
218
|
|
|
$
|
210
|
|
|
3.8
|
%
|
|
5.5
|
%
|
|
(6.7
|
)%
|
|
(4.2
|
)%
|
(1)
|
Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.
|
(2)
|
Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales.
|
(3)
|
Amounts for Zale Canada Jewelry stores are denominated in Canadian dollars.
|
|
Change from previous year
|
|
|
|||||||||||||||
Third quarter of Fiscal 2018
|
Same
store sales (1) |
|
Non-same
store sales, net (2) |
|
Total sales
at constant exchange rate
(3)
|
|
Exchange
translation impact (3) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
H.Samuel
|
(4.6
|
)%
|
|
0.8
|
%
|
|
(3.8
|
)%
|
|
1.9
|
%
|
|
(1.9
|
)%
|
|
$
|
61.6
|
|
Ernest Jones
|
(5.6
|
)%
|
|
2.7
|
%
|
|
(2.9
|
)%
|
|
1.9
|
%
|
|
(1.0
|
)%
|
|
$
|
66.8
|
|
UK Jewelry division
|
(5.1
|
)%
|
|
1.8
|
%
|
|
(3.3
|
)%
|
|
1.8
|
%
|
|
(1.5
|
)%
|
|
$
|
128.4
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.
|
(2)
|
Includes all sales from stores not open for 12 months.
|
(3)
|
Non-GAAP measure. See “Income Statement at Constant Exchange Rates” above.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Third Quarter
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||
H.Samuel
|
£
|
85
|
|
|
£
|
78
|
|
|
9.0
|
%
|
|
1.3
|
%
|
|
(12.6
|
)%
|
|
(1.7
|
)%
|
Ernest Jones
|
£
|
390
|
|
|
£
|
359
|
|
|
8.6
|
%
|
|
17.1
|
%
|
|
(14.0
|
)%
|
|
(9.4
|
)%
|
UK Jewelry division
|
£
|
144
|
|
|
£
|
133
|
|
|
8.3
|
%
|
|
6.5
|
%
|
|
(12.9
|
)%
|
|
(3.3
|
)%
|
(1)
|
Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.
|
(2)
|
Net merchandise sales include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales. As a result, the sum of the changes will not agree to change in same store sales.
|
|
Change from previous year
|
|
|
|||||||||||||||
Year to date Fiscal 2018
|
Same
store sales (1) |
|
Non-same
store sales, net (2) |
|
Total sales
at constant exchange rate
(3)
|
|
Exchange
translation impact (3) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
Sterling Jewelers division
|
(6.1
|
)%
|
|
2.4
|
%
|
|
(3.7
|
)%
|
|
—
|
%
|
|
(3.7
|
)%
|
|
$
|
2,437.8
|
|
Zale Jewelry
|
(5.4
|
)%
|
|
(0.9
|
)%
|
|
(6.3
|
)%
|
|
0.2
|
%
|
|
(6.1
|
)%
|
|
$
|
933.7
|
|
Piercing Pagoda
|
2.3
|
%
|
|
2.2
|
%
|
|
4.5
|
%
|
|
—
|
%
|
|
4.5
|
%
|
|
$
|
187.4
|
|
Zale division
|
(4.2
|
)%
|
|
(0.4
|
)%
|
|
(4.6
|
)%
|
|
0.1
|
%
|
|
(4.5
|
)%
|
|
$
|
1,121.1
|
|
UK Jewelry division
|
(4.0
|
)%
|
|
1.3
|
%
|
|
(2.7
|
)%
|
|
(6.0
|
)%
|
|
(8.7
|
)%
|
|
$
|
382.8
|
|
Other
(4)
|
|
|
|
|
|
|
|
|
|
|
$
|
18.2
|
|
|||||
Signet
|
(5.4
|
)%
|
|
1.7
|
%
|
|
(3.7
|
)%
|
|
(0.6
|
)%
|
|
(4.3
|
)%
|
|
$
|
3,959.9
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website. The Sterling Jewelers Division includes R2Net sales for the 47 day period since the date of acquisition.
|
(2)
|
Includes all sales from stores not open for 12 months.
|
(3)
|
Non-GAAP measure. See “Income Statement at Constant Exchange Rates” above.
|
(4)
|
Includes sales from Signet’s diamond sourcing initiative.
|
|
Change from previous year
|
|
|
|||||||||
Year to date Fiscal 2018
|
Same
store sales (1) |
|
Non-same
store sales, net (2) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||
Kay
|
(6.3
|
)%
|
|
2.7
|
%
|
|
(3.6
|
)%
|
|
$
|
1,566.1
|
|
Jared
(3)
|
(5.0
|
)%
|
|
1.3
|
%
|
|
(3.7
|
)%
|
|
$
|
767.6
|
|
R2Net
(4)
|
17.9
|
%
|
|
|
|
|
|
$
|
23.7
|
|
||
Regional brands
|
(16.2
|
)%
|
|
(11.3
|
)%
|
|
(27.5
|
)%
|
|
$
|
80.4
|
|
Sterling Jewelers division
|
(6.1
|
)%
|
|
2.4
|
%
|
|
(3.7
|
)%
|
|
$
|
2,437.8
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.
|
(2)
|
Includes all sales from stores not open or owned for 12 months.
|
(3)
|
Includes smaller concept Jared stores such as Jared Vault and Jared Jewelry Boutique.
|
(4)
|
Includes R2Net sales for the 47 day period since the date of acquisition. Same store sales presented for R2Net to provide comparative performance measure.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Year to date
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||
Kay
|
$
|
484
|
|
|
$
|
477
|
|
|
1.5
|
%
|
|
6.5
|
%
|
|
(7.6
|
)%
|
|
(6.8
|
)%
|
Jared
|
$
|
626
|
|
|
$
|
575
|
|
|
8.9
|
%
|
|
(5.3
|
)%
|
|
(12.7
|
)%
|
|
(1.1
|
)%
|
Regional brands
|
$
|
501
|
|
|
$
|
472
|
|
|
6.1
|
%
|
|
4.5
|
%
|
|
(21.1
|
)%
|
|
(11.3
|
)%
|
Sterling Jewelers division
|
$
|
524
|
|
|
$
|
505
|
|
|
3.8
|
%
|
|
2.9
|
%
|
|
(9.6
|
)%
|
|
(5.5
|
)%
|
(1)
|
Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.
|
(2)
|
Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales.
|
|
Change from previous year
|
|
|
|||||||||||||||
Year to date Fiscal 2018
|
Same store sales
(1)
|
|
Non-same
store sales, net (2) |
|
Total sales
at constant exchange rate
(3)
|
|
Exchange
translation impact (3) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
Zales
|
(6.0
|
)%
|
|
0.6
|
%
|
|
(5.4
|
)%
|
|
—
|
%
|
|
(5.4
|
)%
|
|
$
|
761.1
|
|
Gordon’s
|
(18.2
|
)%
|
|
(19.0
|
)%
|
|
(37.2
|
)%
|
|
—
|
%
|
|
(37.2
|
)%
|
|
$
|
24.5
|
|
Zale US Jewelry
|
(6.4
|
)%
|
|
(0.5
|
)%
|
|
(6.9
|
)%
|
|
—
|
%
|
|
(6.9
|
)%
|
|
$
|
785.6
|
|
Peoples
|
1.8
|
%
|
|
(0.5
|
)%
|
|
1.3
|
%
|
|
0.8
|
%
|
|
2.1
|
%
|
|
$
|
134.5
|
|
Mappins
|
(10.1
|
)%
|
|
(19.8
|
)%
|
|
(29.9
|
)%
|
|
0.7
|
%
|
|
(29.2
|
)%
|
|
$
|
13.6
|
|
Zale Canada Jewelry
|
0.6
|
%
|
|
(3.3
|
)%
|
|
(2.7
|
)%
|
|
0.8
|
%
|
|
(1.9
|
)%
|
|
$
|
148.1
|
|
Total Zale Jewelry
|
(5.4
|
)%
|
|
(0.9
|
)%
|
|
(6.3
|
)%
|
|
0.2
|
%
|
|
(6.1
|
)%
|
|
$
|
933.7
|
|
Piercing Pagoda
|
2.3
|
%
|
|
2.2
|
%
|
|
4.5
|
%
|
|
—
|
%
|
|
4.5
|
%
|
|
$
|
187.4
|
|
Zale division
|
(4.2
|
)%
|
|
(0.4
|
)%
|
|
(4.6
|
)%
|
|
0.1
|
%
|
|
(4.5
|
)%
|
|
$
|
1,121.1
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.
|
(2)
|
Includes all sales from stores not open for 12 months.
|
(3)
|
Non-GAAP measure. See “Income Statement at Constant Exchange Rates” above.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Year to date
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||
Zales
|
$
|
495
|
|
|
$
|
488
|
|
|
1.4
|
%
|
|
2.5
|
%
|
|
(8.8
|
)%
|
|
(1.8
|
)%
|
Gordon’s
|
$
|
486
|
|
|
$
|
457
|
|
|
6.3
|
%
|
|
0.9
|
%
|
|
(19.8
|
)%
|
|
(12.3
|
)%
|
Peoples
(3)
|
C$
|
452
|
|
|
C$
|
430
|
|
|
5.1
|
%
|
|
6.5
|
%
|
|
(4.9
|
)%
|
|
(9.0
|
)%
|
Mappins
(3)
|
C$
|
385
|
|
|
C$
|
382
|
|
|
0.8
|
%
|
|
0.8
|
%
|
|
(9.5
|
)%
|
|
(5.3
|
)%
|
Total Zale Jewelry
|
$
|
461
|
|
|
$
|
453
|
|
|
1.8
|
%
|
|
3.7
|
%
|
|
(8.4
|
)%
|
|
(3.8
|
)%
|
Piercing Pagoda
|
$
|
61
|
|
|
$
|
56
|
|
|
8.9
|
%
|
|
14.3
|
%
|
|
(6.1
|
)%
|
|
(6.4
|
)%
|
Zale division
|
$
|
215
|
|
|
$
|
211
|
|
|
1.9
|
%
|
|
6.5
|
%
|
|
(7.0
|
)%
|
|
(5.4
|
)%
|
(1)
|
Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.
|
(2)
|
Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales.
|
(3)
|
Amounts for Zale Canada Jewelry stores are denominated in Canadian dollars.
|
|
Change from previous year
|
|
|
|||||||||||||||
Year to date Fiscal 2018
|
Same
store sales (1) |
|
Non-same
store sales, net (2) |
|
Total sales
at constant exchange rate
(3)
|
|
Exchange
translation impact (3) |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
H.Samuel
|
(4.6
|
)%
|
|
1.2
|
%
|
|
(3.4
|
)%
|
|
(6.1
|
)%
|
|
(9.5
|
)%
|
|
$
|
184.4
|
|
Ernest Jones
|
(3.4
|
)%
|
|
1.4
|
%
|
|
(2.0
|
)%
|
|
(6.0
|
)%
|
|
(8.0
|
)%
|
|
$
|
198.4
|
|
UK Jewelry division
|
(4.0
|
)%
|
|
1.3
|
%
|
|
(2.7
|
)%
|
|
(6.0
|
)%
|
|
(8.7
|
)%
|
|
$
|
382.8
|
|
(1)
|
Based on stores open for at least 12 months. eCommerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.
|
(2)
|
Includes all sales from stores not open for 12 months.
|
(3)
|
Non-GAAP measure. See “Income Statement at Constant Exchange Rates” above.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Year to date
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||
H.Samuel
|
£
|
84
|
|
|
£
|
76
|
|
|
10.5
|
%
|
|
1.3
|
%
|
|
(13.6
|
)%
|
|
(1.1
|
)%
|
Ernest Jones
|
£
|
370
|
|
|
£
|
317
|
|
|
16.7
|
%
|
|
11.7
|
%
|
|
(17.1
|
)%
|
|
(7.0
|
)%
|
UK Jewelry division
|
£
|
141
|
|
|
£
|
126
|
|
|
11.9
|
%
|
|
4.2
|
%
|
|
(14.3
|
)%
|
|
(2.4
|
)%
|
(1)
|
Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.
|
(2)
|
Net merchandise sales include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales. As a result, the sum of the changes will not agree to change in same store sales.
|
•
|
The Sterling Jewelers division gross margin dollars decreased
$20.2 million
. The gross margin rate decreased
230
basis points, of which 60 basis points is attributed to inclusion of R2Net. The remainder of the rate decline is primarily due to de-leverage of fixed costs, higher disposition of inventory in part due to distribution center consolidation, offset in part by gross merchandise margin improvement and less bad debt expense.
|
•
|
The Zale division gross margin dollars decreased
$5.6 million
. The gross margin rate decreased
60
basis points due primarily to de-leverage of fixed costs, higher disposition of inventory in part due to distribution center consolidation, and promotions, partially offset by an improvement in gross merchandise margin.
|
•
|
Gross margin dollars in the UK Jewelry division decreased
$3.2 million
. The gross margin rate decreased
210
basis points driven principally by greater promotional activity and de-leverage of fixed costs.
|
•
|
The Sterling Jewelers division gross margin dollars decreased
$101.5 million
. The gross margin rate declined
280
basis points due primarily to lower sales, which de-leveraged fixed costs such as store occupancy, as well as higher bad debt expense and a lower gross merchandise margin rate due to greater promotional activity.
|
•
|
The Zale division gross margin dollars decreased
$26.7 million
. The gross margin rate declined
80
basis points due primarily to lower sales, which de-leveraged fixed costs such as store occupancy, offset in part by a higher gross merchandise margin rate.
|
•
|
Gross margin dollars in the UK Jewelry division decreased
$16.4 million
. The gross margin rate declined
180
basis points driven principally by lower sales, which de-leveraged fixed costs such as store occupancy, and a lower gross merchandise margin rate.
|
|
Third Quarter
|
||||||||||||
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||||
(in millions)
|
$
|
|
% of divisional sales
|
|
$
|
|
% of divisional sales
|
||||||
Sterling Jewelers division (includes R2Net)
|
$
|
73.7
|
|
(1)
|
10.5
|
%
|
|
$
|
78.6
|
|
|
11.0
|
%
|
Zale division
(2)
|
(19.9
|
)
|
|
(6.1
|
)%
|
|
(24.7
|
)
|
|
(7.4
|
)%
|
||
UK Jewelry division
|
(1.7
|
)
|
|
(1.3
|
)%
|
|
—
|
|
|
—
|
%
|
||
Other
|
(46.6
|
)
|
(3)
|
nm
|
|
|
(21.8
|
)
|
|
nm
|
|
||
Operating income
|
$
|
5.5
|
|
|
0.5
|
%
|
|
$
|
32.1
|
|
|
2.7
|
%
|
(1)
|
Includes
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 of Item 1 for additional information.
|
(2)
|
In the third quarter of Fiscal 2018, the Zale division operating loss of
$19.9 million
included operating loss of
$15.7 million
from Zale Jewelry and
$4.2 million
from Piercing Pagoda. In the third quarter of Fiscal 2017, the Zale division operating loss of
$24.7 million
included operating loss of
$19.3 million
from Zale Jewelry and an operating loss of
$5.4 million
from Piercing Pagoda.
|
(3)
|
Includes
$22.4 million
of transaction costs related to the credit transaction and
$8.1 million
of R2Net acquisition costs. See Note 3 and Note 4 of Item 1 for additional information regarding the credit transaction and R2Net acquisition, respectively.
|
nm
|
Not meaningful.
|
|
Year to date
|
||||||||||||
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||||
(in millions)
|
$
|
|
% of divisional sales
|
|
$
|
|
% of divisional sales
|
||||||
Sterling Jewelers division (includes R2Net)
|
$
|
362.6
|
|
(1)
|
14.9
|
%
|
|
$
|
417.8
|
|
|
16.5
|
%
|
Zale division
(2)
|
(12.4
|
)
|
|
(1.1
|
)%
|
|
1.7
|
|
|
0.1
|
%
|
||
UK Jewelry division
|
(1.9
|
)
|
|
nm
|
|
|
3.0
|
|
|
0.7
|
%
|
||
Other
|
(91.9
|
)
|
(3)
|
nm
|
|
|
(58.5
|
)
|
|
nm
|
|
||
Operating income
|
$
|
256.4
|
|
|
6.5
|
%
|
|
$
|
364.0
|
|
|
8.8
|
%
|
(1)
|
Includes
$20.7 million
gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the
$10.2 million
gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 of Item 1 for additional information.
|
(2)
|
In the year to date period of Fiscal 2018, the Zale division operating loss of
$12.4 million
included operating loss of
$12.4 million
from Zale Jewelry and
$0.0 million
from Piercing Pagoda. In the year to date period of Fiscal 2017, the Zale division operating income of
$1.7 million
included operating loss of
$0.5 million
from Zale Jewelry and operating income of
$2.2 million
from Piercing Pagoda.
|
(3)
|
Includes
$28.3 million
of transaction costs related to the credit transaction,
$9.4 million
of R2Net acquisition costs, and $3.4 million of CEO transition costs. See Note 3 and Note 4 of Item 1 for additional information regarding the credit transaction and R2Net acquisition, respectively.
|
nm
|
Not meaningful.
|
|
39 weeks ended
|
||||||
(in millions)
|
October 28, 2017
|
|
October 29, 2016
|
||||
Net cash provided by operating activities
|
$
|
1,482.3
|
|
|
$
|
360.9
|
|
Net cash used in investing activities
|
(499.3
|
)
|
|
(196.0
|
)
|
||
Net cash used in financing activities
|
(970.7
|
)
|
|
(218.2
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
$
|
12.3
|
|
|
$
|
(53.3
|
)
|
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
$
|
98.7
|
|
|
$
|
137.7
|
|
Increase (decrease) in cash and cash equivalents
|
12.3
|
|
|
(53.3
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
2.4
|
|
|
(1.7
|
)
|
||
Cash and cash equivalents at end of period
|
$
|
113.4
|
|
|
$
|
82.7
|
|
•
|
Net income decreased by
$77.7 million
to
$168.0 million
from
$245.7 million
.
|
•
|
Depreciation and amortization
increased
$8.3 million
to
$147.1 million
from
$138.8 million
in the prior year comparable period, principally due to investments in IT.
|
•
|
Cash provided by accounts receivable totaled
$1,246.3 million
, including
$960.2 million
from the sale of the prime portion of the in-house receivable portfolio. In addition to the proceeds from the credit transaction, cash provided by accounts receivable was
$286.1 million
as compared to
$174.0 million
in the prior year comparable period. In the Sterling Jewelers division, credit participation was
60.8%
and the average monthly collection rate was
10.6%
compared to
63.6%
and
11.2%
, respectively, in the prior year comparable period. The decline in penetration rate was driven by a combination of a continued trend in lower credit applications and therefore resulting in a lower number of approved credit applicants as well as disruption related to the credit transaction. The decline in the collection rate is due principally to credit plan mix, including recent programs with extended payment terms and reduced interest rates.
|
|
39 weeks ended
|
||||||
|
October 28, 2017
|
|
October 29, 2016
|
||||
Total Sterling Jewelers sales
(1)
(millions)
|
$
|
2,414.1
|
|
|
$
|
2,532.3
|
|
Credit sales (millions)
|
$
|
1,467.2
|
|
|
$
|
1,610.1
|
|
Credit sales as % of total Sterling Jewelers sales
(2)
|
60.8
|
%
|
|
63.6
|
%
|
||
|
|
|
|
||||
Net bad debt expense (millions)
(4)
|
$
|
151.7
|
|
|
$
|
146.1
|
|
Opening receivables (millions)
|
$
|
1,952.0
|
|
|
$
|
1,855.9
|
|
Closing receivables (millions)
(2)
|
$
|
706.5
|
|
|
$
|
1,679.3
|
|
Number of active credit accounts at period end
(5)
|
529,662
|
|
|
1,227,048
|
|
||
Average outstanding account balance at period end
|
$
|
1,333
|
|
|
$
|
1,360
|
|
Average monthly collection rate
|
10.6
|
%
|
(7)
|
11.2
|
%
|
||
Ending bad debt allowance as a % of ending accounts receivable
(2)
|
15.4
|
%
|
|
7.9
|
%
|
||
Net charge-offs as a % of average gross accounts receivable
(2)(6)
|
*
|
|
(8)
|
8.1
|
%
|
||
Non performing receivables as a % of ending accounts receivable
(2)
|
7.5
|
%
|
|
4.9
|
%
|
||
|
|
|
|
||||
Credit portfolio impact:
|
|
|
|
||||
Net bad debt expense (millions)
(3)
|
$
|
(151.7
|
)
|
|
$
|
(146.1
|
)
|
Late charge income (millions)
|
$
|
25.6
|
|
|
$
|
26.9
|
|
Interest income from in-house customer finance programs (millions)
(6)
|
$
|
214.1
|
|
|
$
|
209.9
|
|
|
$
|
88.0
|
|
|
$
|
90.7
|
|
(6)
|
Calculation reflects charge-offs incurred during 39 week periods ended
October 28, 2017
and
October 29, 2016
, respectively. Net charge-offs calculated as gross charge-offs less recoveries. See Note
11
of Item 1 for additional information.
|
(8)
|
During the third quarter of Fiscal 2018, the Company completed the sale of a portion of the Sterling Jewelers customer in-house finance receivables. As a result, this year-to-date metric is not applicable for Fiscal 2018.
|
•
|
Cash provided by inventory and inventory-related items was
$4.6 million
compared to cash used of
$217.0 million
in the prior year comparable period. Total inventory as of
October 28, 2017
was
$2,466.1 million
compared to the prior year comparable quarter balance of
$2,649.4 million
. The decrease in inventory balances from prior year is attributed to a continued focus on inventory management, offset in part by the effect of foreign exchange.
|
•
|
Cash used for accounts payable was
$39.7 million
compared to
$114.1 million
in the prior year comparable period primarily driven by timing of payments made in connection with inventory purchases.
|
•
|
Cash used for accrued expenses and other liabilities was
$5.4 million
compared to
$82.2 million
in the prior year comparable period primarily driven by the timing of payments associated with payroll-related items including incentive compensation and other taxes, as well as the cash flows received in accordance with the Program Agreement entered into with Comenity Bank in May 2017 as discussed in Note 3 of Item 1.
|
|
January 28, 2017
|
|
Openings
|
|
Closures
|
|
October 28, 2017
|
||||
Store count:
|
|
|
|
|
|
|
|
||||
Kay
|
1,192
|
|
|
53
|
|
|
(8
|
)
|
|
1,237
|
|
Jared
|
275
|
|
|
2
|
|
|
(1
|
)
|
|
276
|
|
Regional brands
|
121
|
|
|
—
|
|
|
(21
|
)
|
|
100
|
|
Sterling Jewelers division
|
1,588
|
|
(1)
|
55
|
|
|
(30
|
)
|
|
1,613
|
|
|
|
|
|
|
|
|
|
|
|
||
Zales
|
751
|
|
|
11
|
|
|
(39
|
)
|
|
723
|
|
Peoples
|
143
|
|
|
2
|
|
|
(12
|
)
|
|
133
|
|
Regional brands
|
76
|
|
|
—
|
|
|
(22
|
)
|
|
54
|
|
Total Zale Jewelry
|
970
|
|
|
13
|
|
|
(73
|
)
|
|
910
|
|
Piercing Pagoda
|
616
|
|
|
9
|
|
|
(17
|
)
|
|
608
|
|
Zale division
|
1,586
|
|
(1)
|
22
|
|
|
(90
|
)
|
|
1,518
|
|
|
|
|
|
|
|
|
|
|
|
||
H.Samuel
|
304
|
|
|
2
|
|
|
(2
|
)
|
|
304
|
|
Ernest Jones
|
204
|
|
|
1
|
|
|
(1
|
)
|
|
204
|
|
UK Jewelry division
|
508
|
|
(1)
|
3
|
|
|
(3
|
)
|
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signet
|
3,682
|
|
|
80
|
|
|
(123
|
)
|
|
3,639
|
|
(1)
|
The annual net change in selling square footage for Fiscal 2017 for the Sterling Jewelers division, Zale division and UK Jewelry division was 4.3%, (0.2)%, and 1.0%, respectively.
|
|
|
|
39 weeks ended October 28, 2017
|
|
39 weeks ended October 29, 2016
|
||||||||||||||||||||
(in millions, except per share amounts)
|
Amount
authorized |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
||||||||||||
2016 Program
(1)
|
$
|
1,375.0
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
|
8.7
|
|
|
$
|
706.9
|
|
|
$
|
81.32
|
|
2013 Program
(2)
|
$
|
350.0
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
1.2
|
|
|
135.6
|
|
|
$
|
111.26
|
|
|||
Total
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
|
9.9
|
|
|
$
|
842.5
|
|
|
$
|
85.00
|
|
(1)
|
The 2016 Program had
$50.6 million
remaining as of
October 28, 2017
.
|
(2)
|
The 2013 Program was completed in May 2016.
|
n/a
|
Not applicable.
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||||||||||
(in millions, except per share amounts)
|
Cash dividend per share
|
|
Total
dividends |
|
Cash dividend
per share |
|
Total
dividends |
||||||||
First quarter
|
$
|
0.31
|
|
|
$
|
21.3
|
|
|
$
|
0.26
|
|
|
$
|
20.4
|
|
Second quarter
|
0.31
|
|
|
18.7
|
|
|
0.26
|
|
|
19.7
|
|
||||
Third quarter
(1)
|
0.31
|
|
|
18.7
|
|
|
0.26
|
|
|
18.1
|
|
||||
Total
|
$
|
0.93
|
|
|
$
|
58.7
|
|
|
$
|
0.78
|
|
|
$
|
58.2
|
|
(1)
|
Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
October 28, 2017
and
October 29, 2016
,
$18.7 million
and
$18.1 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends declared on common shares for the
third
quarter of
Fiscal 2018
and
Fiscal 2017
, respectively.
|
|
Fiscal 2018
|
|
Fiscal 2017
|
||||
(in millions)
|
Total cash
dividends |
|
Total cash
dividends |
||||
First quarter
|
$
|
7.8
|
|
|
$
|
—
|
|
Second quarter
|
7.8
|
|
|
—
|
|
||
Third quarter
(1)
|
7.8
|
|
|
—
|
|
||
Total
|
$
|
23.4
|
|
|
$
|
—
|
|
(1)
|
Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
October 28, 2017
,
$7.8 million
has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet reflecting the cash dividends on preferred shares declared for the
third
quarter of
Fiscal 2018
. As of
October 29, 2016
, although no dividends were declared by the Company on the preferred shares,
$2.1 million
was recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cumulative undeclared dividends on preferred shares. See Note 6 for additional information regarding the dividend rights of preferred shareholders.
|
Period
|
Total number of shares
purchased (1) |
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
(2)
|
|
Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
|
||||||
July 30, 2017 to August 26, 2017
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
650,586,636
|
|
August 27, 2017 to September 23, 2017
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
650,586,636
|
|
September 24, 2017 to October 28, 2017
|
8,648
|
|
|
$
|
61.26
|
|
|
—
|
|
|
$
|
650,586,636
|
|
Total
|
8,648
|
|
|
$
|
61.26
|
|
|
—
|
|
|
$
|
650,586,636
|
|
(1)
|
Includes
8,648
shares delivered to Signet by employees to satisfy minimum tax withholding obligations due upon the vesting or payment of stock awards under share-based compensation programs. These are not repurchased in connection with any publicly announced share repurchase programs.
|
(2)
|
In February 2016 and August 2016, the Board of Directors authorized the repurchase of Signet's common shares up to
$750.0 million
and
$625.0 million
, respectively, for a combined total of
$1,375.0 million
(the “2016 Program”). In June 2017, the Board of Directors authorized a new program to repurchase
$600.0 million
of Signet’s common shares (the “2017 Program”). The 2016 Program and 2017 Program may be suspended or discontinued at any time without notice.
|
|
|
|
Number
|
|
Description of Exhibits
(1)
|
|
|
|
10.1*
|
|
|
|
|
|
10.2
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
32.2*
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document.
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
Signet hereby agrees to furnish to the U.S. Securities and Exchange Commission, upon request, a copy of each instrument that defines the rights of holders of long-term debt under which the total amount of securities authorized does not exceed 10% of the total assets of Signet and its subsidiaries on a consolidated basis that is not filed or incorporated by reference as an exhibit to our annual and quarterly reports.
|
*
|
Filed herewith.
|
|
|
|
|
|
|
|
|
|
|
|
Signet Jewelers Limited
|
||
|
|
|
|
|||
Date:
|
|
December 1, 2017
|
|
By:
|
|
/s/ Michele L. Santana
|
|
|
|
|
Name:
|
|
Michele L. Santana
|
|
|
|
|
Title:
|
|
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
|
1 Year Signet Jewelers Chart |
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