Good market position in a highly fragmented and competitive industry; Large geographic footprint in North America and the U.K.; Good operating track record supported by its differentiated merchandise strategy; Synergies from the Zales acquisition to boost margins; Cyclical industry with exposure to changes in consumer discretionary spending that drive profit volatility; and High exposure to commodity costs, especially diamond prices. Significant seasonality, with approximately 40% of sales generated in the fourth quarter; and Credit metrics remain strong for the financial risk profile but moderated by cash flow volatility. The stable outlook reflects our expectations that Signet Jewelers Ltd.'s profitability will remain good for the ratings because product initiatives and cost synergies should offset impact from foreign currency headwinds. We see