Signet Jewelers Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Paul Lejuez - Citigroup Inc. - Analyst : Curious as you're seeing engagements recover, can you talk about the composition of what customers are buying between natural versus lab-created? And is the mix any different than what you expected? And then second, can you just talk about the pricing in both natural and lab-created on both the engagement piece of the business, as well as the fashion piece? Thank you.

Question: Paul Lejuez - Citigroup Inc. - Analyst :

Question: Paul Lejuez - Citigroup Inc. - Analyst : Thank you. Good luck.

Question: Ike Boruchow - Wells Fargo Securities LLC - Analyst : Two questions from me. Maybe first for Gina. Just you give some color around May and you give some interesting details. Gina, could you just tell us specifically how was Mother's Day, how was the Mother's Day selling season overall for you guys? And just maybe quarter-to-date, where are you guys running relevant to that guide? And then, Joan, could you just to really simplify it for us, just on the share count and the preferred dividends, like what diluted share count are we using for the second quarter and preferreds, as well as I don't know if you can give Q3 and Q4, but exiting the year, the diluted share count would also be helpful. Just trying to make sure that we all get the models straight. Thank you.

Question: Ike Boruchow - Wells Fargo Securities LLC - Analyst : Can you help on the second quarter as well?

Question: Ike Boruchow - Wells Fargo Securities LLC - Analyst : Great. Very helpful. Thank you.

Question: Mauricio Serna - UBS Securities LLC - Analyst : First, I would like to just follow-up on that commentary about Mother's Day. Could you talk about what sales have looked like post-Mother's Day? Just, it seems like, yes, it was a good event, but just trying to understand whether the momentum has carried. I know you mentioned that, but just wanted to make sure about it. And then on the Q2 sales guidance, what kind of engagement volumes are considered in the Q2 sales guidance? Thank you.

Question: Mauricio Serna - UBS Securities LLC - Analyst : Sorry, I just want to make sure this was up mid-single digits to flat for, in total bridal units?

Question: Mauricio Serna - UBS Securities LLC - Analyst : Okay. Got it. And then --

Question: Mauricio Serna - UBS Securities LLC - Analyst : Digital. And then just quick follow-up on the merchandise margin. Could you talk about what kind of trends you saw, like on brick and mortar versus online? And one thing just to understand, on the last commentary on the risk to the guide, are you expecting higher promotions year-over-year? And why would that be? It seems like independent jewelers, like independent inventory, should be getting in better shape, shouldn't they? Thank you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 13, 2024 / 12:30PM, SIG.N - Q1 2025 Signet Jewelers Ltd Earnings Call

Question: Mauricio Serna - UBS Securities LLC - Analyst : Understood. Thanks so much and best of luck.

Question: Jim Sanderson - Northcoast Research Partners, LLC - Analyst : I wanted to go back to the commentary on average transaction value being down slightly in the first quarter. What is included in your guidance for the year? How should that ATV progress going forward given the momentum you're experiencing today?

Question: Jim Sanderson - Northcoast Research Partners, LLC - Analyst : Okay, okay. So maybe possibly a slight decline, but very, very modest. Right way to look at it.

Question: Jim Sanderson - Northcoast Research Partners, LLC - Analyst : And does that include an assumption that you'll maintain those 80% and 40%, attach rates on the services warranties or the engagement?

Question: Jim Sanderson - Northcoast Research Partners, LLC - Analyst : Okay, thank you for that. Just another follow-up question on lab-created diamonds. Did you provide an estimate of what your sales mix for lab-grown diamonds in the engagement category is in bridal?

Question: Jim Sanderson - Northcoast Research Partners, LLC - Analyst : Okay, last question for me. I think the De Beers announced that they will be partnering with you in the United States in the back half of the year with a major training initiative, as I understood it. So I'm wondering, what do you expect from De Beers as far as their training incrementally to your sales team that you haven't been able to offer the US consumer to date? Thank you.

Question: Jim Sanderson - Northcoast Research Partners, LLC - Analyst : All right. Thank you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Given the more cautious or discerning consumer and the promotional levels that are out there, is the promotional levels different by banner in terms of what you're seeing? And then on the newness that you're offering, how is that increased by banner? Is it different? And is the opening price points changing? How are you adjusting them in this environment? And that impact on margins? Thank you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Thank you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 13, 2024 / 12:30PM, SIG.N - Q1 2025 Signet Jewelers Ltd Earnings Call

Question: Dana Telsey - Telsey Advisory Group - Analyst : Thank you.