Signet Jewelers Ltd Q4 2024 Earnings Call Transcript

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

Question: Lorraine Hutchinson - Bank of America - Analyst : Thanks, good morning. I just wanted to follow up on on the engagement discussion. You did talk about unit sales consistent with expectations for engagement in the fourth quarter, was there some softness in pricing versus your expectations? And then how has that competitive landscape been included in the guidance for this coming year?

Question: Lorraine Hutchinson - Bank of America - Analyst : And then, can you talk give us some of your insights on the competitive landscape on the non-bridal business and what your expectations are for that this year?

Question: Lorraine Hutchinson - Bank of America - Analyst : Thank you.

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Hey, good morning, everyone. A couple of questions for Joan, on embedded well, first of all, on the gross margin line, I think you commented in fee on flat to slightly up in 1Q on that kind of negative comp, it's pretty impressive. Can you kind of just walk us through on the headwinds and the moving pieces on gross in the first quarter and how you're able to kind of sustain that?

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Then Joan, you had mentioned that gross margin improvement to be more towards really the growth just operating margin, are you saying that gross margins could also improve year over year as we move--

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Got it. And then just to stick with the gross margin, and I think your total revenue plan is like down 2 to 7. Can you tell us it just higher level like what does your services expectation? I assume you expect to outgrow that number, but is there a number you could share with us for the year that you're planning?

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Because it sounds like servers will outperform, but we're not you're not going to quantify the exact amount that you're planning that?

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Understood. And sorry, last question, just on the tax rate comment, Joan, you went through you talked about the step up like three or four points. Is that is that incorporated in that 19 to 20 that you have this year? Or should be, are you saying that we should be expecting like '23 to '24 going forward in the out years.

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Got it, so '23, '24 as we go forward based on what you said right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 20, 2024 / 12:30PM, SIG.N - Q4 2024 Signet Jewelers Ltd Earnings Call

Question: Ike Boruchow - Wells Fargo Securities - Analyst : Perfect. Thank you so much.

Question: Mauricio Serna - UBS Investment Bank - Analyst : Hi, good morning. Thanks for taking my questions. I guess just wanted to get a sense of what are you thinking about the total jewelry industry growth considering also like fashion and in non-engagement part of bridal, how are you thinking about the industry growth for the year? And then on and just also maybe you could provide a little bit more details on, you know, on the digital part of the business. Do you want to elaborate a little bit more like what are the issues happening in there. What do you know if I recall, I think you were already expecting some benefits in Q4 of the integration from both banners. And then lastly, just based on the commentary that you provided for Valentine's and how things have trended since then, like is there a way to get a sense of like what are the quarter to date comps? Thank you.

Question: Mauricio Serna - UBS Investment Bank - Analyst : Very helpful. And very lastly, a follow-up on the cost savings initiative. Any way you can break it down like into the through the big buckets that you mentioned on how you know the source then on the AI. and others like the non customer facing expenses? Thank you.

Question: Mauricio Serna - UBS Investment Bank - Analyst : Very helpful. Thank you very much.

Question: Jim Sanderson - Northcoast Research - Analyst : Hey, good morning. I wanted to talk a little bit more about the 300 renovations you're planning this year. That's I think about 10% of your store fleet. Can you outline the benefits you would expect this year or if this is a later year benefit? And any feedback on what you think the improvement in store sales volumes would be from those remodels?

Question: Jim Sanderson - Northcoast Research - Analyst : Now, thank you for that is what are the benefits primarily to be to take place next year. So this isn't really a fiscal 2025 story or is part of that baked into your expectations?

Question: Jim Sanderson - Northcoast Research - Analyst : Okay, and you mentioned a comment about some fixed cost slightly higher on a year-over-year basis. I'm just wondering if what is your outlook on labor inflation on and not only just inflation, but perhaps investment in labor as you going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 20, 2024 / 12:30PM, SIG.N - Q4 2024 Signet Jewelers Ltd Earnings Call

Question: Jim Sanderson - Northcoast Research - Analyst : Okay. I have one last question, just talking more broadly about the shift to growth in the engagement category. Is there anything in your data set that helps us understand the opportunity for average transaction value to increase or if the engagement consumer is perhaps more value oriented or own frugal and hoping to invest in other parts of the wedding ceremony or engagement process just any feedback there based on what you're looking at?

Question: Jim Sanderson - Northcoast Research - Analyst : Now, thank you for that feedback. You mentioned lab-grown diamonds. Is your assortment on, do you expect to expand that assortment in bridal for lab-grown for the back half of the year?

Question: Jim Sanderson - Northcoast Research - Analyst : Great, thank you very much and I 'll pass it on.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Hi, good morning, everyone. As you think about the services business, what impact on the merch margin is that having how you planning the services business this year compared to last year and anything of how you're planning in the first quarter and in light of the first quarter guidance? And then when you think about the store openings that you're doing, I think 20 to 30 malls out of malls, where are they going to be? And then you had closed some stores overseas. Is there a further store closing program that you anticipate there? Thank you.

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