Signet Jewelers Limited, the world’s largest retailer of diamond jewelry, announced its results for the 14 weeks and 53 weeks (Fiscal 2024) ended February 3, 2024.
The Company’s Fiscal 2025 Outlook is based on the following assumptions: the Company expects an approximately 1.5% to 2.0% negative impact to sales from integration issues with its Digital banners. The Company expects to resolve the issues in the second half of the year but is not reflected as such in guidance. Importantly, the issues are not tied to nor impacting the eCommerce channels of our core banners, which are performing well.
Approximately $225 million in non-comparable sales headwinds reflecting over $100 million from the 53rd week in Fiscal 2024, approximately $75 million in the UK from the sale of previously announced prestige watch locations in the UK and up to 30 Ernest Jones store closures, and approximately $50 million from total store closures in North America in Fiscal 2024 and Fiscal 2025. The Company anticipates net square footage decline of 1% to flat for the year.
The Company continues to expect a three-year recovery in US engagement rates, with Fiscal 2025 engagement incidents increasing 5% to 10% to Fiscal 2024. Approximately $150 million to $180 million in new cost savings initiatives leveraging technology such as AI, sourcing efficiencies, and spend discipline.
Planned capital expenditures of approximately $160 million to $180 million, reflecting investments in 20 to 30 new stores, nearly 300 renovations with focus on Kay, Jared and Diamonds Direct stores, Connected Commerce capabilities, and digital and technology advancement. Annual tax rate of 19% to 20% excludes potential discrete items. Diluted EPS for Fiscal 2025 excludes any further share repurchases subsequent to today. Diluted EPS for Fiscal 2025 includes preferred share dilution on common shareholders for full year Fiscal 2025.