Signet Jewelers Ltd (NYSE:SIG) Q1 2019 Earnings Conference Call - Final Transcript

Jun 06, 2018 • 08:30 am ET

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Signet Jewelers Ltd (NYSE:SIG) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Signet Jewelers Limited First Quarter 2019 Results Conference Call. [Operator Instructions]

I would now like to turn the meeting over to your host for today's call, Randi Abada, SVP of Investor Relations. Please go ahead, Randi.

Executive
Randi Abada

Good morning, and welcome to our first quarter earnings conference call. On the call today are Signet CEO, Gina Drosos; and CFO, Michele Santana.

During today's presentation, we will, in places, make certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. We urge you to read the risk factors, cautionary language and other disclosures in our Annual Report on Form 10-K and quarterly reports on Form 10-Q. Except as required by law, we undertake no obligation to revise or publicly update forward-looking statements in light of new information or future events.

During the call, we will discuss certain non-GAAP financial measures. For a discussion of the non-GAAP financial measures as well as reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, investors should review the press release we posted on our website.

I'll now turn the call over to Gina.

Executive
Gina Drosos

Good morning, everyone, and thank you for joining today's call. Today, Michele and I will discuss Signet's first quarter, which has a number of complexities impacting our results as well as update you on our early actions under our Path to Brilliance plan. We will then open the line for your questions.

As discussed last quarter, our Path to Brilliance plan is designed to increase our cost competitiveness by driving out costs customers do not see or care about while enabling growth investments in our e-commerce and omni-channel capabilities, product and digital innovation, customer value, and optimizing our real estate footprint. This plan, which is focused on three pillars, Customer First, OmniChannel and building a Culture of Agility and Efficiency is intended to reposition Signet to be a share-gaining OmniChannel jewelry category leader.

While we are only two months into our three-month -- our three-year transformation plan, we've initiated a number of steps to build a strong foundation. Later on, I'll spend time discussing some of these initiatives.

Q1 showed signs of stabilization with same-store sales and earnings performance ahead of our guidance, and we saw sequential improvement across the majority of our core banners. Additionally, with an intense focus on creating a seamless OmniChannel experience, we, once again, achieved double-digit growth in eCommerce.

We continue to see green shoots at Zales and Piercing Pagoda, which both achieved high single-digit same-store sales growth in the quarter and improved sequentially over a strong fourth quarter.

Our results at Kay also improved sequentially, reflecting some benefit from planned promotions as well as meaningful improvement in credit execution in our stores. We injected significant newness and focused on key brand propositions in the quarter, leading to North America same-store sales up 0.6%, which included the positive impact