Signet Jewelers Ltd (NYSE:SIG) Q4 2020 Earnings Conference Call - Final Transcript

Mar 26, 2020 • 08:30 am ET

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Signet Jewelers Ltd (NYSE:SIG) Q4 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Ladies and gentlemen, at this time, we'll begin the Q&A session. [Operator Instructions] And our first question today comes from Lorraine Hutchinson from Bank of America. Please go ahead with your question.

Analyst
Lorraine Hutchinson

Thank you. Good morning, thanks for the update on the credit business. So non-prime is 7% of your sales, can you talk about the breakout of the rest of the sales between prime and then also the other financing, the rent-to-own financing that you've offered?

Executive
Virginia "Gina" C. Drosos

Well, thanks for the question, Lorraine. We haven't disclosed the breakout of those. But what I can tell you is that the leasing aspect of our business is something that's been growing over the past year and our customer has responded to that. One of the things that we are looking forward to doing is moving to offering that online at some point in the coming year.

Analyst
Lorraine Hutchinson

Okay. And then any help on how the terms will change now that CarVal's stepping out and Castlelake is taking over the rest of the portfolio? How we should be thinking about the discount that they're paying for the receivables on a go-forward basis?

Executive
Joan Hilson

Lorraine, as I mentioned that we are in process of negotiating that MOU with -- we have a memorandum of understanding with Castlelake at this time, but we haven't disclosed the MDR rate. The arrangement with CarVal for the next 30 days is substantially under the same terms of the existing agreement.

Analyst
Lorraine Hutchinson

Okay. And then if we look at the prime offering, have you heard at all from your partners there on any changes to their appetite to finance jewelry purchases?

Executive
Joan Hilson

Lorraine, not at this time. Our relationship and partnership with our other providers are very strong and we look forward to working with them throughout this crisis and into the -- once we emerge.

Analyst
Lorraine Hutchinson

Thank you.

Operator
Operator

[Operator Instructions] Our next question comes from Paul Lejuez from Citigroup. Please go ahead with your question.

Analyst
Tracy Kogan

Thanks. It's Tracy Kogan filling in for Paul. I have two questions. The first is on the mall versus non-mall stores. I was wondering what the performance was this past quarter between those different groups of stores. And then if you could just remind us at year-end where you stood with -- after your closings, where you stood with mall versus non-mall. And then just on the Castlelake agreement, do you expect the customer -- will this all be seamless to the customer? I know you had some issues before rolling out the new -- when you had new deals. I just wanted to just understand what's -- if the customer would feel any different.

Executive
Joan Hilson

Yeah, thanks for the questions, Tracy. The -- with respect to the service provider, as I mentioned, Genesis is continuing and we have a very strong relationship with them. We expected this transition to be with little to no disruption and our customers should not experience any real noticeable change.

Executive
Virginia "Gina" C. Drosos

And then, hi, Tracy, it's Gina. Just to address your first question on mall