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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Executive
Virginia "Gina" C. Drosos

digital presence and targeting using advanced data and analytics.

Additionally, given the temporary closure of our stores, we are implementing reduced work hours, furloughs, and reduced compensation across store and support center teams. As part of this, our top leaders and I have taken a voluntary 50% base salary reduction and other leaders have taken significant reductions too. Half of this will be replaced with equity grants. The Board of Directors has reduced its retainer fees by 50% and agreed to be compensated entirely in the company's common shares. Many of us have also contributed a portion of our bonuses to an emergency relief fund established to help our colleagues in need. Our Signet team is in this together and I have confidence we will emerge as an even stronger united team and company.

Since we do not have visibility into the duration of this crisis and the related economic impact, in addition to expense reductions, we are temporarily suspending our cash dividend and have elected to pay the May quarterly dividend on the preference shares in kind, rather than in cash. We also aggressively reduced planned capital expenditures. Within this lower spend, we are prioritizing digital investments and our Flexible Fulfillment initiative.

Recall that over the past two years, we successfully transitioned our banners to the Hybris eCommerce platform, enabling much faster speed, curated search and product visualization using high-quality imaging. We also made important investments in our mobile experience and custom configurators to allow customers to personalize and even design their own jewelry. All of this improves the experience of our online purchaser as well as the browser who starts their journey online and will eventually purchase in one of our brick and mortar stores.

To achieve immediate eCommerce impact, we are focused on enhancing search and browse, easier checkout and even more advanced custom design capabilities to create an optimized and frictionless shopping experience for customers. We are also continuing to implement our Flexible Fulfillment initiative, which unlocks store-level inventory, allows us to optimize across our network through a single view, improves our product assortment by store and enhances the customer experience with buy online, pickup in store available this holiday.

Very importantly, we believe we are effectively managing through the present disruption. At the same time, we are working to accelerate our transformation through acutely focused investments to build Signet's future. We've made progress over the past two years on our Path to Brilliance transformation and are galvanized around three key strategies. Number one, Customer First, number two, OmniChannel, and number three, building a Culture of Agility and Efficiency.

Our results in the fourth quarter demonstrate that these strategies are working. So while there is considerable disruption today, we believe we have built a strong foundation and the resiliency and capabilities to emerge as a stronger company with enhanced competitive advantage.

Now turning to our fourth quarter and fiscal 2020 results, as well as color on our performance entering fiscal 2021. Our fourth quarter results were