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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Presentation
Executive
Virginia "Gina" C. Drosos

better than anticipated and we ended the year strong with our best overall holiday business performance in four years. Our team delivered fourth quarter same-store sales growth of 2.3% and generated double-digit growth in eCommerce. We delivered 0.6% same-store sales growth for the fiscal year and exceeded our cost savings target for the year, achieving an expense reduction of approximately $100 million. All of this drove strong non-GAAP operating income, up 16% and free cash flow of $419 million for the fiscal year.

The momentum we experienced during the holiday season continued as we entered fiscal 2021. We had a strong Valentine's Day selling season with customers reacting favorably to our product newness, customer experience innovations and our always-on approach to marketing. March performance to date reflects the increased impact of the COVID-19 pandemic, which led us to close all of our retail store locations earlier this week.

In a time like this, we all know that celebrating those you love is important. To effectively serve our customers, our team is being agile and innovative. Given our size and scale, there are things we are doing right now to drive relevance and deliver our company mission to help customers celebrate life and express love. Here are three themes we are actively focused on, to put innovation into action and meet our customers where they are.

First, providing our expertise. Our customers often want advice before making their final decision. Across all of our banners, our level of personal service, especially today, is one of our strongest differentiators. So we're leveraging the expertise of our digitally native banner JamesAllen.com to rapidly advance our online selling assistance tools across all of our banners. We've enhanced our live chat capability and trained hundreds of our customer care and in-store jewelry experts, who are now working from home to provide their expertise, virtually.

Secondly, bringing the best of our stores to our customers with OmniChannel. We are hosting virtual special events including for Mother's Day, hosting video chats and empowering our team members to be social ambassadors. We have also rapidly added to our online inventory from store stock to be ready to meet all customer needs.

And third, giving customers an excellent value. We know that, given current and future economic uncertainty, our customers are even more value conscious. We believe our excellent vendor relationships, sourcing capability and scale allow us to make sure we are providing high-quality jewelry at a great value.

All in all, the team is working to support our customers' desire to celebrate love especially now online. Our team members across the country are delivering our mission in new and innovative ways.

In closing, our team delivered strong results in the fourth quarter and fiscal year 2020. As we navigate the current uncertainty, we are leveraging the strong foundation we have built over the past two years of our Path to Brilliance transformation. Importantly, we have acted immediately to build additional financial flexibility during this disruption. We also believe