Signet Jewelers Q4 Profit Rises - Quick Facts

(RTTNews) - Signet Jewelers Limited (SIG, SIG.L) reported fourth-quarter net income of $228.0 million or $2.84 per share, compared to $175.2 million or $2.18 per share, prior year. Adjusted earnings per share was $3.06, for the quarter.

The company noted that its results reflect the addition of Zale Corporation, acquired on May 29, 2014, as well as purchase accounting and transaction costs related to the deal. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $3.04 for the quarter. Analysts' estimates typically exclude special items. Sales increased to $2.28 billion from $1.56 billion last year. Analysts expected revenue of $2.32 billion for the quarter. The company said the increase was primarily driven by the addition of the Zale division which added $636.7 million of sales to fourth quarter Fiscal 2015. Same store sales increased 4.2% for the quarter. The company's newest division, Zale, delivered a 3.7% increase in fourth quarter same store sales.

A 22% increase in the quarterly cash dividend from $0.18 to $0.22 per Signet Common Share has been declared for the first quarter, payable on May 27, 2015 to shareholders of record on May 1, 2015.

Michele Santana, CFO of Signet, said: "We will continue to target investment grade ratings and up to a 3.5-times adjusted leverage ratio. In addition, as part of our capital allocation strategy for Fiscal Year 2016, we plan to repurchase $100 million to $150 million of our stock and increase our dividend."

The company said it is well-positioned to meet goal of $150 million to $175 million in cumulative 3-year synergies by the end of January 2018.

For the first quarter, the company expects to increase same store sales in the range of 3% to 4%. EPS is expected to be in the range of 1.42 to $1.49. Adjusted EPS is expected to be in the range of $1.57 to $1.62. Analysts expect the company to report first-quarter earnings per share of $1.61.