SIG - Earnings call transcript Q1 2020 | Signet Jewelers Limited

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Operator

Good morning. My name is James and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Signet Jewelers Fiscal 2020 First Quarter Earnings Call. [Operator Instructions] Thank you.

I'd now like to turn the call over to the SVP of Investor Relations, Randi Abada. ahead. go Please

Randi Abada

Good earnings James. welcome our to Thank call. morning quarter conference first you, and

On are call Hilson. the today CFO, Drosos; Joan and Signet's CEO, Gina

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

certain measures. discuss non-GAAP During financial the we call, will

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

call to I will over Gina. now the turn

Gina Drosos

Randi. you, thank Good joining for Thank and today's call. morning, everyone, you

I to like our every members service all provide thank are who would customers. transformation to of customer team and Brilliance initiatives important to our work outstanding Path who doing delivering our day begin, To

then to by start first my today, our guidance. with on remarks financial wrap In I'll some progress transformation. up quarter move results I'll discussing our and on of brief comments

our reflect the call. two priorities year on results announced Path against quarter progress Brilliance first last Our we to

our with difficult improve environment. to navigating UK a landscape a soft continue We and retail while competitive trends through very operations, traffic U.S. macro

fashion positively see cost e-commerce year, some to impacting our commitment is to to sales, beginning early operating product is the and in grow it continue profit. performance While momentum on our discipline are we

on progress strong management quarter. solid free cash made generated flow in the we've and Additionally, inventory

first XX.X% our basis. X.X%, our pressure store banners, We was James Allen North implementation our total the excluding up James at continuing lower growth the tax. range, sales up performance. same-store are in X.X% guidance e-commerce same experienced sales consolidated end quarter of down of a of Allen delivered and sales highlights with some Here company from America on

we to and high competition periods. transactions and levels see continue softness brick promotional key In mortar, in of in

new in bigger, inspirational a continue offer merchandise for ongoing to refreshment value-oriented increasing to continue products. product In North quarter, percentage America. highly iconic especially our strategy relevant periods from we benefits and our of competitive to flagship a and new build on-trend on execute shoppers, assortment brands, during first holiday the year-over-year from with We see deliver assortment of sales the

Wang, and + our offset were Neil declines banners, bridal, on-trend flagship up brands across in In Disney, fashion. Vera Lane continuing collection non-branded softness Love in-house our Be and gold digits, some designed North Fashion collections. contributing bridal Loved sales with were legacy Leo in up all positively our in growth and America by high-single to

and profits to cash flow. Turning

in the Our increase was to first lower a of America We in key merchandise quarter and environment promotional quarter in timing reflecting some competitive scale despite from advertising. stabilized to year, and margin expenses effort SG&A the non-GAAP implementing efficiencies, operating cost performance broad a similar an benefit North inventory. strategic last periods highly profit

in was in improvements last cash the largely in capital, In generating $XX.X free quarter, call, flow first disciplined together driven spending. prior free are with fiscal focused quarter, higher we cash versus the on first by million discussed I capital on flow the million year As XXXX. working $X.X

fiscal be our Joan the of inventory under of the are lower expect planning and CFO, Zehrer. XXXX. And new new at continue end We Chief our to Toni Hilson to implementing Merchant, leadership we enhanced year-over-year inventory

our Brilliance Now, Path to I plans. will discuss transformation

initiatives about. and assortment, care fiscal with funded see on underway culture capabilities, to on driving build of product foundational omni-channel in strategic the Path store our investments by one in of efficiency. customer-first Brilliance initiatives don't These year costs under our pillars or customers and developed systems, experience capabilities and growth XXXX are of We agility out

First. iconic we our and continue Customer brands. build product, flagship In with inspirational to Beginning

partnership collaboration expand to with Our to the Cave continues collection. Aladdin of the between Disney magic bringing and of Zales film inaugural Wonders real-life jewelry a the Disney

the Our believe trends launch Disney Aladdin and entire exclusive style Zales portfolio. it product designs interest and embodies and has well, the expects. feature beautiful elevated Jasmine-inspired performing we The the design details is customer that customer across Enchanted

continue bridal, for designs our we and flagship Lane. Vera the new to with In Neil assortment brands, refresh Wang

customer through now virtual bridal Jared as in as core well choice designs assortment all the available innovative new enhancing Additional stores.

results We assortment. refresh our are the from of fashion positive seeing

and Our in a limited collection core number driver on-trend new growth was + fashion performing Be Be continues is in-house + that Toni's our a to Loved gold holiday. design stores first launched quarter be is Loved the well. Love collection fourth assortment in Love in of

across broadly personalization the during first first and campaign Kay quarter, and our the color added We loved ran + Loved Be Mother's options expanded collection Day. banner more advertising the at

Loved grow selling Love We the marketing after out into + indications several meaningful began. campaign with proprietary early are seeing has to potential brand a designs Be that fashion

+ to new us currently of build as XXXX. a On a showing Vera helping results Wang. giving holiday on select faster volumetric development a which cycle scale, are full product early product differentiated of Gold, the at new the by competitive, stores ideas. in implemented in are the options for product shorten test we fiscal of encouraging we collections read lines, Be proprietary potential testing assortment is Several men's and sales our Loved, across Disney product more lines, We've smaller introducing Love including and

results the in by first encouraged the our positive are quarter. new we products of While

fully the newness, the to I their some end mentioned purchase levels to XXXX evolving nearing are last headwinds legacy fiscal life our sales our journey responding cycle. our call, have is cycle. a during we As given higher products of jewelry that do of assortment but from Customers in are multi-year long

model and share bridal effectiveness. efficiency anniversaries. year such model grow greater Moving on of to and The gifting our to and as advertising occasions, drive of always-on changes the timing a to rebalanced has marketing. our throughout been to We've made birthdays spend to marketing strategic more support

expect invested to spend. digital return plans. a that insights new work improve with more savvy build investment a efficient more last of buying of as will and data team in agency We moving effective higher as efficient is mix targeting as utilize our advertising, We to providing customer to by on which well they data year, platform our media

include of at Love Zales, integrated Jared. and differentiating new and in innovative, Loved an + Additionally, creative campaign Disney the each content our new at core at while for the Enchanted making Be Aladdin are and first fashion messaging, campaign progress equities. modernize Recent campaigns our agencies helping bridal banners Kay brand

launch holiday. integrated bridal data new summer We and campaigns creative campaigns for plans and content Kay driven Zales we have for will with new targeted for strong

which of promoter system, launched second of Voice net the the Customer and Our quarter insights. continues actionable XXXX was fiscal in provide data to

enabler America their During member Store our program. of reached customer time inception elevating XXXX, since promoter each team feedback score net seeing in store, program. receive highest we levels with North the quarter its real of performance key banner first of high are centric engagement the Most the is fiscal the a managers which experience. importantly, about of

ahead and to QX build investment In and platform a in to transitioned best-in-class Zales and to in continuing omni-channel. The launch currently use to significantly Kay capabilities. Turning increasing and expected XXXX, track dynamic mobile in substantially contemporary Piercing Pagoda Jared more customization fiscal our of is we platform technology Hybris, on already are and holiday. on

and The curated Hybris with improved enables images faster search. experience quality platform enhanced speeds, an higher customer load

Our These expected mobile speeds, conversion. the this and go with mobile and include curated Jared initiatives are Hybris XXXX priority to following experience, live fiscal browse for pages. throughout our investments and search at post is, functionality second product personalized in year faster Zales which Kay load

build programs to the We introduction own and are your mobile the tool more friendly. enhancements our Wang including make recent Vera capability, current of also design zales.com customization best-in-class at Love to continuing

these we we quarter, customization and believe to this are your higher the nearly be first of saw we orders the to design contributors tools all our enhancements experience changes by North more online year compelling to number banners. will drive across growth. our set sites much doubled America traffic We believe the a of own that and e-commerce online our In positive create us bridal will generated making up

Moving of efficiency. culture onto and agility

We excellence, first optimization, continue impact operational cost agility culture to focus on and a of positively creating which quarter results. saw continuous our we

$XX cost to primarily savings fiscal are to $XX million to versus indirect $XX With and raising costs. the savings million We lower $XX optimization million procurement, corporate workforce previously. driven million expected by XXXX net our

purchases the in and costs began impact XXXX. our which quarter we our to capital also Our direct process fiscal agreements are And our procurement with last benefit and vendors of fourth negotiations holiday optimize will year. working finalizing lower

service to We are deploying peak also better our team our during initiatives members more testing periods. effectively customers field labor optimization by

three-year to Our cost net million achieved savings in savings of goal million remains Brilliance XXXX. million to fiscal in $XXX $XXX net Path the $XX inclusive

XXXX We transformation omni-channel XXX XXXX levels. to in an to continue be to close year-end advantage. than the and end XXXX expect category stores, in smaller count of of portfolio approximately with to fiscal lower an at the competitive overall representing category our stores plan be We fiscal optimized plan expect store a fiscal

lower we grade will plan, have developing By and concepts simplified malls by the most our end to materially of reduced new exiting regional growth. transformation of our exposure believe drive portfolio our to banners, while three-year our we

over XXXX Before John. briefly I discuss our turn guidance. financial the call I will fiscal to

our sales first sales quarter traffic revising reflecting expectations the down lower are we in saw trends X.X% of to range to end We sales and results same-store May. expectations, guidance down at X.X%, our low

$XXX non-GAAP million sales revised savings. guidance $XXX operating revising cost expectations which profit are our and We same-store higher embeds to million, our to

adjusted our fiscal cash As made to remarks, expect quarter the in in inventory I and earlier strong in on fiscal generate XXXX. versus levels XXXX higher lowering mentioned my flow free progress first we

to potential tariffs, this which uncertainty enacted Let meaningful me impact on have our four briefly There that additional subject point. is of tariffs. and XXXX us. our currently a at XXXX still into there guidance we comment guidance. tariffs on of change an were it, in could But around factored of financial our three impact believe The tranche tranches is are issue for don't warrants business no this the because

merchandise exposure XX% our goods to of Chinese is Our spends. approximately

We are our impact of to business our flexibility minimize to contingency on our customers. developing and the base multinational plans vendor the on activate

chain, do we supply our is our tariffs US enacted. customers these flexibility are have pricing also While a potential in there to if impact

hopeful there's this are speedy when resolution a continue for more to update you matter. clarity on and We we'll

made more a delivering cost inventory in margins, we In merchandise America focus and North stabilizing with the generation. savings on cash our managing progress closing, first quarter efficiently

the is you the highly we trajectory higher focused look and Brilliance strategy profitability to We to forward and is drive updating remain through our team initiatives term. the on transformation Path confident the right same-store to on sales that progress over we executing as move our of long our improve year. The

And now, I'll to over call the Joan. turn

Joan Hilson

good And everyone. morning, Gina. Thanks,

on earnings to priorities. pleased conclude Signet's to guidance first today initial first the call join cover financial Signet my discuss months and I'm I'm many leadership my remarks, highlights quarter of our then you And team. sharing to excited my results, look with be our by as meeting the the to come. forward In I'll here CFO. of in I

bricks e-commerce, results. offset Beginning International showed continue the operating same the declined first reflect with mortar America to quarter X.X%. North strength and in larger in the quarter, store our sales Piercing in in by challenging our softness environment banners. results first Pagoda and U.K. In

lower points Revenue basis expanded impact declined margin X.X% and sales, was store structural the closures Gross impacted net in a same-store of the impact number exchange. the of items. and quarter XXX foreign of reflecting by

two First, in as portfolio in XXX a non-prime debt year expense of of points the lapped our bad months of basis receivable the prior outsourcing benefit resulted we quarter.

our to Botswana. diamond own impact flow, there banners, in our The has on diamonds recovering to cash our generates points of with XX an used our year-over-year polishing be of the Second, parties higher an impact that cost objective sale was cannot unfavorable sales basis third from of in unfavorable gross margin these mix but operations diamonds rate. related of

of of our an And was impact margin on diamonds facility sales to We there remainder the expected, fiscal in basis recognition the as year-over-year expect XXXX of XX and service points impact incorporated Botswana in our timing of have related the guidance. unfavorable rate from finally, plans. higher revenue

merchandise margin in we Importantly, this America quarter. North our stabilized banners

smaller offset of SG&A lower by shift investments $X year-over-year, and store was a was down on base, costs million. fully a as basis with outsourcing higher deleverage credit sales, lower expenses on reflecting SG&A due cost a dollar cost percentage higher a timing advertising staff and in sales. to in of incremental savings from

of advertising Non-GAAP operating a in we outsourcing, always-on prior with credit line investment offset with year, profit implement as strategy. largely the benefits was more by higher

We be year advertising spend down to continue slightly to basis. full expect a on

reflected $X.XX a of share lower count, EPS flat operating and Non-GAAP versus profit higher tax more offset a normalized year. prior rate by

tax of XXXX. expect during fiscal rate We will our the higher a EPS remainder continue to impact

in Moving year to while by and versus made progress ago, quarter with up balance flow fourth Free versus assortment. $XX continuing quarter largely We sheet cash up new flow. ending inventories in discipline. to cash inventory a levels, bring managing first was slightly inventory million driven

new for adopted we During the first standard accounting. lease the quarter,

operating operating standards, of standard does billion. and accounting prior of of flows. financial liabilities material remain of lease new impacts in was the the not a impact assets or our Our statements adoption to income billion with statement statement recognition lease $X.X cash have of $X.X The the old accordance

on move quarter I our guidance Now XXXX. for full to year the and second

sales impact into the the XX estimated And basis on XX expect points from X.X% second estimated unfavorable quarter promotion unfavorable last of from timing to recognition quarter moved plans. to We down change the points to down a year. of first of be Jared this inclusive that revenue an X.X%, basis service an impact year second quarter same-store

James sales includes U.K. in sales expectation and of at saw headwinds trends traffic and guidance continuing challenges, Allen. difficult we tax The macros May

tougher comparison in quarter. sales the prior first second a reminder, year the we versus have a quarter As

credit to Operating million profit reflects million higher advertising and outlook in savings. from $XX is outsourcing, $X quarter. This expected unfavorable sales, expected be the to million $XX to million offset second lower by an $X partially cost impact

non-prime We in quarter. transaction late second the lapped the

higher fees year-over-year to XX.X% As tax XX.X%. have the credit expected Non-GAAP and higher EPS of $X.XX a be year-over-year a basis. a in $X.XX rate result, to of range on we SG&A is will reflecting to

full to on guidance. year fiscal XXXX Moving

mentioned guidance note, are X.X%. down the Gina quarter an X.X% year sales that easier we earlier, year comparison to As earlier our prior versus revising same-store quarters. full down to the fourth has Please

million, our $XXX are same-store and reflecting We operating outlook to million guidance - revised savings. profit $XXX sales revising higher to our sales cost store

Our of non-prime to operating fiscal $X.XX. overall a XXXX. is higher the of an increase share in impact credit And as in no second EPS the our year-over-year profit expected expectations to be year-over-year communicated, incorporates reflects of of guidance and previously flat MDR outsourcing, inclusive $X.XX half a Non-GAAP tax rate repurchases.

comments versus do cash like first Now, the inventory in We efficient inventory to of do I our outlook we make quarter, inventory, but on XXXX. more work as progress some fiscal our end leverage. have the management lower through year for more would by and be year. to flow to made to expect move on inventory free down levels the We prior

management year, increase transaction in will prior the free disciplined versus flow and capital prior working cash In exclusive our position in credit year on of result adjusted fiscal inventory proceeds. XXXX, believe improving we focusing an

ended an adjusted Now with to with leverage. fiscal of debt-to-EBITDAR We X.X ratio times. respect XXXX

we At five approximately fiscal lease methodology. leverage methodology, plan the end is calculated transformation a ratio in ratio under to expect our four debt times. be of includes times our This under leverage as obligations our which rent historical XXXX,

see please our XXXX ratio full methodology, details calculation our of leverage XX-Q. For Form

range fiscal for outlook fiscal on XXXX. XXXX leverage is our Our based guidance

to cash Our balance amount projections on the for flow EBITDAR we and cash sheet. of free and maintain our want

for eight there drive focus To of to a after creation up my real will share are weeks, number areas. my comments, that believe in My value to I early important I'd first wrap like opportunities primarily to and working and savings profitability. fuel higher Unlocking provide growth management on more be cost opportunities financial efficient reinvestment inventory and analytics. enabling through forecasting in and capital robust driving implementing

the turn begin to call session. And the now, to the operator I'll over Q&A

Operator

first the from [Operator of ahead Needham please. Co. from Rick comes Instructions] Your question line Go Patel &

open. is line Your

Rick Patel

performance. digital your on Question

as think James the of product merchandise for comps seeing selling just the Can banners. you Allen, e-commerce Allen, in to understand expectations your you So for disparity year? sales? your about there rest you're branded us for And consider would at James comps but we strategy lower the help legacy the higher reinvigorate in

Joan Hilson

in continue overall to our year. business growth for we expect e-commerce So, the

sales things our in focused that program. remarks, we've - in in the year our As new experience, for be talked seen double like functions those really the adding emphasis virtually strategy over and half on and to making and omni-channel so our experience, continue my just in a reinventing I has year the customer last by the a which web features, a for platforms improvements both mobile will by especially to configurators

James California of expect in and We so we collecting on sales this tax. came states more the certainly, for weather year, rest headwinds we on do continuing all on quarter, Allen Allen. add first Allen to In changes tax. continues branded as sell James the James board, merchandise those sales

a have designer carry, well. do jewelry and very number brands We we they that bridal of

very ticket a nice customer to value, there. James comes who discerning have transaction We Allen, value

And we're not of high-quality designers. diamonds, but range so, semi-mounts beautiful that we from also offering sure broad a make only different

Rick Patel

business? Could gross for base. is for picture, improvement of credit gross think the the the touch think opportunity in about and to you gross about the margins? drive underlying where do takes? margin outsourcing, we progression you How the it should on And see also big as jewelry margin various the After biggest we puts completely outlook impact

Joan Hilson

to gross continue in margin. we we've through as through which the will So, truly to be program to for year, picture inventory that drive clearance, that those we our able management programs that positively big is that believe impact implement that, we given manage response is our as guidance the the effectively and

her also prepared cost growing to impact look and long on turn the look procurement margin, initiatives that In term, positive at as our our have in merchandise stabilization margin. important merchandise we to of margin. very on we will the mentioned also remarks is business, us the And as that to improving the a help - at Gina merchandise the services

Gina Drosos

on I that add changed would last only is, The know, thing year. you as strategy we merchandise our

good pillar The that. being is + is Be first Loved differentiated brands, of building a proprietary that of Love example

margin opportunity And so, that build time. an see to also we as over

Operator

Your the Siegel of line please. Go Nomura from Simeon next Instinet. question comes from ahead

open. is line Your

Simeon Siegel

can traffic? give any that you Joan, can about trends for softening XQ Can Joan, are the business full plays you the back or the then, you. did Gina And increase the the you color retail embedding just just you help comp to what current recognizing - within with first on Thank the just lastly, the comments your off, into QX you clarify given guide? significance wanted EPS And to expect then half? say you year in MDR just model,

Gina Drosos

Hi, Simeon.

I So, turn over two I'll your I'll think, out start for, to last then and Joan questions. it

first closure the And higher stores, we Consistent new is of work We we to as one, sales our legacy our trends some the have On softer traffic from percentage do in. in we're we we have a other coming that our merchandise. our that a see through trends. in some are some are with seeing strengthening new who and softening get May opportunity continue into certainly we higher our - embedded seen for collections people many guidance. of retailers, percentage think of

of on biggest of our down, team. advantages, number have still as best-in-class and training field traffic our the competitive creating customer store. with a that to differentiated in truly so trends be going go Also continue initiatives we're experience a one They

Joan Hilson

address credit to the impact. Simeon,

quarter outsourcing the As the in lap QX the portfolio. QX quarter, was of non-prime of I mentioned last completion we

for expense, to related have of QX. with we customers no we costs non-prime offset bad our elimination debt So, which in sales to had additional SG&A

why a given year down, full comments reminder, guidance the have our we quarter. And the flat-to-slightly So, it's of change higher have an updated we into performance did first flat credit for that saw that's half in the from our MDR guidance. quarter. that we our fiscal then, second incorporated as the of second year I an in mention in to the expectation XXXX for And

Simeon Siegel

the And that's of then QX anything in guidance? terms the EPS in embedded

Joan Hilson

the can I at end back look the what half on guidance you is low year, you X.X%, the in for is side, Well, - is that, on the the guidance first the low tell when half down down range our in X.X%.

of be the year, half is the front in could down end, year half back of the the X.X%, high the down and On X.X%. high-end

Operator

Go [Operator ahead Instructions] Your the of is line please, Ike from Boruchow next line your comes Fargo. question from open. Wells

Ike Boruchow

with up softness one is portfolio to guess follow way help if has just is bead help where more where more it with of about or could you the the across weakness understanding is. entire Gina you Is of I the from. the could others than us headwinds Jared May. business, business, there coming of question to Simeon's some the that banners that legacy on is us it curious understand specific Pandora any kind

Gina Drosos

Yes, what we're largely mall in a seeing the decline retail traffic. is

number in initiatives that a we've of have put place. We

James our As new experienced shore as to always-on this largely given unbranded campaign Allen Allen, of James Zales; expect we really bridal, so a saw you softness softness in that media on we've saw in that issues. new part to summer. some sales place a was put the tax quarter and continue the launching Zales from and programs the model standpoint, numbers, first product from and up in advertising have we some

only So, I traffic we like The reminder, as would that we initiatives but quarter into I in in some a promo-shift retailers, we've the from think thing was is a from trends all first quarter good there that add May. last Jared coming, of the got second the saw to year. softening mentioned that,

Ike Boruchow

just And you then Joan. ones quick two for

year-over-year you you then was wondering was quantify said hurt I free if said, to you And could you sales. be us. going believe flow in timing that's for the some QX. think I shift ex kind help cash assume there of that credit up On that I the should SG&A, QX,

in cash numbers XXX flow cash my it be last I free should was think mean to are free does million right above, that just make year? So sure

Joan Hilson

flow for year for cash quarter. Yes by first that's the favorable X accurate then the the SG&A was in the and million free

in We of year expect the that quarter. fully the second to impact not the balance

Operator

Your comes the Lejuez your Citigroup. Go line is of question please, open. next line from from Paul ahead

Tracy Kogan

Paul. does of on that coming in non-merchandise like filling And Kogan penetration and XX% China. first then I Tracy jewelry I goods think just have items second wanted the the boxes and but that mentioned your two about leasing question to It's I find or if the within for penetration, credit from you include penetration packaging. a is And clarification, questions, just credit guys increased of Thanks. was my the whether sales? you out saw

Gina Drosos

packaging, I'll like have take quite in we is supply are one to So the first merchandise the just quarter additional there impact boxes a XX% multinational referred and in but small chain. on like that the merchandise, things we

Joan are at answer vendors second. looking now impact customers with the let pricing to through And and company to work so, opportunities to or we our that and any the reduce

Joan Hilson

And guidance credit don't on around The participation decline in the the XX.X% to sort participation the details call program as in year XX% guided rate Well, our versus a quarter. give rate first plan leasing we a penetration. QX itself slight reminder, of we for the payment just our earnings year. prior was

Tracy Kogan

anecdotally quantify you just can but whether on give gravitating customers whether the color Any maybe are can choice? toward that you are, customers leasing,

Gina Drosos

for nicely positive feel migrating customer that participated what are to with would normally the on Yes, based those leasing a we're us with the offering non-prime that with is option leasing have the that program. we seeing leasing

a our to positive So and we a see offering it an good customer. as important

Operator

of Your is Telsey Dana line next your Group. Telsey from from question open. the Go comes line ahead Advisory please,

Dana Telsey

opportunity to here and negotiation for closures there that – the is and than do was of Joan, the day, the the concept different commentary it At there in and welcome XXX stores each the where XXX. from on in anything store noticed of you? for UK is I you. want more more - U.S. now around be Thank end terms in rent you before

Gina Drosos

the or stores at So XXX we are around year. anticipating this closing

know As we store delivered over the given had you guidance last closures. we year on that

to disciplined and to continue we store approach think I very So a take closures. analytical

areas, more at really are since a as that optimized but store making looking sales we transference sure competitive base a trade Looking smaller at we creating advantage. see

What of three Is have the that the program guided. by the transformation end years. we

We expect than it at the was to the store count beginning. lower be

So to of work growth concepts will able very of I discipline a consistently the successfully continue. time, an At well. on anticipate been we're has is to as our that make all Piercing that our base. sure be and growing example this same banners Pagoda program well covering of banner we customer

have discipline looking on new the And around concepts so we at hand. a other

UK we scale of but larger and rent terms in terms the And space, negotiating similar. continue process leverage our reductions. U.S., In to negotiations work closures we in our versus store have going on and both partnership rent is markets of to absolutely, also with optimizing landlords on

Operator

ISI. from open. is is ahead Evercore Omar Saad from line your the question Go please, Your of line next

Westcott Rochette

a you that category? going Omar. of in your couple as an This your is and sales what for on bridal update Westcott think category a where part bridal on penetration give Can is, you versus the is ago on years now

Gina Drosos

Sure, brand was is single Wang, high that quarter. We were so prepared my remarks Leo, our of digits. saw strong in growth Disney, Lane, down what across all said our Vera from bridal category up Neil those in first I the iconic the board. flagship

that we're on the newness and been is those us. the important brands so bringing, has emphasis dividends showing good for And proprietary

heavily quarter, in and it's especially we Non-branded you James almost Kay Zales bridal. as I really the bit really in to a where skewed bridal and is is know then mean of Allen in a softness XXX% saw bridal business.

have something talked penetration we not sales of terms numbers, percentage that things, In of that's and about.

Westcott Rochette

of a is couple Could you versus years fashion up say or…? directionally bridal ago, penetration the versus whether

Gina Drosos

into to quarter, I at and periods first we think our to especially to build the fashion bridal business, – us are business. to purchasers the we of non-holiday is in strategy attract the incredibly part helpful grow our Well and saw was which female both. so growth gifting and In represents some know self important like working you

Westcott Rochette

up And as all structure and education just the to customers? how Where speed incentivized the employ is being think credit do implement incentive question the one to the and on employees far credit use employee the available effectively. other options the to of and to you credit

Gina Drosos

we now competitive So have prime represents significant offerings experienced After also for over that place. place in fixes advantage financial stopped. issues in have customers. ago a think little that's that leasing operational haven't conversion mix a training the That we to and and some and the year we for put a personnel the subprime I program surrounding with lending, our in-store we the a more you know that gotten of to XX technology we lending something our than

the sales in first to financial our training our for different alternatives customers. of We, four-hour work on our quarter all to how associates present a they had

us build So that for an I as ongoing see competitive opportunity to that advantage.

Operator

further like conference Since joining no thank everyone concludes for This I’d call. are questions. us to today's today. that there

may disconnect. now You

Signet Jewelers Limited (SIG) 6 Jun 192020 Q1 Earnings call transcript