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Research Alert: CFRA Maintains Buy Opinion On Shares Of Signet Jewelers Limited
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Signet Jewelers Limited
Mar 19, 2025 7:30 AM

09:50 AM EDT, 03/19/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Signet reported challenging Q4 FY 25 (Jan.) results, with sales declining 5.8% Y/Y (1.8% adjusted for 53rd week) and comparable sales falling 1.1%, deteriorating from FQ3's -0.7%. FQ4 operating margin of 15.1% (excluding non-cash impairment) exceeded consensus of 14.7%, with gross margin of 42.6% slightly missing expectations. The company recorded significant non-cash impairment charges of $200.7 million related to its digital banners, reflecting ongoing technical challenges and strategic vulnerabilities in the digital platform. Management's new "Grow Brand Love" strategy includes brand-centric reorganization and plans to shift 10% of mall locations to off-mall and e-commerce. Looking ahead, Signet faces headwinds from slow engagement ring recovery, lab-created diamond disruption, and rising precious metal costs, with FY 26 same-store-sales guidance of -2.5% to +1.5% falling below the 2% consensus.

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