Net Share Settlement Amendment Further Reduces Diluted Share Count Increases FY2025 Non-GAAP EPS Guidance by 9% to 10%

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Signet Jewelers and Leonard Green & Partners have announced an amendment to the terms of the Series A Convertible Preference Shares and the repurchase of half of the Preferred Shares. The amendment allows Signet to deliver cash for the stated value of the Preferred Shares, with any remaining value to be delivered in cash, shares, or a combination of both at Signet’s discretion. This net share settlement amendment will immediately reduce Signet’s diluted share count by approximately 2.9 million shares.

As part of the repurchase transaction, Signet will repurchase half of the Preferred Shares for approximately $414 million in cash. This will reduce Signet’s diluted share count by approximately 4.1 million shares, or 7.6% of Signet’s diluted share count. The transaction is expected to be settled within 10 business days.

Following this transaction, there will be $328 million remaining in stated value of the Preferred Shares, which carry a dividend of 5.0%. The repurchase will be funded from Signet’s cash on hand at the end of Fiscal 2024.

As a result of this repurchase and amendment, Signet has increased its Fiscal 2025 non-GAAP diluted EPS outlook to a range of $9.90 to $11.52 per diluted share, a 9% to 10% increase from the previous range. The revised range accounts for the diluted share impact of the repurchase and amendment.

Signet operates approximately 2,700 stores under various brand names, including Kay Jewelers and Zales. The company has been focused on its Path to Brilliance strategy, which has led to revenue growth, increased gross margins, and improved financial profiles.

Signet Jewelers, in partnership with Leonard Green & Partners, operates in the jewelry retail industry. The company operates around 2,700 stores under various brand names, including popular jewelry retailers such as Kay Jewelers and Zales.

The jewelry industry is a dynamic and competitive market. Market forecasts indicate that the industry is expected to grow steadily in the coming years. Factors driving this growth include increasing disposable incomes, changing consumer preferences, and global economic development.

Issues related to the jewelry industry include changing consumer trends and preferences. Jewelry retailers need to stay updated with the latest fashion and design trends to attract and retain customers. Additionally, the industry faces challenges such as fluctuations in the price of precious metals and gemstones, which can impact profitability.

The repurchase and amendment announced by Signet Jewelers will have a positive impact on the company’s financial outlook. By reducing the diluted share count, the company aims to increase its earnings per share (EPS). The increased EPS outlook of $9.90 to $11.52 per diluted share reflects the company’s confidence in its ability to generate strong financial performance.

For more information about Signet Jewelers and its operations, you can visit their official website at https://www.signetjewelers.com/.