Signet Jewelers Limited (SIG) has reported a 5.85 percent rise in profit for the quarter ended Jan. 28, 2017. The company has earned $287.80 million, or $3.92 a share in the quarter, compared with $271.90 million, or $3.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $305.80 million, or $4.03 a share compared with $288.50 million or $3.63 a share, a year ago.

Revenue during the quarter dropped 5.13 percent to $2,269.90 million from $2,392.60 million in the previous year period. Gross margin for the quarter contracted 81 basis points over the previous year period to 41.65 percent. Total expenses were 82.41 percent of quarterly revenues, down from 83.57 percent for the same period last year. This has led to an improvement of 116 basis points in operating margin to 17.59 percent.

Operating income for the quarter was $399.20 million, compared with $393.10 million in the previous year period.

However, the adjusted operating income for the quarter stood at $412.40 million compared to $418.40 million in the prior year period. At the same time, adjusted operating margin improved 68 basis points in the quarter to 18.17 percent from 17.49 percent in the last year period.

Mark Light, chief executive officer of Signet Jewelers, said, "Signet had a challenging fourth quarter and fiscal year, but we delivered top-and-bottom lines for the fourth quarter within our revised expectations. This was driven principally by performance from select categories and collections including diamond fashion jewelry, bracelets, and earrings. "In addition, the integration of Zale continues to go well. We delivered Signet's anticipated annual synergies which protected us against a general slowdown in retail. Our solid financial performance and cash generation capabilities have allowed us to invest back into our business to pursue long term profitable growth and return excess cash to shareholders. "I want to thank all Signet team members for their contributions to our results and for all their hard work throughout the fiscal year and into the new year."

For financial year 2018, Signet Jewelers Limited projects diluted earnings per share to be in the range of $7 to $7.40. The amount of the shift is expected to be approximately 300 to 350 basis points to SSS and $0.12 to $0.15 EPS from the first quarter to the second quarter. The additional week, January 28, 2018 - February 3, 2018, will be accretive to fourth quarter total sales by approximately $75 million.

The company has spent $278.40 million cash to meet investing activities during the year as against cash outgo of $228.70 million in the last year.

The company has spent $438.20 million cash to carry out financing activities during the year as against cash outgo of $266.60 million in the last year period.

Cash and cash equivalents stood at $98.70 million as on Jan. 28, 2017, down 28.32 percent or $39 million from $137.70 million on Jan. 30, 2016.

Debt moves up marginally
Signet Jewelers Limited has witnessed an increase in total debt over the last one year. It stood at $1,409 million as on Jan. 28, 2017, up 2.20 percent or $30.30 million from $1,378.70 million on Jan. 30, 2016. Interest coverage ratio deteriorated to 30.71 for the quarter from 32.49 for the same period last year.