Signet Jewelers Limited has reported its second quarter fiscal 2025 results, showing a decrease in sales of $122.6 million or 7.6% compared to the same quarter in fiscal 2024. Same store sales were down 3.4% compared to the previous year. The company's gross margins expanded by 10 basis points to 38.0% of sales, driven by a 120 basis point merchandise margin improvement. However, the operating loss was $100.9 million, down from operating income of $90.2 million in the second quarter of fiscal 2024, primarily due to $166 million of non-cash impairment charges.
On an adjusted basis, operating income was $68.6 million, down from $102.7 million in the same period last year. Diluted loss per share was $2.28, compared to diluted earnings per share of $1.38 in the second quarter of fiscal 2024. Excluding non-cash impairment charges, adjusted diluted earnings per share were $1.25, down from $1.55 in the prior year period.
The company's cash and cash equivalents at quarter end were $403.1 million, down from $690.2 million in the second quarter of fiscal 2024. Signet repurchased approximately 441,000 common shares during the second quarter.
Looking at the company's segments, total sales in the North America segment were down 6.9% to $1.4 billion, while international segment sales decreased by 15.2% to $86.5 million. However, same store sales in the international segment increased by 1.7% compared to the second quarter of fiscal 2024.
Signet's balance sheet showed that year to date cash used in operating activities was $114.4 million, compared to cash used in operating activities of $253.3 million in the same period last year. Inventory at the end of the quarter was $2.0 billion, down $116.7 million or 5.6% compared to the second quarter of fiscal 2024.
Looking ahead, Signet reiterated its fiscal 2025 guidance, expecting total sales between $6.66 billion to $7.02 billion and same store sales between a decline of 4.5% to an increase of 0.5%. The company also provided guidance for adjusted operating income, adjusted EBITDA, and adjusted diluted earnings per share for the third quarter and full fiscal year 2025.
Signet's board of directors declared a quarterly cash dividend on common shares of $0.29 per share for the third quarter of fiscal 2025 and the company repurchased approximately $39.8 million worth of common shares in the second quarter. As a result of these announcements, the company's shares have moved 2.4% on the market, and are now trading at a price of $78.09. Check out the company's full 8-K submission here.
