Signet Jewelers expects to grow cash position, lower leverage to 3.5x

By Devika Patel

Knoxville, Tenn., April 3 – Signet Jewelers Ltd. plans to build its cash position and lower its leverage ratio to 3.5x by the end of fiscal 2021.

“We are committed to building a more durable balance sheet to support our growth priorities for the business and continue to return cash to shareholders,” chief executive officer Virginia C. Drosos said on the company’s fourth quarter and year ended Feb. 2 earnings conference call on Wednesday.

“We intend to build cash on our balance sheet.

“We now expect our leverage ratio to reach approximately 3.5x by the end of fiscal 2021,” Drosos said.

As of year-end, the company’s leverage ratio was 4.3x.

Cash and cash equivalents were $195.4 million as of Feb. 2, compared to $225.1 million at prior-year end.

Long-term debt was $649.6 million as of Feb. 2, 2019, compared to $688.2 million as of Feb. 3, 2018.

Signet Jewelers is a Hamilton, Bermuda-based retailer of diamond jewelry.

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