Signet Jewelers Ltd. | $SIG Stock | Shares Tick 18% On Q1 Earnings Beat

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Signet Jewelers Ltd. (NYSE: SIG)

 

Signet Jewelers Ltd. reported better-than-expected first quarter results for fiscal 2019 before the bell Wednesday sending its stock up in the morning trading session.

The company finished above Wall Street estimates on both revenue and adjusted per-share earnings. The stock was trading at $52.50 after gaining $8.35, or 18.91% at 10:54 AM.

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Signet Jewelers had net loss of $496.6 million, or $8.48 per share during the quarter, compared with earnings of $78.5 million, or $1.03 per share, in the prior-year period.

Adjusted earnings per share came to $0.10 beating analysts’ estimate for a loss of $0.09 per share. Revenue was $1.48 billion ahead of analysts’ estimate of $1.40 billion, and the $1.40 billion figure that the company reported in the first quarter of 2018.

 The company expects full-year sales in the range of $5.9 billion and $6.1 billion, and adjusted earnings per share of between $3.75 and $4.25.

Signet Jewelers CEO Comments

The Chief Executive Officer of Signet Jewelers, Virginia C. Drosos, said, “As we begin to implement our Signet Path to Brilliance transformation plan, we remain focused on driving operational improvement by executing on our Customer First, OmniChannel and Culture of Agility and Efficiency pillars. In the first quarter, we saw signs of stabilization in our overall sales and once again achieved double digit growth in eCommerce. In the first quarter, we saw signs of stabilization in our overall sales and once again achieved double digit growth in eCommerce.”

Looking ahead, we expect second quarter revenues to be impacted by a tougher prior year same store sales comparison and calendar shifts. We are maintaining our full year 2019 guidance and are intensely focused on laying the foundation to support improved performance in the holiday season. While progress will continue to be gradual and incremental, we are confident Signet is on the right path to achieve long-term sustainable, profitable growth,” Drosos continued.

Signet Jewelers Ltd. Company Profile

Signet Jewelers Ltd. is engaged in the retail sale of jewelry, watches, as well as other products in the U.S., U.K., Canada, the Channel Islands, and the Republic of Ireland.

Its segments of operations are as follows: UK Jewelry, Zale and Sterling Jewelers. Its UK Jewelry segment operates stores in off-mall locations and shopping malls mainly under the Ernest Jones and H. Samuel brands.

Under the Sterling Jewelers segment, the company operates stores in shopping malls and off-mall locations mainly under the Jared The Galleria of Jewelry, Kay Jewelers, Jared Vault, Kay Jewelers Outlet, and various mall-based brands.

The Zale segment operates jewelry mall-based kiosks and stores in shopping malls primarily under the Peoples Jewellers, Mappins Jewellers, Zales Jewelers, Gordon’s Jewellers, and Zales Outlet regional brands.

Signet Jewellers also operates an online jewelry website known as JamesAllen.com. In addition, it owns a diamond polishing factory that is involved in diamond polishing and sourcing activities.

Signet Jewelers Ltd. was founded in 1950 and its headquarters are located in Hamilton, Bermuda. –Reuters

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