Signet Jewelers Ltd (NYSE: SIG)
Signet Jewelers, the largest retailer of diamond jewelry in the world, posted solid second-quarter earnings before markets opened on Thursday.
The owner of Kay Jewelers and Zales has also improved its full-year forecast for both adjusted per-share earnings and revenue.
Signet shares rallied as much as 18% in pre-market trading following the upbeat earnings report. The stock has dropped 3.4% since the beginning of the year, while the S&P 500 has risen 8.9%.
SIG Earnings & Outlook
The Hamilton, Bermuda-based company came out with a net loss of $31.2 million, or $0.56 per share, after reporting a profit of $85.2 million, or $3.133 per share in the same period a year earlier. Excluding one-time items, earnings came in at $0.52 per share for the quarter.
Revenue jumped 1.5% from $1.399 billion in the year-ago quarter, to $1.420 billion. Analysts polled by Thompson Reuters were expecting adjusted earnings of $0.20 per share on revenue of $1.339 billion. Same-store sales grew 1.7% during the quarter, surpassing expectations of a 4.5% decline.
The company expects adjusted per-share earnings of between $4.05 to $4.40 for the full year, compared with its previous projection of $3.75 to $4.25. It also hopes to report revenue of $6.2 billion to $6.3 billion, from its earlier guidance of $5.9 billion to $6.1 billion.
Signet Jewelers CEO Comments
Chief Executive Officer Virginia C. Drosos made the following remarks, “While it is still early in our journey, we are encouraged by our improving year-to-date performance as we execute against our Path to Brilliance transformation plan. During the second quarter, we continued to see stabilization in same store sales, and we remain confident that we have the right strategies in place to continue to drive operational improvement over the long-term.”
Drosos continued, “To reflect our improved second quarter performance, we are modestly raising our revenue and earnings guidance for the year. For the fourth quarter, however, where a vast majority of our annual operating profit is generated, we are remaining appropriately cautious in our outlook as many of our Path to Brilliance initiatives are being launched later in the year.”
Signet Jewelers Ltd Company Profile
Signet Jewelers Ltd engages in the retail sale of diamond jewelry, watches, and other products in the United States, Canada, the United Kingdom, the Republic of Ireland, and the Channel Islands.
Its Sterling Jewelers division operates stores in malls and off-mall locations primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria of Jewelry, Jared Vault, and various mall-based regional brands, as well as JamesAllen.com, an online jewelry retailer Website. As of February 3, 2018, this division operated 1,586 stores.
The company’s Zale division operates jewelry stores and mall-based kiosks in shopping malls mainly under the Zales Jewelers, Zales Outlet, Peoples Jewellers, Gordon’s Jewelers, and Mappins Jewellers regional brands. As of February 3, 2018, it operated 868 jewelry stores and 598 mall-based kiosks.
Its UK Jewelry division operates stores in shopping malls and off-mall locations principally under the H. Samuel and Ernest Jones brands. As of February 3, 2018, this division operated 504 stores.
The company also operates a diamond polishing factory, which is involved in diamond sourcing and polishing activities. Signet Jewelers Limited was founded in 1950. –YahooFinance
