How Signet Jewelers Survived Q1

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Signet Jewelers Ltd. (NYSE: SIG) released its fiscal first-quarter financial results before the markets opened on Thursday. The company said that it had $0.08 in earnings per share (EPS) and $1.43 billion in revenue, which compares with consensus estimates that called for a net loss of $0.22 per share and $1.42 billion in revenue. In the same period of last year, the company said it had EPS of $0.10 and $1.48 billion in revenue.

During the latest quarter, same-store sales were down 1.3%. At the same time, e-commerce sales increased 5.3% year over year.

In terms of its segments, the firm reported as follows:

  • Kay sales decreased 1.4% year over to $574.8 million.
  • Zales sales decreased by 4.4% to $285.0 million.
  • Jared sales decreased by 4.7% to $255.0 million.
  • Piercing Pagoda sales increased 11.0% to $82.6 million.
  • James Allen sales decreased 2.4% to $52.0 million.
  • Peoples sales decreased 10.7% to $41.7 million.

Looking ahead to the 2020 fiscal full year, the company expects to see EPS in the range of $2.88 to $3.17 and same-store sales down 2.5% to 1.5%. Consensus estimates call for $3.00 in EPS and $6.03 billion in revenue.

Virginia C. Drosos, Signet CEO, commented:

We delivered operating profit above our guidance range and strong free cash flow in the first quarter, with same store sales at the low end of our guidance. Given the sales trends we experienced year to date and softening retail traffic, we are narrowing our Fiscal 2020 guidance while continuing to expect strong progress on cost savings across our business. We remain focused on executing our Path to Brilliance transformation initiatives to improve the trajectory of our same store sales and drive higher profitability over the long-term.

Shares of Signet traded down more than 5% early Thursday to $18.36, in a 52-week range of $18.29 to $71.07. The consensus price target is $26.83.


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