Signet Jewelers Shines in Q2

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Signet Jewelers Ltd. (NYSE: SIG) released its fiscal second-quarter financial results before the markets opened on Thursday. The firm said that it had $0.51 in earnings per share (EPS) and $1.36 billion in revenue, which compares with consensus estimates of $0.24 in EPS and $1.34 billion in revenue, as well as the $0.52 per share and $1.42 billion posted in the same period of last year.

During the latest quarter, same-store sales decreased 1.5% from last year, with e-commerce sales up 4.4%.

In terms of its segments, Signet reported as follows:

  • Kay sales decreased 3.1% year over year to $528.9 million, with same-store sales decreasing 2.7%.
  • Zales sales decreased 0.9% to $275.9 million, with same-store sales increasing by 2.0%.
  • Jared sales decreased 6.1% to $254.6 million, with same-store sales decreasing 3.5%.
  • Piercing Pagoda sales increased 9.8% to $74.2 million, with same-store sales increasing 11.4%.
  • James Allen sales decreased 1.5% to $53.6 million, with same-store sales decreasing 1.5%.
  • Peoples sales decreased 4.6% to $45.5 million, with same-store sales decreasing 0.9%.
  • Regional Banners sales decreased 61.0% to $8.3 million, with same-store sales decreasing 10.0%.

Looking ahead to the fiscal full year, the company expects to see EPS in the range of $2.91 to $3.23 and total sales of $6.0 billion to $6.03 billion, with same-store sales decreasing between 2.5% and 1.5%. Consensus estimates call for $2.91 in EPS and $6.0 billion in revenue.

Virginia C. Drosos, Signet CEO, commented:

We continue to gain traction on our transformation initiatives and delivered second quarter results that exceeded our same store sales, non-GAAP operating profit, and non-GAAP earnings per share expectations. Our continuing cost control and disciplined inventory management also led to improved adjusted free cash flow generation in both the second quarter as well as year to date. We remain on track to deliver our full year non-GAAP financial guidance.

Shares of Signet traded up nearly 28% early Thursday at $14.10, in a 52-week range of $10.40 to $68.24. The consensus price target is $17.75.


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