Signet Jewelers gains slightly after solid guidance for crucial holiday quarter
J. Michael Jones
Signet Jewelers Limited (NYSE:SIG) reported sales fell 12.1% in FQ3 to $1.4B. Same-store sales were down 11.8% during the quarter against a soft comparison a year ago when the same-store sales were down 7.6%. Same-store sales were down 12.3% for the North America segment and were off 4.6% for the international segment.
Operating margin fell to 1.0% of sales vs. 3.1% a year ago. EPS was $0.24 vs. $0.22 consensus and $0.76 a year ago.
Looking ahead, Signet Jewelers Limited (SIG) issued in-line guidance for Q4 at $2.40B to 2.60B vs. $2.55B consensus. The company sees EPS of $9.55 to $10.18 for the full year vs. $9.81 consensus. “Trends through Black Friday weekend, including sequential improvement in engagement trends, are performing in line with guidance expectations for the fourth quarter,” noted CEO Virginia Drosos. “As we enter the holiday season, jewelry remains a top of mind gifting category for consumers in a value conscious shopping environment,” she added. Signet (SIG) also noted that it continues to make progress expanding gross margin through merchandise and sourcing strategies and growth in services revenue. “Cost savings initiatives are on track and healthy inventory enables product newness as we enter the holiday season and improved free cash flow, allowing Signet to return nearly $160 million to shareholders already this year,” highlighted CFO Joan Hilson.
Shares of Signet Jewelers Limited (SIG) were up 0.86% in premarket trading on Tuesday to $85.52 vs. the 52-week trading range of $57.10 to $87.13. The retail stock is up more than 28% on a year-to-date basis.
