Signet Jewelers (ticker: SIG) saw a surge in its stock price during premarket trading on Thursday following its impressive performance, which exceeded estimates and raised its fiscal-year earnings guidance.
Strong Earnings and Revenue Outperform Expectations
Signet reported adjusted earnings of $1.55 per share, surpassing the consensus estimate of $1.45 per share. Although revenue declined by 8.1% YoY to $1.6 billion, it still outperformed estimates of $1.58 billion.
"Our team's focus on the consumer enabled us to exceed our revenue and bottom-line commitments in the quarter while also advancing our strategic priorities," stated Signet CEO Virginia Drosos. She further expressed confidence in achieving the company's Fiscal 2024 guidance.
Elevated Earnings Projections for Fiscal 2024
Signet announced a slight increase in its earnings projections for fiscal 2024, citing an anticipated boost in sales of engagement rings due to the expected rise in betrothals after a lull. The new earnings per share range is forecasted to be between $9.55 and $10.14, up from the previous range of $9.49 to $10.09. Analysts had previously estimated $9.42 per share. Signet reaffirmed its expectations for total sales to fall within the range of $7.1 billion to $7.3 billion.
Signet's Broad Portfolio and Recent Acquisition
As the parent company of renowned brands such as Zales, Kay Jewelers, and Blue Nile, Signet has solidified its position as a leading player in the jewelry industry. In July, the company acquired SJR National Repair, a retailer specializing in watch and jewelry repairs, for approximately $6 million.
Positive Market Response
Ahead of the opening bell on Thursday, Signet's stock experienced a 2.9% increase. So far this year, the stock has gained 5%.
