Shares of Signet Jewelers (SIG) - Get Report surged on Thursday after the jewelry chain reported fiscal second-quarter earnings and sales that handily beat analysts' forecasts amid ongoing demand for its offerings geared toward "value-oriented" shoppers.
The Hamilton, Bermuda-based company posted non-GAAP operating income of $53.1 million, or 51 cents a share, vs. $48.6 million, or 52 cents a share, in the comparable year-earlier quarter. The results were more than double the 25 cents a share expected by analysts polled by FactSet. Sales came in at $1.36 billion, slightly above the $1.3 billion expected by analysts.
Same-store sales -- a key metric in the retail industry -- fell 1.5%, though e-commerce sales were up 4.4%, the company said.
"As we enter the competitive holiday season, we believe we are positioned to execute our product strategy by launching additional flagship brands, delivering relevant on-trend new merchandise and offering a highly competitive assortment for value-oriented shoppers," CEO Virginia Drosos said in a statement.
For fiscal 2020, Signet said it expects same-store sales to be down between 1.5% and 2.5% and total sales of between $6 billion and $6.03 billion. It expects non-GAAP operating income of between $260 million and $280 million and per-share earnings of between $2.91 and $3.23.
Separately, Signet said it expects to proceed with refinancing $1.6 billion of senior asset-based debt.
Shares of Signet jumped nearly 30% in early trading on Thursday, gaining $3.30 a share to $14.31 on the New York Stock Exchange. The stock touched a 52-week high of $68.24 last September.