Shares of Signet Jewelers (SIG) - Get Report advanced Monday after the diamond jewelry retailer raised its revenue guidance for the first quarter to between $1.57 billion and $1.6 billion from its previous estimate of $1.42 billion to $1.46 billion.
Shares of the Hamilton, Bermuda., company rose 5.26% to $64.29 at last check.
"Signet has seen stronger than expected conversion and average ticket values in the first quarter," the company said in a statement.
For the full year, Signet expects to clock revenue between $6 billion and $6.14 billion, higher than the $5.85 billion to $6 billion estimated earlier.
"The company believes this topline strength is likely due to a combination of traction from strategic initiatives as well as tailwinds from stimulus, tax refunds and consumer enthusiasm on the heels of vaccine rollouts," it added.
The company also said it had mitigated the short-term impact of inventory delays related to a recent spike in coronavirus cases in India and other parts of the world.
However, "if the duration and magnitude of these inventory slowdowns intensify," there could be future negative impacts on the full-year guidance, it added.
Last month, Signet posted stronger-than-expected fourth-quarter earnings and offered strong guidance.
Signet reported net income of $245.7 million, or $4.12 a share, up from $178.8 million, or $3.67, in the year-earlier period. Adjusted earnings came to $4.15 per share, which beat the FactSet analyst consensus of $3.54 per share.
Sales totaled $2.2 billion, up 1.5% from a year earlier and ahead of the FactSet consensus of $2.1 billion.