Signet Jewelers Rises After Beating Q3 Earnings Estimates

Shares of Signet Jewelers rose Thursday after the jewelry retailer swung to a profit for the three months ended October and beat analyst expectations.
Author:
Publish date:

Shares of Signet Jewelers  (SIG) - Get Report rose Thursday after the jewelry retailer posted stronger-than-expected earnings that beat analyst expectations.

Shares of the Hamilton, Bermuda company rose 6.25% to $31.61 at last check.

Signet swung to a profit of $9.3 million, or 2 pennies a share compared to a loss of $35.5 million, or 84 cents a share in the year-ago period.

For the quarter ended Oct. 31 revenue rose 9.48% to $1.3 billion from $1.18 billion.

A survey of analysts by FactSet produced consensus estimates of an adjusted loss of 66 cents a share on revenue of $1.14 billion.

"Our success came from a combination of factors including significant digital, product, and marketing innovations; our ability to capture pent-up demand as our stores reopened; and intentional efforts to capture early holiday shopping to help mitigate traditionally high in-store traffic days in December," said Chief Executive Virginia C. Drosos.

Signet reported e-commerce sales of $238.8 million, up 71.4%. Brick and mortar same-store sales increased by 6.8%.

"As we move to Q4, we recognize that the pandemic will continue to impact traditional in-store shopping behavior. Equipped with new capabilities, Signet's team is ready to meet our customers whenever and however they choose to shop this holiday and beyond," added Drosos.

Cash and cash equivalents rose to $1.33 billion from $188.6 million in the year-ago period.

Signet operates 3200 stores under the brands of Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda and JamesAllen.

Signet said through Nov.30, fourth quarter to date preliminary same-store sales were up 3% compared to the same period last year. Same-store sales for the Thanksgiving weekend through Monday were down low single digits reflecting weak retail store traffic the company added.

The company did not provide a future outlook due to the coronavirus pandemic