Signet Jewelers Results Beat Estimates - Shares Rise

Signet shares rose Thursday after the jewelry retailer reported stronger-than-expected results in the face of the coronavirus pandemic.
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Signet Jewelers  (SIG) - Get Report shares rose Thursday, after the jewelry retailer reported stronger-than-expected earnings in the face of the coronavirus pandemic.

The Hamilton, Bermuda, company’s shares recently traded at $19.39, up 4.3%. They had slid 14% year to date through Wednesday.

For the fiscal 2021 second quarter ended Aug. 1, Signet posted a net loss of $90 million, or $1.73 a share, widened from $44.3 million, or 86 cents a share, in the year-earlier quarter.

The latest adjusted loss was $1.13 a share, reversing from adjusted earnings of 51 cents a year earlier. Analysts surveyed by FactSet had predicted a loss of $2.07 a share for the latest quarter.

Signet posted revenue of $888 million, down 35% from $1.36 billion in the year-ago quarter. The latest figure topped the FactSet analyst consensus of $788.5 million. 

Same-store sales dropped 31.3%, weaker than analysts’ estimate of a 28.9% drop. 

"Sales improved sequentially throughout the second quarter, as we reopened stores and remained agile and innovative in these unprecedented times,” Chief Executive Virginia Drosos said in a statement.

“During the quarter, we also scaled our new virtual selling model, improved our merchandise assortment, and enhanced our targeted digital marketing to a strong consumer response."

Same-store sales "turned positive [late in the second quarter], as we reached scale on store reopenings while driving high-double-digit growth in e-commerce,” she said.

“Momentum has continued into the third quarter, with preliminary August same-store sales of 10.9% and e-commerce growth of 65.2%,” the executive said.

Signet boosted its target for net cost savings to $285 million from $225 million for the fiscal year.