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Signet Jewelers Higher After Swing to Profit on Near Double Revenue

Signet Jewelers shares rose Thursday after the retailer reported stronger-than-expected results, swinging to a profit on a near doubling of revenue.
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Signet Jewelers  (SIG) - Get Report shares rose Thursday after the retailer reported stronger-than-expected results, swinging to a profit on a near doubling of revenue.

For the fiscal 2022 first quarter ended May 1, the Hamilton, Bermuda, company swung to profit of $129.8 million, or $2.23 a share, from a loss of $205.3 million, or $3.96 a share, in the year-earlier quarter.

Adjusted earnings also totaled $2.23 a share in the latest quarter, topping analysts’ consensus estimate in a FactSet survey of $1.27 a share. The adjusted profit reversed a loss of $1.59 a year earlier..

Revenue almost doubled to $1.69 billion from $852.1 million. 

The FactSet analyst consensus called for $1.62 billion in the latest quarter. Same-store sales more than doubled (up 106.5%).

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Signet shares recently traded at $65.10, up 6.7%. They have more than doubled over the past six months amid strong jewelry demand during the pandemic.

“We are winning in our biggest banners through consumer-inspired differentiation, as evidenced by double-digit revenue growth in both Kay and Zales versus this time two years ago,” Chief Executive Virginia Drosos said in a statement.

In April, Signet had 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.

In March, the company posted a stronger-than-expected fiscal fourth quarter. Net income registered $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 a share, which beat the FactSet analyst consensus of $3.54. Sales totaled $2.2 billion, exceeding the analyst consensus of $2.1 billion.

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