NEW YORK (TheStreet) -- Signet Jewelers (SIG) - Get Report stock is advancing 10.33% to $109.37 in afternoon trading on Monday after the jewelry retailer reported better-than-expected preliminary earnings for the fiscal 2016 fourth quarter.
Before today's market open, the Bermuda-based parent company of Kay Jewelers and Zales posted adjusted earnings of $3.63 per share for the quarter ended January 30, beating estimates of $3.55 per share.
Comparable store sales increased 4.9% driven by the retailer's credit program and strong holiday sales.
"Our business was strong in the fourth quarter as evidenced by our accelerating same store sales performance," CEO Mark Light said in a statement. "At the same time our credit metrics improved from the third quarter in line with expectations and we remain confident in the strength of our credit portfolio."
The company will release its complete fiscal 2016 fourth quarter financial report on March 24.
Additionally, Signet Jewelers board of directors approved an 18% increase its quarterly dividend to 26 cents per share, compared with the previous dividend of 22 cents per share.
Separately, Signet Jewelers has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels.
You can view the full analysis from the report here: SIG
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