Brilliant, shiny, sparkly – the analogies are pretty easy to try on following Signet’s (SIG) - Get Report raise-the-roof holiday sales performance, which saw a big uptick in same-store sales that the retail jeweler attributes to its “Path to Brilliance” turnaround plan.
Shares of the Hamilton, Bermuda-based company soared by double-digit percentage points on Thursday after the company said same-store sales blew past its own forecasts, and that it now expects earnings for its fiscal fourth quarter and full year to shine even brighter than it thought.
Signet said it now expects per-share earnings of between $3.44 and $3.52 for its fiscal fourth quarter, well above current Wall Street consensus estimates of $3.11 share.
Fiscal fourth-quarter operating income is now expected to ring in at between $254 million and $259 million, while same-store sales are expected to be up 1.1% on revenue of $2.12 billion.
For fiscal 2020, Signet said it now expects per-share earnings of between $3.61 and $3.69 a share on revenue of $6.1 billion, with same-store sales up 0.1%.
“We delivered holiday same-store sales growth ahead of our guidance as we continued to implement year two of our Path to Brilliance transformation,” CEO Virginia Drosos announced on Thursday. “Product newness, investments in our digital capabilities, and more targeted marketing campaigns drove both eCommerce and brick and mortar growth in North America.”
Signet's Sterling Jewelers division operates stores in malls and off-mall locations primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria of Jewelry, Jared Vault, and various mall-based regional brands.
Shares of Signet gained more than 42%, rising more $9.17 to $30.60.