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Signet Shares Advance on Upbeat Sales Forecast

Nov 22, 2016 11:21 AM   By Rapaport News
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Signet Jewelers increased its full-year earnings guidance as results were better than anticipated in the third fiscal quarter. The retailer’s share price rose about 4 percent early Tuesday following the announcement.

Profit jumped 13 percent to $17 million in the 13 weeks that ended October 29, while revenue declined 2.5 percent to $1.19 billion, the diamond jeweler reported. Same-store sales slipped 2 percent, beating the company’s own guidance of a 3 percent to 5 percent decline.

“We expected challenging market conditions to result in a sales decline,” said Mark Light, Signet’s chief executive officer. “However, our continuing ability to execute in a difficult environment led to results that were somewhat better than our expectations.”

The company raised its outlook for earnings per share to a range of $7.03 to $7.25 for the fiscal year ending January 2017, compared with a previous forecast of $6.90 to $7.22.

Even as lower quarterly sales had beaten expectations, Signet still highlighted underperformance in certain stores, in particular regional outlets and shops in the energy-dependent regions. Jared sales were also worse than the company had expected, declining 2.5 percent to $226.6 million. The weaker segments were, however, partly offset by stronger sales of fashion jewelry and certain types of bridal jewelry.

Sales at Kay Jewelers declined 1.4 percent to $456.6 million, while revenue in the Zale division climbed 1.8 percent $335.8 million.

Even as lower quarterly sales had beaten expectations, Signet still highlighted underperformance in certain stores, in particular regional outlets and shops in the energy-dependent regions. Jared sales were also worse than the company had expected, declining 2.5 percent to $226.6 million. The weaker segments were, however, partly offset by stronger sales of fashion jewelry and certain types of bridal jewelry.

Sales at Kay Jewelers declined 1.4 percent to $456.6 million, while revenue in the Zale division climbed 1.8 percent $335.8 million.

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Tags: bridal jewelry, Jared, jewelers, Jewelry, Kay Jewelers, Mark Light, Rapaport News, retail, retailers, Signet, Signet Jewelers, Zale
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