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Signet Stock Surges Amid Strong Outlook
Jun 9, 2022 10:00 AM
By Rapaport News
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RAPAPORT... Shares in Signet Jewelers soared nearly 9% in early trading Thursday as the company’s revenue edged out analysts’ forecast and its full-year guidance surpassed expectations.
Revenue rose 9% to $1.84 billion in the 13 weeks that ended April 30, as the retailer sold a larger proportion of high-value goods and introduced several new offerings, Signet reported Thursday. That figure is slightly above the $1.82 billion analysts had predicted. Same-store sales grew 2.5%.
“Customers responded to the breadth and newness within our assortment, particularly higher price-point offerings, diamonds and precious metals,” said Signet CEO Virginia Drosos.
However, the company — whose banners include Kay, Jared, Zales and James Allen — posted a net loss of $83.5 million, compared with a profit of $138.4 million a year earlier. The retailer attributed a portion of the loss to payment of charges related to the resolution of a litigation.
Meanwhile, Signet maintained its revenue forecast of between $8.03 billion and $8.25 billion for the full fiscal year — translating to annual growth of up to 5%. The prediction was higher than the market consensus, which foresaw an upper range of $8.03 billion.
The company believed it would meet those goals despite current market challenges, as it upped its digital offering to yield higher-priced purchases.
“While we anticipated and experienced softening within lower price points resulting from heightened inflation and the lack of stimulus, we delivered offsets through tailored assortments, digital capabilities and enhanced services to maintain higher average transaction values,” said chief financial and strategy officer Joan Hilson.
Sales in North America increased 5% year on year to $1.71 billion in the first quarter. Revenue from other markets jumped 92% to $110 million due to a favorable comparison with the same period a year earlier, when the UK was under strict Covid-19 restrictions.
“At this time we continue to focus on the factors under our control and leverage our competitive advantages as we navigate the impact of this macroeconomic environment on consumer behavior,” Hilson added. “We believe that the strategies, agility and discipline of our team will enable us to continue to drive long-term value for our shareholders.”
Image: A Jared and James Allen joint store. (Signet Jewelers)
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Tags:
diamonds, James Allen, Jared, Jewelry, Joan Hilson, kay, Rapaport News, Signet, Signet Jewelers, Virginia Drosos, zales
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