Signet Jewelers handily beats earnings estimates in fiscal Q1
Signet Jewelers reported its fiscal Q1 results on Thursday. Shares closed 9.0% up.
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Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2022-06-09 18:15

Stock of Signet Jewelers Ltd. closed 9.0% up on Thursday after the company reported better-than-expected profit for its fiscal first-quarter. The jewelry retailer also upped its stock repurchase program.
Signet Jewelers handily beats earnings estimates in fiscal Q1
Signet Jewelers Q1 Earnings Snapshot

The following results are compared to the first quarter fiscal 2022.

  • Swung to a net loss of $92.1 million

  • Adjusted earnings per share shot up to $2.86 from $2.23

  • Net sales increased 8.9% to $1.84 billion

FactSet consensus for adjusted EPS was $2.38 with $1.82 billion in net sales. In the earnings press release, CEO Virginia C. Drosos said:

“We generated 2.6% organic sales growth, enabled by our healthy inventory position, connected commerce capabilities and data-driven marketing. Our scale, strong balance sheet, and diversified banner portfolio provide flexibility to navigate macro level uncertainties, deliver consistent annual double-digit operating margin, and continue investing in differentiated capabilities to widen our competitive advantages.”

Other Notable Figures

Other notable figures in the earnings report include a 2.5% year-over-year increase in same-store sales, missing FactSet consensus for a 5.1% increase. At quarter end, the company is left with $9.27 million cash or cash equivalent.

Stores in North America saw a 5.4% increase in net sales versus the prior year, to $1.7 billion, but same-store sales had a 0.9% annualized decline. International net sales gew 91.6%, to $110.0 million compared to Q1 of fiscal 2022. Same-store sales in international outlets grew 102.6% versus the same quarter last year.

Signet’s Outlook for 2023

For full fiscal 2023, the Hamilton-based company forecasts adjusted EPS of $12.72 to $13.47 with $8.03 to $8.25 in revenue. For the current quarter, the company predicts $1.70 billion to $1.82 billion in revenue.
In comparison, FactSet consensus was $11.81 for earnings on adjusted basis and revenue of $8.03 billion this year. As per CFO Joan Hilson:

“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 macro-economic environment on consumer behavior. We believe that the strategies, agility and discipline of our team will enable us to continue to drive long-term value for our shareholders.”

Also on Thursday, Signet Jewelers upped its stock buyback authorization by $500 million. The $3.21 billion company that trades at a PE ratio of 15.61 is currently down roughly 27% for the year. Wall Street currently rates Signet Jewelers at “overweight” with an average price target of $98.17 a share.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2022-06-09 18:15

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About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.


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