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SIG Signet Jewelers Ltd

96.00
-0.75 (-0.78%)
Last Updated: 15:37:27
Delayed by 15 minutes
Share Name Share Symbol Market Type
Signet Jewelers Ltd NYSE:SIG NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  -0.75 -0.78% 96.00 96.92 95.17 95.46 110,923 15:37:27

Signet Surges After Surprise Sales Growth -- Update

30/08/2018 11:44pm

Dow Jones News


Signet Jewelers (NYSE:SIG)
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By Kimberly Chin 

Shares of Signet Jewelers Ltd. surged 24% on Thursday after the world's largest retailer of diamond jewelry reported positive same-store sales growth for the first time in a year, fueled by increased consumer confidence.

Same-store sales for the parent of Kay Jewelers and Zales rose 1.7% in the second quarter from the prior year. Analysts polled by Consensus Metrix were expecting a 4.2% decline. Overall, revenue rose 1.5% to $1.42 billion.

With Thursday's gains, Signet shares, which closed at $67.68, swung into positive trading territory for the year.

This surprise sales growth comes as retailers have seen consumers, increasingly confident about their economic prospects, spending more money on a range of items such as designer handbags and apparel.

Rising demand in the U.S. market, supported by wage growth and low unemployment, helped lift comparable sales at some of the largest luxury brands, such as Tiffany & Co., LVMH Moët Hennessy Louis Vuitton, and Kering SA, parent of Gucci, Yves Saint Laurent and Balenciaga.

Chief Executive Virginia Drosos said that promotions and the addition of new items helped prop up sales in North American for the quarter.

For Signet, the positive growth comes as the retailer tries to return to profitability in the midst of a three-year turnaround plan. For instance, Signet sold its consumer-lending portfolio to raise money and sharpen its focus on its core jewelry business.

In the second quarter, Signet reported a loss of $31.2 million, or 56 cents a share, in the quarter, compared with a profit of $85.2 million, or $1.34 a share, in the same period a year earlier. The loss was driven by higher selling and administrative expenses as well as costs related to restructuring and the outsourcing of its credit operations.

On an adjusted basis, Signet reported a profit of 52 cents a share. Analysts had expected 20 cents a share, according to a Thomson Reuters poll.

Signet also announced Thursday Chief Financial Officer Michele Santana is planning to leave at the end of the year to "pursue other opportunities." Signet will look externally for candidates to fill Ms. Santana's position.

Signet, along with Tiffany, has been pouring money into revamping its stores and sales and marketing strategies to reduce its dependence on shoppers walking into physical locations. As part of its turnaround, Signet has also invested in improving its e-commerce and omnichannel capabilities. E-commerce sales increased 83% to $150.3 million in the most recent quarter.

With Thursday's gains, Signet shares, recently trading at $68.54, swung into positive trading territory for the year.

Write to Kimberly Chin at kimberly.chin@wsj.com

 

(END) Dow Jones Newswires

August 30, 2018 18:29 ET (22:29 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

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