Signet Jewelers Reported Third-Quarter Earnings on Thursday
Dec 2, 2021 By MarketDepth
Signet Jewelers Ltd. (NYSE: SIG), shares rose during premarket trading Thursday after reporting its fiscal third-quarter earnings. Signet, the world’s largest diamond jewelry retailer, is the parent company to Kay Jewelers, Zales and Jared. Nevertheless, the company’s stock fell 3% upon market open.
Secured Holiday Jewelry
According to Signet CEO Vignia Drosos, the jeweler secured its holiday merchandise early amid ongoing supply chain disruptions and labor shortages. Drosos says it expects no major issues and is sufficiently staffed for the season.
Higher Than Expected Earnings
The company reported earnings of USD1.43 per share, compared to the expected USD0.72 a share. Net income amounted to USD92.6 Million, much higher than the previous year’s USD9.3 Million.
“While uncertainties remain in the macro environment, our strategies are working as evidenced by strong conversion rates and higher average transaction value. We have built a healthy operating structure enabling transformative investments that are attracting new customers and driving loyalty. Our data driven customer insights and planning helped us secure earlier receipt of our holiday assortment and ensure no significant disruptions to our supply chain or labor needs.”Signet CEO, Viginia Drosos
Signet now foresees fiscal 2022 sales to range anywhere from USD7.41 Billion and USD7.49 Billion, an increase from its previous range of USD7.04 Billion to USD7.19Billion. Furthermore, it believes same-store sales will be up 41% to 43% year over year, up from prior expectations of a 35% to 38% increase.
“The operating margin improvement in our guidance represents the ongoing structural changes in our business model, which include fleet optimization, transformation of financial services and significant cost savings.”Joan Hilson, Chief Financial and Strategy Officer