Latest news with #Signet
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18 hours ago
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Up 60% in Three Months, Can This Bargain Stock Keep Gaining?
Signet Jewelers soared after returning to positive comparable sales growth in the first quarter. Its Grow Brand Love strategy is paying off as sales of lab-grown diamonds in fashion jumped 60%. The company repurchased 5% of its shares outstanding in the quarter. 10 stocks we like better than Signet Jewelers › Signet Jewelers (NYSE: SIG) is the world's largest retailer of diamond jewelry, but as a leader in a mature market, the stock has been overlooked by investors hungry for growth in the artificial intelligence (AI) era. That's led Signet, which owns banners like Kay, Jared, and Zales, to trade at a bargain valuation, and the stock looks more attractive after surging on its first-quarter earnings report. The company returned to same-store sales growth for the first time in several quarters and beat estimates on the top and bottom lines. Signet posted a same-store sales increase of 2.5%, thanks in part to 8% growth in average unit retail (AUR), or average prices. This was driven by a surge in lab-grown diamonds in its fashion segment, meaning non-bridal jewelry. Overall revenue in the quarter rose 2% to $1.54 billion, which topped the consensus at $1.52 billion. It showed off growth throughout the income statement, a credit to the improved assortment that led to comparable-sales growth. Gross margin rose 100 basis points to 38.8%, driven by improving merchandise margin and as it gained leverage on fixed costs. Adjusted operating income jumped from $57.8 million to $70.3 million. Adjusted earnings per share rose from $1.11 to $1.18, which beat the consensus at $1.04. Signet stock jumped as much as 16.8% on Tuesday on the news. In an interview with The Motley Fool, CFO/COO Joan Hilson credited the company's Grow Brand Love strategy for the improvement in Signet's business. New CEO J.K. Symancyk introduced the strategy in its fourth-quarter earnings report, saying the company would focus on more style and design-led product in its assortment. This includes a reorganization of the business. Hilson said part of that strategy means a sharper focus on Signet's top three banners, Kay, Zales, and Jared, saying that one point of growth at those banners was equal to six points of growth at its other brands. "This is the most immediate way for us to drive short-term growth," she said. Those efforts seem to have paid off as an improved assortment helped drive sales growth, with Signet particularly strong in fashion items at a price point of $250 to $500. Additionally, the company said that sales of lab-grown diamonds in the fashion segment jumped 60%. This shows that it's finding a new way to meet customer demand, as lab-grown diamonds offer the ability to get more karats for a lower price point than natural diamonds. Looking ahead, management said the company got off to a strong start in the second quarter. Quarter-to-date revenue was near or above the high end of its guidance for the quarter, calling for same-store sales of -1.5% to +1%. The company did not adjust its second-half expectations for the year, except to account for $117.5 million in share repurchases in Q1, or 5% of shares outstanding, showing another way Signet is delivering value for investors. For the full year, the company raised its revenue guidance from $6.53 billion to $6.80 billion to $6.57 billion to $6.8 billion, and now expects adjusted earnings per share of $7.70 to $9.38, up from a previous range of $7.31 to $9.10. That guidance factors in current tariffs, which the company expects to manage through vendor negotiations and other tactics, and management said the consumer remained resilient. At the midpoint of that guidance, the stock trades at a forward price-to-earnings ratio of just 8.5. This makes the stock attractively priced, especially after returning to growth and opportunistically buying back stock. Signet is now up 60% since its low point in March after the company reported disappointing Q4 results, which shows that the Grow Brand Love strategy has already had a significant effect. Looking ahead, the stock looks positioned for further gains due to its low valuation, improved assortment, growth in lab-grown diamonds, and ability to repurchase stock. Signet stock could easily move higher from here. Before you buy stock in Signet Jewelers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Signet Jewelers wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Up 60% in Three Months, Can This Bargain Stock Keep Gaining? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 days ago
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Signet Shares Soar 12.5 Percent as Q1 Sales Gain
Updated 4:16 p.m. ET June 3 Signet Jewelers, reporting sales gains for the first quarter and displaying confidence in its transformation efforts, saw its share price spike 12.5 percent on Tuesday. More from WWD Jane Win and Shoe Brand Larroudé Collaborate on Limited-edition Evil Eye Motif Jewelry Capsule Roberto Coin Brings Touch of Venice to NYC to Fete Dakota Johnson as Ambassador Dakota Johnson Steps Into Sculptural Allure With Ferragamo's 'F' Heels at Roberto Coin Event Net income was $33.5 million, or 78 cents per diluted share for the quarter ended May 3, when results were pulled down by tax changes and restructuring charges totaling 46 cents per share. A year ago, earnings stood at $52.1 million, or 90 cents. Adjusted operating income, which the company considers a clearer indication of its financial performance, increased to $70.3 million from $57.8 million. Sales rose 2 percent to $1.54 billion from $1.51 billion, while comparable-store sales increased 2.5 percent. The average unit retail price increased approximately 8 percent. The results, as well as a slightly elevated outlook on sales for 2025, pushed shares up $8.32 to $75.13 on Tuesday. 'We really saw balanced growth across all categories,' chief executive officer J.K. Symancyk told WWD. He attributed much of the sales gain to bridal jewelry, which has continued to show growth since the fourth quarter, and fashion jewelry, where there has been 'early wins' in jewelry priced between $250 to $500, a range that Signet in the past did not emphasize enough. During the interview, the CEO characterized the consumer as 'resilient and smart.…They are making choices, but if the design and value proposition are right, and you are connecting in the right emotional ways as a brand, we see the consumer willing to invest and spend. But we certainly recognize it's a dynamic environment. We don't take that for granted.' Symancyk also gave WWD a progress report on Signet's 'Grow Brand Love' transformation strategy, which was completed in the first quarter and involved some reduction in staff size and the elimination of some layers of management. The headcount reduction was not disclosed because, as Symancyk said: 'It wasn't big enough. It was more about being more efficient and effective and really aligning our structure behind the strategy.' He also said the reorganization enables management to 'speed the clock on how we make decisions, particularly when you speak about being relevant in trend and fashion,' and brings the teams across the Signet portfolio of brands closer to the consumer. As part of the transformation, Symancyk said he sees fewer than 200 stores across the entire Signet portfolio closing this year. Another aspect of the strategy calls for the company to be innovative 'in three ways,' Symancyk said. Developing more design-led assortments that are on-trend and convey greater newness. 'Dimensionalizing the customer experience' across the brands and no longer taking a standardized approach to store operations. Elevating the marketing. 'You will see different personalities for each brand,' said Symancyk, adding that the company's marketing spend grew by 2 percent last quarter, helping drive impressions up 30 percent. Overall, the strategic plan is intended to accelerate growth in several ways after the company experienced a difficult 2024. Also on the agenda: expansion into new categories such as gifts, building brand loyalty and creating compelling experiences for customers including new store designs. Among the best-performing collections last quarter were Unspoken at Jared, and the Stellar Allure and Whimley collections at Zales. In his prepared statement, Symancyk said: 'While we're in the early innings of Grow Brand Love, our strategy is already driving growth in both bridal and fashion. 'We delivered positive same-store sales growth each month of the quarter, and into May, by bolstering our offerings at key price points and continuing the evolution of our assortment. Our three largest brands — Kay, Zales and Jared — all saw sequential comp sales improvement from the fourth quarter on higher margins, highlighting the impact of our outsized focus on our larger brands.' Signet also operates Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, Rocksbox, Peoples Jewellers, H. Samuel and Ernest Jones. Joan Hilson, chief operating and financial officer, said in her prepared statement: 'Our renewed promotional strategy and inventory management delivered both gross merchandise margin and adjusted operating margin expansion in the quarter with sales improvement outpacing inventory growth. Given our positive performance, we are increasing the low end and maintaining the high end of our fiscal 2026 operating guidance. This outlook reflects the current macro environment and current tariffs as well as on track cost savings initiatives. Further, we are raising our adjusted EPS guidance to reflect the repurchase of more than 5 percent of outstanding shares year to date.' Signet brought up the bottom-end of its guidance for 2025 and is now forecasting $6.57 billion to $6.8 billion in sales, from its previous projection of $6.53 billion to $6.8 billion in sales. Same-store sales are now seen ranging from down 2 percent to up 1.5 percent, versus the previous guidance of down 2.5 percent to up 1.5 percent. Adjusted operating income is seen ranging from $430 million to $510 million, versus the earlier projection of from $420 million to $510 million. The total sales outlook anticipates a 'measured consumer environment, providing for variability in consumer spending over the year,' the company said. Signet also indicated that it expects to absorb current tariffs within the adjusted operating income range provided, and that the forecast excludes any potential impact resulting from any new tariffs and the potential outcome of reciprocal tariffs. In other first-quarter results, gross margin was $598.8 million, up approximately $26 million from the first quarter last year. Gross margin rate grew 100 basis points to 38.8 percent, driven by gross merchandise margin expansion and leverage on fixed costs. SG&A was $526 million, or 34.1 percent of sales, up from $515.4 million, and flat to the year-ago first quarter, as a percentage of sales. 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3 days ago
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Signet Q1 Earnings Beat, Same-Store Sales Up Y/Y, FY26 View Raised
Signet Jewelers Limited SIG posted impressive first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, both revenues and earnings increased year over year. Same-store sales increased 2.5% from the year-ago period. Driven by the fiscal first-quarter results, Signet has raised its fiscal 2026 outlook. In response to these factors, shares of the company gained 12.5% yesterday. SIG reported adjusted earnings of $1.18 per share, surpassing the Zacks Consensus Estimate of $1.01. Also, the bottom line increased 6.3% from adjusted earnings of $1.11 per share in the year-ago period. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)This jewelry retailer generated total sales of $1,541.6 million, beating the consensus estimate of $1,516 million. Also, the top line increased 2% year over year. The metric also increased 2% at constant currency. Merchandise average unit retail (AUR) rose approximately 8% year over year. Signet Jewelers Limited price-consensus-eps-surprise-chart | Signet Jewelers Limited Quote The gross profit in the fiscal first quarter amounted to $598.8 million, up 4.6% from $572.4 million in the year-ago quarter. The gross margin increased 100 basis points (bps) year over year to 38.8% in the quarter under review, primarily due to higher merchandise margins and better leverage of fixed general and administrative (SG&A) expenses were $526 million, up 2.1% from the prior-year quarter. Meanwhile, SG&A expenses, as a percentage of sales, were 34.1%, which remained flat year over year. SIG reported adjusted operating income of $70.3 million, up 21.6% from $57.8 million in the year-ago quarter. We note that the adjusted operating margin increased 80 bps to 4.6%. Sales in the North American segment increased 2.1% year over year to $1.45 billion, which beat the Zacks Consensus Estimate of $1.43 billion. Same-store sales increased 2.3% year over in the International segment increased 3.8% year over year to $80.1 million, surpassing the consensus estimate of $75.9 million. Same-store sales jumped 4.5% year over year. Sales increased 1.5% on a constant-currency basis. SIG Stock Past Three-Month Performance Image Source: Zacks Investment Research As of May 3, 2025, the North American segment had 2,371 stores, a decrease from 2,379 in February 2025 due to five openings and 13 closures. The International segment had 262 stores, down from 263 after one closure and no openings. Overall, Signet had 2,633 stores, down from 2,642, following five openings and 14 closures. SIG ended the fiscal first quarter with cash and cash equivalents of $264.1 million and inventories of $2.01 billion. Total shareholders' equity was $1.78 billion at the end of the fiscal first of May 3, 2025, net cash used was $175.3 million in operating the first quarter, Signet repurchased approximately 2.1 million common shares for $117.4 million. Following the quarter's end, the company repurchased an additional 235 thousand shares for $15 million through June 2, 2025. Nearly $600 million remains available under the current share repurchase authorization. For the second quarter of fiscal 2026, Signet expects total sales to be in the range of $1.47-$1.51 billion. Same-store sales are projected to be between a decline of 1.5% and an increase of 1% year over year. The company expects the gross margin rate to be flat to up modestly, driven by continued merchandise margin expansion and modest deleverage in SG&A operating income is anticipated to be between $53 million and $73 million, while adjusted EBITDA is expected in the range of $99-$119 million. Signet has updated its fiscal 2026 guidance. Total sales are now expected in the range of $6.57-$6.80 billion, up from the previous range of $6.53-$6.80 billion. Same-store sales are projected between a decline of 2% and an increase of 1.5% compared with the prior range of decline of 2.5% and an increase of 1.5%. Adjusted operating income is now anticipated to be between $430 million and $510 million, up from $420-$510 million expected previously. Adjusted EBITDA is forecasted at $615-$695 million compared with the earlier range of $605-$695 million. Adjusted EPS is expected to be between $7.70 and $9.38, an increase from the prior guidance of $7.31-$9.10. The company continues to expect capital expenditures to be between $145 million and $160 Zacks Rank #3 (Hold) company's shares have gained 52.4% in the past three months compared with the industry's 24.6% growth. Some better-ranked stocks are Urban Outfitters Inc. URBN, Canada Goose GOOS and Allbirds Inc. Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for URBN's fiscal 2025 earnings and sales implies growth of 20.9% and 8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at Zacks Consensus Estimate for Canada Goose's current fiscal-year's earnings and sales implies growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at Zacks Consensus Estimate for BIRD's current financial-year's earnings indicates growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Signet Jewelers Limited (SIG) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report Allbirds, Inc. (BIRD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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4 days ago
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Compared to Estimates, Signet (SIG) Q1 Earnings: A Look at Key Metrics
For the quarter ended April 2025, Signet (SIG) reported revenue of $1.54 billion, up 2% over the same period last year. EPS came in at $1.18, compared to $1.11 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.52 billion, representing a surprise of +1.69%. The company delivered an EPS surprise of +16.83%, with the consensus EPS estimate being $1.01. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Signet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Change in Same store sales - North America segment: 2.3% versus 1% estimated by two analysts on average. Total Number of Stores: 2,633 compared to the 2,635 average estimate based on two analysts. Number of stores - International segment: 262 compared to the 262 average estimate based on two analysts. Same store sales: 2.5% compared to the 1.1% average estimate based on two analysts. Number of stores - North America segment: 2,371 versus 2,374 estimated by two analysts on average. Change in Same store sales - International: 4.5% versus the two-analyst average estimate of 1.5%. Sales- North America segment: $1.45 billion compared to the $1.43 billion average estimate based on two analysts. The reported number represents a change of +2.2% year over year. Sales- International segment: $80.10 million versus the two-analyst average estimate of $75.90 million. The reported number represents a year-over-year change of +3.8%. Sales- Other segment: $11 million compared to the $13.65 million average estimate based on two analysts. The reported number represents a change of -19.1% year over year. View all Key Company Metrics for Signet here>>>Shares of Signet have returned +9.7% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Signet Jewelers Limited (SIG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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4 days ago
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Signet (SIG) Q1 Earnings and Revenues Beat Estimates
Signet (SIG) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.83%. A quarter ago, it was expected that this jewelry company would post earnings of $6.39 per share when it actually produced earnings of $6.62, delivering a surprise of 3.60%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Signet , which belongs to the Zacks Retail - Jewelry industry, posted revenues of $1.54 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.69%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Signet shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 0.9%. While Signet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Signet: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.14 on $1.48 billion in revenues for the coming quarter and $8.70 on $6.69 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Jewelry is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Stitch Fix (SFIX), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended April 2025. The results are expected to be released on June 10. This online clothing styling service is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Stitch Fix's revenues are expected to be $315.34 million, down 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Signet Jewelers Limited (SIG) : Free Stock Analysis Report Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
