Signet Jewelers (NYSE:SIG) shares rose about 9% in premarket trading on Wednesday after the jewellery retailer reported second-quarter adjusted earnings above analyst expectations and raised its full-year profit guidance.
Adjusted earnings per share were $2.19, compared with the analyst consensus estimate of $1.72. Revenue totalled $1.5 billion, broadly in line with the $1.53 billion consensus forecast.
Same-store sales increased 2.2% during the quarter, while merchandise average unit retail rose approximately 6%. Signet reported growth across both its bridal and fashion categories.
Adjusted operating margin increased to 7% from 5.6% in the prior-year period.
“We delivered another quarter of comp sales growth with a positive comp performance in all fine jewelry brands. This includes high single-digit unit growth at higher price points,” said J.K. Symancyk, CEO of Signet Jewelers.
“Building on this momentum, we are accelerating our key brand initiatives, including merchandise refreshes, enhancements to both the online and in-store customer experience, and a more modern and emotionally engaging marketing approach. By leveraging the full strength of our diversified portfolio, we are entering the back half of the year well-positioned to deliver compelling value throughout the holiday season for customers across a broad range of income levels.”
Signet raises fiscal 2027 earnings outlook
Signet now expects fiscal 2027 adjusted earnings per share of between $10.45 and $12.15, compared with its previous guidance range of $9.20 to $11.00. The analyst consensus estimate was $10.82.
The company maintained its full-year sales forecast of $6.7 billion to $6.9 billion, compared with a consensus estimate of $6.84 billion.
Same-store sales are now expected to range from flat to growth of 2.5%. Signet’s previous guidance ranged from a decline of 0.75% to growth of 2.5%.
Adjusted operating income guidance was increased to between $535 million and $605 million from the previous range of $480 million to $560 million.
The company also raised its adjusted EBITDA forecast to $730 million-$800 million from $665 million-$745 million.
Third-quarter sales forecast at $1.37 billion-$1.41 billion
For the third quarter, Signet expects total sales of between $1.37 billion and $1.41 billion.
Same-store sales are forecast to range from a 1% decline to growth of 2%.
The company expects third-quarter adjusted operating income of $31 million-$48 million and adjusted EBITDA of $82 million-$100 million.
Signet Jewelers stock price
