The company’s top line is expected to be benefited by an increase in comparable sales, the addition of James Allen, foreign exchange benefits, and higher e-commerce sales growth across all segments. The product assortment revamps and associated clearance sales could be the driving factor in same-store sales.
The strength in bridal and fashion sales is likely to drive same-store sales growth in North America while international same-store sales would be hurt by a decline in diamond jewelry and fashion watches.
For the second quarter, the company reported a narrower loss driven by a 1.5% rise in sales. Same-store sales improved 1.7% and e-commerce sales, including James Allen, climbed 82.8%. The company incurred a loss on the sale of non-prime receivables and a charge related to the Path to Brilliance transformation plan and associated tax benefits.
For the third quarter, the company has expected total sales in the range of $1.15 billion to $1.17 billion and same-store sales in the range of down 1.5% to flat. The loss is anticipated to be in the range of $0.70 to $0.81 per share on a GAAP basis and $1.08 to $1.23 per share on an adjusted basis.
For the full year 2019, Signet has predicted total sales in the range of $6.2 billion to $6.3 billion and same-store sales in the range of down 1.5% to flat. The loss was projected to be in the range of $7.09 to $7.47 per share and adjusted earnings were anticipated to be $4.05 to $4.40 per share.
Shares of Signet ended Tuesday’s regular session down 5.67% at $50.03 on the NYSE. The stock has fallen over 11% in the year so far and over 20% in the past three months.