Categories Earnings, Retail

Signet Jewelers stock dips on weak Q3 results

Signet Jewelers (SIG) reported a wider loss in the third quarter due to the unfavorable impact related to the outsourcing of credit, unfavorable banner mix, higher advertising, higher incentive compensation expense, and restructuring charges. The diamond jewelry retailer’s bottom line missed analysts’ expectations.

Net loss widened to $38.1 million or $0.74 per share from $12.1 million or $0.20 per share in the previous year quarter. The adjusted loss widened to $1.06 per share from $0.20 per share a year ago.

Total sales rose 3% to $1.19 billion. On a constant currency basis, sales increased 3.3%. The increase in sales was positively impacted by same-store sales growth, new revenue recognition accounting standards, and the addition of James Allen.

Signet Jewelers third quarter 2019 Earnings Infographic
Signet Jewelers Q3 2019 Earnings Infographics

Total same-store sales performance was 1.6% versus the prior year quarter, inclusive of a 75 bps unfavorable impact due to planned shifts in the timing of promotions at Zales and Peoples.

eCommerce sales including James Allen soared 54.9% on a reported basis. James Allen sales increased 13.6% and had a positive 50 bps impact on total company same-store sales. eCommerce sales increased across all segments and accounted for 10.5% of sales, up from 7.0% of total sales last year.

In March 2018, the company announced a three-year Signet Path to Brilliance transformation plan to reposition the company to be a share-gaining, OmniChannel jewelry category leader. The company still expects its transformation plan to deliver $200 million to $225 million of net cost savings over the next three fiscal years. In fiscal 2019, the company expects net costs savings of $85 million to $100 million, with further incremental net cost savings of $115 million to $125 million by the end of the three-year program.

Signet shares soar after Q2 results dazzle

For the full year 2019, the company raised its total sales outlook to the range of $6.26 billion to $6.31 billion from the previous range of $6.2 billion to $6.3 billion. Same-store sales estimates are lifted to the range of flat to up 1% from the prior range of down 1.5% to flat. Adjusted EPS guidance was narrowed to the range of $4.15 to $4.40 from the previous forecast of $4.05 to $4.40.

For the fourth quarter, the company expects total sales in the range of $2.17 billion to $2.22 billion and same-store sales in the range of down 1.5% to up 1%. GAAP earnings are anticipated to be $3.02 to $3.33 per share and adjusted earnings are predicted to be $4.35 to $4.59 per share.

Shares of Signet opened lower on Thursday and is trading down 21.73% in the early trade. The stock has fallen over 31% in the year so far and over 23% in the past year.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat

Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the

Nutanix (NTNX) Earnings: 2Q21 Key Numbers

Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3

Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023

Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer

Add Comment
Viewing Highlight