The company had Year Ago Sales of 1.42 Billion.
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Comparable sales at Sterling Jewelers, the company’s biggest brand by revenue, fell 3.1 percent as shoppers moved away from buying higher priced jewelry. Stock likely to trade down in high-single-digit range given low-double-digit EPS cut and near-term strength into print; we did expect weak comp store sales trends.
While looking at the Stock’s Performance, Signet Jewelers Limited now shows a Weekly Performance of 2.77%, where Monthly Performance is 7.21%, Quarterly performance is -9.94%, 6 Months performance is -2.53% and yearly performance percentage is -20.01%.
Before the opening bell, the Bermuda-based jewelry retailer reported adjusted earnings of $1.14 per share, while analysts were expecting earnings of $1.45 per share. “We are disappointed by our Q2 results and market conditions have been challenging particularly in the energy-dependent regions”.
Separately, the company said affiliates of private equity firm Leonard Green & Partners LP will invest $625 million in the company in the form of convertible preferred shares.
Overall sales for the second quarter were $1.37 billion, down $37.2 million, or 2.6 percent. Excluding integration and purchase accounting costs, per-share profit rose to $1.14. Q Adj. EPS of $0.84 vs. Cowen’s $0.73E & Street’s $0.72E: EPS difference vs. Cowen’s estimate driven largely by less decline in revenues (+4c, $932mm or -5.9% y/y vs. Cowen’s $917.6mm or -7.4% y/y), better gross margin (+3c, 61.9% or +210bps vs. Cowen’s 61.4% or +150bps), and favorable SG&A expenses (+4c, 43.2% of sales vs. Cowen’s 44.7% of sales est.). The second-quarter from the previous year reportedly had $0.86 in EPS on revenue of $990.5 million.
The company’s strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. The consensus EPS estimates are $0.50 and $8.22 for the third quarter and fiscal year, respectively.
Signet: 2Q EPS Miss; Management Guides to Lower 3Q & Full-Year Outlook.
According to Thomson Reuters, Wall Street analysts expected the company to report adjusted earnings per share of $1.45. Analysts have anticipated $3.63 a share. During the same quarter in the prior year, the business posted $1.28 earnings per share. A lower share count helped per-share profit.
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Shares climbed 6% to 72.99.
