Signet Jewelers (SIG) Tops Q2 EPS by 29c; Reiterates Outlook
Signet Jewelers (NYSE: SIG) reported Q2 EPS of $1.33, $0.29 better than the analyst estimate of $1.04. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.33 billion.
- Positive second quarter performance with same store sales ("SSS") up 1.4%, driven by eCommerce platform improvements, Mother's Day performance and timing, effective marketing and bridal promotion initiatives.
- Diluted earnings per share (“EPS”) of $1.33, reflecting disciplined cost management and early benefits from strategic decision to outsource the credit portfolio.
- Repurchased 12% of Signet equity outstanding in an accelerated open market share repurchase.
- Announced agreement to acquire R2Net, owner of JamesAllen.com, to rapidly enhance digital capabilities and further accelerate OmniChannel strategy. See separate release.
- Reiterated Fiscal 2018 SSS guidance; updated Fiscal 2018 EPS guidance to include the early benefits from outsourcing of credit, partially offset by costs associated with CEO separation and R2Net acquisition.
Virginia C. Drosos, Chief Executive Officer of Signet Jewelers, said, "Our encouraging second quarter performance reflects Signet's fundamental competitive strengths and the progress we are making on our strategic priorities. We delivered positive same store sales performance and managed our cost base to deliver operating margin expansion in a highly promotional environment. Further, today we announced the acquisition of JamesAllen.com to add a leading, fast-growing online jeweler to our portfolio. The acquisition will enhance our innovation and digital capabilities with R2Net’s technology to create a best-in-class OmniChannel shopping experience across our banners. Based on this positive momentum, we are increasingly confident that Signet is well-positioned for the upcoming holiday selling season and on track to achieve our financial targets for the year.
“I am stepping into the CEO role at an exciting time for Signet. Together with my leadership team, I am acutely focused on deepening our understanding of consumers, reinventing our OmniChannel shopping experience, and elevating our brand messaging and product assortment.
“I thank our Team Members for their dedication and hard work. I look forward to our journey together to create an agile, innovative, and efficient Signet that is well-positioned for sustainable, profitable growth and value creation.”
GUIDANCE:
Signet Jewelers sees FY2018 EPS of $7.00-$7.40, in-line with its prior view.
For earnings history and earnings-related data on Signet Jewelers (SIG) click here.