Signet Jewelers (SIG) Tops Q2 EPS by 1c; Updates FY15 EPS Outlook

Signet Jewelers (NYSE: SIG) reported Q2 EPS of $1.00, $0.01 better than the analyst estimate of $0.99. Revenue for the quarter came in at $1.23 billion versus the consensus estimate of $1.19 billion.

Mike Barnes, Chief Executive Officer, commented: "We delivered a very strong second quarter with increases of 6.3% in organic same store sales and 19.0% in organic EPS. Positive momentum at our UK division continued with our best quarterly same store sales increase in seven years, at 4.4%, and our best operating margin in five years. Same store sales at our Sterling Jewelers division, which includes Kay and Jared, increased 6.7% and delivered strong operating results. I would like to thank all Signet associates globally for their contributions to these results.

We are now even more excited about the acquisition of Zale, having begun the integration process. Our integration teams are successfully sharing best practices with implementation already benefitting both organizations and importantly, moving us forward in a positive way. We believe three-year synergy opportunities will be $150 million to $175 million, up from our previous expectation of $100 million. I would like to thank all Signet associates throughout North America for their contributions to this acquisition integration."

Signet is looking for FY15 EPS of $5.38 - $5.54 following adjustments, which will impact EPS by negative $0.21 to $0.19 per share. Q3 EPS expected to be $0.12 - $0.18. Consensus estimates call for FY15 EPS of $5.52 and Q3 EPS of $0.33.

For earnings history and earnings-related data on Signet Jewelers (SIG) click here.

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