Signet Posts Q1 Profit, Beats Estimates; Cuts FY24 View Below Market; Stock Down In Premarket

(RTTNews) – Signet Jewelers Limited (SIG) reported Thursday first-quarter net income attributable to common shareholders of $88.8 million, compared to last year’s loss of $92.1 million.

Earnings per share were $1.79, compared to a loss of $1.89 per share in the prior year.

Adjusted earnings were $1.78, compared to $2.86 a year ago.

On average, five analysts polled by Thomson Reuters expected earnings of $1.49 per share for the quarter. Analysts’ estimates typically exclude special items.

Sales of $1.67 billion were down 9.3 percent from prior year’s $1.84 billion. The Street was looking for sales of $1.65 billion for the quarter.

Sales declined 8.7 percent on a constant currency basis. Same store sales were down 13.9 percent.

Further, Signet’s Board of Directors has declared a quarterly cash dividend of $0.23 per share for the second quarter, payable August 25 to shareholders of record on July 28.

Looking ahead for the second quarter, Signet projects operating income of $85 million to $100 million and total sales of $1.53 billion to $1.58 billion.

Analysts expect sales of $1.75 billion for the second quarter.

For fiscal 2024, the company now projects earnings per share of $9.49 to $10.09, operating income of $635 million to $675 million and total sales of $7.10 billion to $7.30 billion.

The company previously expected earnings per share of $11.07 to $11.59, operating income of $765 million to $800 million and total sales of $7.67 billion to $7.84 billion.

Analysts expect earnings of $11.11 per share on sales of $7.73 billion for the year.

Annual US Jewelry industry revenues are now expected to be down more than the company’s initial expectations of mid-single digits, driven by the impacts of macroeconomic factors on consumer spending and continued shift of consumer discretionary spend.

In pre-market activity on the NYSE, the shares were losing around 10.1 percent to trade at $62.50.

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