Signet operates approximately 2,800 stores primarily under banners that include Kay Jewelers, Zales, Jared and Banter by Piercing Pagoda.
Signet Jewelers Ltd. reported first-quarter results that topped Wall Street expectations and affirmed its full-year outlook.
The parent company of Kay Jewelers, Zales and other jewelry banners swung to a net loss of $92.1 million, or $1.89 a share, in the quarter ended April 30, including $2.92 in charges related to the resolution of previously disclosed litigation, $2.19 in non-cash charges related to the buy-out of substantially all of the UK pension plan obligations and $0.07 in charges relating to the fair value adjustment of acquired inventory, compared to net income of $129.8 million, or $2.23 a share, in the year-ago period. Adjusted earnings per share rose to $2.86 from $2.23, beating analysts’ estimates of $2.38.
Total sales rose 8.9% to $1.84 billion, beating estimates of $1.82 billion. Same-store sales were up 2.5%.
"Signet's strong performance this quarter reflects our team's successful execution and agility amidst retail headwinds," said CEO Virginia C. Drosos. "We generated nearly 9% topline growth, including 2.6% organic sales growth, enabled by our healthy inventory position, connected commerce capabilities and data-driven marketing. Customers responded to the breadth and newness within our assortment, particularly higher price point offerings, diamonds and precious metals.
The company affirmed its fiscal 2023 outlook for earnings per share of $12.72 to $13.47 and for revenue of $8.03 billion to $8.25 billion. Separately, the company increased its stock repurchase program by $500 million.
"We are reaffirming our annual guidance and expanding our share repurchase authorization by $500 million, said Joan Hilson. CFO and strategy officer. "While we anticipated and experienced softening within lower price points resulting from heightened inflation and the lack of stimulus, we delivered offsets through tailored assortments, digital capabilities and enhanced services to maintain higher average transaction.”
Signet operates approximately 2,800 stores primarily under the brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Peoples, H. Samuel, Ernest Jones, and the jewelry subscription service, Rocksbox.