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Signet Jewelers Raises Full-Year Outlook After First-Quarter Earnings Beat Expectations

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Signet Jewelers Raises Full-Year Outlook After First-Quarter Earnings Beat Expectations

Signet Jewelers (SIG) raised its full-year guidance on Tuesday after posting fiscal first-quarter results that topped Wall Street expectations, citing stronger holiday performance and early second-quarter momentum.

The owner of Kay Jewelers now expects fiscal 2027 adjusted EPS of $9.20 to $11 on revenue of $6.7 billion to $6.9 billion, up from its prior forecast of $8.80 to $10.74 on revenue of $6.6 billion to $6.9 billion. Analysts polled by FactSet project EPS of $10.45 on revenue of $6.84 billion.

"We are raising the midpoint for the year to reflect (first-quarter) performance and (second-quarter) momentum," Chief Operating and Financial Officer Joan Hilson said on a conference call, according to a FactSet transcript.

Signet shares rose 4.2% in Tuesday trading and are up 32% in the past 12 months.

In the quarter ended May 2, adjusted EPS rose to $1.56 from $1.18 a year earlier, beating the $1.38 consensus. Sales edged up to $1.55 billion from $1.54 billion, in line with estimates, while same-store sales increased 1.8%.

All categories posted comparable-sales growth, and the company delivered "positive performances" for both Valentine's Day and Mother's Day, CEO J.K. Symancyk said in a statement.

North America revenue rose 0.9% to $1.46 billion, with comparable sales up 1.6%. International revenue increased 9.2% to $87.5 million, and same-store sales climbed 5.6%.

For the fiscal second quarter, Signet issued a softer-than-expected sales outlook of $1.5 billion to $1.53 billion, compared with analysts' $1.54 billion estimate. Same-store sales are projected to rise 0.5% to 2.5%.

Hilson said merchandise margins will be "somewhat lower" due to higher gold costs, though operating-expense and occupancy leverage should offset some of the pressure.

The company now expects full-year same-store sales to range from a 0.75% decline to a 2.5% increase, narrowing the downside from its prior forecast of a 1.25% decline to a 2.5% increase.

Price: $88.35, Change: $+3.53, Percent Change: +4.16%

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