By Sam Boughedda
Shares of Signet Jewelers (NYSE:SIG) have jumped 10% Thursday after the company reported strong earnings, easily beating analyst consensus estimates.
The diamond jewelry retailer posted earnings of $2.86 per share on revenue of $1.8 billion. Earnings topped estimates by $0.48, while revenue was in line with forecasts.
Revenue rose $149.5 million or 8.9% compared to the previous year, while same-store sales rose 2.5%.
The company said it anticipated and experienced softening within lower price points resulting from heightened inflation and the lack of stimulus.
"Signet's strong performance this quarter reflects our team's successful execution and agility amidst retail headwinds," said Virginia C. Drosos, Chief Executive Officer.
"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."
Signet reaffirmed its fiscal 2023 annual outlook and expanded its share repurchase authorization by $500 million.
Revenue for fiscal 2023 is expected to be between $8.03 billion to $8.25 billion, and adjusted earnings per share are seen between $12.72 to $13.47.
For the second quarter, Signet expects $1.79 billion to $1.82 billion in revenue.