Signet Jewelers stock shoots up after surprising with a profit and revenue growth

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Shares of Signet Jewelers Ltd. surged 8.7% toward a near 2-year high in premarket trading Thursday, after the jewelry retailer reported a surprise fiscal third-quarter profit and revenue that rose above forecasts. For the quarter to Oct. 31, the company swung to net income of about $900,000, or 2 cents a share, from a loss of $43.7 million, or 84 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 11 cents, beating the FactSet consensus for a loss of 66 cents a share. Sales rose 9.5% to $1.30 billion from $1.19 billion, while the FactSet consensus was for a decline to $1.14 billion, as same-store sales growth of 15.1% beat expectations of a 5.1% rise. Same-store sales through Nov. 30 were up about 3% from a year ago, but were down in the low single-digit percentage range over the Thanksgiving weekend, as weak retail store traffic amid the COVID-19 pandemic was partially offset by higher conversion rates, migration to digital sales and higher transaction value. The stock, which is on track to open at the highest price seen since January 2019, has soared 66.8% over the past three months while the S&P 500 has gained 6.2%.
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