Signet’s stock soars off 10-year low after profit and sales beat, upbeat outlook

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Shares of Signet Jewelers Ltd. soared 10.4% in premarket trading Thursday to bounce sharply off the previous session’s 10-year low, after the diamond jewelry retailer reported fiscal second-quarter earnings that beat expectations, and raised its full-year outlook. The net loss for the quarter to Aug. 4 widened to $44.3 million, or 86 cents a share, from $31.2 million, or 56 cents a share, a year ago. Excluding non-recurring items, such as a 91-cents-per-share goodwill impairment charge, adjusted EPS came to 51 cents, well above the FactSet consensus of 24 cents. Sales fell 3.9% to $1.36 billion, but beat the FactSet consensus of $1.34 billion, as same-store sales fell 1.5% but topped expectations of a 3.1% decline. E-commerce sales increased 4.4%. For fiscal 2020, the company raised its adjusted EPS guidance range to $2.91 to $3.23 from $2.88 to $3.17 and affirmed its same-store sales outlook of down 2.5% to down 1.5%. The stock, which closed Wednesday at the lowest price since March 2009, has tumbled 65.3% year to date through Wednesday, while the SPDR S&P Retail ETF has slipped 3.4% and the S&P 500 has gained 17.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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