Kay Parent off to Strong Start

Shares of Signet Jewelers (NYSE:SIG) rose in early trading Thursday after the parent company of Kay Jewelers, Zales and Jared reported fiscal third-quarter earnings ahead of analysts’ expectations, prompting it to hike its outlook for the year.

Its stock was recently up more than 2%, having rocketed 240% higher year to date.

Amid ongoing global supply chain issues and a tight labor market, Signet CEO Virginia Drosos said the company secured its holiday merchandise early this year, in anticipation of potential delays, and it expects no significant disruptions. It also has sufficient staff, she said.

Signet reported net income for the three-month period ended Oct. 30 of $92.6 million, or $1.45 per share, up from $9.3 million, or two cents a share, a year earlier.

Excluding one-time items, it earned $1.43 a share, ahead of expectations for 72 cents, which is based on a survey of analysts.

Sales climbed to $1.54 billion from $1.3 billion a year earlier. That topped estimates for $1.43 billion.
Same-store sales, which track revenue at stores open for at least 12 months, rose 18.9%. That was well ahead of the 11.6% growth that analysts polled by FactSet had predicted.

The company now sees fiscal 2022 sales ranging between $7.41 billion and $7.49 billion, up from a prior range of $7.04 billion to $7.19 billion. It sees same-store sales up 41% to 43% year over year, versus prior expectations for a 35% to 38% increase.

SIG shares skidded $3.55, or 3.8%, to 89.43.