Signet Jewelers Ltd. (NYSE: SIG) rose Thursday as the company posted stronger-than-expected Q2 profit and cast its eyes toward a buying target.
The firm based out of Hamilton, Bermuda said Thursday put same store sales (SSS) up 1.4%, driven by eCommerce platform improvements, Mother's Day performance and timing, effective marketing and bridal promotion initiatives.
Diluted earnings per share were $1.33, reflecting disciplined cost management and early benefits from strategic decision to outsource the credit portfolio.
Signet also disclosed the agreement to acquire R2Net, owner of JamesAllen.com, to rapidly enhance digital capabilities and further accelerate OmniChannel strategy.
A release out Thursday said Signet reiterated its Fiscal 2018 SSS guidance and provided an update to its EPS guidance to reflect anticipated benefits of the strategic outsourcing of its credit portfolio, partially offset by chief executive officer separation costs and anticipated transaction costs associated with the announcement of the acquisition of R2Net.
In the second quarter, Signet accelerated the repurchases of $400 million of shares associated with the credit transaction proceeds expected in October.
CEO Virginia Dross said “our encouraging second-quarter performance reflects Signet's fundamental competitive strengths and the progress we are making on our strategic priorities. We delivered positive same store sales performance and managed our cost base to deliver operating margin expansion in a highly promotional environment.”
Shares in the company galloped mid-morning Thursday by $11.78, or 22.7%, to $63.67, operating within a 52-week trading range of $46.09 to $101.46.
