Signet Jewelers Limited (NYSE: SIG) took off like a Saturn rocket after reporting second-quarter figures Thursday.
The Bermuda-based jeweler revealed revenues of $1.42 billion, compared to a figure of $1.399 billion for the prior-year quarter. In the second quarter, Signet's GAAP operating income/(loss) was $(58.1) million or (4.1)% of sales, compared to $135.6 million, or 9.7% of sales in the prior year second quarter.
Non-GAAP operating income was $48.6 million, or 3.4% of sales, compared to $135.6 million, or 9.7% of sales in prior year second quarter. Non-GAAP operating income excluded a $23.9 million loss on sale of non-prime receivables and $82.8 million in restructuring charges related to the Path to Brilliance transformation plan.
In Fiscal 2019, the Company continues to expect net costs savings of $85 million - $100 million, with further incremental net cost savings of $115 million - $125 million by the end of the three-year program. The majority of the Fiscal 2019 savings are expected to be realized in the second half of the fiscal year with approximately one third achieved year to date.
In Fiscal 2019, the Company's preliminary estimates for pre-tax charges related to cost reduction activities and inventory charges ranges from $125 million - $135 million, of which $40 million - $45 million are expected to be cash charges.
Virginia C. Drosos, Chief Executive Officer, commented, “During the second quarter, we continued to see stabilization in same store sales, and we remain confident that we have the right strategies in place to continue to drive operational improvement over the long-term.”
Shares shot higher $14.74, or nearly 27%, to $69.39
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