Shares in Signet Jewelers shot up by 27% in early trading today after second quarter results exceeded analyst expectations.
Chief executive Gina Drosos says the ongoing Path to Brilliance plan to reinvigorate the country’s biggest retail jeweler business is beginning to deliver improved results.
“We continue to gain traction on our transformation initiatives and delivered second quarter results that exceeded our same store sales, non-GAAP operating profit, and non-GAAP earnings per share expectations. Our continuing cost control and disciplined inventory management also led to improved adjusted free cash flow generation in both the second quarter as well as year to date. We remain on track to deliver our full year non-GAAP financial guidance,” she said.
“As we enter the competitive holiday season, we believe we are positioned to execute our product strategy by launching additional flagship brands, delivering relevant on-trend new merchandise and offering a highly competitive assortment for value-oriented shoppers. We remain focused on delivering our Path to Brilliance transformation designed to drive sustainable growth and create value for our shareholders over the long-term.”
Same store sales were down 1.5% to $1.4 billion for the 13 weeks to August 3. Kay and Jared sales were down 2.7% and 3.5% respectively, but Zales increased same store sales by 2%.
Collectively, North American sales across all retail brands dipped by 1%. The group’s UK business suffered the biggest fall in sales of 7%, or 8.9% at constant exchange rates.