Signet stock jumps after swinging to big profit beat, as same-store sales more than doubled

Shares of Signet Jewelers Ltd. jumped 5.6% in premarket trading Thursday, after the diamond jewelry retailer reported a big profit beat as revenue nearly doubled and same-store sales more than doubled. For the quarter to May 1, the company swung to net income of $168.7 million, or $2.23 a share, from a loss of $299.6 million, or $3.96 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.23 beat the FactSet consensus of $1.27. Revenue rose 98.2% from a year ago, and grew 18.0% from two years ago (pre-pandemic) to $1.69 billion, above the FactSet consensus of $1.62 billion. Same-store sales rose 106.5% from last year, beating expectations of 93.0% growth, but slipped 1.3% from two years ago. In North America, same-store sales rose 117.2%, with brick-and-mortar sales rising 118.4% and ecommerce sales growing 113.4%, as the average transaction value increased 15.2% and the number of transactions grew 90%. Looking ahead, the company raised its guidance ranges for fiscal 2022 revenue to $6.50 billion to $6.65 billion from $6.00 billion to $6.14 billion and for same-store sales growth to 24% to 27% from 17% to 20%. The stock has soared 123.8% year to date through Wednesday, while the S&P 500 has gained 12.3%.

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