02:16 PM EDT, 09/02/2021 (MT Newswires) -- Signet Jewelers (SIG) raised its guidance for fiscal 2022 on Thursday after booking higher-than-expected results in the second quarter on double-digit same-store sales growth. The diamond jewelry retailer anticipates full-year revenue of $6.8 billion to $6.95 billion, up from the prior guidance of $6.5 billion to $6.65 billion, and same-store sales growth of 30% to 33%, versus the prior outlook of 24% to 27%. Analysts polled by Capital IQ are expecting revenue of $6.72 billion and a same-store sales increase of about 32%. The owner of Kay Jewelers and Zales brands also expects third-quarter revenue of $1.26 billion to $1.31 billion and same-store sales in the range of down 3% to up 1%. Wall Street forecasts revenue of $1.22 billion and a same-store sales decline of 5.1%. The company's guidance implied a low- to mid-single-digit decline in same-store sales for the fourth quarter "due to macro uncertainty related to COVID-19 variants and the impact of government support policies on consumer spend," Chief Financial and Strategy Officer Joan Hilson said on a conference call with analysts, according to a Capital IQ transcript. The Street forecasts a 1.2% decline. Signet's adjusted earnings climbed to $3.57 per share in the quarter ended July, swinging from a loss of $1.13 per share a year ago. The Street expected adjusted EPS of $1.69. Sales climbed to $1.79 billion from $888 million. Analysts were looking for $1.65 billion. Same-store sales during the quarter surged 97% year over year, versus the Street consensus of 79%, as e-commerce sales rose about 25% and brick and mortar same-store sales soared 131%. The company said its same-store sales jumped 98% in North America and grew 95% internationally in the second quarter. "We're pleased with this performance but are also mindful that we didn't meaningfully reopen our stores until about 2/3 of the way through the second quarter last year," Chief Executive Virginia Drosos said on the call. The retailer does not expect any significant store closures in the second half of the fiscal year, Drosos said. Signet Jewelers increased its share repurchase authorization to $225 million from $166 million, reflecting the company's strong balance sheet and cash flow and confidence in its longer-term growth opportunities, Hilson said during the call. Price: 84.67, Change: +4.01, Percent Change: +4.97 |