Signet Jewelers Ltd (SIG, SIG.L) Thursday reported a higher first-quarter profit, as revenues climbed about 10 percent driven by the US division. Earnings per share beat analysts' expectations, while revenues missed view.
Mike Barnes, chief executive officer of the company stated, "Our US division led our performance, generating same store sales increases of 10.2% at Kay and 6.0% at Jared....We believe this leaves us well-positioned to achieve our financial objectives for this year." For the first quarter, the specialty retail jeweler in the U.S., and the UK, posted net income of $91.8 million or $1.13 per share, higher than $82.5 million or $0.96 per share in the prior year. Income per share included a loss of $0.03 from Ultra operations, the company said.
On average, 12 analysts polled by Thomson Reuters estimated earnings per share of $1.11 for the period. Analyst estimates typically exclude one-time items.
Quarterly revenues climbed 10.4 percent to $993.6 million from $900 million last year, but came below analysts' estimate of $1.02 billion.
Same-store-sales increased 6.4 percent compared with a 1.2 percent increase during the same period last year. Kay same store sales were up 10.2 percent.
In the US division, total sales increased 14.3 percent and same store sales rose 8.1 percent, compared to an increase of 1.2 percent a year ago. The company attributed the sales increase in US to broad-based strength across all merchandise categories in Kay and Jared, as well as the Ultra acquisition.
In the UK division, total sales were down 9.1 percent, with same store sales decreasing 2.3 percent, compared to an increase of 1.2 percent in the previous year.
The company said it continues to expect the integration of Ultra store systems and conversion to Kay outlets to occur as planned in the second quarter.
Looking ahead to the second quarter, the firm sees earnings per share to be in the range of $0.79 to $0.84, including a $0.06 per share negative impact from the Ultra acquisition. Excluding Ultra, earnings per share is expected to be in the range of $0.85 to $0.90.
Same-store-sales are to increase in the low-to-mid single-digit range. Analysts are currently looking for earnings per share of $0.87 for the quarter.
Signet also repurchased $50.1 million of its shares during the first quarter.
On the NYSE, Signet Jewelers stock is currently trading at $70.38, down 1.75 percent.
In London, the shares are trading at 4,647 pence, down 140 pence or 2.92 percent, on a volume of 15,924 shares.
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