Signet Jewelers Ltd. announced first quarter results that exceeded Wall Street expectations and confirmed its outlook for the full year.
The parent company of Kay Jewelers, Zales and other jewelry banners posted a net loss of $92.1 million, or $1.89 per share, in the quarter ended April 30. including $2.92 of charges related to the resolution of previously disclosed litigation, $2.19 of non-cash charges related to the redemption of substantially all of the UK pension plan bonds and $0.07 of charges related to the adjustment of the fair value of inventories acquired, compared to net income of $129.8 million, or $2.23 per share, for the same period last year. Adjusted earnings per share rose from $2.23 to $2.86, beating analysts’ estimates of $2.38.
Total sales increased 8.9% to $1.84 billion, beating estimates of $1.82 billion. Same store sales increased 2.5%.
“Signet’s strong performance this quarter reflects our team’s successful execution and agility in the face of retail headwinds,” said CEO Virginia C. Drosos. “We delivered revenue growth of nearly 9%, including organic sales growth of 2.6%, driven by our healthy inventory position, connected commerce capabilities and data-driven marketing. Customers responded to the breadth and novelty of our assortment, especially the higher priced offerings, diamonds and precious metals.
The company confirmed its outlook for fiscal 2023 of earnings per share of $12.72 to $13.47 and revenue of $8.03 billion to $8.25 billion. In addition, the company increased its share buyback program by $500 million.
“We are reaffirming our annual guidance and extending our share buyback authorization by $500 million,” Joan Hilson said. Chief Financial Officer and Head of Strategy. through tailored assortments, digital capabilities and enhanced services to maintain a higher average transaction.
Signet operates approximately 2,800 stores primarily under the Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Peoples, H. Samuel, Ernest Jones, and the jewelry subscription service, Rocksbox.