Signet Jewelers has reported a decline in revenue for the third quarter, although the company exceeded earnings expectations due to effective cost-saving measures. The company's revenue fell by 12.1% to $1.4 billion, in line with market predictions. Same-store sales also experienced a decrease of 11.8%.
Adjusted earnings per share were reported at 24 cents, surpassing the consensus estimate of 18 cents per share. Joan Hilson, the Chief Financial, Strategy, and Services Officer, stated that cost-saving initiatives are progressing as planned, and an ample inventory allows for fresh product offerings during the upcoming holiday season.
Furthermore, Signet Jewelers slightly adjusted its fiscal 2024 guidance to account for the sale of 15 luxury stores in the U.K. The revised sales forecast is expected to range between $7.07 billion and $7.27 billion, with earnings per share projected to be between $9.55 and $10.18. Previously, the company had anticipated sales to range between $7.10 billion and $7.30 billion, with earnings per share between $9.55 and $10.14. Analysts predict that earnings will reach $9.81 per share and sales will amount to $7.2 billion.
The recently sold stores were part of the Ernest Jones banner, and Signet Jewelers may also sell up to six additional retail locations by the end of the fourth quarter. As a result of this sale, the company anticipates a pretax gain of approximately $12 million, which will be reflected in its fourth-quarter financial results.
The company has provided its sales forecast for the fourth quarter, estimating a range of $2.40 billion to $2.60 billion. CEO Virginia Drosos noted that trends during the Black Friday weekend, including an improvement in engagement trends, align with expectations for the fourth quarter.
Signet Jewelers' stock saw a slight increase of 0.3% to $85.05 in premarket trading. The share price has experienced a 25% rise this year, outperforming the 18% increase of the S&P 500.
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