Signet Q2 profit beats estimates, boosts buyback to $700 mln
SIG•Drivers of the quarter
- HIGHER PRICE POINT SALES - Co said high single-digit unit growth at higher price points contributed to comp sales growth
- GROSS MARGIN GAINS - Gross margin rose due to tariff refunds and lower inventory and distribution costs, partly offset by higher gold costs
- COST REDUCTION - SG&A leverage driven by cost reduction from operating model changes and comp sales growth
Analyst coverage and valuation
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
- Wall Street's median 12-month price target for Signet Jewelers Limited is $101.00, about 22.2% above its September 8 closing price of $82.67
- The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Q2 results beat on adjusted EPS
- U.S. jewelry retailer's Q2 revenue was flat yr/yr, meeting analyst expectations
- Adjusted EPS for Q2 beat analyst expectations
- Company raised full-year adjusted EPS guidance and expanded share repurchase authorization to $700 mln
