Signet Jewelers Q4 Profit Tops Estimates

reported stronger-than-expected earnings for the fourth quarter, but the company's revenue missed analysts' estimates. The Hamilton, Bermuda-based company posted a quarterly profit of $228 million, or $2.84 per share, versus a year-ago profit of $175.2 million, or $2.18 per share. Excluding items, the company earned $3.06 per share. Its sales climbed 45.5% to $2.28 billion. However, analysts were expecting earnings of $3.04 per share on revenue of $2.32 billion. eCommerce sales for the quarter climbed to $149.6 million, versus $79.0 million in the year-ago quarter. Its same-store sales gained 4.2% for the quarter. Same store sales for the Kay division surged 4.6%, while Jared division same-store-sales gained 2.6%. Same store sales for the Zale division rose 3.7%. Gross margin came in at $912.1 million or 40.1% of sales, versus $648.8 million or 41.5% of sales. The company raised its quarterly dividend by 22% to $0.22 per share. For the year, the company repurchased 288,393 shares at an average cost of $103.37 per share. At January 31, 2015, cash and cash equivalents were $193.6 million, versus $247.6 million as of February 1, 2014. Mark Light, Chief Executive Officer of Signet, said, "We had an outstanding finish to another strong year of growth for Signet. The disciplined execution of our focused strategies drove broad-based success across all of our divisions and store brands." For the current quarter, Signet projects adjusted earnings of $1.57 to $1.62 per share, versus analysts' estimates of $1.61 per share. The company also projects same-store sales to rise 3% to 4%. Signet shares rose 0.88% to $128.45 in pre-market trading.