Signet Jewelers Q2 Earnings Beat Views

Shares of

jumped over 6 percent in pre-market trading after the company reported better-than-expected earnings for the second quarter. The Hamilton, Bermuda-based company reported quarterly profit of $62.2 million, or $0.78 per share, compared to $58 million, or $0.72 per share, in the year-ago period. Excluding non-recurring items, the company's earnings came in at $1.28 per share. Its revenue rose to $1.41 billion from $1.23 billion. However, analysts were expecting earnings of $1.23 per share on revenue of $1.38 billion. The average estimate among 3 Estimize users was for earnings of $1.16 per share and revenue of $1.47 billion. Same store sales gained 4.2 percent in the latest quarter, versus a 4.8 percent growth in the year-ago quarter. Gross margin expanded to 34.8 percent of sales from 33.4 percent of sales. At August 1, 2015, the company had $159.8 million in cash and cash equivalents, versus $215.0 million as of August 2, 2014. During the quarter, the company repurchased 0.5 million shares at an average cost of $128.03 per share. Mark Light, Chief Executive Officer of Signet Jewelers, said, "Signet delivered a second quarter increase in same store sales of 4.2%, earnings per share of $0.78, and adjusted earnings per share of $1.28, a 19.6% increase. These results exceeded our same store sales and adjusted EPS guidance for the quarter. Results were driven by strong and consistent sales growth across all of our selling channels, as well as solid profitability and disciplined cost management across our organization." For the current quarter, Signet projects earnings of $0.36 to $0.40 per share and same-store sales growth of 3 percent to 4 percent. Signet shares gained 6.36 percent to $129.00 in pre-market trading.