- Telsey Advisory Group analyst Dana Telsey has reiterated a Market Perform rating on the shares of Signet Jewelers Ltd SIG with a price target of $72.00.
- The company reported Q2 earnings above Street estimates.
- Telsey said the Q2 margin decline came as a result of occupancy deleverage on lower sales and the strength of the lower-margin Diamonds Direct bridal business.
- Also, technology investments and COVID-related tax abatements at the U.K. business last year weighed on the year-over-year margin performance for the quarter.
- The analyst notes Signet's Q3 operating income outlook is below the prior consensus, meaning that the annual outlook is more weighted to Q4.
- The company's outlook, Telsey thinks, has added an incremental element of risk, especially as visibility of the macro health of the mass consumer heading into the holiday season remains opaque.
- Price Action: SIG shares are trading lower by 11.79% at $57.66 on the last check Thursday.
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