Signet Jewelers Q3 Profit Misses Estimates

reported weaker-than-expected earnings for the third quarter on Tuesday. The Hamilton, Bermuda-based company reported quarterly net income of $15 million, or $0.19 per share, versus a year-ago loss of $1.3 million, or $0.02 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings came in at $0.33 per share. Its total sales rose 3.3 percent year-over-year to $1.22 billion. However, analysts were estimating a profit of $0.39 per share on revenue of $1.23 billion. Its same store sales climbed 3.3 percent in the latest quarter, versus a 4.2 percent growth in the year-ago quarter. The average estimate among 11 Estimize users was for earnings of $0.41 per share and revenue of $1.25 billion. Gross margin expanded to $367.7 million or 30.2 percent of sales, from $345.9 million or 29.4 percent of sales, in the year-ago quarter. Operating income surged to $33.6 million from $10.7 million. At October 31, 2015, the company had $77.2 million in cash and cash equivalents, versus $87.6 million as of November 1, 2014. During the third quarter, the company repurchased 239,370 shares at an average cost of $125.33 per share. Mark Light, Chief Executive Officer of Signet Jewelers said, "We are currently experiencing an encouraging start to November particularly at Jared and Zales. The implementation of store operations initiatives in the third quarter combined with significant investment in our recently launched innovative merchandising and marketing programs have positioned Signet for a strong fourth quarter." Signet Jewelers shares gained 2.28 percent to close at $140.74 yesterday.