Signage for Kay Jewelers, a subsidiary of Signet Jewelers Ltd., is displayed on the exterior of a store in New York.
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Shares of Signet Jewelers rose in premarket trading Thursday after the parent company of Kay Jewelers, Zales and Jared reported fiscal third-quarter earnings ahead of analysts’ expectations, prompting it to hike its outlook for the year.
Its stock was recently up around 2%, having rocketed 240% higher year to date.
Amid ongoing global supply chain issues and a tight labor market, Signet CEO Virginia Drosos said the company secured its holiday merchandise early this year, in anticipation of potential delays, and it expects no significant disruptions. It also has sufficient staff, she said.
Signet reported net income for the three-month period ended Oct. 30 of $92.6 million, or $1.45 per share, up from $9.3 million, or 2 cents a share, a year earlier.
Excluding one-time items, it earned $1.43 a share, ahead of expectations for 72 cents, which is based on a survey of analysts by Refinitiv.
Sales climbed to $1.54 billion from $1.3 billion a year earlier. That topped estimates for $1.43 billion.
The company now sees fiscal 2022 sales ranging between $7.41 billion and $7.49 billion, up from a prior range of $7.04 billion to $7.19 billion. It sees same-store sales up 41% to 43% year over year, versus prior expectations for a 35% to 38% increase.
Chief Financial Officer Joan Hilson said in the press release that the company remains cautious, however, about its outlook, due to the new coronavirus variant, omicron, as well as potential shifts in consumer spending patterns.
The entire jewelry industry has been experiencing a lift in sales as younger shoppers buy into the category for the first time — many of them planning proposals or preparing for a wave of weddings next year that had been postponed due to Covid. Jewelry can also be a sentimental gift, which is something many consumers have been looking to gift to a loved one during the pandemic.
Signet is on track to complete its acquisition of the off-mall jewelry chain Diamonds Direct in the fourth quarter.
Find the full earnings press release from Signet here.