Shares of Signet Jewelers (SIG) – Get Signet Jewelers Limited Report rose Thursday after the jewelry retailer reported better-than-expected fiscal-second-quarter earnings and raised its full-year outlook.
Shares of the Hamilton, Bermuda, company at last check rose 3.8% to $83.71.
For the quarter ended July 31, Signet posted net income of $224.6 million, or $3.60 a share, compared with a loss of $81.7 million, or $1.73 a share, in the year-earlier quarter.
Sales more than doubled to $1.78 billion from $888 million.
A survey of analysts by FactSet produced consensus estimates of adjusted earnings of $1.70 a share on revenue of $1.65 billion.
Signet raised its full-year fiscal 2022 outlook for earnings by 4.6% to between $6.80 a share and $6.95 a share.
Signet cautioned that sales in the fourth quarter could dip as it expects consumer spending to shift away from jewelry.
“We are raising our guidance for the year reflecting our business strength and confidence in our growth strategy while remaining cautious regarding the impacts of the macro environment, particularly in the fourth quarter,” Chief Executive Virginia C. Drosos said in a statement.
Signet indicated same-store sales for the fourth quarter will be in the negative low-to-mid-single digits.
“Signet continues to expect a shift of consumer discretionary spending away from the jewelry category toward experience-oriented categories within the second half of the fiscal year,” the company said.