Signet Jewelers Stock Gains On Bumper Q1 Sales, Raised Guidance, Dividend Reinstate

Signet Jewelers Ltd SIG reported first-quarter FY22 net revenue growth of 98.22% year-on-year to $1.7 billion, beating the analyst consensus of $1.62 billion.
Same-store sales grew 106.5% Y/Y.
North America segment raked in the major chunk of sales, amounting to $1.62 billion in Q1. eCommerce sales increased 110.3% Y/Y to $346.3 million.
International same-store sales decreased 12.2%, reflecting the mandated closure of U.K. stores for 10 of the 13 weeks in Q1.
EPS increased 240.2% Y/Y to $2.23, beating the analyst consensus estimate of $1.27.
Signet generated $161.1 million in operating cash flow and held cash and equivalents of $1.2 billion.
Ending inventory of $2.0 billion reduced of more than $370 million Y/Y.
Dividend: Signet has reinstated the dividend and declared a cash dividend of $0.18 per share for Q2. It is payable on August 27, 2021, to shareholders of record on July 30, 2021, with an ex-dividend date of July 29, 2021.
Guidance: Signet expects a Q2 revenue outlook of $1.60- $1.65 billion, above the consensus estimate of $1.33 billion, and raises FY22 sales guidance to $6.5-$6.65 billion.
Price action: SIG shares are trading higher by 6.7% at $65.14 in premarket trading on the last check Thursday.

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