Signet Jewelers Stock Gains On Q2 Beat, Raised FY22 Outlook

Signet Jewelers Ltd SIG reported second-quarter FY22 sales growth of 101.4% year-on-year, to $1.79 billion, beating the analyst consensus of $1.63 billion.
Same-store sales increased 97.4% versus Q2 FY21 and 38.1% versus Q2 FY20. Brick and mortar same-store sales rose 130.8% versus Q2 FY21 and 27.5% to Q2 FY20.
North American segment revenue rose 100% Y/Y, and international segment increased 114.3%.
E-commerce sales climbed 24.5% Y/Y and 114.3% against Q2 FY20.
Gross profit rose 219.9% Y/Y to $717.6 million. The gross margin was 40.1%, up 1,480 bps versus the prior year and up 650 bps versus Q2 FY20.
The operating margin was 12.6%, and operating income for the quarter was $225.4 million.
The company held $1.6 billion in cash and equivalents as of July 31, 2021.
Cash flow from operating activities year-to-date totaled $458.5 million with a free cash flow of $426.3 million.
Non-GAAP EPS of $3.57 beat the analyst consensus of $1.62.
Outlook: Signet sees Q3 sales of $1.26 billion - $1.31 billion versus the consensus of $1.22 billion.
The company expects Q3 Non-GAAP adjusted operating income of $10 million - $25 million.
Signet raised the FY22 sales outlook to $6.80 billion - $6.95 billion (prior $6.50 billion - $6.65 billion) versus the consensus of $6.71 billion.
The company raised FY22 Non-GAAP operating income outlook to $618 million - $673 million.
Price Action: SIG shares are trading higher by 8.18% at $87.26 in premarket on the last check Thursday.

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