- Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Signet Jewelers Ltd SIG with a price target of $85.
- Signet will report first quarter results on Thursday, June 8, before the market opens.
- The analyst expects 1QF24 EPS of $1.45 versus. the consensus estimates of $1.49 and sales to decrease 11.3% Y/Y to $1.631 billion, as compared to the consensus forecast of $1.650 billion.
- Management has commented that given the challenging macro backdrop and ongoing inflationary pressures, SIG does not expect to see a rebound in the lower price point consumer, said the analyst.
- Also, the company’s digitally native banners (James Allen and Blue Nile) are anticipated to pressure margins until accretion is achieved in 3QF24, noted the analyst.
- While SIG did not provide a nearer-term guidance update at its investor day, the analyst is encouraged by management detailing the strategies that have helped stabilize SIG and weather the challenging macro landscape.
- The analyst remains cautious near-term given ongoing uncertainties in the consumer spending environment as macro headwinds persist in 2023, with a slow wedding market providing an extra hurdle.
- Also, the annual outlook appears more back-end loaded than the market had previously anticipated, which carries a bit more risk, in the analyst’s view, as the company’s Q1 sales and operating income guidance came in weaker than expected.
- Price Action: SIG shares are trading lower by 2.58% at $63.75 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Posted In:
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
