Jewelers like Signet (NYSE:SIG) might seem like a bad play in an era of consumers more closely watching their wallets. Buying shiny rocks for several thousand dollars a pop, therefore, might be considered a mite superfluous. But Signet demonstrated its staying power, and investors sent it higher in Thursday afternoon trading.
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Signet posted $5.52 per share in earnings, beating expectations of $5.42. Interestingly, Signet brought all this in on a down year, as it posted revenue of $2.66 billion. While that was down 5.3% year-over-year, it still surpassed analysts’ estimates calling for $2.65 billion. Same-store sales slipped by 9.1% year-over-year, but it was up 16.4% against 2020 when COVID-19 restrictions kept people out of virtually any store.
CEO Virginia Drosos noted that Signet did indeed deliver on its prime directives. It hiked market share, it landed a non-GAAP operating margin measurable in double-digit figures, and it turned its cash toward shareholder returns. Drosos also believes that Signet can continue to deliver quality results despite the increased “volatility” seen so far. Meanwhile, CFO Joan Hilson rang a note of assent, saying that Signet can continue to bring strong earnings growth.
A look at Signet’s insider trading figures, however, casts a bit of doubt on both remarks, especially as both have sold stock or exercised options in the last month. They weren’t alone, either; insider sentiment is currently Very Negative, as insiders have sold a combined total of $26.9 million in stock in the last three months alone.
