Signet tops earnings estimates

Hamilton, Bermuda – Signet Jewelers Ltd. topped Wall Street earnings estimates for the first quarter of fiscal 2016. Signet earnings rose 10% to $118.8 million, from $96.6 million the same quarter the previous fiscal year.



Total sales were $1.53 billion, up 45% compared to $1.06 billion. The increase was primarily driven by the addition of the Zale division. Same-store sales increased 3.6%. E-commerce sales were $76.9 million, up 98.7%, with Zale e-commerce sales a major driver.



Mark Light, CEO, credited success in the ongoing integration with Zale Corp., which it acquired in May 2014, for aiding Signet’s performance.



"We continue to see favorable progress of our integration of the Zale division,” said Light. “As we implement new operating initiatives and deploy incremental capital resources, the Zale division has begun, as expected, to grow its same-store sales faster than Signet overall. We expect this trend to continue, and we remain well-positioned to meet our goal of $150 million to $175 million in cumulative three-year operating profit synergies by the end of January 2018.”



Signet expects same-store sales growth of 2-3% in the second quarter of fiscal 2016.