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Signet (SIG) is Sparkling, Stock Up More than 50% in 3 Months
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Shares of Signet Jewelers Limited (SIG - Free Report) have been on a bull run of late. Apparently, this Zacks Rank #1 (Strong Buy) stock has returned 52.8% in the past three months, outpacing the industry’s rise of 4.5%. The stock rally is solely attributed to its robust performance during the holiday season of 2019, which in turn prompted management to lift fourth-quarter and fiscal 2020 view. Following the holiday results announcement on Jan 16, the company has seen its shares surge almost 40%.
The holiday season turned out pretty well for Signet. In fact, the jewelry retailer posted better-than-anticipated holiday sales, primarily backed by notable improvement at its Zales, Piercing Pagoda and Peoples brands. Moreover, growth at the e-commerce platform was mainly powered by Signet’s online jewelry retailer James Allen, which reported same-store sales growth of nearly 27% during the season. This clearly demonstrates that the company has been largely benefiting from its online strategy, which is likely to continue driving results ahead.
Impressively, Signet’s overall e-commerce sales increased 13.5% year over year in the holiday period. The company’s significant investments to augment digital sales along with strength in merchandising and marketing strategies aided e-commerce as well as brick and mortar sales growth in North America. The company is also benefitting from its ‘Signet Path to Brilliance’ plan.
Signet now envisions fourth-quarter and fiscal 2020 sales of $2.12 billion and $6.1 billion, respectively. Earnings per share are projected in the range of $3.44-$3.52 and $3.61-$3.69 for the corresponding periods. (Read More: Signet Stock Up on Solid Holiday Sales, Upbeat View)
Management’s ‘Signet Path to Brilliance’ transformation plan is designed to augment savings, engage in customer-centric growth and bolster e-commerce sales. Signet continues to anticipate cost savings of $80-$90 million for fiscal 2020. The company had earlier guided cost savings of $200-$225 million from this program by the end of fiscal 2021, including savings of $85 million achieved in fiscal 2019. Going ahead, the plan is anticipated to prove accretive to fiscal 2021 results.
With that said, we believe that Signet is well poised for growth in the coming months, based on the aforesaid strengths.
Chico's FAS, Inc. has an impressive long-term earnings growth rate of 15% and a Zacks Rank of 1.
Zumiez Inc. (ZUMZ - Free Report) , also a Zacks Rank #1 stock, has an expected long-term earnings growth rate of 12%.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Signet (SIG) is Sparkling, Stock Up More than 50% in 3 Months
Shares of Signet Jewelers Limited (SIG - Free Report) have been on a bull run of late. Apparently, this Zacks Rank #1 (Strong Buy) stock has returned 52.8% in the past three months, outpacing the industry’s rise of 4.5%. The stock rally is solely attributed to its robust performance during the holiday season of 2019, which in turn prompted management to lift fourth-quarter and fiscal 2020 view. Following the holiday results announcement on Jan 16, the company has seen its shares surge almost 40%.
The holiday season turned out pretty well for Signet. In fact, the jewelry retailer posted better-than-anticipated holiday sales, primarily backed by notable improvement at its Zales, Piercing Pagoda and Peoples brands. Moreover, growth at the e-commerce platform was mainly powered by Signet’s online jewelry retailer James Allen, which reported same-store sales growth of nearly 27% during the season. This clearly demonstrates that the company has been largely benefiting from its online strategy, which is likely to continue driving results ahead.
Impressively, Signet’s overall e-commerce sales increased 13.5% year over year in the holiday period. The company’s significant investments to augment digital sales along with strength in merchandising and marketing strategies aided e-commerce as well as brick and mortar sales growth in North America. The company is also benefitting from its ‘Signet Path to Brilliance’ plan.
Signet now envisions fourth-quarter and fiscal 2020 sales of $2.12 billion and $6.1 billion, respectively. Earnings per share are projected in the range of $3.44-$3.52 and $3.61-$3.69 for the corresponding periods. (Read More: Signet Stock Up on Solid Holiday Sales, Upbeat View)
With that said, we believe that Signet is well poised for growth in the coming months, based on the aforesaid strengths.
More Key Picks in Retail
DICK'S Sporting Goods, Inc (DKS - Free Report) outpaced earnings estimates in three of the trailing four quarters, the average positive surprise being 11.5%. The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chico's FAS, Inc. has an impressive long-term earnings growth rate of 15% and a Zacks Rank of 1.
Zumiez Inc. (ZUMZ - Free Report) , also a Zacks Rank #1 stock, has an expected long-term earnings growth rate of 12%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>