Signet Jewelers Limited (SIG - Free Report) is scheduled to report second-quarter fiscal 2021 results on Sep 3, before the opening bell. The Zacks Consensus Estimate for fiscal second quarter stood at a loss of $1.86, which narrowed down from a loss of $1.91 pegged 30 days ago. The company reported earnings of 51 cents a share in the same quarter a year earlier. Moreover, the consensus mark for quarterly revenues is pinned at $970 million, indicating a decline of more than 28% from the prior-year quarter’s tally.
We note that the jewelry retailer delivered a trailing four-quarter earnings surprise of 41.5%, on average.
Key Things to Note
Signet has been witnessing softness across its International segment for a while. This is evident from the segment’s dismal same-store sales on lower number of transactions and soft brick-and-mortar sales. In addition, we expect the quarterly performance to have bore the brunt of adverse impacts of coronavirus. Lower sales on COVID-19 impacts has also been de-leveraging fixed costs and hurting gross margin.
However, the company’s transformation efforts to be a channel-agnostic retailer, coupled with digital initiatives, might have provided some cushion to the quarter. The company’s Path to Brilliance Plan also appears encouraging.
What the Zacks Model Predicts
Our proven model predicts an earnings beat for Signet this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Signet carries a Zacks Rank #3 and an Earnings ESP of +38.82%.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:
PVH Corp. (PVH - Free Report) has an Earnings ESP of +55.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CarMax (KMX - Free Report) presently has an Earnings ESP of +25.07% and a Zacks Rank #3.
Costco (COST - Free Report) has an Earnings ESP of +2.61% and a Zacks Rank #3.
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