We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Signet (SIG) to Report Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Signet Jewelers Limited (SIG - Free Report) is likely to witness a decline in its top and bottom lines when it reports third-quarter fiscal 2021 results on Dec 3, before the opening bell. The Zacks Consensus Estimate for fiscal third-quarter revenues is pinned at $1,095 million, indicating a decline of 7.8% from the prior-year quarter’s tally. Nonetheless, we note that the rate of sales decline is likely to decelerate sharply on a sequential basis. The company had witnessed a decline of 34.9% in the last-reported quarter.
Moreover, the consensus mark for the quarter stood at a loss of 86 cents, which narrowed from a loss of 90 cents pegged 30 days ago. The consensus estimate also shows a sequential improvement from a loss of $1.13 per share reported in the second quarter. However, the consensus estimate is wider than the loss of 76 cents a share recorded in the same quarter a year earlier.
We note that the jewelry retailer delivered an earnings surprise of 28.8% in the last four quarters, on average.
Key Things to Note
Signet is not fully immune to the ill impacts of the ongoing pandemic. The impact of the resurgence of coronavirus in major trade areas, supply-chain headwinds and uncertainty related to consumers' spending ability, mainly in discretionary categories including jewelry, cannot be ruled out. Nonetheless, with the reopening of stores, things have begun to improve. Consequently, preliminary August same-store sales reflect an increase of 10.9%. However, in the last earnings release, management raised doubts about the August sales trend continuing for the rest of the third quarter.
Despite a challenging backdrop, Signet has managed to maintain its gleam on the back of strong e-commerce operations. As online transactions began gaining prominence, the company responded by pivoting to a digital-first strategy. The company has been boosting online shopping with advanced virtual experiences. The company’s investment in virtual selling has been aiding higher levels of conversion in digital and retail foot traffic. To further support growth in the digital arena, the company has been broadening online assortments alongside search and browse capabilities. Signet registered e-commerce sales growth of 65.2% in August, with penetration rates as high as 20%. Markedly, Signet is also on track with its Path to Brilliance plan. This three-year strategic initiative comprises focusing on customer-centric growth actions, enhancing efficiency and driving cost effectiveness.
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 Jewelers Limited Price, Consensus and EPS Surprise
Ollie's Bargain Outlet (OLLI - Free Report) presently has an Earnings ESP of +0.58% and a Zacks Rank #3.
Kroger (KR - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Signet (SIG) to Report Q3 Earnings: What's in the Cards?
Signet Jewelers Limited (SIG - Free Report) is likely to witness a decline in its top and bottom lines when it reports third-quarter fiscal 2021 results on Dec 3, before the opening bell. The Zacks Consensus Estimate for fiscal third-quarter revenues is pinned at $1,095 million, indicating a decline of 7.8% from the prior-year quarter’s tally. Nonetheless, we note that the rate of sales decline is likely to decelerate sharply on a sequential basis. The company had witnessed a decline of 34.9% in the last-reported quarter.
Moreover, the consensus mark for the quarter stood at a loss of 86 cents, which narrowed from a loss of 90 cents pegged 30 days ago. The consensus estimate also shows a sequential improvement from a loss of $1.13 per share reported in the second quarter. However, the consensus estimate is wider than the loss of 76 cents a share recorded in the same quarter a year earlier.
We note that the jewelry retailer delivered an earnings surprise of 28.8% in the last four quarters, on average.
Key Things to Note
Signet is not fully immune to the ill impacts of the ongoing pandemic. The impact of the resurgence of coronavirus in major trade areas, supply-chain headwinds and uncertainty related to consumers' spending ability, mainly in discretionary categories including jewelry, cannot be ruled out. Nonetheless, with the reopening of stores, things have begun to improve. Consequently, preliminary August same-store sales reflect an increase of 10.9%. However, in the last earnings release, management raised doubts about the August sales trend continuing for the rest of the third quarter.
Despite a challenging backdrop, Signet has managed to maintain its gleam on the back of strong e-commerce operations. As online transactions began gaining prominence, the company responded by pivoting to a digital-first strategy. The company has been boosting online shopping with advanced virtual experiences. The company’s investment in virtual selling has been aiding higher levels of conversion in digital and retail foot traffic. To further support growth in the digital arena, the company has been broadening online assortments alongside search and browse capabilities. Signet registered e-commerce sales growth of 65.2% in August, with penetration rates as high as 20%. Markedly, Signet is also on track with its Path to Brilliance plan. This three-year strategic initiative comprises focusing on customer-centric growth actions, enhancing efficiency and driving cost effectiveness.
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 Jewelers Limited Price, Consensus and EPS Surprise
Signet Jewelers Limited price-consensus-eps-surprise-chart | Signet Jewelers Limited Quote
Signet carries a Zacks Rank #2 and an Earnings ESP of +13.95%.
Other Stocks to Consider
Here are a few more companies you may want to consider, as our model shows that these too have the right combination to post an earnings beat:
PVH Corp (PVH - Free Report) has an Earnings ESP of +162.72% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain Outlet (OLLI - Free Report) presently has an Earnings ESP of +0.58% and a Zacks Rank #3.
Kroger (KR - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>