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Signet (SIG) to Report Q4 Earnings: What's in the Offing?

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Signet Jewelers Limited (SIG - Free Report) is likely to register both top- and bottom-line growth when it reports fourth-quarter fiscal 2022 earnings on Mar 17, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $2,771 million, indicating growth of 26.6% from the prior fiscal-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has been stable in the past 30 days at $4.91 per share, implying growth of about 18% from the prior fiscal-year quarter’s tally. In the last reported quarter, Signet’s bottom line outperformed the Zacks Consensus Estimate by 113.4%. This renowned jewelry and accessories retailer has a trailing four-quarter earnings surprise of 77.2%, on average.

For fiscal 2022, the consensus mark for revenues is pegged at $7.78 billion, suggesting growth of 49% from the year-ago fiscal tally. The Zacks Consensus Estimate for current fiscal year’s earnings stands at $12.15, indicating a sharp rise from $2.11 earned last fiscal year.

Key Aspects to Note

Signet’s top line for the fiscal fourth quarter is likely to have gained from growth in e-commerce sales and the Inspiring Brilliance strategy. SIG is focused on enhancing the online shopping experience through in-store consultations and services like buy online pickup in-store and curbside options. SIG’s connected-commerce capabilities are consistently yielding results. This concept helps combine customer experiences with mobile and delivery by leveraging in store and online capabilities. The aforesaid factors have most likely aided the company’s results in the quarter under review.

Solid gains from growth initiatives like unique banner value propositions and advanced connected-commerce capabilities drove the holiday performance. SIG’s innovation efforts also bode well. Signet’s preliminary total same-store sales (SSS) for the nine-week period ended Jan 1, 2022, or the holiday season increased 30.4% to $2.4 billion. Preliminary SSS rose 25.2% year over year and 35.1% on a two-year basis. Broad-based sales across all the banners and merchandise categories grew in double digits.  E-commerce sales were up $52.1 million year over year while brick-and-mortar sales soared $499.9 million.

Segment wise, same store sales in North America improved 30.2% year over year and the division’s SSS, including physical store sales and e-commerce sales, rose 24.8%. Revenues at the International segment increased 30.5% year over year and the unit’s SSS climbed 31.3% from last fiscal -year levels.

As a result, Signet projected total revenues of $2.77 billion and SSS of 22% for the fiscal fourth quarter. SIG expected an adjusted operating income of $388 million. For fiscal 2022, management anticipated revenues of $7.78 billion, indicating a rise from $5.23 billion generated last fiscal year. It predicts an SSS of 48% and an adjusted operating income of $885 million for the full fiscal.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Signet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited Price and EPS Surprise

Signet Jewelers Limited price-eps-surprise | Signet Jewelers Limited Quote

Although Signet currently has a Zacks Rank of 1, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Oxford Industries (OXM - Free Report) currently has an Earnings ESP of +1.23% and a Zacks Rank #2. OXM is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for OXM’s quarterly revenues is pegged at $295.1 billion, suggesting growth of 33.3% from the prior fiscal-year quarter’s level. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Oxford Industries’ quarterly earnings is pegged at $1.36 per share, suggesting a sharp rise from 13 cents earned in the last fiscal year’s quarter. OXM delivered an earnings beat of 96.7%, on average, in the trailing four quarters.

Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +2.32% and a Zacks Rank of 3. DLTR is likely to register a bottom-line increase when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.95 suggests a rise of 21.9% from the last fiscal-year quarter’s reported figure.

Dollar Tree’s top line is expected to rise from the year-ago fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,742 million, indicating an improvement of 4% from the figure reported in the prior fiscal year’s quarter. DLTR has a trailing four-quarter earnings surprise of 11.8%, on average.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. LULU is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $2.13 billion, suggesting growth of 23.4% from the prior-fiscal year quarter’s level.

The Zacks Consensus Estimate for lululemon’s quarterly earnings is pegged at $3.27 per share, suggesting a 26.7% increase from the earlier fiscal-year period’s reported number. LULU delivered an earnings beat of 21%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.