Signet Jewelers on Thursday reported a substantially smaller loss for its first quarter compared to a year ago and narrowed its full-year financial guidance.
Earnings and revenue results beat analyst expectations, with shares briefly spiking higher in early trading Thursday before falling in price.
The Akron-based jewelry retailer reported it lost $2.6 million, or 35 cents per share, on revenue of $1.4 billion for the fiscal 2020 first quarter ending May 4. That compares to a loss of $574.2 million, or $8.48 per share, on revenue of nearly $1.5 billion a year ago.
Adjusted earnings showed a profit of $24.2 million, or 8 cents per share, compared to $24.1 million, or 10 cents per share a year ago.
Shares closed down 24 cents, or 1.2 percent, to $19.18. Shares over the past 52 weeks have ranged from a high of $71.07 to a low of $17.69.
“We delivered operating profit above our guidance range and strong free cash flow in the first quarter, with same store sales at the low end of our guidance,” Chief Executive Officer Virginia C. Drosos said in a news release. “Given the sales trends we experienced year to date and softening retail traffic, we are narrowing our fiscal 2020 guidance while continuing to expect strong progress on cost savings across our business. We remain focused on executing our Path to Brilliance transformation initiatives to improve the trajectory of our same store sales and drive higher profitability over the long-term.”
Sales at stores open at least a year were down 1.3 percent from a year ago.
Signet said it expects sales of stores open at least a year to finish down 1.5 percent to 2.5 percent in the fiscal year, with total revenue of $6 billion to $6.06 billion. The company said it expects to earn a profit of $1.88 to $2.88 per share.
Signet said it expects to close 150 stores this year, including 44 in the first quarter, with limited new store openings. Signet has about 3,300 stores. Brands include Kay Jewelers, Zales, Jared, Piercing Pagoda, JamesAlle.com and others.
ECommerce sales totaled $154.3 million, up 5.3 percent from a year ago. ECommerce sales accounted for 10.8 percent of total sales, up from 9.9 percent in the first quarter a year ago.