By Dhirendra Tripathi
Investing.com – Signet Jewelers stock (NYSE:SIG) jumped 4% Thursday after the diamond retailer beat fourth-quarter estimates while grabbing a higher share in the U.S., its biggest market.
Total sales in 2022 jumped 50% and the company is now forecasting the growth to be around 6% in the current year, notwithstanding its decision to stop buying diamonds and precious stones mined in Russia.
Total revenue in 2023 is seen between $8.03 billion and $8.25 billion with profit per share at $12.64 at the midpoint of its guidance range.
The company improved its U.S. market share by 2.7 percentage points to 9.3% for the year.
"Our fiscal 2023 guidance reflects topline performance that we believe will outpace the market while also delivering a double-digit operating margin by leveraging sustainable advantages, notably fleet optimization, inventory efficiency and an enhanced labor model," CFO and Strategy Officer Joan Hilson said in a statement.
The company has hiked its quarterly cash dividend by 11%, to 20 cents per share. Margins improved on higher sales and tighter control on distribution costs. This was even as selling, general and administrative expenses rose because of advertising to push holiday sales.
Revenue in the fourth quarter rose 29% to $2.8 billion. Brick and mortar sales were higher as customers returned to stores, shunning online that grew in the single digit range.
Both average transaction value and number of transactions were higher in North America. However, in international markets, average transaction value fell even as quantum of transactions went up.
Adjusted profit per share was $5.01, up from $4.15 in the same period a year ago.