Signet Jewelers Limited (NYSE:SIG) shares moved higher in early trade on Tuesday after the diamond jewelry retailer reported better-than-expected third-quarter earnings and improved inventory levels.
The company reported a 12.1% decline in 3Q sales to $1.4 billion, better than an expected 13.1% drop to $1.38 billion.
Adjusted diluted earnings per share (EPS) were $0.24, down from $0.74 in the year-ago quarter but ahead of estimates of $0.15.
It also reduced its inventory levels by 14% year-over-year to $2.1 billion.
After the quarter-end, the company sold 15 primarily luxury watch stores in the United Kingdom which it expects will result in a pre-tax gain of $12 million reflected in its 4Q results.
For 4Q, it expects sales in the range of $2.4 billion to $2.6 billion compared to Wall Street estimates of $2.53 billion. It did not provide EPS guidance for the quarter.
"Trends through Black Friday weekend, including sequential improvement in engagement trends, are performing in line with guidance expectations for the fourth quarter,” Signet CEO Virginia Drosos said in a statement.
“As we enter the holiday season, jewelry remains a top of mind gifting category for consumers in a value conscious shopping environment."
Signet shares were up 5.2% at US$89.17 shortly after Tuesday’s opening bell.
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