Signet Jewelers Ltd (NYSE:SIG) shares surged in pre-market trading after the jeweller reported a rise in second quarter net earnings and revenue.
The company which owns the Kay Jewelers, Zales and Jared chains in the US, reported net income of US$85.2mln or US$1.34 per share in the second quarter to July 29, up from US$81.9mln or US$1.06 per share in the corresponding period of last year.
READ: Signet Jewelers plans to cut stores, invest in digital after fourth-quarter sales fall
Revenue reached US$1.40bn, up from US$1.37bn last year while same-store sales increased by 1.4%, driven by eCommerce platform improvements, Mother's Day performance and timing, effective marketing and bridal promotion initiatives.
Signet, whose brands include H.Samuel and Ernst Jones, reiterated its fiscal guidance for 2018 during which it sees same-store sales declining by a low-to-mid-single digit percentage and earnings per share of US$7.00 to US$7.40.
Virginia C. Drosos, Chief Executive Officer of Signet Jewelers, said, "Our encouraging second quarter performance reflects Signet's fundamental competitive strengths and the progress we are making on our strategic priorities. We delivered positive same store sales performance and managed our cost base to deliver operating margin expansion in a highly promotional environment.
Signet also announced the acquisition of JamesAllen.com to add an online jeweler to its portfolio.
In pre-market trading Signet shares were up 21.4% at US$51.89, an US$11.11 rise.