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Diamonds Return as Best Friends as Pandemic Eases Up, Stimmies Enrich

Published 12/04/2021, 16:19
Updated 12/04/2021, 16:21
© Reuters.
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By Christiana Sciaudone

Investing.com -- We're giving our loved ones (or ourselves) diamonds and pearls, prompting Signet Jewelers Ltd (NYSE:SIG) to increase guidance. Shares are rallying more than 9%.

Fiscal 2022 first quarter sales are expected at between $1.57 billion and $1.6 billion, up from $1.42 billion and $1.46 billion announced less than a month ago. For the full year, revenue is estimated at between $6 billion and $6.14 billion, from $5.8 billion and $6 billion, the company said in a statement. 

Signet has already seen profit and sales make a comeback since the pandemic devastated demand and results starting in March 2020. The company racked up losses for the two subsequent quarters to turn a $4.15 per share profit for the quarter ended in January. The jeweler cites stimulus, tax refunds and vaccine-driven euphoria for the solid results.

And while supply chain issues have rattled various industries, Signet says it has mitigated short-term inventory delays.      

Shares have rallied over the past 12 months to return to their highest in about three years. Analysts don't seem to have much faith, however, with two saying hold and two saying sell. The stock has nary a single buy rating, according to data compiled by Investing.com.

Signet will hold a virtual investor event later today, at 2 p.m. ET.    

 

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