Jewelry retailer Signet’s stock climbed about 40% on Thursday after the company reported surprisingly strong year-over-year holiday sales growth and raised its guidance.
The owner of Kay, Zales and other popular mid-range jewelry vendors registered a 1.6% bump in same-store sales and a 13.5% jump in online transactions for the three months ended January 4, Signet said in a statement.
Signet (SIG), whose brands are ubiquitous in malls, also said it expects same-store sales to increase by 0.1% in fiscal year 2020, scrapping previous guidance that forecast a decline of 1% to 1.7%. Total sales should hit $6.1 billion, up from prior projections of $6.01 billion to $6.05 billion, according to the statement.
Thursday’s results are a marked change from the company’s 2018 holiday sales performance, when same-store sales decreased by 2% and e-commerce grew by 5.4% year-over-year.
Despite the better-than-expected news, overall sales fell 1% compared to the fourth quarter of 2018, the firm said. North America recorded a 0.5% decrease, while the international segment declined by 4.4%.
The company closed 262 stores in fiscal year 2019, according to previous earnings releases. Signet said Thursday it plans to close 165 shops and open 38 by the end of fiscal year 2020. It operates around 3,000 stores worldwide.
Signet has struggled with similar problems as other retailers, which have experienced sluggish sales although consumer spending and confidence remain strong. On Wednesday, Target’s stock fell after the company reported lackluster holiday sales, and JCPenney (JCP), Kohl’s and Macy’s (M) grappled with the same issue.
