Signet Jewelers Slips To Loss In Q3; Lifts FY15 Adj. EPS View - Quick Facts

(RTTNews) - Specialty retail jeweler Signet Jewelers Ltd. (SIG.L, SIG) posted third-quarter net loss of $1.3 million, or $0.02 per share, as against an income of $33.6 million, or $0.42 per share, in the third quarter 2014. Adjusted net income was $16.5 million or $0.21 per share. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude one-time items.

The year-on-year decrease in adjusted net income was driven by this year's Zale division net loss of $13.2 million and incremental interest expense of $10.6 million related to the Zale acquisition, according to the company.

The firm noted its third quarter fiscal 2015 results reflect the results of Zale Corp., which was acquired on May 29, 2014, as well as, purchase accounting, severance and transaction costs.

The Hamilton, Bermuda-based owner of Kay Jewelers and Jared the Galleria of Jewelry reported total sales of $1.18 billion, up 52.7%, versus $771.4 million a year ago, chiefly driven by the addition of the Zale unit, which added $331.4 million of sales to third quarter fiscal 2015. Wall Street analysts had a consensus revenue estimate of $1.18 billion for the quarter. Same-store sales grew by 4.2% compared to an increase of 3.2% in the third quarter fiscal 2014.

Looking ahead, fourth-quarter fiscal 2015 adjusted earnings per share are likely to range between $2.95 and $3.05, while earnings per share to range between $2.69 and $2.83. Analysts project fourth-quarter earnings of $3.03 per share.

For fiscal 2015, the firm currently sees adjusted earnings per share to be in the range of $5.51 to $5.61 and earnings per share between $4.59 and $4.72. Street is currently looking for annual earnings of $5.50 per share. Earlier, fiscal 2015 adjusted earnings were anticipated to lie between $5.38 and $5.54 per share. Adjusted EPS are expected to be favorably impacted by Zale operations in the fiscal 2015 by $0.20 to $0.24.