Signet Jewelers is expected to post weak quarterly results
Signet Jewelers (SIG) is expected to report weak fourth-quarter results on April 3. We don’t expect too many surprises in the fourth quarter, as the jeweler’s sluggish holiday sales and guidance cut indicate that the company’s sales and earnings are likely to register a decline.
Signet Jeweler’s holiday sales fell short of expectations as the higher promotional environment and increased credit costs remained a drag. Heightened competition negatively impacted traffic, and in turn, its comps, which decreased by 1.3%. However, new products, omnichannel offerings, and digital marketing supported the top line.
The underperformance during the key sales driving season led management to lower the full-year sales and earnings forecast, which indicates higher pressure on the fourth quarter. Signet’s same-store sales or comps are now expected to stay flat in fiscal 2019. Earlier, management expected its comps to remain flat or rise by 1%. Meanwhile, total sales are projected to be between $6.24 billion–$6.26 billion. Previously, management expected full-year sales to be in the range of $6.26 billion–$6.31 billion.
Signet’s adjusted earnings are anticipated to be $3.53–$3.69 per share. Earlier, adjusted EPS were projected to be in the range of $4.15–$4.40.
SIG stock performance
Signet Jewelers stock has underperformed the broader markets so far this year as weak holiday sales and a lower outlook weighed on its stock. SIG stock is down 16.7% on a YTD basis as of March 22. In comparison, Tiffany (TIF) is up 28.2% during the same period. The S&P 500 has gained 11.7% on a YTD basis.
The EIA is scheduled to release its oil and natural gas inventory data on March 27–28, which could be a short-term driver for oil and natural gas prices.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.