09:02 AM EDT, 06/13/2024 (MT Newswires) -- Signet Jewelers ( SIG ) reported lower fiscal first-quarter results on an annual basis on Thursday, but earnings topped market expectations, while the company reaffirmed its full-year outlook.

The owner of store chains including Kay Jewelers posted adjusted earnings of $1.11 per share for the quarter ended May 4, down from $1.78 the year before. The consensus on Capital IQ was for normalized EPS of $0.98. Sales fell 9.4% to $1.51 billion, just shy of the Street's view for $1.52 billion.

Same-store sales dropped 8.9%, worse than the 8.1% decrease modeled by analysts. "Our results reflect notable acceleration from a sluggish February to the top half of expectations, with an even stronger May," Chief Executive Virginia Drosos said in a statement. The stock was down 1.3% in premarket activity.

Revenue in North America slipped 9% to $1.42 billion, as comparable sales sunk 9.2%. International sales dove 17% to $77.2 million, with same-store sales sliding 3.2%. Both segments were impacted by lower transactions, according to the company.

"Compared to the previous quarter, we increased North America engagement unit sales by 400 basis points excluding digital banners," according to Drosos. "Further, customers continue to respond well to our new product offerings and loyalty program, reflected in a meaningful improvement in comparable sales for fashion since February."

Signet continues to project adjusted EPS of $9.90 to $11.52 for fiscal 2025, while the Street is looking for $10.50. The company lifted its bottom line guidance in April from the prior forecast of $9.08 to $10.48. It also reiterated its adjusted sales outlook range of $6.66 billion to $7.02 billion and same-store sales to be between a 4.5% decline to a 0.5% increase.

For the ongoing quarter, the diamond jewelry retailer anticipates sales of $1.46 billion to $1.52 billion on an adjusted basis. Adjusted same-store sales are pegged to decrease by 2% to 6% for the period. "We expect continued momentum in the second quarter, leading to a positive same store sales inflection in the second half of Fiscal 2025," Drosos said.

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