08:40 AM EDT, 09/12/2024 (MT Newswires) -- Signet Jewelers ( SIG ) reported lower fiscal second-quarter results on Thursday, but earnings topped market expectations, while the company maintained its full-year outlook and said there's a chance for growth in same-store sales in the current period.

The owner of store chains including Kay Jewelers and Zales posted adjusted earnings of $1.25 per share for the quarter ended Aug. 3, down from $1.55 the year before. The consensus on Capital IQ was for $1.21. Sales declined 7.6% to $1.49 billion, just shy of the Street's view for $1.5 billion.

Same-store sales were down 3.4%, compared with the 4.3% decrease modeled by four Capital IQ-polled analysts. Still, the company delivered its "fifth consecutive quarter of sequential same-store sales improvement," Chief Executive Virginia Drosos said in a statement.

The measure was up more than five points from the preceding three-month period and was "turning positive" in the current quarter-to-date, Drosos said. Signet expects third-quarter sales of $1.35 billion to $1.38 billion and same-store sales ranging from a 1% decrease to a 1.5% gain.

"Our strategy to accelerate new merchandise at the right price points is capturing customer demand and driving merchandise margin expansion," Drosos said. Signet's shares jumped 13% in premarket activity.

Revenue in North America slipped 6.9% to $1.4 billion, as comparable sales slid 3.7%. International sales dropped 15% to $86.5 million, even though same-store sales improved 1.7%. Both segments were impacted by lower transactions, according to the company.

The diamond jewelry retailer continues to project adjusted EPS of $9.90 to $11.52 for fiscal 2025. The company also affirmed guidance for sales to be in a range of $6.66 billion to $7.02 billion and same-store sales to be between a 4.5% decline and a 0.5% increase.

"Both the internal and external metrics we track indicate increasing engagements as we head into the back-half of the year," Drosos said. "This combined with growth in new high margin fashion merchandise and services gives us confidence in delivering our annual guidance."

For the ongoing quarter, Signet anticipates sales of $1.35 billion to $1.38 billion, while analysts are forecasting $1.35 billion. Sa me-store sales are set to be in a range of a 1% decrease to a 1.5% gain.

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