Signet Jewelers, the largest retailer of diamond jewelry globally, has exceeded its holiday sales expectations, prompting the company to raise its guidance for the fourth quarter and full year fiscal 2020. During the nine-week period ending January 4, 2020, Signet reported a growth of 1.6% in same-store sales, with North American same-store sales seeing a 2.0% increase. This growth was mainly driven by the improvements in Signet’s e-commerce channel, which experienced a sales surge of 13.5% and helped mitigate the decline of 2.0% in brick-and-mortar same-store sales.

Among Signet’s brands, James Allen recorded outstanding same-store sales growth of 26.9%, followed by Piercing Pagoda with a 6.9% increase, and Zales with 5.4%. However, Jared and the regional banners saw a decrease in same-store sales of 3.5% and 10.4%, respectively.

CEO Virginia C. Drosos commented on the results, expressing satisfaction with the holiday sales growth that surpassed expectations. Drosos attributed this success to the ongoing implementation of their Path to Brilliance transformation, in its second year. Emphasizing the importance of new product introductions, investments in digital capabilities, and targeted marketing campaigns, she noted that these initiatives contributed to the growth in both e-commerce and brick-and-mortar sales in North America.

As a result of its strong performance, Signet has revised its guidance for fiscal 2020. The company now expects same-store sales to increase by up to 0.1%, with estimated total annual sales of approximately $6.1 billion. This marks a significant improvement from the previous guidance, which predicted a decrease of 1.7% to 1.0% in same-store sales, and total sales ranging from $6.01 billion to $6.05 billion. The projected range for annual diluted earnings per share is now $1.70 to $1.86.

Signet has also adjusted its guidance for the fourth quarter, anticipating a 1.1% rise in same-store sales, and net sales totaling $2.12 billion. The previous guidance projected a decline in same-store sales between 4.0% and 2.0%, with net sales ranging from $2.03 billion to $2.07 billion. Quarterly diluted earnings per share are now estimated to be between $3.42 and $3.56.

The positive holiday sales results have bolstered Signet’s share price, leading to a 13.4% increase during premarket trading on Thursday. With its strong performance and revised guidance, Signet Jewelers appears to have a promising outlook for the upcoming year.

For more information about Signet Jewelers and their holiday sales performance, you can visit Link 1 and Link 2.