One of the world’s largest jewelry retailer Signet Jewelers Ltd. (SIG) released first quarter financial results on Thursday, showing net profit rose 9%, exceeding market expectations, thanks to cost control, as well as the rise in the profit margin of U.S. stores, but revenue growth was lower than expected.
The company also cut its full-year earnings expectations, primarily taking account of the slowdown in jewelery demand worldwide.
As of the quarter ended April 28, the company’s net profit fell from a year earlier of $75.4 million, or 87 cents per share, to $82.5 million, or 96 cents per share, higher than the 91 cents average estimate of analysts accepted the survey of FactSet.
Revenue rose 1.4% to $900 million from $887 million in the same period last year, below the average analyst estimate of $911 million. Same-store sales growth was 1.2%.
The company’s U.S. revenue rose 2% to $752 million; UK revenue decline 0.5% to $149 million.
Signet Jewelers forecasted the second-quarter earnings per share of 78-84 cents, lower than the average analyst estimate of 89 cents. Same-store sales are expected to show a middle to high single digit growth.
Affected by the worse than expected revenue and slump in the outlook for full year earnings, Signet Jewelers stock price plunged 7.83%, or $3.74, to finish at $44.01 on Thursday. Over the past 52 weeks, Signet Jewelers stock price traded as high as 51.44, and the current price is 14.44% off the top.