Signet shares down 1.2%

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Signet shares slide 4% as company unveils 3-year restructuring plan

Signet Jewelers Ltd. shares slid 4% in premarket trade Wednesday, after the company unveiled a restructuring plan to be carried out over the next three years as it reported earnings for its fiscal second quarter. The company said it had net income of $343 million, or $5.24 a share, in its fiscal second quarter to Feb. 3, up from $287.8 million, or $3.92 a share, in the year-earlier period. The operator of Zales, H. Samuel and Gordon’s jewelry chains said excluding a tax benefit stemming from the December revamp, per-share earnings came to $4.28, ahead of the FactSet consensus of $4.20. Sales rose 1% to $2.3 billion, also ahead of the FactSet consensus of $2.2 billion. Same-store sales fell 5.2% in the quarter, matching the FactSet consensus. The company announced that it is launching a three-year transformation plan, aimed at making it an omnichannel leader in its category. The plan includes cost-savings with the proceeds to be used to invest in growth and other measures. The company is planning to sell the remaining portion of its non-prime credit card receivables and to use the proceeds to buy back shares. For fiscal 2019, Signet is expecting same-store sales to be down in the low to mid single digits. It expects sales to range from $5.9 billion to $6.1 billion and adjusted EPS of $3.75 to $4.25. The FactSet consensus is for EPS of $6.04, sales of $6.1 billion and a same-store sales decline of 1.15. Shares have fallen 29% in the last 12 months, while the S&P 500 has gained 17%.

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