If you’re like me, you shudder at the phrases “Every Kiss Begins With Kay” and “He Went to Jared!” But for whatever reason (I suspect subliminal messages), they have helped power retail jeweler Signet Jewelers (NYSE:SIG) to sparkling returns in the past few years. Specifically, SIG has ripped off 900% returns since the depths of the financial crisis, including a nearly 50% return in the past 52 weeks.
A third of the National Retail Federation survey’s respondents said they’d be buying jewelry, and it’s hard to imagine Signet’s wide net — one that includes not only Kay Jewelers and Jared, but JB Robinson, Rogers, Osterman and Shaw’s, among others — won’t catch a big chunk of that spending bloc.
If all goes as planned, this Mother’s Day should go a long way in helping SIG meet or exceed the Street’s expectations for earnings, which include roughly 11% growth in both fiscal years 2014 and ’15. And considering SIG’s recent history of earnings beats, it’ll more likely be on the “exceed” side.
Also a promising sign of stability: Signet has been debt-free for a couple years now, and re-instituted its dividend in 2011, switching from its previous biannual payout to a quarterly one. At a yield of less than 1%, SIG’s no income solution, but the payout has increased by 50% in just two years, so it’s headed in the right direction.