Signet’s earnings are coming up this week. Expectations are less than sparkling.
Signet ($NYSE:SIG) shares slumped after the pandemic gripped the entire US economy, but have since sprung back to life, and the operator of numerous popular American jewelry chains is heading into earnings down 13% in 2020, but with a bit of spring in its step. Unfortunately, alternative data isn’t terribly reassuring – yet, at least.
Shares on June 8 are up more than 8% and earnings will be announced by Signet on the 9th. Updated earnings estimates call for losses of -$2.29 per share.
Unfortunately, as economies across the US begin to pry open and re-establish business, it looks as if some of Signet’s top properties aren’t reeling in much business – our chart above tracks Facebook Talking About Count. This is a measure of how much each of the three stores is earning engagement on social media – and, clearly, it’s not much.
For Signet’s high-end competitor, Tiffany, the chart above is at least slightly good news – its social media engagement was higher than its mall-based competitors. But this is still a sign for both major chains that their demand drop-off has to see some kind of a rebound. And, because so many people are postponing weddings, it’s not clear when that will come.
Tiffany ($NYSE:TIF) was in a bit of a different bind, but its investors may wind up getting off the hook, so to speak – the company agreed before the 2019 holiday season to sell itself to French luxury titan LVMH, and for a time, its buyer balked at the deal and sought a new discounted price tag thanks to the pandemic. Lately, it sounds like LVMH has backed off that stance, and that the deal will go through as planned.
And – as we’re seeing in the cruise business and in the hospitality business – just because Signet’s reopening for business, doesn’t mean that it’s looking to do much hiring – at least, so far.
The coronavirus outbreak gave people the opportunity to reassess the size of, or viability, their weddings; the size of their rings; and, probably in at least a few cases, whether or not they actually wanted to spend the rest of their lives with a person who – after 100+ days of isolation – turned out to not quite be their cup of tea.
All of this is to say that both weddings and engagements may take a pause, at least for a little while – and that could pinch Signet stock when it announces numbers.
About the Data:
Thinknum tracks companies using the information they post online – jobs, social and web traffic, product sales, and app ratings – and creates data sets that measure factors like hiring, revenue, and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
Originally Posted on June 8, 2020 – Signet’s social slump signals serious slowdown
Disclosure: Interactive Brokers
Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Thinknum Media and is being posted with permission from Thinknum Media. The views expressed in this material are solely those of the author and/or Thinknum Media and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.