Signet Jewelers Ltd., the parent of Akron-based Sterling Jewelers, reported Tuesday it had record earnings per share for the third quarter.
But company CEO Mike Barnes said that Superstorm Sandy has “created some initial disruption and November thus far has been challenging.”
Barnes said Signet (NYSE: SIG) is “well prepared for the holiday season” with new merchandise, marketing and well-trained employees.
Sterling, the parent of Kay Jewelers and Jared the Galleria of Jewelry, operates more than 1,300 stores nationwide and employs more than 2,000 in the Akron area.
Also Tuesday, Barnes revealed plans for the Ultra Stores chain of outlet-mall jewelry stores that Signet purchased this month. Barnes said the company would convert the majority of the Ultra stores to Kay Outlets.
Signet said earnings per share for the third quarter ended Oct. 27 increased 13 cents, or 43.3 percent, to 43 cents a share. That compared with 30 cents a share in the third quarter a year ago.
Analysts, on average, expected a profit of 37 cents per share on $734.1 million in revenue, according to a FactSet poll, according to the Associated Press.
Net income was $34.9 million. That was up 34 percent from $26.1 million in the year-ago third quarter.
Sales for this year’s third quarter were $716.2 million, up 8 percent from $710.5 million from last year.
Online sales were $19.6 million, compared with $14.5 million in the year-ago period.
In the U.S division, sales were $575.6 million, an increase of 2.2 percent from $563 million for the year-ago quarter. At stores open at least a year, same-store sales increased 1.2 percent, driven primarily by a 5.5 percent increase of same-store sales at Kay stores. Kay is Signet’s largest chain of stores.
The company, the largest operator of jewelry stores in the United States and the United Kingdom, said it expects earnings per share of $1.95 to $2.10 for the fourth quarter, which will include holiday-shopping revenues and sales of Ultra.
Signet shares closed down $1.47 to $51.52 Tuesday. Shares are up 18.4 percent, including dividends, since Jan. 1 and are up 16 percent from a year ago.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.