Signet boosts stock buyback plan by $50 million
Signet Jewelers Ltd. said Tuesday that its board has boosted the company's stock buyback plan by $50 million to a total of $350 million. The move takes advantage of a recent slide in share price to help lift earnings per share and increase the percentage size of shareholders' stakes.
Signet operates 1,851 specialty retail jewelry stores under such names as Kay Jewelers and Jared The Galleria of Jewelry in the U.S., and H. Samuel and Ernest Jones in the U.K. In May, Signet said that its first-quarter profit rose 9 percent thanks to cost controls and more profitable U.S. stores, but its sales growth and guidance fell short of Wall Street expectations. Shares fell as investors became concerned that demand is weakening for jewelry.
CEO Mike Barnes said the latest move reflects the company's commitment to building value for shareholders and confidence in the strength of its business. The company has 81.4 million shares outstanding and roughly $20.1 million remaining under its original $300 million plan.
Its stock price increased $1.13, or 2.6 percent, to close Tuesday at $43.88. The stock rose from a 52-week low of $30.93 last August to peak at $51.44 in March, before sliding backward in the past few months.
