Signet Jewelers Limited ( “the Company”) is the world’s largest retailer of diamond jewelry, operating over 3,000 stores and more than 600 kiosks primarily in the US, but also in the UK, Canada, and Puerto Rico. Locations in the US are operated under well known and recognizable names such as Kay Jewelers, Jared The Galleria of Jewelry, and Zales Jewelers. Stores outside the US generally operate under different brand names. The UK locations are generally under the H. Samuel and Ernest Jones names, while the Canadian brands include Peoples Jewellers and Mappins Jewelers. In addition to the Company’s primary product offering of diamond jewelry, its locations also sell gold and silver jewelry, watches, and other types of jewelry.
Signet’s stock is down about 40% in the past twelve months, from its 52 week high of $111 per share. It is down even further from its all-time high of $152 per share set in October 2015. However, Signet has been steadily increasing its earnings per share and dividend payout in recent years. It currently pays a $0.31 dividend per share each quarter, which yields about 1.85% annually. The stock also trades at less than 9 times forward earnings. By comparison, competitor Tiffany & Co (TIF) trades at over 21 times forward earnings. Continue Reading »