$SIG About To Squeeze The Shorts

2020년 1월 16일

33% of the float in SIG has been sold short. We are expecting a massive short squeeze to fuel SIG higher. The latest earnings guidance is the catalyst to do so.

Signet Jewelers (NYSE:SIG) reports same store sales were up 1.6% for the two-month holiday period.

Same-store sales for the North America business were up 2.0%.

E-commerce sales rose 13.5% during the holiday period and brick and mortar same store sales were down 0.2%.

Looking ahead, Signet expects FY20 same store sales to rise 0.1% to 6.1B vs. a prior expectation for negative growth. EPS of $3.61 to $3.69 is anticipated vs. $3.26 consensus.

For Q4, Signet sees same-store sales growth of 1.1% and EPS of $3.44 to $3.52 vs. $3.11 consensus.

CEO update: "We delivered holiday same store sales growth ahead of our guidance as we continued to implement year two of our Path to Brilliance transformation. Product newness, investments in our digital capabilities, and more targeted marketing campaigns drove both eCommerce and brick and mortar growth in North America."

As always, trade with caution and use protective stops.

Good luck to all!