What happened

Shares of Signet Jewelers (NYSE:SIG) climbed 29.7% in the month of June, according to data from S&P Global Market Intelligence, after the diamond jewelry retailer announced significantly better-than-expected quarterly results. Most of Signet's gains came on June 6, 2018, alone, when the stock popped 18.4% after its quarterly report hit the wires.

Top of a diamond being held by tweezers

IMAGE SOURCE: GETTY IMAGES.

So what

The parent company of chains including Kay, Zales, and Jared grew revenue 5.5% year over year to just over $1.48 billion, albeit with roughly flat same-store sales as compared to the same year-ago period. Sales growth was driven entirely by a combination of Signet's acquisition of James Allen in August 2017 and a calendar shift related to an extra week in its previous fiscal year. On the bottom line, that translated to adjusted earnings of $0.10 per diluted share, down from $1.03 in the comparable quarter last year.

Even so, most investors were much more pessimistic going in, with consensus estimates predicting earnings of just $0.09 per share on revenue of $1.40 billion.

Signet VEO Virginia Drosos further noted that the quarter brought "signs of stabilization" in the company's overall sales, as well as double-digit growth from its e-commerce websites.

Now what

It might seem drastic for Signet to soar so high on what seemed to be a modest beat, especially considering the company went on to "merely" reaffirm its full fiscal-year guidance. But the stock was also down around 50% from its 52-week high set late last year. And with the business stabilizing, some investors seem to be betting that Signet isn't done sparkling yet.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.