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


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.