Signet Jewelers Limited (NYSE:SIG) stock fell in premarket trading Tuesday even after posting a stronger-than-expected quarter.

The company delivered higher earnings and wider margins, supported by firm pricing, improved assortments, and tighter cost controls, signaling a more resilient business heading into the holiday season.

Quarterly sales of $1.391 billion (+3.1% year over year) outpaced the Street view of $ 1.370 billion.

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Same-store sales (SSS) rose 3.0%, while merchandise Average Unit Retail (AUR) increased 7% overall, including 6% growth in Bridal and 8% in Fashion.

The company reported third-quarter adjusted earnings per share of 63 cents, beating the Street view of 29 cents.

Adjusted operating income rose to $32.0 million, up from $16.2 million in the year-ago period.

“Our pricing and assortment strategies were effective in delivering merchandise margin expansion despite tariffs and higher gold costs,” said Joan Hilson, Chief Operating and Financial Officer.

Adjusted operating margin in the quarter under review expanded to 2.3% from 1.2% a year ago.

Gross margin was $518.8 million, up about $34 million from the year-ago quarter. The gross margin rate rose 130 basis points to 37.3%, driven by gross merchandise margin expansion, services growth, and leverage on fixed costs.

Dividend

Signet declared a quarterly cash dividend on common shares of 32 cents per share for the fourth quarter of fiscal 2026, payable February 20, 2026.

Outlook

“Looking forward, we believe we are well positioned for the holiday season with a focused assortment in key categories and price points, supported by a modernized marketing approach,” said J.K. Symancyk, Chief Executive Officer. 

The firm expects fourth-quarter sales of $2.24 billion to $2.37 billion. That compares with analysts’ estimate of $2.38 billion.

Signet raised its 2026 adjusted EPS outlook to $8.43–$9.59 from $8.04–$9.57, compared with the $9.13 analyst estimate.

The company also lifted its 2026 sales forecast to $6.70 billion–$6.83 billion from $6.67 billion–$6.82 billion, versus the $6.824 billion consensus.

SIG Price Action: Signet Jewelers shares were down 3.89% at $91.98 during premarket trading on Tuesday, according to Benzinga Pro data.

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