Shares of Signet Jewelers (NYSE: SIG) surged 22.18% in pre-market trading on Wednesday after the jewelry retailer reported better-than-expected fourth-quarter results and provided an upbeat outlook for the current year.

For the quarter ended February 1, Signet reported adjusted earnings of $6.62 per share, significantly beating analysts' expectations of $6.25. Revenue came in at $2.35 billion, also topping the consensus estimate of $2.33 billion despite a 5.8% year-over-year decline. Same-store sales decreased by a modest 1.1% in the quarter.

CEO J.K. Symancyk highlighted positive momentum heading into the new fiscal year, stating, "This positive trend has continued into the first quarter to date with growth across all categories. Since holiday, we increased our depth of assortment at key price points while also benefiting from improved Bridal trends."

Adding to investor optimism, Signet raised its quarterly dividend by 10% to $0.32 per share. The company also provided a fiscal 2026 outlook that was largely in line with or above analyst expectations, projecting revenue between $6.53 billion and $6.80 billion and adjusted earnings per share of $7.31 to $9.10.

The strong results and positive outlook appear to have overshadowed concerns about recent underperformance, with the stock having fallen about 40% year-to-date prior to this earnings release. Investors seem encouraged by signs of improving trends and management's confidence in the business going forward.