Signet Jewelers (SIG) on Wednesday unveiled a new strategy to simplify its brand portfolio and accelerate growth, while the diamond jewelry retailer issued a fiscal first-quarter sales outlook above Wall Street estimates at the midpoint.

As part of the strategy, the owner of store chains including Kay Jewelers and Zales will optimize its real estate footprint, including the potential closure of up to 150 low-performing stores over the next two years, according to a presentation. The company aims to reposition 200 strong-performing stores in declining venues to off-mall formats over the next two to three years and renovate about 200 stores in fiscal 2026.

"Our reorganization plan is expected to fund the reset of incentive compensation with further benefit expected beyond (fiscal 2026)," Chief Operating and Financial Officer Joan Hilson said in a fiscal fourth-quarter earnings statement. "We are focused on real estate optimization and expect to transition over 10% of mall locations to off-mall and the e-commerce channel over the next three years."

The company plans to streamline its organization to "speed up decision making" and reduce the number of its senior leadership team by about 30%, Chief Executive J.K. Symancyk said during an earnings call, according to a FactSet transcript. Shares of Signet jumped 22% in Wednesday trade.

The move comes after Select Equity Group, which owns a 9.7% stake in Signet, called on the company last month to assess strategic options, including a potential sale.

For the first quarter of fiscal 2026, the group anticipates sales between $1.5 billion and $1.53 billion, compared with the current FactSet consensus for $1.5 billion. Same-store sales are expected to be flat to up 2%, while three analysts polled by FactSet are looking for growth of 0.9%.

Signet saw positive comparable sales in January and the trend continued into the first quarter to date, with growth across all categories, according to Symancyk. "Since holiday, we increased our depth of assortment at key price points while also benefiting from improved bridal trends," the CEO said in the statement.

The retailer reported sales of $2.35 billion for the three months through Feb. 1, down from nearly $2.5 billion the year before, but just ahead of the average analyst estimate of $2.33 billion. Same-store sales declined 1.1%, compared with a 9.6% drop in the prior-year quarter.

Adjusted earnings fell to $6.62 per share from $6.73 in the fourth quarter, but exceeded five FactSet-polled analysts' forecast of $6.25. Gross merchandise margin rose by 30 basis points, but was more than offset by fixed cost deleverage, according to the company.

For fiscal 2026, Signet expects adjusted EPS of $7.31 to $9.10 on sales of $6.53 billion to $6.8 billion. The Street is looking for non-GAAP EPS of $9 and sales of $6.74 billion. In the just-ended fiscal year, adjusted EPS dropped to $8.94 from $10.37 and sales moved down 6.5% to $6.7 billion.

The company's full-year guidance assumes a "measured" consumer environment, with variable consumer spending throughout the year, it said. The outlook doesn't reflect any substantial impact from new tariffs and regulations, the group added.