Signet Jewelers raised its adjusted earnings outlook for the year after swinging to a profit in the second quarter.

The jeweler, which owns Jared and Kay Jewelers, now expects annual adjusted earnings per share to be $10.45 to $12.15, up from its previous guidance of $9.20 to $11.

Signet reaffirmed its sales projection for the year to $6.7 billion to $6.9 billion, and narrowed its same-store sales outlook to flat to up 2.5%, from down by almost 1% to up 2.5%.

The higher outlook reflects strong operating performance so far this year, as well as additional share buybacks, refunds from tariffs and a new consumer credit agreement, Chief Operating and Financial Officer Joan Hilson said.

The company swung to a profit of $52.1 million or $1.33 a share, from a loss of $9.1 million, or 22 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $2.19, ahead of the $1.74 anticipated by analysts, according to FactSet.

Sales declined less than 1% to $1.53 billion, in line with analysts' expectations. Same-store sales increased 2.2%, ahead of the 1.9% growth that Wall Street was projecting.

In the current third quarter, Signet expects sales to be $1.37 billion to $1.41 billion, with same-store sales down 1% to up 2%. Analysts are looking for $1.39 billion in sales and 1.3% same-store sales growth, according to FactSet.

Signet renewed its consumer credit agreement with Bread Financial. The extended partnership runs through December 2035 and ensures that consumers will have consistent access to financing options.

The agreement also includes better technology, analytics for data-driven marketing and improved customer experience and support, the company said.

Signet also plans to enter an accelerated share repurchase program of $125 million, Hilson said. The planned program is the result of Signet's strong cash position, and is expected to bring the company's year-to-date capital returns to 12% of its recent market capitalization, she said.