How did a company known for its sparkle manage to outshine Wall Street’s expectations? As Signet Jewelers Limited SIG reports surprising earnings and raises its fiscal outlook, investors are left wondering what's driving this unexpected dazzle.
Signet Jewelers on Tuesday announced second-quarter adjusted earnings per share of $1.61, beating the analyst consensus estimate of $1.23.
Quarterly sales of $1.53 billion (+3% year over year) outpaced the Street view of $1.50 billion.
Signet Jewelers reported that same-store sales rose 2.0% in the second quarter of fiscal 2025.
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Merchandise average unit retail (AUR) rose 9%, including a 4% increase in Bridal and 12% in Fashion.
Operating income was $2.8 million, improving from a $100.9 million operating loss in the year-ago period.
“We grew Adjusted Operating Income more than 20% in the second quarter, led by comp growth, gross margin expansion, and cost savings related to our reorganization,” said Joan Hilson, chief operating and financial officer. “Reflecting second quarter results, expectations for the third quarter, and current tariff landscape, we’re raising our Fiscal 2026 guidance.”
Adjusted operating margin expanded to 5.6% from 4.6% in the year-ago period.
Cash and equivalents were $281.4 million as of quarter end, compared to $403.1 million in the year-ago period.
Inventory ended the quarter at $2.0 billion, nearly flat year over year.
Dividend
Signet declared a quarterly cash dividend on common shares of 32 cents per share for the third quarter of Fiscal 2026, payable Nov. 21.
Outlook
Signet raised its fiscal year 2026 adjusted EPS outlook to $8.04–$9.57 from $7.70–$9.38, versus an $8.97 analyst estimate.
It also lifted FY2026 sales guidance to $6.670–$6.820 billion from $6.570–$6.800 billion, compared with a $6.743 billion consensus.
SIG Price Action: Signet Jewelers shares were up 1.53% at $89.39 at the time of publication on Tuesday. The stock is trading within its 52-week range of $45.55 to $106.28, according to Benzinga Pro data.
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