Signet Jewelers Limited (NYSE: SIG), the world’s largest retailer of diamond jewelry, reported improved results for the 13 weeks ended August 2, 2025 (second quarter fiscal 2026), driven by stronger assortments, brand performance, and margin expansion.
Performance Highlights
- Sales: $1.54 billion, up 3% year-over-year
- Same Store Sales (SSS): +2.0% (vs. –3.4% in Q2 FY25)
- Average Unit Retail (AUR): +9%, led by 12% growth in fashion jewelry
- Operating Income: $2.8 million (vs. a $100.9 million loss last year)
- Adjusted Operating Income: $85.4 million, up 24%
- Adjusted EPS: $1.61, compared to $1.25 in Q2 FY25
CEO J.K. Symancyk credited “on-trend fashion assortments, effective promotions, and brand strength at Kay, Zales, and Jared,” which together posted a 5% same store sales increase. He emphasized preparations for the holiday season with “the right inventory levels, new collections, and fresh marketing campaigns.”
CFO Joan Hilson highlighted a 20%+ increase in adjusted operating income, fueled by comp growth, gross margin expansion, and cost savings. Reflecting Q2 results and expectations for the second half, Signet raised its Fiscal 2026 guidance.
Profitability & Margins
- Gross Margin: $591.9 million, up $26 million, with margin rate improving 60 bps to 38.6%
- SG&A: $505.3 million (32.9% of sales), down 50 bps as a percentage of sales
- Diluted EPS: Loss of $0.22, including $2.01 in non-cash impairment and restructuring charges
Balance Sheet & Capital Allocation
- Cash: $281.4 million at quarter end (vs. $403.1 million last year)
- Inventory: $2.0 billion, flat year-over-year
- Share Repurchases: 446,000 shares (~$32 million) in Q2; $150 million YTD
- Dividend: $0.32 per share, payable November 21, 2025
Updated Fiscal 2026 Guidance
- Sales: $6.67–$6.82 billion (raised from $6.57–$6.80B)
- Same Store Sales: –0.75% to +1.75% (improved from –2.0% to +1.5%)
- Adjusted Operating Income: $445–$515 million (up from $430–$510M)
- Adjusted EPS: $8.04–$9.57 (previously $7.70–$9.38)
The company noted its forecast assumes a “measured consumer environment” and depends partly on tariff outcomes with India.
Purpose & Community Impact
Signet continues its 27-year partnership with St. Jude Children’s Research Hospital®, supporting the “Thanks and Giving®” holiday campaign with exclusive plush collectibles. To date, the company and its customers have raised more than $110 million for the hospital.
Investor Call
Management hosted a conference call on September 2, 2025 at 8:30 a.m. ET. A replay and transcript will be available for one year at www.signetjewelers.com.
About Signet
Signet operates ~2,600 stores across leading brands including Kay, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Peoples Jewellers, H. Samuel, and Ernest Jones.
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