Signet Jewelers beats Q3 expectations, FY26 guidance raised

Investing.com -- Signet Jewelers Limited (NYSE: SIG) reported stronger-than-expected third-quarter results on Thursday, with same-store sales growth of 3%, though shares fell 3.1%, despite FY26 guidance being raised.

The jewelry retailer posted adjusted earnings per share of $0.63 for the third quarter, significantly beating analyst estimates of $0.24. Revenue came in at $1.4 billion, surpassing the consensus estimate of $1.36 billion and representing a 3.1% increase compared to the same period last year.

The company’s performance was driven by strength across its major brands, with merchandise average unit retail prices increasing 7%, including 6% growth in bridal categories and 8% in fashion jewelry. Gross margin expanded by 130 basis points to 37.3%, despite challenges from tariffs and higher gold costs.

"Signet’s Grow Brand Love strategy delivered 3% same store sales growth led by Kay, Zales, and Jared which reflects our continued focus on our largest brands," said J.K. Symancyk, Chief Executive Officer. "Our balanced diamond assortment strategy, alongside ongoing stabilization in diamond retail prices, is driving growth and expanded average retails."

For the fourth quarter, Signet projects sales between $2.24 billion and $2.37 billion with same-store sales ranging from a 5% decline to a 0.5% increase. The company updated its full-year fiscal 2026 guidance, now expecting total sales of $6.70 billion to $6.83 billion, with same-store sales between -0.2% and +1.75%. Adjusted EPS is expected to be between $8.43 and $9.59, up from the previous forecast of $8.04 to $9.57.

Joan Hilson, Chief Operating and Financial Officer, noted that the updated guidance reflects "third quarter outperformance, further tariff mitigation efforts, and a measured outlook for the fourth quarter given external disruptions since late October and potential continued softness in consumer confidence."

The company continued its share repurchase program, buying back approximately 301,000 shares for about $28 million during the quarter. Signet’s board also declared a quarterly dividend of $0.32 per share, payable on February 20, 2026.

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