Signet Stock Spikes On Upbeat Q1 Earnings, Improved Guidance: Retail Turns More Optimistic

Shares of Signet Jewelers (SIG) jumped over 13% in Tuesday’s pre-market after its first-quarter (Q1) earnings outpaced market expectations. 

The jewelry giant’s revenue climbed 2% year-on-year (YoY) to $1.54 billion, beating the analyst consensus estimate of $1.52 billion, as per Finchat data. The rise was propelled by a 2.5% lift in same-store sales, a sharp contrast to the 8.9% decline it experienced a year earlier.

Adjusted earnings per share (EPS) rose to $1.18, exceeding the analyst consensus estimate of $1.03. 

Gross profit climbed by $26 million, reaching $598.8 million, supported by a 100 basis point improvement in margins to 38.8%. The uptick was credited to better merchandise margins and cost leverage. 

Meanwhile, SG&A expenses rose modestly to $526 million but remained flat as a percentage of revenue at 34.1%.

Operating income ticked lower 3.4% YoY to $48.1 million with the margin contracting 20 basis points to 3.1%. 

The company repurchased approximately 2.1 million shares for $117.4 million in the first quarter alone. Following the first quarter, an additional $15 million worth of stock was retired, and nearly $600 million in repurchase capacity remains.

Signet's Board of Directors has declared a quarterly cash dividend of $0.32 per share for the second quarter (Q2) of FY26, payable Aug. 22, 2025, to shareholders of record on July 25, 2025, with an ex-dividend date of July 25, 2025.

The company raised its adjusted EPS forecast for FY26, now expecting a range of $7.70 to $9.38, compared to its previous estimate of $7.31 to $9.10. 

Signet also raised the lower end of its revenue outlook for FY26 to $6.57 billion to $6.80 billion from the previous guidance of $6.53 billion to $6.80 billion. The company now expects Q2 revenue to be between $1.47 billion and $1.51 billion.

Inventory saw a modest 1% year-over-year increase, ending the quarter at $2 billion. Signet held $264.1 million in cash and equivalents as of May. 3. 

“Our three largest brands–Kay, Zales, and Jared–all saw sequential comp sales improvement from the fourth quarter on higher margins, highlighting the impact of our outsized focus on our larger brands,” said CEO J.K. Symancyk.

On Stocktwits, retail sentiment around Signet turned ‘extremely bullish’ from ‘bullish’ the previous day.

Signet stock has lost over 17% year-to-date and over 38% in the last 12 months.

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