Signet Jewelers (NYSE:SIG) saw its stock climb 7.9% in premarket trading on Tuesday after reporting first-quarter fiscal 2026 earnings that exceeded analyst expectations and raising its full-year outlook.
The company posted adjusted earnings per share of $1.18, beating the analyst consensus of $1.03. Quarterly revenue reached $1.5 billion, slightly below the $1.52 billion forecast but up 2% year-over-year. Same-store sales grew 2.5% compared to the first quarter of fiscal 2025.
“We delivered positive same-store sales growth each month of the quarter, and into May, by bolstering our offerings at key price points and continuing the evolution of our assortment,” said J.K. Symancyk, Chief Executive Officer.
Signet raised its adjusted EPS guidance for fiscal 2026 to a range of $7.70 to $9.38, up from the prior forecast of $7.31 to $9.10 and above the analyst consensus of $8.35. The company also slightly increased the lower end of its full-year revenue outlook to between $6.57 billion and $6.80 billion, up from $6.53 billion to $6.80 billion previously.
The improved forecast reflects the strong first-quarter performance, ongoing cost-saving measures, and the repurchase of more than 5% of outstanding shares year-to-date.
Gross margin widened by 100 basis points to 38.8%, helped by merchandise margin gains and fixed-cost leverage. Adjusted operating income rose to $70.3 million from $57.8 million a year earlier.
Looking ahead to the second quarter, Signet expects revenue between $1.47 billion and $1.51 billion, with same-store sales projected between -1.5% and +1.0%.