Signet Jewelers Limited (NYSE:SIG) reported fourth-quarter results that topped analyst expectations, but the company’s shares slipped about 2.25% after its fiscal 2027 outlook came in below Wall Street forecasts.
The jewelry retailer posted adjusted earnings per share of $6.25 for the quarter ended January 31, 2026, exceeding the analyst consensus estimate of $5.93 by $0.32. Revenue totaled $2.35 billion, slightly ahead of the $2.34 billion forecast, although it declined 0.3% year over year.
Same-store sales decreased 0.7% during the quarter. For the full fiscal year 2026, revenue rose 1.6% to $6.81 billion, supported by a 1.3% increase in comparable store sales.
Investor sentiment weakened after the company issued fiscal 2027 guidance that fell short of expectations. Signet projected adjusted earnings per share between $8.80 and $10.74, with a midpoint of $9.77 that is below the analyst consensus estimate of $10.59. The company also forecast revenue ranging from $6.6 billion to $6.9 billion, with the midpoint of $6.75 billion sitting near the low end of the $6.9 billion consensus estimate.
“FY26 delivered over a point of comp growth driven by heightened focus on our three largest brands – Kay, Zales, and Jared,” said J.K. Symancyk, Chief Executive Officer. “As we continue to advance our Grow Brand Love strategy into its second year, we expect to further strengthen our foundation for sustainable long-term growth and drive increased shareholder value.”
The fiscal 2027 outlook assumes a reduction in net revenue of $60 million to $80 million related to the transition of the James Allen brand, with only minimal impact expected on adjusted operating income. As part of the shift, Signet plans to reposition James Allen as a proprietary product collection while moving its merchandise to the Blue Nile website, with jamesallen.com expected to be phased out during the second quarter.
Adjusted operating income for the fourth quarter came in at $327.3 million, down from $355.5 million in the same period a year earlier. Gross margin declined by 60 basis points to 42.0% of sales, reflecting slightly lower merchandise margins and the impact of fixed cost deleveraging.
Signet’s board also approved a nearly 10% increase in its quarterly dividend to $0.35 per share, marking the fifth consecutive year of dividend growth.