Signet Jewelers (NYSE:SIG) moved more than 6% higher in premarket trading on Tuesday after reporting stronger-than-expected first-quarter results and increasing its outlook for fiscal 2027.
The jewelry retailer delivered earnings and revenue ahead of Wall Street forecasts, supported by positive comparable sales growth and improved average selling prices across key product categories.
First-Quarter Results Exceed Expectations
For the first quarter of fiscal 2027, Signet reported earnings per share of $1.56, surpassing analyst estimates of $1.38.
Revenue totaled $1.6 billion, also coming in ahead of the consensus forecast of $1.56 billion.
The results reflected continued consumer demand across the company’s portfolio of jewelry brands despite a challenging retail environment.
Comparable Sales Return to Growth
Same-store sales increased 1.8% compared with the prior-year period, providing an encouraging sign for the retailer’s underlying business performance.
Signet also reported that merchandise average unit retail prices rose approximately 5%, driven by strength in both bridal jewelry and fashion categories.
The combination of higher sales volumes and improved pricing contributed to the company’s better-than-expected quarterly performance.
Management Highlights Broad-Based Demand
Chief Executive Officer J.K. Symancyk said the company generated growth across all major merchandise categories during the quarter.
“We drove topline growth in the first quarter with all categories up on a comparable sales basis. We also delivered positive performances for both Valentine’s Day in February as well as Mother’s Day to start the second quarter,” said Symancyk.
Management pointed to the strong holiday-related demand as evidence that consumers continue to prioritize jewelry purchases for key gifting occasions.
Margins Remain Stable
Adjusted gross profit reached $589.2 million during the quarter, representing 37.9% of total sales.
The margin performance was broadly in line with the company’s expectations and demonstrated its ability to maintain profitability while driving sales growth.
Second-Quarter Outlook Mixed
For the second quarter, Signet expects revenue between $1.50 billion and $1.53 billion, slightly below analysts’ consensus estimate of $1.54 billion.
The company forecast same-store sales growth of 0.5% to 2.5% and adjusted EBITDA in a range of $125 million to $139 million.
While the near-term outlook was somewhat cautious, investors focused primarily on the stronger full-year forecast.
Company Raises Fiscal 2027 Guidance
Following the first-quarter beat, Signet increased its adjusted earnings outlook for the full fiscal year.
The company now expects adjusted EPS of $9.20 to $11.00, up from its previous guidance range of $8.80 to $10.74.
Signet also raised the lower end of its annual revenue forecast, now projecting total sales of between $6.7 billion and $6.9 billion compared with its prior range of $6.6 billion to $6.9 billion.
In addition, adjusted EBITDA guidance was increased at the lower end to a range of $665 million to $745 million.
The company also lifted the minimum expected level of adjusted operating income to $480 million from $470 million previously.
Share Buyback Program Provides Additional Support
Alongside its earnings announcement, Signet revealed plans to begin a $50 million accelerated share repurchase program later this month.
Following completion of the transaction, the company expects to retain approximately $355 million in remaining share repurchase authorization.
The buyback initiative underscores management’s confidence in the business and its commitment to returning capital to shareholders.
With improving sales trends, stronger earnings expectations and an expanded share repurchase program, investors responded positively to Signet’s latest results, sending the stock sharply higher ahead of the opening bell.