Signet Jewelers Limited (NYSE:SIG), the world’s largest diamond jewelry retailer, saw its shares climb 5% in premarket trading on Tuesday following stronger-than-expected second-quarter fiscal 2026 results and an upward revision to its full-year outlook.
The company posted adjusted earnings per share of $1.61, comfortably exceeding the analyst consensus of $1.24. Revenue totaled $1.54 billion, surpassing the expected $1.5 billion and marking a 3.0% year-on-year increase. Same-store sales rose 2.0%, supported by a combined 5% gain across the Kay, Zales, and Jared brands.
Signet’s adjusted operating income jumped more than 20% to $85.4 million, with the operating margin widening to 5.6% from 4.6% in the prior-year quarter. The growth was underpinned by a 60-basis-point expansion in gross margin to 38.6% and disciplined cost control.
“Our second quarter results were driven by the expansion of on-trend fashion assortment and effective promotion and pricing strategies,” said J.K. Symancyk, Chief Executive Officer. “Our heightened focus on Kay, Zales, and Jared fueled a combined same store sales increase of 5% at these brands.”
The company raised its fiscal 2026 guidance, projecting revenue between $6.67 billion and $6.82 billion, up from the prior range of $6.57 billion to $6.80 billion. Adjusted EPS guidance was also increased to $8.04-$9.57, compared with the previous $7.70-$9.38 forecast.
For the third quarter, Signet anticipates revenue of $1.34 billion to $1.38 billion, with same-store sales expected to range from a 1.25% decline to a 1.25% increase.
During Q2, the average unit retail price of merchandise rose 9%, including a 4% increase for bridal items and a 12% jump for fashion pieces, demonstrating robust pricing power despite what the company calls a “measured consumer environment.”
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