Signet Jewelers Limited (NYSE:SIG) delivered a stronger-than-expected set of third-quarter results on Thursday, posting solid sales momentum and raising its outlook for fiscal 2026 — even as the stock fell 3.1% following the announcement.
The jewelry retailer reported $0.63 in adjusted EPS for the quarter, far ahead of analyst expectations of $0.24. Revenue reached $1.4 billion, beating the $1.36 billion consensus and marking a 3.1% increase from a year earlier.
Comparable-store sales also rose 3%, reflecting renewed strength across Signet’s major banners.
Higher merchandise prices supported profitability, with average unit retail up 7%, including 6% growth in bridal and 8% in fashion jewelry. Gross margin improved by 130 basis points to 37.3%, despite facing the dual pressures of tariffs and elevated gold prices.
CEO J.K. Symancyk credited the company’s strategic focus for the strong results:
“Signet’s Grow Brand Love strategy delivered 3% same store sales growth led by Kay, Zales, and Jared which reflects our continued focus on our largest brands,” he said.
“Our balanced diamond assortment strategy, alongside ongoing stabilization in diamond retail prices, is driving growth and expanded average retails.”
Looking to the fourth quarter, Signet expects revenue between $2.24 billion and $2.37 billion and same-store sales ranging from –5% to +0.5%.
The company also raised its full-year fiscal 2026 guidance. It now sees total sales of $6.70 billion to $6.83 billion, with same-store sales between –0.2% and +1.75%. Adjusted EPS is projected to land between $8.43 and $9.59, compared with the prior $8.04 to $9.57 range.
CFO Joan Hilson said the updated forecast incorporates several factors:
She noted the revision reflects “third quarter outperformance, further tariff mitigation efforts, and a measured outlook for the fourth quarter given external disruptions since late October and potential continued softness in consumer confidence.”
Signet continued to return capital to shareholders, repurchasing roughly 301,000 shares for about $28 million during the quarter. The board also declared a quarterly dividend of $0.32 per share, payable February 20, 2026.