Signet Jewelers shares soar as retailer lifts profit outlook on cost discipline

Signet Jewelers shares soar as retailer lifts profit outlook on cost discipline

Wed, September 9, 2026 at 6:23 PM GMT+3 2 min read

• SIG -4.65%

Signet Jewelers Limited (NYSE:SIG) raised its full-year profit forecast after second-quarter earnings beat Wall Street estimates, sending shares up 20%.

The jewelry retailer posted adjusted earnings per share of $2.19 for the quarter, well above analyst estimates of $1.74 and up 36% from a year earlier.

Adjusted operating income came in at $107.2 million, topping estimates of $89.7 million and rising 26% year-over-year.

Revenue was flat year-over-year at $1.5 billion, falling short of the $1.53 billion analysts had expected. Same-store sales rose 2.2% in the quarter.

Gross margin expanded 80 basis points to 39.4%, while adjusted operating margin rose 140 basis points to 7%.

By segment, North America generated $1.4 billion in revenue, while international revenue totaled $96.6 million.

For fiscal 2027, Signet raised its adjusted EPS guidance to a range of $10.45 to $12.15, up from its prior outlook of $9.20 to $11, and above the $10.82 analyst estimate. The company also lifted its adjusted operating income guidance to $535 million to $605 million, from $480 million to $560 million previously, and raised its adjusted EBITDA outlook to $730 million to $800 million, up from $665 million to $745 million.

Signet narrowed its full-year same-store sales guidance to a range of flat to 2.5%, compared with its previous forecast of -0.75% to 2.5%. Revenue guidance for the year was left unchanged at $6.7 billion to $6.9 billion.

For the third quarter, Signet guided revenue of $1.37 billion to $1.41 billion, adjusted operating income of $31 million to $48 million, and adjusted EBITDA of $82 million to $100 million.

Analysts at Jefferies said the quality of the quarter stood out, pointing to positive comparable sales across every fine jewelry brand, a 6% rise in average unit retail, and cost discipline that pushed EBITDA and margins well ahead of plan.

The brokerage kept a "Buy" rating on the stock, citing self-help initiatives, capital returns and improving brand momentum, and said management's raised guidance, expanded buyback and new long-dated credit partnership set up a confident run into the holiday season.