Signet Jewelers (SIG) investor relations material

Executive summary

• Achieved third consecutive quarter of positive same-store sales, with Q3 FY26 same-store sales up 3% and total sales rising 3.1% year-over-year to $1.39 billion, led by Kay, Zales, and Jared brands.

• Merchandise margin expanded 80 basis points, with gross margin improving to 37.3% of sales, driven by higher average unit retail and refined pricing strategies.

• Adjusted operating income more than doubled to $32 million, and net income attributable to common shareholders reached $20 million.

• Well positioned for the holiday season with focused assortment, modernized marketing, and strategic inventory investments.

• Operating income rose to $23.9 million (1.7% of sales), reflecting stronger sales and lower impairment charges.

Financial highlights

• Q3 revenue was $1.3918 billion, with 3% comp growth year-over-year and gross margin rate up 130 basis points to 37.3%.

• Average unit retail expanded 7%, with fashion AUR up 8% and bridal AUR up 6%.

• Adjusted operating income reached $32 million, and adjusted EPS increased more than 2.5x year-over-year to $0.63.

• Free cash flow improved by over $100 million in Q3 and $150 million year-to-date.

• Net cash position at quarter end was $234.7 million, with no outstanding debt and $1.2–1.4 billion in available liquidity.

Outlook and guidance

• Raised the low end of full-year same-store sales guidance to down 0.2%, maintaining high end at 1.75%+; Q4 same-store sales range of +0.5% to -5%.

• Adjusted operating income forecasted at $465–$515 million; adjusted EBITDA at $650–$700 million; adjusted EPS at $8.43–$9.59.

• Capital expenditures expected at $145–$160 million for the year, focused on new stores, renovations, and digital investments.

• Q4 FY26 sales expected at $2.24–$2.37 billion.

• Guidance reflects Q3 outperformance, tariff mitigation, and a cautious Q4 outlook due to external disruptions and consumer softness.