Signet Jewelers (SIG) investor relations material

Executive summary

• Achieved same store sales growth of 2.2% year-over-year in Q2 FY27, with positive comps across all fine jewelry brands and high single-digit unit growth at higher price points.

• Operating margin expanded due to comp growth and disciplined spending; renewed consumer credit agreement expected to further enhance margins and customer experience.

• Net income for Q2 was $52.1 million, compared to a net loss of $9.1 million in the prior year.

• Announced a $125 million accelerated share repurchase (ASR) program, bringing year-to-date capital returns to 12% of recent market cap.

• Raised full-year adjusted EPS guidance by over 10% based on strong year-to-date performance, additional share repurchases, tariff refunds, and new credit agreement terms.

Financial highlights

• Q2 sales were $1.53 billion, with same store sales up 2.2% and average unit retail (AUR) growth of 6% year-over-year.

• Gross margin improved to $602.4 million (39.4% of sales), up 80 basis points, aided by $15 million in tariff refunds and lower inventory/distribution costs.

• Adjusted operating income rose 25% to $107 million, with 140 basis points of rate expansion.

• Adjusted diluted EPS increased 36%, driven by operating income growth, higher interest income, and a lower share count.

• Cash and cash equivalents at quarter end were $526.8 million, up from $281.4 million a year ago; inventory down 1% year-over-year.

Outlook and guidance

• Fiscal 2027 sales guidance maintained at $6.7–$6.9 billion; adjusted operating income raised to $535–$605 million.

• Adjusted EBITDA guidance increased to $730–$800 million; adjusted diluted EPS raised to $10.45–$12.15.

• FY2027 same store sales expected to be flat to up 2.5%, excluding James Allen and Blue Nile from the metric.

• Q3 sales expected at $1.37–$1.42 billion, with same store sales between -1.0% and 2.0%.

• Capital expenditures for FY2027 expected at $150–$180 million, focused on new stores, renovations, and digital investments.