Signet Jewelers (SIG) investor relations material

Executive summary

• Q2 FY26 sales increased 3% year-over-year to $1.54 billion, with same-store sales up 2% and eight consecutive months of positive comps through August.

• Adjusted operating income grew over 20% to $85.4 million, driven by comp growth, gross margin expansion, and cost savings.

• Strategic focus on Kay, Zales, and Jared led to a combined 5% same-store sales increase, supported by the Grow Brand Love strategy and enhanced marketing.

• Gross margin improved to 38.6% of sales, reflecting higher AUR and growth in services.

• Well positioned for the holiday season with momentum, strategic inventory, and targeted marketing.

Financial highlights

• Revenue for the quarter was $1.54 billion, with 2% comp growth led by fashion and services.

• Adjusted EPS was $1.61, up 29% year-over-year; GAAP diluted loss per share was $0.22, including $2.01 in non-cash impairment and restructuring charges.

• Gross margin rate expanded by 60 basis points to 38.6%, with merchandise margin up 30 basis points.

• Free cash flow for the quarter was $62.3 million, up from $15.8 million; cash and cash equivalents at quarter end were $281.4 million, with no outstanding debt.

• Adjusted EBITDA for Q2 was $128.7 million, up from $116.8 million.

Outlook and guidance

• FY26 sales guidance raised to $6.67–$6.82 billion; same-store sales expected between -0.75% and +1.75%.

• Adjusted operating income guidance increased to $445–$515 million; adjusted EPS guidance raised to $8.04–$9.57.

• Q3 sales expected at $1.34–$1.38 billion, with adjusted operating income of $3–$17 million.

• Guidance reflects a measured consumer environment and considers potential tariff impacts.

• The company is focused on optimizing merchandise assortment, pricing, and promotional strategies to navigate uncertainties.