Signet Jewelers (SIG) investor relations material

Executive summary

• Sales for the quarter increased 3.0% year-over-year to $1.54 billion, with same-store sales up 2.0% driven by growth in fashion and services, despite a drag from James Allen.

• Adjusted operating income grew over 20% to $85.4 million, with gross margin rate up 60 basis points to 38.6%.

• The Grow Brand Love strategy advanced, focusing on merchandise, marketing, customer experience, and operational realignment, with key leadership hires.

• Well positioned for the holiday season with momentum, strategic focus, and expanded lab-grown diamond (LGD) fashion assortment.

• Operating income was $2.8 million, reversing a $100.9 million loss in the prior year quarter.

Financial highlights

• Revenue exceeded $1.5 billion for the quarter, with 2% same-store sales 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 for the quarter was $591.9 million (38.6% of sales), up from $566.3 million (38.0%).

• Free cash flow exceeded $60 million, improving by nearly $50 million over the prior year.

• Cash and cash equivalents at quarter end were $281.4 million, with no outstanding debt.

Outlook and guidance

• Full-year FY26 sales guidance raised to $6.67–$6.82 billion, with 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 per share.

• Q3 sales expected between $1.34 billion and $1.38 billion, with same-store sales guidance of -1.25% to +1.25%.

• Guidance reflects flexibility for a measured consumer environment and tariff uncertainties.

• Fiscal 2026 outlook includes focus on merchandise assortment, pricing, and promotional strategies.