Signet Jewelers (SIG) Q4 2025 earnings summary

Executive summary

• Fourth quarter sales of $2.4 billion, down 5.8% year-over-year, with same-store sales down 1.1%; full year sales of $6.7 billion, down 6.5%.

• Delivered positive same-store sales in January and during Valentine's Day, with growth across all categories.

• Launched the 'Grow Brand Love' strategy, emphasizing brand-centric growth, product innovation, and operational efficiency.

• Initiated organizational restructuring to streamline leadership, centralize functions, and reduce senior leadership by 30%.

• Generated over $400 million in free cash flow, enabling nearly 20% reduction in diluted share count and $1 billion returned to shareholders.

Financial highlights

• Q4 revenue down 6% year-over-year, but ahead of updated guidance; same-store sales down 1.1%.

• Adjusted Q4 operating income of $355.5 million (15.1% margin), down from $409.7 million; adjusted EPS of $6.62, nearly flat year-over-year.

• Q4 gross margin $1 billion (42.6% of sales), down 70 bps year-over-year; gross merchandise margin up 30 bps, offset by fixed cost deleverage.

• Free cash flow for FY25 was $437.9 million (88% cash conversion of adjusted operating income).

• Cash and equivalents at year-end: $604 million; total liquidity at $1.7 billion.

Outlook and guidance

• FY26 sales guidance: $6.53–$6.8 billion; same-store sales down 2.5% to up 1.5%; adjusted operating income $420–$510 million; EPS $7.31–$9.10.

• Q1 FY26 sales expected at $1.5–$1.53 billion, with same-store sales flat to up 2%.

• CapEx expected at $145–$160 million, with 10–15 new store openings and 15 repositionings.

• $50–$60 million in cost savings expected from reorganization in FY25, annualized impact of at least $100 million.

• Guidance assumes a measured consumer environment and annual tax rate of 23–25%.