Signet Raises Fiscal 2027 Adjusted Earnings Outlook
The jeweler lifted full-year adjusted diluted EPS guidance to $10.45 to $12.15 after second-quarter same-store sales growth of 2.2% and a $125 million accelerated share repurchase.
Signet Jewelers Limited (SIG) raised its Fiscal 2027 adjusted diluted earnings outlook to a range of $10.45 to $12.15 a share from $9.20 to $11.00, citing year-to-date operating results, extra share buybacks, refunds of tariffs previously paid, and the terms of a renewed consumer credit agreement.
The jeweler also lifted full-year adjusted operating income guidance to $535 million to $605 million from $480 million to $560 million, and raised the same-store sales range to flat to 2.5% from (0.75%) to 2.5%. Total sales guidance stayed at $6.7 billion to $6.9 billion.
Same-store sales growth accelerated to 2.2% in the 13 weeks ended August 1, 2026, from 1.8% in the first quarter of Fiscal 2027. Sales were $1.528 billion. Merchandise average unit retail rose approximately 6%, with growth in both Bridal and Fashion.
Chief Executive Officer J.K. Symancyk said the company delivered comp sales growth, with positive comp performance in all fine jewelry brands, including high single-digit unit growth at higher price points.
GAAP operating income was $87.5 million, or 5.7% of sales, compared with $2.8 million, or 0.2% of sales, a year earlier. Adjusted operating income was $107.2 million, or 7.0% of sales, compared with $85.4 million, or 5.6% of sales, a year earlier. Diluted earnings were $1.33 a share, compared with a loss of $0.22 a share a year earlier; the current-quarter figure included $0.86 of asset impairment charges net of taxes. Adjusted diluted EPS was $2.19, compared with $1.61 a year earlier.
Gross margin was $602.4 million, or 39.4% of sales, up 80 basis points from the year-ago quarter. The improvement reflected approximately $15 million of refunds for tariffs previously paid, which was $13 million higher than expected, alongside lower inventory and distribution costs, partly offset by higher gold costs. SG&A was $493.6 million, or 32.3% of sales, down from $505.3 million, or 32.9% of sales, a year earlier. The leverage in SG&A was driven by cost reductions from operating model changes and same-store sales growth.
North America, which accounted for $1.428 billion of sales, posted same-store sales growth of 1.9% and operating income of $103.5 million, or 7.2% of segment sales. International sales were $96.6 million, with same-store sales growth of 6.0% and an operating loss of $1.6 million. North America adjusted operating income was $123.0 million, or 8.6% of segment sales.
Blue Nile and James Allen sales were excluded from same-store sales beginning in the second quarter of Fiscal 2027 to reflect the transition of those brands.
On August 1, 2026, Signet operated 2,534 stores totaling 4.0 million square feet of selling space. Store count decreased by 48 from year-end Fiscal 2026.
Cash and cash equivalents were $526.8 million as of quarter end. Inventory ended the quarter at $2.0 billion, down 1% from the year-ago quarter.
In the second quarter, Signet repurchased approximately 1.0 million common shares for $87 million. Subsequent to the quarter, it repurchased an additional 0.4 million shares for approximately $33 million. The board expanded the remaining repurchase authorization by approximately $385 million to a total of $700 million. The company intends to enter a $125 million accelerated share repurchase in the near term, after which approximately $575 million of authorization would remain.
Signet and Bread Financial entered into an extended consumer credit partnership through December of calendar 2035, with a profit-sharing arrangement and a signing bonus to be recognized over the life of the agreement. Fiscal 2027 guidance assumes $30 million to $40 million of non-comp revenue and gross margin from the new agreement, about $30 million of tariff refunds, and $60 million to $80 million of net revenue reduction related to the James Allen transition with a minimal impact on adjusted operating income.
For the third quarter of Fiscal 2027, Signet guides to sales of $1.37 billion to $1.41 billion, same-store sales of (1.0%) to 2.0%, adjusted operating income of $31 million to $48 million, and adjusted EBITDA of $82 million to $100 million.