Signet Jewelers reported second-quarter fiscal 2027 adjusted diluted earnings per share of $2.19, up from $1.61, as comparable sales growth, cost discipline and stronger margins contributed to improved profitability.
Quarterly sales were $1.528 billion, compared with $1.535 billion a year earlier, while same-store sales increased 2.2%. Merchandise average unit retail increased approximately 6%, with growth across both Bridal and Fashion categories.
Operating income increased to $87.5 million from $2.8 million, while adjusted operating income rose to $107.2 million from $85.4 million. GAAP diluted EPS improved to $1.33 from a loss of $0.22 per share.
Gross margin increased 80 basis points to 39.4%, helped by approximately $15 million of refunds for tariffs previously paid. SG&A declined to $493.6 million from $505.3 million.
Signet ended the quarter with $526.8 million in cash, compared with $281.4 million a year earlier. The company repurchased approximately $87 million of shares during the quarter and another $33 million afterward.
Signet plans to enter into a $125 million accelerated share repurchase program, while its board expanded the remaining repurchase authorization by approximately $385 million to $700 million.
The company also extended its consumer credit partnership with Bread Financial through December 2035, including enhancements focused on technology, analytics, customer experience and cross-shopping among Signet brands.
Signet raised its fiscal 2027 outlook. Adjusted operating income is now expected at $535 million to $605 million, up from $480 million to $560 million, while adjusted EBITDA is projected at $730 million to $800 million, compared with $665 million to $745 million previously.
Adjusted diluted EPS guidance increased by more than 10% to $10.45 to $12.15 from $9.20 to $11.00. Full-year sales guidance remains $6.7 billion to $6.9 billion.
KEY QUOTES:
“We delivered another quarter of comp sales growth with a positive comp performance in all fine jewelry brands. This includes high single-digit unit growth at higher price points. Building on this momentum, we are accelerating our key brand initiatives, including merchandise refreshes, enhancements to both the online and in-store customer experience, and a more modern and emotionally engaging marketing approach. By leveraging the full strength of our diversified portfolio, we are entering the back half of the year well-positioned to deliver compelling value throughout the holiday season for customers across a broad range of income levels.”
J.K. Symancyk, Chief Executive Officer of Signet Jewelers
“We delivered operating margin expansion this quarter reflecting comp growth and spend discipline. In early September, we proactively renewed our consumer credit agreement which is expected to deliver further margin expansion over time and provide meaningful enhancements to the customer experience.”
“Given the strength of our cash position, we intend to enter into a $125 million ASR program this month which will bring our year-to-date capital returns to 12% of recent market cap. We are raising our full year adjusted EPS guidance by over 10% to reflect year-to-date operating performance, additional share repurchases, refunds of tariffs previously paid, and the terms of the new consumer credit agreement.”
Joan Hilson, Chief Operating and Financial Officer of Signet Jewelers
