WS Investor
09 Sep 2026, 14:11
Signet Jewelers Stock Surges 17% as Profitability Improves and 2027 Guidance Jumps
Signet Jewelers (NYSE: SIG) shares surged about 17% Wednesday after the jewelry retailer delivered sharply improved second-quarter profitability, raised its fiscal 2027 earnings outlook and expanded its share repurchase program.
Second-quarter sales were $1.53 billion, while same-store sales increased 2.2%. Merchandise average unit retail rose about 6%, with growth across both Bridal and Fashion categories. Adjusted operating income climbed to $107.2 million from $85.4 million, while adjusted diluted EPS jumped to $2.19 from $1.61.
Margins strengthened considerably. Gross margin expanded 80 basis points to 39.4%, helped by lower inventory and distribution costs as well as about $15 million of previously paid tariff refunds. Adjusted operating margin improved to 7.0% from 5.6%.
Signet also raised its fiscal 2027 adjusted EPS guidance by more than 10%, to $10.45–$12.15 from $9.20–$11.00. Adjusted EBITDA guidance increased to $730–$800 million from $665–$745 million, while the lower end of its same-store sales outlook was lifted to flat from a 0.75% decline.
Adding to the positive catalysts, Signet plans a $125 million accelerated share repurchase and expanded its remaining buyback authorization to $700 million.
The combination of stronger margins, sharply higher earnings guidance and increased capital returns appears to be driving Wednesday’s 17% rally.
Signet Jewelers (NYSE: SIG) shares surged about 17% Wednesday after the jewelry retailer delivered sharply improved second-quarter profitability, raised its fiscal 2027 earnings outlook and expanded its share repurchase program.
Second-quarter sales were $1.53 billion, while same-store sales increased 2.2%. Merchandise average unit retail rose about 6%, with growth across both Bridal and Fashion categories. Adjusted operating income climbed to $107.2 million from $85.4 million, while adjusted diluted EPS jumped to $2.19 from $1.61.
Margins strengthened considerably. Gross margin expanded 80 basis points to 39.4%, helped by lower inventory and distribution costs as well as about $15 million of previously paid tariff refunds. Adjusted operating margin improved to 7.0% from 5.6%.
Signet also raised its fiscal 2027 adjusted EPS guidance by more than 10%, to $10.45–$12.15 from $9.20–$11.00. Adjusted EBITDA guidance increased to $730–$800 million from $665–$745 million, while the lower end of its same-store sales outlook was lifted to flat from a 0.75% decline.
Adding to the positive catalysts, Signet plans a $125 million accelerated share repurchase and expanded its remaining buyback authorization to $700 million.
The combination of stronger margins, sharply higher earnings guidance and increased capital returns appears to be driving Wednesday’s 17% rally.
