Signet Jewelers, reporting sales gains for the first quarter and displaying confidence in its transformation efforts, saw its share price spike 16 percent in pre-market trading Tuesday.
Net income was $33.5 million, or 78 cents per diluted share for the quarter ended May 3, when results were pulled down by restructuring charges totaling 46 cents per share. A year ago, earnings stood at $52.1 million, or 90 cents.
Adjusted operating income increased to $70.3 million from $57.8 million.
Sales rose 2 percent to $1.54 billion from $1.51 billion, while comparable-store sales increased 2.5 percent.
The results, as well as a slightly elevated outlook on sales for 2025, pushed shares up to $77.25 before the opening bell.
“We delivered positive same-store sales growth each month of the quarter, and into May, by bolstering our offerings at key price points and continuing the evolution of our assortment. Our three largest brands – Kay, Zales and Jared – all saw sequential comp sales improvement from the fourth quarter on higher margins, highlighting the impact of our outsized focus on our larger brands,” said J.K. Symancyk, chief executive officer, in a statement. Signet also operates Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, JamesAllen.com, Rocksbox, Peoples Jewellers, H. Samuel and Ernest Jones.
“The Grow Brand Love strategy is gaining traction and our reorganization is substantially complete. While we’re in the early innings of Grow Brand Love, our strategy is already driving growth in both bridal and fashion. I would like to thank the team for activating our strategy and delivering positive initial results.”
J.K. Symancyk.
Courtesy
The strategic plan is intended to accelerate growth in several ways after the company experienced a difficult 2024. On the agenda, more style and product innovation, expansion into new categories such as gifts, clearly differentiating the brands in the portfolio and changing their perception from “banners to brands,” building brand loyalty, creating compelling experiences for customers including new store designs, emphasizing speed to market and “harnessing centralized core capabilities.” The company is also closing scores of underperforming stores and previously announced it is reducing senior leadership by 30 percent and centralizing key functions.
Aside from those efforts, Joan Hilson, chief operating and financial officer, said in her prepared statement: “Our renewed promotional strategy and inventory management delivered both gross merchandise margin and adjusted operating margin expansion in the quarter with sales improvement outpacing inventory growth. Given our positive performance, we are increasing the low end and maintaining the high end of our fiscal 2026 operating guidance. This outlook reflects the current macro environment and current tariffs as well as on track cost savings initiatives. Further, we are raising our adjusted EPS guidance to reflect the repurchase of more than 5 percent of outstanding shares year to date.”
Signet brought up the low-end of guidance for 2025 and is now forecasting $6.57 billion to $6.8 billion in sales, from its previous projection of $6.53 billion to $6.8 billion in sales. Same-store sales are now seen ranging from down 2 percent to up 1.5 percent, versus the previous guidance of down 2.5 percent to up 1.5 percent.
Adjusted operating income is seen ranging from $430 million to $510 million, versus the earlier projection of from $420 million to $510 million.
The total sales outlook anticipates a “measured consumer environment, providing for variability in consumer spending over the year,” the company said. Signet also indicated that it expects to absorb current tariffs within the adjusted operating income range provided, and that the forecast
excludes any potential impact resulting from any new tariffs and the potential outcome of reciprocal tariffs.
