Shares of Signet Jewelers Limited (NYSE:SIG) jumped in early trading Tuesday after the world’s largest diamond jewelry retailer posted better-than-expected quarterly earnings and raised its full-year profit forecast, citing resilient consumer demand and strong performance across its store brands.
The company reported adjusted earnings per share of $1.18 for the first quarter of fiscal 2026, beating analyst expectations, as revenue rose 2% to $1.54 billion.
Same-store sales climbed 2.5%, while the average transaction value increased by 8%, helped by improved pricing strategies and disciplined inventory management.
Signet said its flagship banners—including Kay, Zales, and Jared—saw sequential monthly sales improvement during the quarter, driving both revenue growth and margin expansion.
Boosted by the strong start to the year and following a more than 5% reduction in its outstanding shares through buybacks, the company raised its full-year adjusted EPS guidance and lifted the low end of its sales forecast. It now expects fiscal 2026 revenue between $6.57 billion and $6.8 billion.
While acknowledging continued economic uncertainty, Signet said it remains confident in its outlook, citing healthy consumer spending trends and ongoing investments in its stores, workforce, and sustainability efforts.
Adjusted operating income rose to $70.3 million in the quarter, while the company ended the period with $264 million in cash—down from a year ago due to share repurchases and debt payments. Inventory rose just 1% year-over-year.
Shares of Signet were up 10% at $94.70 in morning trading on the New York Stock Exchange.