Signet Jewelers Limited (NYSE:SIG) reported third-quarter results that beat expectations, but the company’s cautious guidance for the holiday season sent its shares down 3.5% in early trading.
For the three months ended October, Signet posted revenue of $1.39 billion, up 3.1% from a year earlier. Same-store sales rose 3%, marking the third consecutive quarter of positive growth, driven by high single-digit gains in both the bridal and fashion categories.
Adjusted diluted earnings per share jumped to $0.63 from $0.24 a year ago, while gross margin expanded 130 basis points to 37.3%.
The company highlighted the success of its “Grow Brand Love” strategy and strength across its core banners, including Kay, Zales, and Jared, noting robust pricing power and margin expansion.
However, management issued a cautious outlook for the fourth quarter, citing “external disruptions” and softening consumer confidence since late October. The company forecast total Q4 sales of $2.24 billion to $2.37 billion, implying same-store sales could decline by up to 5%.
While the full-year fiscal 2026 guidance was slightly raised on the lower end—total sales now expected between $6.7 billion and $6.83 billion, and adjusted EPS between $8.43 and $9.59—most of the upgrade reflects the strong third-quarter performance rather than improved expectations for the holiday period.
Analysts at Jefferies said in a note: “Overall, it’s clear SIG is a business in growth mode again that generates cash, and valuation is compelling,” but they added that investors will be looking for more color on Black Friday and the holiday shopping season given the wide Q4 guidance range.
Signet ended the quarter with $234.7 million in cash and equivalents and inventory down 1% year-over-year.