Signet Jewelers Limited (NYSE:SIG) shares rose nearly 5% after the company reported first quarter financial results that beat earnings expectations and showed steady comparable sales growth, alongside an improved full-year outlook.
The company reported adjusted diluted earnings per share of $1.56, above analyst estimates of $1.32 to $1.38 and up roughly 32% year-over-year.
Revenue came in at approximately $1.55 billion, broadly in line with consensus expectations of $1.56 billion.
Comparable store sales increased 1.8% compared with the prior-year period, driven by an approximately 5% rise in merchandise average unit retail, with gains across both bridal and fashion categories.
The company also updated its fiscal 2027 outlook, narrowing its sales range to $6.7 billion to $6.9 billion, compared with a prior range of $6.6 billion to $6.9 billion. It maintained its same-store sales forecast of a decline of 0.75% to growth of 2.5%.
Adjusted EPS guidance was raised to $9.20 to $11.00 from $8.80 to $10.74, while adjusted EBITDA is now expected between $665 million and $745 million.
Signet said it continues to expect improved profitability and steady execution through the remainder of the fiscal year, supported by cost discipline and demand trends in key gifting and bridal categories.
"We drove topline growth in the first quarter with all categories up on a comparable sales basis,” Signet CEO J.K. Symancyk said in a statement.
“We also delivered positive performances for both Valentine’s Day in February as well as Mother’s Day to start the second quarter. These early proof points of our Grow Brand Love strategy show we can perform and transform at the same time.”
Jefferies wrote that Signet’s Q1 results strengthened its positive view on the stock, pointing to broad-based same-store sales growth and improving mix, with average unit retail rising about 5% across bridal and fashion categories.
The firm highlighted profitability as the key driver in the quarter, noting that adjusted EBITDA outperformance reflected SG&A leverage following last year’s restructuring efforts.
It also pointed to the company’s decision to raise full-year EPS guidance, attributing the update to solid execution in the quarter and stronger-than-expected demand around Mother’s Day.
Jefferies added that free cash flow generation continues to underpin the investment case, with capital returns supported by ongoing buybacks and a newly announced accelerated share repurchase program.
The firm said these factors reinforce its bullish outlook, maintaining that upside potential remains significant if current trends persist.