Signet Jewelers 2026 Q1 Earnings Beats Expectations as EPS Rises 187.8%

Signet Jewelers (SIG) reported its fiscal 2026 Q1 earnings on June 3rd, 2025. Signet exceeded expectations with a 2% revenue increase to $1.54 billion and adjusted earnings per share (EPS) of $1.18 compared to analysts' estimates of $1.03. The company raised its full-year guidance, expecting sales between $6.57 billion to $6.80 billion. The midpoint of $6.69 billion surpasses previous forecasts, reflecting confidence in its transformation strategy. This adjusted outlook indicates resilience amidst a dynamic macro environment and reflects ongoing cost-saving efforts.

Revenue
Signet Jewelers witnessed a 2.0% rise in total revenue for 2026 Q1, reaching $1.54 billion, up from $1.51 billion in 2025 Q1. The bridal segment emerged as the prominent contributor with $692.70 million, followed by the fashion segment generating $549.40 million. Additionally, watches accounted for $69.50 million, services brought in $191.30 million, and other segments rounded off with $38.70 million in revenue.

Earnings/Net Income
Signet Jewelers returned to profitability with an EPS of $0.79 in 2026 Q1, marking a substantial 187.8% increase from the previous year's loss of $0.90 per share. However, net income fell to $33.50 million, a 35.7% decline from 2025 Q1's $52.10 million. Despite the decline in net income, the positive EPS signals a favorable earnings performance.

Price Action
The stock price of Signet Jewelers dropped 3.61% during the latest trading day but jumped 13.20% during the most recent full trading week and surged 25.57% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Signet Jewelers (SIG) shares following a quarterly revenue drop and holding them for 30 days resulted in a return of 12.60%, significantly underperforming the benchmark return of 38.41%. The strategy's compound annual growth rate (CAGR) was 4.07%, with a maximum drawdown of -58.85% and a Sharpe ratio of 0.08, indicating high risk and moderate returns. This approach underscores the volatility associated with buying on revenue dips, suggesting investors may face challenges in achieving substantial gains without exposure to significant risk.

CEO Commentary
James Kevin Symancyk, CEO & Director, expressed gratitude to the team for delivering results that exceeded expectations, highlighted by same-store sales and adjusted operating income growth. He emphasized that the "Grow Brand Love" strategy is early in delivering sustainable growth by aligning brands with customer expectations and optimizing product assortments, particularly in bridal and fashion categories. Symancyk noted the improvement in fashion sales driven by key gifting price points and the success of centralized marketing efforts, which increased impressions significantly. He conveyed confidence in the team's ability to navigate the dynamic macro landscape and manage controllable levers effectively.

Guidance
For the second quarter, Signet Jewelers expects total sales between $1.47 billion and $1.51 billion, with same-store sales ranging from a decline of 1.5% to an increase of 1%. For the fiscal year, the company has increased the lower end of its sales guidance to a range of $6.57 billion to $6.8 billion. Adjusted EPS is anticipated in the range of $7.70 to $9.38 per diluted share. Capital expenditures for the year are projected at $145 million to $160 million, reflecting a commitment to organic growth while maintaining financial flexibility.

Additional News
Signet Jewelers has announced a significant share buyback, repurchasing over 5% of its outstanding shares year-to-date, reflecting confidence in its financial health and shareholder value. Additionally, the company has seen changes in its executive team, appointing Joan Hilson as the Chief Operating and Financial Officer. In a noteworthy philanthropic effort, Signet Jewelers reached a record $10 million in fundraising benefiting St. Jude Children's Research Hospital, showcasing its dedication to corporate social responsibility. These developments highlight Signet's strategic initiatives beyond earnings, emphasizing corporate governance and community engagement.