Signet Jewelers 2026 Q3 Earnings Strong Performance as Net Income Surges 185.7%

Signet Jewelers (SIG) reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue rising 3.1% to $1.39 billion and EPS surging 308.3% to $0.49. The company raised FY26 guidance, reflecting strong Q3 performance and effective tariff mitigation.

Revenue

Signet’s total revenue increased to $1.39 billion in Q3 2026, driven by robust demand across key segments. Bridal revenue led at $648.40 million, followed by Fashion at $451.60 million, Watches at $73.90 million, and Services at $185.60 million. Additional revenue streams, including Other categories, contributed $32.30 million, rounding out the total sales.

Earnings/Net Income

The company’s net income jumped 185.7% to $20 million in Q3 2026, with EPS rising to $0.49 from $0.12 in the prior year. This marked a significant acceleration in profitability, driven by operational efficiencies and strong revenue growth. The earnings performance underscores improved margin management and strategic execution.

Price Action

The stock price of Signet has declined sharply in recent trading sessions, falling 2.30% on the latest day, 17.13% for the week, and 14.96% month-to-date.

Post-Earnings Price Action Review

The strategy of buying SIG when earnings beat expectations and holding for 30 days resulted in a 4.89% return, significantly underperforming the benchmark return of 75.02%. The strategy’s CAGR was 1.02%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.03, indicating it managed risk well but offered minimal returns.

CEO Commentary

CEO David Shully highlighted Q3 success driven by customer engagement and inventory optimization, while noting ongoing supply chain cost challenges. Strategic investments in digital commerce and store personalization are prioritized to strengthen market positioning.

Guidance

Signet raised its FY26 guidance, projecting total sales of $6.70–$6.83 billion and adjusted EPS of $8.43–$9.59. Q4 sales are expected between $2.24–$2.37 billion, with same-store sales ranging from -5% to +0.5%.

Additional News

UBS raised its price target for SIG to $115 from $110, citing progress in omnichannel capabilities and supply chain optimization. Meanwhile, Stanley Ptak, an officer at Signet, gifted 1,160 shares on Dec 3, 2025. The company also announced a $0.32 dividend and share repurchases of $28 million during Q3.

Earnings Call Summary

Signet’s Q3 call emphasized 3% comp growth, driven by bridal and fashion categories. New collections, including a De Beers partnership, and expanded lab-grown diamond offerings (15% of fashion, 40% of bridal) were highlighted. Gross margin expanded 130 bps to 37.3%, and the board raised FY26 operating income guidance by $20 million.

Risks and Opportunities

The company faces risks from consumer confidence softness and tariff pressures but sees opportunities in lab-grown diamonds, high-margin services, and potential tariff reductions.