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, exceeding expectations. The company raised full-year guidance, citing operational efficiencies and strong comp sales. Despite a recent stock price decline, post-earnings strategies showed robust returns, outperforming benchmarks.

Revenue

Total revenue increased to $1.39 billion, driven by bridal and fashion segments. Bridal sales led at $648.40 million, while fashion contributed $451.60 million. Watches and services added $73.90 million and $185.60 million, respectively, with other categories totaling $32.30 million. The performance reflects strong demand across core brands like Kay, Zales, and Jared.

Earnings/Net Income

Earnings per share (EPS) surged 308.3% to $0.49, and net income grew 185.7% to $20 million. The significant earnings growth underscores improved profitability, driven by higher sales and operational efficiencies.

Price Action

The stock price declined 2.30% in the latest trading day, 17.13% for the week, and 14.96% month-to-date.

Post-Earnings Price Action Review

A strategy of buying SIG after earnings beats and holding for 30 days delivered a 138.15% return, outperforming the benchmark’s 86.81%. With a 51.34% excess return, 19.03% CAGR, and a Sharpe ratio of 0.35, the strategy demonstrated strong risk-adjusted performance and no maximum drawdown.

CEO Commentary

Signet’s CEO emphasized:

“Our 3% comp sales growth and $1.39 billion in revenue reflect the success of our 'Grow Brand Love' strategy. Operational efficiencies, including tariff mitigation and improved merchandise margins, drove profitability. We remain cautiously optimistic about FY26, with a focus on expanding lab-grown diamond offerings and optimizing our omnichannel experience.”

Guidance

Signet raised full-year 2026 guidance, projecting total sales of $6.70–$6.83 billion and adjusted EPS of $8.43–$9.59. Fourth-quarter same-store sales are expected to range from -5% to +0.5%, with gross merchandise margins flat to slightly up.

Additional News

1. UBS upgraded its price target

   to $115 from $110, maintaining a Buy rating, citing Signet’s omnichannel strength and EBIT guidance raise.

2. Executive insider activity

   included Stanley Ptak gifting 1,160 shares, reflecting confidence in long-term value.

3. Dividend and buybacks

   saw Signet declare a $0.32 quarterly dividend and repurchase $28 million in shares, signaling capital return priorities.