Signet Jewelers Limited (SIG) 5 Dec 24 2025 Q3 Earnings call transcript

In the latest earnings call for Signet Jewelers, executives shared their insights into the company's performance and future strategies. Amidst a complex business landscape, Signet Jewelers is navigating challenges and seeking growth opportunities.

Strong Foundation and Strategic Evolution

James Symancyk, the newly appointed CEO, expressed his excitement about the company's strong foundation, emphasizing its powerful brands, deep consumer focus, and talented team. He acknowledged the challenges, including engagement incidents and the disruption caused by lab-created diamonds, but also highlighted the opportunities these present, particularly in the Fashion category and expanding the assortment within Bridal.

Sales and Performance

Joan Hilson, CFO and COO, reported a sixth consecutive quarter of sequential same-store sales improvement, despite a 0.7% decline in the third quarter. Excluding the impact of digital banners and hurricanes, same-store sales grew by 1 point. Fashion sales were positive, and the strategy to increase penetration of new merchandise is key to Signet's growth plans. The company saw growth in new product sales and higher average transaction values, particularly in North America.

Digital Challenges and Future Plans

The digital transformation of the jewelry industry is a significant challenge for Signet Jewelers. The company has faced issues with digital banners, specifically James Allen and Blue Nile, due to API integration and replatforming work. However, the leadership transition with the appointment of Karen Benson as President of Digital Banners is expected to bring improvements and drive growth in the digital space.

Financial Highlights

Robert Ballew, SVP of Investor Relations, provided a detailed financial update. Despite a 3% revenue decline, the company's focus on capital returns to shareholders through share repurchases is a testament to its strategic capital allocation. The completion of preferred share redemption and reduction in diluted shares to roughly 43.5 million signals a positive outlook for future earnings per share.

Looking Ahead

Looking forward, Signet Jewelers is focused on executing a successful holiday season and evolving its strategy to fuel customer and shareholder value. The company expects flat to up 3% same-store sales in the fourth quarter, with a higher operating margin rate than last year. Despite the challenges, the company remains optimistic about its future growth prospects, especially with the appointment of a new CEO and the focus on digital transformation.

In conclusion, Signet Jewelers' earnings call revealed a company navigating challenges and seeking growth opportunities. With a strong foundation, strategic evolution, and a focus on digital transformation, Signet Jewelers is well-positioned to face the complexities of the jewelry industry and deliver value to its shareholders and customers.