Signet Jewelers Surprises with Q2 Earnings Beat, Raises Full-Year Forecasts

Signet Jewelers reported Q2 revenue of $1.54 billion, a 3% YoY increase, and raised its full-year earnings forecast. The company's stock gained on the news, with management expressing optimism about the outlook. The jewelry retailer owns brands like Kay Jewelers, Zales, Jared Jewelers, and Blue Nile.

Signet Jewelers Ltd. (SIG) reported robust financial results for the second quarter of 2025, with revenue growing by 3% year-over-year (YoY) to $1.54 billion. The company also raised its full-year earnings forecast, reflecting positive momentum and strategic initiatives. The stock gained on the news, with management expressing optimism about the outlook.

The company's strong performance was driven by strategic initiatives and market resilience. Same-store sales grew by 2%, with the three largest brands—Kay, Zales, and Jared—delivering a combined same-store sales growth of approximately 5% in back-to-back quarters. The fashion category also saw a 2% comp growth, driven by the expansion of lab-grown diamonds (LGD) fashion pieces, which now account for 14% of fashion sales.

Signet Jewelers' earnings per share (EPS) for the quarter were $1.61, significantly exceeding the expected $1.24, marking a 29.84% surprise. The company's adjusted operating income reached $85 million, marking over 20% growth, and the EBITDA over the last twelve months was $604.1 million, with a healthy gross profit margin of 39.5%.

Despite the earnings beat, the stock experienced a slight decline in pre-market trading, dropping by 0.12% to $90.35. The stock remains within its 52-week range, with a high of $106.28 and a low of $45.55. InvestingPro data shows impressive momentum, with an 87.4% price return over the past six months.

Looking ahead, Signet provided full-year sales guidance between $6.67 billion and $6.82 billion, with same-store sales expected to range from -0.75% to +1.75%. The company maintains a strong dividend track record, with a current yield of 1.41%.

The company is preparing for the holiday season with expanded inventory and continues to monitor tariff impacts, particularly from India. CEO J.K. Symancyk highlighted the company's preparedness for the holiday season, stating, "We’re well positioned to maximize the holiday season."

Risks and challenges include tariff impacts, market saturation, supply chain disruptions, economic downturns, and intense competition from other jewelry retailers.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-signet-jewelers-q2-2025-earnings-beat-expectations-93CH-4222392