Signet Jewelers Surges 14% After Q2 Earnings Beat and Full-Year Profit Guidance Raised Over 10%

Signet Jewelers posted fiscal second quarter 2027 results on September 9, swinging to a net income of $52.1 million from a loss of $9.1 million a year earlier, and lifted its full-year adjusted earnings outlook by more than 10%, sending shares up as much as 14% for their best single-day gain in over a year.

Adjusted earnings per share of $2.19 came in well ahead of the $1.74 Wall Street consensus, a 36% year-over-year increase, while adjusted operating income of $107.2 million surpassed estimates of $89.7 million by a wide margin, up 26% year over year. Revenue of $1.5 billion was roughly flat year over year and slightly below the $1.53 billion estimate, though same-store sales grew 2.2%, with positive comparable performance across all fine jewelry brands and high single-digit unit growth at higher price points. Gross margin improved 80 basis points to 39.4%, and adjusted operating margin expanded 140 basis points to 7.0%.

For the full fiscal year 2027, Signet raised its adjusted EPS guidance range to $10.45-$12.15 from $9.20-$11.00, bracketing the consensus estimate of $10.82. Full-year revenue guidance of $6.7 billion-$6.9 billion was held steady, while adjusted operating income guidance rose to $535 million-$605 million from $480 million-$560 million, and adjusted EBITDA guidance increased to $730 million-$800 million from $665 million-$745 million. Same-store sales guidance for the full year was narrowed and improved to flat to up 2.5% from a prior range of negative 0.75% to up 2.5%.

For the third quarter, Signet guided revenue of $1.37 billion-$1.41 billion, adjusted operating income of $31 million-$48 million, and same-store sales of negative 1.0% to positive 2.0%. On capital returns, the company declared a dividend of $0.35 per share, repurchased approximately $87 million worth of shares, or about 1.0 million shares, during the quarter, announced a new $125 million accelerated share repurchase, and reported $700 million remaining under its buyback authorization. The results marked the company's sixth consecutive earnings beat.