Signet Jewelers reported robust financial results for the second quarter of fiscal 2026, ending August 2, 2025, which included a shift from a loss to a profit. The company posted sales of $1.5 billion, representing a 3.0% increase compared to the same quarter last year. Same-store sales also rose by 2.0%. A key highlight was the adjusted operating income, which grew over 20% to $85.4 million, up from $68.6 million in the prior year's second quarter. Diluted loss per share improved significantly to $0.22, compared to a loss of $2.28 in the second quarter of fiscal 2025, while adjusted diluted earnings per share (EPS) reached $1.61, a substantial increase from $1.25 a year ago and better than analyst estimates of $1.24.
The improved performance was attributed to the expansion of on-trend fashion assortments and effective pricing and promotion strategies. J.K. Symancyk, CEO, highlighted that Kay, Zales, and Jared brands collectively saw a 5% increase in same-store sales due to a heightened focus. Gross margin rate improved by 60 basis points to 38.6%, driven by gross merchandise margin expansion and leverage on fixed costs. SG&A as a percentage of sales decreased by 50 basis points to 32.9%. The company maintained inventory levels at $2.0 billion, nearly flat to the prior year, and cash and cash equivalents were $281.4 million at quarter-end.
Following these strong results, Signet Jewelers raised its full-year fiscal 2026 guidance. The new total sales forecast is between $6.67 billion and $6.82 billion, up from the previous range of $6.57 billion to $6.80 billion. Same-store sales guidance was also adjusted upwards to a range of (0.75%) to +1.75%, from a previous range of (2.0%) to +1.5%. Adjusted operating income is now projected to be between $445 million and $515 million, an increase from the earlier $430 million to $510 million. The adjusted diluted EPS guidance was raised to $8.04 to $9.57, compared to the prior $7.70 to $9.38, with the upper end contingent on the removal of certain India import tariff penalties. The company also provided third-quarter sales guidance of $1.34 billion to $1.38 billion, anticipating modest gross margin improvement offset by increased SG&A due to incentive compensation resets.
