Signet Jewelers Limited announced robust second-quarter fiscal 2026 results, surpassing previous expectations with sales reaching $1.5 billion, a 3% increase year-over-year, and a 2% rise in same-store sales. This positive performance was primarily fueled by the expansion of on-trend fashion assortments, effective promotion strategies, and a significant 5% combined same-store sales increase across its key brands: Kay, Zales, and Jared. The company's Merchandise Average Unit Retail (AUR) was up 9%, with a 4% increase in Bridal and a 12% increase in Fashion jewelry.
Adjusted operating income grew by 24% to $85.4 million, benefiting from cost-cutting measures, gross margin expansion, and strong comparable sales growth. This improvement is a substantial turnaround from an operating loss of $100.9 million in Q2 of FY25. Adjusted diluted earnings per share (EPS) stood at $1.61, compared to $1.25 in the prior year. The growth in fashion jewelry, particularly lab-grown diamonds, was a key driver, with the penetration of higher AUR lab-grown diamond fashion pieces reaching approximately 14% of fashion sales.
Looking ahead, Signet Jewelers raised its fiscal 2026 guidance, now expecting full-year sales between $6.67 billion and $6.82 billion, and same-store sales to be down less than 1% to up 2%. The company anticipates full-year adjusted operating income between $445 million and $515 million, contingent on the evolving tariff landscape, especially concerning imports from India which currently face a 50% tariff rate. CEO J.K. Symancyk highlighted a sharp focus on inventory levels, new collections, and fresh marketing campaigns to ensure a strong holiday season, particularly in the $200-$500 price range for lab-grown diamond fashion jewelry and men’s fashion jewelry.
