Signet Jewelers Limited (“Signet” or the “Company”) (NYSE:SIG) announced its results for the 13 weeks ended May 2, 2026 (“first quarter Fiscal 2027”).
“We drove topline growth in the first quarter with all categories up on a comparable sales basis. We also delivered positive performances for both Valentine’s Day in February as well as Mother’s Day to start the second quarter,” said J.K. Symancyk, Chief Executive Officer. “These early proof points of our Grow Brand Love strategy show we can perform and transform at the same time. We’re accelerating go-to-market plans across Kay, Zales, and Jared – sharpening brand distinction through more impactful marketing, redesigning digital experiences, and creating more compelling store environments. These initiatives build on each brand’s strengths and are designed to foster sustainable growth.”
“We delivered double digit Adjusted Operating Income growth in the first quarter driven by cost reduction from the re-organization completed last year and leverage from comparable sales growth. Our consistent performance, inventory management, and free cash flow conversion has allowed us to return over $125 million to shareholders this year through today. We also intend to initiate a $50 million accelerated share repurchase plan this month as part of Signet’s ongoing programmatic returns to shareholders,” said Joan Hilson, Chief Operating and Financial Officer. “Looking forward to full year Fiscal ’27, we are raising the midpoint of guidance to reflect Q1 performance and Q2 momentum. We are further increasing the adjusted EPS range for the year to reflect the additional share repurchases since March.”
First Quarter Fiscal 2027 Highlights:
- Sales of $1.6 billion on a same store sales (“SSS”) (1) increase of 1.8% to Q1 of FY26.
- Merchandise average unit retail (“AUR”) (2) was up approximately 5% to Q1 of FY26, with growth in both Bridal and Fashion.
- Operating income of $36.9 million, down from $48.1 million in Q1 of FY26.
- Adjusted operating income (3) of $78.6 million, up from $70.3 million in Q1 of FY26.
- Diluted earnings per share (“EPS”) of $0.78, consistent with Q1 of FY26. The current quarter diluted EPS includes $0.78 of restructuring and other charges net of taxes.
- Adjusted diluted EPS (3) of $1.56, compared to $1.18 in Q1 of FY26.
| (1) | Same store sales include physical stores and e-commerce sales. Further, beginning in Q1 FY27, the calculation of SSS excludes the adjustment reflected in total sales to defer the recognition of extended service agreements. For further information, please refer to Signet’s Q1 FY27 Quarterly Report on Form 10-Q. | |
| (2) | AUR reflects merchandise sales on a constant currency basis, net of discounts and promotions, divided by units. | |
| (3) | See Non-GAAP Financial Measures section below. |
| (in millions, except per share amounts) | Q1 Fiscal 2027 | Q1 Fiscal 2026 | |||||
| Sales | $ | 1,553.6 | $ | 1,541.6 | |||
| SSS % change (1) | 1.8 | % | 2.7 | % | |||
| GAAP | |||||||
| Operating income | $ | 36.9 | $ | 48.1 | |||
| Operating margin | 2.4 | % | 3.1 | % | |||
| Diluted EPS | $ | 0.78 | $ | 0.78 | |||
| Adjusted (2) | |||||||
| Adjusted operating income | $ | 78.6 | $ | 70.3 | |||
| Adjusted operating margin | 5.1 | % | 4.6 | % | |||
| Adjusted diluted EPS | $ | 1.56 | $ | 1.18 | |||
| (1) | Same store sales include physical stores and e-commerce sales. Further, beginning in Q1 FY27, the calculation of SSS excludes the adjustment reflected in total sales to defer the recognition of extended service agreements. The SSS % change for Q1 FY26 has been adjusted from the previously reported amount consistent with the revised methodology. | |
| (2) | See Non-GAAP Financial Measures section below. |
First Quarter Fiscal 2027 Results:
Gross margin was $556.5 million, or 35.8% of sales, down approximately $42 million to Q1 of FY26. The gross margin decline included inventory write-downs relating to the transition of James Allen. Adjusted gross margin was $589.2 million, or 37.9% of sales, in line with the Company’s expectations.
SG&A was $509.6 million, or 32.8% of sales, down from $526.0 million, or 34.1% of sales, in Q1 of FY26. The leverage in SG&A was driven by cost reduction from the reorganization completed in FY26 and from sales growth.
Operating income was $36.9 million, or 2.4% of sales, compared to $48.1 million, or 3.1% of sales, in Q1 of FY26, and included $41.7 million of restructuring and related charges – largely non-cash – in Q1 FY27 primarily related to the transition of James Allen. Adjusted operating income was $78.6 million, or 5.1% of sales, compared to $70.3 million, or 4.6% of sales, in Q1 of FY26.
The current quarter income tax expense was $9.1 million compared to $12.1 million in Q1 of FY26. Adjusted income tax expense was $19.5 million compared to $17.6 million in Q1 of FY26.
Diluted EPS was $0.78, flat to Q1 of FY26. Diluted EPS in the current quarter included $0.78 of restructuring and other charges net of taxes. Adjusted diluted EPS was $1.56, compared to $1.18 in Q1 of FY26. Adjusted diluted EPS reflected higher adjusted operating income, lower diluted share count, and higher interest income.
Balance Sheet and Statement of Cash Flows:
Cash used in operating activities for the first quarter of FY27 was $144.7 million compared to $175.3 million in the prior year. Cash and cash equivalents were $602.8 million as of quarter end, compared to $264.1 million in Q1 of FY26. Total liquidity was approximately $1.7 billion, up more than $300 million to the prior year. Inventory ended the quarter at $2.0 billion, approximately flat to Q1 of FY26.
Capital Returns to Shareholders:
Signet’s Board of Directors declared a quarterly cash dividend on common shares of $0.35 per share for the second quarter of Fiscal 2027, payable August 21, 2026 to shareholders of record on July 24, 2026, with an ex-dividend date of July 24, 2026.
In the first quarter of FY27, Signet repurchased approximately 0.9 million common shares for $83 million. Subsequent to the first quarter, the Company repurchased an additional 0.4 million shares for approximately $30 million.
Additionally, the Company intends to initiate a $50 million Accelerated Share Repurchase (“ASR”) agreement this month. Subsequent to the completion of the ASR, the Company will have approximately $355 million in share repurchase authorization remaining.
| Second Quarter and Full Year Fiscal 2027 Guidance Range: | |
| Second Quarter | |
| Total sales | $1.50 to $1.53 billion |
| Same store sales | +0.5% to +2.5% |
| Adjusted operating income (1) | $79 to $93 million |
| Adjusted EBITDA (1) | $125 to $139 million |
| (1) See description of non-GAAP financial measures below. |
| Forecasted adjusted operating income and adjusted EBITDA exclude potential non-recurring charges, such as restructuring and reorganizational charges or asset impairments. However, given the potential impact of non-recurring charges to the GAAP operating income, we cannot provide forecasted GAAP operating income or the probable significance of such items without unreasonable efforts. As such, we do not present a reconciliation of forecasted adjusted operating income or adjusted EBITDA to corresponding forecasted GAAP amounts. |
| Updated Fiscal 2027 | Previous Fiscal 2027 | |
| Total sales | $6.7 to $6.9 billion | $6.6 to $6.9 billion |
| Same store sales | (0.75%) to 2.5% | (1.25%) to 2.5% |
| Adjusted operating income (1) | $480 to $560 million | $470 to $560 million |
| Adjusted EBITDA (1) | $665 to $745 million | $655 to $745 million |
| Adjusted diluted EPS (1) | $9.20 to $11.00 | $8.80 to $10.74 |
| (1) See description of non-GAAP financial measures below. | |
| Forecasted adjusted operating income, adjusted EBITDA and adjusted diluted EPS exclude potential non-recurring charges, such as restructuring and reorganizational charges or asset impairments. However, given the potential impact of non-recurring charges to the GAAP operating income and diluted EPS, we cannot provide forecasted GAAP operating income or diluted EPS or the probable significance of such items without unreasonable efforts. As such, we do not present a reconciliation of forecasted adjusted operating income, adjusted EBITDA and adjusted diluted EPS to corresponding forecasted GAAP amounts. | |
The Company’s Fiscal 2027 guidance range is based on the following assumptions:
- Assumes $60 to $80 million in net revenue reduction related to the transition of the James Allen brand with a minimal impact on adjusted operating income.
- A dynamic tariff, commodity, and consumer environment.
- Planned capital expenditures of approximately $150 to $180 million.
- Net square footage decrease of low single digit for the year.
- Annual tax rate of 23% to 25%, excluding any potential discrete items.
- Adjusted diluted EPS for Fiscal 2027 excludes any potential further share repurchases subsequent to the ASR. This assumes a full year weighted average diluted share count of approximately 39.5 million shares.
