Signet Jewelers Ltd
Q2 2027 Earnings
Market Reaction
Did SIG Beat Earnings? Q2 2027 Results
Signet Jewelers delivered a standout second quarter of Fiscal 2027, posting adjusted diluted EPS of $2.19 against the $1.74 consensus estimate, a beat of 26.14% that extended the company's streak of topping EPS expectations to six consecutive quarters. Revenue came in at $1.53 billion, essentially in line with forecasts but down 0.5% year over year, a modest top-line slip that the company more than offset through disciplined margin management. The single biggest driver of the upside was gross margin expansion of 80 basis points to 39.4%, aided by approximately $15 million in tariff refunds, $13 million more than anticipated, alongside lower inventory and distribution costs. SG&A fell to $493.60 million from $505.30 million a year ago, and adjusted operating income climbed to $107.20 million, representing a 7.0% margin. Analyst sentiment heading into the print had skewed constructive, with several major institutional investors recently lifting their stakes. Looking ahead, Signet raised full-year adjusted EPS guidance by more than 10% to a range of $10.45 to $12.15, while maintaining total sales guidance of $6.70 billion to $6.90 billion.
- Same store sales growth of 2.2% with positive comps across all fine jewelry brands
- Merchandise AUR up approximately 6% driven by Bridal and Fashion categories
- High single-digit unit growth at higher price points
- Approximately $15 million in refunds for tariffs previously paid, $13 million above expectations
- SG&A cost reduction from operating model changes and same store sales leverage
- Lower inventory and distribution costs partially offset by higher gold costs
“We delivered another quarter of comp sales growth with a positive comp performance in all fine jewelry brands. This includes high single-digit unit growth at higher price points.”
Signet Jewelers CEO, on the earnings call
Forward Guidance & Outlook
Signet raised its full-year Fiscal 2027 adjusted diluted EPS guidance by over 10% to $10.45 to $12.15 (from $9.20 to $11.00 previously), reflecting year-to-date operating performance, additional share repurchases, refunds of tariffs previously paid, and the new consumer credit agreement terms. Full-year total sales guidance is maintained at $6.7 to $6.9 billion, with same store sales expected to be flat to up 2.5% (narrowed from a prior range of down 0.75% to up 2.5%). Full-year adjusted operating income is guided to $535 to $605 million (up from $480 to $560 million), and adjusted EBITDA to $730 to $800 million (up from $665 to $745 million). For Q3, total sales are expected at $1.37 to $1.41 billion with same store sales of -1.0% to 2.0%, and adjusted operating income of $31 to $48 million. Key assumptions include $60 to $80 million in net revenue reduction from the James Allen brand transition, approximately $30 million in tariff refunds, $30 to $40 million of non-comp revenue and gross margin from the new consumer credit agreement, capex of $150 to $180 million, an annual tax rate of 23% to 25%, and a weighted average diluted share count of approximately 38.8 million shares.
SIG YoY Financials
SIG Revenue by Segment
SIG Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.