Signet Jewelers Limited reported third‑quarter fiscal 2026 results that surpassed expectations, with revenue of $1.391 billion—up 3.1% year‑over‑year—and adjusted diluted earnings per share of $0.63, a jump from $0.24 a year earlier. Same‑store sales grew 3.0%, and gross margin expanded 130 basis points to 37.3%, reflecting stronger pricing power and a higher‑margin mix.
Revenue growth was driven by robust demand in the company’s core brands—Kay, Zales, and Jared—particularly in bridal and fashion categories. A strategic shift toward lab‑grown diamonds, which carry higher margins, helped lift average unit retail and offset the impact of higher gold costs. The company’s integrated diamond sourcing and vertical manufacturing capabilities further insulated it from tariff pressures, allowing it to maintain pricing discipline while controlling input costs.
The earnings beat was driven by a combination of cost control and a favorable product mix. Adjusted diluted EPS of $0.63 eclipsed the consensus estimate of $0.16, a $0.47 or 295% beat, and revenue of $1.391 billion outpaced the $1.369 billion estimate by $22 million. The margin expansion to 37.3% was largely a result of the mix shift toward lab‑grown diamonds and disciplined operating expenses, which kept the cost of goods sold in check even as raw‑material prices rose.
Management raised its full‑year guidance, lifting total sales to $6.70 billion–$6.83 billion and adjusted operating income to $465 million–$515 million, up from the prior guidance of $6.60 billion–$6.75 billion and $440 million–$490 million. The upward revision signals confidence in sustained demand, especially for high‑margin products, and reflects the company’s expectation that the holiday season will drive additional sales.
CEO J.K. Symancyk emphasized that the “Grow Brand Love” strategy is delivering results, noting that the company is well positioned for the holiday season with a focused assortment and modernized marketing. CFO Joan Hilson highlighted the impact of pricing power and cost controls, adding that free cash flow improved by more than $100 million year‑over‑year. Both executives cautioned that external disruptions since late October and potential softness in consumer confidence could temper the fourth‑quarter outlook.
Market reaction was muted, with investors weighing the strong earnings beat against a cautious Q4 outlook. The company’s guidance raise was offset by concerns about consumer confidence and external disruptions, leading to a tempered market response despite the robust performance and margin expansion.
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