Signet Jewelers (SIG) shares surged over 19% on Wednesday after the jewelry retailer reported stronger-than-expected second-quarter results and raised its full-year adjusted earnings outlook.
Signet reported revenue of $1.53 billion, in line with the Street estimate. It posted adjusted earnings per share (EPS) of $2.19, compared with the analyst estimate of $1.74, as per Koyfin data.
The firm reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $152.3 million, while adjusted operating income came in at $107.2 million.
Gross margin expanded by 80 basis points to 39.4% of sales, which the company attributed to roughly $15 million in tariff refunds, lower inventory and distribution costs.
Same-store sales, which include both physical stores and e-commerce, rose 2.2% year-over-year, with the company highlighting positive comparable growth across all its fine jewelry brands. Merchandise average unit retail was up approximately 6% on a constant-currency basis, with gains in both bridal and fashion categories.
Operating income rose to $87.5 million from $2.8 million a year earlier. Adjusted operating income stood at $107.2 million, up from $85.4 million in the same quarter last year.
Signet CEO J.K. Symancyk said the firm is accelerating its key brand initiatives, including merchandise refreshes, enhancements to both the online and in-store customer experience, and a more modern and emotionally engaging marketing approach.
Signet reaffirmed its fiscal 2027 sales outlook at $6.7 billion to $6.9 billion and improved its same-store sales outlook to flat to up 2.5%, up from its previous range of negative 0.75% to 2.5%. The company expects third-quarter sales of $1.37 billion to $1.41 billion.
Signet repurchased approximately one million shares for $87 million during Q2, followed by another 0.4 million shares for approximately $33 million after the quarter ended.
The company also plans to enter into a $125 million accelerated share repurchase program. Its board has approved expanding the remaining share repurchase authorization by approximately $385 million, to $700 million. After the planned ASR, approximately $575 million of authorization is expected to remain.
On Stocktwits, retail sentiment for SIG was ‘Extremely Bullish’ in the past 24 hours, while message volume was ‘Extremely high’ at the time of writing.
Including Wednesday’s move, SIG shares have gained over 19% year-to-date.
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