<ul> <li>Signet reported second-quarter revenue of $1.53 billion, in line with the Street estimate. </li> <li>It posted adjusted earnings per share of $2.19, compared with the analyst estimate of $1.74, as per Koyfin data. </li> <li>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%, compared with its previous range of negative 0.75% to 2.5%.</li> </ul> <p>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.</p> <p>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. </p> <p>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.</p> <h2>SIG Sees Gross Margin Expansion</h2> <p>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.</p> <p>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.</p> <p>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. </p> <p>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.</p> <p>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.</p> <h2>SIG’s Buybacks</h2> <p>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.</p> <p>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.</p> <p>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.</p> <p>Including Wednesday’s move, SIG shares have gained over 19% year-to-date.</p> <p>For updates and corrections, email newsroom[at]stocktwits[dot]com.<</p>
