Signet Raises 2026 Outlook After 1.8% Q1 Sales Gain and EPS Beat
SIG•Signet Jewelers reported Q1 comparable sales up 1.8% to $1.6 billion and adjusted EPS of $1.56 versus $1.18, while GAAP diluted EPS was $0.78 including restructuring charges. The company raised its 2026 sales outlook to $6.7–$6.9 billion, lifted adjusted EPS guidance to $9.20–$11.00 and plans a $50 million share repurchase.
1. Q1 Financial Results
Signet Jewelers reported first-quarter comparable sales of $1.6 billion, up 1.8% year over year. Operating income totaled $36.9 million versus $48.1 million last year, while adjusted operating income rose to $78.6 million from $70.3 million. Net income declined to $31.7 million from $33.5 million, and adjusted diluted EPS increased to $1.56 from $1.18.
2. Upgraded Guidance and Share Repurchase
Signet increased its 2026 sales forecast to a range of $6.7 billion–$6.9 billion, up from $6.6 billion–$6.9 billion, and boosted adjusted EPS guidance to $9.20–$11.00 from $8.80–$10.74. The company returned over $125 million to shareholders year to date and plans a $50 million accelerated share repurchase this month.
3. Operational Initiatives and Margin Details
Average unit retail price climbed about 5%, driven by bridal and fashion categories. Gross margin fell by $42 million to $556.5 million, or 35.8% of sales, due to inventory write-downs during integration of the James Allen proprietary brand and discontinuation of Jamesallen.com. Brand marketing, digital redesigns and store enhancements are being accelerated across Kay, Zales and Jared under the Grow Brand Love strategy.
