Signet Raises Sales Outlook Again

Signet Jewelers’ sales and profit increased in the third fiscal quarter as a new strategy bore fruit, prompting the retailer to lift its guidance for the second time in three months.

Revenue grew 3.1% year on year to $1.39 billion for the three months that ended November 1, exceeding the company’s forecast, it reported Tuesday. Same-store sales — at branches open for a year or more — rose 3%. The average selling price climbed 7%, with an increase of 6% in bridal and 8% in fashion. Net profit almost tripled to $20 million from $7 million a year earlier.

Growth at Kay Jewelers, Zales and Jared drove the increase, Signet said. This was in line with a focus on those three core Signet brands as part of its new strategy, Grow Brand Love.

“Our balanced diamond assortment strategy, alongside ongoing stabilization in diamond retail prices, is driving growth and expanded average retails in both bridal and fashion,” said Signet CEO J.K. Symancyk. “Looking forward, we believe we are well-positioned for the holiday season with a focused assortment in key categories and price points, supported by a modernized marketing approach.”

Signet raised its outlook for the current fiscal year, which will end around early February. Management now expects revenue of $6.7 billion to $6.83 billion, compared with an earlier forecast of $6.67 billion to $6.82 billion. The change reflected “third-quarter outperformance, further tariff-mitigation efforts, and a measured outlook for the fourth quarter given external disruptions since late October and potential continued softness in consumer confidence.”

The company already raised its sales forecast for the full year on September 2 following a strong second fiscal quarter. In June, it increased the lower end of its sales guidance.

Image: Inside a Kay Jewelers store. (Signet Jewelers)