Signet Reports Sales at Higher End of Forecast

News in Brief:

• Signet Jewelers’ sales were between $2.34 billion and $2.35 billion in the fourth fiscal quarter, which ended January 31, 2026, the company reported Monday in its preliminary results. This compared with sales of $2.35 billion a year earlier.

• This put its sales at the higher end of its forecast of $2.24 billion to $2.37 billion.

• Same-store sales — at shops open for at least 12 months — decreased between 0.7% and 0.9% year on year.

• Same-store sales improved in each month of the quarter compared with the previous month and were positive during the peak holiday selling days and for the rest of the quarter.

• Adjusted operating income came to between $322 million and $327 million, compared with last year’s $355.5 million and with a forecast of $277 million to $327 million.

• Sales for the full fiscal year were approximately $6.8 billion. This translates to an increase of around 1% from last year’s $6.7 billion and was at the higher end of its forecast range of $6.7 billion to $6.83 billion.

• The average retail selling price rose around 4% to 5% year on year for the quarter and 6% to 7% for the year.

• Signet will report its full results on Thursday, March 19.

The Rapaport View:

Signet released preliminary financial data because it is participating in a presentation on Monday at Citi’s Global Consumer & Retail Conference. Its holiday performance will no doubt be a major topic there. Stock-exchange rules prevent the owner of Kay Jewelers, Zales and Jared from disclosing important information that it hasn’t already provided to the public.

The results themselves are not groundbreaking. Sales were within guidance — albeit at the upper end — and were broadly in line with last year, both for the fourth fiscal quarter and for the full year.

The most notable takeaway was Signet’s reliance on discounts to drive sales. The relatively positive numbers compared with the forecast reflect “a pivot to broader promotions to meet consumer expectations,” said Joan Hilson, Signet’s chief operating and financial officer, in a statement.

This, however, had a negative impact on gross merchandise margin — the profitability of product sales. “Further spend discipline” offset this, Hilson added.

The good news for the wider industry is that Signet achieved sales growth for the fiscal year despite 2025 being a challenging one for retail. Management didn’t break down the source of its sales over the holiday, but we know that it has increased its emphasis on lower-cost fashion jewelry featuring lab-grown diamonds. Next week’s full report should enlighten us as to how this played out.

More generally, Signet’s “Grow Brand Love” strategy supported the growth, “led by a sharper focus across Kay, Zales, and Jared, even amid unprecedented tariffs, record gold costs, and a measured consumer,” said group CEO J.K. Symancyk.

Meanwhile, the period following the end of the fiscal year appears to have been solid for the jeweler, including during the lead-up to February 14. “Sales momentum continued with a positive Valentine’s Day performance with similar trends into March,” Symancyk commented. This aligns with reports we have received from the US jewelry trade in general.

Signet’s stock price was down around 1% in premarket trading at press time.

Image: A Kay Jewelers store. (Shutterstock)