It has been about a month since the last earnings report for Signet (SIG Quick QuoteSIG - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Signet due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Signet Jewelers Limited before we dive into how investors and analysts have reacted as of late.

Signet Q2 Earnings & Revenues Beat Estimates, Same-Store Sales Up Y/Y

Signet Jewelers posted impressive second-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Additionally, both revenues and earnings increased year over year. Same-store sales increased 2% from the year-ago period. Driven by the fiscal second-quarter results, Signet has raised its fiscal 2026 outlook.

More on Signet’s Q2 Results

Signet reported adjusted earnings of $1.61 per share, surpassing the Zacks Consensus Estimate of $1.21. Also, the bottom line increased 28.8% from adjusted earnings of $1.25 in the year-ago period. 

This jewelry retailer generated total sales of $1,535.1 million, beating the consensus estimate of $1,498 million. Also, the top line increased 3% year over year. The metric increased 2.6% at constant currency. Merchandise average unit retail (“AUR”) rose approximately 9% year over year, driven by a 4% increase in Bridal and a 12% increase in Fashion. 
Insight Into Signet’s Margins & Expenses

The gross profit in the fiscal first quarter amounted to $591.9 million, up 4.5% from $566.3 million in the year-ago quarter. The gross margin increased 60 basis points (bps) year over year to 38.6% in the quarter under review, primarily driven by gross merchandise margin expansion and leverage on fixed costs.

Selling, general and administrative (SG&A) expenses were $505.3 million, up 1.4% from $498.4 million in the prior-year quarter. Meanwhile, SG&A expenses, as a percentage of sales, were 32.9%, reflecting a 50-bps reduction year over year.

Signet reported adjusted operating income of $85.4 million, up 24.5% from $68.6 million in the year-ago quarter. The adjusted operating margin increased 100 bps to 5.6%.

Update on Signet’s Segmental Performance

Sales in the North American segment increased 2.1% year over year to $1.43 billion. Same-store sales increased 2% year over year.

Sales in the International segment increased 6.1% year over year to $91.8 million. Same-store sales increased 0.8% year over year. Sales increased 0.4% on a constant-currency basis.

Update on Signet’s Stores

As of Aug. 2, 2025, the North American segment had 2,364 stores, a decrease from 2,379 in February 2025 due to eight openings and 23 closures. The International segment had 259 stores, down from 263 after four closures and no openings. Overall, Signet had 2,623 stores, down from 2,642, following eight openings and 27 closures.

Signet’s Financial Snapshot: Cash, Debt & Equity Overview

Signet ended the fiscal second quarter with cash and cash equivalents of $281.4 million and inventories of $1.99 billion. Total shareholders’ equity was $1.73 billion at the end of the fiscal second quarter. As of Aug.2, 2025, net cash used was $89 million in operating activities.

In the fiscal second quarter, Signet repurchased approximately 446 thousand common shares for $32 million. During the past six months, the company repurchased approximately 2.5 million shares for $150 million. The company has approximately $570 million remaining under the current share repurchase authorization.

Signet’s Q3 Guidance

For the third quarter of fiscal 2026, Signet expects total sales to be in the range of $1.34-$1.38 billion. Same-store sales are estimated to be between a decline of 1.25% and an increase of 1.25% year over year. Adjusted operating income is anticipated to be between $3 million and $17 million, while adjusted EBITDA is expected in the range of $49-$63 million.

What to Expect From Signet in FY26?

Signet has updated its fiscal 2026 guidance. Total sales are now expected in the range of $6.67-$6.82 billion compared with the previous band of $6.57-$6.80 billion. Same-store sales are estimated between a decline of 0.75% and an increase of 1.75% compared with the prior range of decline of 2% and an increase of 1.5%.

Adjusted operating income is now anticipated to be between $445 million and $515 million, up from $430-$510 million expected previously. Adjusted EBITDA is forecasted at $630-$700 million compared with the earlier range of $615-$695 million. Adjusted EPS is expected to be between $8.04 and $9.57, an increase from the prior guidance of $7.70-$9.38. The company continues to expect capital expenditures to be between $145 million and $160 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted -12.7% due to these changes.

VGM Scores

At this time, Signet has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Signet has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.