Signet Lifts View as Cautious Consumers Splurge on Jewellery

Signet Jewelers raised its outlook for the second time this year as shoppers continue to splurge on jewellery, especially for special occasions like weddings, even as they pull back on spending elsewhere. The stock rallied.

The company, which owns jewellery retailers Jared, Kay and Zales, now expects adjusted diluted earnings per share between $10.45 and $12.15 for the current fiscal year, up from the $9.20 to $11 previously.

Even amid broader macroeconomic pressure, shoppers remain “thoughtful and value-conscious” across price points, chief financial and operating officer Joan Hilson said in an interview. Jewelry spending has held up better than in other categories, she said, since more purchases are tied to meaningful life moments and are “highly considered.”

Shares jumped as much as 21 percent in New York. They were little changed this year before today.

Same-store sales rose 2.2 percent in the second quarter — ahead of the 1.7 percent analysts had expected — to $1.53 billion, according to a Wednesday statement.

“We delivered another quarter of comp sales growth with a positive comp performance in all fine jewelry brands,” chief executive officer J.K. Symancyk said in the release. “This includes high single-digit unit growth at higher price points.” The company plans to accelerate key initiatives like merchandising refreshes and improvements to the online and in-store shopping experiences, he said.

Higher-priced purchases, which Signet considers to be items costing more than $2,500, have remained resilient this year, even as consumers have watched their budgets more closely and pulled back in other areas.

While the company is seeing some moderation at its lowest price points, higher-priced products continue to perform well, Hilson said. In addition to engagement and bridal jewelry, which accounts for around half of sales, Signet is leaning into trendy styles such as colored gemstones and more sales of men’s products and watches, she added.

Merchandise average unit retail, which the company defines as merchandise sales, net of discounts and promotions, divided by the number of units sold, rose 6 percent from a year ago, with growth in both bridal and fashion jewelry.

The company also got an unexpected boost from tariff refunds, saying that the roughly $15 million in refunds it received during the quarter was $13 million higher than anticipated, which helped boost margins.

Signet said it extended its consumer credit partnership with Bread Financial Holdings Inc. through December 2035, which should help margins further, Hilson said in the statement.

The company also announced plans for a $125 million accelerated share repurchase program this month and said its board had approved a $385 million expansion of its remaining share repurchase authorization.

By Ann Gehan

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