Signet Jewelers Limited Q1 FY2026 earnings call

Thanks to the team for delivering results above guidance. Key takeaways include quick actions delivering ahead of first quarter expectations, Grow Brand Love strategy in early innings for long-term growth, and confidence in managing levers in dynamic macro landscape. Quarterly performance: fashion same-store sales improved led by $250-$500 price range; bridal improved by filling assortment gaps; centralized marketing efforts saw over 30% increase in impressions at three largest brands with low single-digit ad spend increase. Grow Brand Love strategy: shift to brand mindset with unique go-to-market strategies for Kay, Zales, Jared; grow core and expand into adjacent categories with healthy bridal offering and fashion growth including 60% LGD fashion growth; organizational alignment with substantially complete reorganization and recruiting key leadership roles.

Revenue was $1.5 billion with same-store sales growth of 2.5%. Growth across every major category including services. Kay, Zales, and Jared delivered double-digit e-commerce sales growth while expanding sales per square foot by nearly 5% to the prior year. Fashion same-store sales sequentially improved roughly four points, led by the $250 to $500 gifting price point range. Bridal improved by filling assortment gaps. Blue Nile was in line with comp sales growth, while James Allen created 140 basis points of pressure to comp. Merchandise AUR grew approximately 8%, with fashion up 10% and bridal AUR slightly up. Fashion's total addressable market is larger than bridal, and lab-grown diamond fashion growth was 60% this quarter.

Second quarter total sales range $1.47 billion to $1.51 billion, same-store sales range down 1.5% to up 1%. Gross margin rate flat to modestly up. Adjusted operating income $53 to $73 million. Full year fiscal 2026: total sales range $6.57 to $6.8 billion, same-store sales range down 2% to up 1.5%. Gross merchandise margin expansion expected. SG&A as percentage of sales slightly higher at high guide. Adjusted EPS range $7.70 to $9.38 per diluted share, increased by ~4% at midpoint. Capital expenditures $145 million to $160 million.

Tariffs: Fluid situation with potential cost impacts and supply chain disruptions, but team taking actions to navigate. Consumer Environment: Measured consumer environment could impact back half of the year.

Q: Quantify unmitigated tariff pressure and actions to mitigate; pricing in lab and natural diamonds.

A: J.K. Symancyk and Joan Hilson discussed levers like assortment architecture, sourcing, timing; lab diamond fashion growth and AUR impact, natural diamond stabilization.

Q: Compare fashion and bridal performance, market share, new customer ramp in lab.

A: J.K. Symancyk talked about fashion sequential improvement, bridal trend, market share viewed annually, lab new customer ramp in Q1.

Q: Health of consumer, AUR growth, upcoming holiday season marketing.

A: J.K. Symancyk discussed AUR growth from bridal and fashion, consumer resiliency, marketing impressions and holiday planning.

Q: Lab-grown diamond penetration, two-year stack, gross margin leverage.

A: Joan Hilson mentioned LGD penetration ~20%, two-year stack comp view, gross margin expansion expectations.

Q: Outlook on lab-grown diamond with increased tariffs, bridal unit growth vs industry, bridal lab-grown share.

A: J.K. Symancyk and Joan Hilson discussed lab-grown tariff risk management, bridal growth vs industry, bridal lab-grown share mid-30s.