Signet Jewelers Limited Q2 FY2026 earnings call

• Delivered another quarter of positive same-store sales and earnings ahead of expectations, with eight consecutive months of positive comps including August.
• Made early progress on the grow brand love strategy via distinct merchandise (e.g., new collections, expanded LGD fashion assortments), enhanced marketing (e.g., Love Highway campaign at Jared, naming Teddy Swims as chief love at Kay), and unique customer experiences.
• Well-positioned for holiday with momentum and clear strategic focus, bolstering confidence for the season by focusing on key price points, bolstering LGD and other trending category assortments, and navigating tariff environment to optimize inventory and production.

Revenue for the quarter was over $1.5 billion with comp growth of 2%, led by growth in fashion and services. Fashion delivered a 2% comp growth, driven by continued acceleration of lab-grown diamond (LGD) product performance, particularly at key gifting price points. Services grew over 7% in the quarter, led by higher attachment rates of extended service agreements. Merchandise average unit retail (AUR) increased roughly 9%, with fashion up more than 12% and bridal up 4%. Inventory ended the quarter at $2 billion, nearly flat to last year despite a more than 30% increase in gold cost.

• Third quarter total sales expected in the range of $1.34 billion to $1.38 billion with same-store sales in the range of down 1.25% to up 1.25%; gross margin rate expected to be up modestly; adjusted operating income between $3 and $17 million.
• Full-year total sales expected in the range of approximately $6.67 billion to $6.82 billion with same-store sales in the range of down 0.75% to an increase of 1.75%; adjusted operating income raised to a range of $445 to $515 million; adjusted EPS raised to a range of $8.04 to $9.57 per diluted share, inclusive of share repurchase to date.

• Tariff environment, specifically India where tariffs increased from 10% to 50% inclusive of a 25% Russian trade penalty; impact on adjusted operating income depends on tariff removal, with middle to lower end of range if penalty remains and upper half if removed.

Q: Can you talk about the drivers of AUR in both bridal and fashion in terms of how much is being driven by mix versus pricing actions?

A: J.K. Symancyk stated mix is largely the driver; in fashion, lab-grown diamonds expanding the category drive AUR, and in bridal, mix including lab and natural markets drives AUR.

Q: How do you think of the playbook for holiday this year?

A: J.K. Symancyk mentioned focusing on assortment gaps from last year, investing in lab-grown diamond fashion, tripling LGD fashion ownership below $1,000, and aligning assortments with brand positioning for Kay, Zales, and Jared.

Q: What's the outlook for the bridal business unit velocity?

A: Joan Hilson said bridal unit velocity is relatively flat, with a low single-digit expected increase, and focusing on trading up into higher carat weights.