Why a Hedge Fund Dumped Signet Stock Even as the Jeweler Lifted Its 2026 Outlook

On November 14, New York City-based Cooper Creek Partners Management disclosed in a U.S. Securities and Exchange Commission filing that it reduced its position in Signet Jewelers by about 890,000 shares in the third quarter.

What Happened

According to a filing submitted to the U.S. Securities and Exchange Commission on November 14, Cooper Creek Partners Management LLC reduced its holdings in Signet Jewelers (NYSE:SIG) by 890,547 shares during the third quarter. The fund held 858,680 shares at quarter-end, valued at $82.4 million.

What Else to Know

Top holdings after the filing:

• NYSE:OI: $130.5 million (4.9% of AUM)
• NASDAQ:NWL: $130.2 million (4.9% of AUM)
• NYSE:CXW: $129.7 million (4.9% of AUM)
• NYSE:BBWI: $129 million (4.8% of AUM)
• NYSE:AAP: $107 million (4% of AUM)

As of Friday, shares of Signet Jewelers were priced at $100.16, roughly flat over the past year and well below the S&P 500's nearly 14% gain in the same period.

Company Overview

Company Snapshot

Signet Jewelers is a leading specialty retailer in the diamond jewelry segment, with a broad portfolio of recognized brands and a network of thousands of stores and kiosks. The company leverages both brick-and-mortar and digital channels to reach a diverse customer base through brands such as Kay Jewelers, Zales, Jared, James Allen, and H.Samuel, operating both physical stores and online platforms, and emphasizing omnichannel retailing and operational scale. Its competitive edge lies in brand recognition, extensive distribution, and vertical integration in diamond sourcing and polishing. The company targets mass-market and mid-market consumers in North America and the UK, serving customers through mall-based, off-mall, and e-commerce channels.

Foolish Take

Cooper Creek's downsizing of Signet comes right as the jewelry firm shows early signs of operational stabilization. Despite a depressed share-price backdrop, the retailer delivered a solid second quarter, with improving profitability and higher full-year guidance, underscoring a business that may be on stronger footing than the stock suggests.

Cooper Creek sold roughly 890,000 shares in the third quarter, shrinking Signet from 4.8% to 2.5% of reportable assets. It also reduced 605,000 call options, further signaling a lighter risk posture even as the remaining equity stake—858,680 shares worth $82.4 million—still ranks as a meaningful holding for the fund.

Operationally, Signet posted $1.5 billion in second-quarter sales, up 3% year-over-year, with same-store sales rising 2% and strength across Kay, Zales, and Jared. The company swung into positive territory with its operating income, which came in at $2.8 million for the quarter, compared to a loss of $100.9 million in the second quarter. Management also raised fiscal year 2026 guidance, citing margin expansion and an improving tariff landscape.

So what should long-term investors take away? Ultimately, Signet is behaving like a business improving faster than its stock, offering leverage to any recovery in discretionary spending and holiday demand, and Cooper Creek's still-sizable stake in the company is a sign of continued conviction.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable assets: Investments that must be disclosed in regulatory filings, typically above a certain threshold.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or share held in a company by an investor or fund.
Omnichannel retailing: A sales strategy integrating physical stores and online platforms for a seamless customer experience.
Vertical integration: A company's control over multiple stages of its supply chain, from sourcing to sales.
Quarter-end: The last day of a company’s fiscal quarter, used for reporting financial positions.
Filing: An official document submitted to a regulatory body, such as the SEC, disclosing financial or ownership information.
Specialty retailer: A company focused on selling a specific category of products, often with deep expertise in that area.
Mass-market: Products or services designed to appeal to a broad segment of consumers.
Mid-market: Products or services aimed at consumers between the budget and luxury segments.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.