Signet Jewelers (SIG) Fiscal Q2 2027 Earnings Call: Guidance Raised on Credit Deal
Source Tradingkey
Key Takeaways
- Signet Jewelers reported fiscal Q2 2027 revenue of $1.5 billion and same-store sales growth of 2.2%, marking the fifth positive comparable-sales quarter in the past six quarters.
- Adjusted operating income increased 25% to $107 million, while adjusted diluted EPS rose 36%. The adjusted gross margin rate expanded 70 basis points.
- Average unit retail increased 6%, supported by high-single-digit comparable growth at price points above $2,000. Bridal posted low-single-digit growth, while timepieces grew nearly 10%.
- Signet renewed its consumer credit partnership with Bread Financial through December 2035. Management estimates more than $1 billion of incremental non-comparable revenue and operating income over the agreement’s life, with no loss-sharing obligation.
- Management raised full-year same-store sales guidance to between flat and up 2.5% and adjusted operating income guidance to $535 million-$605 million. Adjusted EPS guidance increased by more than 10%.
- The company increased its share repurchase authorization by nearly $400 million and plans to initiate a $125 million accelerated share repurchase in September.
Core Financial Results
| Metric | Fiscal Q2 2027 result | Change or context |
|---|---|---|
| Revenue | $1.5 billion | Same-store sales increased 2.2% |
| Average unit retail | Up 6% | Driven mainly by sales mix and strength at higher price points |
| Adjusted gross margin | Approximately $600 million | Margin rate increased 70 basis points |
| Merchandise margin rate | Up 20 basis points | Included $13 million of tariff refunds above expectations |
| SG&A expense | Down $12 million | Expense rate improved 60 basis points |
| Adjusted operating income | $107 million | Up 25%; margin rate expanded 140 basis points |
| Adjusted diluted EPS | — | Up 36% |
| Ending inventory | $2.0 billion | Down 1% despite higher gold costs |
| Cash | Approximately $525 million | Up nearly $250 million year over year |
| Year-to-date free cash flow | — | Improved by more than $10 million year over year |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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