Core Insights - Signet Jewelers Limited (SIG) reported strong second-quarter fiscal 2026 results, with both revenues and earnings exceeding expectations and showing year-over-year growth [1][9] - The company has raised its fiscal 2026 outlook following these positive results [1] Financial Performance - Adjusted earnings per share (EPS) for Q2 were $1.61, surpassing the Zacks Consensus Estimate of $1.21, and reflecting a 28.8% increase from $1.25 in the prior year [2][9] - Total sales reached $1,535.1 million, exceeding the consensus estimate of $1,498 million, and marking a 3% year-over-year increase [3][9] - Gross profit was $591.9 million, up 4.5% from $566.3 million in the previous year, with a gross margin increase of 60 basis points to 38.6% [6][9] - Selling, general and administrative (SG&A) expenses were $505.3 million, a 1.4% increase from $498.4 million, with SG&A as a percentage of sales decreasing by 50 basis points to 32.9% [7] Segment Performance - North American segment sales increased 2.1% year over year to $1.43 billion, surpassing the Zacks Consensus Estimate of $1.40 billion [10] - International segment sales rose 6.1% year over year to $91.8 million, exceeding the consensus estimate of $85 million [10] Store Count and Inventory - As of August 2, 2025, Signet operated 2,623 stores, down from 2,642, due to eight openings and 27 closures [11] - The company ended the fiscal second quarter with cash and cash equivalents of $281.4 million and inventories of $1.99 billion [12] Share Repurchase and Guidance - In Q2, Signet repurchased approximately 446 thousand shares for $32 million, with a total of 2.5 million shares repurchased over the past six months for $150 million [13] - For fiscal 2026, total sales are now expected to be between $6.67 billion and $6.82 billion, with adjusted EPS guidance raised to between $8.04 and $9.57 [17][18]

Signet Jewelers (SIG) Q2 2026 Earnings Call September 02, 2025 08:30 AM ET Company ParticipantsRob Ballew - SVP - IR & Capital MarketsJ.K. Symancyk - CEO & DirectorJoan Hilson - Chief Operating & Financial OfficerPaul Lejuez - Managing DirectorLorraine Hutchinson - Managing DirectorRandal Konik - Managing DirectorRobert Bischoff - Equity Research AssociateMauricio Serna - Executive DirectorDana Telsey - CEO & Chief Research OfficerConference Call ParticipantsJim Sanderson - Equity Research AnalystOperatorGo ...

Financial Data and Key Metrics Changes - Revenue for the quarter was over $1.5 billion, with same-store sales growth of 2%, driven by growth in fashion and services [16][19] - Adjusted operating income grew more than 20% to $85 million, with adjusted EPS at $1.61, a 29% increase from last year [19][24] - Gross margin rate expanded by 60 basis points year-over-year, with merchandise margin expansion contributing to this growth [17][18] Business Line Data and Key Metrics Changes - Fashion delivered a 2% same-store sales growth, with lab-grown diamond (LGD) products showing strong performance, particularly at key gifting price points [16][19] - Services grew over 7% in the quarter, led by higher attachment rates of extended service agreements [16] - Bridal comps were roughly flat, but the three largest brands delivered mid-single-digit revenue growth [16] Market Data and Key Metrics Changes - LGD fashion penetration grew to approximately 14% of fashion sales, indicating a significant increase in customer interest [5][48] - The company expects to triple the number of LGD fashion pieces priced below $1,000 compared to last year [13][19] - The impact of tariffs, particularly from India, has been a concern, with current tariffs at 50% due to recent increases [25][80] Company Strategy and Development Direction - The company is focused on its "Grow Brand Love" strategy, emphasizing distinct merchandise, enhanced marketing, and unique customer experiences [3][5] - There is a strong emphasis on modernizing brands like Kay and Zales to attract a younger audience and increase repeat purchases [9][10] - The marketing strategy has shifted to a full-funnel approach, with increased spending on social media channels [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the holiday season with the right merchandise assortment and marketing campaigns [12][26] - The company is optimistic about consumer spending during the holiday season, despite a measured consumer environment [66][71] - Management highlighted the importance of maintaining strong supplier relationships to mitigate tariff impacts [32][79] Other Important Information - The company repurchased approximately $32 million of shares in the quarter, with a total of roughly $150 million year-to-date [20] - The balance sheet remains strong, with cash ending the quarter at $281 million and total liquidity exceeding $1.4 billion [19][20] - The company is actively evaluating the positioning of its digital brands, particularly Blue Nile and James Allen, to improve performance [21][22] Q&A Session Summary Question: Can you talk about the driver of AUR in both bridal and fashion? - Management indicated that mix is largely driving AUR growth, with lab-grown diamonds expanding the category [28][29] Question: How are you thinking about the potential wrap-around into the first half of 2026 regarding tariffs? - Management noted that they have tools to mitigate tariff impacts and are well-positioned to manage costs [31][32] Question: Can you give us an update on the bridal business? - Management reported positive AUR trends in bridal, with a focus on higher carat weights and milestone gifting [37][39] Question: What are your plans for marketing into the holiday season for bridal? - Management emphasized a company-wide effort to reduce discounting and improve pricing strategies across brands [41][42] Question: Can you elaborate on your third quarter performance? - Management stated that the third quarter guidance is measured, reflecting various factors, but they are pleased with the momentum [64][66] Question: How did the lab-grown diamond business perform in the second quarter? - Management reported a 14% penetration rate in fashion for lab-grown diamonds, with positive margin performance [72][73]

Company Performance - Signet (SIG) reported quarterly earnings of $1.61 per share, exceeding the Zacks Consensus Estimate of $1.21 per share, and up from $1.25 per share a year ago, representing an earnings surprise of +33.06% [1] - The company posted revenues of $1.54 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.51% and up from $1.49 billion year-over-year [2] - Over the last four quarters, Signet has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Signet shares have increased approximately 9.1% since the beginning of the year, compared to the S&P 500's gain of 9.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $1.35 billion, and for the current fiscal year, it is $9.12 on revenues of $6.76 billion [7] - The Zacks Rank for Signet is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Retail - Jewelry industry, to which Signet belongs, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Signet Jewelers, the owner of the Zales and Jared chains, raised its full-year sales guidance as consumers continued to spend on jewelry despite signs of a slowdown for other discretionary goods https://t.co/Ka5YcBe0Hs ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Signet Jewelers delivered strong Q2 Fiscal 2026 results exceeding guidance, driven by effective strategies that led to raised full-year forecasts [Q2 Fiscal 2026 Performance Highlights](index=1&type=section&id=Q2%20Fiscal%202026%20Performance%20Highlights) The company exceeded guidance with sales growth, positive same-store sales, and significant increases in adjusted operating income and EPS Q2 FY26 Key Metrics | Metric | Q2 FY26 | Q2 FY25 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Sales | $1.5 billion | $1.491 billion | +3.0% | | Same Store Sales (SSS) | +2.0% | -3.4% | +5.4 pp | | Merchandise AUR | +9% | N/A | N/A | | Operating Income (GAAP) | $2.8 million | $(100.9) million | Significant improvement | | Adjusted Operating Income | $85.4 million | $68.6 million | +24.5% | | Diluted Loss Per Share (GAAP) | $(0.22) | $(2.28) | Significant improvement | | Adjusted Diluted EPS | $1.61 | $1.25 | +28.8% | - Merchandise Average Unit Retail (AUR) increased by **9%**, with Bridal up **4%** and Fashion up **12%**[3](index=3&type=chunk) - Diluted loss per share includes **$2.01** of non-cash impairment charges, primarily related to Digital brands and restructuring[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed strong performance to fashion assortment and promotional strategies, leading to raised full-year guidance - CEO J.K. Symancyk emphasized the expansion of on-trend fashion assortment and effective promotion/pricing strategies, leading to a combined same-store sales increase of **5%** at Kay, Zales, and Jared[2](index=2&type=chunk) - CFO Joan Hilson reported **over 20% growth** in Adjusted Operating Income, driven by comparable sales growth, gross margin expansion, and cost savings from reorganization[2](index=2&type=chunk) - The company is raising its Fiscal 2026 guidance, reflecting strong Q2 results and Q3 expectations, while assuming a measured consumer environment[2](index=2&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) The company demonstrated significant year-over-year financial improvement with sales growth, margin expansion, and a return to GAAP profitability [Key Financial Metrics (Q2 & YTD FY26 vs FY25)](index=2&type=section&id=Key%20Financial%20Metrics%20(Q2%20%26%20YTD%20FY26%20vs%20FY25)) Signet showed significant financial improvement in Q2 and YTD FY26, with positive sales growth and a return to GAAP profitability Financial Metrics Summary | (in millions, except per share amounts) | Q2 Fiscal 2026 | Q2 Fiscal 2025 | YTD Fiscal 2026 | YTD Fiscal 2025 | | :------------------------------------ | :------------- | :------------- | :-------------- | :-------------- | | Sales | $1,535.1 | $1,491.0 | $3,076.7 | $3,001.8 | | SSS % change | 2.0 % | (3.4)% | 2.2 % | (6.2)% | | GAAP Operating income (loss) | $2.8 | $(100.9) | $50.9 | $(51.1) | | Operating margin | 0.2 % | (6.8)% | 1.7 % | (1.7)% | | Diluted EPS (loss per share) | $(0.22) | $(2.28) | $0.58 | $(3.17) | | Adjusted operating income | $85.4 | $68.6 | $155.7 | $126.4 | | Adjusted operating margin | 5.6 % | 4.6 % | 5.1 % | 4.2 % | | Adjusted diluted EPS | $1.61 | $1.25 | $2.77 | $2.35 | [Detailed Q2 Fiscal 2026 Results](index=2&type=section&id=Detailed%20Q2%20Fiscal%202026%20Results) Q2 FY26 profitability improved through gross margin expansion and SG&A leverage, driving a return to positive GAAP operating income [Gross Margin and SG&A](index=2&type=section&id=Gross%20Margin%20and%20SG%26A) Gross margin expanded due to improved merchandise margin and cost leverage, while SG&A as a percentage of sales decreased Margin and Expense Analysis | Metric | Q2 Fiscal 2026 | Q2 Fiscal 2025 | Change (YoY) | | :---------------- | :------------- | :------------- | :----------- | | Gross Margin | $591.9 million | $566.3 million | +$25.6 million | | Gross Margin Rate | 38.6% | 38.0% | +60 bps | | SG&A | $505.3 million | $498.4 million | +$6.9 million | | SG&A as % of Sales | 32.9% | 33.4% | -50 bps | [Operating Income](index=2&type=section&id=Operating%20Income) The company achieved positive GAAP operating income, a significant turnaround from the prior year, despite substantial non-cash impairment charges Operating Income Analysis | Metric | Q2 Fiscal 2026 | Q2 Fiscal 2025 | Change (YoY) | | :---------------------- | :------------- | :------------- | :----------- | | Operating Income (GAAP) | $2.8 million | $(100.9) million | +$103.7 million | | Operating Margin (GAAP) | 0.2% | (6.8)% | +7.0 pp | | Adjusted Operating Income | $85.4 million | $68.6 million | +$16.8 million | | Adjusted Operating Margin | 5.6% | 4.6% | +1.0 pp | - GAAP operating income for Q2 FY26 includes approximately **$80 million** of non-cash impairment charges, primarily related to Digital brands, and restructuring charges[6](index=6&type=chunk) [Income Tax and Net Loss/EPS](index=2&type=section&id=Income%20Tax%20and%20Net%20Loss%2FEPS) Adjusted diluted EPS increased due to higher operating income and a lower share count, offsetting a higher effective tax rate Tax and EPS Analysis | Metric | Q2 Fiscal 2026 | Q2 Fiscal 2025 | Change (YoY) | | :-------------------------- | :------------- | :------------- | :----------- | | Income Tax Expense (GAAP) | $14.2 million | $1.6 million | +$12.6 million | | Adjusted Income Tax Expense | $21.4 million | $13.3 million | +$8.1 million | | Diluted Loss Per Share (GAAP) | $(0.22) | $(2.28) | +$2.06 | | Adjusted Diluted EPS | $1.61 | $1.25 | +$0.36 | - The current quarter's diluted loss per share includes **$2.01** of charges related to impairment and restructuring[8](index=8&type=chunk) [Balance Sheet and Cash Flow Summary](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Summary) The company improved operating cash flow year-to-date, reducing cash usage, while inventory levels remained stable Cash Flow Summary | Metric | Fiscal 2026 YTD | Fiscal 2025 YTD | | :-------------------------------- | :-------------- | :-------------- | | Cash used in operating activities | $89.0 million | $114.4 million | Balance Sheet Summary | Metric | As of August 2, 2025 | As of August 2, 2024 | | :------------------------ | :------------------- | :------------------- | | Cash and cash equivalents | $281.4 million | $403.1 million | | Inventory | $2.0 billion | $1.977 billion | [Capital Returns and Dividends](index=2&type=section&id=Capital%20Returns%20and%20Dividends) Signet continued its capital return program through share repurchases and declared a quarterly cash dividend for Q3 FY26 Share Repurchase Activity | Metric | Q2 Fiscal 2026 | YTD Fiscal 2026 | | :-------------------------------- | :------------- | :-------------- | | Common Shares Repurchased | 446,000 | 2.5 million | | Value of Shares Repurchased | $32 million | $150 million | | Share Repurchase Authorization Remaining | $570 million | N/A | - A quarterly cash dividend of **$0.32 per share** was declared for the third quarter of Fiscal 2026, payable November 21, 2025[11](index=11&type=chunk) [Business Segment Performance](index=10&type=section&id=Business%20Segment%20Performance) The North America segment drove overall sales growth and a significant improvement in operating income, while the International segment also grew [Sales by Segment](index=10&type=section&id=Sales%20by%20Segment) The North America segment led sales growth with a 2.1% increase, while the International segment's growth was boosted by favorable currency translation Q2 FY26 Sales Performance by Segment | Second Quarter of Fiscal 2026 | Same store sales | Non-same store sales, net | Total sales at constant exchange rate | Exchange translation impact | Total sales as reported | Total sales (in millions) | | :---------------------------- | :--------------- | :------------------------ | :------------------------------------ | :-------------------------- | :---------------------- | :------------------------ | | North America segment | 2.0 % | 0.1 % | 2.1 % | — % | 2.1 % | $1,426.7 | | International segment | 0.8 % | (0.4)% | 0.4 % | 5.7 % | 6.1 % | $91.8 | | Other segment | nm | nm | nm | nm | nm | $16.6 | | Signet | 2.0 % | 0.6 % | 2.6 % | 0.4 % | 3.0 % | $1,535.1 | [Operating Income by Segment](index=10&type=section&id=Operating%20Income%20by%20Segment) The North America segment returned to positive GAAP operating income and grew adjusted operating income, while the International segment's loss was stable Q2 Operating Income (Loss) by Segment (GAAP) | Operating income (loss) in millions | Second quarter Fiscal 2026 | Second quarter Fiscal 2025 | | :---------------------------------- | :------------------------- | :------------------------- | | North America segment | $23.0 (1.6% of sales) | $(77.2) (-5.5% of sales) | | International segment | $(2.2) (-2.4% of sales) | $(4.2) (-4.9% of sales) | | Other segment | $(0.4) | $(2.6) | | Corporate and unallocated expenses | $(17.6) | $(16.9) | | Total operating income | $2.8 (0.2% of sales) | $(100.9) (-6.8% of sales) | Q2 Adjusted Operating Income (Loss) by Segment | Adjusted operating income (loss) in millions | Second quarter Fiscal 2026 | Second quarter Fiscal 2025 | | :----------------------------------------- | :------------------------- | :------------------------- | | North America segment | $103.8 (7.3% of sales) | $90.1 (6.4% of sales) | | International segment | $(2.1) (-2.3% of sales) | $(2.0) (-2.3% of sales) | | Other segment | $(0.4) | $(2.6) | | Corporate and unallocated expenses | $(15.9) | $(16.9) | | Total adjusted operating income | $85.4 (5.6% of sales) | $68.6 (4.6% of sales) | [Real Estate Portfolio](index=10&type=section&id=Real%20Estate%20Portfolio) Signet's real estate portfolio saw a slight reduction in store count and selling space, reflecting ongoing optimization efforts - As of August 2, 2025, Signet operated **2,623 stores**, a decrease of 19 stores from year-end Fiscal 2025[28](index=28&type=chunk)[29](index=29&type=chunk) - Total selling space decreased by **0.2%** to 4.0 million square feet compared to year-end Fiscal 2025[28](index=28&type=chunk) Store Count Activity | Store count by segment | February 1, 2025 | Openings | Closures | August 2, 2025 | | :--------------------- | :--------------- | :------- | :------- | :------------- | | North America segment | 2,379 | 8 | (23) | 2,364 | | International segment | 263 | — | (4) | 259 | | Signet | 2,642 | 8 | (27) | 2,623 | [Outlook and Fiscal 2026 Guidance](index=3&type=section&id=Outlook%20and%20Fiscal%202026%20Guidance) The company raised its full-year Fiscal 2026 guidance across key metrics, reflecting strong Q2 results and current market conditions [Third Quarter Fiscal 2026 Guidance](index=3&type=section&id=Third%20Quarter%20Fiscal%202026%20Guidance) Signet anticipates Q3 sales between $1.34 billion and $1.38 billion, with same-store sales ranging from a slight decrease to a slight increase Q3 FY26 Guidance | Metric | Third Quarter Fiscal 2026 Guidance | | :---------------------- | :------------------------------- | | Total sales | $1.34 to $1.38 billion | | Same store sales | (1.25%) to +1.25% | | Adjusted operating income | $3 to $17 million | | Adjusted EBITDA | $49 to $63 million | [Full Year Fiscal 2026 Guidance Update](index=3&type=section&id=Full%20Year%20Fiscal%202026%20Guidance%20Update) Signet raised its full-year Fiscal 2026 guidance for sales, same-store sales, adjusted operating income, and adjusted diluted EPS FY26 Guidance Comparison | Metric | Updated Fiscal 2026 Guidance | Previous Fiscal 2026 Guidance | | :---------------------- | :--------------------------- | :---------------------------- | | Total sales | $6.67 to $6.82 billion | $6.57 to $6.80 billion | | Same store sales | (0.75%) to +1.75% | (2.0%) to +1.5% | | Adjusted operating income | $445 to $515 million | $430 to $510 million | | Adjusted EBITDA | $630 to $700 million | $615 to $695 million | | Adjusted diluted EPS | $8.04 to $9.57 | $7.70 to $9.38 | [Guidance Assumptions and Sustainability](index=3&type=section&id=Guidance%20Assumptions%20and%20Sustainability) The FY26 guidance assumes a measured consumer environment, potential tariff impacts, and planned capital expenditures - Guidance assumes a measured consumer environment with variability in holiday spending[15](index=15&type=chunk) - Adjusted operating income is sensitive to India's combined tariff rate; removal of the Russian trade penalty could lead to the upper half of the guidance range[15](index=15&type=chunk) - Planned capital expenditures are approximately **$145 to $160 million**, with a net square footage decrease of about **1%** for the year[15](index=15&type=chunk) - Signet celebrates its 27th anniversary of supporting St. Jude Children's Research Hospital, having raised **over $110 million** to date[14](index=14&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) Signet Jewelers is the world's largest diamond jewelry retailer, operating under various well-known brands with a focus on sustainability [About Signet Jewelers](index=4&type=section&id=About%20Signet%20Jewelers) Signet Jewelers Limited is the world's largest retailer of diamond jewelry, operating approximately 2,600 stores under various brand names - Signet Jewelers is the world's largest retailer of diamond jewelry, operating approximately **2,600 stores**[17](index=17&type=chunk) - Key brand names include Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones[17](index=17&type=chunk) - The company is purpose-driven and sustainability-focused, adhering to the principles of the United Nations Global Compact[17](index=17&type=chunk) [Safe Harbor Statement and Risk Factors](index=4&type=section&id=Safe%20Harbor%20Statement%20and%20Risk%20Factors) The release contains forward-looking statements subject to various risks including strategic execution, tariffs, economic conditions, and supply chain disruptions - Forward-looking statements are identified by words like 'guidance,' 'expects,' 'anticipates,' and 'will,' and are not guarantees of future performance[18](index=18&type=chunk) - Key risks include executing business initiatives, attracting talent, mitigating tariff impacts, economic conditions, consumer spending shifts, supply chain disruptions, and regulatory changes[18](index=18&type=chunk)[19](index=19&type=chunk) - Investors are directed to the 'Risk Factors' and 'Forward-Looking Statements' sections of Signet's Fiscal 2025 Annual Report on Form 10-K for a comprehensive discussion of risks[20](index=20&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) A conference call was scheduled for September 2, 2025, with webcast and replay available on the company's website - Conference call held on September 2, 2025, at 8:30 a.m. ET, with webcast available at www.signetjewelers.com[16](index=16&type=chunk) - Call details provided for North America (toll-free) and International locations, with Conference ID 85359[16](index=16&type=chunk) [Investor and Media Contacts](index=5&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders seeking further information - Investor Relations contact: Rob Ballew, Senior Vice President, Investor Relations & Capital Markets (robert.ballew@signetjewelers.com or investorrelations@signetjewelers.com)[21](index=21&type=chunk) - Media contact: Colleen Rooney, Chief Corporate Affairs & Sustainability Officer (colleen.rooney@signetjewelers.com, +1-330-668-5932)[22](index=22&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited financial statements detail the company's operating performance, financial position, and cash flows for the reporting periods [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements detail revenues, costs, and profitability, highlighting the shift from operating loss to income and the impact of asset impairments Statements of Operations | (in millions, except per share amounts) | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :------------------------------------ | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Sales | $1,535.1 | $1,491.0 | $3,076.7 | $3,001.8 | | Cost of sales | (943.2) | (924.7) | (1,886.0) | (1,863.1) | | Gross margin | 591.9 | 566.3 | 1,190.7 | 1,138.7 | | Selling, general and administrative expenses | (505.3) | (498.4) | (1,031.3) | (1,013.8) | | Asset impairments, net | (80.2) | (166.2) | (83.4) | (168.6) | | Other operating expense, net | (3.6) | (2.6) | (25.1) | (7.4) | | Operating income (loss) | 2.8 | (100.9) | 50.9 | (51.1) | | Interest (expense) income, net | (0.1) | 2.4 | 0.7 | 11.0 | | Other non-operating income (expense), net | 2.4 | 1.6 | (0.9) | 1.8 | | Income (loss) before income taxes | 5.1 | (96.9) | 50.7 | (38.3) | | Income taxes | (14.2) | (1.6) | (26.3) | (8.1) | | Net (loss) income | $(9.1) | $(98.5) | $24.4 | $(46.4) | | Dividends on redeemable convertible preferred shares | — | (3.0) | — | (95.2) | | Net (loss) income attributable to common shareholders | $(9.1) | $(101.5) | $24.4 | $(141.6) | | Earnings (loss) per common share: Basic | $(0.22) | $(2.28) | $0.58 | $(3.17) | | Diluted | $(0.22) | $(2.28) | $0.58 | $(3.17) | | Weighted average common shares outstanding: Basic | 41.1 | 44.5 | 41.8 | 44.6 | | Diluted | 41.1 | 44.5 | 42.0 | 44.6 | | Dividends declared per common share | $0.32 | $0.29 | $0.64 | $0.58 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets present Signet's financial position, detailing assets, liabilities, and equity, and showing a decrease in cash and total liabilities Balance Sheets | (in millions) | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------------------------------- | :------------- | :--------------- | :------------- | | Assets | | | | | Current assets: Cash and cash equivalents | $281.4 | $604.0 | $403.1 | | Inventories | 1,986.6 | 1,937.3 | 1,977.2 | | Income taxes | 29.7 | 14.3 | 9.2 | | Other current assets | 166.8 | 156.6 | 186.2 | | Total current assets | 2,464.5 | 2,712.2 | 2,575.7 | | Non-current assets: Property, plant and equipment, net | 477.7 | 506.5 | 470.5 | | Operating lease right-of-use assets | 1,102.5 | 1,102.4 | 956.2 | | Goodwill | 428.4 | 482.0 | 631.5 | | Intangible assets, net | 291.5 | 307.2 | 358.9 | | Other assets | 286.1 | 314.8 | 320.3 | | Deferred tax assets | 292.1 | 301.5 | 300.7 | | Total assets | $5,342.8 | $5,726.6 | $5,613.8 | | Liabilities, Redeemable convertible preferred shares, and Shareholders' equity | | | | | Current liabilities: Accounts payable | $512.7 | $767.0 | $547.6 | | Accrued expenses and other current liabilities | 388.4 | 366.8 | 363.1 | | Deferred revenue | 360.7 | 362.5 | 347.8 | | Operating lease liabilities | 290.4 | 279.9 | 250.9 | | Income taxes | 49.0 | 55.3 | 17.6 | | Total current liabilities | 1,601.2 | 1,831.5 | 1,527.0 | | Non-current liabilities: Operating lease liabilities | 887.3 | 900.0 | 793.5 | | Other liabilities | 76.9 | 85.1 | 90.5 | | Deferred revenue | 885.5 | 885.1 | 874.0 | | Deferred tax liabilities | 163.6 | 173.1 | 188.5 | | Total liabilities | 3,614.5 | 3,874.8 | 3,473.5 | | Commitments and contingencies | | | | | Redeemable Series A Convertible Preference Shares | — | — | 223.1 | | Shareholders' equity: Common shares | 12.6 | 12.6 | 12.6 | | Additional paid-in capital | 110.0 | 120.1 | 165.2 | | Other reserves | 0.4 | 0.4 | 0.4 | | Treasury shares at cost | (1,882.4) | (1,749.3) | (1,659.7) | | Retained earnings | 3,743.1 | 3,745.5 | 3,664.6 | | Accumulated other comprehensive loss | (255.4) | (277.5) | (265.9) | | Total shareholders' equity | 1,728.3 | 1,851.8 | 1,917.2 | | Total liabilities, redeemable convertible preferred shares and shareholders' equity | $5,342.8 | $5,726.6 | $5,613.8 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company significantly reduced cash used in operating and financing activities compared to the prior year Statements of Cash Flows | (in millions) | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :-------------------------------------------------- | :---------------------------- | :---------------------------- | | Operating activities: Net income (loss) | $24.4 | $(46.4) | | Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization | 74.0 | 74.5 | | Amortization of unfavorable contracts | (0.9) | (0.9) | | Share-based compensation | 13.7 | 18.3 | | Deferred taxation | 2.0 | (13.1) | | Asset impairments, net | 83.4 | 168.6 | | Other non-cash movements | 3.5 | 3.1 | | Changes in operating assets and liabilities: Inventories | (35.9) | (41.4) | | Other assets | 14.0 | 33.2 | | Accounts payable | (248.5) | (193.3) | | Accrued expenses and other liabilities | 10.1 | (36.1) | | Change in operating lease assets and liabilities | (3.8) | (6.8) | | Deferred revenue | (3.1) | (22.1) | | Income tax receivable and payable | (21.9) | (52.0) | | Net cash used in operating activities | $(89.0) | $(114.4) | | Investing activities: Capital expenditures | (60.6) | (51.3) | | Other investing activities, net | (0.1) | (5.9) | | Net cash used in investing activities | $(60.7) | $(57.2) | | Financing activities: Dividends paid on common shares | (25.8) | (23.1) | | Dividends paid on redeemable convertible preferred shares | — | (14.4) | | Repurchase of common shares | (149.7) | (47.2) | | Repurchase of redeemable convertible preferred shares | — | (541.0) | | Repayment of Senior Notes | — | (147.8) | | Other financing activities, net | (7.1) | (28.4) | | Net cash used in financing activities | $(182.6) | $(801.9) | | Cash and cash equivalents at beginning of period | 604.0 | 1,378.7 | | Decrease in cash and cash equivalents | (332.3) | (973.5) | | Effect of exchange rate changes on cash and cash equivalents | 9.7 | (2.1) | | Cash and cash equivalents at end of period | $281.4 | $403.1 | [Non-GAAP Financial Measures and Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines non-GAAP measures and provides reconciliations to GAAP figures to offer additional insight into operational performance [Definition of Non-GAAP Measures](index=11&type=section&id=Definition%20of%20Non-GAAP%20Measures) Signet utilizes non-GAAP measures to provide investors with additional insights into underlying business trends and operational performance - Non-GAAP measures are provided to assist investors in evaluating historical trends, current performance, and liquidity[31](index=31&type=chunk) - Key non-GAAP measures include sales changes on a constant currency basis, free cash flow, adjusted operating income/margin, adjusted diluted EPS, and adjusted EBITDA[32](index=32&type=chunk) - These measures exclude impacts of foreign currency fluctuations, capital expenditures, and certain items not reflective of normal operational performance[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow improved year-to-date, indicating a reduced cash outflow compared to the prior year Free Cash Flow | (in millions) | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :-------------------------- | :---------------------------- | :---------------------------- | | Net cash used in operating activities | $(89.0) | $(114.4) | | Capital expenditures | (60.6) | (51.3) | | Free cash flow | $(149.6) | $(165.7) | [Adjusted Operating Income Reconciliation](index=12&type=section&id=Adjusted%20Operating%20Income%20Reconciliation) Adjusted operating income improved significantly after excluding substantial asset impairments and restructuring charges from GAAP results Total Adjusted Operating Income | (in millions) | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :-------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Total operating income (loss) | $2.8 | $(100.9) | $50.9 | $(51.1) | | Asset impairments | 79.8 | 166.2 | 83.0 | 168.1 | | Restructuring and related charges | 2.8 | 1.2 | 21.8 | 5.8 | | Loss on divestitures, net | — | 1.2 | — | 2.5 | | Integration-related expenses | — | 0.9 | — | 1.1 | | Total adjusted operating income | $85.4 | $68.6 | $155.7 | $126.4 | North America Segment Adjusted Operating Income | North America segment adjusted operating income (in millions) | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :---------------------------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | North America segment operating income (loss) | $23.0 | $(77.2) | $106.0 | $6.0 | | Asset impairments | 79.8 | 166.2 | 83.0 | 167.4 | | Restructuring and related charges | 1.0 | 0.2 | 11.9 | 0.8 | | Integration-related expenses | — | 0.9 | — | 1.1 | | North America segment adjusted operating income | $103.8 | $90.1 | $200.9 | $175.3 | International Segment Adjusted Operating Loss | International segment adjusted operating loss (in millions) | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :---------------------------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | International segment operating loss | $(2.2) | $(4.2) | $(9.2) | $(17.2) | | Restructuring and related charges | 0.1 | 1.0 | 0.1 | 5.0 | | Asset impairments | — | — | — | 0.7 | | Loss on divestitures, net | — | 1.2 | — | 2.5 | | International segment adjusted operating loss | $(2.1) | $(2.0) | $(9.1) | $(9.0) | [Adjusted Income Tax and Effective Tax Rate Reconciliation](index=12&type=section&id=Adjusted%20Income%20Tax%20and%20Effective%20Tax%20Rate%20Reconciliation) The adjusted effective tax rate was significantly lower than the GAAP rate after accounting for the tax effects of non-GAAP adjustments Adjusted Income Tax Expense | (in millions) | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :-------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Income tax expense | $14.2 | $1.6 | $26.3 | $8.1 | | Asset impairments | 6.5 | 10.8 | 7.3 | 11.3 | | Restructuring and related charges | 0.7 | 0.4 | 5.4 | 1.5 | | Loss on divestitures, net | — | 0.3 | — | 0.6 | | Integration-related expenses | — | 0.2 | — | 0.2 | | Adjusted income tax expense | $21.4 | $13.3 | $39.0 | $21.7 | Adjusted Effective Tax Rate | | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :-------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Effective tax rate | 278.4 % | (1.7)% | 51.9 % | (21.1)% | | Asset impairments | (229.3)% | 18.5 % | (15.4)% | 30.5 % | | Restructuring and related charges | (24.7)% | 0.7 % | (11.4)% | 4.1 % | | Loss on divestitures, net | — % | 0.5 % | — % | 1.6 % | | Integration-related expenses | — % | 0.3 % | — % | 0.5 % | | Adjusted effective tax rate | 24.4 % | 18.3 % | 25.1 % | 15.6 % | [Adjusted Diluted EPS Reconciliation](index=13&type=section&id=Adjusted%20Diluted%20EPS%20Reconciliation) Adjusted diluted EPS of $1.61 for Q2 FY26 reflects a substantial improvement over the GAAP loss after excluding non-operational charges Adjusted Diluted EPS | | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :------------------------------------ | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Diluted EPS (loss per share) | $(0.22) | $(2.28) | $0.58 | $(3.17) | | Asset impairments | 1.94 | 3.73 | 1.97 | 3.77 | | Restructuring and related charges | 0.07 | 0.03 | 0.52 | 0.13 | | Loss on divestitures, net | — | 0.03 | — | 0.06 | | Integration-related expenses | — | 0.02 | — | 0.02 | | Tax impact of above items | (0.18) | (0.26) | (0.30) | (0.30) | | Deemed dividend on redemption of Preferred Shares | — | — | — | 1.91 | | Dilution effect | — | (0.02) | — | (0.07) | | Adjusted diluted EPS | $1.61 | $1.25 | $2.77 | $2.35 | [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA increased for both Q2 and YTD Fiscal 2026, reflecting improved underlying operating performance Adjusted EBITDA | (in millions) | 13 weeks ended August 2, 2025 | 13 weeks ended August 3, 2024 | 26 weeks ended August 2, 2025 | 26 weeks ended August 3, 2024 | | :------------------------------------ | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Net (loss) income | $(9.1) | $(98.5) | $24.4 | $(46.4) | | Income taxes | 14.2 | 1.6 | 26.3 | 8.1 | | Interest expense (income), net | 0.1 | (2.4) | (0.7) | (11.0) | | Depreciation and amortization | 37.0 | 37.9 | 74.0 | 74.5 | | Amortization of unfavorable contracts | (0.4) | (0.4) | (0.9) | (0.9) | | Other non-operating (income) expense, net | (2.4) | (1.6) | 0.9 | (1.8) | | Share-based compensation | 6.7 | 10.7 | 13.7 | 18.3 | | Other accounting adjustments | 82.6 | 169.5 | 104.8 | 177.5 | | Adjusted EBITDA | $128.7 | $116.8 | $242.5 | $218.3 |

Group 1 - Signet Jewelers Limited is set to release its second-quarter earnings results on September 2, with expected earnings of $1.24 per share, a slight decrease from $1.25 per share in the same period last year [1] - The company projects quarterly revenue of $1.5 billion, an increase from $1.49 billion a year earlier [1] - Recent leadership changes include Julie Yoakum as President of Kay Jewelers and Peoples Jewellers, Stacee Johnson-Williams as Chief Merchandise Operations and Sourcing Officer, and Lisa Laich as Chief Marketing Officer [2] Group 2 - Signet Jewelers' shares fell by 2% to close at $88.05 [2] - Analysts have provided various ratings for the stock, with Telsey Advisory Group maintaining a Market Perform rating and a price target of $92 [8] - Jefferies initiated coverage with a Buy rating and a price target of $102, while Citigroup raised its price target from $85 to $100, maintaining a Buy rating [8]

Group 1 - The announcement of Taylor Swift's engagement to NFL player Travis Kelce has garnered significant attention, with 24 million likes and 9 million shares on social media, indicating a strong public interest and engagement [2] - The engagement has received blessings from various sectors, including entertainment, sports, and even political figures, showcasing the intersection of pop culture and politics [4][3] - The concept of "Taylor Economics" is highlighted, demonstrating the market impact of Swift's public appearances and announcements, such as the rapid sellout of the Ralph Lauren dress she wore in the engagement photo [5][2] Group 2 - The engagement ring, designed by Kindred Lubeck, features a cushion cut and is estimated to weigh between 7 to 9 carats, valued at approximately $250,000 to $500,000, reflecting the luxury market's response to celebrity endorsements [6] - Swift's recent "Eras Tour" has generated an estimated $2.2 billion in ticket sales, making it the highest-grossing tour in history, with direct consumer spending by her fans in the U.S. estimated at around $5 billion [7][6] - The economic impact of Swift's concerts extends beyond ticket sales, with local economies benefiting significantly; for instance, her six shows in Los Angeles created 3,300 jobs and generated $160 million in local revenue [7][6]

来源：@究竟视频微博 【#霉霉订婚引珠宝商股价短期飙升#】#霉霉订婚照连衣裙已迅速售罄# 当地时间8月26日，美国流行音 乐巨星泰勒·斯威夫特宣布与橄榄球运动员、三次超级碗冠军凯尔斯（Travis Kelce）订婚。 截至第一财经记者发稿时，这则宣布订婚的帖子已在社交媒体上获得2400万点赞，并被直接分享900万 次。这一消息已迅速得到了娱乐圈、体育界甚至英国皇室的祝福，并迅速延伸至政治与商业领域。 在当日内阁会议上，美国总统特朗普也对此表示了祝福，"我认为他是一个伟大的球员，也是一个很棒 的人。我觉得她同样是一位了不起的人，所以我祝他们好运。"此番表态与他去年同斯威夫特的公开龃 龉形成强烈反差。 除了政治层面的反响，"泰勒经济学"也再次展现出其显著的市场效应。据报道，斯威夫特在订婚照中所 穿的售价达320美元的拉尔夫·劳伦（Ralph Lauren）连衣裙已迅速售罄。帖文中展示的订婚戒指亦引发 关注，全球最大钻石珠宝零售商徽记珠宝（Signet Jewelers）股价在消息发布后出现了短期内的飙升， 在当天交易中股价上涨超过3%。 #特朗普回应霉霉订婚# ...

Financial Data and Key Metrics Changes - Revenue for the year increased by 82% to $6,000,000,000, driven by market share growth and the Sigma wholesale business [6][10] - Normalized EBIT rose by 41% to $835,000,000, with pro forma EBIT at $903,400,000 [6][11] - Normalized net profit after tax increased by 40% to $579,000,000, with a strong balance sheet showing net debt of $752,000,000 [6][12] - The company declared a final dividend of $0.13 per share, fully franked [7][22] Business Line Data and Key Metrics Changes - Chemist Warehouse retail network sales reached $10,000,000,000, up 14% for the year, with 35 new stores added [3][4] - Own brand portfolio grew by over 20% for the year, contributing to overall growth [4][31] - Combined distribution center volumes increased by 29% to over 530 million units, leading to a reduction in cost per unit by $0.11 [4][11] Market Data and Key Metrics Changes - The Chemist Warehouse Australian store network achieved 11.3% like-for-like sales growth [18] - International expansion included 16 new stores opened offshore, with a total of 77 stores across New Zealand, Ireland, and Dubai [29] - The company anticipates continued growth in international markets, particularly in New Zealand, where retail sales have exceeded $1,000,000,000 [29] Company Strategy and Development Direction - The company focuses on four key growth pillars: domestic growth, international expansion, product differentiation, and improved efficiencies [24][25] - Domestic growth aims to expand market leadership and pharmacy network in underpenetrated locations [26] - International expansion is seen as a growth engine, with a focus on profitable growth in existing markets [25][29] - The company has upgraded synergy targets from $60,000,000 to $100,000,000 per annum, expected to be achieved over the next four years [5][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute plans effectively, with positive momentum continuing into FY 2026 [36] - The operating environment remains competitive, particularly in the health and beauty space, but the company maintains a strong value proposition [69] - Management noted that the merger has strengthened the business, providing enhanced scale and long-term growth pathways [35] Other Important Information - The company has a conservative leverage ratio of 0.85x, indicating strong cash flows and funding capacity [12][21] - The merger accounting has resulted in an increase in goodwill by $3,600,000,000 [21] Q&A Session Summary Question: Profit contribution from Wagner's product line into 2026 - Management indicated that while there was a benefit in FY 2025, full-year benefits from Wagner's will be realized in 2026 as the product range expands [39] Question: Margin drivers for the future - Management stated that margin enhancement will come from a mix of product strategy, operational efficiencies, and growth in network scale [40] Question: Cost control and inflation outlook - Management confirmed that while some inflation is expected, the existing infrastructure allows for cost efficiencies without linear growth in costs [44][45] Question: Synergy target upgrade rationale - The upgrade to the synergy target was driven by detailed analysis post-merger, identifying multiple areas for improvement beyond just supply terms [49][50] Question: Addressing under-penetration in certain markets - Management explained that regulatory processes are in place to facilitate store openings in under-penetrated areas, with a history of successful approvals [53] Question: Expected D&A and CapEx for FY 2026 - Management expects D&A to remain consistent, with potential investments in international markets being evaluated [55][57] Question: Impact of establishing a distribution center in Ireland - Management believes that the new distribution center will positively impact profitability and support growth in the Irish market [62][64] Question: Competitive dynamics in health and beauty products - Management emphasized the company's competitive pricing and product range as key advantages over supermarkets [69] Question: Uptake of GLP-1 products - Management confirmed a material uptake in GLP-1 products, with expectations for continued growth [71] Question: Performance benchmarking in Ireland - Management indicated that turnover per store in Ireland compares favorably to New Zealand and Australia, suggesting strong growth potential [78]