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]

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%。 政治与流行文化的互动 2025.08. 27 本文字数：1548，阅读时长大约3分钟 作者 | 第一财经 高雅 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。 在斯威夫特发布的官方订婚照片中，戒指作为焦点之一获 ...

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]

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][10] - 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][11] 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%, contributing significantly to the growth strategy [4][30] - Combined distribution center volumes increased by 29%, 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 delivered 11.3% like-for-like sales growth [17] - International expansion included 16 new stores opened offshore, with a total of 77 stores across New Zealand, Ireland, and Dubai [28] - The company anticipates continued growth in the international markets, particularly in New Zealand [28][29] Company Strategy and Development Direction - The company focuses on four key growth pillars: domestic growth, international expansion, product differentiation, and improved efficiencies [23][24] - Domestic growth aims to expand market leadership and pharmacy network in underpenetrated locations [25] - International expansion is seen as an emerging growth engine, with a focus on profitable growth in existing markets [28] 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 [34][35] - The merger is expected to provide significant synergies, with an upgraded target of $100,000,000 per annum [5][48] - Management noted that the health and beauty space remains competitive, but the company continues to gain market share [66] Other Important Information - The company declared a final dividend of $0.13 per share, fully franked, in line with its stated payout ratio [6][21] - The balance sheet remains strong, with a conservative leverage ratio of 0.85x [11][20] Q&A Session Summary Question: Discussion on Wagner's product profit increment into 2026 - Management indicated that while there was a benefit in 2025, full-year benefits from Wagner are expected in 2026 as the product range expands [37] Question: Margin drivers and synergy achievement - Management stated that margin enhancement will come from a mix of own label products, operating leverage, and growth [38] Question: Cost inflation and operating leverage - Management explained that operating leverage will be driven by existing capacity in distribution centers, with some inflation expected [44] Question: Synergy upgrade from $60 million to $100 million - The upgrade was driven by detailed data analysis post-merger, identifying multiple areas for synergy beyond just supply terms [48] Question: Addressing under-penetration in certain markets - Management noted that regulatory challenges exist, but they have successfully worked with regulators to gain approvals for new stores [52] Question: Expected D&A and CapEx for FY 2026 - Management expects D&A to remain consistent, with CapEx also expected to be stable unless compelling investment opportunities arise [56][57] Question: Impact of establishing a distribution center in Ireland - Management believes the new DC will positively impact profitability and support growth in the Irish market [60][62] Question: Competitive dynamics in health and beauty products - Management acknowledged competition but emphasized their competitive pricing and product range as advantages [66] Question: Uptake of GLP-1 products - Management confirmed a material uptake in GLP-1 products, expecting continued growth without a slowdown [68]

Financial Performance - Normalised revenue increased by 82.3% to $6.0085 billion[12, 21], and normalised EBIT increased by 41.4% to $834.5 million[11, 12, 21, 74] - Statutory NPAT increased by 40% to $579.1 million[12] - Pro-forma revenue reached $9.6 billion[13, 27], and pro-forma EBIT was $903.4 million[13, 27] - Net debt to normalised EBITDA ratio is 0.85x[14, 18, 37] Growth and Expansion - Chemist Warehouse (CW) retail network sales increased by 14% to $10.3 billion[10] - Australian CW franchise stores experienced 11.3% like-for-like sales growth[10, 30] - The company has expanded to 674 Chemist Warehouse stores globally[10, 46, 74] Synergies and Efficiencies - Synergies target upgraded to $100 million per annum by year four[10, 56, 58] - Distribution Centre (DC) volumes increased by 29% to over 532 million units[10, 57] - Logistics costs decreased by 11% per unit[10] Product Strategy - Over 20% growth in FY25 sales of own and exclusive label products[10, 54] - Launched Wagner generic medicines in November 2024[10, 54]

Group 1 - Taylor Swift announced her engagement to Travis Kelce, which quickly influenced the capital markets [1] - The engagement announcement post received over 16 million likes and 600,000 shares within hours, becoming a social media sensation [1] - Following the news, Signet Jewelers' stock rose by 3.12%, indicating a potential surge in demand for engagement rings among Swift's fanbase [1] Group 2 - Swift's influence extends beyond the music industry, with her social media activity capable of impacting stock market trends [2] - The blurring lines between pop culture and financial markets are highlighted by this engagement event [2] - Swift's previous global tour, "Eras Tour," significantly boosted local economies in concert cities, showcasing her economic impact [1]