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

Core Insights - Cooper Creek Partners Management reduced its position in Signet Jewelers by approximately 890,000 shares during the third quarter, bringing its holdings down to 858,680 shares valued at $82.4 million [2][7] - Despite the reduction in holdings, Signet Jewelers has shown signs of operational stabilization, with a solid second quarter performance and improved profitability [6][10] Company Overview - Signet Jewelers operates as a leading specialty retailer in the diamond jewelry segment, with a market capitalization of $4.1 billion and revenue of $6.8 billion over the trailing twelve months (TTM) [4][5] - The company emphasizes omnichannel retailing, leveraging both physical stores and digital platforms to reach a diverse customer base [5] Financial Performance - In the second quarter, Signet reported sales of $1.5 billion, reflecting a 3% year-over-year increase, with same-store sales rising by 2% [9] - The company achieved an operating income of $2.8 million for the quarter, a significant improvement from a loss of $100.9 million in the previous year [9] - Management raised fiscal year 2026 guidance, citing margin expansion and an improving tariff landscape [9] Market Position - As of the latest filing, Signet's share price was $100.16, remaining relatively flat over the past year, contrasting with the S&P 500's nearly 14% gain during the same period [3] - Cooper Creek's reduction in stake from 4.8% to 2.5% of reportable assets indicates a lighter risk posture, although the remaining equity stake still represents a meaningful investment [7]