UBS Reiterates Buy on Signet Jewelers After Positive Holiday Sales Signals

Group 1 - UBS reiterated its Buy rating and $115 price target on Signet Jewelers, citing encouraging indications for U.S. jewelry demand following the holiday season [1] - Investors had been questioning holiday sales trends amid macroeconomic and tariff-related headwinds, prompting UBS to host an expert call with the CEO of a private jewelry chain [1] - The expert reported that December month-to-date sales were up in the low single-digit percentage range, moderating from mid-single-digit growth year-to-date as of mid-November [2] Group 2 - The expert viewed December trends as a reliable leading indicator for calendar 2026, suggesting that industry-wide jewelry sales could rise by a low single-digit percentage next year [2] - UBS noted that gross margins were improving despite higher gold prices and tariffs, while promotional activity remained relatively stable year over year [3] - These sales and margin trends were supportive of Signet's earnings outlook, leading UBS to reaffirm its Buy rating [3]