Core Viewpoint - Signet Jewelers Ltd. reported stronger-than-expected third-quarter earnings, but the company remains cautious about the holiday outlook due to pressures on value-conscious shoppers [2][4]. Financial Performance - The company reported third-quarter adjusted earnings per share of 63 cents, surpassing analysts' expectations of 29 cents [2]. - Signet's higher earnings and wider margins were attributed to firm pricing, improved assortments, and tighter cost controls [3]. - The firm anticipates fourth-quarter sales between $2.24 billion and $2.37 billion [3]. Analyst Insights - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Signet's stock, raising the price target from $92 to $96 [4]. - Telsey noted a decline in consumer confidence and a slowdown in traffic, particularly among lower- to middle-income shoppers [4][5]. - The fourth-quarter comparable sales outlook is below consensus, projecting a decline of 5% to an increase of 0.5% [5]. Holiday Season Outlook - Management expressed caution for the holiday season due to external pressures and soft consumer sentiment, expecting shoppers to seek value [6]. - The fourth-quarter outlook assumes merchandise margins will remain flat to slightly higher year-over-year, providing flexibility during peak selling [6]. Future Earnings Estimates - Telsey raised the EPS estimate for fiscal 2026 to $9.33 from $8.91 and for fiscal 2027 to $10.24 from $9.69 following the third-quarter results [7]. - The company is reallocating its marketing budget towards streaming platforms, recognizing that over 70% of adults now use streaming as their primary video source [7].

Signet Jewelers Ltd. (NYSE:SIG) shares were up on Wednesday as investors weighed a stronger quarter against a cautious holiday outlook. • SIG shares are advancing steadily. Check the analyst take here.The jewelry retailer, which owns Zales, Kay Jewelers, Jared Jewelers, among other stores, highlighted resilient demand, firmer pricing and cost discipline while signaling continued pressure on value-conscious shoppers.On Tuesday, the company reported third-quarter adjusted earnings per share of 63 cents, beati ...