Signet Jewelers Ltd. (NYSE:SIG) shares are trading higher on Tuesday after the company reported stronger-than-expected first-quarter 2025 earnings.
The company posted revenue of $1.54 billion, a 2% increase from the prior year, surpassing analysts’ consensus estimate of $1.49 billion.
Adjusted EPS of $1.18 beat the consensus estimate of $1.07.
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Same-store sales climbed 2.5%, while merchandise average unit retail (AUR) rose about 8%.
North American sales reached $1.45 billion, up 2.1% year over year, with same-store sales increasing 2.3%. International segment sales grew 3.8% to $80.1 million, alongside a 4.5% rise in same-store sales.
Gross margin rose $26 million to $598.8 million, with the margin rate up 100 basis points to 38.8%, driven by merchandise margin gains and fixed-cost leverage.
Operating income was $48.1 million, or 3.1% of sales, down from $49.8 million, or 3.3%, in Q1 of fiscal 2024. Adjusted operating income rose to $70.3 million, or 4.6% of sales, from $57.8 million, or 3.8%, a year earlier.
Signet used $175.3 million in operating cash, up from $158.2 million the previous year. Cash and equivalents totaled $264.1 million at quarter-end, down from $729.3 million due to debt retirements and share buybacks. Inventory rose about 1% to $2 billion.
SIG declared a 32-cent quarterly dividend for the second quarter, payable August 22 to shareholders of record July 25, with the ex-dividend date also on July 25.
The company repurchased 2.1 million shares for $117.4 million in the quarter and bought an additional 235,000 shares for $15 million through June 2. Nearly $600 million remains available for share repurchases.
“We delivered positive same-store sales growth each month of the quarter, and into May, by bolstering our offerings at key price points and continuing the evolution of our assortment. Our three largest brands – Kay, Zales, and Jared – all saw sequential comp sales improvement from the fourth quarter on higher margins, highlighting the impact of our outsized focus on our larger brands,” stated J.K. Symancyk, Chief Executive Officer.
“Given our positive performance, we are increasing the low end and maintaining the high end of our Fiscal 2026 operating guidance. This outlook reflects the current macro environment and current tariffs as well as on track cost savings initiatives. Further, we are raising our adjusted EPS guidance to reflect the repurchase of more than 5% of outstanding shares year to date,” commented Joan Hilson, Chief Operating and Financial Officer.
Signet raised its 2026 revenue guidance to a range of $6.57 billion to $6.80 billion, up from $6.53 billion to $6.80 billion, compared with the consensus estimate of $6.69 billion.
The company increased its adjusted EPS forecast to $7.70 to $9.38, up from $7.31 to $9.10, versus the consensus of $8.45. It expects adjusted EBITDA between $615 million and $695 million, slightly higher than the prior range of $605 million to $695 million.
For the second quarter, Signet projects revenue of $1.47 billion to $1.51 billion, above the $1.34 billion estimate, and adjusted EBITDA of $53 million to $73 million.
Price Action: SIG shares are trading higher by 8.23% to $72.31 at last check Tuesday .
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