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Signet Jewelers Limited (SIG)
NYSE:SIG
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Signet Jewelers
(NYSE:SIG)
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Rating:64Neutral
Price Target:
$104.00
▲(5.83% Upside)
Action:ReiteratedDate:12/06/25
Signet Jewelers' overall stock score reflects strong financial performance and positive earnings call highlights, tempered by bearish technical indicators and moderate valuation. The company's strategic initiatives and revenue growth are promising, but profitability and market momentum remain concerns.
Positive Factors
Strong Free Cash Flow
A 30.18% TTM free cash flow growth rate indicates durable cash generation that supports capital expenditures, debt servicing, and shareholder returns. Sustained FCF growth improves financial flexibility to fund omni-channel investments, share buybacks, and buffer cyclical downturns.
Diversified Brand Portfolio
A multi-brand portfolio across the U.S., Canada and U.K. reduces reliance on any single banner or market and supports cross-brand merchandising, scale purchasing, and loyalty economics. This diversification underpins stable revenue streams across bridal, fashion and price tiers over the medium term.
Margin Expansion / Healthy Gross Margin
Material merchandise margin expansion and a healthy gross profit margin (~39.8%) point to sustained product mix improvement and pricing power. These structural margin gains, combined with occupancy efficiencies and targeted inventory, help protect operating profits even if unit volumes fluctuate.
Negative Factors
Low Net Profit Margin
A net margin of roughly 2.1% constrains retained earnings and limits the company’s ability to self-fund growth or absorb cost shocks. Even with healthy gross margins, low net profitability suggests elevated operating or SG&A leverage that could persistently cap free cash flow conversion to shareholders.
Tariff and Commodity Cost Exposure
Ongoing tariffs and rising gold costs are structural input risks for a jewelry retailer, compressing margins unless fully passed to consumers. Persistent commodity and trade-policy volatility can force margin-versus-volume tradeoffs and complicate long-term supplier contracts and sourcing strategies.
Modest Return on Equity
An ROE near 8.2% signals that capital is producing only moderate returns versus peers. If sustained, sub‑peer ROE can limit long-term shareholder value creation and indicate inefficiencies in capital allocation, operational leverage, or merchandising ROI that management must address.
Signet Jewelers (SIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.95B
Dividend Yield1.46%
Average Volume (3M)764.65K
Price to Earnings (P/E)29.0
Beta (1Y)1.12
Revenue Growth-0.40%
EPS Growth-68.99%
CountryUS
Employees27,595
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.63
Shares Outstanding40,684,440
10 Day Avg. Volume638,890
30 Day Avg. Volume764,649
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.41
Price to Sales (P/S)0.39
P/FCF Ratio5.96
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda9.45
Forecast
1Y Price Target
$112.20Price Target Upside14.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)10.48
Revenue Forecast (FY)$6.89B
Signet Jewelers Business Overview & Revenue Model
Company DescriptionSignet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Jewelers, Zales Outlet, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through JamesAllen.com and Rocksbox. The International segment operates stores in shopping malls and off-mall locations primarily under the H.Samuel and Ernest Jones brands in the United Kingdom, Republic of Ireland, and Channel Islands. The Other segment is involved in the purchase and conversion of rough diamonds to polished stones, as well as the provision of diamond polishing services. As of January 29, 2022, it operated 2,854 stores and kiosks. Signet Jewelers Limited is based in Hamilton, Bermuda.
How the Company Makes MoneySignet Jewelers generates revenue primarily through the sale of jewelry products, including engagement rings, wedding bands, necklaces, bracelets, and earrings. The company's revenue model is based on direct retail sales through its extensive network of stores, as well as online sales through its e-commerce platforms. Key revenue streams include merchandise sales, repair services, and financing options for customers. Additionally, Signet benefits from strategic partnerships with diamond suppliers and manufacturers, which help ensure a steady supply of high-quality products. Seasonal promotions and marketing campaigns also play a significant role in driving sales during peak shopping periods, such as holidays and special occasions.
Signet Jewelers Key Performance Indicators (KPIs)
Signet Jewelers Earnings Call Summary
Earnings Call Date:Nov 01, 2025
(Q3-2026)
| Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant positive results in terms of sales growth, margin expansion, and strategic initiatives. However, challenges such as tariff pressures, declining traffic, and cautious future guidance indicated ongoing challenges in the macroeconomic environment.Q3-2026 Updates
Positive Updates
Positive Same Store Sales and Operating Income Growth
Signet Jewelers delivered their third consecutive quarter of positive same store sales, achieving 3% growth compared to the same period last year. Adjusted operating income doubled compared to Q3 of the previous year.
Merchandise Margin Expansion
Year-to-date merchandise margin expanded by 50 basis points, with an 80 basis point increase in Q3 despite tariff and gold cost pressures.
Strong Performance in Key Brands
Kay, Zales, and Jared achieved a combined same store sales growth of 6%, with notable growth in bridal and fashion categories. Jared showed a 10% comp sales growth in fashion.
Lab Grown Diamonds (LGDs) Growth
The penetration of Lab Grown Diamonds in fashion sales reached 15% this quarter, roughly double last year's rate.
Modernized Marketing Approach
The company implemented a robust media strategy, leading to double-digit growth in impressions with a low to mid single-digit increase in spend.
Cash Flow and Share Repurchase
Free cash flow improved by more than $100 million for the quarter, and the company repurchased approximately $28 million worth of shares.
Negative Updates
Challenges with Tariffs and Gold Costs
The company continues to face significant pressures from tariffs, particularly from India, and increases in gold costs.
Soft Traffic and Consumer Confidence Concerns
There has been softer traffic in recent weeks, particularly among brands with more exposure to lower to middle-income households.
Unit Performance Decline
Unit performance improved sequentially but was still down compared to last year, impacted by a better performance at Banter and Zales.
Cautious Q4 Guidance
The company provided a cautious Q4 guidance due to external disruptions and potential continued softness in consumer confidence, with a same store sales range of +0.5% to -5%.
Company Guidance
During the Signet Jewelers Third Quarter Fiscal 2026 Earnings Call, several key metrics and guidance highlights were shared. The company achieved a 3% growth in same-store sales compared to the previous year, with its three largest brands, Kay, Zales, and Jared, delivering a combined same-store sales growth of 6%. They reported an adjusted operating income that was double that of Q3 last year, with a significant 80 basis point expansion in merchandise margin, despite challenges from tariffs and gold costs. In terms of revenue, the quarter saw approximately $1.4 billion, with a 7% increase in average unit retail prices. They also noted a 130 basis point improvement in gross margin, driven by merchandise margin and occupancy efficiencies. For the holiday season, Signet has positioned itself with a strategic inventory in key price points and plans to leverage a modernized marketing approach. The guidance for the full year includes raising the low end of the adjusted operating income to $465 million, with expectations of capital expenditures between $145 million to $160 million. The company remains cautious about the potential for continued consumer softness but maintains confidence in their strategic positioning for the upcoming holiday period.Signet Jewelers Financial Statement Overview
Summary
Signet Jewelers shows strong revenue growth and cash flow generation, but profitability margins remain a concern. The balance sheet is stable with a reasonable debt level and improving return on equity.Income Statement
Signet Jewelers shows a mixed performance in its income statement. The TTM data indicates a strong revenue growth rate of 62.5%, reflecting a significant recovery from previous declines. However, the net profit margin remains modest at 2.13%, suggesting limited profitability. The gross profit margin is healthy at 39.75%, but the EBIT and EBITDA margins are relatively low, indicating potential inefficiencies in operations.65
Positive
Balance Sheet
The balance sheet of Signet Jewelers is stable with a debt-to-equity ratio of 0.67, which is manageable and indicates a balanced capital structure. The return on equity (ROE) is 8.20% for the TTM, showing improvement but still below industry leaders. The equity ratio is not explicitly calculated, but the company's equity position appears solid relative to its assets.70
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 30.18% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.36, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high at 0.74, highlighting robust cash flow relative to earnings.75
Positive
| Breakdown | TTM | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.82B | 6.70B | 7.17B | 7.84B | 7.83B | 5.23B |
| Gross Profit | 2.71B | 2.63B | 2.83B | 3.05B | 3.12B | 1.73B |
| EBITDA | 613.90M | 651.20M | 789.60M | 629.20M | 1.06B | 118.30M |
| Net Income | 145.00M | 61.20M | 810.40M | 376.70M | 769.90M | -15.20M |
Balance Sheet | ||||||
| Total Assets | 5.41B | 5.73B | 6.81B | 6.62B | 6.58B | 6.18B |
| Cash, Cash Equivalents and Short-Term Investments | 234.70M | 604.00M | 1.38B | 1.17B | 1.42B | 1.17B |
| Total Debt | 2.01B | 1.18B | 1.24B | 1.33B | 1.45B | 1.67B |
| Total Liabilities | 3.69B | 3.87B | 3.99B | 4.39B | 4.36B | 4.35B |
| Stockholders Equity | 1.72B | 1.85B | 2.82B | 2.23B | 2.22B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 591.00M | 437.90M | 421.40M | 659.00M | 1.13B | 1.29B |
| Operating Cash Flow | 722.70M | 590.90M | 546.90M | 797.90M | 1.26B | 1.37B |
| Investing Cash Flow | -133.20M | -159.10M | -75.80M | -545.40M | -642.70M | -77.80M |
| Financing Cash Flow | -515.10M | -1.20B | -259.70M | -490.00M | -366.60M | -498.60M |
Signet Jewelers Technical Analysis
Positive
98.27
Price Trends
90.02
Positive
93.67
Positive
87.02
Positive
Market Momentum
1.39
Negative
56.85
Neutral
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIG, the sentiment is Positive. The current price of 98.27 is above the 20-day moving average (MA) of 93.59, above the 50-day MA of 90.02, and above the 200-day MA of 87.02, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIG.
Signet Jewelers Risk Analysis
Signet Jewelers disclosed 37 risk factors in its most recent earnings report. Signet Jewelers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Signet Jewelers Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $402.41M | 26.33 | 4.40% | 6.79% | 0.63% | -7.37% | |
67 Neutral | $31.28B | 64.04 | 55.34% | 1.16% | 8.14% | -65.04% | |
64 Neutral | $3.95B | 29.00 | 8.24% | 1.46% | -0.40% | -68.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $2.42B | -4.37 | -96.50% | ― | -17.66% | -223.06% | |
51 Neutral | $151.17M | -6.51 | -2.88% | 14.29% | 1.32% | -175.81% | |
42 Neutral | $190.62M | -0.86 | -2353.49% | ― | -23.54% | -49.41% |
* Consumer Cyclical Sector Average
SIG
Signet Jewelers
98.27
46.42
89.51%
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CPRI
Capri Holdings
20.26
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25.51
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37.67%
LANV
Lanvin Group Holdings
1.71
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-10.47%
BRLT
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1.48
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18.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.