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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:
$89.00
▼(-2.62% Downside)
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
Revenue Growth
Signet's revenue growth and 3% same-store sales increase reflect strong brand performance and effective strategies, supporting long-term growth.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility and supports strategic investments, contributing to long-term stability and growth.
Strategic Initiatives
Innovative marketing strategies are driving brand engagement and sales, positioning Signet well for sustained competitive advantage.
Negative Factors
Profitability Margins
Low profitability margins indicate operational inefficiencies, which could hinder long-term financial performance and competitiveness.
Tariff and Cost Pressures
Ongoing tariff and cost pressures could impact margins and pricing strategies, challenging profitability and market positioning.
Consumer Confidence Concerns
Weak consumer confidence may suppress demand, affecting sales and revenue growth, posing a risk to future financial performance.
Signet Jewelers (SIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.55B
Dividend Yield1.37%
Average Volume (3M)883.20K
Price to Earnings (P/E)26.1
Beta (1Y)1.14
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. Volume1,262,297
30 Day Avg. Volume883,195
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 Cap1.41
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit1.84
Enterprise Value/Ebitda8.13
Forecast
1Y Price Target
$115.29Price Target Upside26.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Signet Jewelers Business Overview & Revenue Model
Company DescriptionSignet Jewelers Limited is a leading retailer of diamond jewelry and other fine jewelry products, operating primarily in the United States, Canada, and the United Kingdom. The company is known for its diverse portfolio of well-recognized brands, including Kay Jewelers, Zales, Jared, and Ernest Jones. Signet focuses on providing high-quality jewelry, watches, and related services, catering to a wide range of customer preferences and occasions, including engagement and wedding celebrations.
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 Earnings Call Summary
Earnings Call Date:Nov 01, 2025
(Q3-2026)
| Next Earnings Date:Mar 12, 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 demonstrates a stable financial position with strengths in cash flow management and a balanced capital structure. However, challenges in profitability and revenue growth need to be addressed to enhance overall financial performance. The company should focus on improving net profit margins and shareholder returns to strengthen its financial health further.Income Statement
Signet Jewelers has shown a mixed performance in its income statement. The TTM data reveals a modest gross profit margin of 39.38%, which is consistent with previous years, indicating stable cost management. However, the net profit margin has decreased to 0.63% in the TTM, reflecting challenges in converting revenue into profit. Revenue growth has been volatile, with a significant drop in the most recent annual report but a slight recovery in the TTM. The EBIT and EBITDA margins are relatively stable, suggesting operational efficiency, but the declining net profit margin is a concern.65
Positive
Balance Sheet
The balance sheet of Signet Jewelers shows a moderate debt-to-equity ratio of 0.67 in the TTM, indicating a balanced approach to leveraging. The return on equity has decreased to 2.25% in the TTM, which is a significant drop from previous years, suggesting reduced profitability for shareholders. The equity ratio stands at a healthy level, indicating a solid capital structure. Overall, the balance sheet reflects stability but with a need to improve shareholder returns.70
Positive
Cash Flow
Signet Jewelers' cash flow statement shows a positive trajectory with a free cash flow growth rate of 11.41% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio of 0.71 in the TTM is healthy, reflecting good cash management. Overall, the cash flow position is robust, supporting the company's liquidity and operational needs.75
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.70B | 7.17B | 7.84B | 7.83B | 5.23B |
| Gross Profit | 2.63B | 2.83B | 3.05B | 3.12B | 1.73B |
| EBITDA | 651.20M | 789.60M | 629.20M | 1.06B | 118.30M |
| Net Income | 61.20M | 810.40M | 376.70M | 769.90M | -15.20M |
Balance Sheet | |||||
| Total Assets | 5.73B | 6.81B | 6.62B | 6.58B | 6.18B |
| Cash, Cash Equivalents and Short-Term Investments | 604.00M | 1.38B | 1.17B | 1.42B | 1.17B |
| Total Debt | 1.18B | 1.24B | 1.33B | 1.45B | 1.67B |
| Total Liabilities | 3.87B | 3.99B | 4.39B | 4.36B | 4.35B |
| Stockholders Equity | 1.85B | 2.82B | 2.23B | 2.22B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 437.90M | 421.40M | 659.00M | 1.13B | 1.29B |
| Operating Cash Flow | 590.90M | 546.90M | 797.90M | 1.26B | 1.37B |
| Investing Cash Flow | -159.10M | -75.80M | -545.40M | -642.70M | -77.80M |
| Financing Cash Flow | -1.20B | -259.70M | -490.00M | -366.60M | -498.60M |
Signet Jewelers Technical Analysis
Positive
91.39
Price Trends
97.57
Negative
92.19
Negative
78.61
Positive
Market Momentum
-2.68
Positive
46.25
Neutral
38.70
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 91.39 is below the 20-day moving average (MA) of 93.60, below the 50-day MA of 97.57, and above the 200-day MA of 78.61, indicating a neutral trend. The MACD of -2.68 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 38.70 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 | $327.14M | 21.41 | 4.40% | 6.64% | 0.63% | -7.37% | |
69 Neutral | $24.19B | 105.80 | 16.05% | 1.27% | 8.14% | -65.04% | |
64 Neutral | $3.55B | 26.08 | 8.24% | 1.37% | -0.40% | -68.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.09B | ― | -165.96% | ― | -17.66% | -223.06% | |
51 Neutral | $118.94M | ― | -2.88% | 12.82% | 1.32% | -175.81% | |
42 Neutral | $236.23M | ― | -2353.49% | ― | -23.54% | -49.41% |
* Consumer Cyclical Sector Average
SIG
Signet Jewelers
91.39
8.75
10.59%
TPR
Tapestry
123.49
61.29
98.54%
CPRI
Capri Holdings
26.71
5.35
25.05%
MOV
Movado Group
21.60
2.70
14.29%
LANV
Lanvin Group Holdings
2.20
0.27
13.99%
BRLT
Brilliant Earth Group
1.96
0.15
8.29%
Signet Jewelers Corporate Events
Signet Jewelers Raises Guidance After Strong Q2 Performance
Sep 3, 2025
Signet Jewelers Limited is the world’s largest retailer of diamond jewelry, operating approximately 2,600 stores under various brand names, and is known for its commitment to sustainability and participation in the United Nations Global Compact.
Signet Jewelers’ Earnings Call Highlights Growth and Challenges
Sep 3, 2025
Signet Jewelers’ recent earnings call painted a generally positive picture, highlighting a steady growth trajectory and strategic advancements. The company reported consistent same-store sales growth and strategic expansion in lab-grown diamonds, alongside improved marketing efficiency. However, challenges such as issues with non-core brands, tariff-related pressures, and flat bridal units were also acknowledged. Despite these hurdles, Signet Jewelers expressed confidence in navigating the upcoming holiday season effectively.
Business Operations and StrategyExecutive/Board Changes
Signet Jewelers Announces New Senior Leadership Appointments
Positive
Jul 31, 2025
On July 31, 2025, Signet Jewelers announced new senior leadership appointments, naming Julie Yoakum as President of Kay Jewelers and Peoples Jewellers, Stacee Johnson-Williams as Chief Merchandise Operations and Sourcing Officer, and Lisa Laich as Chief Marketing Officer. These appointments are expected to accelerate Signet’s ‘Grow Brand Love’ strategy, leveraging the extensive industry experience of the new leaders to drive growth and enhance brand loyalty.
The most recent analyst rating on (SIG) stock is a Buy with a $132.00 price target. To see the full list of analyst forecasts on Signet Jewelers stock, see the SIG Stock Forecast page.
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.