Signet Jewelers Limited (SIG) reports a 12% year-over-year increase in adjusted earnings per share and a 5% rise in same-store sales for Q4 2025, signaling resilience in the mid-tier jewelry market. The company’s ongoing store optimization and digital transformation efforts are driving margin expansion and long-term shareholder value.
- Adjusted EPS of $2.18 in Q4 2025, up 12% YoY
- Same-store sales rose 5% in Q4 2025
- E-commerce now represents 29% of total sales
- Gross margins improved to 51.2% in Q4
- Share repurchases totaled $185 million in Q4
- 2026 guidance includes 3%–5% same-store sales growth
Signet Jewelers Limited (SIG) delivered a compelling fourth-quarter performance, posting adjusted earnings per share of $2.18, up 12% from the prior-year period. This result exceeded analyst expectations and underscored the company’s ability to navigate elevated inflation and shifting consumer spending patterns. Same-store sales rose 5% year-over-year, driven by strong demand in bridal and gift categories, particularly during the holiday season. The company’s strategic pivot toward core markets and operational efficiency is yielding tangible results. Signet closed 13 underperforming locations in the quarter, reducing its physical footprint by 3% while accelerating its digital sales channel. E-commerce revenue now accounts for 29% of total sales, a 4-percentage-point increase from Q4 2024. These moves have helped improve gross margins by 180 basis points to 51.2%. Capital allocation remains a key focus, with Signet returning $185 million to shareholders through share repurchases in Q4 alone. The company has repurchased approximately 2.3 million shares since the start of 2025, reducing shares outstanding by 4.7%. This aggressive buyback program, combined with a stable dividend, reflects confidence in long-term cash flow generation and intrinsic value. Market reaction has been positive, with SIG’s stock rising 8.3% in after-hours trading following the earnings release. Investors are particularly encouraged by the company’s guidance for 2026, which projects same-store sales growth of 3% to 5% and adjusted EBITDA margins expanding to 14.5% to 15.5%. The outlook suggests sustained momentum, even as broader retail sentiment remains cautious. The transformation of Signet’s portfolio—centered on strengthening the Kay, Jared, and Zales brands—has positioned the company as a resilient player in the luxury accessories space. With a growing emphasis on personalized experiences and inventory efficiency, Signet is better equipped to capture discretionary spending in a high-rate environment.