Signet profitability rises, sales flat; accelerating renovations
Signet Jewelers Ltd. reported increased profitability in the fourth quarter even as its sales remained flat with last year.
The parent company of Kay Jewelers, Zales, Jared, Diamonds Direct, Blue Nile, and other jewelry brands said it will "sunset" the web site for James Allen. It plans to leverage the brand as a proprietary collection and transition complementary products and styles to the Blue Nile website.
On the earnings call, CEO J.K. Symancyk said the company placed an "outsized" focus on its three largest brands — Kay Jewelers, Zales and Jared — in 2025. The three brands represent roughly 70% of revenue.
"For fiscal 2027, we’re sharpening our go-to-market strategy for these brands and taking action to evolve assortment and product design and elevate the customer experience, both in-store and online," she told analysts. "A critical step forward is enhancing the customer experience through redesigning Kay, Zales, and Jared websites."
With regard to the in-store experience, the company said it has seen an incremental low single-digit comp increase from renovations.
"Building on this performance, we’re accelerating renovations to touch 30% more stores this year, equating to nearly 10% of the fleet, with a particular focus on brands and markets that represent the best opportunities," Symancyk said. "These efforts are integrated with marketing campaigns and product activations."
Fourth Quarter
Signet's net income totaled $250 million, with adjusted earnings per share of $6.08, for the quarter ended Jan. 31, compared to $100.6 million, or earnings per share of $2.30, in the year-ago period. Adjusted earnings per share were $6.25, compared to $6.62 in the year ago quarter and above the forecasted $5.93 per share.
The company reported sales sales of $2.345 billion compared to $2.352 in the prior-year quarter and above the projected $2.34 billion Same-store sales, which include e-commerce, fell 0.7%. The average unit retail price rose about 5%, with growth in both bridal and fashion. For the full year (“FY2026”), sales rose to $6.813 billion, compared to $6.708 billion in the previous year.
"FY26 delivered over a point of comp growth driven by heightened focus on our three largest brands," Symancyk stated in the earnings release.” Building on that momentum, FY27 will focus on accelerating core performance through sharper brand differentiation, broader customer reach, and a more seamless in‑store and digital experience.”
Read More: Zales debuts ‘nex-gen’ retail format
For fiscal 2027, the company is projecting sales of $6.6 billion to $6.9 billion, same-store sales ranging from down 1.25 percent to up 2.5 percent, adjusted operating income of $470 million to $560 million, and adjusted diluted earnings per share of $8.80 to $10.74.
In a statement, COO and CFO Joan Hilson said Signet finished the year with $525 million of free cash flow, consistent inventory levels despite record commodity costs and a dynamic tariff environment.
“Looking to FY27, our guidance range includes topline growth and margin expansion at the high end, as well as current commodity, tariff, and consumer dynamics, and the transition of James Allen within our portfolio," she said.
Signet operates approximately 2,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones.
