Signet Jewelers Turns Around To Profit In Q1, Raises Outlook; Stock Up In Pre-market

(RTTNews) - Signet Jewelers Ltd. (SIG), a specialty jewelry retailer, on Tuesday announced a swing to profit in the first quarter, compared to loss in the previous year. The prior year quarter was impacted by one-time dividends on redeemable convertible preferred shares.

The company raised full year 2026 adjusted earnings per share guidance and updated outlook and share repurchase. In the pre-market trading, Signet Jewelers is 13.11% higher at $75.59 on the New York Stock Exchange.

For the first quarter, net income attributable to shareholders was $33.5 million compared with a net loss of $40.1 million last year. Dividends on redeemable convertible preferred shares in the prior year was 92.2 million.

Earnings per share were $0.78, versus loss per share were $0.90 last year.

Adjusted earnings per share were $1.18 versus $1.11 last year.

Six Analysts, on average, had expected the company to report loss of $1.04 per share. Analysts' estimates typically exclude special items.

Sales for the quarter increased to $1.54 billion from $1.51 billion last year. Same-store sales were up 2.5 percent.

Looking ahead to the fiscal year 2026, the company expected steady sales despite possible changes in consumer spending, plans capital spending of $145 to $160 million, and forecasts flat to slightly lower store space.

The company anticipated a 23% to 25% tax rate, including a 4% non-cash tax impact from Bermuda, and excludes the effects of new tariffs or future stock buybacks from its earnings outlook.

Joan Hilson, Chief Operating and Financial Officer said, "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."