Not-so-jolly holiday sales dampen outlook
Same-store sales for the holiday season decreased around 2% compared to last year, due to lower-than-expected performance during the peak selling days leading up to Christmas. Although merchandise margin expanded, it came below expectations due to lower fashion mix and customers showing higher interest in promotional items.
The holiday underperformance led Signet to lower its guidance for the fourth quarter of 2025. The jeweler now expects total sales to range between $2.32-2.33 billion versus the prior outlook of $2.38-2.46 billion. Same-store sales are now expected to be down 2.0-2.5% versus the previous expectation of flat to up 3%.
Lower sales and earnings
Analysts are projecting revenue of $2.33 billion for Signet in the fourth quarter of 2025. This represents a decline of over 6% from the fourth quarter of 2024. Earnings per share in Q4 2025 is projected to be $6.25, down from $6.73 reported in Q4 2024.
In the third quarter of 2025, sales decreased 3% year-over-year to $1.3 billion. Adjusted EPS remained flat at $0.24.
Continued challenges
Signet has been struggling in a bumpy consumer and industry environment. The company has been facing headwinds in its engagement and bridal categories in North America from challenges in its digital banners and competitive price pressures in loose stones.
The company has remained optimistic on engagement trends and it had forecast positive performance within engagement during the holiday season, which appears to have come within its expectations.
Services, meanwhile, has been delivering a positive performance, outpacing merchandise sales. Last quarter, revenue in this category rose around 2%. Services also carries higher margins. It appears to have continued this momentum in the fourth quarter of 2025.