Q2 results
Gains in Fashion and Bridal
Signet has been seeing a sequential improvement in its same-store sales helped by traction in the Fashion and Bridal categories. The company achieved positive same-store sales in Fashion through July, August, and thus far in September. This trend is expected to continue as the holiday season approaches, which tends to be the key gifting period of the year.
The pickup in same-store sales has been helped by the company’s efforts in bringing in more new and innovative merchandise. In Q2, revenue from new merchandise grew 50%. New offerings in Fashion include sculpted gold, which allows the retailer to provide big, chunky looks at compelling prices. Signet is also seeing growth in lab diamond fashion jewelry, which rose over 25% in Q2. The retailer believes its new merchandise assortment will continue to drive strong sales in Fashion.
As mentioned on its conference call, Signet is seeing a recovery in engagements, as indicated by a significant rise in online searches for engagement rings and a higher number of couples showing a readiness to get engaged. In Q2, engagements improved by around 400 basis points on a same-store sales basis. Based on the positive engagement unit growth seen to-date in the third quarter, Signet believes it is well-positioned for a significant pickup in engagements that is to come.
Strength in Services
Signet continues to see strength in Services, with a 1.4% growth in Q2. Extended Service Agreement (ESA) attachment rates were up 210 basis points in the quarter, driven by strong attachment in Engagement and gains in new products like post-repair ESA. The company is also seeing high attachment rates on lab diamond jewelry compared to other merchandise in Bridal and Fashion.
Outlook
For the third quarter of 2025, Signet expects revenue to range between $1.34-1.38 billion, and same-store sales to be down 1% to up 1.5%. For fiscal year 2025, the company expects total sales of $6.66-7.02 billion. Same-store sales are projected to be down 4.5% to up 0.5%. Adjusted EPS is expected to be $9.90-11.52.