Signet (SIG) remains well-positioned for its all-important season, here’s why

Shares of Signet Jewelers Limited (NYSE: SIG) stayed red on Monday. The stock has gained 16% over the past three months. The jewelry retailer delivered a strong performance for the second quarter of 2026 on the back of its new strategy, and provided an upbeat outlook for the full year. In addition, it remains well-positioned for the holiday season, which is its most important sales period.

Strong Q2

Signet saw growth in sales and earnings in the second quarter of 2026. Total sales increased 3% year-over-year to $1.53 billion, helped by growth in the fashion and services categories. Earnings per share, on an adjusted basis, grew 29% to $1.61 versus last year.  

Business momentum and holiday season

In Q2, Signet’s same-store sales grew 2%, supported by a 2% growth in fashion and a high-single-digit growth in services. The company’s focus on its three largest brands – Kay, Zales, and Jared is paying off as they delivered a combined same-store sales growth of 5% in the quarter.

Fashion continues to be an important category, with growing demand for lab-grown diamond (LGD) fashion pieces. LGD now accounts for 14% of fashion sales. At its key brands, Signet is developing its assortment to suit various trends like layering or stacking, or for various occasions like milestone gifting or self-purchase. These pieces are being offered at various price points to meet the needs of customers seeking value.

Signet believes it is well-positioned for the holiday season with its merchandise, price points and marketing. On its earnings call, the company said it is significantly bolstering its LGD, men’s, and other trending category assortments in the key gifting price points of $200 to $500. Signet expects to see a three-fold increase in the number of LGD fashion pieces below $1,000 compared to last year, and even higher growth in the price points below $500.

Raised outlook

Signet raised its guidance for the full year of 2026 based on its first-half performance and its third quarter expectations. Total sales are now expected to be $6.67-6.82 billion. Same-store sales are now expected to be down 0.75% to up 1.75%. Adjusted EPS is now expected to be $8.04-9.57.

For the third quarter of 2026, total sales are expected to be $1.34-1.38 billion and same-store sales are expected to be down 1.25% to up 1.25%.