Strong Q2
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%.