Signet Jewelers (SIG) Q4 2025 earnings summary

Executive summary

• Q4 sales were $2.4 billion, down 5.8% year-over-year, with same-store sales down 1.1%; full year sales reached $6.7 billion, down 6.5%.

• Positive same-store sales trends in January and FY26-to-date, with growth across all categories.

• Launched the 'Grow Brand Love' strategy, focusing on brand differentiation, core business growth, and operating model transformation.

• Centralized leadership and operations into four customer families, streamlining functions for efficiency and scale.

• Generated over $400 million in free cash flow, enabling a nearly 20% reduction in diluted share count and $1 billion returned to shareholders.

Financial highlights

• Q4 revenue down 6% year-over-year but ahead of updated guidance; same-store sales down 1.1%.

• Adjusted Q4 operating income was $355.5 million (15.1% margin), down from $409.7 million; adjusted EPS was $6.62, nearly flat year-over-year.

• Adjusted gross margin at $1 billion (42.6% of sales), down 70 bps year-over-year.

• FY25 free cash flow was $438 million, with 88% cash conversion of adjusted operating income.

• Cash and equivalents at year-end were $604 million; total liquidity was $1.7 billion.

Outlook and guidance

• FY26 sales guidance: $6.53–$6.8 billion; same-store sales down 2.5% to up 1.5%; adjusted operating income $420–$510 million; EPS $7.31–$9.10.

• Q1 FY26 sales expected at $1.5–$1.53 billion, with same-store sales flat to up 2%.

• CapEx expected at $145–$160 million, with 10–15 new stores and 15 repositionings.

• Guidance assumes a measured consumer environment, annual tax rate of 23–25%, and excludes significant new tariffs/regulations.