Signet Jewelers (SIG) Q4 2026 earnings summary

Executive summary

• Delivered at or above the high end of adjusted operating income and EPS guidance for FY26, with 1.3% same store sales growth and a 7% increase in average unit retail, despite unprecedented tariffs, record gold costs, and cautious consumer spending.

• Achieved 20% higher free cash flow year-over-year on a simplified operating model, reaching $525 million.

• Positive sales momentum continued into FY27, with strong Valentine's Day performance and ongoing comp growth in core brands.

• Operating income rose to $393.1 million from $110.7 million year-over-year, and adjusted operating income increased to $515 million from $498.1 million.

• Diluted EPS improved to $7.08 from a loss of $0.81, while adjusted diluted EPS rose to $9.60 from $8.94.

Financial highlights

• Q4 revenue was $2.35 billion, with a comp decrease of 0.7%; excluding JamesAllen.com and weather, comps grew 1%.

• Q4 gross margin was ~$1 billion, down 60 bps year-over-year; merchandise margin down 30 bps due to higher commodity costs and tariffs.

• Achieved high end of adjusted operating income guidance at $327.3 million for Q4.

• FY26 comp sales grew 1.3%, gross margin expanded 30 bps, adjusted operating income reached $515 million, and adjusted diluted EPS grew 7%.

• Free cash flow for FY26 was ~$525 million, up 20% year-over-year.

Outlook and guidance

• FY27 comp sales expected between -1.25% and +2.5%; total revenue guidance of $6.6–$6.9 billion.

• Adjusted operating income guidance: $470–$560 million; adjusted EPS: $8.80–$10.74.

• Merchandise margin rate expected to be flat at midpoint; $150–$180 million in capital expenditures planned, including over 200 renovations.

• Q1 FY27 comp sales expected up 0.5–2.5%, with adjusted operating income of $66–$77 million.

• Guidance assumes $60–$80 million in net revenue loss from the James Allen transition, minimal impact on adjusted operating income.