Signet Jewelers has raised its guidance for the full year after stronger-than-expected sales and a healthy rebound in its bottom line.
The company, which owns brands including Jared, Kay, Zales and James Allen, now expects total sales for fiscal 2026 to be between $6.67 billion and $6.82 billion, it said Tuesday. That compares with its previous forecast of $6.57 billion to $6.8 billion. Same-store sales will range from a drop of 0.75% to an increase of 1.75%, versus the previous expectation of a drop of 2% to growth of 1.5%. Signet anticipates it will generate operating income of between $445 million and $515 million, rather than the original $430 million to $510 million.
The increased guidance assumes that sales will remain steady, with some growth over the holiday period. If tariffs on India remain at the current rate of 50%, Signet predicts operating income will fall within the middle to lower end of the range. Conversely, should the US remove the additional 25% penalty, income will be in the upper half of the range, the jeweler explained.
Meanwhile, total sales for the third fiscal quarter are expected to be between $1.34 billion to $1.38 billion, with same-store sales coming in at a decline of 1.25% to a rise of 1.25%. Operating income for the period will reach between $3 million and $17 million.
Revenue for the second fiscal quarter that ended August 2 grew 3% to $1.54 billion, with same-store sales up 2%. The retailer posted profit of $2.8 million, compared to a loss of $100.9 million during the same period a year ago.
Profit suffered from a noncash impairment of $80 million substantially related to Signet’s digital brands and restructuring charges, the company said. Without the impairment, operating income would have been $85.4 million.
Sales for the first half rose 2.5% to $3.08 billion, and profit was $50.9 million versus a loss of $51.1 million a year ago.
“Our second-quarter results were driven by the expansion of on-trend fashion assortment and effective promotion and pricing strategies,” said Signet CEO J.K. Symancyk. “We have a sharp focus on delivering [a] holiday with the right inventory levels at key price points and the launch of new collections in our largest brands, supported by fresh marketing campaigns.”
Image: The interior of a Zales store. (Signet Jewelers)