Signet Jewelers Sharpens Focus On Loyalty, Luxury And Bridal: Analyst

Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Signet Jewelers Ltd SIG and raised the price forecast $55 to $62.

SIG exceeded expectations with better-than-expected sales and tighter expense control, delivering a fourth-quarter operating income and EPS upside, said the analyst .

Under new CEO J.K. Symancyk, the company introduced a “Grow Brand Love” strategy to drive growth through design-led products, with a focus on self-purchase, gifting, and bridal.

SIG is shifting its focus from a transactional, promotion-driven approach to building emotional connections with customers, particularly for its brands like Kay, Zales, and Jared.

By improving brand loyalty, the company aims to increase brand consideration by 500 basis points and boost revenues by $500 million.

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The modernized strategy includes in-house design capabilities, faster market responsiveness, updated store designs, and enhanced e-commerce storytelling.

SIG’s strategy focuses on increasing share in core categories like gold and bridal, while expanding into adjacent markets such as self-purchase and gifting. The company’s U.S. bridal market share currently stands at 30%. It looks to capitalize on the $50 billion fashion jewelry market.

SIG also aims to simplify its operations, improve efficiencies, and reduce costs through a reorganization. This includes leadership changes, centralized functions, and a 30% reduction in senior leadership to speed up decision-making and enhance profitability.

SIG also plans real estate optimization, shifting to off-mall and e-commerce. SIG’s first-quarter outlook remains positive, with expanding AUR and merchandise margins.

However, the annual outlook anticipates a cautious consumer environment, with variability between quarters. Engagement and bridal categories are expected to show modest growth, while fashion sales may remain flat.

The company expects at least $100 million in reorganization costs and a tax rate increase affecting EPS.

Despite positive first-quarter trends, challenges remain due to the macro environment, CEO transition, and digital platform recovery, noted the analyst.

Keeping all the above points in mind, the analyst changed the FY26 EPS outlook to $8.69 for the year,
down from $9.01 previously.

Price Action; SIG shares traded higher by 0.51% at $56.94 at last check Thursday.

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