Signet Jewelers Q2 Earnings: EPS Beat, Net Debt Positive, Strong Q3 Outlook

Signet Jewelers Ltd SIG stock gained after the company reported its fiscal second-quarter 2025 earnings.

Signet reported a second-quarter sales decline of 7.6% year-on-year to $1.49 billion, missing the analyst consensus estimate of $1.50 billion. Adjusted EPS of $1.25 beat the analyst consensus estimate of $1.14.

Overall same-store sales fell 3.4% in the second quarter. North American Same-store sales for the segment decreased by 3.7% compared to last year, while the International segment same-store sales grew by 1.7%

North America segment sales amounted to $1.42 billion, a 6.9% decrease year-over-year. International sales fell 15.2% Y/Y to $86.5 million.

The gross margin of 38.0% improved by ten bps year-over-year due to a higher mix of Services and Fashion revenue. The operating loss for the quarter was $(100.9) million versus $90.2 million last year, with an operating margin loss of (6.8)%, down from 5.6% last year.

Signet Jewelers held cash and equivalents of $403.1 million as of August 3, 2024.

Signet Jewelers’ Board declared a quarterly cash dividend of $0.29 per share, payable November 22, 2024, to shareholders of record on October 25, 2024.

In the second quarter, Signet Jewelers repurchased approximately 441,000 common shares at an average cost per share of $90.35, or $39.8 million. As of August 3, 2024, the company is net debt positive by $180 million.

“I’d like to thank our Signet team for delivering our fifth consecutive quarter of sequential same-store sales improvement, up more than 5 points compared to the first quarter of this year and turning positive third quarter to date,” said Signet Chief Executive Officer Virginia C. Drosos.

Guidance: Signet Jewelers expects third-quarter sales of $1.345 billion–$1.380 billion, versus the consensus of $1.350 billion. Same-store sales change of (1.0)% –1.5%.

SIG reiterated its fiscal 2025 sales outlook of $6.66 billion—$7.02 billion, against the consensus of $6.774 billion. It expects a same-store sales change of (4.5)%-0.5%.

Signet Jewelers expects fiscal 2025 adjusted EPS of $9.90 – $11.52, against the Street view of $10.23.

Price Action: SIG stock is up 12.7% at $88.00 in premarket at the last check Thursday.

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