SIGNET JEWELERS LTD
For the period ended May 2, 2026. Filed Jun 2, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 2, 2026 · Filed Jun 2, 2026
SIG$117.26-3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-11-01; filed 2025-12-05.
0000832988-25-000236
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-05-02; filed 2026-06-02.
0000832988-26-000159
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 142 previous paragraphs and 116 current paragraphs.
49 unchanged; 46 reworded; 21 added; 43 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Overall performance - First quarter Fiscal 2027
Current report
The Company anticipates same store sales in the range of down 0.75% to up 2.5% for Fiscal 2027. This range is driven by the performance during the first quarter and momentum thus far in the second quarter, despite a low single-digit decline in square footage due to anticipated store closures. The Company will also exclude the James Allen and Blue Nile brands from this estimate of same store sales beginning in the second quarter of Fiscal 2027, following the transition and repositioning of the James Allen brand into Blue Nile in May. The Company believes that it can build on its imperatives under the Grow Brand Love strategy in year two by shaping distinct and coveted brands, unlocking additional portfolio value and further strengthening its operating model. The Company is sharpening its go-to-market strategy for each of its four largest brands, and we will be taking actions to improve the customer experience, both in-store and online. This includes website redesigns to define brand identities, shifting toward social-first storytelling to better connect with younger and more diverse audiences and improving the efficiency of its media investments. The Company is also continuing to make progress in unlocking portfolio value with the transition of James Allen within Blue Nile, the centralization of diamond sourcing across all North America brands and further back office integrations.
Current report
Same store sales calculation methodology revision
Current report
Beginning in Fiscal 2027, the Company has revised its method for determining same store sales. Same store sales is calculated by comparison of sales in stores that were open in both the current and the prior fiscal year, excluding the impacts of changes in foreign exchanges rates. Sales from stores that have been open for less than 12 months are excluded from the comparison until their 12-month anniversary. Sales after the 12-month anniversary are compared against the equivalent prior period sales within the comparable store sales comparison. Stores closed in the current financial period are included up to the date of closure and the comparative period is correspondingly adjusted.
Current report
Prior to Fiscal 2027, the Company included accounting adjustments related to the deferral of revenue from the Company’s extended service plans. In the revised calculation, the sale of extended service plans will be fully included in the period of customer purchase. This aligns with the way management internally evaluates sales from extended service plans and provides a more representative indicator of trends in sales of these plans period over period.
Current report
The table below presents the quarterly and year-to-date same store sales results for Fiscal 2026 calculated in the same manner as same store sales will be calculated for Fiscal 2027. Such figures will be reflected as the Company’s historical same store sales results in the future. This change does not affect the same store sales calculation for the International reportable segment.
Current report
First quarter sales
Current report
Signet's total sales increased 0.8% year over year to $1.55 billion in the 13 weeks ended May 2, 2026. Same store sales increased 1.8% compared to the prior year first quarter. These increases reflect sales growth across all categories and the majority of brands and growth in offered collections. AUR grew 4.5% compared to the prior year first quarter partially attributable to strength in the higher-end consumer and better performance at higher price points. These increases were negatively impacted by underperformance in the James Allen brand.
Current report
nm Not meaningful.
Current report
In the first quarter of Fiscal 2027, gross margin was $556.5 million, or 35.8% of sales, compared to $598.8 million, or 38.8% of sales, in the prior year quarter. Gross margin decreased in total dollars and as a percentage of sales for the 13 weeks ended May 2, 2026 primarily reflecting merchandise margin decline due to increases in gold prices, accelerated melt particularly from trade-in and clearance product, as well as inventory write-down charges of $32.7 million related to the decommissioning of the James Allen and Rocksbox websites.
Current report
In the first quarter of Fiscal 2027, SG&A was $509.6 million, or 32.8% of sales, compared to $526.0 million, or 34.1% of sales, in the prior year quarter. The decrease in SG&A as a percentage of sales was driven by the previous year’s reorganization of the operating model and ongoing spend discipline.
Current report
Operating income
Current report
For the first quarter of Fiscal 2027, operating income was $36.9 million, or 2.4% of sales, compared to $48.1 million, or 3.1% of sales, in the prior year quarter. The decrease in operating income was primarily driven by inventory write-down charges, accelerated scrap and lower merchandise margins, partially offset by stronger sales performance.
Current report
In the first quarter, corporate and unallocated expenses were $13.5 million, compared to $24.0 million in the prior year quarter. The decrease was driven primarily by lower restructuring and related charges in the current year quarter. Corporate and unallocated expenses included restructuring and related charges of $0.7 million in the first quarter of Fiscal 2027, compared to $8.1 million in the prior year quarter.
Current report
Interest income, net
Current report
In the first quarter of Fiscal 2027, net interest income was $3.6 million compared to $0.8 million in the prior year quarter. The increase in net interest income for the current year quarter was the result of higher invested cash balances generating interest when compared with the prior year quarter.
Current report
Net cash
Current report
(1)Restructuring and related charges and asset impairment charges during the 13 weeks ended May 2, 2026 and May 3, 2025 were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Restructuring and related charges during the 13 weeks ended May 2, 2026 include $32.7 million of inventory write-downs related to the planned disposal of inventory in connection with the discontinuance of James Allen and Rocksbox as separately operated brands and the decommissioning of their respective websites. See Note 16 for additional information.
Current report
(1)Restructuring and related charges and asset impairment charges during the 13 weeks ended May 2, 2026 and May 3, 2025 were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Restructuring and related charges during the 13 weeks ended May 2, 2026 includes $32.7 million of inventory write-downs related to the planned disposal of inventory in connection with the discontinuance of James Allen and Rocksbox as separately operated brands and the decommissioning of their respective websites. See Note 16 for additional information.
Current report
(1)Restructuring and related charges and asset impairment charges during the 13 weeks ended May 2, 2026 and May 3, 2025 were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. See Note 16 for additional information.
Current report
•Net income was $31.7 million compared to net income of $33.5 million in the prior year period, a decrease of $1.8 million. This slight decrease was a result of lower gross merchandise margins partially offset by lower SG&A and restructuring charges compared to prior year.
Removed paragraphs (43)
Previous report
Overall performance - Third quarter Fiscal 2026
Previous report
The Company anticipates same store sales in the range of down 0.2% to up 1.75% for Fiscal 2026 including down 5.0% to up 0.5% in the fourth quarter. The fourth quarter estimate provides for variability in a measured consumer spending environment, as well as considers recent macro consumer trends since late October, including potential impacts from the government shutdown. The Company believes it is well positioned as it moves toward the Holiday Season, by having the right merchandise assortment at the right price points, while leveraging our marketing and brand equity to capitalize on consumer demand. The Company believes that it can build on its early progress under our Grow Brand Love strategy through distinct merchandise in both fashion and bridal, enhanced marketing, and unique customer experiences. The Company is being strategic with its marketing spend as well, by rebalancing channels to drive efficient reach and increasing spend during the 10 days leading into Christmas when jewelry gifting intent peaks. In addition, as previously discussed, we will continue to have an outsized focus on our three largest brands in the short term, while thoughtfully exploring ways the other brands in our portfolio can grow shareholder value.
Previous report
Third quarter sales
Previous report
Signet's total sales increased 3.1% year over year to $1.39 billion in the 13 weeks ended November 1, 2025. Same store sales increased 3.0%, compared to a decrease of 0.7% in the prior year quarter. These increases reflect the focus on the largest brands in both bridal and fashion, an enhanced assortment strategy, as well as growth in services. The improved assortment across the bridal and fashion categories led to an increase in AUR of approximately 7% compared to the prior year third quarter. These increases were negatively impacted by underperformance in the James Allen and Diamonds Direct brands in the third quarter compared to prior year third quarter.
Previous report
(1) The Company provides the period-over-period change in total sales excluding the impact of foreign currency fluctuations, which is a non-GAAP measure, to provide transparency to performance and enhance investors’ understanding of underlying business trends. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year sales in local currency.
Previous report
As described above, AUR is an additional operating metric defined as merchandise product sales on a constant currency basis, net of discounts and promotions, divided by merchandise units. AUR is measured each period based on reported sales for the corresponding period presented.
Previous report
Year to date sales
Previous report
Signet’s total sales increased 2.7% to $4.47 billion compared to $4.35 billion in the prior year. Signet’s same store sales increased 2.5%, compared to a decrease of 4.6% in the prior year. These increases were primarily driven by filling merchandise assortment gaps at key price points both in fashion and in bridal, particularly in the largest brands, which led to higher AUR compared to the prior year. Services also continued to grow year over year, primarily due to higher extended service arrangement attachment rates. These increases were unfavorably impacted by the same store sales decline in the James Allen and Diamonds Direct brands as described above.
Previous report
E-commerce sales year to date were $937.0 million, down $22.4 million or 2.3%, compared to $959.4 million in the prior year. E-commerce sales accounted for 21.0% of year to date sales, down slightly from 22.0% of total sales in the prior year. The decrease in total e-commerce sales was driven by the underperformance in the James Allen brand noted above. Brick and mortar same store sales increased 3.8% from the prior period.
Previous report
(1) The Company provides the period-over-period change in total sales excluding the impact of foreign currency fluctuations, which is a non-GAAP measure, to provide transparency to performance and enhance investors’ understanding of underlying business trends. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year sales in local currency.
Previous report
North America sales
Previous report
The North America reportable segment’s total sales were $4.18 billion compared to $4.08 billion in the prior year, up 2.4%. This increase was primarily driven by the improvements previously noted, specifically within the three largest brands and increased fashion LGD penetration, partially offset by the underperformance of the James Allen and Diamonds Direct brands. Same store sales increased 2.4% compared to a decrease of 4.9% in the prior year. North America’s AUR increased 8.7% compared to the prior year, while the number of units decreased 6.5%.
Previous report
International sales
Previous report
The International reportable segment’s total sales increased 4.8% to $258.9 million compared to $247.0 million in the prior year. Total sales at constant exchange rates increased 1.2%. The number of units sold decreased 3.0% and AUR increased 4.3% over prior year.
Previous report
In the third quarter of Fiscal 2026, gross margin was $518.8 million or 37.3% of sales compared to $485.3 million or 36.0% of sales in the prior year quarter. For the 39 weeks ended November 1, 2025, gross margin was $1.7 billion or 38.3% of sales compared to $1.6 billion or 37.3% of sales in the prior year comparable period. Gross margin increased in total dollars and as a percentage of sales for both the 13 and 39 weeks ended November 1, 2025 reflecting merchandise margin expansion driven by higher AUR in fashion and bridal, as discussed above, as well as growth in services and refined pricing and assortment strategies, all while navigating pressure from tariffs and notable increases in gold prices. Improved leverage from occupancy and efficiencies in distribution, including accelerating scrap recovery to take advantage of higher gold prices, also continued to favorably impact overall gross margin.
Previous report
In the third quarter of Fiscal 2026, SG&A was $485.3 million or 34.9% of sales compared to $469.6 million or 34.8% of sales in the prior year quarter. SG&A as a percentage of sales was nearly flat, despite a 70 basis point negative impact from higher incentive compensation, and reflects more efficient marketing spend and store labor planning, as well as favorability in transaction fee costs. For the 39 weeks ended November 1, 2025, SG&A was $1.5 billion or 33.9% of sales compared to $1.5 billion or 34.1% of sales in the prior year comparable period. The decrease in SG&A as a percentage of sales for the 39 weeks ended November 1, 2025 was primarily driven by reorganization savings and disciplined expense management, partially offset by higher incentive compensation and change management costs for the reorganization.
Previous report
Asset impairments, net
Previous report
For the 13 and 39 weeks ended November 1, 2025, the Company recorded non-cash, pre-tax impairment charges of $1.5 million and $84.9 million, respectively, compared to charges of $0.7 million and $169.3 million in the 13 and 39 weeks ended November 2, 2024, respectively. For the 13 weeks ended November 1, 2025 and November 2, 2024, asset impairments were related to the impairment of long-lived assets and cloud computing assets. For the 39 weeks ended November 1, 2025, $69.6 million of the charges related to impairment of goodwill and indefinite-lived trade names primarily related to the Digital brands, and $15.3 million related to the impairment of long-lived assets and cloud computing arrangements. For the 39 weeks ended November 2, 2024, $166.0 million of the charges related to impairment of goodwill and indefinite-lived trade names for Diamonds Direct and the Digital brands, and $3.3 million related to the impairment of long-lived assets. See Note 12 and Note 18 for additional information.
Previous report
Operating income (loss)
Previous report
For the third quarter of Fiscal 2026, operating income was $23.9 million, or 1.7% of sales, compared to $9.2 million or 0.7% of sales in the prior year quarter. For the 39 weeks ended November 1, 2025, operating income was $74.8 million or 1.7% of sales compared to an operating loss of $41.9 million or (1.0)% of sales in the prior year comparable period. The increase in operating income for both the 13 and 39 weeks ended November 1, 2025 was primarily driven by stronger sales performance and gross margins as described above, as well as lower goodwill and indefinite-lived intangible asset impairment charges taken in the current year, partially offset by higher restructuring costs.
Previous report
In the 39 weeks ended November 1, 2025, operating income in the North America reportable segment was $150.1 million or 3.6% of segment sales, and includes $84.9 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $15.0 million of restructuring and related charges. In the 39 weeks ended November 2, 2024, operating income in the North America reportable segment was $30.1 million, or 0.7% of segment sales, and included $169.0 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $6.2 million of restructuring and related charges.
Previous report
In the 39 weeks ended November 1, 2025, operating loss in the International reportable segment was $15.6 million, or (6.0)% of segment sales and includes $2.1 million of losses from the previously announced divestiture of the UK prestige watch business and $0.4 million of restructuring and related charges. In the 39 weeks ended November 2, 2024, operating loss in the International reportable segment was $20.9 million, or (8.5)% of segment sales, and included $5.4 million of restructuring charges and $2.5 million of net losses from the previously announced divestiture of the UK prestige watch business.
Previous report
In the third quarter, corporate and unallocated expenses were $13.8 million, compared to $9.6 million in the prior year quarter. In the 39 weeks ended November 1, 2025, corporate and unallocated expenses were $55.4 million, compared to $43.8 million in the prior year comparable period. These increases were driven primarily by higher incentive compensation year over year discussed above. The Company incurred restructuring and related charges of $0.9 million and $10.7 million during the 13 and 39 weeks ended November 1, 2025, respectively. During the 13 and 39 weeks ended November 2, 2024, the Company incurred $0.8 million of leadership transition costs.
Previous report
Interest (expense) income, net
Previous report
For the 13 and 39 weeks ended November 1, 2025, net interest expense was $0.1 million and net interest income was $0.6 million, respectively, compared to net interest expense of $1.0 million and net interest income of $10.0 million in the 13 and 39 weeks ended November 2, 2024, respectively. The decrease in net interest expense for the current year quarter was the result of borrowings on the ABL in prior third quarter compared to no borrowings in the current year. For the year to date period, the lower interest income was the result of lower cash balances earning interest as compared with the prior year comparable periods, primarily due to common share repurchases and the cash used during Fiscal 2025 for Preferred Shares retirement and repayment of the Senior Notes.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted in the US. The Act includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of tax treatment for certain business provisions. There was no material impact from the Act upon enactment during the second quarter of Fiscal 2026, nor does the Company expect any material impact on its Fiscal 2026 effective tax rate, consolidated financial condition or results of operations.
Previous report
In the third quarter of Fiscal 2026, income tax expense was $5.2 million, with an effective tax rate (“ETR”) of 20.6%, compared to income tax expense of $1.4 million, with an ETR of 16.7%, in the prior year comparable period. Signet was not subject to income tax in Bermuda prior to Fiscal 2026. On December 27, 2023, Bermuda enacted a 15% corporate income tax that is effective for the Company beginning with Fiscal 2026.
Previous report
Net cash (debt)
Previous report
(2)Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Fiscal 2025 restructuring charges were incurred primarily as a result of the Company’s rationalization of its store footprint and reorganization of certain centralized functions.
Previous report
(4) Includes severance and retention expenses related to the integration of Blue Nile.
Previous report
(2)Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Fiscal 2025 restructuring charges were incurred primarily as a result of the Company’s rationalization of its store footprint and reorganization of certain centralized functions.
Previous report
(4) Includes severance and retention expenses related to the integration of Blue Nile.
Previous report
(2)Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Fiscal 2025 restructuring charges were incurred primarily as a result of the Company’s rationalization of its store footprint and reorganization of certain centralized functions.
Previous report
(4)Includes severance and retention expenses related to the integration of Blue Nile.
Previous report
(6) As described in Note 5, the Company recorded a deemed dividend to net income (loss) attributable to common shareholders of $85.2 million in the first quarter of Fiscal 2025, which represents the excess of the conversion value of the Preferred Shares over their carrying value upon redemption and includes $1.6 million of related expenses.
Previous report
(7) Adjusted diluted EPS for the 39 weeks ended November 2, 2024 was calculated using 45.9 million diluted weighted average common shares outstanding. The additional dilutive shares were excluded from the calculation of GAAP diluted EPS as their effect was antidilutive. Refer to Note 7 for additional information.
Previous report
The Company has no outstanding debt after fully repaying the Senior Notes at maturity in the second quarter of Fiscal 2025 using cash on hand. In addition, in Fiscal 2025, the Company completed the extension of the ABL to August 2029 at substantially the same terms, as further described in Note 15. In connection with this extension, the ABL aggregate commitment was reduced to $1.2 billion to better align with our reduced inventory base over the past few years, as well as provide cost savings on unused commitment fees.
Previous report
On April 1, 2024, in accordance with the terms of the amended Certificate of Designation for the Preferred Shares, the Preferred Holders converted half of the then outstanding Preferred Shares and the Company elected to settle such conversions in cash totaling $414.1 million, including accrued and unpaid dividends. During the second and third quarters of Fiscal 2025, the Preferred Holders converted all of the remaining Preferred Shares, and the Company elected to settle all the remaining Preferred Shares in cash totaling $401.5 million. The ability of the Company to settle the Preferred Shares in cash highlights the effectiveness of the Company’s flexible operating model and working capital efficiency, which has generated significant free cash flow and liquidity over the past few years. Refer to Note 5 for additional information.
Previous report
•Net income was $44.4 million compared to net loss of $39.4 million in the prior year period, an increase of $83.8 million. This increase was primarily the result of higher gross profit in the current year period and non-cash asset impairment charges of $169.3 million recorded in the prior year period, partially offset by non-cash asset impairment charges of $84.9 million and restructuring and related charges of $26.1 million recorded in Fiscal 2026.
Previous report
Movement in cash and indebtedness
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Reworded paragraphs (46)
Previous wording
This management's discussion and analysis provides comparisons of material changes in the condensed consolidated financial statements for the 13 and 39 weeks ended November 1, 2025 and November 2, 2024.
Current wording
This management's discussion and analysis provides comparisons of material changes in the condensed consolidated financial statements for the 13 weeks ended May 2, 2026 and May 3, 2025.
Previous wording
This Quarterly Report on Form 10-Q contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements arebased upon management's beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of the words "guidance," "expects," "continue," "intends," "anticipates," "enhance," "estimates," "predicts," "believes," "should," "potential," "may," "preliminary," "forecast," "objective," "opportunity," "plan," “progress,” "strategy," "target," or “will” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties which could cause the actual results to not be realized, including, but not limited to: executing or optimizing major business or strategic initiatives, such as expansion of the services business or realizing the benefits of our restructuring plans or transformation strategies, including those that the Company may develop in the future; attracting and retaining key executive talent during periods of leadership transition, such as our recent appointment of a new CEO and other recent changes in senior leadership from the reorganization under our Grow Brand Love strategy; the failure to adequately mitigate the impact of existing tariffs and/or the imposition of additional duties, tariffs, taxes and other charges or other barriers to trade or impacts from trade relations; impacts of US government shutdowns on consumer spending; difficulty or delay in executing or integrating an acquisition; the impact of the conflicts in the Middle East on the operations of our quality control and technology centers in Israel; the negative impacts that public health crisis, disease outbreak, epidemic or pandemic has had, and could have in the future, on our business, financial condition, profitability and cash flows; risks relating to shifts in consumer spending away from the jewelry category or away from the cultural customs of expressing commitments through engagements and weddings; trends toward more experiential purchases such as travel; general economic or market conditions, including impacts of inflation or other pricing environment factors on our commodity costs (including diamonds) or other operating costs; a prolonged slowdown in the growth of the jewelry market or a recession in the overall economy; financial market risks; a decline in consumer discretionary spending or deterioration in consumer financial position; disruptions in our supply chain; our ability to attract and retain labor; changes to regulations relating to customer credit; disruption in…
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Current wording
This Quarterly Report on Form 10-Q contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements arebased upon management's beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of the words “guidance,” “expects,” “continue,” “intends,” “anticipates,” “enhance,” “estimates,” “predicts,” “believes,” “should,” “potential,” “may,” “preliminary,” “forecast,” “objective,” “opportunity,” “plan,” “progress,” “strategy,” “target,” or “will” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties which could cause the actual results to not be realized, including, but not limited to: executing or optimizing major business or strategic initiatives, such as expansion of the services business or realizing the benefits of our restructuring plans or transformation strategies, including those that the Company may develop in the future; attracting and retaining key executive talent during periods of leadership transition, such as the recent changes in our senior leadership from the reorganization under our Grow Brand Love strategy; the failure to adequately mitigate the impact of existing tariffs and/or the imposition of additional duties, tariffs, taxes and other charges or other barriers to trade or impacts from trade relations; impacts of US government shutdowns on consumer spending; difficulty or delay in executing or integrating an acquisition; the impact of the conflicts in the Middle East on financial markets and consumer spending, such as from the impact of higher oil and gas prices, as well as on our operations of our quality control and technology centers in Israel; the negative impacts that public health crisis, disease outbreak, epidemic or pandemic has had, and could have in the future, on our business, financial condition, profitability and cash flows; risks relating to shifts in consumer spending away from the jewelry category or away from the cultural customs of expressing commitments through engagements and weddings; trends toward more experiential purchases such as travel; general economic or market conditions, including impacts of inflation or other pricing environment factors on our merchandise costs or other operating costs; a prolonged slowdown in the growth of the jewelry market or a recession in the overall economy; financial market risks; a decline in consumer discretionary spending or deterioration in consumer financial position; disruptions in our supply chain; our ability to attract and retain labor; changes to re…
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Previous wording
Signet Jewelers Limited (“Signet” or the “Company”) is a jewelry retailer incorporated in Bermuda. The Company operated 2,607 retail locations as of November 1, 2025, which when combined with the Company’s digital capabilities under its Connected Commerce strategy, provides customers the opportunity to use both online and in-store experiences as part of their shopping journey. Signet manages its business by geography, a description of which follows:
Current wording
Signet Jewelers Limited (“Signet” or the “Company”) is a specialty jewelry retailer incorporated in Bermuda. The Company operated 2,559 retail locations as of May 2, 2026, which when combined with the Company’s digital capabilities, provides customers the opportunity to use both online and in-store experiences as part of their shopping journey. Signet manages its business by geography, a description of which follows:
Previous wording
•The North America reportable segment operates nine brands, with the majority operating through both online and brick and mortar retail operations. The segment had 2,262 locations in the US and 91 locations in Canada as of November 1, 2025.
Current wording
•The North America reportable segment operates seven brands, with the majority operating through both online and brick and mortar retail operations. As previously announced, the James Allen brand transitioned to a proprietary collection within the Blue Nile website during May 2026. The segment had 2,217 locations in the US and 91 locations in Canada as of May 2, 2026.
Previous wording
◦In the US, the segment operates under the following brands: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared Jewelers and Jared Vault); Banter by Piercing Pagoda; Diamonds Direct; Rocksbox; and Digital brands, James Allen and Blue Nile.
Current wording
◦In the US, the segment primarily operates under the following brands: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared Jewelers and Jared Vault); Blue Nile; Diamonds Direct; and Banter by Piercing Pagoda.
Previous wording
•The International reportable segment had 254 locations in the UK and Republic of Ireland as of November 1, 2025, and maintains an online retail presence for its principal brands, H.Samuel and Ernest Jones.
Current wording
•The International reportable segment had 251 locations in the UK and Republic of Ireland as of May 2, 2026, and maintains an online retail presence for its brands, H.Samuel and Ernest Jones.
Previous wording
Certain Company activities are managed in the “Other” reportable segment for financial reporting purposes, primarily the Company’s diamond sourcing operation and its diamond polishing factory in Botswana. See Note 4 of Item 1 for additional information regarding the Company’s reportable segments and see Item 1 of Signet’s Fiscal 2025 Annual Report on Form 10-K for further background and description of the Company’s business.
Current wording
Certain Company activities are managed in the “Other” reportable segment for financial reporting purposes, primarily the Company’s diamond sourcing operation and diamond polishing factory in Botswana. See Note 4 of Item 1 for additional information regarding the Company’s reportable segments and see Item 1 of Signet’s Fiscal 2026 Annual Report on Form 10-K for further background and description of the Company’s business.
Previous wording
In Fiscal 2026, the Company launched its Grow Brand Love strategy. This transformative strategy focuses on driving sustainable growth and builds on a strong core foundation to create shareholder value. In addition, this strategy emphasizes style and product innovation, captivating experiences, and brand loyalty while harnessing centralized core capabilities. The Company has identified three strategic imperatives as part of the Grow Brand Love framework: shifting from a banners to brand mindset; growing our core business and expanding into adjacent categories; and organizational realignment to accelerate strategy execution. The Grow Brand Love strategy is further described in the Purpose and Strategy section within Item 1 of Signet’s Fiscal 2025 Annual Report on Form 10-K filed with the SEC on March 19, 2025.
Current wording
In Fiscal 2026, the Company launched its transformative Grow Brand Love strategy, which focuses on driving sustainable growth and builds on a strong core foundation to create shareholder value. In addition, this strategy emphasizes style and product innovation, captivating customer experiences, and brand loyalty while harnessing centralized core capabilities. In Fiscal 2027, we will be applying the learnings from year one to refine each of the strategy’s imperatives. The three strategic imperatives of the Grow Brand Love framework have evolved in Fiscal 2027 into: brand distinction; unlocking portfolio value; and strengthening our operating model. The Grow Brand Love strategy is further described in the Purpose and Strategy section within Item 1 of Signet’s Fiscal 2026 Annual Report on Form 10-K filed with the SEC on March 19, 2026.
Previous wording
Signet’s total sales increased by 3.1% during the third quarter of Fiscal 2026 compared to the same period in Fiscal 2025. The Company saw positive same stores sales growth of 3.0% during the quarter, with growth in all major categories. The bridal and fashion categories continued to be led by our largest brands - Kay, Zales and Jared - and driven by our refined assortment strategy and a refined approach to pricing and promotion to respond to customer preferences, while services grew high single digits compared to prior year quarter on the strength of the extended service plan offerings. Merchandise average unit retail (“AUR”) increased overall as well, particularly in fashion, which offset an overall decline in units period over period. During the third quarter of Fiscal 2026, AUR was up 7.7% in the North America reportable segment and 3.0% in the International reportable segment compared to the third quarter of Fiscal 2025. AUR in North America was bolstered by a focus on our assortment strategy, particularly in lab-grown diamond (“LGD”) fashion, as well as the impact of higher gold prices. Same store sales in the International reportable segment were up 3.6% in the third quarter.
Current wording
Signet’s total sales increased by 0.8% during the first quarter of Fiscal 2027 compared to the same period in Fiscal 2026. The Company saw positive same stores sales growth of 1.8% during the quarter, with low single-digit growth in bridal and fashion, and stronger growth in watches and services. This growth was impacted by a one point drag from the James Allen brand. Merchandise average unit retail (“AUR”) grew across all categories as well, particularly in bridal. During the first quarter of Fiscal 2027, AUR was up 5.1% in the North America reportable segment and up 3.4% in the International reportable segment compared to the first quarter of Fiscal 2026. Same store sales in the International reportable segment were up 5.6% in the first quarter.
Previous wording
Refer to the “Results of Operations” section below for additional information on performance during the third quarter of Fiscal 2026.
Current wording
Refer to the “Results of Operations” section below for additional information on performance during the first quarter of Fiscal 2027.
Previous wording
The Company continues to closely monitor ongoing activities related to changes to US economic policy, including impacts from both taxes and tariffs. The second quarter of Fiscal 2026 saw significant activity on new tariff announcements on countries such as India and Italy, where the Company purchases significant amounts of merchandise and diamonds. We believe that we are now able to mitigate the majority of the higher tariffs through strategic sourcing initiatives by working with vendors to maximize production timing and country of origin, as well as by value engineering merchandise at the right price points. The Company believes that its well-balanced assortment and promotional cadence for the Holiday Season discussed above will continue to mitigate the impacts of the tariff environment and higher gold prices.
Current wording
The Company continues to closely monitor ongoing activities related to changes to US economic policy, including impacts from both taxes and tariffs. The second quarter of Fiscal 2026 saw significant activity on new tariff announcements on countries such as India and Italy, where the Company purchases significant amounts of merchandise and diamonds. We were able to mitigate the majority of the higher tariffs through strategic sourcing initiatives by working with vendors to maximize production timing and country of origin, as well as by value engineering merchandise at the right price points. In February 2026, the US Supreme Court struck down certain tariffs implemented in April 2025 under the International Emergency Economic Powers Act (“IEEPA”). While U.S. Customs and Border Protection has been actively reviewing and processing refund requests following the Supreme Court ruling, management has not currently forecasted any significant impacts from potential refunds of tariffs paid under IEEPA or alternative tariff structures that may be implemented by the current administration, as the timing and amount of such impacts remain uncertain.
Previous wording
The Company also continues to evaluate the impacts of other macroeconomic factors on its business, such as inflation and the Russia-Ukraine and Middle East conflicts. As previously discussed, Signet operates quality control and technology centers in Israel, and to date, these operations have not been impacted by the geopolitical conflict in the Middle East. While the Company currently does not expect disruptions to its operations in Israel to have a material impact on the Company’s results of operations, the Company will continue to closely monitor this conflict and any impacts on its business, as well as its team members in Israel. Uncertainties exist that could impact the Company’s results of operations or cash flows in the future, such as competitive pricing pressure, including on lab-grown diamonds, impacts of the US government shut down on consumer spending, continued inflationary impacts (including, but not limited to, materials, labor, fulfillment and advertising costs), adverse shifts in consumer discretionary spending, slower than anticipated recovery of engagements, deterioration of consumer credit, supply chain disruptions to the Company’s business, the Company’s ability to recruit and retain qualified team members, and organized retail crime and its impact to mall traffic. See “Forward-Looking Statements” above as well as the “Risk Factors” section within Item 1A of Signet’s Fiscal 2025 Annual Report on Form 10-K.
Current wording
The Company also continues to evaluate other macroeconomic factors on its business, such as inflation and potential impacts of the conflicts in the Middle East, including from higher oil and gas prices. As previously discussed, Signet operates quality control and technology centers in Israel, and to date, these operations have not been impacted by the geopolitical conflicts in the Middle East. While the Company currently does not expect disruptions to its operations in Israel to have a material impact on the Company’s results of operations, the Company will continue to closely monitor this conflict and any impacts on its business, as well as its team members in Israel. Uncertainties exist that could impact the Company’s results of operations or cash flows in the future, such as competitive pricing pressure, including on lab-grown diamonds, impacts of the US government shut down on consumer spending, continued inflationary impacts (including, but not limited to, materials, labor, fulfillment and advertising costs), adverse shifts in consumer discretionary spending, deterioration of consumer credit, supply chain disruptions to the Company’s business, the Company’s ability to recruit and retain qualified team members, and organized retail crime and its impact to mall traffic. See “Forward-Looking Statements” above as well as the “Risk Factors” section within Item 1A of Signet’s Fiscal 2026 Annual Report on Form 10-K.
Previous wording
Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025
Current wording
Comparison of First Quarter Fiscal 2027 to First Quarter Fiscal 2026
Previous wording
E-commerce sales in the third quarter of Fiscal 2026 were $280.7 million, down $8.5 million or 2.9%, compared to $289.2 million in the prior year third quarter. This decrease was primarily due to underperformance in the James Allen brand noted above. E-commerce sales accounted for 20.2% of third quarter sales, a decrease compared to 21.4% of total sales in the prior year third quarter. Brick and mortar same store sales increased 4.7% from the prior year third quarter.
Current wording
E-commerce sales in the first quarter of Fiscal 2027 were $322.1 million, down $16.6 million or 4.9%, compared to $338.7 million in the prior year first quarter. This decrease was primarily due to the underperformance of the James Allen brand. E-commerce sales accounted for 20.7% of first quarter sales, a decrease compared to 22.0% of total sales in the prior year first quarter. Brick and mortar same store sales increased 3.8% from the prior year first quarter.
Previous wording
The breakdown of the third quarter sales performance by reportable segment is set out in the table below:
Current wording
The breakdown of the first quarter sales performance by reportable segment is set out in the table below:
Previous wording
(2)Includes sales from Signet’s diamond sourcing operation.
Current wording
(1)Includes sales from Signet’s diamond sourcing operation.
Previous wording
The North America reportable segment’s total sales were $1.30 billion compared to $1.26 billion in the prior year quarter, or an increase of 3.0%. Same store sales increased 3.0% compared to a decrease of 0.8% in the prior year quarter. These increases reflect the focus on the largest brands in both bridal and fashion, an enhanced assortment strategy, as well as growth in services. The improved assortment across the bridal and fashion categories drove strong AUR growth of 7.7% compared to the prior year third quarter. The number of units sold decreased 5.3% year over year, primarily driven by Banter. The overall increase was negatively impacted by the underperformance of the James Allen and Diamonds Direct brands as noted above.
Current wording
The North America reportable segment’s total sales were $1.46 billion compared to $1.45 billion in the prior year quarter, or an increase of 0.9%. Same store sales increased 1.6% compared to the prior year first quarter. These increases reflect the focus on the four largest brands across all categories, as well as growth in services. The improved assortment across the bridal and fashion categories drove strong AUR growth of 5.1% compared to the prior year first quarter. The number of units sold decreased 4.5% year over year. The overall increase was negatively impacted by the underperformance of the James Allen brand as noted above.
Previous wording
The International reportable segment’s total sales increased 4.4%, or 1.6% at constant exchange rates, to $87.0 million compared to $83.3 million in the prior year quarter. The number of units sold decreased 3.0% and AUR increased 3.0% year over year. Same store sales increased 3.6% compared to an increase of 1.6% in the prior year quarter. The increase in total sales at constant exchange rates was slightly lower than the increase in same store sales due to store closures.
Current wording
The International reportable segment’s total sales increased 9.2%, or 4.8% at constant exchange rates, to $87.5 million compared to $80.1 million in the prior year quarter. The number of units sold increased 1.5% and AUR increased 3.4% year over year. Same store sales increased 5.6% compared to the prior year first quarter. The increase in total sales at constant exchange rates was slightly lower than the increase in same store sales due to store closures.
Previous wording
In the third quarter of Fiscal 2026, other operating expense was $8.1 million, compared to $5.8 million in the prior year quarter. For the 39 weeks ended November 1, 2025, other operating expense was $33.2 million, compared to $13.2 million in the prior year comparable period. The 13 and 39 weeks ended November 1, 2025 primarily included restructuring and related charges of $4.3 million and $26.1 million, respectively, related to the actions under the Company’s new corporate strategy, Grow Brand Love. The 13 and 39 weeks ended November 2, 2024 primarily included restructuring and related charges of $5.2 million and $11.0 million. See Note 17 and Note 18 for additional information.
Current wording
In the first quarter of Fiscal 2027, other operating expense was $10.0 million, compared to $24.7 million in the prior year quarter. The 13 weeks ended May 2, 2026 primarily included restructuring and asset impairment charges of $9.0 million related to the actions under the Company’s Grow Brand Love strategy. The 13 weeks ended May 3, 2025 primarily included restructuring and asset impairment charges of $22.2 million. See Note 15 and Note 16 for additional information.
Previous wording
In the third quarter, operating income in the North America reportable segment was $44.1 million, or 3.4% of segment sales, and includes $1.5 million of asset impairment charges primarily related to long-lived assets and cloud computing assets and $3.1 million of restructuring and related charges. In the prior year quarter, operating income in the North America reportable segment was $24.1 million, or 1.9% of segment sales, and included $5.4 million of restructuring and related charges and $0.8 million of asset impairment charges primarily related to long-lived assets.
Current wording
In the first quarter, operating income in the North America reportable segment was $60.4 million, or 4.1% of segment sales, and includes $39.5 million of restructuring and related charges, including inventory write-down charges of $32.7 million, and $1.5 million of asset impairment charges related to long-lived assets. In the prior year quarter, operating income in the North America reportable segment was $83.0 million, or 5.7% of segment sales, and included $10.9 million of restructuring and related charges and $3.2 million of asset impairment charges related to long-lived assets.
Previous wording
In the third quarter, operating loss in the International reportable segment was $6.4 million, or (7.4)% of segment sales and includes $2.1 million of losses from the previously announced divestiture of the UK prestige watch business and $0.3 million of restructuring and related charges. In the prior year quarter, operating loss in the International reportable segment was $3.7 million, or (4.4)% of segment sales, and included $0.4 million of restructuring and related charges.
Current wording
In the first quarter, operating loss in the International reportable segment was $6.6 million, or (7.5)% of segment sales. In the prior year quarter, operating loss in the International reportable segment was $7.0 million, or (8.7)% of segment sales.
Previous wording
The ETR for the third quarter of Fiscal 2026 was higher than the Bermuda corporate income tax rate, primarily as a result of the unfavorable impact of foreign rate differences (primarily in the US). The ETR for the third quarter of Fiscal 2025 was different than the US federal income tax rate, primarily due to the favorable impacts of foreign rate differences and benefits from global reinsurance arrangements.
Current wording
In the first quarter of Fiscal 2027, income tax expense was $9.1 million, with an effective tax rate (“ETR”) of 22.3%, compared to income tax expense of $12.1 million, with an ETR of 26.5%, in the prior year comparable period. The ETR for the first quarter of Fiscal 2027 was higher than the Bermuda corporate income tax rate, primarily as a result of the unfavorable impact of foreign rate differences (primarily in the US).
Previous wording
In the 39 weeks ended November 1, 2025, income tax expense was $31.5 million, with an ETR of 41.5%, compared to income tax expense of $9.5 million, with an ETR of (31.8)% in the prior year comparable period. The ETR for the period was higher than the Bermuda corporate income tax rate primarily as a result of the unfavorable impact of foreign rate differences (primarily in the US) and unfavorable discrete tax items recognized, including non-deductible goodwill impairment charges of $53.6 million and the tax shortfall for share-based compensation which vested during the year of $0.6 million. The year to date ETR in the prior year comparable period was different than the US federal income tax rate, primarily as a result of discrete tax items recognized in the 39 weeks ended November 2, 2024, including impairment charges of $166 million, of which $123 million related to non-deductible goodwill, andthe excess tax benefit for share-based compensation which vested during the year of $5.0 million. These discrete impacts were partially offset by the favorable impact of foreign rate differences and benefits from global reinsurance arrangements.
Current wording
The ETR for the first quarter of Fiscal 2026 was higher than the Bermuda corporate income tax rate primarily as a result of the unfavorable impact of foreign rate differences (primarily in the US) and unfavorable discrete tax items recognized in the 13 weeks ended May 3, 2025, including the tax shortfall for share-based compensation which vested during the year of $0.8 million.
Previous wording
Net cash (debt) is a non-GAAP measure defined as the total of cash and cash equivalents less debt. Management considers this metric to be helpful to understand the total indebtedness of the Company after consideration of cash balances on-hand.
Current wording
Net cash is a non-GAAP measure defined as the total of cash and cash equivalents less debt. Management considers this metric to be helpful to understand the total indebtedness of the Company after consideration of cash balances on-hand.
Previous wording
Free cash flow is a non-GAAP measure defined as the net cash provided by (used in) operating activities less capital expenditures. Management considers this metric to be helpful in understanding how the business is generating cash from its operating and investing activities that can be used to meet the financing needs of the business. Free cash flow is an indicator frequently used by management to evaluate its overall liquidity needs and determine appropriate capital allocation strategies. Free cash flow does not represent the residual cash flow available for discretionary purposes.
Current wording
Free cash flow is a non-GAAP measure defined as the net cash used in operating activities less capital expenditures. Management considers this metric to be helpful in understanding how the business is generating cash from its operating and investing activities that can be used to meet the financing needs of the business. Free cash flow is an indicator frequently used by management to measure the efficiency of converting operating income to cash, as well as evaluate its overall liquidity needs and determine appropriate capital allocation strategies. Free cash flow does not represent the residual cash flow available for discretionary purposes.
Previous wording
Adjusted diluted EPS is a non-GAAP measure defined as diluted EPS excluding the impact of certain items which management believes are not necessarily reflective of normal operational performance during a period. Management finds the information useful when analyzing financial results in order to appropriately evaluate the performance of the business without the impact of these certain items. In particular, management believes the consideration of measures that exclude such items can assist in the comparison of performance in different periods which may or may not include such items. The Company estimates the tax effect of all non-GAAP adjustments by applying a statutory tax rate to each item. The income tax items represent the discrete amount that affected the diluted EPS during the period.
Current wording
Adjusted diluted EPS is a non-GAAP measure defined as diluted EPS excluding the impact of certain items which management believes are not necessarily reflective of normal operational performance during a period. Management finds the information useful when analyzing financial results in order to appropriately evaluate the performance of the business without the impact of these certain items. In particular, management believes the consideration of measures that exclude such items can assist in the comparison of performance in different periods which may or may not include such items. The Company estimates the tax effect of all non-GAAP adjustments by applying the relevant statutory tax rate to each item. The income tax items represent the discrete amount that affected the diluted EPS during the period.
Previous wording
The Company’s primary sources of liquidity are cash on hand, cash provided by operations and availability under its senior secured asset-based revolving credit facility (the “ABL”). As of November 1, 2025, the Company had $234.7 million of cash and cash equivalents and no outstanding borrowings on the ABL. The available borrowing capacity on the ABL was $1.2 billion as of November 1, 2025.
Current wording
The Company’s primary sources of liquidity are cash on hand, cash provided by operations and availability under its senior secured asset-based revolving credit facility (the “ABL”). As of May 2, 2026, the Company had $602.8 million of cash and cash equivalents and no outstanding borrowings on the ABL. The available borrowing capacity on the ABL was $1.1 billion as of May 2, 2026.
Previous wording
The Company maintains a disciplined approach to capital allocation, utilizing the following priorities: 1) Invest in organic growth; 2) maintain conservative balance sheet, including an adjusted leverage ratio (a non-GAAP measure as defined in Item 7 of the Signet’s Fiscal 2025 Annual Report on Form 10-K) of at or below our stated goal; and 3) return capital to shareholders through share repurchases and dividends.
Current wording
The Company maintains a disciplined approach to capital allocation, utilizing the following priorities: 1) invest in organic growth; 2) maintain a conservative balance sheet; and 3) return capital to shareholders through share repurchases and dividends.
Previous wording
The strategic imperatives of the Company’s Grow Brand Love transformation strategy have been designed to accelerate growth by building on a strong core foundation to create shareholder value. The Company will focus on increasing market share in core areas such as Bridal, while expanding into categories like self-purchase and gifting. In order to achieve these goals, the Company has reorganized strategic areas of our business such as marketing and sourcing to streamline operations, increase efficiencies, improve accountability and reduce costs. This reorganization, which is substantially complete, has already begun to enable our new go-to-market strategies and contribute towards our efforts to strengthen our brand portfolio. We are also optimizing our real estate footprint to support the positioning of our brands and modernizing our stores through capital improvements. These real estate initiatives will include the closure of underperforming stores, repositioning stores out of declining venues, renovation of stores and an increased focus on transference from closed locations to capitalize on brand equity across the portfolio. The Company invested $153.0 million for capital expenditures in Fiscal 2025 and has planned for capital expenditures of up to $160 million in Fiscal 2026, reflecting primarily investments in new stores and renovations as described above, as well as additional digital and technology advancements.
Current wording
The strategic imperatives of the Company’s Grow Brand Love transformation strategy have been designed to drive sustainable growth by building on a strong core foundation to create shareholder value and coveted brands. In order to achieve these goals, the Company has reorganized strategic areas of our business such as marketing and sourcing to streamline operations, increase efficiencies, improve accountability and reduce costs. This reorganization has already begun to enable our go-to-market strategies and contribute towards our efforts to strengthen our brand portfolio, and builds a strong foundation as we go into year two of Grow Brand Love to take actions to improve the customer experience and further transform our approach to marketing. We are also continuing to optimize our real estate footprint to support the positioning of our brands and modernizing our stores through capital improvements. These real estate initiatives will include the closure of underperforming stores, repositioning stores out of declining venues, renovation of stores and an increased focus on transference from closed locations to capitalize on brand equity across the portfolio. The Company invested $153.5 million for capital expenditures in Fiscal 2026 and has planned for capital expenditures of up to $180 million in Fiscal 2027, reflecting primarily investments in new stores and renovations as described above, as well as additional digital and technology advancements.
Previous wording
The Company had no outstanding debt as of November 1, 2025, nor where there any borrowings on the ABL to date in Fiscal 2026. Available borrowing capacity under the ABL was $1.2 billion as of November 1, 2025.
Current wording
The Company had no outstanding debt as of May 2, 2026 or May 3, 2025. The Company has the $1.2 billion ABL, expiring in August 2029, with the option to increase the size of the ABL by up to an additional $600 million. There were no borrowings under the ABL during the 13 weeks ended May 2, 2026 and May 3, 2025. Available borrowing capacity under the ABL was $1.1 billion as of May 2, 2026.
Previous wording
Cash and cash equivalents at November 1, 2025 were $234.7 million compared to $157.7 million as of November 2, 2024. The increase year over year was primarily driven by cash flow from operations described above, resulting in stronger performance and working capital efficiency during the past year, offset partially by common share repurchases. Signet holds cash and cash equivalents at a number of large, highly-rated financial institutions. The amount held at each financial institution takes into account the credit rating and size of the financial institution and is held for short-term durations.
Current wording
Cash and cash equivalents at May 2, 2026 were $602.8 million compared to $264.1 million as of May 3, 2025. The increase year over year was primarily driven by cash flow from operations, resulting from stronger performance and working capital efficiency during the past year. Signet holds cash and cash equivalents at a number of large, highly-rated financial institutions. The amount held at each financial institution takes into account the credit rating and size of the financial institution and is held for short-term durations.
Previous wording
The Company uses leverage ratios to assess the effectiveness of its capital allocation strategy. The Company maintained a 1.1x adjusted leverage ratio through the end of Fiscal 2025 (see non-GAAP measures as defined in Item 7 of the Signet’s Fiscal 2025 Annual Report on Form 10-K). During Fiscal 2025, the Company reduced its adjusted leverage ratio goal from 2.5x or less to 1.75x or less to reflect the retirement of all funded debt in Fiscal 2025, capital allocation strategies, and replacing the operating lease adjustment within the calculation with lease liabilities from the previous 5x rent adjustment. The Company continues to be confident in its ability to generate free cash flow while maintaining this leverage ratio target.
Current wording
The Company uses leverage ratios to assess the effectiveness of its capital allocation strategy. The Company maintained a 1.1x adjusted leverage ratio through the end of Fiscal 2026 (see non-GAAP measures as defined in Item 7 of the Signet’s Fiscal 2026 Annual Report on Form 10-K).
Previous wording
The Company remains committed to its goal of returning cash to shareholders, which includes being a dividend growth company. For the fourth year in a row Signet has increased its quarterly common dividend, from $0.29 per share in Fiscal 2025 to $0.32 per share beginning in Fiscal 2026. The Company also remains focused on common share repurchases under its 2017 Program. In March 2024, the Board approved a further $200 million increase to the multi-year authorization under the 2017 Program. The Company has repurchased $178.2 million of common shares to date in Fiscal 2026, with $544.9 million of shares authorized for repurchase remaining as of November 1, 2025. See Note 6 for additional information related to the common share repurchases.
Current wording
The Company remains committed to its goal of returning capital to shareholders, which includes being a dividend growth company. For the fifth year in a row Signet has increased its quarterly common dividend, from $0.32 per share in Fiscal 2026 to $0.35 per share beginning in Fiscal 2027. The Company also remains focused on common share repurchases under its 2017 Share Repurchase Program. The Company has repurchased $82.7 million of common shares to date in Fiscal 2027, with $435.2 million of shares authorized for repurchase remaining as of May 2, 2026. See Note 5 for additional information related to the common share repurchases.
Previous wording
Net cash used in operating activities was $58.0 million during the 39 weeks ended November 1, 2025 compared to $189.8 million in the prior year comparable period. The change in operating cash flows compared to prior year was primarily driven by higher gross profit, lower cash paid for taxes and better working capital efficiency in the current year period. The significant movements in operating cash flows are further described below:
Current wording
Net cash used in operating activities was $144.7 million during the 13 weeks ended May 2, 2026 compared to $175.3 million in the prior year comparable period. The change in operating cash flows compared to prior year was primarily driven by better working capital efficiency in the current year partially offset by higher payments for income taxes and incentive compensation. The significant movements in operating cash flows are further described below:
Previous wording
•The change in current income taxes was a use of $37.5 million in the current period compared to a use of $92.4 million in the prior year. The current year use was primarily the result of net income tax payments of $67.5 million, compared to net income tax payments of $100.0 million in the prior year period.
Current wording
•The change in current income taxes was a use of $34.3 million in the current period compared to a use of $7.5 million in the prior year. The current year use was primarily the result of net income tax payments of $44.7 million, compared to net income tax payments of $16.2 million in the prior year period.
Previous wording
•Cash used by inventory was $155.0 million, compared to a use of $189.5 million in the prior year, reflecting seasonal replenishment of inventories following the fourth quarter of both fiscal years, and showed improvement year over year due to lower inventory levels, despite increases in gold prices and higher tariffs.
Current wording
•Cash used by inventory was $41.6 million, compared to a use of $56.1 million in the prior year, reflecting seasonal replenishment of inventories following the fourth quarter of both fiscal years, and showed improvement year over year due to lower inventory levels, despite increases in gold prices and tariffs.
Previous wording
•Cash used by accounts payable was $105.3 million compared to a use of $101.5 million in the prior year period. Accounts payable is historically a use of cash in the first quarter, as the Company pays down invoices due from prior Holiday Season merchandise purchases.
Current wording
•Cash used by accounts payable was $79.8 million compared to a use of $187.5 million in the prior year period. Accounts payable is historically a use of cash in the first quarter, as the Company pays down invoices due from prior Holiday Season and Valentine’s Day merchandise purchases. The lower use in the current year is due to timing of purchases and payments compared to the prior year.
Previous wording
•Cash used by accrued expenses and other liabilities was $11.3 million, compared to a use of $45.9 million in the prior year period. The difference to the prior year comparable period is primarily due to timing of advertising payments year over year.
Current wording
•Cash used by accrued expenses and other liabilities was $64.0 million, compared to a use of $5.4 million in the prior year period. The difference compared to the prior year comparable period is primarily due to payments for incentive compensation.
Previous wording
Net cash used in investing activities for the 39 weeks ended November 1, 2025 was $95.1 million compared to a use of $121.0 million in the prior year period. Cash used in Fiscal 2026 was primarily related to capital expenditures of $93.1 million, compared to $114.4 million in Fiscal 2025. Capital expenditures are associated with new stores, remodels of existing stores, and capital investments in digital and IT. Signet has planned Fiscal 2026 capital expenditures of up to $160 million.
Current wording
Net cash used in investing activities for the 13 weeks ended May 2, 2026 was $23.9 million compared to a use of $36.6 million in the prior year period. Cash used in Fiscal 2027 was primarily related to capital expenditures of $24.5 million, compared to $36.6 million in Fiscal 2026. Capital expenditures are associated with new stores, remodels of existing stores, and capital investments in digital and information technology. Signet has planned Fiscal 2027 capital expenditures of up to $180 million.
Previous wording
Stores opened and closed in the 39 weeks ended November 1, 2025:
Current wording
Stores opened and closed in the 13 weeks ended May 2, 2026:
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Previous report — wording carried elsewhere
The breakdown of the year to date sales performance by reportable segment is set out in the table below:
Previous report — wording carried elsewhere
(2)Includes sales from Signet’s diamond sourcing operation.
Previous report — wording carried elsewhere
Estimates and assumptions are primarily made in relation to the valuation of inventories, deferred revenue, employee compensation, income taxes, contingencies, leases, asset impairments for goodwill, indefinite-lived intangible and long-lived assets and the depreciation and amortization of long-lived assets. Management bases the estimates and judgments on historical experience and various other factors believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Previous report — wording carried elsewhere
During the second quarter of Fiscal 2026, the carrying values of the Digital brands goodwill and the James Allen and Diamonds Direct trade names were reduced to their estimated fair values of $0, $2 million and $109 million, respectively, which resulted in the recognition of impairment charges of approximately $54 million, $13 million and $3 million, respectively. The impairment charges in the Digital brands reporting unit and related James Allen trade name were driven primarily by the decline in long-term cash flow projections of this business, particularly in the James Allen brand due to continued challenges with assortment and its competitive position in the market. Management also determined an increase in discount rates was required to reflect the current interest rate environment at the valuation date, and to reflect additional forecast risk for the Digital brands due to the challenges at James Allen noted above, as well as additional uncertainty related to potential tariff impacts on the business.