SIGNET JEWELERS LTD
For the period ended Aug 1, 2026. Filed Sep 9, 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.
Aug 1, 2026 · Filed Sep 9, 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 2026-05-02; filed 2026-06-02.
0000832988-26-000159
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-08-01; filed 2026-09-09.
0000832988-26-000229
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 116 previous paragraphs and 142 current paragraphs.
64 unchanged; 45 reworded; 29 added; 7 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 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 (29)
Current report
Overall performance - Second quarter Fiscal 2027
Current report
The Company continues to closely monitor ongoing activities related to changes to US economic policy, including impacts from both taxes and tariffs. As previously disclosed, we were able to mitigate the majority of the higher tariffs announced in Fiscal 2026 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 issued a decision invalidating the broad-based tariffs imposed under IEEPA, and the Court of International trade has ordered CBP to refund the tariffs directly incurred by the Company imposed under IEEPA. Beginning in Fiscal 2027, the Company submitted our claim for refunds of the IEEPA tariffs previously paid through the CBP portal established to process such claims. The Company applied a gain contingency model to determine the timing of recognition of the refunds of the previously paid IEEPA tariffs, and thus has recognized the refunds as they become realized or realizable based on the approval status in the CBP portal. As of the end of the second quarter of Fiscal 2027, the Company has received approximately $20 million of refunds for tariffs previously paid. However, we have not forecasted any material impact of future expected refunds, nor have we forecasted the impact of potential new tariffs that may be assessed.
Current report
Comparison of Second Quarter Fiscal 2027 to Second Quarter Fiscal 2026
Current report
Second quarter sales
Current report
(1)Blue Nile and James Allen sales have been excluded from the calculation of same store sales beginning in the second quarter of Fiscal 2027 to reflect the transition of those brands.
Current report
Year to date sales
Current report
Signet’s total year to date sales increased 0.2% year over year to $3.08 billion in the 26 weeks ended August 1, 2026. Same store sales increased 2.0% to the prior year. As previously described above, total sales were negatively impacted by the underperformance of the James Allen brand and the decommissioning of its stand alone website in May. Same store sales growth was driven by increases at our three largest brands as further described above. AUR grew 5.4% compared to the prior year despite a decrease in the number of units sold partially because of strength in the higher-end consumer and better performance at higher price points.
Current report
Signet’s year to date e-commerce sales were $622.1 million, down $34.2 million or 5.2%, compared to $656.3 million in the prior year. This decrease was primarily due to the decommissioning of the James Allen website. E-commerce sales accounted for 20.2% of year to date sales, down slightly from 21.3% of total sales in the prior year. Brick and mortar same store sales increased 3.1% from the prior year.
Current report
(1) Blue Nile and James Allen sales have been excluded from the calculation of same store sales beginning in the second quarter of Fiscal 2027 to reflect the transition of those brands.
Current report
nm Not meaningful.
Current report
North America sales
Current report
The North America reportable segment’s total sales were $2.89 billion compared to $2.88 billion in the prior year, or an increase of 0.5%. Same store sales increased 1.7% compared to the prior year. The same store sales increase reflects the focus on our three largest brands across all categories, and was offset by the underperformance and transition of James Allen and Blue Nile as described previously. North America’s AUR increased 6.3% compared to the prior year, while the number of units decreased 6.3%.
Current report
International sales
Current report
Asset impairments, net
Current report
For the 13 and 26 weeks ended August 1, 2026, the Company recorded non-cash, pre-tax impairment charges of $19.5 million and $21.0 million, respectively, compared to charges of $80.2 million and $83.4 million in the 13 and 26 weeks ended August 2, 2025, respectively. In the first half of Fiscal 2027, $19.0 million of the charges related to impairment of the Diamonds Direct indefinite-lived trade name and $2.0 million related to the impairment of long-lived assets. In the first half of Fiscal 2026, $69.6 million of the charges related to impairment of goodwill and indefinite-lived trade names primarily related to the Digital brands and $13.8 million related to the impairment of long-lived assets and cloud computing arrangements. See Note 11 and Note 16 for additional information.
Current report
For the second quarter of Fiscal 2027, operating income was $87.5 million, or 5.7% of sales, compared to $2.8 million, or 0.2% of sales, in the prior year quarter. In the first half of Fiscal 2027, operating income was $124.4 million, or 4.0% of sales, compared to $50.9 million, or 1.7% of sales, in the prior year comparable period. The increase in operating income for both the 13 and 26 weeks ended August 1, 2026 was primarily driven by lower asset impairment charges noted above.
Current report
In the first half of Fiscal 2027, operating income in the North America reportable segment was $163.9 million, or 5.7% of segment sales, and includes $21.0 million of asset impairment charges primarily related to indefinite-lived intangible assets and $39.7 million of restructuring and related charges, including charges related to inventory disposition at James Allen and Rocksbox of $31.3 million. In the first half of Fiscal 2026, operating income in the North America reportable segment was $106.0 million, or 3.7% of segment sales, and included $83.4 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $11.9 million of restructuring and related charges.
Current report
In the first half of Fiscal 2027, operating loss in the International reportable segment was $8.2 million, or (4.5)% of segment sales. In the first half of Fiscal 2026, operating loss in the International reportable segment was $9.2 million, or (5.4)% of segment sales.
Current report
Interest income (expense), net
Current report
Other non-operating (expense) income, net
Current report
In the second quarter, other non-operating expense was $16.9 million compared to income of $2.4 million in the prior year comparable period. In the first half of Fiscal 2027, other non-operating expense was $16.6 million compared to $0.9 million in the prior year comparable period. Other non-operating expense in the 13 and 26 weeks ended August 1, 2026 consisted primarily of $19.2 million related to the impairment of the Company’s equity method investment in Sasmat and related loans receivable. See Note 15 for additional information.
Current report
In the first half of Fiscal 2027, income tax expense was $29.9 million, with and ETR of 26.3%, compared to income tax expense of $26.3 million, with an ETR of 51.9%, in the prior year comparable period. The ETR for the 26 weeks ended August 1, 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 year to date ETR in the prior year comparable 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 $0.7 million.
Current report
(1)Includes impairment of the Company’s equity method investment in Sasmat and related loans receivable. See Note 15 for additional information.
Current report
(3)Fiscal 2027 asset impairment charges primarily relates to indefinite-lived intangible assets. Fiscal 2026 asset impairment charges primarily relates to goodwill and indefinite-lived assets. See Note 11 for additional information.
Current report
(2)Fiscal 2027 asset impairment charges primarily relates to indefinite-lived intangible assets. Fiscal 2026 asset impairment charges primarily relates to goodwill and indefinite-lived assets. See Note 11 for additional information.
Current report
(2)Fiscal 2027 asset impairment charges primarily relates to indefinite-lived intangible assets. Fiscal 2026 asset impairment charges primarily relates to goodwill and indefinite-lived assets. See Note 11 for additional information.
Current report
(3)Includes impairment of the Company’s equity method investment in Sasmat and related loans receivable. See Note 15 for additional information.
Current report
As described in Note 3, in September 2026, the Company entered into an amended and restated Program Agreement with Bread to extend the outsourcing partnership of its private label credit card program through December 31, 2035. The Company’s outsourcing arrangements remain a strategic priority as it allows us to keep consumer credit risk off of the Company’s balance sheet, as well as provides for enhanced economics in the form a of profit share which allows the Company to further capitalize on the value of its portfolio.
Current report
•Net income was $83.8 million compared to net income of $24.4 million in the prior year period, an increase of $59.4 million. The increase was driven by lower asset impairment charges, lower SG&A, and lower cash restructuring charges compared to prior year. In Fiscal 2027 to date, the Company has also received approximately $20 million in refunds from tariffs previously paid.
Removed paragraphs (7)
Previous report
Overall performance - First quarter Fiscal 2027
Previous report
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 report
Comparison of First Quarter Fiscal 2027 to First Quarter Fiscal 2026
Previous report
First quarter sales
Previous 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.
Previous report
Interest income, net
Previous 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.
Reworded paragraphs (45)
Previous 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.
Current wording
This management's discussion and analysis provides comparisons of material changes in the condensed consolidated financial statements for the 13 and 26 weeks ended August 1, 2026 and August 2, 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 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…
Excerpt shortened here; the source contains the full paragraph.
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,” “could,” “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 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 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; chan…
Excerpt shortened here; the source contains the full paragraph.
Previous 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:
Current wording
Signet Jewelers Limited (“Signet” or the “Company”) is a specialty jewelry retailer incorporated in Bermuda. The Company operated 2,534 retail locations as of August 1, 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 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.
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 2,191 locations in the US and 91 locations in Canada as of August 1, 2026.
Previous 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.
Current wording
•The International reportable segment had 252 locations in the UK and Republic of Ireland as of August 1, 2026, and maintains an online retail presence for its brands, H.Samuel and Ernest Jones.
Previous 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.
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 are 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 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.
Current wording
Signet’s total sales decreased by 0.5% during the second quarter of Fiscal 2027 compared to the same period in Fiscal 2026. The Company saw positive same stores sales growth of 2.2% during the quarter, led by growth in both bridal and services. Same store sales in second quarter excluded James Allen and Blue Nile due to the impacts of the transition and repositioning of the James Allen brand into Blue Nile in May. Merchandise average unit retail (“AUR”) grew mid single-digits in both the bridal and fashion categories. During the second quarter of Fiscal 2027, AUR was up 7.8% in the North America reportable segment and up 3.8% in the International reportable segment compared to the second quarter of Fiscal 2026. Same store sales in the International reportable segment were up 6.0% in the second quarter.
Previous wording
Refer to the “Results of Operations” section below for additional information on performance during the first quarter of Fiscal 2027.
Current wording
Refer to the “Results of Operations” section below for additional information on performance during the second quarter of Fiscal 2027.
Previous wording
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 wording
The Company anticipates same store sales in the range of flat to up 2.5% for Fiscal 2027. This range is driven by the performance during the first half of the year and accelerating brand equity initiatives, including brand relaunches, merchandise refreshes, transforming our marketing playbook and customer experience redesigns. As noted above, the Company has excluded the James Allen and Blue Nile brands from the 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 expects to build on Kay’s strong foundation with the new “Love All In” creative platform, bringing a fresh expression of love to the Kay customer experience. The Company also is leaning further into social media as a way to build emotional connections with customers with stronger storytelling to drive stronger brand engagement. The Company is sharpening its go-to-market strategy for each of its largest brands, and we will be taking actions to improve the customer experience, both in-store and online. The recent redesign launches, specifically for Kay and Jared, create a foundation for digital growth by including deeper personalization, agentic discovery, and greater omnichannel connectivity.
Previous wording
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 wording
Signet's total sales decreased 0.5% year over year to $1.53 billion in the 13 weeks ended August 1, 2026. Total sales were negatively impacted primarily by the decommissioning of the James Allen website and transition into Blue Nile in May. Same store sales increased 2.2% compared to the prior year second quarter. The same store sales growth reflects increases from our three largest brands - Kay, Zales and Jared - and strong performance in the UK. AUR grew 6.4% compared to the prior year second quarter despite a decrease in the number of units sold partially because of strength in the higher-end consumer and better performance at higher price points.
Previous 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.
Current wording
Signet’s e-commerce sales in the second quarter of Fiscal 2027 were $300.0 million, down $17.6 million or 5.5%, compared to $317.6 million in the prior year second quarter. This decrease was primarily due to the decommissioning of the James Allen website. E-commerce sales accounted for 19.6% of second quarter sales, down compared to 20.7% of total sales in the prior year second quarter. Brick and mortar same store sales increased 2.3% from the prior year second quarter.
Previous wording
The breakdown of the first quarter sales performance by reportable segment is set out in the table below:
Current wording
The breakdown of the second quarter sales performance by reportable segment is set out in the table below:
Previous wording
(1)Includes sales from Signet’s diamond sourcing operation.
Current wording
(2)Includes sales from Signet’s diamond sourcing operation.
Previous 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.
Current wording
The North America reportable segment’s total sales were $1.43 billion, flat to the prior year quarter. Same store sales increased 1.9% compared to the prior year second quarter. The same store sales increase reflects the focus on our three largest brands across all categories as described above. The same store sales performance was offset by the decline in reported sales from James Allen due to the decommissioning of the website and transition to Blue Nile in second quarter. Assortment improvements across the bridal and fashion categories drove strong AUR growth of 7.8% compared to the prior year second quarter despite the number of units sold having decreased 8.3% year over year.
Previous 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.
Current wording
The International reportable segment’s total sales increased 5.2%, or 5.8% at constant exchange rates, to $96.6 million compared to $91.8 million in the prior year quarter. The number of units sold increased 2.0% and AUR increased 3.8% year over year. Same store sales increased 6.0% compared to the prior year second 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 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 wording
In the second quarter of Fiscal 2027, gross margin was $602.4 million, or 39.4% of sales, compared to $591.9 million, or 38.6% of sales, in the prior year quarter. For the 26 weeks ended August 1, 2026, gross margin was $1.16 billion, or 37.6% of sales, compared to $1.19 billion, or 38.7% of sales in the prior year comparable period. For the second quarter, gross margin increased in total dollars and as a percentage of sales, primarily reflecting the favorable tariff refunds of approximately $15 million and lower scrap due to stronger recoveries year over year from gold prices, slightly offset by margin pressure from gold prices. For the year to date period, gross margin decreased in total dollars and as a percentage of sales primarily reflecting merchandise margin decline due to increases in gold prices, accelerated melt particularly from trade-in and clearance product, and $31.3 million of charges for inventory write-downs related to the decommissioning of the James Allen and Rocksbox websites, partially offset by tariff refunds.
Previous wording
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 wording
In the second quarter of Fiscal 2027, SG&A was $493.6 million, or 32.3% of sales, compared to $505.3 million, or 32.9% of sales, in the prior year quarter. For the 26 weeks ended August 1, 2026, SG&A was $1.00 billion, or 32.6% of sales, compared to $1.03 billion, or 33.5% of sales, in the prior year comparable period. The decrease in SG&A for both the 13 and 26 weeks ended August 1, 2026 was driven by the previous year’s reorganization of the operating model, ongoing spend discipline and lower advertising primarily as a result of the transition of James Allen described above.
Previous 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.
Current wording
In the second quarter of Fiscal 2027, other operating expense was $1.8 million, compared to $3.6 million in the prior year quarter. In the first half of Fiscal 2027, other operating expense was $10.3 million, compared to $25.1 million in the prior year comparable period. The 13 and 26 weeks ended August 1, 2026 primarily included restructuring charges of $1.8 million and $9.3 million, respectively, related to the actions under the Company’s Grow Brand Love strategy. The 13 and 26 weeks ended August 2, 2025 primarily included restructuring charges of $2.8 million and $21.8 million, respectively. See Note 15 and Note 16 for additional information.
Previous 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.
Current wording
In the second quarter, operating income in the North America reportable segment was $103.5 million, or 7.2% of segment sales, and includes $19.5 million of asset impairment charges primarily related to indefinite-lived intangible assets. In the prior year quarter, operating income in the North America reportable segment was $23.0 million, or 1.6% of segment sales, and included $80.2 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $1.0 million of restructuring and related charges.
Previous 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.
Current wording
In the second quarter, operating loss in the International reportable segment was $1.6 million, or (1.7)% of segment sales. In the prior year quarter, operating loss in the International reportable segment was $2.2 million, or (2.4)% of segment sales.
Previous wording
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 wording
In the second quarter, corporate and unallocated expenses were $13.9 million, compared to $17.6 million in the prior year quarter. In the first half of Fiscal 2027, corporate and unallocated expenses were $27.4 million, compared to $41.6 million in the first half of Fiscal 2026. These decreases were 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 26 weeks ended weeks ended August 1, 2026, compared to $1.7 million and $9.8 million in 13 and 26 weeks ended August 2, 2025, respectively.
Previous wording
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 wording
In the 13 and 26 weeks ended August 1, 2026, net interest income was $2.3 million and $5.9 million, respectively, compared to net interest expense of $0.1 million and net interest income of $0.7 million in the 13 and 26 weeks ended August 2, 2025. The increases in net interest income for the current year quarter and year to date period are the result of higher invested cash balances generating interest compared to the prior year comparable periods.
Previous 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).
Current wording
In the second quarter of Fiscal 2027, income tax expense was $20.8 million, with an effective tax rate (“ETR”) of 28.5%, compared to income tax expense of $14.2 million, with an ETR of 278.4%, in the prior year comparable period. The ETR for the second 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
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.
Current wording
The ETR for the second 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, including non-deductible goodwill impairment charges of $53.6 million.
Previous 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.
Current 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 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
(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 wording
(2)Fiscal 2027 and Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Restructuring and related charges during the 13 and 26 weeks ended August 1, 2026 include a $1.4 million credit and charges of $31.3 million, respectively, related to the 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.
Previous wording
(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 wording
(1)Fiscal 2027 and Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Restructuring and related charges during the 13 and 26 weeks ended August 1, 2026 include a $1.4 million credit and charges of $31.3 million, respectively, related to the 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.
Previous wording
(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 wording
(1)Fiscal 2027 and Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. See Note 16 for additional information.
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 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.
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 August 1, 2026, the Company had $526.8 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 August 1, 2026.
Previous 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.
Current wording
The strategic imperatives of the Company’s Grow Brand Love 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 begun to enable our go-to-market strategies and contribute towards our efforts to strengthen our brand portfolio, as well as builds a strong foundation as we continue 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 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.
Current wording
The Company had no outstanding debt as of August 1, 2026 or August 2, 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 26 weeks ended August 1, 2026 and August 2, 2025. Available borrowing capacity under the ABL was $1.1 billion as of August 1, 2026.
Previous 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.
Current wording
Cash and cash equivalents at August 1, 2026 were $526.8 million compared to $281.4 million as of August 2, 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 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.
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. During the second quarter of Fiscal 2027, the Company completed an accelerated share repurchase agreement in which the Company paid a third-party financial institution $50 million to repurchase the Company’s common shares. Upon settlement, the Company received final deliveries totaling approximately 590,000 common shares. The Company has repurchased $169.9 million of common shares to date in Fiscal 2027, with $348.0 million of shares authorized for repurchase remaining as of August 1, 2026. In addition, subsequent to quarter end, the Board approved a further increase to the multi-year authorization under the 2017 Program bringing the total remaining authorization to approximately $700 million effective September 9, 2026.
Previous 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:
Current wording
Net cash used in operating activities was $73.5 million during the 26 weeks ended August 1, 2026 compared to $89.0 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 $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.
Current wording
•The change in current income taxes was a use of $68.9 million in the current period compared to a use of $21.9 million in the prior year. The current year use was primarily the result of net income tax payments of $90.5 million, compared to net income tax payments of $46.2 million in the prior year period.
Previous 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.
Current wording
•Cash used by inventory was $11.0 million, compared to a use of $35.9 million in the prior year, reflecting seasonal replenishment of inventories following the fourth quarter of the preceding 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 $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.
Current wording
•Cash used by accounts payable was $169.3 million compared to a use of $248.5 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. Additionally, during the first half of Fiscal 2026, the Company used more cash to pull ahead inventory purchases in advance of tariff enactments.
Previous 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.
Current wording
•Cash used by accrued expenses and other liabilities was $50.7 million, compared to a source of $10.1 million in the prior year period. The difference compared to the prior year comparable period is primarily due to payments for incentive compensation during Fiscal 2027.
Previous 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.
Current wording
Net cash used in investing activities for the 26 weeks ended August 1, 2026 was $66.1 million compared to a use of $60.7 million in the prior year period. Cash used in Fiscal 2027 was primarily related to capital expenditures of $64.9 million, compared to $60.6 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 13 weeks ended May 2, 2026:
Current wording
Stores opened and closed in the 26 weeks ended August 1, 2026:
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The breakdown of the year to date sales performance by reportable segment is set out in the table below:
Current report — wording carried from elsewhere
(2)Includes sales from Signet’s diamond sourcing operation.
Current report — wording carried from elsewhere
The International reportable segment’s total sales increased 7.1%, or 5.3% at constant exchange rates, to $184.1 million compared to $171.9 million in the prior year. The number of units sold increased 1.8% and AUR increased 3.6% over prior year. Same store sales increased 5.8% compared to the prior year. The increase in total sales at constant exchange rates was slightly lower than the increase in same store sales due to store closures.
Current report — wording carried from elsewhere
During the second quarter of Fiscal 2027, the carrying value of the Diamonds Direct trade name was reduced to its estimated fair value of $85 million, which resulted in the recognition of an impairment charge of approximately $19 million. The impairment charge was driven primarily by reevaluated sales growth projections which negatively affected the fair value estimates compared to previous valuations.