Signet Jewelers (SIG) Stock Forecast & Price Target

Signet Jewelers Ltd reported a 3.0% increase in total sales, reaching $1.392 billion, with average unit retail prices (AURs) rising 7.0% year-over-year, demonstrating strong consumer demand. The company's gross margin saw significant expansion, growing by 130 basis points year-over-year to 37.3%, outperforming consensus expectations and despite challenges such as tariffs and rising gold costs. Additionally, the increasing contribution of lab-grown diamonds to fashion sales at 15%, which has doubled year-over-year, indicates a successful adaptation to market trends and consumer preferences.

Signet Jewelers Ltd has provided below-consensus guidance for Q4, indicating a same-store sales comp range decline of 5.0% to an increase of just 0.5%, attributed to weak consumer confidence and a slowdown observed at the end of Q3. Additionally, the company's fourth-quarter earnings per share (EPS) expectations have been negatively impacted by an estimated $0.04 drag from a higher tax rate compared to prior consensus. Furthermore, for FY26, the anticipated comp range is projected to be between a decline of 0.75% and an increase of only 1.75%, signaling ongoing challenges in revenue performance.