Signet Jewelers (SIG) Stock Forecast & Price Target

Signet Jewelers reported a total sales increase of 3.0% to $1.392 billion, demonstrating resilience amidst growing market challenges. The company's gross margin expanded by 130 basis points year-over-year, reaching 37.3%, significantly surpassing both consensus expectations and internal guidance, indicating effective cost management despite rising tariffs and gold costs. Additionally, the strong performance in the lab-grown diamond segment, which constituted 15% of fashion sales and doubled from the previous year's proportion, highlights a successful merchandise strategy that is increasingly appealing to consumers.

The outlook for Signet Jewelers's stock appears negative due to a disappointing Q4 comp guidance, forecasting a potential decline of 5.0% to an increase of only 0.5%, reflecting weak consumer confidence and a slowdown at the end of Q3. Additionally, the company's full-year FY26 comparable sales are projected to range from a decline of 0.75% to an increase of 1.75%, indicating ongoing challenges in revenue growth. Furthermore, an estimated $0.04 drag on earnings per share is attributed to an increased tax rate, which may further pressure profitability in the upcoming quarter.