Signet Jewelers (SIG) Stock Forecast & Price Target

Signet Jewelers Ltd has demonstrated significant growth potential, particularly in the bridal category, where both lab grown and natural diamonds contributed to an increase in average unit retail (AUR) year-over-year during the holiday period. The company anticipates a 1.1% year-over-year revenue growth, projecting topline sales of $6.758 billion in fiscal year 2026, alongside an expected 5% increase in earnings per share to $9.15, reflecting positive financial momentum. Furthermore, the substantial growth in lab grown diamonds, with a 40% year-over-year increase in the fourth quarter, highlights strong consumer demand and suggests an upward trajectory in market performance.

Signet Jewelers Ltd experienced a decline in its holiday comparable store sales, falling 2% year-over-year, which did not meet internal expectations and prompted a reduction in fourth-quarter guidance. Following already disappointing third-quarter results marked by weaker sales and gross margins, the company's overall revenue is projected to decline 6.7%, aligning closely with the lowered guidance range. Compounding these issues, a significant drop in search engine rankings resulted in decreased organic traffic, indicating potential challenges in customer engagement and sales recovery moving forward.