Signet Jewelers Ltd. posted its first same-store sales increase in three years with Q1 earnings results. The results were boosted by ecommerce momentum and improved store performance as its turnaround plan gains traction.
In its fiscal first quarter ended May 3, Signet reported same-store sales growth of 2.5% year over year. Total sales rose 2.0% to $1.54 billion, according to the retailer’s latest earnings release.
Signet’s three largest brands – Kay Jewelers, Zales, and Jared – each posted double-digit ecommerce growth during the quarter, chief financial and operating officer Joan Hilson told investors on the earnings call.
Signet Jewelers Ltd. is No. 57 in the Top 2000, Digital Commerce 360’s database ranking North America’s largest online retailers by their annual ecommerce sales. It is also the highest-ranked retailer in the database’s Jewelry category. Digital Commerce 360 projects that Signet’s online sales in 2025 will reach $1.66 billion.
Signet Jewelers first-quarter earnings
The results represent a notable turnaround for Signet, which hadn’t reported same-store sales growth since the first quarter of fiscal 2023 ended April 30, 2022. J.K. Symancyk, CEO at Signet Jewelers, credited gains in part to early successes from the company’s recently announced “Grow Brand Love” strategy, aimed at strengthening brand identities, growing core products, and expanding into new categories.
Signet’s positive results came despite ongoing tariff challenges. Symancyk said the company is actively shifting production away from China and negotiating with vendors to manage rising tariff costs within its full-year guidance.
“The team has taken several actions since April to minimize potential cost impacts and safeguard against supply chain disruption, all while continuing to protect the value proposition we deliver to our customers,” Symancyk said.
Major brands and digital channels fuel Q1 growth
Kay Jewelers, Zales and Jared drove Signet’s first-quarter growth, each achieving double-digit ecommerce gains and increasing sales per square foot by nearly 5%, according to Hilson.
Hilson attributed the improved performance largely to strong customer response to new product assortments. New product sales penetration rose eight percentage points year over year, even as inventory levels remained stable, she said.
Symancyk noted Signet saw positive comparable-store sales each month of the quarter, a trend continuing into May. Fashion products within the key gifting price range of $250 to $500 performed especially well. The company also saw substantial growth in lab-grown diamond (LGD) jewelry sales, which rose 60% due to expanded assortments and higher average unit retail prices.
“We continue to see significant runway for LGD fashion growth,” Symancyk said.
Signet remains focused on enhancing its digital portfolio, including online-only brands Blue Nile and JamesAllen.com. Blue Nile achieved positive comparable sales in Q1, in line with the company’s overall growth, Hilson said. However, James Allen negatively impacted overall comparable sales by 140 basis points due to low brand awareness and positioning challenges in the custom engagement ring segment.
“We are taking aggressive action to improve performance, including a refined marketing strategy and significantly higher levels of finished product to better meet the timing requirements of customers while we continue to take a deeper look at the brand,” Hilson said.
Tariff mitigation ahead of the holiday season
Symancyk also addressed tariff impacts on the call, noting most of Signet’s products are imported finished goods, with about half sourced from India and a high single-digit percentage from China.
To manage elevated tariff rates, Signet is diversifying sourcing and optimizing production schedules. Symancyk said Signet expects to shift most Chinese production to other regions before the critical holiday shopping period.
“We believe that we can navigate tariffs as they stand today within our full year guidance through a combination of vendor negotiations, value engineering of new and existing styles as well as promotion and life cycle management,” Symancyk said. “The situation obviously remains fluid, and we will provide updates as appropriate.”
Store optimization with greater ecommerce emphasis
Signet is also actively reshaping its physical store portfolio, shifting away from traditional malls toward digital channels and store locations better aligned with individual brand strategies, Hilson explained.
The company reduced its North American mall-based revenue to approximately 35% over the past year and aims to further lower that share to around 30% in the coming years.
During Q1, Signet closed 14 underperforming stores and renovated about 40 locations. It plans approximately 100 total store closures this fiscal year, primarily in malls with expiring leases, and anticipates renovating 160 additional stores by year-end, Hilson stated.
Hilson outlined the company’s four-part real estate plan:
- Close up to 150 underperforming stores over the next two years.
- Shift sales from closed locations to nearby stores and ecommerce.
- Reposition up to 200 high-performing stores currently located in declining malls.
- Continue renovations and updates across existing stores.
Signet raises fiscal 2026 guidance
Following its strong Q1 performance, Signet raised the low end of its fiscal 2026 sales guidance.
The retailer now projects total annual sales between $6.57 billion and $6.80 billion, up from the previous range of $6.53 billion to $6.80 billion. Full-year same-store sales are forecast to range from -2.0% to +1.5%, compared to a prior estimate of -2.5% to +1.5%.
For the second fiscal quarter, Signet anticipates total sales of $1.47 billion to $1.51 billion and same-store sales between -1.5% and +1.0%.
The company said the updated guidance reflects a cautious consumer spending environment with flexibility for spending variability during the year. It also assumes current tariff levels but excludes potential new or reciprocal tariffs.
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