Signet Jewelers Limited, the world’s largest retailer of diamond jewelry, announced its results for the 13 weeks ended August 2, 2025 (second quarter[2Q] Fiscal 2026). “Our second quarter results were driven by the expansion of on-trend fashion assortment and effective promotion and pricing strategies.
Our heightened focus on Kay, Zales, and Jared fueled a combined same store sales increase of 5% at these brands. I would like to thank the team for their continued commitment to our Grow Brand Love strategy and their eìorts this quarter,” said J.K. Symancyk, Chief Executive Officer.
“We have a sharp focus on delivering holiday with the right inventory levels at key price points and the launch of new collections in our largest brands, supported by fresh marketing campaigns.” “We grew Adjusted Operating Income more than 20% in the second quarter, led by comp growth, gross margin
expansion, and cost savings related to our reorganization,” said Joan Hilson, Chief Operating and Financial Officer.
“Reflecting second quarter results, expectations for the third quarter, and current tariff landscape, we’re raising our Fiscal 2026 guidance. This updated guidance also includes share repurchases to date and assumes a measured consumer environment.”
Second Quarter Fiscal 2026 Results say, Gross margin was $591.9 million, up approximately $26 million to Q2 of FY25. Gross margin rate grew 60 basis points to 38.6%, driven by gross merchandise margin expansion and leverage on íxed costs. SG&A was $505.3 million, or 32.9% of sales, up from $498.4 million, and represents a 50 basis point reduction to Q2 of FY25 as a percentage of sales.
Operating income was $2.8 million, or 0.2% of sales, compared to an operating loss of $100.9 million, or (6.8)% of sales, in Q2 of FY25. Operating income includes approximately $80 million of non-cash impairment charges
substantially related to the Digital brands and restructuring charges. Adjusted operating income was $85.4 million, or 5.6% of sales, compared to $68.6 million, or 4.6% of sales, in Q2 of FY25.
The current quarter income tax expense was $14.2 million compared to $1.6 million in Q2 of FY25. Adjusted income tax expense was $21.4 million compared to $13.3 million in Q2 of FY25. Diluted loss per share was $0.22, up from a loss per share of $2.28 in Q2 of FY25. Diluted loss per share in the current quarter includes $2.01 of charges related to impairment and restructuring charges.
Adjusted diluted EPS was $1.61, compared to $1.25 in Q2 of FY25. Adjusted diluted EPS reflects higher adjusted operating income and lower diluted share count which was partially oìset by a higher effective tax rate.
Balance Sheet and Statement of Cash Flows.
Cash used in operating activities for Fiscal 2026 was $8 9.0 million compared to $114.4 million in the prior year. Cash and cash equivalents were $281.4 million as of quarter end, compared to $403.1 million in Q2 of FY25. Inventory ended the quarter at $2.0 billion, nearly flat to Q2 of FY25.
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