Signet Jewelers (SIG) Stock Forecast & Price Target

Signet Jewelers reported a 3.0% increase in total sales to $1.392 billion, alongside a 7.0% year-over-year rise in average unit retail prices, indicating strong consumer demand. The company demonstrated effective cost management, achieving an expansion of its gross margin by 130 basis points to 37.3%, which surpassed consensus expectations, even amid rising tariffs and gold costs. Furthermore, the growth of lab-grown diamonds significantly contributed to the fashion segment, with these products comprising 15% of fashion sales, thereby enhancing the company's product mix and future revenue potential.

Signet Jewelers Ltd is experiencing a negative outlook due to several key financial indicators, primarily highlighted by below-consensus guidance for the fourth quarter, projecting comparable sales declines of 5.0% to increases of just 0.5%. This disappointing forecast is attributed to weak consumer confidence and a slowdown observed at the end of the third quarter, compounded by an anticipated $0.04 reduction in earnings per share due to a higher tax rate than previously expected. Additionally, the broader fiscal year 2026 comparable sales expectations indicate a marginal range of decline between 0.75% and 1.75%, reflecting ongoing headwinds across its revenue-generating segments.