Signet Jewelers Reports Second Quarter Fiscal 2026 Results
Q2 Results Ahead of Guidance
Raises FY26 Guidance
“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
“We grew Adjusted Operating Income more than
Second Quarter Fiscal 2026 Highlights:
-
Sales of
$1.5 billion $44.1 million 3.0% to Q2 of FY25. -
Same store sales ("SSS")(1) up
2.0% to Q2 of FY25. -
Merchandise Average Unit Retail ("AUR")(2) was up
9% , including a4% increase in Bridal and a12% increase in Fashion. -
Operating income of
$2.8 million $100.9 million -
Adjusted operating income(3) of
$85.4 million $68.6 million -
Diluted loss per share of
$0.22 $2.28 $2.01 -
Adjusted diluted earnings per share ("EPS")(3) of
$1.61 $1.25
(1) |
Same store sales include physical stores and e-commerce sales. |
(2) |
AUR reflects merchandise sales on a constant currency basis divided by units. |
(3) |
See Non-GAAP Financial Measures section below. |
(in millions, except per share amounts) |
Q2 Fiscal 2026 |
|
Q2 Fiscal 2025 |
|
YTD Fiscal 2026 |
|
YTD Fiscal 2025 |
||||||||
Sales |
$ |
1,535.1 |
|
|
$ |
1,491.0 |
|
|
$ |
3,076.7 |
|
|
$ |
3,001.8 |
|
SSS % change (1) |
|
2.0 |
% |
|
|
(3.4 |
)% |
|
|
2.2 |
% |
|
|
(6.2 |
)% |
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
$ |
2.8 |
|
|
$ |
(100.9 |
) |
|
$ |
50.9 |
|
|
$ |
(51.1 |
) |
|
0.2 |
% |
|
|
(6.8 |
)% |
|
|
1.7 |
% |
|
|
(1.7 |
)% |
|
Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS (loss per share) |
$ |
(0.22 |
) |
|
$ |
(2.28 |
) |
|
$ |
0.58 |
|
|
$ |
(3.17 |
) |
Adjusted (2) |
|
|
|
|
|
|
|
||||||||
Adjusted operating income |
$ |
85.4 |
|
|
$ |
68.6 |
|
|
$ |
155.7 |
|
|
$ |
126.4 |
|
Adjusted operating margin |
|
5.6 |
% |
|
|
4.6 |
% |
|
|
5.1 |
% |
|
|
4.2 |
% |
Adjusted diluted EPS |
$ |
1.61 |
|
|
$ |
1.25 |
|
|
$ |
2.77 |
|
|
$ |
2.35 |
|
(1) |
Same store sales include physical stores and e-commerce sales. |
(2) |
See Non-GAAP Financial Measures section below. |
Second Quarter Fiscal 2026 Results:
Gross margin was
SG&A was
Operating income was
The current quarter income tax expense was
Diluted loss per share was
Balance Sheet and Statement of Cash Flows:
Cash used in operating activities for Fiscal 2026 was
Capital Returns to Shareholders:
In the second quarter, Signet repurchased approximately 446,000 common shares for approximately
Signet's Board of Directors has declared a quarterly cash dividend on common shares of
Third Quarter and Full Year Fiscal 2026 Guidance Range:
|
Third Quarter |
Total sales |
|
Same store sales |
( |
Adjusted operating income (1) |
|
Adjusted EBITDA (1) |
|
(1) |
See description of non-GAAP financial measures below. |
Forecasted adjusted operating income and adjusted EBITDA exclude potential non-recurring charges, such as restructuring and reorganizational charges or asset impairments. However, given the potential impact of non-recurring charges to the GAAP operating income, we cannot provide forecasted GAAP operating income or the probable significance of such items without unreasonable efforts. As such, we do not present a reconciliation of forecasted adjusted operating income or adjusted EBITDA to corresponding forecasted GAAP amounts. |
|
Updated Fiscal 2026 |
|
Previous Fiscal 2026 |
Total sales |
|
|
|
Same store sales |
( |
|
( |
Adjusted operating income (1) |
|
|
|
Adjusted EBITDA (1) |
|
|
|
Adjusted diluted EPS (1) |
|
|
|
(1) |
See description of non-GAAP financial measures below. |
Forecasted adjusted operating income, adjusted EBITDA and adjusted diluted EPS exclude potential non-recurring charges, such as restructuring and reorganizational charges or asset impairments. However, given the potential impact of non-recurring charges to the GAAP operating income and diluted EPS, we cannot provide forecasted GAAP operating income or diluted EPS or the probable significance of such items without unreasonable efforts. As such, we do not present a reconciliation of forecasted adjusted operating income, adjusted EBITDA and adjusted diluted EPS to corresponding forecasted GAAP amounts. |
The Company's Fiscal 2026 guidance range is based on the following assumptions:
- Total sales considers a measured consumer environment, providing for variability in consumer spending over the holiday season.
-
Based on current reciprocal tariffs and:
-
If
India's combined tariff rate, inclusive of the Russian trade penalty, remains in effect for the balance of the year, the Company expects adjusted operating income in the middle to lower end of the range. -
If
India's Russian trade penalty is removed in the next two months, the Company expects adjusted operating income in the upper half of the range.
-
If
-
Planned capital expenditures of approximately
$145 $160 million -
Net square footage decrease of approximately
1% for the year. -
Annual tax rate of
23% to25% , including the non-cash impact of approximately4% for the CITA2023Bermuda tax impact previously disclosed; excludes potential discrete items. - Diluted EPS for Fiscal 2026 excludes any potential further share repurchases subsequent to today.
Our Purpose and Sustainability:
This year marks Signet's 27th anniversary of supporting the lifesaving mission of St. Jude Children's Research Hospital®: Finding cures. Saving children,® which is one of the Hospital’s longest-running partnerships. The company recently launched its annual Holiday Campaign as part of St. Jude Thanks and Giving®, featuring plush bears and puppies—named Capri and Rosie this year in honor of a St. Jude patient ambassador and her furry companion. Customers can purchase these plush toys at KAY and Jared locations, and they can also donate at the register or online at these brands, Zales and Banter. The campaign engages Signet team members and customers of all ages, and its proceeds will build on the
Conference Call:
A conference call is scheduled for September 2, 2025 at 8:30 a.m. ET and a simultaneous audio webcast is available at www.signetjewelers.com.
The call details are:
Toll Free –
International All Other Locations: (Toll - Local -
Conference ID 85359
Registration for the listen-only webcast is available at the following link:
https://events.q4inc.com/attendee/400601938
A replay and transcript of the call will be posted on Signet's website as soon as they are available and will be accessible for one year.
About Signet and Safe Harbor Statement:
Signet Jewelers Limited is the world's largest retailer of diamond jewelry. As a Purpose-driven and sustainability-focused company, Signet is a participant in the United Nations Global Compact and adheres to its principles-based approach to responsible business. Signet operates approximately 2,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones. Further information on Signet is available at www.signetjewelers.com. See also www.kay.com, www.zales.com, www.jared.com, www.banter.com, www.diamondsdirect.com, www.bluenile.com, www.jamesallen.com, www.rocksbox.com, www.peoplesjewellers.com, www.hsamuel.co.uk, www.ernestjones.co.uk.
This release contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management's beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of the words "guidance," "expects," "continue," "intends," "anticipates," "enhance," "estimates," "predicts," "believes," "should," "potential," "may," "preliminary," "forecast," "objective," "opportunity," "plan," "strategy," "target," or “will” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties which could cause the actual results to not be realized, including, but not limited to: executing or optimizing major business or strategic initiatives, such as expansion of the services business or realizing the benefits of our restructuring plans or transformation strategies, including those that the Company may develop in the future; attracting and retaining key executive talent during periods of leadership transition, such as our recent appointment of a new CEO and other recent changes in senior leadership from the reorganization under our Grow Brand Love strategy; the failure to adequately mitigate the impact of existing tariffs and/or the imposition of additional duties, tariffs, taxes and other charges or other barriers to trade or impacts from trade relations; difficulty or delay in executing or integrating an acquisition; the impact of the conflicts in the
For a discussion of these and other risks and uncertainties which could cause actual results to differ materially from those expressed in any forward looking statement, see the “Risk Factors” and “Forward-Looking Statements” sections of Signet’s Fiscal 2025 Annual Report on Form 10-K filed with the SEC on March 19, 2025 and quarterly reports on Form 10-Q and the “Safe Harbor Statements” in current reports on Form 8-K filed with the SEC. Signet undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||||||
(in millions, except per share amounts) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||||||
Sales |
$ |
1,535.1 |
|
|
$ |
1,491.0 |
|
|
$ |
3,076.7 |
|
|
$ |
3,001.8 |
|
Cost of sales |
|
(943.2 |
) |
|
|
(924.7 |
) |
|
|
(1,886.0 |
) |
|
|
(1,863.1 |
) |
Gross margin |
|
591.9 |
|
|
|
566.3 |
|
|
|
1,190.7 |
|
|
|
1,138.7 |
|
Selling, general and administrative expenses |
|
(505.3 |
) |
|
|
(498.4 |
) |
|
|
(1,031.3 |
) |
|
|
(1,013.8 |
) |
Asset impairments, net |
|
(80.2 |
) |
|
|
(166.2 |
) |
|
|
(83.4 |
) |
|
|
(168.6 |
) |
Other operating expense, net |
|
(3.6 |
) |
|
|
(2.6 |
) |
|
|
(25.1 |
) |
|
|
(7.4 |
) |
Operating income (loss) |
|
2.8 |
|
|
|
(100.9 |
) |
|
|
50.9 |
|
|
|
(51.1 |
) |
Interest (expense) income, net |
|
(0.1 |
) |
|
|
2.4 |
|
|
|
0.7 |
|
|
|
11.0 |
|
Other non-operating income (expense), net |
|
2.4 |
|
|
|
1.6 |
|
|
|
(0.9 |
) |
|
|
1.8 |
|
Income (loss) before income taxes |
|
5.1 |
|
|
|
(96.9 |
) |
|
|
50.7 |
|
|
|
(38.3 |
) |
Income taxes |
|
(14.2 |
) |
|
|
(1.6 |
) |
|
|
(26.3 |
) |
|
|
(8.1 |
) |
Net (loss) income |
$ |
(9.1 |
) |
|
$ |
(98.5 |
) |
|
$ |
24.4 |
|
|
$ |
(46.4 |
) |
Dividends on redeemable convertible preferred shares |
|
— |
|
|
|
(3.0 |
) |
|
|
— |
|
|
|
(95.2 |
) |
Net (loss) income attributable to common shareholders |
$ |
(9.1 |
) |
|
$ |
(101.5 |
) |
|
$ |
24.4 |
|
|
$ |
(141.6 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.22 |
) |
|
$ |
(2.28 |
) |
|
$ |
0.58 |
|
|
$ |
(3.17 |
) |
Diluted |
$ |
(0.22 |
) |
|
$ |
(2.28 |
) |
|
$ |
0.58 |
|
|
$ |
(3.17 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
41.1 |
|
|
|
44.5 |
|
|
|
41.8 |
|
|
|
44.6 |
|
Diluted |
|
41.1 |
|
|
|
44.5 |
|
|
|
42.0 |
|
|
|
44.6 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
$ |
0.32 |
|
|
$ |
0.29 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||||||
(in millions) |
August 2, 2025 |
|
February 1, 2025 |
|
August 3, 2024 |
||||||
Assets |
|
|
|
|
|
||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
281.4 |
|
|
$ |
604.0 |
|
|
$ |
403.1 |
|
Inventories |
|
1,986.6 |
|
|
|
1,937.3 |
|
|
|
1,977.2 |
|
Income taxes |
|
29.7 |
|
|
|
14.3 |
|
|
|
9.2 |
|
Other current assets |
|
166.8 |
|
|
|
156.6 |
|
|
|
186.2 |
|
Total current assets |
|
2,464.5 |
|
|
|
2,712.2 |
|
|
|
2,575.7 |
|
Non-current assets: |
|
|
|
|
|
||||||
Property, plant and equipment, net |
|
477.7 |
|
|
|
506.5 |
|
|
|
470.5 |
|
Operating lease right-of-use assets |
|
1,102.5 |
|
|
|
1,102.4 |
|
|
|
956.2 |
|
Goodwill |
|
428.4 |
|
|
|
482.0 |
|
|
|
631.5 |
|
Intangible assets, net |
|
291.5 |
|
|
|
307.2 |
|
|
|
358.9 |
|
Other assets |
|
286.1 |
|
|
|
314.8 |
|
|
|
320.3 |
|
Deferred tax assets |
|
292.1 |
|
|
|
301.5 |
|
|
|
300.7 |
|
Total assets |
$ |
5,342.8 |
|
|
$ |
5,726.6 |
|
|
$ |
5,613.8 |
|
Liabilities, Redeemable convertible preferred shares, and Shareholders’ equity |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Accounts payable |
$ |
512.7 |
|
|
$ |
767.0 |
|
|
$ |
547.6 |
|
Accrued expenses and other current liabilities |
|
388.4 |
|
|
|
366.8 |
|
|
|
363.1 |
|
Deferred revenue |
|
360.7 |
|
|
|
362.5 |
|
|
|
347.8 |
|
Operating lease liabilities |
|
290.4 |
|
|
|
279.9 |
|
|
|
250.9 |
|
Income taxes |
|
49.0 |
|
|
|
55.3 |
|
|
|
17.6 |
|
Total current liabilities |
|
1,601.2 |
|
|
|
1,831.5 |
|
|
|
1,527.0 |
|
Non-current liabilities: |
|
|
|
|
|
||||||
Operating lease liabilities |
|
887.3 |
|
|
|
900.0 |
|
|
|
793.5 |
|
Other liabilities |
|
76.9 |
|
|
|
85.1 |
|
|
|
90.5 |
|
Deferred revenue |
|
885.5 |
|
|
|
885.1 |
|
|
|
874.0 |
|
Deferred tax liabilities |
|
163.6 |
|
|
|
173.1 |
|
|
|
188.5 |
|
Total liabilities |
|
3,614.5 |
|
|
|
3,874.8 |
|
|
|
3,473.5 |
|
Commitments and contingencies |
|
|
|
|
|
||||||
Redeemable Series A Convertible Preference Shares |
|
— |
|
|
|
— |
|
|
|
223.1 |
|
Shareholders’ equity: |
|
|
|
|
|
||||||
Common shares |
|
12.6 |
|
|
|
12.6 |
|
|
|
12.6 |
|
Additional paid-in capital |
|
110.0 |
|
|
|
120.1 |
|
|
|
165.2 |
|
Other reserves |
|
0.4 |
|
|
|
0.4 |
|
|
|
0.4 |
|
Treasury shares at cost |
|
(1,882.4 |
) |
|
|
(1,749.3 |
) |
|
|
(1,659.7 |
) |
Retained earnings |
|
3,743.1 |
|
|
|
3,745.5 |
|
|
|
3,664.6 |
|
Accumulated other comprehensive loss |
|
(255.4 |
) |
|
|
(277.5 |
) |
|
|
(265.9 |
) |
Total shareholders’ equity |
|
1,728.3 |
|
|
|
1,851.8 |
|
|
|
1,917.2 |
|
Total liabilities, redeemable convertible preferred shares and shareholders’ equity |
$ |
5,342.8 |
|
|
$ |
5,726.6 |
|
|
$ |
5,613.8 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
26 weeks ended |
||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
||||
Operating activities |
|
|
|
||||
Net income (loss) |
$ |
24.4 |
|
|
$ |
(46.4 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
74.0 |
|
|
|
74.5 |
|
Amortization of unfavorable contracts |
|
(0.9 |
) |
|
|
(0.9 |
) |
Share-based compensation |
|
13.7 |
|
|
|
18.3 |
|
Deferred taxation |
|
2.0 |
|
|
|
(13.1 |
) |
Asset impairments, net |
|
83.4 |
|
|
|
168.6 |
|
Other non-cash movements |
|
3.5 |
|
|
|
3.1 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Inventories |
|
(35.9 |
) |
|
|
(41.4 |
) |
Other assets |
|
14.0 |
|
|
|
33.2 |
|
Accounts payable |
|
(248.5 |
) |
|
|
(193.3 |
) |
Accrued expenses and other liabilities |
|
10.1 |
|
|
|
(36.1 |
) |
Change in operating lease assets and liabilities |
|
(3.8 |
) |
|
|
(6.8 |
) |
Deferred revenue |
|
(3.1 |
) |
|
|
(22.1 |
) |
Income tax receivable and payable |
|
(21.9 |
) |
|
|
(52.0 |
) |
Net cash used in operating activities |
|
(89.0 |
) |
|
|
(114.4 |
) |
Investing activities |
|
|
|
||||
Capital expenditures |
|
(60.6 |
) |
|
|
(51.3 |
) |
Other investing activities, net |
|
(0.1 |
) |
|
|
(5.9 |
) |
Net cash used in investing activities |
|
(60.7 |
) |
|
|
(57.2 |
) |
Financing activities |
|
|
|
||||
Dividends paid on common shares |
|
(25.8 |
) |
|
|
(23.1 |
) |
Dividends paid on redeemable convertible preferred shares |
|
— |
|
|
|
(14.4 |
) |
Repurchase of common shares |
|
(149.7 |
) |
|
|
(47.2 |
) |
Repurchase of redeemable convertible preferred shares |
|
— |
|
|
|
(541.0 |
) |
Repayment of Senior Notes |
|
— |
|
|
|
(147.8 |
) |
Other financing activities, net |
|
(7.1 |
) |
|
|
(28.4 |
) |
Net cash used in financing activities |
|
(182.6 |
) |
|
|
(801.9 |
) |
Cash and cash equivalents at beginning of period |
|
604.0 |
|
|
|
1,378.7 |
|
Decrease in cash and cash equivalents |
|
(332.3 |
) |
|
|
(973.5 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
9.7 |
|
|
|
(2.1 |
) |
Cash and cash equivalents at end of period |
$ |
281.4 |
|
|
$ |
403.1 |
|
Reportable Segment Information:
|
|||||||||||||||||
|
Change from previous year |
|
|
||||||||||||||
Second Quarter of Fiscal 2026 |
Same store sales |
|
Non-same store sales, net |
|
Total sales at constant exchange rate (1) |
|
Exchange translation impact |
|
Total sales as reported |
|
Total sales (in millions) |
||||||
|
2.0 |
% |
|
0.1 |
% |
|
2.1 |
% |
|
— |
% |
|
2.1 |
% |
|
$ |
1,426.7 |
International segment |
0.8 |
% |
|
(0.4 |
)% |
|
0.4 |
% |
|
5.7 |
% |
|
6.1 |
% |
|
$ |
91.8 |
Other segment (2) |
nm |
|
nm |
|
nm |
|
nm |
|
nm |
|
$ |
16.6 |
|||||
Signet |
2.0 |
% |
|
0.6 |
% |
|
2.6 |
% |
|
0.4 |
% |
|
3.0 |
% |
|
$ |
1,535.1 |
(1) |
See Non-GAAP Financial Measures section below. |
(2) |
Includes sales from Signet’s diamond sourcing operation. |
nm |
Not meaningful. |
Operating income and adjusted operating income: |
||||||||||||||
|
|
Second quarter Fiscal 2026 |
|
Second quarter Fiscal 2025 |
||||||||||
Operating income (loss) in millions |
|
$ |
|
% of segment sales |
|
$ |
|
% of segment sales |
||||||
|
|
$ |
23.0 |
|
|
1.6 |
% |
|
$ |
(77.2 |
) |
|
(5.5 |
)% |
International segment |
|
|
(2.2 |
) |
|
(2.4 |
)% |
|
|
(4.2 |
) |
|
(4.9 |
)% |
Other segment |
|
|
(0.4 |
) |
|
nm |
|
|
(2.6 |
) |
|
nm |
||
Corporate and unallocated expenses |
|
|
(17.6 |
) |
|
nm |
|
|
(16.9 |
) |
|
nm |
||
Total operating income |
|
$ |
2.8 |
|
|
0.2 |
% |
|
$ |
(100.9 |
) |
|
(6.8 |
)% |
|
|
Second quarter Fiscal 2026 |
|
Second quarter Fiscal 2025 |
||||||||||
Adjusted operating income (loss) in millions (1) |
|
$ |
|
% of segment sales |
|
$ |
|
% of segment sales |
||||||
|
|
$ |
103.8 |
|
|
7.3 |
% |
|
$ |
90.1 |
|
|
6.4 |
% |
International segment |
|
|
(2.1 |
) |
|
(2.3 |
)% |
|
|
(2.0 |
) |
|
(2.3 |
)% |
Other segment |
|
|
(0.4 |
) |
|
nm |
|
|
(2.6 |
) |
|
nm |
||
Corporate and unallocated expenses |
|
|
(15.9 |
) |
|
nm |
|
|
(16.9 |
) |
|
nm |
||
Total adjusted operating income |
|
$ |
85.4 |
|
|
5.6 |
% |
|
$ |
68.6 |
|
|
4.6 |
% |
(1) |
See Non-GAAP Financial Measures section below. |
nm |
Not meaningful. |
Real Estate Portfolio: |
||||||||
Signet has a diversified real estate portfolio. On August 2, 2025, Signet operated 2,623 stores totaling 4.0 million square feet of selling space. Compared to year-end Fiscal 2025, store count decreased by 19 and square feet of selling space decreased |
||||||||
Store count by segment |
February 1, 2025 |
|
Openings |
|
Closures |
|
August 2, 2025 |
|
|
2,379 |
|
8 |
|
(23 |
) |
|
2,364 |
International segment |
263 |
|
— |
|
(4 |
) |
|
259 |
Signet |
2,642 |
|
8 |
|
(27 |
) |
|
2,623 |
Non-GAAP Financial Measures
In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial measures on a non-GAAP basis. The Company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating historical trends and current period performance and liquidity. For these reasons, internal management reporting also includes these non-GAAP measures. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this earnings release and the Company’s condensed consolidated financial statements and other publicly filed reports. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.
The Company reports the following non-GAAP financial measures: sales changes on a constant currency basis, free cash flow, adjusted operating income, adjusted operating margin, adjusted diluted earnings per share ("EPS") and adjusted earnings before interest, income taxes, depreciation and amortization (“adjusted EBITDA”).
The Company provides the year-over-year change in total sales excluding the impact of foreign currency fluctuations to provide transparency to performance and enhance investors’ understanding of underlying business trends. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year sales in local currency.
Free cash flow is a non-GAAP measure defined as the net cash used in operating activities less capital expenditures. Management considers this metric to be helpful in understanding how the business is generating cash from its operating and investing activities that can be used to meet the financing needs of the business. Free cash flow is an indicator frequently used by management to evaluate its overall liquidity needs and determine appropriate capital allocation strategies. Free cash flow does not represent the residual cash flow available for discretionary purposes.
Adjusted operating income is a non-GAAP measure defined as operating income excluding the impact of certain items which management believes are not necessarily reflective of normal operational performance during a period. Management finds the information useful when analyzing operating results to appropriately evaluate the performance of the business without the impact of these certain items. Management believes the consideration of measures that exclude such items can assist in the comparison of operational performance in different periods which may or may not include such items. Management also utilizes adjusted operating margin, defined as adjusted operating income as a percentage of total sales, to further evaluate the effectiveness and efficiency of the Company’s flexible operating model.
Adjusted diluted EPS is a non-GAAP measure defined as diluted EPS excluding the impact of certain items which management believes are not necessarily reflective of normal operational performance during a period. Management finds the information useful when analyzing financial results in order to appropriately evaluate the performance of the business without the impact of these certain items. In particular, management believes the consideration of measures that exclude such items can assist in the comparison of performance in different periods which may or may not include such items. The Company estimates the tax effect of all non-GAAP adjustments by applying a statutory tax rate to each item. The income tax items are used to estimate adjusted income tax expense and represent the discrete amount that affected the diluted EPS during the period.
Adjusted EBITDA is a non-GAAP measure, defined as earnings before interest, income taxes, depreciation and amortization, share-based compensation expense, non-operating expense, net and certain non-GAAP accounting adjustments. Adjusted EBITDA is considered an important indicator of operating performance as it excludes the effects of financing and investing activities by eliminating the effects of interest, depreciation and amortization costs and certain accounting adjustments.
The following information provides reconciliations of the most comparable financial measures calculated and presented in accordance with GAAP to presented non-GAAP financial measures.
Free cash flow |
|||||||
|
26 weeks ended |
||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
||||
Net cash used in operating activities |
$ |
(89.0 |
) |
|
$ |
(114.4 |
) |
Capital expenditures |
|
(60.6 |
) |
|
|
(51.3 |
) |
Free cash flow |
$ |
(149.6 |
) |
|
$ |
(165.7 |
) |
Adjusted operating income |
|||||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||||
Total operating income (loss) |
$ |
2.8 |
|
$ |
(100.9 |
) |
|
$ |
50.9 |
|
$ |
(51.1 |
) |
Asset impairments (1) |
|
79.8 |
|
|
166.2 |
|
|
|
83.0 |
|
|
168.1 |
|
Restructuring and related charges (2) |
|
2.8 |
|
|
1.2 |
|
|
|
21.8 |
|
|
5.8 |
|
Loss on divestitures, net (3) |
|
— |
|
|
1.2 |
|
|
|
— |
|
|
2.5 |
|
Integration-related expenses (4) |
|
— |
|
|
0.9 |
|
|
|
— |
|
|
1.1 |
|
Total adjusted operating income |
$ |
85.4 |
|
$ |
68.6 |
|
|
$ |
155.7 |
|
$ |
126.4 |
|
|
||||||||||||
|
13 weeks ended |
|
26 weeks ended |
|||||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
|||||
|
$ |
23.0 |
|
$ |
(77.2 |
) |
|
$ |
106.0 |
|
$ |
6.0 |
Asset impairments (1) |
|
79.8 |
|
|
166.2 |
|
|
|
83.0 |
|
|
167.4 |
Restructuring and related charges (2) |
|
1.0 |
|
|
0.2 |
|
|
|
11.9 |
|
|
0.8 |
Integration-related expenses (4) |
|
— |
|
|
0.9 |
|
|
|
— |
|
|
1.1 |
|
$ |
103.8 |
|
$ |
90.1 |
|
|
$ |
200.9 |
|
$ |
175.3 |
International segment adjusted operating loss |
|||||||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||||||
International segment operating loss |
$ |
(2.2 |
) |
|
$ |
(4.2 |
) |
|
$ |
(9.2 |
) |
|
$ |
(17.2 |
) |
Restructuring and related charges (2) |
|
0.1 |
|
|
|
1.0 |
|
|
|
0.1 |
|
|
|
5.0 |
|
Asset impairments (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Loss on divestitures, net (3) |
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
2.5 |
|
International segment adjusted operating loss |
$ |
(2.1 |
) |
|
$ |
(2.0 |
) |
|
$ |
(9.1 |
) |
|
$ |
(9.0 |
) |
Corporate and unallocated expenses adjusted operating loss |
|||||||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||||||
Corporate and unallocated expenses operating loss |
$ |
(17.6 |
) |
|
$ |
(16.9 |
) |
|
$ |
(41.6 |
) |
|
$ |
(34.2 |
) |
Restructuring and related charges (2) |
|
1.7 |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
Corporate and unallocated expenses adjusted operating loss |
$ |
(15.9 |
) |
|
$ |
(16.9 |
) |
|
$ |
(31.8 |
) |
|
$ |
(34.2 |
) |
Adjusted income tax provision |
|||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||
Income tax expense |
$ |
14.2 |
|
$ |
1.6 |
|
$ |
26.3 |
|
$ |
8.1 |
Asset impairments (1) |
|
6.5 |
|
|
10.8 |
|
|
7.3 |
|
|
11.3 |
Restructuring and related charges (2) |
|
0.7 |
|
|
0.4 |
|
|
5.4 |
|
|
1.5 |
Loss on divestitures, net (3) |
|
— |
|
|
0.3 |
|
|
— |
|
|
0.6 |
Integration-related expenses (4) |
|
— |
|
|
0.2 |
|
|
— |
|
|
0.2 |
Adjusted income tax expense |
$ |
21.4 |
|
$ |
13.3 |
|
$ |
39.0 |
|
$ |
21.7 |
Adjusted effective tax rate |
|||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||
|
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||
Effective tax rate |
278.4 |
% |
|
(1.7 |
)% |
|
51.9 |
% |
|
(21.1 |
)% |
Asset impairments (1) |
(229.3 |
)% |
|
18.5 |
% |
|
(15.4 |
)% |
|
30.5 |
% |
Restructuring and related charges (2) |
(24.7 |
)% |
|
0.7 |
% |
|
(11.4 |
)% |
|
4.1 |
% |
Loss on divestitures, net (3) |
— |
% |
|
0.5 |
% |
|
— |
% |
|
1.6 |
% |
Integration-related expenses (4) |
— |
% |
|
0.3 |
% |
|
— |
% |
|
0.5 |
% |
Adjusted effective tax rate |
24.4 |
% |
|
18.3 |
% |
|
25.1 |
% |
|
15.6 |
% |
Adjusted diluted EPS |
|||||||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||||||
|
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||||||
Diluted EPS (loss per share) |
$ |
(0.22 |
) |
|
$ |
(2.28 |
) |
|
$ |
0.58 |
|
|
$ |
(3.17 |
) |
Asset impairments (1) |
|
1.94 |
|
|
|
3.73 |
|
|
|
1.97 |
|
|
|
3.77 |
|
Restructuring and related charges (2) |
|
0.07 |
|
|
|
0.03 |
|
|
|
0.52 |
|
|
|
0.13 |
|
Loss on divestitures, net (3) |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.06 |
|
Integration-related expenses (4) |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
Tax impact of above items |
|
(0.18 |
) |
|
|
(0.26 |
) |
|
|
(0.30 |
) |
|
|
(0.30 |
) |
Deemed dividend on redemption of Preferred Shares (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.91 |
|
Dilution effect (6) |
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.07 |
) |
Adjusted diluted EPS |
$ |
1.61 |
|
|
$ |
1.25 |
|
|
$ |
2.77 |
|
|
$ |
2.35 |
|
Adjusted EBITDA |
|||||||||||||||
|
13 weeks ended |
|
26 weeks ended |
||||||||||||
(in millions) |
August 2, 2025 |
|
August 3, 2024 |
|
August 2, 2025 |
|
August 3, 2024 |
||||||||
Net (loss) income |
$ |
(9.1 |
) |
|
$ |
(98.5 |
) |
|
$ |
24.4 |
|
|
$ |
(46.4 |
) |
Income taxes |
|
14.2 |
|
|
|
1.6 |
|
|
|
26.3 |
|
|
|
8.1 |
|
Interest expense (income), net |
|
0.1 |
|
|
|
(2.4 |
) |
|
|
(0.7 |
) |
|
|
(11.0 |
) |
Depreciation and amortization |
|
37.0 |
|
|
|
37.9 |
|
|
|
74.0 |
|
|
|
74.5 |
|
Amortization of unfavorable contracts |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.9 |
) |
|
|
(0.9 |
) |
Other non-operating (income) expense, net |
|
(2.4 |
) |
|
|
(1.6 |
) |
|
|
0.9 |
|
|
|
(1.8 |
) |
Share-based compensation |
|
6.7 |
|
|
|
10.7 |
|
|
|
13.7 |
|
|
|
18.3 |
|
Other accounting adjustments (7) |
|
82.6 |
|
|
|
169.5 |
|
|
|
104.8 |
|
|
|
177.5 |
|
Adjusted EBITDA |
$ |
128.7 |
|
|
$ |
116.8 |
|
|
$ |
242.5 |
|
|
$ |
218.3 |
|
Footnotes to Non-GAAP Reconciliation Tables |
|
(1) |
Fiscal 2026 and Fiscal 2025 asset impairment charges related primarily to goodwill and indefinite-lived intangible assets. |
(2) |
Fiscal 2026 restructuring and related charges were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Fiscal 2025 restructuring charges were incurred primarily as a result of the Company’s rationalization of its store footprint and reorganization of certain centralized functions. |
(3) |
Includes net losses from the previously announced divestiture of the |
(4) |
Fiscal 2025 includes severance and retention expenses related to the integration of Blue Nile which were recorded to SG&A. |
(5) |
The Company recorded a deemed dividend to net (loss) income attributable to common shareholders of |
(6) |
Adjusted diluted EPS for the 13 and 26 weeks ended August 3, 2024 was calculated using 44.9 million and 47.9 million diluted weighted average common shares outstanding, respectively. The additional dilutive shares were excluded from the calculation of GAAP diluted EPS as their effect was antidilutive. |
(7) |
Other accounting adjustments are inclusive of those items described within footnotes 1 through 4 above. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250902669611/en/
Investors:
Rob Ballew
Senior Vice President, Investor Relations & Capital Markets
robert.ballew@signetjewelers.com
or
investorrelations@signetjewelers.com
Media:
Colleen Rooney
Chief Corporate Affairs & Sustainability Officer
+1-330-668-5932
colleen.rooney@signetjewelers.com
Source: Signet Jewelers Limited
