SIG - Earnings call transcript Q3 2025 | Signet Jewelers Limited

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Operator

Good morning, and welcome to the Signet Jewelers Third Quarter Fiscal 2025 Earnings Call. [Operator Instructions] Please note this event is being recorded.

Joining us on the call today are [ Clayton Ward ], Senior Director of Investor Relations and Capital Markets; JK Symancyk, Chief Executive Officer; Joan Hilson, Chief Financial and Operations Officer; and Rob Ballew, Senior Vice President of Investor Relations.

At this time, I would like to turn the conference over to Clayton. Please go ahead.

Unknown Executive

morning. Good Jewelers 'XX Signet Conference Quarter Third to Earnings Fiscal Call. Welcome

we number certain discussion, facts Any a you uncertainties. to we cautionary We today's risk and to differ X-K. forward-looking results are in and risks may Actual current will XX-Q or to reports on Except read required forward-looking historical light our as During urge Form not other make statements statements. annual disclosures obligation report materially. or of and on Form undertake are by up publicly new statements law, subject factors, on the of revise future XX-K, language that Form no quarterly in reports events. information

of these financial well we ir.signetjewelers.com. the financial news reconciliations investors as call, non-GAAP our non-GAAP of discuss posted as the review at the measures, to release comparable financial GAAP will we directly discussion on the measures should most measures non-GAAP measures During a certain or for website

it I'll that, to turn With over JK.

James Symancyk

the and and business our our and Clayton, team It's invested are me I'd be the you our with thank good everyone. you, aspects for future in more There by that that leadership. our incredibly attracted Signet Thank in share I've many needs and customers but myself and purpose, I'll spending team moment, in let to warm all me and that stores motivated to first their welcome. saying all like is genuinely meeting time Signet to my with a colleagues today, pleasure my the of morning, start by our committed members to offices, of serving culture, immersed in Signet.

are lasting team and a here I've jewelry I've expertise how and memories cities offer time they how guidance it passionate firsthand across the customers lives. connection members in create seen jewelry their purchase. when our at of everyone emotional my to to seen already have with we in In the making everyday highest recognize moments is customers level providing footprint at about our with celebrate Signet, our milestone

merchant dedication serving like career-long midst our I work their moment to Signet for and a season. As most this And important passion the to hard customers. recognize take team of in selling I'd share our this for

encouraged Signet, create their vendors I'm also merchandise. I'm by and to opportunity commitment growth. partnerships our our to by month a strategic accelerate at energized to After on-trend

strong new we brands, recognize partnership assortment know, predictable our a of the Engagement opportunities Our and in opportunities consumer Bridal. to challenges. identifying some breadth short-term transform powerful In diamonds deep strategically are well the and provide business. actively for future. team team, management the industry incidents and evolve as the focus somewhat as have disrupted increase I talented are as foundation basis the with but you also lab-created a category less create on Fashion have within we

excited by front of of and ahead I'm challenges will yield strengths us. growth Signet's its us overcome I believe the to in opportunities

holiday successful focused our the Over continuing team season. months, first execute are and a few to foremost, next and myself on

look look months. strategy the sharing our value shareholder will on We details fuel to work in coming our and forward evolve and plans customer and to this to

the to call turn now over I'll Joan.

Joan Hilson

thank first good and morning, everyone. to JK, team. Thanks, I'd like our Signet

holiday takeaways X quarter the for be to the drive season. Your appreciate have I today. and agility inspiration, I preparations to in and commitment the continue and third results an the

meet sales industry momentum drive consecutive consumer continue with as sequential First, year. this and of choppy we we a improvement quarter to our sixth environment sales same-store

will Second, in positive drive which the a we well strategy, are quarter. sales with fourth this prepared go-to-market holiday believe season same-store we

of the accretive to impacts transition permanent costs impact and Allen early redemption. James shares Nile, Blue both guidance updating from and preferred the completion short-term banners, the we're Lastly, leadership reflect from digital the

Looking closer sequential finished third the to quarter. quarter, a X-point at sales down X.X%, improvement the second nearly same-store

hurricanes, continue sales in merchandise. banners offsetting excluding sell-through of digital our see delivered engagement we of positive impact our same-store we banners. to as decline fact, growth Partially the strong Fashion performance the of In digital new when and in sales X were point.

margin. Focusing more our penetration The is to newness, our continues to Up transaction or drive around customers. higher key on penetration value new to average in core strategy nearly last and merchandise Signet's banners. resonate X points ATV to strategy higher with year merchandise of

up example, third in XX% by more was diamond the sales. a in mid-single America, For digits than North fashion Fashion quarter, growth ATV driven lab-created

margin year. premium which core carried premium X a products than a in Importantly, average, greater to is our more point last new than

We in our Bridal. X% performance quarter total America to North to finished down digital with due the units Turning banners. engagement

Excluding nearly last the improvement points a up the third sequential were banners, units X-point quarter. X in quarter, digital to

ATV. to mid-single competitive was to due quarter in America price stones. Turning in the Overall Bridal ATV North down digits loose pressure

years. to recover XXX up over quarter ESA continues merchandise. fashion in agreements, as the post-repair outpace year, Services points continue ESAs, revenue Engagement grew will nearly Extended last was to rates by and to merchandise driven in few attachment sales. We traction basis believe X% the next it service units or continued

a services a to As merchandise. reminder, carries premium margin XX-point

year strategy. Turning believe positive takeaway, to driven we'll second by my deliver go-to-market holiday we our this a performance comprehensive

increased ATV in attractive Bridal to to continues increase selling. The us than engineering. greater margin as more product quarters. and well. the Bridal XX% over value-oriented merchandise seen have XX fashion consumer points into on be to allows to drive the holiday and work We at banners, a and few new of provide extends penetration customers momentum marketing through in merchandise to we've both This value an building up lean newness and We've inventory in last Fashion to core the positioned

we Engagement number twice sales has over high the Cyber Black typically delivered December single-digit positive. weekend. engagements Friday be We Monday will as month, the and other of units any believe December to same-store

expectations. is Christmas fourth within a to guidance this the However, keep in our mind and includes reflected that quarter from lift resulting proximity moderate closer

weeks As a before the reminder, Christmas. weighted our to holiday sales X are

Rob, call to to for the full hand in over year. expectations the discuss the I'd our like I Before changes

digital As integration replatforming search initial that responsibilities, upgrades half and The search and goes expanded at the the earlier impacted of part issues work in aided of challenges banners, shared. beyond our in we've of completion completion delayed began upon placement previously back significantly the the traffic that of API my my year assessment quarter. the of work

already quarter due the improvement expectations our ago for October's than fourth fourth some challenges, banners in quarter seen a performance. months compared While are these the digital lower to we've additional to few

Benson drive President, has just led and And importantly, from our digital I talented and leadership approximately am to to over coming experience, guidance. that not Karen pleased ], transition [ a return growth quarters. leadership of improvement and full including consumer banners, the were setting I Tiffany's we team recently our the joined costs our contemplated Depot new update Alongside Online. will digital digital path digital of her ago. the banner long-term She $X Home most who to expectations incur benefit year to deep welcome stage believe initially our our will month million in

share the completion reflecting of accretive preferred redemption. also are from the impact early We

call detail. discuss hand over more now the in results the to financial Rob to I'll

Robert Ballew

$X.XX billion, and everyone. good quarter down X%. the morning, Joan, for Thanks, was Revenue

the improve drag our reflects As in the that Joan sequentially banners gross in basis approximately delivered the were million basis the Same-store last margin also XXX continued We second of sales sales year. worsened digital points X.X%. sales mentioned, by from in same-store quarter quarter. banners of half prior a or XXX $XXX quarter, Merchandise this cycled was points. adjusted approximately down growth the XXX point flat of did of we third Digital XX% margin to flat as year.

$X transition sales somewhat to well Adjusted ahead million the we marketing Turning to or sales. with in some due by primarily Adjusted quarter marketing to million to income million to approximately as was year. higher expense Adjusted expense SG&A. $XX.X quarter. that for quarter spend of million deleveraged was line for last was leadership for last election and of the SG&A of operating $XXX the costs. X.X% points XX% $X $X.XX as EPS basis referenced XX quarter down pull the of

to the at season. up as ended to year the new penetration the X% of $X.X quarter holiday Turning we bolstered product enter we We inventory. billion, last as

of share actions to fiscal of $XX. share approximately this an translate count reduction $XXX roughly These aggregate shares million for We in shares. year. diluted quarter price million share $XXX average than million more approximately redemption repurchases at all shares year-to-date Common totaled have remaining X.X to XX.X preferred the to million $XXX end-of-year this and completed 'XX an XX% or of million year-end

an We returns strategy capital continue to part forward. our important to shareholders allocation see as moving capital of

the holiday drawn The result and far on of have with We fourth Turning million draw and the inventory $XXX the quarter timing revolver we on shares a was ended portion million and to the the of $XXX around liquidity. purchases, revolver. quarter. in significant preferred the temporarily redemption cash and of equivalents already repaid so the

I'll fourth that, discuss call back fiscal for and to the With the our quarter to guidance Joan year. hand the

Joan Hilson

Thanks, Rob.

range fourth approximate point to up same-store the sales For includes expect of digital X in our This flat the from an we X%. quarter, drag banners.

to low expect modestly. digits up be We Engagement and units up Fashion be to sales to mid-single

year This an between the expand income guidance with in with range margin X%. to a update Gross rate our rate same-store margin up down X% range results adjusted guidance environment. in a operating is million quarter our believe We slightly. expected expect in last provides higher the to million We full flexibility to for competitive in to $XXX sales $XXX to rate year. of operating SG&A and

between $XX.XX. $XXX adjusted EPS income million and We million between and expect $X.XX and operating adjusted $XXX

the of for shares impacts costs digital on expectations; before you within remind And X accretive One, permanent from closing, completion holiday leadership of I'm both in redemption. we like reflects you guidance we're and sales. questions, positive our I'd delivered impact leaving our short-term today. quarter we two, the early banners the and from takeaways transition So updated go to the with track finally, to preferred

Operator, go questions. let's now to

Operator

[Operator Wells Instructions] And first from comes your line the Ike Boruchow, of Fargo. question

Irwin Boruchow

guess new for me to on talk Good I you, X to guide. questions the JK.

making Just sure understand. I

it. of guide also driver of that like It kind but business, it more did, So of like basis the new the ex out meaning the also X, XXX points banners did calling sounds expectation it flat Did but digital you're comp business digital, on looks digital. core the to down? the is your there's come

to trying understand the versus digital core component. just So

where a that flexing. like lower despite has follow-up And trying Is to comp. understand some just guess that looks margin margin? nice initiatives you're gross come question I you're expense I'm the expansion And guide. Is some on still then guiding margin expansion from? that the It

So the takes. just and curious puts kind of

Joan Hilson

little the on core We that collectively, banners were would with performing. end, up quarter. giving quarter. in third pleased how from So really core to bit of guide a for performance, are guidance within banner the we're perspective, slight the The banners I that the -- with the drop our we're are pleased were the core digital respect impact with for a lower overall, performance banner in generally core we fourth in seeing we're our business. a But banners say

the to points expect overall, We as the we point digital. As we that look we was drop forward, noted some we of in bit have the little a third it impact did that to but still think But basis related will comp. mitigate, to related a drop of X quarter, XXX hurricanes.

there performing. gross some driving performance, is product. the margin to very pleased Gross Ike. I a related what's related shared we're new the margin margin to really in But our is the with improvement rate that with meaningful fashion expansion merch margin. expansion was comp Merchandise

And really fourth by the related in our the up to quarter new driving what's assortment is so expansion mix being margin. that driven gross product

Irwin Boruchow

gross I'll expect to comment then And XQ? for and margin you pass the what it quantify you of on then just along. be environment, kind Can promo

Joan Hilson

would some but fashion expect fourth our Not was third we've higher expand that do the product margin. in to impact to related we a way the believe we promoting to and our a of competitively I and based also of quarter. really add penetration provided the specifically, slight on perspective quarter, that there we it newness. the head fourth newness into gross positioned We current make as from quarter have are within pricing for flexibility believe assessed for clearance

Operator

line of Bank the Your America. question from comes with of Hutchinson Lorraine next

Melanie Gonzalez

that digital can expand for going more. just seems if It about issues the those is Melanie in business. few bit side upon the This identified a ask more you wanted on like Lorraine. you I a of just things on to integration

So why are what if still on, going be done? you needs these else can just to explain

Joan Hilson

saw opportunities integration that With for nicely or that challenges those us. Friday through respect been weekend us. to banners, believe are the behind we digital We have the Black over working API and the

the the the digital quarter, it's So anticipated, than of part work the in the what overall well aided in and in performance with the with impacted as going assess fourth of later as replatforming search closer going quarter, to we banners. happening latter proximity was really

Now some quarter banners third improvement mentioned we're point And related to of still as relative on X fourth performance, we're I we're seeing my we working impact seeing the do the the that through. improvement in remarks later but a digital quarter. prepared November, expect to in the month

Operator

Next from with question of Lejuez the Citigroup. line comes Paul

Paul Lejuez

side? what A plan couple any like second, year? for relative next the of the talk then cost look how get cost both making about digital And through improve year, and the for when of to are money businesses what's you on they from seeing banners? prices change natural year? those this And questions. what seeing we this Are Can side what's retail profitability the even to lab? you're on probability And those going to the you're

Joan Hilson

related question faster -- retail coming than first cost. the coming down. is We So diamonds see within to down lab-grown costs particularly within

that strategy, and and lab ATV. Bridal you design carrying Xx more our we with the as introduction without product in know, grown way are ATV of diamonds higher that we've within the with it. that providing in So is Fashion see We product branded bridged

the of with the within new or assortment, pleased managing retails very we're So that's the we're and performing. with our product how infusion --

and mentioned Engagement, the overall decline our of see spot call, assortment we're, within -- within on some in we but We're seeing price as balancing our ATV our sweet again, points. Bridal our we

our So Engagement. we is and product happen, bring within of engagement recovery how on strategy slower branded offering feeling are very albeit new good continuing about continuing product to to to and continuing stay

gold see understands business priced resistance market. respect consumer in within value is gold, the Now to our how gold, little with we price the on and

pricing So able engineer to as the are adjust our and/or see rise, product we right within we to keep our cost prices, spot. sweet in gold consumer value

that we've navigate that. feel So been to able

digital is of that the -- in Blue James and of within first we we to top the I in digital your growth Nile margins. jewelry expansion those to se time. what you, are operating very don't respect on will that with banner and merchandise for infusion banners, comment this for magnitude the say Now question, line per finished really But Paul, the and important when for to margin is the quarter Allen And seeing we banners. come fourth some

to look banners. our forward, Allen expect and back clearly So assortment to expense as part we plans we Blue as of Nile of as is well growth management track James see profitability those mix long-term on get and

Operator

Serna question Mauricio And comes line your with next UBS. of from the

Mauricio Serna Vega

commodity the you Friday like incentive Maybe comp cost your could on and puts then quarter-to-date seeing rebuild. pricing, same-store talk sense into you that given sales, any rising XXXX about Black and just about maybe takes commentary sales also, could your margin us performance you're a give gold,

have then quick count. that? follow-up share getting like better And of a a I sense on Just

Joan Hilson

So high mentioned, had performance Cyber single-digit we as Monday. a Black I sales same-store Friday the weekend over Mauricio, through

a a modest for Just QX performance as quarter date reminder, is The to impact reflected the Christmas. there's there overall within to of guidance. our proximity

So guidance our it's within range. considered

highest important very prepared our weeks So X period. -- within selling my obviously, to prior for -- Christmas and to mentioned also that I and business are remarks the -- our our

portion So to we quarter have of a good go. the

so our all that's of within And guidance. reflected

our plan, a of our board earnings to be respect he's fiscal operating future, 'XX, are be think the fourth actively JK with we'll time. But our with at of work we identifying to management those we're I that. come team. mentioned, to and have And as Clearly, you quarter be about. on asking we of with Then back call working you lot JK on evaluating and ahead us to share happy as with on back 'XX, we'll that for we'll view you're to the opportunities

Mauricio Serna Vega

And share to the then on sure quarter-to-date just And follow-up I mean is make the that had count. up flat that understood, I your to just X%. I does within guess,

like to calculations you trying for like XX.X% getting not trying year, Just understand XX.X% like anything entire getting doing the numbers I to on already a and I'm the assuming did just to think understand the count consider what share for year? the how more the the there just any for like share like buybacks on count to to diluted the you're full

Robert Ballew

number, confident very a for weekend. of which quarterly our certainly exactly deliver in shift the terms and Black This providing guidance the is holiday in provided and the ability reflected is strong Friday feel we we're there's not a in to comp to in Yes, bit Rob. so little positive closer our but quarter, Christmas, quarter-to-date, a

repurchased In the calculation shares fairly complicated terms but calculated count had, at And expect XX.X back then million settlement of you basis the release, diluted $XX our of on this first put roughly $XX to the so year the the anyone year impact the I get think in some half And exit in ship it's before basis. the going earnings preferred about we forward. shares, EPS we the to shares accretion million a as the with some April million to should get obviously, knows, the in year provide count, year, we the to preferred a XX.X share the the shares. adjusted the an and do was which of year some on of amended EPS can share to we due that agreement half million in of and diluted additional

Operator

And from question comes Jim with your Research. Sanderson of Northcoast next line the

James Sanderson

Bridal the on category. commentary the to back go to wanted I

the decline average of put or getting into key is what I that drivers whether that Can are? better? worse for perspective us, think that's you you value reported down. And transaction that

Joan Hilson

recovering expected, slower X% overall it down units the a but and sequential third improvement. did in are So than although they Engagement represent quarter, we were X-point

excluding in the our the banners QX. third quarter, up units digital you were the If engagement America look at nearly X% business, North in

a America in banners. that X-point North So our sequential improvement is

positive So signal also a the recovery. Engagement towards

guidance. banners forward, from as the earlier be as but continue in our look reflected albeit -- we've will Bridal, we it we some units I quarter And so have we expect we mentioned, impact to digital number, the positive, with fourth that mentioned that our will Engagement as in that impact

we'll bit our engagement overall that from view be underway. it So extended that. recovery, earlier on a believe We may recovery although that to continue see

James Sanderson

transaction my sure understood correctly. -- value make wanted just And apologies. I to I

Joan Hilson

average So It the banners third a a had was significant because to there's high the down quarter. within the the transaction value such was penetration of engagement in banner. digital digital impact also related

related go with manage ability our average way is the So value, a assortment through providing to Bridal our pleased us may flat transaction of ATV. choppy bit overall the environment forward, Fashion we a to were Jim, because what be

So of stable and with feel manage mix our that able it's the we're business. to

James Sanderson

Then just follow-up last X question.

for you comparison? was year I what year Friday just think Monday. for you reported trend numbers reported that Could and Black this Cyber last

Joan Hilson

We the to just But weekend, remind for a is in reported us high our high over we're that fourth single-digit Jim. in quarter. which we here, comps didn't sharing year, comp provide positive included that last guidance a -- single

Operator

with follow-up a question from And Mauricio we UBS. have coming Serna

Mauricio Serna Vega

are for is is are quick I promotions? digital And quarters? QX on What you that follow-up. that that about Engagement? versus in Just the of price, the environment, on understand the wanted the ever like how more you promotional why banners thinking total just QX? like thinking to a And previous the because impact

Joan Hilson

They I we performance the of a banners, timing but on to XXX later banner third the in when point impact quarter they the Nile. digital in from said, -- the AI have fourth quarter. basis fourth saw the or be high it mentioned, impacting the sorry, the expect had So we're business. a being point I'm as quarter come play, overall that upgrades to are America comp comp negative in quarter third we X in re-platforming completed the -- as of James in search somewhat aided impacted We and it's digital our their third well within we negatively put and banners quarter, search our And seeing vital the engagements the that with performance. engagement impact North into penetration or Allen positive, to Blue impact. exclude engagement you Therefore, a as around

the and higher new inventory that for the to than mention With year, pricing I points. importantly, we as a we third respect -- promotion way through clearance quarter, to penetration last we make there has which that quarter, on fourth pricing XX I did the did X was enter took move think product in some much to to

heading that quarter. and So important positioned that into nicely that believe us for we've do to the

a to is promotional the Our believe, some, guidance guidance. competitive our us for flexibility enable which posture includes what we within nice a fourth remain will within quarter

Operator

And turn time it back that to JK like is the have remarks. would Symancyk for we all I questions. closing our for CEO, to

James Symancyk

me Goodbye. you In our speaking to like and We to the deliver your of Signet to believe I forward evolve March. us will customers. look welcoming in to opportunities you to thank closing, again again our further for I I'd team. ahead you. thank to time and today. value dedication Signet the both for Thank for to team shareholders purpose their

Operator

call. And presenters. conference today's this you you, gentlemen, concludes ladies Thank for Thank and participating. all

now You disconnect. may

Signet Jewelers Limited (SIG) 5 Dec 242025 Q3 Earnings call transcript