Signet Jewelers (SIG) Stock Forecast & Price Target

Signet Jewelers Ltd experienced a 3.0% increase in total sales, reaching $1.392 billion, with a notable 7.0% year-over-year increase in average unit retail prices, which indicates strong pricing power. The company successfully expanded its gross margin by 130 basis points to 37.3%, outperforming market expectations, despite challenges such as rising tariffs and increased gold costs, while also benefiting from a faster growth rate in services. Additionally, the growth of lab-grown diamonds, which constituted 15% of fashion sales in Q3—twice last year's rate—demonstrates the company's ability to adapt to changing consumer preferences, further enhancing its competitive positioning in the jewelry market.

Signet Jewelers is facing a challenging outlook as its Q4 comparable sales guidance indicates a potential decline of 5.0% to an increase of only 0.5%, driven by weak consumer confidence and a slowdown in the key holiday shopping season. Additionally, the company anticipates a $0.04 negative impact on earnings per share due to a higher tax rate than previously expected, further eroding financial expectations. Lastly, the fiscal year 2026 comparable sales forecast remains muted, with anticipated growth limited to a range of down 0.75% to up 1.75%, compounded by the continuing drag from the James Allen brand performance.