Signet Jewelers bounced above a buy point Tuesday after its second-quarter earnings report. But the base pattern deserves a close look.
Signet Jewelers reported a nearly 29% increase in earnings to $1.61 per share adjusted. Revenue climbed 3% to $1.54 billion.
Analysts polled by FactSet expected earnings of $1.24 per share on $1.5 billion in sales.
Overall same-store sales rose 2%, while comparable sales for its Kay, Zales and Jared branded stores increased 5%.
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Signet expects Q3 sales to range from $1.34 billion to $1.38 billion, slightly ahead of analyst forecasts for $1.33 billion. The jeweler sees same-store sales ranging from a 1.25% decline to 1.25% growth.
Adjusted operating income is expected to range from $3 million to $17 million.
Signet raised its 2026 guidance with results. The company now sees total sales ranging from $6.67 billion to $6.82 billion, up from its prior range of $6.57 billion to $6.8 billion. Same store sales are expected to range from a 0.75% decline to 1.75% growth. Signet previously expected comparable sales to range from a 2% decline to 1.5% growth.
The jeweler raised its earnings forecast to range from $8.04 per share to $9.57 per share adjusted, up from its prior range of $7.70 to $9.38 per share.
FactSet analysts expect full-year earnings of $8.94 per share on $6.74 billion in revenue.
Signet Jewelers Stock
SIG stock swung 2.7% higher Tuesday to retake an 88.51 buy point in a cup-with-handle base. The base pattern, however, is 58% deep. That can add risk to a breakout, so it is good to study up before jumping in.
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Signet Jewelers has climbed 12% so far this year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
