Shares of Signet Jewelers Restricted (NYSE: SIG) had been down over 3% on Tuesday. The inventory has dropped 12% over the previous three months. The corporate confronted challenges within the third quarter of 2025, inflicting it to ship disappointing outcomes and decrease its steerage for the complete 12 months. Regardless of these headwinds, it noticed momentum within the trend class, which helped offset weak spot within the engagements enterprise in Q3.
Power in Vogue
Within the third quarter, Signet recorded constructive gross sales in Vogue, helped by sturdy sell-through of recent merchandise. In North America, the typical transaction worth (ATV) for Vogue was up mid-single-digits, pushed by a rise of greater than 30% in lab-created diamond trend gross sales. Lab-created diamonds present alternatives for growth within the trend class.
Signet expects to ship a constructive efficiency for the vacation season helped by its go-to-market technique. It has positioned its merchandise and advertising to allow it to learn from the momentum it has been seeing in Vogue over the previous few quarters.
As talked about on its convention name, the corporate has elevated stock penetration of newness to over 30% in core banners, up greater than 10 factors to drive vacation promoting. The rise in new trend merchandise is predicted to assist present the shoppers better worth at a pretty margin and ATV. Signet expects Vogue gross sales to be up modestly within the fourth quarter of 2025.
Decline in engagements
The energy within the Vogue section helped offset the decline in engagement efficiency in digital banners. In Q3, inside the Bridal section, whole North America engagement models had been down 2% as a result of efficiency in digital banners. Excluding the digital banners, models had been up almost 4 factors within the quarter. North America Bridal ATV was down mid-single-digits in Q3 because of aggressive worth strain in free stones.
Just like Vogue, Signet has been taking measures to assist drive constructive efficiency within the Bridal section through the holidays. Since December tends to see a better variety of engagements in comparison with different months, the corporate expects engagement models in December to be constructive. Signet expects engagement models to be up low to mid-single-digits in This fall 2025.
Providers – one other development space
Providers is one other space of development for Signet. In Q3, providers income grew almost 2%, outpacing merchandise gross sales. Prolonged service agreements (ESAs) attachment charges grew 170 foundation factors to final 12 months, helped by momentum in post-repair ESA and trend merchandise. As well as, providers carries a 20-point margin premium to merchandise.
Q3 efficiency
In Q3 2025, Signet’s web gross sales decreased 3.1% year-over-year to $1.3 billion. Identical-store gross sales had been down 0.7%. Adjusted EPS remained flat YoY at $0.24.
Outlook
For the fourth quarter of 2025, Signet expects whole gross sales to be $2.38-2.46 billion and same-store gross sales to be flat to up 3%.
The corporate lowered its steerage for the complete 12 months of 2025. It now expects whole gross sales to vary between $6.74-6.81 billion versus the earlier vary of $6.66-7.02 billion. Identical-store gross sales at the moment are anticipated to be down 3% to 2% versus the earlier expectation of down 4.5% to up 0.5%. Adjusted EPS is now anticipated to be $9.62-10.08 versus the prior outlook of $9.90-11.52.