HAMILTON, Bermuda - Signet Jewelers Limited (NYSE: NYSE:SIG), the world's largest retailer of diamond jewelry, reported first-quarter earnings that surpassed analyst expectations, despite a decline in revenue. The company announced an adjusted EPS of $1.11, which was $0.17 higher than the consensus estimate of $0.94. However, revenue for the quarter was $1.5 billion, falling short of the estimated $1.51 billion.
The first quarter's sales showed a 9.4% decrease compared to the same period last year, with the company citing a challenging February followed by a stronger May. CEO Virginia C. Drosos highlighted the notable acceleration in North America engagement unit sales and the positive response to new product offerings and loyalty programs. Signet's adjusted merchandise margin expanded by 100 basis points, and the company experienced improved free cash flow over the prior year.
Looking ahead, Signet provided guidance for the second quarter with total sales expected to be between $1.46 billion and $1.52 billion, aligning with the consensus estimate of $1.51 billion. The company forecasts operating income in the range of $50 million to $75 million and adjusted EBITDA between $98 million and $123 million.
For the full fiscal year 2025, Signet anticipates adjusted EPS to be in the range of $9.90 to $11.52, compared to the consensus estimate of $10.55. The company's revenue guidance for the year is set between $6.66 billion and $7.02 billion, with the midpoint below the consensus estimate of $6.84 billion.
Despite the lower revenue, the company's strong balance sheet and reaffirmed full-year guidance reflect confidence in its business strategy. CFO Joan Hilson emphasized the effectiveness of Signet's flexible operating model, which has led to margin expansion and working capital optimization.
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