Signet Jewelers shares rose on Thursday after the world's largest diamond jewellery seller reported better-than-expected financial results. The parent company of Zales and Jared posted sales of $2.35 billion in its fiscal 2026 fourth quarter ended 31 January, with same-store sales declining just 0.7%. The retailer saw strength in its bridal and fashion segments despite rising gold prices and tariffs increasing costs. Signet generated $525 million in free cash flow for the year whilst maintaining consistent inventory levels. The company expects adjusted operating income of $470 million to $560 million and earnings per share of $8.80 to $10.74 in fiscal 2027. Signet's board approved a nearly 10% dividend increase to $0.35 per share quarterly.

Signet Jewelers reported fourth-quarter revenue of $2.3 billion, with same-store sales declining 0.7%. Excluding James Allen and weather impacts, comparable sales grew 1%. The company delivered adjusted operating income of $327 million for the quarter and $515 million for the full year, with adjusted earnings per share growing 7% annually. Free cash flow reached approximately $525 million, up 20% year-over-year. The company repurchased $205 million in shares during fiscal 2026, representing over 7% of shares outstanding. For fiscal 2027, Signet expects revenue between $6.6 billion and $6.9 billion, with comparable sales ranging from down 1.25% to up 2.5%. The company plans approximately 100 store closures and projects adjusted EPS between $8.80 and $10.74. Gross margins faced pressure from higher commodity costs and tariffs.

Signet to close James Allen e-commerce site. News in Brief * Signet Jewelers will shut its James Allen retail website in the second fiscal quarter, which ends in early August, the company announced in its annual results on Thursday. * Signet will repackage the brand as a "proprietary collection" within Blue Nile, its other major e-commerce brand. "Complementary products and styles" will move over to that site. * Rocksbox, which sells secondhand jewelry, will also become a distinct collection within Kay Jewelers, Signet's largest store brand, during the current fiscal year. Rocksbox will operate as part of the Kay team rather than as a stand-alone entity, Signet said in its 10-K annual report. * Group sales were essentially flat in the fourth fiscal quarter that ended January 31, down 0.3% year on year to $2.35 billion. Sales for the full fiscal year were up 1.6% to $6.81 billion. * Group net profit jumped to $250 million for the fourth fiscal quarter from $100.6 million a year earlier. For the full year, net profit rose almost fivefold to $294.4 million, compared with $61.2 million for the previous 12 months. * Same-store sales - at branches open at least a year - dropped 0.7% for the quarter and climbed 1.3% for the year. * The average selling price increased 5% for the quarter and 7% for the year, with growth in bridal and fashion. The Rapaport View Management's decision to "sunset" the Jamesallen.com site - to use Signet's term - and to absorb Rocksbox within Kay appears to reflect efforts to make the group more efficient. James Allen has struggled recently. Signet incurred a $13 million impairment charge on the James Allen trade name last year. The brand's sales dropped 33% to $142.5 million for the fiscal year. Revenue at Blue Nile, a larger and arguably better-known brand, slipped 2% to $339 million. "As part of our ongoing brand- and digital-transformation efforts, we are continuously evaluating and implementing changes to our brand portfolio and digital platforms, including aligning brands, evolving digital brand strategies, and, in certain cases, consolidating or sunsetting stand-alone digital experiences," Signet said in the 10-K. Signet said it was assuming a negative effect on revenue of $60 to $80 million because of the James Allen transition, with a "minimal impact" on operating income. Growth in full-year sales for the group resulted from "filling merchandise assortment gaps at key price points both in fashion and in bridal, particularly in the largest brands," the company said. The company had already released sales estimates for the period last week.