Signet Jewelers on track for largest one-day gain in over a year on strong earnings

Shares of Signet Jewelers, the mid-cap owner of jewelry brands Jared and Kay Jewelers, have surged more than 11% in premarket trading on Wednesday, which puts them on track for their best day in over a year. The company’s latest quarterly earnings topped Wall Street expectations by more than 25%, allowing the management to raise its full-year guidance.

Signet is up more than 11% in premarket trading on Wednesday as of this writing. If the gains hold during the regular session, it would mark the stock’s biggest single-day rise in over a year, Barron’s noted.

Signet reported that adjusted earnings per share for the second quarter of its fiscal 2027, ended August 1, were up 36% year over year at $2.19. Wall Street had expected $1.74 per share, according to Yahoo Finance data. The financial performance allowed the management to raise its full-year adjusted EPS guidance for the second quarter in a row, to $10.45-$12.15 from $9.20-$11.00.

The forecast also reflects a planned $125 million accelerated share buyback program, Chief Operating and Financial Officer Joan Hilson said. The repurchases will bring Signet’s 2026 capital returns to 12% of its current market capitalization. At Tuesday’s close, the company’s market value stood at $3.35 billion.

Meanwhile, Signet’s top line was virtually unchanged year over year at $1.5 billion. Same-store sales rose 2.2%, versus the 1.9% Wall Street had expected.

Wall Street is almost evenly split on the outlook for Signet stock, with seven “hold” ratings versus six “buy” calls. The average target price of $111.80 per share implies more than 35% upside from Tuesday’s close.