Signet Jewelers' stock soars 14% after record profits and dividend hike
Signet Jewelers has seen a sharp rise in its stock price after posting strong financial results. The company's shares jumped nearly 14% following better-than-expected earnings for the fourth quarter. With a market value of around $3 billion, the jewellery retailer has also announced a higher dividend for shareholders.
The company reported revenue of $2.35 billion in its latest quarter. While comparable sales fell slightly by 0.7%, the average price per item sold climbed by about 5%. This increase helped drive operating profit to $318.3 million—more than double the figure from the same period last year.
Adjusted operating profit reached $327.3 million, though this included higher costs for advertising and employee bonuses. Signet's strategies, such as pricing adjustments and real estate optimisation, have contributed to its performance. The business has also restructured operations to stay flexible against challenges like tariffs and rising material costs.
In response to its strong results, Signet is raising its quarterly dividend by nearly 10% to $0.35 per share. This marks the fifth consecutive year of dividend increases. Analysts at Jefferies predict the company could generate $3 billion in free cash flow over the next five years. They also see further growth potential, with a price target of $150—suggesting over 40% upside from current levels.
Signet's latest financial report highlights its ability to grow profits despite a slight dip in sales. The dividend increase and optimistic forecasts reflect confidence in its long-term strategy. With full-year revenue for 2026 projected at $6.8 billion, the company expects continued steady growth in same-store sales.
