Signet Jewelers Ltd (SIG, SIG.L), Tuesday reported a narrower loss for the third quarter, reflecting lower operating expenses that more than offset a decline in revenue. Further, the company said it expects higher reduction in net debt for the full year, compared to its original target.
The Hamilton, Bermuda-based specialty retail jeweler reported a net loss of $7 million or $0.08 per share, narrower than $15.1 million or $0.18 per share in the previous year. Results include foreign currency translation costs of $5.8 million, changes in fair value of derivative instruments of $5.4 million, actuarial gain of $1.2 million and deferred tax on items recognized in equity of $1.7 million.
Comprehensive loss for the quarter was $8.2 million, compared to $144.5 million a year earlier.
Total sales for the quarter declined 2.5% to $613.7 million from $629.3 million last year. Same store sales for the quarter was down 1.9%.
By geography, US sales declined 1.7% to $459.3 million from the previous year. Same store sales decreased 2.4% for the period, compared to a fall of 5.5% in the second quarter, with Jared showing some early signs of a slowing sales decline.
UK sales were $154.4 million, down 4.7% from last year. On constant exchange rates, sales were up 4.5%. Same store sales were down 0.2% for the quarter. The average unit selling price in H.Samuel was up 9.6% reflecting both merchandise mix changes and price increases. In Ernest Jones, average unit selling price was up 12%, due to the similar factors.
Cost of sales was $447.9 million, compared to $454.5 million a year ago. Gross margin declined to $165.8 million from $174.8 million a year earlier.
Selling, general and administrative expenses declined to $197.3 million from $217.3 million last year. Interest expense declined to $7.4 million from $10 million in the previous year.
Net financing costs declined to $7.4 million from $9.4 million, primarily due to the lower level of both fixed and variable rate borrowings.
For the nine-month period, net income increased to $46.9 million or $0.55 per share from $30.3 million or $0.35 per share in the same period of the previous year. Sales for the period declined to $2.09 billion from $2.22 billion a year ago.
In addition, the company now expects to achieve a reduction in net debt of between $300 million and $350 million this year. Previously, the company had debt reduction target in the range of $175 million to $225 million.
SIG is currently trading at $26.02, down 0.84 or 3.12%, on a volume of 99K shares on the NYSE.
SIG.L is currently trading at GBP 1,570.00, down 38.00 or 2.36%, on a volume of 237K shares on the London Stock Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.