The drop reflects challenges in integrating Blue Nile and James Allen, as well as operating in a competitive market environment. Same-store sales dipped 0.7%, while operating income fell to $9.2 million from $13.3 million in the prior year. Adjusted operating income stood at $16.2 million, down from $23.9 million, although diluted earnings per share (EPS) increased to $0.12.
Joan Hilson, Chief Financial and Operating Officer, remarked, “The Signet team delivered Q3 results within our expectations, reflecting a nearly 3-point sequential improvement in same-store sales. New fashion merchandise, which carries a higher transaction value, and continued recovery in engagement, combined to maintain both average transaction value and merchandise margin in a competitive environment. Our updated Fiscal 2025 guidance reflects further integration challenges in Blue Nile and James Allen, leadership transition costs, and the accretive impact from the early completion of preferred shares redemption. I’m pleased to welcome J.K. and look forward to partnering with him to develop and capture additional opportunities for growth in the coming years.”
J.K. Symancyk, Chief Executive Officer, added, “I’d like to thank the team for the warm reception I’ve received since joining Signet a month ago. I’ve been impressed by the team’s laser focus on executing this holiday season. As we look forward into next fiscal year, I believe there are opportunities to evolve our strategy to further fuel customer and shareholder value. I look forward to sharing more details on this work and our plans in the coming months.”
In North America, total sales dropped 2.3%, with same-store sales declining by 0.8%. Internationally, sales fell by 11.4%, primarily due to the divestiture of prestige watch locations, though same-store sales grew by 1.6%. Gross margin remained steady at 36.0% of sales, while SG&A expenses slightly decreased to $469.6 million, reflecting costs associated with leadership transitions.
The company revised its Fiscal 2025 guidance, projecting total sales between $6.74 billion and $6.81 billion and same-store sales declining by 2–3%. Adjusted operating income is expected to range from $540 million to $570 million. During the quarter, Signet repurchased $66.5 million in common shares and declared a quarterly dividend of $0.29 per share.
