Signet Jewelers (SIG) Stock Forecast & Price Target

Signet Jewelers has demonstrated a robust demand for both lab-grown and natural diamonds, with a year-over-year increase in average unit retail (AUR) in the bridal category during the holiday period. The company is expected to achieve a topline revenue growth of 1.1% year-over-year, estimating $6.758 billion for FY26, alongside a projected earnings per share (EPS) of $9.15, reflecting a 5% increase from the prior year. Furthermore, the significant acceleration in lab-grown diamond sales, which rose 40% year-over-year in Q4, indicates strong consumer interest and potential for continued revenue growth.

The financial performance of Signet Jewelers Ltd has raised concerns, highlighted by a 2% year-over-year decline in holiday comparable sales, which fell short of internal expectations. Additionally, the company has reported weaker-than-expected holiday sales and revised its fourth-quarter guidance downward, following softer results in the previous quarter that included decreased sales and gross margins. The overall outlook is further clouded by a significant drop in organic search traffic, which may hinder recovery efforts and negatively impact future revenue generation.