Lab-Grown Diamonds, Lower-Priced Fashion Jewelry Drive Signet Jewelers’ Q2 Sales

Akron, Ohio—Signet Jewelers Ltd. posted sales growth once again in its second quarter and raised its full-year guidance as its turnaround plan progresses.

For the quarter ended Aug. 2, Signet’s sales totaled $1.54 billion, up 3 percent year-over-year. Same-store sales were up 2 percent.

Adjusted operating income increased 24 percent to $85.4 million, aided by cost-cutting measures and growth in both gross margin and comp sales.

In the first half of the year, total sales are up 2 percent year-over-year to $3.08 billion, while same-store sales also have increased 2 percent.

In Q2, growth in sales of fashion jewelry, including its lab-grown diamond offerings, and services fueled the positive performance.

The results exceeded the company’s expectations of sales between $1.47 billion and $1.51 billion, with same-store sales in the range of -1.5 percent to +1 percent.

“Our second-quarter results were driven by the expansion of on-trend fashion assortment and effective promotion and pricing strategies,” CEO J.K. Symancyk said in the company’s news release. 

The company’s three largest retail chains—Kay, Zales, and Jared—saw same-store sales increase by 5 percent in Q2, he said.

“We have a sharp focus on delivering [for the] holiday with the right inventory levels at key price points and the launch of new collections in our largest brands, supported by fresh marketing campaigns.”

On the company’s earnings call Tuesday morning, Symancyk and Chief Operating and Financial Officer Joan Hilson discussed the impact of tariffs, what it’s stocking for the holidays, and how the turnaround plan is progressing.

Fashion jewelry was a growth driver this quarter, posting 2 percent comp growth as lab-grown diamond jewelry sales grew.

“We are focused on delivering fashion pieces across key price points to reach more customers, including an expanded assortment of lab-grown diamonds and lab-grown diamond fashion pieces,” Symancyk said on the call.

Bridal jewelry sales were flat.

Signet’s services category performed well, with revenue up 7 percent, led by its extended service agreements.

Hilson noted that the retailer has seen price stabilization in loose diamonds, both natural and lab-grown, over the last six months, with natural rebounding across carat sizes.

Signet’s banners in North America include Zales, Jared, and Kay Jewelers, as well as Peoples in Canada. In the United Kingdom, Signet owns Ernest Jones and H. Samuel.

Jared is expanding its collections, including its natural diamond collection “Unspoken” and its Shy Creation collaboration, ahead of the holidays. The brand also has debuted updated packaging.

Kay, Signet’s “sentimental gifting brand,” is introducing more milestone gifting jewelry at lower price points for “value-oriented” customers.

The jewelry giant also has been increasing its marketing spend, including a 20 percent increase in social media channel buys.

Jared’s “Love Highway” campaign featuring influencer Taylor Hill did especially well, as did Kay Jewelers’ partnership with singer Teddy Swims, dubbed its “Chief Love Officer.”

Signet said Banter (formerly Piercing Pagoda) was impacted by the high price of gold, which was more than $3,500/ounce as of press time.

At Blue Nile, Hilson said the retailer could benefit from a more differentiated product assortment, while James Allen needs faster shipping and more finished jewelry options.

Looking ahead to the holiday season, Symancyk said consumers are ready to celebrate.

“We believe we are well-positioned to enter the holiday season with the right merchandise assortment at the right price points and the right marketing campaigns,” he said.

Ahead of the holidays, the retailer is focusing on its lab-grown diamond fashion jewelry and men’s fashion jewelry categories, offering options priced between $200 and $500.

Signet said it has three times as many lab-grown diamond fashion pieces priced below $1,000 in stock than it did last year, with even higher growth in lab-grown diamond fashion jewelry priced below $500.

“We see our customer willing to spend as long as the assortment is compelling and delivers on their expectations of value,” Symancyk said.

As part of its turnaround, Signet also will be making changes to its stores, including introducing formats that encourage self-purchasing and milestone gifting and more interactive experiences.

The jewelry giant, which ranks No. 1 on National Jeweler’s 2025 $100 Million Supersellers and Top 50 Retail Chains lists, is in the midst of its “Grow Brand Love” turnaround plan, announced in March.

The plan includes leadership changes, store closures and renovations, and a focus on brand loyalty.

Julie Yoakum, who previously worked for Helzberg, recently was named president of Kay Jewelers and Peoples Jewellers, its Canadian jewelry store chain.

The retailer also hired Lisa Laich, formerly the head of digital and brand marketing for Crocs, as its new chief marketing officer. 

As for the impact of tariffs, Symancyk said the retailer is navigating the “dynamic” environment in part by working with its vendors  to minimize the impact of tariffs and maximize holiday availability.

“We’re also working to reduce the impact of tariffs through discussions with suppliers to maximize domestic production, optimize country of origin, and by value-engineering pieces that deliver on customer expectations at the right price points,” he said.

Notably, about half of Signet Jewelers’ finished merchandise purchases are from India. As of Aug. 27, imports from the country are facing a 50 percent tariff rate.

Looking ahead to Q3, Signet is expecting sales to total between $1.34 billion to $1.38 billion with same- store sales down 1 percent to up 1 percent.

The retailer is once again increasing its full-year guidance.

Signet is now expecting full-year sales of $6.67 billion to $6.82 billion, up from its prior guidance of $6.57 billion to $6.80 billion.

Same-store sales are expected to be down less than 1 percent to up 2 percent, compared with its prior guidance of down 2 percent to up 1.5 percent.

“We grew adjusted operating income more than 20 percent in the second quarter, led by comp growth, gross margin expansion, and cost savings related to our reorganization,” Hilson said in the company’s news release.

The company’s full-year adjusted operating income will depend on what happens with current reciprocal tariffs, it said, but is expected to be between $445 to $515 million, up from its prior guidance of $430 to $510 million.

Full-year operating income will likely come in at the middle to lower end of that range if the current tariff rate on imports from India remains in effect, but will land closer to the upper half of the range if rate is lowered within the next two months, Signet said.