Signet Jewellers, the Bermudian-domiciled owner of Kay, Zales and Jared, has raised its full-year earnings outlook after reporting stronger same-store sales and wider operating margins in the second quarter.

The New York-listed retailer reported sales of $1.53 billion for the 13 weeks ended August 1, slightly below the $1.54 billion recorded a year earlier. However, same-store sales, which include physical stores and e-commerce, increased 2.2 per cent.

Adjusted diluted earnings per share rose to $2.19 from $1.61 in the previous year’s quarter, while adjusted operating income increased to $107.2 million from $85.4 million.

JK Symancyk, Signet’s chief executive, said all of its fine-jewellery brands recorded positive comparable sales, including high single-digit unit growth at higher price points.

He said: “Building on this momentum, we are accelerating our key brand initiatives, including merchandise refreshes, enhancements to both the online and in-store customer experience and a more modern and emotionally engaging marketing approach.”

Average unit retail prices rose about 6 per cent, with growth in both bridal and fashion jewellery. Gross margin increased by 80 basis points to 39.4 per cent of sales, helped by about $15 million of refunds for tariffs previously paid, as well as lower inventory and distribution costs. Higher gold costs partly offset the gains.

The company lifted its fiscal 2027 adjusted earnings-per-share forecast to between $10.45 and $12.15, from a previous range of $9.20 to $11. It maintained its sales guidance of $6.7 billion to $6.9 billion and now expects same-store sales to range from flat to growth of 2.5 per cent.

Signet also plans a $125 million accelerated share repurchase programme and expanded its remaining buyback authorisation to $700 million. It had $526.8 million in cash and cash equivalents at quarter-end.

The company recently extended its consumer-credit partnership with Bread Financial through December 2035. Signet said the agreement would provide financing, data and customer-experience enhancements, and is expected to contribute $30 million to $40 million of non-comparable revenue and gross margin this year.

Signet was formerly known as Ratner Group before rebranding in 1993. It redomiciled to Bermuda and shifted its primary listing from London to New York in 2008.

Mr Ratner was reported late last year to be seeking to buy back Signet’s British H Samuel and Ernest Jones chains. Signet denied it was in discussions over a sale and has since indicated that it plans to retain the UK brands.