Signet Jewellers, the Bermudian-domiciled parent of Kay, Zales, Jared and other global retail banners, has returned to profit in the third quarter, reporting a sharp rise in net income as stronger merchandise margins and tighter cost controls helped offset a choppy retail environment.

The company posted net income of $20 million for the 13 weeks ended November 1, up from $7 million a year earlier, according to results filed this month. Earnings available to common shareholders also improved to $20 million, compared with $5.4 million in last year’s third quarter, when preferred-share dividend payments reduced the bottom line.

The turnaround was driven largely by improved profitability on the showroom floor. Operating income rose to $23.9 million, up from $9.2 million a year ago, as Signet expanded gross merchandise margins and benefited from leverage on fixed costs. The company said its balanced diamond strategy and more stable pricing environment supported higher average retails across its three major retail banners.

Year-to-date results also showed meaningful improvement. For the 39-week period, Signet reported net income of $44.4 million, a reversal from a $39.4 million loss in the prior year. Last year’s deficit was magnified by non-cash charges, including impairments and a deemed dividend tied to the redemption of preferred shares, which did not recur this year.

Diluted earnings per share rose to 49 cents in the quarter, up from 12 cents. On a year-to-date basis, diluted EPS reached $1.06, compared with a loss of $3.07 last year.

JK Symancyk, chief executive, said Signet enters the holiday season with “a focused assortment in key categories and price points”, while Joan Hilson, chief financial officer, noted continued discipline in working-capital management.

Meanwhile, Mr Symancyk told investors at the Raymond James 2025 TMT & Consumer Conference on Tuesday that the company is trying to “honour the legacy” of its key banners — including Kay, Zales, Jared and Blue Nile — while rebuilding a stronger customer story. He said Signet is pushing hard into fashion jewellery, where it holds only “mid-single-digit share” despite fashion being the largest part of the industry.

Mr Symancyk also highlighted a major drive for simplification, saying the group “was overly complex”, prompting the removal of a third of its senior leadership to sharpen execution. The overhaul, he said, has helped deliver three consecutive quarters of growth and the strongest performance of the year so far, with Jared showing the fastest brand-perception turnaround.

Earlier this year, The Daily Mail reported that Gerald Ratner, CEO of the company before its name change in 1993, is seeking to reclaim its British banners, H Samuel and Ernest Jones, three decades after his infamous 1991 quip about the quality of a company product that wiped £500 million (about $665 million) off the Ratner Group’s value and forced his resignation. The company redomiciled to Bermuda in 2008, the same year it moved its primary stock exchange listing from London to New York.

Mr Ratner, backed by British investors, is in talks to buy back the brands from Signet, even as the Bermudian-based company tries to consolidate its banners into a stronger brand. Mr Ratner is aiming to return as chairman if a deal is reached, the Mail reported.