Signet Jewellers, the Bermudian-domiciled retail group, reported a sharp improvement in profitability for fiscal 2026, as higher margins and pricing gains offset a subdued sales environment.

The company, which owns Kay, Zales and Jared in the United States and H Samuel and Ernest Jones in the United Kingdom, posted full-year sales of $6.81 billion, up 1.6 per cent, with same-store sales rising 1.3 per cent, marking a return to growth after declines in the prior year.

Net income climbed to $294.4 million, from $61.2 million a year earlier, while diluted earnings per share improved to $7.08 from a loss in fiscal 2025.

Operating income increased to $393.1 million, with operating margins expanding to 5.8 per cent from 1.7 per cent, driven by higher average selling prices and improved gross margins.

Fourth-quarter results were more mixed, with sales of $2.35 billion broadly flat and same-store sales down 0.7 per cent. However, operating income more than doubled to $318.3 million on the back of continued margin strength.

The company generated $525 million in free cashflow during the year and ended the period with $874.8 million in cash and total liquidity of about $2 billion. Consequently, Signet increased its quarterly dividend by nearly 10 per cent to 35 cents per share and repurchased $205 million of stock over the year.

Strategically, the group is streamlining its operations, including plans to close the James Allen website and integrate it into the Blue Nile platform, while reducing its store footprint.

Looking ahead, Signet forecast fiscal 2027 sales of between $6.6 billion and $6.9 billion, with same-store sales ranging from a 1.25 per cent decline to 2.5 per cent growth. The report cited uncertainty around tariffs, commodity costs and consumer demand.

“FY27 will focus on accelerating core performance through sharper brand differentiation, broader customer reach, and a more seamless in‑store and digital experience. As we continue to advance our Grow Brand Love strategy into its second year, we expect to further strengthen our foundation for sustainable long‑term growth and drive increased shareholder value,” said JK Symancyk, chief executive.

The results come as Signet continues to reshape its international operations, including losses linked to the divestiture of its British prestige watch business and a broader reduction in store footprint, as the group focuses on its core North American brands.

In December, it was reported that Gerald Ratner has launched a bid to buy back the British arm of the jewellery business he once led. The brands were formerly part of Ratner Group, which Mr Ratner left in the early 1990s, before the company rebranded and redomiciled in Bermuda.

In December, Mr Ratner said he is backed by a mainly British consortium and would refocus the business on lower-priced jewellery offering “fantastic value for money”.

Signet said in December that it was not in talks over a sale.

“While it is not our policy to comment on rumours or speculation, we are not engaged in discussions related to a sale of our UK brands,” a company spokesperson told The Royal Gazette.