Signet Jewelers Poised for 'Modest' Fiscal Q2 Beat, Raise, UBS Says

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Signet Jewelers (SIG) is positioned for a "modest" fiscal Q2 beat and raise amid improving traffic and strong fine jewelry growth trends, UBS Securities said in a Monday note.

The company is set to release its fiscal Q2 results on Sept. 9 and UBS estimated a $0.10 beat in EPS and a potential increase in the lower end of Signet's fiscal 2027 EPS guidance of $9.20 to $11. Signet could also issue a fiscal Q3 comparable sales outlook of a low-single digit growth, UBS added.

UBS Evidence Lab and industry data indicated solid trends in the sector during the company's fiscal Q2 period, as fine jewelry continues to be resilient in the higher-income consumer bracket, according to the note.

However, risks to H2 comparable sales remain as macro pressures weigh on low to middle income consumers, UBS noted.

UBS raised its price target on Signet Jewelers to $122 from $121, with a but rating.

Price: 83.57, Change: +2.20, Percent Change: +2.70

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