Signet Jewelers Ltd (NYSE:SIG) stock fell 0.85% (As on March 20, 1:58:34 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter results that beat Wall Street expectations and issued a full-year outlook that brackets current estimates, even as it flagged margin pressure and a cautious consumer environment. Management pointed to strength in bridal and fashion jewelry categories and continued momentum across its core banners, including Kay, Zales and Jared, as average unit retail prices increased in the mid-single-digit percentage range. However, the company highlighted ongoing headwinds from elevated gold prices, tariff-related cost pressures and cautious consumer spending, which weighed on quarterly margins and earnings. Same store sales declined 0.7% in the quarter. Merchandise average unit retail (“AUR”) was up approximately 5% to Q4 of FY25, with growth in both Bridal and Fashion. Cash flow from operating activities for Fiscal 2026 was $678.8 million, compared to $590.9 million in the prior year. Capital expenditures for Fiscal 2026 were $153.5 million. Cash and cash equivalents were $874.8 million as of January 31, 2026, compared to $604.0 million as of prior year end, with total liquidity of approximately $2.0 billion. Inventory ended the year at $1.94 billion, approximately flat to last year.

SIG in the first quarter of FY 26 has reported the adjusted earnings per share of $6.25, beating the analysts’ estimates for the adjusted earnings per share of $5.93. The company had reported the adjusted revenue decline of 0.3 percent to $2.35 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $2.34 billion. Fourth quarter adjusted operating income was $327.3 million, down from $355.5 million in the prior year period. Gross margin declined 60 basis points to 42.0% of sales, reflecting a modest merchandise margin decline and deleverage of fixed costs.

Additionally, Signet’s Board increased the quarterly dividend nearly 10% to $0.35 per share, marking the fifth consecutive year of dividend increases.

Looking ahead, same-store sales is expected to decline 1.25% to growth of 2.5%. Signet forecast adjusted EPS of $8.80 to $10.74, with a midpoint of $9.77 that falls below the analyst consensus of $10.59. The company projected revenue of $6.6 billion to $6.9 billion, with the $6.75 billion midpoint at the low end of the $6.9 billion consensus estimate. The outlook reflects uncertainty around commodity costs, tariffs and the ongoing transition of its James Allen business, which management indicated could continue to pressure results in the near term.