Signet Jewelers, the parent company of Kay, Zales, and Jared, reported second-quarter earnings of $2.19 per share, beating the expected $1.74. This strong performance has led to a revised full-year guidance of $10.45 to $12.15 per share, up from the previous $9.20 to $11.00.
The company’s success is particularly notable as it operates in the mall channel, which sells more diamonds by unit than any auction house or boutique group in America. This channel’s performance is a key indicator for the entire supply chain.
Signet’s Strong Performance and Its Impact
Signet’s earnings beat was partly due to a $15 million tariff refund, $13 million more than anticipated. However, even without this one-time benefit, the company’s operating performance remains robust. The raised guidance indicates that Signet’s diamond and bridal demand remained strong throughout the summer, a critical period for the industry. For industry insiders, Signet’s performance is a more reliable indicator than wholesale indices, as it reflects actual orders rather than market sentiment.
Gold’s Recent Decline
Spot gold prices have been declining for three consecutive weeks, currently at $4,347.78 per ounce, up 0.71 percent on the day but masking a weekly loss of nearly 2 percent. This pause in gold’s record-breaking rally is attributed to a shift in momentum, with physical demand remaining steady but speculative interest waning. The central banks’ continued accumulation through the summer supports an orderly market despite the decline.
The Rapaport 1-carat index posted its first increase in 15 months, up 0.5% in August. The 1-carat lab-grown diamond price sits around $680, with most stones trading between $590 and $770, down more than 30% since March 2025.
Swiss watch exports in July reached CHF 2.63 billion (about $3.29 billion), a 10% year-on-year increase and the third consecutive month of growth. The United States drove this growth with a 27% rise in demand, France with 105%, and the UK with 10%.
The Shift in Consumer Preferences
Recent trends show a shift from raw materials like gold to finished goods, such as jewelry and watches. Signet’s strong performance reflects increased demand for diamond and bridal products. Swiss watch exports grew by 10% year-over-year in July, with the U.S. contributing a 27% rise. Phillips New York’s record-breaking $75.8 million watch auction in June, with 16 lots exceeding $1 million, further shows this trend. Patek secondary prices are up 19% year over year, with value retention at 15.4%.
Signet’s guidance indicates sustained demand, and the October Rapaport count and September Swiss export figures will provide further clarity.
