Highly Short Stock Signet Jewelers Soars After Resilient Quarter

Signet Jewelers Limited (NYSE:SIG) shares traded higher on Thursday after posting strong fourth-quarter results and raising its dividend. The stock surged more than 13% during the session. Heavy trading supported the move. High short interest, above 26% of the float, likely added buying pressure. Trading volume reached about 1.54 million shares. This was well above the 100-day average of 870,236 shares. As a result, activity remained elevated. The company has a short float of 5.51 million shares. This represents 26.72% of its tradable float. Therefore, bearish positioning remains very high. Quarterly Results Signet reported solid demand across key categories. However, margins showed some pressure. Adjusted earnings per share came in at $6.25. This beat the analyst estimate of $6.11. Revenue reached $2.345 billion, slightly above expectations of $2.342 billion. Average unit retail increased about 5%. Growth came from both Bridal and Fashion segments. Operating income rose to $318.3 million, up from $152.6 million a year ago. However, adjusted operating income declined to $327.3 million from $355.5 million. Adjusted operating margin fell to 14% from 15.1%. Gross profit was $985.1 million. This was down by about $17 million year over year. Gross margin declined to 42.0% due to lower merchandise margins and fixed-cost deleverage. CEO J.K. Symancyk said the company continues to execute its growth strategy. He added that the focus remains on long-term value creation. Balance Sheet Strength Cash and cash equivalents stood at $874.8 million as of Jan. 31, 2026. This was up from $604 million a year earlier. Total liquidity reached about $2 billion. Inventory ended the year at $1.94 billion. Dividend Increase The board declared a quarterly dividend of 35 cents per share. The payout is scheduled for May 22, 2026. This marks nearly a 10% increase. It is also the fifth straight year of dividend growth. Outlook Signet expects first-quarter sales between $1.53 billion and $1.57 billion. This compares with the analyst estimate of $1.559 billion. For fiscal 2027, the company forecasts adjusted EPS of $8.80 to $10.74. Analysts expect $10.59. Sales are projected between $6.6 billion and $6.9 billion. This is slightly below the $6.896 billion consensus estimate. Management said the outlook reflects commodity costs, tariffs, and consumer trends. It also includes the transition of James Allen within the portfolio. SIG Price Action: Signet Jewelers shares were up 13.05% at $89.05 at the time of publication on Thursday, according to Benzinga Pro data. Photo by JHVEPhoto via Shutterstock