Why a Hedge Fund Dumped Signet Stock Even as the Jeweler Lifted Its 2026 Outlook

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Jonathan Ponciano, The Motley Fool

Sun, November 30, 2025 astatine 3:09 PM CST 5 min read

New York City-based Cooper Creek Partners Management sold 890,547 shares of Signet Jewelers successful the 3rd quarter.
The worth of the presumption fell by astir $56.8 cardinal from 4th to quarter.
Following the sale, Cooper Creek inactive holds astir 858,680 shares of Signet valued astatine $82.4 million.
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On November 14, New York City-based Cooper Creek Partners Management disclosed successful a U.S. Securities and Exchange Commission filing that it reduced its presumption successful Signet Jewelers by astir 890,000 shares successful the 3rd quarter.

According to a filing submitted to the U.S. Securities and Exchange Commission connected November 14, Cooper Creek Partners Management LLC reduced its holdings successful Signet Jewelers (NYSE:SIG) by 890,547 shares during the 3rd quarter. The money held 858,680 shares astatine quarter-end, valued astatine $82.4 million.

Top holdings aft the filing:

NYSE:OI: $130.5 cardinal (4.9% of AUM)
NASDAQ:NWL: $130.2 cardinal (4.9% of AUM)
NYSE:CXW: $129.7 cardinal (4.9% of AUM)
NYSE:BBWI: $129 cardinal (4.8% of AUM)
NYSE:AAP: $107 cardinal (4% of AUM)

As of Friday, shares of Signet Jewelers were priced astatine $100.16, astir level implicit the past twelvemonth and good beneath the S&P 500's astir 14% summation successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Friday)	$100.16
Market capitalization	$4.1 billion
Revenue (TTM)	$6.8 billion
Net income (TTM)	$132 million

Signet Jewelers is simply a starring specialty retailer successful the diamond jewelry segment, with a wide portfolio of recognized brands and a web of thousands of stores and kiosks. The institution leverages some brick-and-mortar and integer channels to scope a divers lawsuit basal done brands specified arsenic Kay Jewelers, Zales, Jared, James Allen, and H.Samuel, operating some carnal stores and online platforms, and emphasizing omnichannel retailing and operational scale. Its competitory borderline lies successful marque recognition, extended distribution, and vertical integration successful diamond sourcing and polishing. The institution targets mass-market and mid-market consumers successful North America and the UK, serving customers done mall-based, off-mall, and e-commerce channels.

Cooper Creek's downsizing of Signet comes close arsenic the jewelry steadfast shows aboriginal signs of operational stabilization. Despite a depressed share-price backdrop, the retailer delivered a coagulated 2nd quarter, with improving profitability and higher full-year guidance, underscoring a concern that whitethorn beryllium connected stronger footing than the banal suggests.

Cooper Creek sold astir 890,000 shares successful the 3rd quarter, shrinking Signet from 4.8% to 2.5% of reportable assets. It besides reduced 605,000 telephone options, further signaling a lighter hazard posture adjacent arsenic the remaining equity stake—858,680 shares worthy $82.4 million—still ranks arsenic a meaningful holding for the fund.

Operationally, Signet posted $1.5 cardinal successful second-quarter sales, up 3% year-over-year, with same-store income rising 2% and spot crossed Kay, Zales, and Jared. The institution swung into affirmative territory with its operating income, which came successful astatine $2.8 cardinal for the quarter, compared to a nonaccomplishment of $100.9 cardinal successful the 2nd quarter. Management besides raised fiscal twelvemonth 2026 guidance, citing borderline enlargement and an improving tariff landscape.

So what should semipermanent investors instrumentality away? Ultimately, Signet is behaving similar a concern improving faster than its stock, offering leverage to immoderate betterment successful discretionary spending and vacation demand, and Cooper Creek's still-sizable involvement successful the institution is simply a motion of continued conviction.