Signet Jewelers Limited (NYSE:SIG), the world's largest retailer of diamond jewelry, announced the repurchase of half of its Series A Convertible Preference Shares from Leonard Green & Partners, a leading private equity firm.

This transaction, valued at approximately $414 million, will significantly reduce Signet's diluted share count by approximately 4.1 million shares, or 7.6%.

The preferred shares, set to mature in November 2024, were convertible into around 8.2 million common shares.

Following the repurchase, Signet also amended the terms of the remaining preferred shares to allow net share settlement, further reducing its diluted share count by approximately 2.9 million shares, or 5%.

This strategic financial move is expected to enhance shareholder value and is reflective of Signet's solid cash position, having closed fiscal 2024 with $1.4 billion in hand.

The amendments have led Signet to increase its fiscal 2025 non-GAAP diluted EPS guidance by 9% to 10%, signaling confidence in its continued growth and financial health.