Investing.com — Shares of Signet Jewelers (NYSE:) tumbled over 15% premarket Tuesday following the company’s announcement of a reduction in its fourth-quarter guidance for fiscal year 2025.
The world’s largest retailer of diamond jewelry reported weaker holiday sales, with same-store sales (SSS) for the ten weeks ending January 11, 2025, declining by approximately 2%.
While the company saw a positive performance in engagement and service sales and a 5% increase in Average Unit Retail (AUR) in both the Bridal and Fashion categories, fashion gifting underperformed.
“Consumers gravitated to lower price points even more than anticipated,” said Joan Hilson, Chief Financial and Operating Officer, citing merchandise assortment gaps that hindered the company’s ability to meet these trends.
The weaker sales and lower-than-expected merchandise margin were key factors behind the company’s updated outlook.
Signet now projects fourth-quarter total sales of $2.32 to $2.34 billion, down from the previous forecast of $2.38 to $2.46 billion.
Same-store sales are expected to fall between -2.5% to -2.0%, a stark contrast to the prior forecast of flat to 3% growth.
Adjusted operating income is now expected to range from $337 million to $347 million, significantly below the previous estimate of $397 million to $427 million.
Despite these setbacks, CEO J.K. Symancyk remains optimistic, emphasizing opportunities for reshaping the company’s customer-facing strategies in marketing, product design, and innovation.
“I see meaningful potential to unlock shareholder value through the strength of both our brand portfolio and financial foundation,” Symancyk said.
