Signet Jewelers Stock Tumbles After Company Cuts Outlook on Soft Holiday Sales | Global News Avenue

Shares of Jared, Zales and Kay Jewelers parent company Signet Jewelers (explainShares of the largest diamond jewelry retailer plunged 22% on Tuesday after it lowered its guidance due to weak holiday demand.

Signet’s Preliminary Same store sales Chief financial and operating officer Joan Hilson said sales fell about 2% in the 10 weeks to January 11, indicating “the peak pre-Christmas sales day was lower than expected”.

“Fashion gifts underperformed as consumers preferred lower prices amid continued competition, even exceeding expectations,” Hilson noted.

Merchandise profit margins increased less than expected

Hilson added that while the commodity profit rose, but by less than expected due to “a smaller fashion mix and stronger customer response to promotional items.”

In light of the results, Signet lowered its fourth-quarter sales forecast to $2.32 billion to $2.335 billion from the previous range of $2.38 to $2.46 billion. Same-store sales are expected to fall 2.5% to 2.0%, down from the previous forecast of flat to 3% higher.

Signet Jewelers shares fell to their lowest level since October 2022.