Signet Jewelers slashes fourth-quarter sales forecast, shares fall more than 17% – Signet Jewelers (NYSE:SIG)

Signet Jewelry Co., Ltd. special interest group Stocks were lower in premarket trading Tuesday.

The company expects fourth-quarter sales to be between $2.32 billion and $2.335 billion. This was down from the previous forecast of $2.38 billion to $2.46 billion, compared with the previous forecast of $2.45 billion.

“Our holiday results were approximately -2% same-store sales, reflecting the peak pre-Christmas sales days, and were below expectations,” the chief financial and operating officer said. Joan Hilson.

“Merchant margins improved, but were lower than expected due to a smaller fashion mix and stronger customer response to promotional items. These dynamics are reflected in our updated guidance.

Fourth-quarter same-store sales are expected to decline 2.5%.

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Fourth-quarter adjusted operating income is expected to be $337 million to $347 million, down from the previous guidance of $397 million to $427 million.

Fourth-quarter adjusted EBITDA is expected to be in the range of $381 million to $391 million. This was significantly lower than previous guidance of $441 million to $471 million.

The company’s engagement and service sales were in line with expectations. Signet Jewelers has witnessed the growth of AUR in the field of bridal and fashion.

However, fashion gifts underperformed as consumers tended to choose lower prices, even above expectations, amid continued competition.

Price Action: SIG shares were down 17% at $61.13 as of last check on Tuesday.

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