Signet Jewelers Shares Plummet 21% After Weak Holiday Sales

Signet Jewelers experiences significant pre-market losses as weak holiday sales lead to lower forecasts. The adjustment comes after a reported decrease in same-store sales for the holiday period.

Date: 14-01-2025

AI Rating: 4

Weak Holiday Sales Impact Forecast
Signet Jewelers Limited (SIG) reported weak holiday sales, with same-store sales decreasing by approximately 2% compared to the previous year. This decline in sales forecasts contributed to a significant drop in share price during pre-market trading.

Adjusted Operating Income and EBITDA
The company lowered its outlook for adjusted operating income to $337 million to $347 million, down from the previous estimate of $397 million to $427 million. Similarly, adjusted EBITDA is now expected to range from $381 million to $391 million, compared to the prior forecast of $441 million to $471 million. These adjustments indicate a reduction in profitability expectations and could negatively influence investor sentiment.

Implications for Investors
The decrease in forecasts for both total sales and same-store sales is likely to lead to a reassessment of the company's growth potential by investors. The gap in merchandise assortment at key price points and the overall competitive environment may further hinder sales recovery.

Stocks: SIG