Signet Jewelers Limited (NYSE:SIG) shares plunged more than 22% after the jewellery business unveiled disappointing holiday sales.
The company said for the 10 weeks ending January 11, its same-store sales (SSS) decreased by approximately 2%, citing underperformance in fashion gifting and a shift in consumer preferences to lower-priced items.
Average unit retail (AUR) prices rose by 5% due to higher sales in bridal and fashion categories, but lower traffic and conversion rates impacted overall sales.
Signet also revised its fourth quarter fiscal 2025 guidance, now expecting total sales between $2.32 billion and $2.34 billion, compared to the prior forecast of $2.38 billion to $2.46 billion.
Adjusted operating income expectations were lowered to $337 million to $347 million, down from $397 million to $427 million, while adjusted EBITDA was revised to $381 million to $391 million, from $441 million to $471 million.
"Our holiday results of approximately -2% SSS reflect peak selling days leading up to Christmas that were below forecast,” Signet chief financial and operating officer Joan Hilson said in a statement.
“Merchandise margin expanded, but less than expected due to the lower fashion mix and a stronger customer response to promotional items. These dynamics are reflected in our updated guidance.”
Shares of Signet Jewelers traded down 22.6% at about $57 on Tuesday morning.