On Thursday, Signet Jewelers Ltd  (NYSE:SIG) stock plunged after the company reported its fiscal third-quarter 2025 earnings.

Signet reported a sales decline of 3.1% year-on-year to $1.35 billion, missing the analyst consensus estimate of $1.37 billion. Adjusted EPS of $0.24 missed the analyst consensus estimate of $0.33.

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Overall same-store sales fell 0.7% in the quarter. North American Same-store sales for the segment decreased by 0.8% compared to last year, while the International segment same-store sales grew by 1.6%

North America segment sales amounted to $1.3 billion, a 2.3% decrease Y/Y. International sales fell 11.4% Y/Y to $83.3 million.

The gross margin of 36.0% remained flat Y/Y. The operating income for the quarter was $9.2 million versus $13.3 million last year, with an operating margin of 0.7%, down from 1.0% last year.

Signet Jewelers held cash and equivalents of $157.7 million as of November 2, 2024.

Signet Jewelers' Board declared a quarterly cash dividend of $0.29 per share.

In the third quarter, Signet Jewelers repurchased approximately 743,000 common shares at an average cost per share of $89.54, or $66.5 million. As of November 2, 2024, the company is net debt positive by $95.3 million.

CFO Joan Hilson held the competitive environment responsible for the third-quarter print. The updated fiscal 2025 guidance reflects further integration challenges in Blue Nile and James Allen, leadership transition costs, and the accretive impact from the early completion of preferred shares redemption, Hilson added.

Guidance: Signet Jewelers expects fourth-quarter sales of $2.38 billion–$2.46 billion, versus the consensus of $2.45 billion. Same-store sales growth of flat to 3%.

SIG reduced its fiscal 2025 sales outlook to $6.74 billion-$6.81 billion (prior $6.66 billion-$7.02 billion), against the consensus of $6.82 billion. It expects a same-store sales decline of 3% to 2% (prior (4.5)%-0.5%).

Signet Jewelers expects fiscal 2025 adjusted EPS of $9.62-$10.08 (prior $9.90-$11.52), compared to the street view of $10.59.

Price Action: SIG stock is down 14.6% at $84.36 at the last check Thursday.

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