MW Signet Jewelers' stock drops as it faces 'competitive' environment and misses Wall Street's profit and sales estimates

By Steve Gelsi

Retailer warns its revenue may fall short of expectations in the coming quarter

Competition in the business of selling rings, bracelets, necklaces and other glittery objects took a bite out of results for Signet Jewelers Ltd., the parent of Zales and Blue Nile, as the retailer's stock fell sharply Thursday on a profit and revenue shortfall.

The company also warned it may fall short of Wall Street estimates for its fourth-quarter revenue, although the top end of its projected range would be slightly ahead of estimates.

Signet $(SIG)$ said Thursday that its third-quarter adjusted profit of 24 cents a share fell short of the FactSet consensus estimate of 32 cents a share. Its third-quarter sales of $1.35 billion missed the analyst expectation of $1.37 billion.

Signet's stock fell nearly 15% in premarket trading.

Signet faced a "competitive environment," higher transaction values on its new fashion merchandise helped its results, along with "continued recovery in engagement," the company said.

The company said it also faces "further integration challenges" in its acquisitions of Blue Nile and James Allen, as well as leadership-transition expenses.

It's now expecting fourth-quarter sales of $2.38 billion to $2.46 billion, against the analyst estimate of about $2.45 billion.

Looking back at the third quarter, sales fell 3.4% on a constant currency basis and same-store sales dropped 0.7%.

Prior to Thursday's moves, Signet's stock had fallen 8% so far in 2024, while the S&P 500 SPX has risen by 27.6%.

-Steve Gelsi

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December 05, 2024 08:34 ET (13:34 GMT)

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