Signet Jewelers (SIG -1.19%) stock wasn't exactly a jewel of an investment as 2024 bowed out. The specialty retailer's share price eroded by almost 20% in December, which, as it covers the holiday period, often proves to be a boon for the sector. But investors were discouraged by the company's latest set of quarterly earnings, and a subsequent price target cut from an analyst only highlighted the disappointment.

A lack of luster

Signet, a tightly focused conglomerate that owns the Zales, Kay, and Jared brands, unveiled its results at the beginning of December for the third quarter of fiscal 2025. Total sales came in at just under $1.35 billion, which was down by 3% from the same quarter of fiscal 2024. That was on the back of a 0.7% slump in same-store sales.

As for profitability, on a non-GAAP (adjusted) basis the company's operating income fell more steeply, declining by 32% to just over $16 million. Adjusted earnings per share remained unchanged, at $0.24.

Both line items landed short of the consensus analyst estimates. On average, pundits tracking Signet stock were modeling $1.37 billion in sales, and per-share earnings of $0.31.

In the company's earnings release, management sounded a somewhat pessimistic note about the immediate future.

It cut its full-year fiscal 2025 guidance, citing continued "integration challenges" with the company's online Blue Nile sales channel and its James Allen brand. It's now targeting total sales of $6.7 billion to just over $7 billion. Adjusted earnings per share are forecast at $9.62 to $10.08.

Despite the forgettable quarter, Signet still has bulls in its corner. One is analyst Mauricio Serna, although he's less enthusiastic about the stock than he used to be. Just after those quarterly results were published, Serna cut his price target to $125 per share from the preceding $136. He did, however, maintain his buy recommendation on Signet.

We're now in the money quarter

Overall, the retail sector did fairly well as 2024 closed. Sales ticked up for both the Black Friday and December holiday periods, so perhaps Signet's fiscal first quarter of 2026, which will include both, are going to show some life.

I'd be a bit concerned, though, as U.S. consumers seem to be feeling a bit better about the macroeconomy, with recent rate cuts inspired by declines in the growth of inflation. It feels to me that Signet should be doing better, considering that trend.