Signet Jewelers (SIG) shareholder Select Equity Group has called on the diamond jewelry retailer to assess strategic options, including a sale, saying the company's shares remain undervalued amid "operational missteps."

Select Equity expressed disappointment over Signet's performance of late and management's "governance shortfalls," including declines in same-store sales for 11 straight quarters, according to a letter to the Kay Jewelers parent's board. Select Equity owns a 9.7% stake in Signet.

"Management further hurt organic and online sales by botching the transition of James Allen and the recently acquired Blue Nile business onto a new technology platform just prior to the 2023 holiday selling season," the investor said in the letter, a copy of which was attached to a late Thursday Securities and Exchange Commission filing.

Select Equity highlighted a "poor record of capital allocation" at Signet, which allegedly wasted nearly $500 million to acquire unprofitable businesses, including Blue Nile, and bought back shares above their current levels.

"The public market's perception of and confidence in Signet's future prospects are clearly poor," Select Equity said.

Signet did not respond to MT Newswires' emailed request for comment. Its shares advanced 8.8% in Friday trading, but were down 33% so far this year.

"Investors appear convinced that the board and management team will erode the company's cash, competitive position and franchise," Select Equity said. "The public market clearly does not endorse the company's current strategy or the strength of its leadership."