Shares of Jared, Zales, and Kay Jewelers parent Signet Jewelers (SIG) plunged 22% Tuesday after the biggest diamond jewelry retailer cut its guidance on weak holiday demand.

Signet's preliminary same-store sales for the 10 weeks ending Jan. 11 were down about 2%, pointing to "peak selling days leading up to Christmas that were below forecast," Chief Financial and Operating Officer Joan Hilson said.

Hilson noted that "fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment."

Merchandise Margin Rises Less Than Expected

Hilson added that while merchandise margin was up, it rose less than expected because of "lower fashion mix and a stronger customer response to promotional items."

Because of the results, Signet lowered its fourth-quarter sales estimate to $2.32 billion to $2.335 billion from the previous outlook of $2.38 to $2.46 billion. It sees same-store sales down 2.5% to 2.0%, reduced from the earlier prediction of flat to 3% higher.

Signet Jewelers shares sank to their lowest level since October 2022.