Signet Jewelers Stock Plunges as Holiday Sales Disappoint

Signet Jewelers (NYSE: SIG) shares took a nosedive on Tuesday, January 16, 2025, after the company reported weak holiday sales and cut its fourth-quarter guidance. The stock plummeted over 20% following the news, marking its worst day since October 2022. The parent company of Jared, Zales, and Kay Jewelers stores cited a shift in consumer preferences towards lower-priced items and a competitive retail environment as the primary reasons for the disappointing sales performance.



The company's preliminary same-store sales for the 10 weeks ending January 11, 2025, were down about 2%, reflecting peak selling days leading up to Christmas that were below forecast. Signet Chief Financial and Operating Officer Joan Hilson noted that fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment. As a result, the company 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 also reduced its adjusted operating income projection to $337 million to $347 million from $397 million to $427 million.



Signet Jewelers' shares sank to their lowest level since October 2022, reflecting investor concerns about the company's ability to adapt to changing consumer preferences and maintain profitability in a competitive retail environment. The company's weak holiday sales performance and reduced guidance for the fourth quarter suggest that Signet may face challenges in the coming quarters as it works to address these issues.



In response to the disappointing holiday sales performance, Signet Jewelers' new CEO, J.K. Symancyk, stated that the company has the opportunity to reshape its customer-facing strategies in the areas of marketing, product design, and assortment innovation. As the company works to address the challenges posed by the shift in consumer preferences and a competitive retail environment, investors will be closely watching Signet Jewelers' efforts to turn around its fortunes and regain momentum in the market.