Signet Jewelers Stock Plunges as Holiday Sales Miss Marks

Signet Jewelers (NYSE: SIG) shares took a nosedive on Thursday after the company reported disappointing holiday sales and cut its full-year outlook. The jewelry retailer, which operates brands like Kay Jewelers, Zales, and Jared, blamed integration challenges with its recent acquisitions of Blue Nile and James Allen for the shortfall.

The company reported a 3% year-over-year drop in third-quarter sales to $1.35 billion, falling short of the $1.37 billion consensus estimate. Earnings per share (EPS) of $0.12 also missed the projected $0.33. Signet Jewelers also lowered its fiscal 2025 guidance, projecting sales of $6.74 billion to $6.81 billion and adjusted EPS of $9.62 to $10.08, down from its prior forecast of $6.66 billion to $7.02 billion and $9.90 to $11.52, respectively.

Chief Financial and Operating Officer Joan Hilson attributed the lower-than-expected sales and earnings to "integration challenges in Blue Nile and James Allen, leadership transition costs, and the accretive impact from the early completion of preferred shares redemption." Signet Jewelers' CEO Virginia Drosos retired last month, and was replaced by J.K. Symancyk, previously PetSmart CEO.



The company's shares plummeted 12% on Thursday, extending a recent losing streak that has seen the stock fall more than 20% in the past month. Investors appear concerned about the company's ability to integrate its recent acquisitions and return to growth, as well as the potential impact of a leadership change on its long-term prospects.

As Signet Jewelers works to address its integration challenges and navigate the competitive retail landscape, investors will be closely watching the company's progress. The jewelry retailer's ability to bounce back from this setback and regain investor confidence will be crucial in determining the future of its stock price.