Signet shares plummet after third-quarter profit, revenue miss estimates

Published 05/12/2024, 11:22 pm
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Investing.com -- Signet Jewelers (NYSE:SIG) saw its shares fall more than 12% in premarket trading Thursday after the diamond jewelry retailer missed expectations for Q3 earnings and revenue.

The company posted Q3 earnings per share (EPS) of $0.24, falling short of analysts' expectations of $0.31. Revenue for the quarter totaled $1.3 billion, also below the consensus forecast of $1.37 billion.

The company reported adjusted operating income of $16.2 million, missing the estimated $19.9 million.

Inventory levels stood at $2.14 billion at the end of the quarter.

"The Signet team delivered Q3 results within our expectations, reflecting a nearly 3-point sequential improvement in same store sales,” said Joan Hilson, Chief Financial and Operating Officer.

“New fashion merchandise, which carries a higher transaction value, and continued recovery in engagement, combined to maintain both average transaction value and merchandise margin in a competitive environment.”

For the fourth quarter of fiscal 2025, Signet provided revenue guidance in the range of $2.38 billion to $2.46 billion, compared to the $2.445 billion expected by analysts.

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