The jewellery retailer, which operates approximately 2,700 stores under brands including Kay Jewelers, Zales, Jared, and Diamonds Direct, initially anticipated a 3% increase in same-store sales (SSS). However, following underwhelming results over the 10-week period ending January 11, the company now expects a 2% decline.
As a result, Signet has adjusted its fourth-quarter revenue forecast to a range of $2.320 billion to $2.335 billion, down from the previously estimated $2.38 billion to $2.46 billion. Adjusted EBITDA projections have also been lowered to between $381 million and $391 million, reflecting a significant decline from the earlier forecast of $441 million to $471 million.
The company attributed the weaker performance to a shift in consumer spending, with shoppers favouring lower price points more than anticipated. Despite this, engagement and service-related sales remained steady, and bridal and fashion jewellery saw an increase in average selling prices.
With a competitive retail landscape and evolving consumer preferences, Signet is expected to refine its marketing strategies, product offerings, and overall customer engagement approach to drive future growth.
