Signet Jewelers said its holiday sales fell short of expectations, leading the company to lower its guidance for the fourth quarter of fiscal 2025. The company reported a same-store sales decline of approximately 2% during the ten-week holiday period ended 11th January 2025. While engagement and service sales met expectations and average unit retail prices increased, fashion gifting underperformed as consumers gravitated towards lower price points.
“Merchandise assortment gaps at key gifting price points impeded our ability to meet that trend,” said Joan Hilson, Chief Financial and Operating Officer. “Merchandise margin expanded, but less than expected due to the lower fashion mix.”
Despite the disappointing holiday results, Signet CEO J.K. Symancyk expressed optimism about the company’s future: “I see meaningful potential to unlock shareholder value through the strength of both our brand portfolio and financial foundation. We can build on our industry leading position in bridal while dramatically accelerating our reach into the larger fashion categories of self-purchase and gifting to drive sustainable organic growth.”
Signet Jewelers has revised its Q4 guidance. Total sales are now expected to be between $2.320 and $2.335 billion, down from the previous forecast of $2.38 to $2.46 billion. Same-store sales are projected to decline between 2.5% and 2.0%, compared to the previous expectation of flat to 3% growth. Adjusted operating income is now estimated to be in the range of $337 to $347 million, lower than the prior guidance of $397 to $427 million. Finally, adjusted EBITDA is expected to be between $381 and $391 million, down from the previous forecast of $441 to $471 million.