Shares of Signet Jewelers Ltd.
SIG,
tumbled 10.7% in premarket trading Thursday, after the diamond jewelry retailer provided downbeat sales and profit guidance, as consumers continue to shift away from discretionary spending amid macroeconomic challenges. The company said it was raising its cost-cutting target by $150 million as it deals with the “dynamic retail climate.” Signet said it expects fiscal second-quarter sales of $1.53 billion to $1.58 billion, below the FactSet consensus of $1.75 billion. For fiscal 2024, the company expects earnings per share of $9.49 to $10.09, below the FactSet consensus of $11.11, and projects sales of $7.10 billion to $7.30 billion, which is below expectations of $7.73 billion. For the fiscal first quarter, EPS excluding nonrecurring items fell to $1.78 from $2.86 but topped the FactSet consensus of $1.49; net sales fell 9.3% to $1.67 billion, above expectations of $1.65 billion; and same-store sales dropped 13.9% to miss expectations of a 12.6% decline. The stock has gained 2.2% year to date through Wednesday, while the S&P 500
SPX,
has advanced 11.2%.
