Signet Jewellers lowers Q4 guidance amid dip in holiday sales

Signet Jewellers has lowered its fourth quarter guidance following lower-than-expected holiday sales.

Its same store sales fell 2% for the 10 weeks ended 11 January 11, 2025.

Signet Jewellers stated that although its engagement sales were within expectations and its average unit retail (AUR) increased in both bridal and fashion, its fashion gifting underperformed as consumers “gravitated to lower price points even more than anticipated in a continued competitive environment”.

As a result, the group has revised its Q4 guidance, now projecting total sales to range between $2.32bn and $2.34bn (£1.89bn and £1.90bn), down from the initially reported estimate of $2.38bn to $2.46bn (£1.94bn to £2bn).

Same-store sales are also expected to decline 2% to 2.5%, compared with the previous expectation of flat to 3% growth.

Additionally, adjusted operating profit is expected to be between $337m and $347m (£270.4m and £282.3m) compared with $397m to $427m (£323.02m to £347.4m).

Lastly, the group’s EBITDA is expected to be between $381m to $391m (£310m to £318.1m), down from the original $441m to $471m (£358.8m to 383.2m).

JK Symancyk, chief executive officer, said: “While there were positives in the underlying business performance during Holiday, I believe we have the opportunity to reshape our customer-facing strategies in the areas of marketing, product design, and assortment innovation.

“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.”