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Signet Crashes after Lowering Guidance
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Signet Crashes after Lowering Guidance

Shares of Signet Jewelers (NYSE: SIG) crashed in pre-market trading at the time of writing on Thursday after the diamond jewelry retailer lowered its FY24 guidance.

Joan Hilson, Signet’s Chief Financial, Strategy, and Services Officer commented, “Our updated Fiscal 2024 guidance reflects a recent deceleration of trends that have persisted into the second quarter, including a softer than expected Mother’s Day, increasing macro-economic pressures on consumers at more price points, and deeper competitive discounting.”

In FY24, Signet’s total sales are expected to be between $7.10 billion and $7.30 billion versus its prior estimates in the range of $7.67 billion to $7.84 billion while diluted earnings are likely to range from $9.49 to $10.09 per share as compared to the previous forecast between $11.07 and $11.59 per share.

The lowered FY24 guidance also fell short of consensus estimates of earnings of $11.11 per share on revenues of $7.73 billion.

In the fiscal second quarter, Signet has projected revenues in the range of $1.53 billion to $1.58 billion while operating income is expected to be between $85 million and $100 million.

In Q1, Signet generated revenues of $1.7 billion, down by 9.3% year-over-year but ahead of Street estimates of $1.65 billion. Adjusted diluted earnings came in at $1.78 per share versus $2.86 in the same period last year and exceeding analysts’ estimates of $1.49 per share.

Analysts are cautiously optimistic about SIG stock with a Moderate Buy consensus rating based on two Buys and three Holds.

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