Signet sinks after saying heightened discounting may pressure margins

Signet Jewelers said on its earnings call that while it reaffirmed 2024 guidance, there are potential impacts it is watching.” The company explained “First, the potential early redemption of further outstanding preferred shares may lower our diluted share count and reduce our preferred dividends this year, both of which would boost our adjusted diluted EPS. Second, heightened competitive discounting may pressure margins into the back half more than we expected at the beginning of the year. We are monitoring the potential impact of this discounting to our gross margins for the full year, while we work to mitigate that impact in the second half of fiscal ’25 through assortment architecture and balanced promotional strategies.” Shares of Signet are sinking 15%, or $16.71, to $91.71 in midday trading.