Signet Jewelers Limited has announced its preliminary sales for the ten weeks ended January 11, 2025 ("holiday") and provided updated guidance for the fourth quarter of fiscal year 2025. The company reported a decrease of approximately 2% in total same store sales (SSS) compared to the previous year.
The holiday fiscal 2025 sales highlights include an increase of approximately 5% in merchandise average unit retail (AUR) despite lower traffic and conversion. However, the company's engagement and service sales were within expectations, and they saw an increase in both bridal and fashion, while fashion gifting underperformed as consumers gravitated to lower price points.
As a result of these dynamics, Signet Jewelers has updated its fourth quarter fiscal 2025 guidance. The updated guidance for total sales is in the range of $2.320 to $2.335 billion, with an adjusted operating income of $337 to $347 million and adjusted EBITDA of $381 to $391 million. This is a decrease compared to the prior fourth quarter guidance, which had total sales in the range of $2.38 to $2.46 billion, same store sales flat to 3%, adjusted operating income of $397 to $427 million, and adjusted EBITDA of $441 to $471 million.
The company's Chief Financial and Operating Officer, Joan Hilson, commented that merchandise margin expanded but less than expected due to the lower fashion mix and a stronger customer response to promotional items. The CEO, J.K. Symancyk, also emphasized the opportunity to reshape customer-facing strategies in the areas of marketing, product design, and assortment innovation to drive sustainable organic growth.
Signet Jewelers Limited operates approximately 2,700 stores primarily under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, James Allen, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones. Following these announcements, the company's shares moved -22.2%, and are now trading at a price of $57.57. Check out the company's full 8-K submission here.
