Signet Jewelers Stock Tumbles After Company Cuts Outlook on Soft Holiday Sales

Company Performance - Shares of Signet Jewelers (SIG) plunged 22% after the company cut its guidance due to weak holiday demand [1] - Signet's preliminary same-store sales for the 10 weeks ending Jan 11 were down about 2% [1] - The company lowered its fourth-quarter sales estimate to $2.32 billion to$2.335 billion from the previous outlook of $2.38 to$2.46 billion [2] - Signet sees same-store sales down 2.5% to 2.0%, reduced from the earlier prediction of flat to 3% higher [2] - Signet Jewelers shares sank to their lowest level since October 2022 [3] Market Trends - Fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment [2][4] - Merchandise margin rose less than expected due to lower fashion mix and a stronger customer response to promotional items [2] Financial Impact - Signet Jewelers reported weak holiday sales and cut its fourth-quarter guidance, sending shares tumbling more than 20% [4]