2023-06-08 07:50:18 ET
Signet Jewelers ( NYSE: SIG ) shares slid over 10% before the bell on Thursday after the company called out slowing engagement trends and weak Mother’s Day sales.
The Bermuda-based jewelry retailer reported a 93% decline in sales year over year to $1.7B as same store sales slipped 13.9% from the prior year quarter. On an adjusted basis, the retailer notched $1.78 in earnings per share. Both figures topped the consensus estimates of $1.49 in earnings per share and $1.65B in revenue for the quarter.
"Our Signet team delivered our revenue and bottom-line commitments in Q1 despite macroeconomic headwinds that worsened late in the quarter. In line with our predictions, there were fewer engagements in the quarter resulting from COVID's disruption of dating three years ago,” CEO Virginia C. Drosos said. “We are proactively addressing the dynamic retail climate, leveraging our team's agility and flexible operating model to raise our cost savings target by up to $150M while maintaining strategic investments.”
In line with the shifting environment, management trimmed its full-year outlook. The cut to guidance accounts for a “recent deceleration of trends that have persisted into the second quarter, including a softer than expected Mother's Day” and a broadly promotional environment.
The company now expects between $7.1B and $7.3B in sales for the year and from $9.49 to $10.09 in earnings per share. Both projections were slashed from forecasts of $7.67B to $7.84B and diluted EPS of $11.07 to $11.59 offered in March. The updated forecasts fell well short of consensus expectations for EPS and revenue set at $11.11 and $7.73B, respectively.
Shares of Signet Jewelers ( SIG ) slipped 10.75% in premarket action on Thursday.
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Signet stock slumps on slashed full-year forecasts