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.
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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.