Signet Jewelers Cuts Sales Forecast Amid Decline

Signet Jewelers has experienced a significant decline in share prices following a cut to its fourth-quarter sales forecast, citing weaker-than-expected holiday performance and a shift in consumer purchasing behavior towards cheaper jewelry options. The retailer's anticipated sales now range between $2.32 billion and $2.335 billion, down from earlier estimates, and same-store sales are projected to drop by 2% to 2.5%. This trend reflects broader challenges in the retail sector for 2024, where consumer spending growth has been the slowest in five years, with average transaction sizes declining as shoppers tighten their budgets. Five Below reported an 8.7% increase in total sales, but comparable store sales fell by over 3%, indicating a mixed holiday performance across different retailers. The overall retail landscape is under pressure, with many consumers opting for lower-priced goods as inflationary strains persist. This environment highlights the ongoing financial challenges faced by low- and mid-tier households.