11:24 AM EST, 12/05/2024 (MT Newswires) -- Shares of Signet Jewelers ( SIG ) tumbled intraday Thursday after the jewelry store operator reported weaker-than-expected fiscal third-quarter results and lowered its full-year outlook amid soft sales in its North American market.

Revenue fell to $1.35 billion for the three-month period ended Nov. 2 from $1.39 billion a year ago and was below the $1.37 billion average analyst estimate in a FactSet survey. Same-store sales declined 0.7%, led by a 0.8% decrease in its North America segment that was partially offset by growth in international operations.

Adjusted earnings per share was $0.24, holding steady year over year. Analysts had projected $0.32. Shares of Signet Jewelers ( SIG ) fell 12% in Thursday trade.

The results were within management's expectations and reflect a nearly three-point sequential improvement in same store sales, Chief Financial and Operating Officer Joan Hilson said in a statement. "New fashion merchandise, which carries a higher transaction value, and continued recovery in engagement, combined to maintain both average transaction value and merchandise margin in a competitive environment," she said.

For fiscal 2025, Signet now expects sales between $6.74 billion and $6.81 billion on a 2% to 3% decline in same store sales. That compares with the outlook it provided in September of sales in the $6.66 billion to $7.02 billion range and for comparable sales to be down 4.5% to up 0.5%. Analysts surveyed by FactSet are projecting sales of $6.81 billion in the ongoing year.

The parent company of Zales, Jared and Kay Jewelers lowered its adjusted EPS guidance to between $9.62 and $10.08 from a prior range of $9.90 to $11.52. The average estimate on FactSet is for non-GAAP EPS of $10.36.

The updated outlook reflects "further integration challenges in Blue Nile and James Allen, leadership transition costs, and the accretive impact from the early completion of preferred shares redemption," according to Hilson.

Fourth-quarter revenue is projected to range between $2.38 billion and $2.46 billion while same store sales are expected to be flat to up 3%. Analysts are expecting $2.44 billion in sales in the current quarter.

Price: 86.83, Change: -11.90, Percent Change: -12.05