Signet Jewelers Ltd ( SIG ) stocks are trading lower in the premarket session on Tuesday.

The company expects fourth-quarter sales to range between $2.32 billion and $2.335 billion. That’s down from the prior forecast of $2.38 billion to $2.46 billion, compared to the $2.45 billion estimate.

“Our holiday results of approximately -2% SSS reflect peak selling days leading up to Christmas that were below forecast,”  said Chief Financial and Operating Officer Joan Hilson.

“Merchandise margin expanded, but less than expected due to the lower fashion mix and a stronger customer response to promotional items. These dynamics are reflected in our updated guidance.”

Same-store sales for Q4 are expected to fall by 2.5%.

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Adjusted operating income for the fourth quarter is expected to be $337 million to $347 million, lower than the prior view of $397 million to $427 million.

Adjusted EBITDA for the fourth quarter is expected to be between $381 million to $391 million. That’s significantly lower than the prior guidance of $441 million to $471 million.

The company’s engagement and service sales were within expectations. Signet Jewelers ( SIG ) witnessed its AUR increase in both Bridal and Fashion.

However, fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment. 

Price Action: SIG shares are trading lower by 17% to $61.13 at last check Tuesday.

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