Signet Jewelers issues profit warning after third quarter loss

Signet Jewelers Ltd (NYSE:SIG) issued a profit warning after it swung to a third quarter loss on the back of lower sales.

The retailer reported a net loss of US$12.1mln, or 20 cents a share, compared to an income of US$14.8mln, or 20 cents per share, for the same period a year ago.

Total sales fell 2.5% to US$1.16bn from US$1.19bn while same-store sales declined 5%.

The group said results were hurt by weather-related impacts, system disruptions and changes associated with outsourcing its credit portfolio, particularly with the Kay Jewelers brand.

“While the identified systems issues are behind us, we expect some credit process disruption to continue and to negatively impact our fourth quarter and full-year performance,” said chief executive Virginia Drosos.

“As a result, we now expect our fourth quarter same store sales to be down low- to mid-single digits, leading to fiscal 2018 same store sales down mid-single digits and earnings ranging from $6.10 to $6.50 per share.”

Shares in the company fell 15.61% to US$75.84 in US pre-market trading. 

Story by ProactiveInvestors