Why Signet Jewelers (SIG) Is Down Today

NEW YORK (TheStreet) -- Signet Jewelers Ltd.  (SIG) closed out the trading day Thursday with a 7.58% decrease to a one-month low of $73.63, down from its previous close of $79.67. The stock had a volume of 3,121,801 compared to its usual volume of 609,505.

The Hamilton, Bermuda-based company reported Thursday morning that its same store sales for the eight-week period that ended on Dec. 28, 2013 increased 5%. For the fourth quarter, Signet now anticipates EPS to be in the range of $2.12 to $2.16. In November, the company estimated EPS to fall in the range of $2.30 to $2.40. The consensus EPS estimate is $2.36.

For the fiscal year 2014, the company estimates EPS in the range of $4.51 to $4.55 and capital expenditures in the range of $170 million to $175 million, a $10 million decrease from its previous expectations because of the timing of information technology projects.

Signet CEO Mike Barnes said the following in the company's report:

"We were pleased to deliver 5% same store sales for the Holiday Season and were especially encouraged by both the improvement in the UK division and the strength of our eCommerce sales across divisions. I would like to thank the US and UK teams very much for their dedication, hard work, and execution of our exciting merchandise programs during the holiday selling period.

"The US Holiday Season was highlighted by a strong November and a strong finish to December. Overall, we expect fourth quarter same store sales to be within our guidance. However, additional discounting was necessary in a highly promotional retail environment that included challenging customer traffic trends and lower than anticipated commodity cost savings. We believe these factors will result in lower than expected gross margins and profitability versus our original expectations."

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