Signet Jewelers Ltd reported an unexpected drop in quarterly comparable sales as demand fell for its Sterling, Zale and Jared businesses, and the company cut its full-year profit forecast. Shares of the company, which posted its first fall in quarterly total sales in more than six years, plunged 17.6 percent in early trading to $78.71, their biggest single-day percentage decline since November 2007.
Stores in areas closely tied to the energy industry, such as Texas, Louisiana, Oklahoma and Alberta "dramatically underperformed", Chief Executive Mark Light told Reuters. He also blamed underperformance in the company's Jared business for a "material part" of the miss. Texas-located Jared stores accounted for nearly half of the unit's sales decline in the second quarter ended July 30, he said.