AKRON, Ohio _ Signet Jewelers Ltd. on Thursday reported a sales decline for the second quarter and downgraded its sales and earnings outlook for the full year.
Shares sold off in early trading on the announcement. The stock price was down $12.51, or 13.1 percent, to $82.99 as of midday.
Signet, the Akron-headquartered operator of chain jewelry stores including Kay Jewelers, said sales at stores open at least a year _ same-store sales _ declined 2.3 percent. Wall Street analysts had expected a slight increase.
In May, Signet had said same-store sales would increase 2 percent to 3.5 percent.
"We are disappointed by our (second quarter) results," said CEO Mark Light. "Market conditions have been challenging particularly in the energy dependent regions."
Signet, which employs an estimated 3,000 people in the Akron region, including workers at area stores, calls itself the world's largest retailer of diamond jewelry.
The company said Thursday that same-store sales for the full fiscal year would drop 1 percent to 2.5 percent.
Overall sales for the second quarter were $1.37 billion, down $37.2 million, or 2.6 percent.
About 60 percent of the decline was from "the oil patch," the company said.
Signet reported second-quarter profit of $81.9 million, or $1.06 a share.
That compares with $62.2 million, or 78 cents a share for the year-ago quarter.
On an adjusted basis, earnings for this year's second quarter were $87.9 million, or $1.14 a share.
According to Thomson Reuters, Wall Street analysts expected the company to report adjusted earnings per share of $1.45.
The company lowered its adjusted earnings per share guidance for the fiscal year to $7.25 to $7.55. Earlier, the company had forecast $8.25 to $8.55.
