Signet Jewelers (NYSE: SIG) reported Q3 EPS of $0.15, ex-items, $0.05 better than the analyst estimate of $0.10. Revenue for the quarter came in at $1.16 billion versus the consensus estimate of $1.17 billion.

Same store sales was down 5.0%, including an estimated 120 basis point negative impact due to weather-related incidents and systems and process disruptions associated with outsourcing of the credit portfolio.

Virginia C. Drosos, Chief Executive Officer of Signet Jewelers, said: "Signet had a challenging third quarter. In addition to an anticipated sequential slowdown in our same store sales, unfavorable weather-related incidents, along with unexpected disruptions during the transition of our credit services, further negatively impacted results. Encouragingly, within this backdrop, we advanced our strategic priorities, which are beginning to deliver results.

"We are seeing positive customer reaction to enhancements in our OmniChannel experience, as well as streamlined marketing messages and improved fashion assortment. We have also implemented several synergies from the R2Net acquisition ahead of plan. Unfortunately, these wins are being overshadowed by the systems disruptions and significant process changes associated with the outsourcing of our credit portfolio, with particular impact at Kay. 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. 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 earningsranging from $6.10 to $6.50 per share.

"We remain focused on executing our three strategic priorities: Customer First, OmniChannel, and Culture of Agility and Efficiency. While it’s still early, we are aggressively transforming our business and believe we are on the right track to create a more competitive and innovative Signet that is poised for sustainable, profitable growth. I thank our Team Members for their dedication and hard work."

GUIDANCE:

Signet Jewelers sees FY2018 EPS of $6.10-$6.50, from $7.16-$7.56 and versus the consensus of $7.02. Sees SSS down low to mid single-digit % , versus down low to mid signle-digit %.

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