Why Shares of Signet Jewelers Plunged 26% Tuesday

Shares of Signet Jewelers (NYSE: SIG), the largest midmarket jewelry chain in the U.S., plunged more than 26% as of 11:20 a.m. EST after the company fell short of Wall Street profit estimates and management lowered guidance, which sent investors running for the hills.

Signet Jewelers' same-store sales declined 5% in part due to weather-related impacts, which drove the results down roughly 120 basis points. Total sales were down 2.5%, compared to the prior year, to $1.16 billion during the third quarter. There was pain on the bottom line, too, as the company's operating margin declined 220 basis points and its loss per share checked in at $0.20.

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Source: Fool.com