S&P lowers Signet to negative

S&P said it revised the outlook on Signet Jewelers Ltd. to negative from stable.

The agency also said it affirmed all of the ratings on the company, including its BBB- corporate credit rating.

The outlook revision reflects an expectation that the recent softness in Signet's same-store sales trends will continue for the next several quarters with negative same-store sales comparisons for the current fiscal year, S&P said.

Such weakness is propelled by the soft retail environment characterized by weaker mall traffic, shift in consumer spending towards online instead of in physical stores and widespread discounting from local competitors, the agency said.

The company also faces issues with its brand reputation that has hurt sales trends, including an alleged diamond swapping incident that occurred last year, S&P said.

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