Signet Jewelers Responds To Allegations About Gem Quality

Signet Jewelers Ltd. responded Friday to recent allegations regarding gem quality, by affirming its "rigorous product quality practices." The stock tacked on 0.4% in premarket trade. The stock had tumbled 6.6% on Thursday after reports that an investment newsletter raised questions about Signet's credit portfolio and gem quality. "In addition, we strongly object to recent allegations on social media, republished and grossly amplified, that our team members systematically mishandle customers' jewelry repairs or engage in 'diamond swapping,'" the company said in a statement. "Incidents of misconduct, which are exceedingly rare, are dealt with swiftly and appropriately." Signet said it manages more than 4,000,000 service and repair transactions a year, and over 99% are completed without negative feedback. The stock tumbled 25% year to date through Thursday, while the S&P 500 gained 3%.