Shares of Signet Jewelers, the world's largest diamond jewelry retailer, plunged in premarket trading in New York after the retailer slashed its fourth-quarter sales forecast. Signet attributed the revision to weaker-than-expected holiday same-store sales, citing "peak selling days leading up to Christmas that were below forecast."

In a holiday sales update, Signet provided a dismal fourth-quarter outlook, with sales to $2.32 to $2.335 billion, down from estimates previously stated in December of $2.38 to $2.46 billion. This also missed the Bloomberg Consensus estimate of $2.41 billion. 

Fourth Quarter Forecast (courtesy of Bloomberg): 

Signet operates more than 2,700 retail brick-and-motar-stores under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, JamesAllen.com, Rocksbox, Peoples Jewellers, H.Samuel and Ernest Jones - warned that cash-strapped consumers "gravitated" to cheaper jewelry during the holiday season - yet another sign low/mid tier consumers are tapped out with drained personal savings and insurmountable credit card debt. 

"However, fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment. Merchandise assortment gaps at key gifting price points impeded our ability to meet that trend," Joan Hilson, Chief Financial and Operating Officer of Signet, stated in a press release. 

In premarket trading in New York, Signet shares crashed as much as 22.7% 

The key takeaway: Cash-strapped consumers opted for cheaper jewelry as Christmas and holiday gifts, underscoring the financial strain crushing low—and mid-tier households. This trend reflects the lingering effects of failed "Bidenomics," which sparked a multi-year inflation storm.