Signet Jewelers to buy Diamonds Direct; hikes outlook before holidays
Signage for Kay Jewelers Ltd. is on display at the New York Store’s exterior.
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Signet JewelersOn Tuesday, the company announced that it had agreed to purchase Diamonds Direct USA off-mall for $490million in cash. This was in an effort to appeal to younger customers and get closer to its $9 billion annual revenue target.
Signet (which owns the jewelry chain Kay Jewelers and Zales) also increased its outlook for fiscal year 2013 and the third quarter. It’s the second time Signet has increased its fiscal 2022 forecast in recent weeksThe company. According to the company, consumer demand was high before holidays and is not declining. supply chain disruptionsLike many other retailers, it is also a peer.
Signet’s customers include couples who have put off wedding planning and engagement plans due to the Pandemic. The pace of weddings, and other celebrations with loved one is increasing as venues are reopened and people feel more comfortable traveling again.
Joan Hilson, Chief Financial Officer, stated, “Customers have shown positive reaction to our product launches. The reduction in government stimulus, customer shift towards entertainment and travel spending are both having less of an impact than we anticipated.” in a press release
Signet ensured that holiday merchandise was received early in the year. According to Signet, it uses air freight as its main mode of transporting most merchandise. It isn’t dealing with ongoing ocean freight congestion.
Signet sees its third quarter revenues rising from $1.26 to $1.31 trillion to $1.42 to $1.45 Billion.
The company expects to generate revenue between $7.04 billion an $7.19 billion in the current year. That’s up from $6.80 billion to $6.95 million as per prior guidance.
Signet stated that it is still on track to close more than 100 sites this year, and will open 100 under the Banter by Piercing Pagoda banner.
Company expects to conclude the Diamonds Direct acquisition during its fourth quarter.
Signet shares rose by more than 4% on Tuesday’s premarket news trading. Monday closed down about 4%. Year to date, the stock has increased by more than three times. Signet is valued at $4.4 trillion.
Signet’s complete press release here