HomeEarningsSignet Jewelers to buy Diamonds Direct; hikes outlook before holidays

Signet Jewelers to buy Diamonds Direct; hikes outlook before holidays

Signage for Kay Jewelers, a subsidiary of Signet Jewelers Ltd., is displayed on the outside of a retailer in New York.

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Signet Jewelers on Tuesday mentioned it agreed to purchase the off-mall jewellery chain Diamonds Direct USA for $490 million in money, in a bid to succeed in youthful consumers and inch nearer to hitting its annual income purpose of $9 billion.

Signet, which owns jewellery chains Kay Jewelers, Zales and Jared, additionally raised its outlook for the fiscal third quarter and for the yr. It is the second time Signet has elevated its fiscal 2022 forecast in current weeks. The corporate mentioned client demand is excessive forward of the vacations, and it is not experiencing any provide chain disruptions like lots of its friends within the retail trade.

Signet shares jumped greater than 5% in early buying and selling on the information.

Signet is benefiting from a pent-up demand amongst {couples} who put engagement and marriage ceremony plans on pause in the course of the pandemic. As venues reopen and customers really feel comfy to journey once more, the tempo of weddings and different celebrations with family members is selecting again up.

“Clients are displaying constructive response to our new product launches, and the discount in authorities stimulus and buyer shift to spending on leisure and journey are having much less impression than we beforehand anticipated,” mentioned Chief Monetary Officer Joan Hilson, in a press launch.

Signet made certain to obtain vacation merchandise early this yr, she added. The corporate mentioned it makes use of air freight to move the overwhelming majority of its merchandise, so it’s not coping with the continued ocean freight congestion.

Signet now sees its third-quarter income ranging between $1.42 billion to $1.45 billion, up from a earlier vary of $1.26 billion to $1.31 billion.

For the yr, it expects income to be between $7.04 billion and $7.19 billion, up from prior steering of $6.80 billion to $6.95 billion.

Signet mentioned it stays on observe to shutter greater than 100 areas this yr and open 100, primarily underneath its Banter by Piercing Pagoda banner.

The corporate expects to finish the Diamonds Direct acquisition in its fourth quarter.

Signet’s inventory has tripled yr so far. The corporate has a market worth of over $4.5 billion.

Learn the total press launch from Signet right here.

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