Signs for Kay Jewelers, a subsidiary of Signet Jewelers Ltd., are displayed on the front of the store in New York.
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Signet Jewelers on Tuesday said it had agreed to buy jewelry store chain Diamonds Direct USA for $ 490 million in cash to attract younger shoppers and move closer to meeting its $ 9 billion annual target.
Signet, which owns jewelry chains Kay Jewelers, Zales and Jared, also raised its fiscal third quarter and full year guidance. Signet has raised its FY2022 forecast for the second time in recent weeks.… The company said that consumer demand is high ahead of the holidays and doesn’t have supply chain disruptions like many of its retail counterparts.
Signet shares jumped more than 5% in early trading on the news.
Signet is in delayed demand among couples who are suspending engagement and wedding plans during the pandemic. As establishments reopen and consumers feel comfortable traveling again, the pace of weddings and other celebrations with loved ones is picking up steam again.
“Customers are responding positively to our new product launches, and reduced government incentives and customers’ shift to spending on entertainment and travel are having less of an impact than we previously anticipated,” said CFO Joan Hilson. in the press release…
Signet took care of receiving holiday food earlier this year, she added. The company said it uses air to transport the vast majority of its goods and therefore does not deal with the ongoing transhipment by sea.
Signet currently sees its third-quarter revenue at $ 1.42 billion to $ 1.45 billion, up from the previous $ 1.26 billion to $ 1.31 billion.
Revenue for the year is expected to be between $ 7.04 billion and $ 7.19 billion, up from the previous forecast of $ 6.80 billion to $ 6.95 billion.
Signet said it plans to close over 100 locations this year and open 100, mostly under the Banter by Piercing Pagoda banner.
The company plans to complete its acquisition of Diamonds Direct in the fourth quarter.
Signet inventories have tripled to date. The market value of the company exceeds $ 4.5 billion.
Read the full Signet press release here…