The diamonds retailer is ready to close a new deal in a bid to reach younger shoppers
Signet Jewelers agreed to buy the Diamonds Direct USA – an off-mall jewelry chain – for $490 million in cash. Through this deal, the first is looking to reach younger customers and be closer to its goal of $9 billion in revenue.
The agreement, which is expected to close in the fourth quarter of fiscal 2022, is currently subject to customary closing conditions and regulatory approval.
Along with the deal, news came a revised revenue outlook. According to Signet, total revenue is seen between $1.42 billion and $1.45 billion, with up to 12% of same-store sales growth. This marks the second time when Signet has increased its forecast. Previously, the company announced a revenue between $1.26 billion and $1.31 billion. Analysts are more optimistic, projecting revenues of $2.10 billion.
Moreover, Signet said consumer demand is high ahead of the holidays and is not having supply chain disruptions like its peers in the retail industry.
Following the news, Signet share price jumped more than 3%. Year to date, the price is up 200%.
Sources: cnbc.com, Nasdaq.com