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Shoppers are splurging on diamonds. Signet Jewelers simply hiked its full-year outlook — once more

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

Bloomberg | Bloomberg | Getty Pictures

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 achieve 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 12 months. It’s the second time Signet has increased its fiscal 2022 forecast in recent weeks. The corporate mentioned shopper demand is excessive forward of the vacations, and it isn’t experiencing any supply 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 wedding ceremony plans on pause in the course of the pandemic. As venues reopen and customers really feel snug to journey once more, the tempo of weddings and different celebrations with family members is choosing again up.

“Prospects 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 affect than we beforehand anticipated,” mentioned Chief Monetary Officer Joan Hilson, in a press release.

Signet made certain to obtain vacation merchandise early this 12 months, 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 12 months, it expects income to be between $7.04 billion and $7.19 billion, up from prior steerage of $6.80 billion to $6.95 billion.

Signet mentioned it stays on monitor to shutter greater than 100 places this 12 months 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 12 months thus far. The corporate has a market worth of over $4.5 billion.

Learn the total press launch from Signet here.

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