Consumers are splurging on diamonds. Signet Jewelers just hiked its full-year outlook — again

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 stated 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 objective 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’s the second time Signet has increased its fiscal 2022 forecast in recent weeks. The corporate stated shopper demand is excessive forward of the vacations, and it is not 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 selecting again up.

“Clients are exhibiting optimistic 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,” stated Chief Monetary Officer Joan Hilson, in a press release.

Signet made positive to obtain vacation merchandise early this yr, she added. The corporate stated it makes use of air freight to move the overwhelming majority of its merchandise, so it’s not coping with the continuing 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 steerage of $6.80 billion to $6.95 billion.

Signet stated it stays on monitor to shutter greater than 100 places this yr and open 100, primarily below 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 up to now. The corporate has a market worth of over $4.5 billion.

Learn the complete press launch from Signet here.

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