We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Signet (SIG) Shines on Inspiring Brilliance Plan, Online Wing
Read MoreHide Full Article
Renowned jewelry retailer, Signet Jewelers Limited (SIG - Free Report) , has been witnessing market share growth, backed by growth across stores and digital platforms. Prudent efforts undertaken as part of the Inspiring Brilliance strategy have also been yielding. Such upsides contributed to the company’s top- and bottom-line performance when it reported second-quarter fiscal 2022 results.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 182% in the year-to-date period compared with the industry’s rise of 163.3%. That said let’s take a closer look at the factors acting as aces in Signet’s stack.
E-commerce Front Looks Strong
Thanks to the pandemic, consumers have become more comfortable with buying jewelry online. Signet is constantly boosting online shopping experience with advanced virtual and digitally native experiences. It is consistently integrating its physical stores with advanced digital capabilities through data-driven in-store consultations as well as buy online pickup in-store and curbside options. The company has been introducing technology tools like conversational messaging, improved text search, virtual try-on and consulting. Management also added several new search browse and checkout features last year.
During second-quarter fiscal 2022, e-commerce sales amounted to $336.2 million that increased 24.5% from the prior-year quarter’s level. The metric increased 114.3% from second-quarter fiscal 2020 levels. Management highlighted that growth in the digital realm bears testimony to the success of the company’s connected commerce strategy. The strategy helps in combining customer experiences, leveraging in store and online as well as mobile and ubiquitous delivery. Such efforts indicate that Signet has been focusing on evolving its channel-agnostic retailer capabilities.
Image Source: Zacks Investment Research
Inspiring Brilliance Strategy
Signet’s impressive second-quarter results were supported by advancements made under the Inspiring Brilliance strategy. This strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments as well as accelerating digital commerce, among others. As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights to target new and existing customers. The company has been broadening assortments across its Zales, Kay and Jared brand lines. It has been boosting customization services as well as focusing on inventory turnover and rationalizing SKU’s. The Inspiring Brilliance growth strategy also includes transformational productivity, as part of which the company expects to achieve efficiencies in both gross margin along with selling, general and administrative expenses.
Wrapping Up
Signet expects to keep gaining from its prudent growth efforts and consumers’ favorable response toward its assortments. For fiscal 2022, management anticipates revenues in the bracket of $6.80-$6.95 billion, indicating growth from $5.23 billion generated in the prior-year period. It expects to generate gross cost savings worth $85-$105 million. These funds are expected to support the additional investments required in boosting technological expertise, which will enhance the company's competitive advantage.
Image: Bigstock
Signet (SIG) Shines on Inspiring Brilliance Plan, Online Wing
Renowned jewelry retailer, Signet Jewelers Limited (SIG - Free Report) , has been witnessing market share growth, backed by growth across stores and digital platforms. Prudent efforts undertaken as part of the Inspiring Brilliance strategy have also been yielding. Such upsides contributed to the company’s top- and bottom-line performance when it reported second-quarter fiscal 2022 results.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 182% in the year-to-date period compared with the industry’s rise of 163.3%. That said let’s take a closer look at the factors acting as aces in Signet’s stack.
E-commerce Front Looks Strong
Thanks to the pandemic, consumers have become more comfortable with buying jewelry online. Signet is constantly boosting online shopping experience with advanced virtual and digitally native experiences. It is consistently integrating its physical stores with advanced digital capabilities through data-driven in-store consultations as well as buy online pickup in-store and curbside options. The company has been introducing technology tools like conversational messaging, improved text search, virtual try-on and consulting. Management also added several new search browse and checkout features last year.
During second-quarter fiscal 2022, e-commerce sales amounted to $336.2 million that increased 24.5% from the prior-year quarter’s level. The metric increased 114.3% from second-quarter fiscal 2020 levels. Management highlighted that growth in the digital realm bears testimony to the success of the company’s connected commerce strategy. The strategy helps in combining customer experiences, leveraging in store and online as well as mobile and ubiquitous delivery. Such efforts indicate that Signet has been focusing on evolving its channel-agnostic retailer capabilities.
Inspiring Brilliance Strategy
Signet’s impressive second-quarter results were supported by advancements made under the Inspiring Brilliance strategy. This strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments as well as accelerating digital commerce, among others. As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights to target new and existing customers. The company has been broadening assortments across its Zales, Kay and Jared brand lines. It has been boosting customization services as well as focusing on inventory turnover and rationalizing SKU’s. The Inspiring Brilliance growth strategy also includes transformational productivity, as part of which the company expects to achieve efficiencies in both gross margin along with selling, general and administrative expenses.
Wrapping Up
Signet expects to keep gaining from its prudent growth efforts and consumers’ favorable response toward its assortments. For fiscal 2022, management anticipates revenues in the bracket of $6.80-$6.95 billion, indicating growth from $5.23 billion generated in the prior-year period. It expects to generate gross cost savings worth $85-$105 million. These funds are expected to support the additional investments required in boosting technological expertise, which will enhance the company's competitive advantage.
3 Picks You Can’t Miss Out On
Abercrombie & Fitch Company (ANF - Free Report) , flaunting a Zacks Rank #1, has a long-term earnings growth rate of 18%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry, Inc. (TPR - Free Report) , also sporting a Zacks Rank #1, delivered an earnings surprise of 11.7% in the last four quarters, on average.
Costco Wholesale Corporation (COST - Free Report) with a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 9.3%.