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Signet (SIG) Up on Digital & Inspiring Brilliance Strategies
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Signet Jewelers Limited (SIG - Free Report) seems to be on a roll, thanks to solid growth in its e-commerce business and smooth progress of its Inspiring Brilliance strategy. Sturdy gains from growth initiatives like unique banner value propositions, marketing efforts and advanced connected-commerce capabilities are also aiding its performance. SIG’s innovation efforts also bode well.
Buoyed by the aforesaid endeavors, Signet reported stellar fourth-quarter fiscal 2022 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate and improved year over year. This robust performance and solid guidance for the ongoing fiscal 2023 further boost investors’ sentiments. Shares of this jewelry retailer have gained 22.3% in a year against the industry’s 28.3% decline. A VGM Score of A coupled with a projected long-term earnings growth rate of 8% for this Zacks Rank #2 (Buy) stock speaks volumes. Let’s delve deeper.
Detailing Strategies
Signet is focused on enhancing its online shopping experience through in-store consultations and services like the buy online pickup in-store and curbside options. In fact, digital business is its key growth driver. SIG remains focused on enhancing its data analytics capabilities and looks forward to taking the connected commerce approach to the next phase of growth.
Earlier, Signet had added several features and capabilities across its digital platform to offer a seamless customer experience. It rolled out Google Business Messages and Apple Business Chat features, which allow customers to engage with virtual jewelry consultants in real time. During fourth-quarter fiscal 2022, e-commerce sales jumped 8.7% from the prior-year quarter’s level to $556 million. Brick-and-mortar sales grew 34.6% year over year to $2.3 billion. The North America segment’s e-commerce sales grew 14% year over year, while brick-and-mortar same-store sales jumped 30.6%. Hence, Signet’s focus on evolving its channel-agnostic retailer capabilities are expected to continue aiding results ahead.
Image Source: Zacks Investment Research
In addition, Signet’s Inspiring Brilliance strategy has been yielding and fueling market share growth. The Inspiring Brilliance strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce, amongst others. As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights for targeting new and existing customers. Signet’s acquisition of Diamonds Direct, a company known for unique bridal-focused collections, appears encouraging.
Performance & View
During fourth-quarter fiscal 2022, the top line increased 28.6% year over year and the bottom line rose 20.7%. Same-store sales rose 23.8% year over year, while both segments performed impressively in the reported quarter. While sales in North America increased 26.9% year over year, the International segment sales surged 49%. Margins were also impressive. It delivered around 500 basis points higher gross margin in fiscal 2022 versus four years ago, backed by increased sales on lower occupancy costs.
Going into fiscal 2023, Signet expects to keep gaining from its prudent growth efforts and consumers’ favorable responses toward its assortments. For first-quarter fiscal 2023, management projects revenues of $1.78-$1.82 billion, higher than $1.69 billion delivered in the year-earlier quarter.
For fiscal 2023, management expects total revenues of $8.03-$8.25 billion, up from $7.83 billion delivered in fiscal 2022. Adjusted operating income is anticipated in the range of $921-$974 million, suggesting a rise from $908.1 million recorded last fiscal. Adjusted earnings per share are envisioned in the bracket of $12.28-$13.00 versus $12.28 earned in fiscal 2022.
All in all, given the above-discussed factors, Signet is well poised for growth in the future.
Capri Holdings, which offers accessories and footwear, carries a Zacks Rank #2 (Buy) at present. CPRI has an expected earnings per share (“EPS”) growth rate of 53.9% for three-five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and EPS suggests growth of 37% and 215.8%, respectively, from the year-ago corresponding figures. CPRI has a trailing four-quarter earnings surprise of 1,018.2%, on average.
Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, presently has a Zacks Rank of 2. BOOT has an expected EPS growth rate of 20% for three-five years.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago corresponding figures. BOOT has a trailing four-quarter earnings surprise of 47.1%, on average.
Tapestry, a renowned designer of fine accessories, presently carries a Zacks Rank #2. TPR has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Tapestry’s current-year sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the corresponding year-ago levels. TPR has an expected EPS growth rate of 10% for three-five years.
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Signet (SIG) Up on Digital & Inspiring Brilliance Strategies
Signet Jewelers Limited (SIG - Free Report) seems to be on a roll, thanks to solid growth in its e-commerce business and smooth progress of its Inspiring Brilliance strategy. Sturdy gains from growth initiatives like unique banner value propositions, marketing efforts and advanced connected-commerce capabilities are also aiding its performance. SIG’s innovation efforts also bode well.
Buoyed by the aforesaid endeavors, Signet reported stellar fourth-quarter fiscal 2022 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate and improved year over year. This robust performance and solid guidance for the ongoing fiscal 2023 further boost investors’ sentiments. Shares of this jewelry retailer have gained 22.3% in a year against the industry’s 28.3% decline. A VGM Score of A coupled with a projected long-term earnings growth rate of 8% for this Zacks Rank #2 (Buy) stock speaks volumes. Let’s delve deeper.
Detailing Strategies
Signet is focused on enhancing its online shopping experience through in-store consultations and services like the buy online pickup in-store and curbside options. In fact, digital business is its key growth driver. SIG remains focused on enhancing its data analytics capabilities and looks forward to taking the connected commerce approach to the next phase of growth.
Earlier, Signet had added several features and capabilities across its digital platform to offer a seamless customer experience. It rolled out Google Business Messages and Apple Business Chat features, which allow customers to engage with virtual jewelry consultants in real time. During fourth-quarter fiscal 2022, e-commerce sales jumped 8.7% from the prior-year quarter’s level to $556 million. Brick-and-mortar sales grew 34.6% year over year to $2.3 billion. The North America segment’s e-commerce sales grew 14% year over year, while brick-and-mortar same-store sales jumped 30.6%. Hence, Signet’s focus on evolving its channel-agnostic retailer capabilities are expected to continue aiding results ahead.
Image Source: Zacks Investment Research
In addition, Signet’s Inspiring Brilliance strategy has been yielding and fueling market share growth. The Inspiring Brilliance strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce, amongst others. As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights for targeting new and existing customers. Signet’s acquisition of Diamonds Direct, a company known for unique bridal-focused collections, appears encouraging.
Performance & View
During fourth-quarter fiscal 2022, the top line increased 28.6% year over year and the bottom line rose 20.7%. Same-store sales rose 23.8% year over year, while both segments performed impressively in the reported quarter. While sales in North America increased 26.9% year over year, the International segment sales surged 49%. Margins were also impressive. It delivered around 500 basis points higher gross margin in fiscal 2022 versus four years ago, backed by increased sales on lower occupancy costs.
Going into fiscal 2023, Signet expects to keep gaining from its prudent growth efforts and consumers’ favorable responses toward its assortments. For first-quarter fiscal 2023, management projects revenues of $1.78-$1.82 billion, higher than $1.69 billion delivered in the year-earlier quarter.
For fiscal 2023, management expects total revenues of $8.03-$8.25 billion, up from $7.83 billion delivered in fiscal 2022. Adjusted operating income is anticipated in the range of $921-$974 million, suggesting a rise from $908.1 million recorded last fiscal. Adjusted earnings per share are envisioned in the bracket of $12.28-$13.00 versus $12.28 earned in fiscal 2022.
All in all, given the above-discussed factors, Signet is well poised for growth in the future.
More Solid Picks in Retail
Some other stocks in the broader Retail sector that investors can consider are Capri Holdings (CPRI - Free Report) , Boot Barn Holdings (BOOT - Free Report) and Tapestry (TPR - Free Report) .
Capri Holdings, which offers accessories and footwear, carries a Zacks Rank #2 (Buy) at present. CPRI has an expected earnings per share (“EPS”) growth rate of 53.9% for three-five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and EPS suggests growth of 37% and 215.8%, respectively, from the year-ago corresponding figures. CPRI has a trailing four-quarter earnings surprise of 1,018.2%, on average.
Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, presently has a Zacks Rank of 2. BOOT has an expected EPS growth rate of 20% for three-five years.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago corresponding figures. BOOT has a trailing four-quarter earnings surprise of 47.1%, on average.
Tapestry, a renowned designer of fine accessories, presently carries a Zacks Rank #2. TPR has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Tapestry’s current-year sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the corresponding year-ago levels. TPR has an expected EPS growth rate of 10% for three-five years.