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Signet (SIG) Well-Poised on Solid Omnichannel Endeavors

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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 in 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, shares of this jewelry retailer have gained 6% in the past three months against the industry’s 5.7% decline.

Let’s Delve Deeper

Digital business is the key driver for Signet. Management is focused on enhancing the data-analytics capabilities with higher precision. SIG is leveraging the analytics capability to optimize the process of adding product assortments. In addition, e-tags are innovative and come across as a valuable technology. Signet currently has 28,000 e-tags tracking loose diamonds at the store level.

Signet has been integrating its physical stores with advanced virtual experiences through data-driven in-store consultations and services like buy online pickup in-store and curbside options. Management is quite focused on boosting its connected commerce approach. SIG’s connected commerce strategy helps enhance customer experiences, and leverage in-store and online capabilities as well as mobile and ubiquitous delivery.

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SIG had earlier added several features and capabilities to its digital platform, offering a seamless customer experience. It had rolled out Google Business Messages and Apple Business Chat features, allowing customers to engage virtual jewelry consultants in real time or offline from search results or maps. All the aforesaid efforts indicate that Signet continues focusing on evolving its channel-agnostic retailer capabilities. We expect the momentum in SIG’s digital business to continue driving the overall results ahead.

Management is also steadily enhancing its service offerings to widen customer relationships. During the second quarter of fiscal 2023, 65% more appointments were booked online from the last year’s level. Also, the average transaction value is 30% higher. Signet also expanded the virtual try-on option for more of its major products, boosting conversion rates between three and six-fold.

In the reported quarter, above 20% customers used one or more of its flexible fulfillment options, including ship to and from store, buy online, pick up in store or same-day delivery. All these improved customer convenience and inventory efficiency.

We note that Signet’s Inspiring Brilliance strategy bodes well. This growth move focuses on expanding big banners, boosting services, broadening the Accessible Luxury and Value segments, and accelerating digital commerce. As part of the strategy, SIG uses data-driven insights to target new and existing customers.

Signet’s buyout of Diamonds Direct, known for unique bridal-focused collections, appears encouraging. This became SIG’s highly-personalized bridal destination, offering customers valuable bridal experiences.

Additionally, SIG’s recent acquisition of Blue Nile looks good. Blue Nile is the pioneer in online diamond marketplace shopping, which enhances the acquirer’s portfolio and customer base. Signet is also focused on transformational productivity, through which it looks to achieve efficiencies.

On a concluding note, Signet will continue to perform well on the bourses, given the above-discussed factors. A VGM Score of A coupled with a projected long-term earnings growth rate of 8% speaks volumes for this presently Zacks Rank #1 (Strong Buy) stock’s credibility. You can see the complete list of today’s Zacks #1 Rank stocks here.

3 More Key Stocks for You

Some other top-ranked stocks are Ulta Beauty (ULTA - Free Report) , Buckle (BKE - Free Report) and Designer Brands (DBI - Free Report) .

Leading beauty retailer Ulta Beauty presently sports a Zacks Rank #1. ULTA has a trailing four-quarter earnings surprise of 32.8%, on average.

The Zacks Consensus Estimate for Ulta Beauty’s fiscal 2022 sales suggests growth of 13.7% from the year-ago level.

Buckle, a leading retailer of apparel, footwear and accessories, has a Zacks Rank #2 (Buy) at present. BKE has a trailing four-quarter earnings surprise of 12.7%, on average.

The Zacks Consensus Estimate for Buckle’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 6.8% and 4.5%, respectively, from the year-ago corresponding figures.

Designer Brands, the leading footwear and accessories designer, presently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Designer Brands’ fiscal 2022 sales and EPS suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago levels. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.

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