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Signet (SIG) Rides High on Growth Strategies: Apt to Hold
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Signet Jewelers Limited (SIG - Free Report) appears impressive, thanks to solid growth in e-commerce 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 24.4% in the past six months compared to the industry’s 2.1% dip. This current Zacks Rank #3 (Hold) stock has an expected earnings growth rate of 8% and a VGM Score of A.
In addition, analysts are optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $7.93 billion and $12.03, respectively. These estimates show corresponding increases of 2.5% and 7.6% year over year.
Let’s Delve Deeper
Signet has been making smart moves to enrich customers’ experience. The company 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. Notably, the company has been witnessing improvements at nearly all of the digital touchpoints.
Loyalty and digital enrolment increased 2.9 times in the fourth quarter of fiscal 2023 versus the third quarter. Two-way SMS represented 20% of digital sales. Overall, digital as a rate of overall sales is nearly four times the pre-transformation levels.
Image Source: Zacks Investment Research
Additionally, the company has launched Vault Rewards in Jared, KAY and Zales, and has about two million members. Management anticipates reaching roughly four million vault rewards members by the fiscal 2024 end. The company’s connected-commerce 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. This is helping the company cater to customers’ needs more aptly.
Management is also focused on differentiating banners by optimizing the company’s store footprint. It has shut over 1,000 underperforming stores in the past six years. Also, sales per square foot productivity have increased nearly 50% since the start of the transformation. In fiscal 2024, Signet expects to invest above $100 million in the fleet, including the expansion of new stores. Personalization is also a key theme for products.
Digital business is the key growth driver. The company remains focused on enhancing the data- analytics capabilities with higher precision. It is leveraging the analytics capability to optimize the way of adding product assortments. Management has also been building on the trade area data with customer e-commerce trends, location data such as GPS tracking, and macro-level data with traffic draw, tenant adjacencies and customer demographics.
Markedly, the company had added several features and capabilities across its digital platform to offer a seamless customer experience. It has rolled out Google Business Messages and Apple Business Chat features, which allow customers to engage virtual jewelry consultants in real time or offline from search results or maps. The company has been offering curbside pickup,virtual consultations and buy online pick up in store in various locations.
We note that Signet’s Inspiring Brilliance strategy appears encouraging. This growth strategy focuses on expanding big banners, boosting services, 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 for targeting new and existing customers.
Signet’s acquisition of Diamonds Direct USA Inc appears encouraging too. Diamonds Direct is known for its unique bridal-focused collections and shopping experience. This has now become the company’s highly-personalized bridal destination, offering customers valuable bridal experiences. Signet has also been boosting customization services. Also, the company’s acquisition of Blue Nile looks encouraging. Blue Nile is the pioneer in online diamond marketplace shopping, thus enhancing the company’s portfolio and its customer base.
Signet will continue to perform well on the bourses given the above-discussed factors.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 2% and 472%, respectively, from the year-ago reported figures. ANF delivered a negative earnings surprise of 141.2% in the last reported quarter.
Urban Outfitters, a retailer of fashion apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). URBN delivered break-even earnings in the last reported quarter.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 4.3% and 41.7%, respectively, from the year-ago reported figures.
Boot Barn, a fashion apparel and accessories retailer, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales suggests growth of 12.7% from the year-ago reported figure.
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Signet (SIG) Rides High on Growth Strategies: Apt to Hold
Signet Jewelers Limited (SIG - Free Report) appears impressive, thanks to solid growth in e-commerce 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 24.4% in the past six months compared to the industry’s 2.1% dip. This current Zacks Rank #3 (Hold) stock has an expected earnings growth rate of 8% and a VGM Score of A.
In addition, analysts are optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $7.93 billion and $12.03, respectively. These estimates show corresponding increases of 2.5% and 7.6% year over year.
Let’s Delve Deeper
Signet has been making smart moves to enrich customers’ experience. The company 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. Notably, the company has been witnessing improvements at nearly all of the digital touchpoints.
Loyalty and digital enrolment increased 2.9 times in the fourth quarter of fiscal 2023 versus the third quarter. Two-way SMS represented 20% of digital sales. Overall, digital as a rate of overall sales is nearly four times the pre-transformation levels.
Image Source: Zacks Investment Research
Additionally, the company has launched Vault Rewards in Jared, KAY and Zales, and has about two million members. Management anticipates reaching roughly four million vault rewards members by the fiscal 2024 end. The company’s connected-commerce 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. This is helping the company cater to customers’ needs more aptly.
Management is also focused on differentiating banners by optimizing the company’s store footprint. It has shut over 1,000 underperforming stores in the past six years. Also, sales per square foot productivity have increased nearly 50% since the start of the transformation. In fiscal 2024, Signet expects to invest above $100 million in the fleet, including the expansion of new stores. Personalization is also a key theme for products.
Digital business is the key growth driver. The company remains focused on enhancing the data- analytics capabilities with higher precision. It is leveraging the analytics capability to optimize the way of adding product assortments. Management has also been building on the trade area data with customer e-commerce trends, location data such as GPS tracking, and macro-level data with traffic draw, tenant adjacencies and customer demographics.
Markedly, the company had added several features and capabilities across its digital platform to offer a seamless customer experience. It has rolled out Google Business Messages and Apple Business Chat features, which allow customers to engage virtual jewelry consultants in real time or offline from search results or maps. The company has been offering curbside pickup,virtual consultations and buy online pick up in store in various locations.
We note that Signet’s Inspiring Brilliance strategy appears encouraging. This growth strategy focuses on expanding big banners, boosting services, 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 for targeting new and existing customers.
Signet’s acquisition of Diamonds Direct USA Inc appears encouraging too. Diamonds Direct is known for its unique bridal-focused collections and shopping experience. This has now become the company’s highly-personalized bridal destination, offering customers valuable bridal experiences. Signet has also been boosting customization services. Also, the company’s acquisition of Blue Nile looks encouraging. Blue Nile is the pioneer in online diamond marketplace shopping, thus enhancing the company’s portfolio and its customer base.
Signet will continue to perform well on the bourses given the above-discussed factors.
Solid Picks in Retail
We have highlighted three top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Urban Outfitters (URBN - Free Report) and Boot Barn (BOOT - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 2% and 472%, respectively, from the year-ago reported figures. ANF delivered a negative earnings surprise of 141.2% in the last reported quarter.
Urban Outfitters, a retailer of fashion apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). URBN delivered break-even earnings in the last reported quarter.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 4.3% and 41.7%, respectively, from the year-ago reported figures.
Boot Barn, a fashion apparel and accessories retailer, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales suggests growth of 12.7% from the year-ago reported figure.