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Here's Why Signet (SIG) Stock Has Rallied 33.9% in a Year
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Signet Jewelers Limited (SIG - Free Report) has been making constant efforts to enrich customers’ experience. The company is focused on making digital endeavors and smooth progress in its Inspiring Brilliance strategy. Digital business is the key growth driver where the company remains focused on enhancing its data- analytics capabilities with higher precision.
Buoyed by such endeavors, shares of this jewelry retailer have surged 33.9% in a year’s span against the industry’s 6.4% fall.
Let’s Delve Deep
Signet is consistently 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. The company has also launched Vault Rewards in Jared, KAY and Zales. 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. This is helping the company to cater to customers’ needs more aptly.
As part of the company’s fleet-optimization endeavors, management expects closing up to 150 stores in the next 12 months. Nearly 90% of the closures will be in mall locations and/or are among the low-performing outlets across the UK market. It also projects opening between 30 stores and 35 stores, mainly Kay, Jared and Diamond Direct locations. Management expects capital investments of up to $200 million, along with investments in banner differentiation with stores, connected-commerce capabilities, and digital and technology upgrades.
Image Source: Zacks Investment Research
Further, the company’s loyalty program is progressing well. It has introduced the option to enroll in the loyalty program when first making an account on one of its banner sites, creating a frictionless point of entry for the customers. Also, the company has implemented over a dozen new priority feature launches. These features consist of the enhancements to online merchandise presentation, messaging, appointment booking and services.
Signet is leveraging the analytics capability to optimize the way of adding product assortments. 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 with virtual jewelry consultants in real time or offline from search results or maps. The company has been offering curbside pickup and virtual consultations and buy online pick up in store in various locations. Such efforts indicate that Signet has been focusing on evolving its channel-agnostic retailer capabilities.
The Inspiring Brilliance strategy bodes well and focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce. As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights for targeting new and existing customers. It is working toward evolving its Customer First strategy to a consumer-inspired experience, which includes tailored merchandise assortments and expanded services, thus offering more innovative and personalized experiences. The company’s acquisition of Diamonds Direct, which is known for unique bridal-focused collections and shopping experience, has now become its highly-personalized bridal destination offering customers valuable bridal experiences.
This current Zacks Rank #3 (Hold) company has an expected earnings growth rate of 8% and a VGM Score of A, which further demonstrates strength. Analysts seem optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $7.37 billion and $10.38, respectively. These estimates show corresponding increases of 1.9% and 5% year over year.
Key Picks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) .
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 0.5% and 526.3%, respectively, from the year-ago reported figures. ANF delivered an earnings surprise of 107.7% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.3% and 24.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). 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 and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.
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Here's Why Signet (SIG) Stock Has Rallied 33.9% in a Year
Signet Jewelers Limited (SIG - Free Report) has been making constant efforts to enrich customers’ experience. The company is focused on making digital endeavors and smooth progress in its Inspiring Brilliance strategy. Digital business is the key growth driver where the company remains focused on enhancing its data- analytics capabilities with higher precision.
Buoyed by such endeavors, shares of this jewelry retailer have surged 33.9% in a year’s span against the industry’s 6.4% fall.
Let’s Delve Deep
Signet is consistently 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. The company has also launched Vault Rewards in Jared, KAY and Zales. 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. This is helping the company to cater to customers’ needs more aptly.
As part of the company’s fleet-optimization endeavors, management expects closing up to 150 stores in the next 12 months. Nearly 90% of the closures will be in mall locations and/or are among the low-performing outlets across the UK market. It also projects opening between 30 stores and 35 stores, mainly Kay, Jared and Diamond Direct locations. Management expects capital investments of up to $200 million, along with investments in banner differentiation with stores, connected-commerce capabilities, and digital and technology upgrades.
Image Source: Zacks Investment Research
Further, the company’s loyalty program is progressing well. It has introduced the option to enroll in the loyalty program when first making an account on one of its banner sites, creating a frictionless point of entry for the customers. Also, the company has implemented over a dozen new priority feature launches. These features consist of the enhancements to online merchandise presentation, messaging, appointment booking and services.
Signet is leveraging the analytics capability to optimize the way of adding product assortments. 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 with virtual jewelry consultants in real time or offline from search results or maps. The company has been offering curbside pickup and virtual consultations and buy online pick up in store in various locations. Such efforts indicate that Signet has been focusing on evolving its channel-agnostic retailer capabilities.
The Inspiring Brilliance strategy bodes well and focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce. As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights for targeting new and existing customers. It is working toward evolving its Customer First strategy to a consumer-inspired experience, which includes tailored merchandise assortments and expanded services, thus offering more innovative and personalized experiences. The company’s acquisition of Diamonds Direct, which is known for unique bridal-focused collections and shopping experience, has now become its highly-personalized bridal destination offering customers valuable bridal experiences.
This current Zacks Rank #3 (Hold) company has an expected earnings growth rate of 8% and a VGM Score of A, which further demonstrates strength. Analysts seem optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $7.37 billion and $10.38, respectively. These estimates show corresponding increases of 1.9% and 5% year over year.
Key Picks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - 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 0.5% and 526.3%, respectively, from the year-ago reported figures. ANF delivered an earnings surprise of 107.7% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.3% and 24.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). 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 and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.