Signet (SIG) Strong on Inspiring Brilliance & Digital Efforts
Signet Jewelers Limited SIG looks quite promising on the back of its sturdy digital endeavors and other robust strategic initiatives including Inspiring Brilliance. The company has been reinforcing its online shopping experience with advanced virtual and digitally native experiences for a while. To this end, management aims to combine digital and in-store experiences to gain a substantial competitive edge.
Following the successful execution of its Path to Brilliance initiative, the company entered into the next phase of its growth strategy, which is Inspiring Brilliance. Markedly, the latest growth strategy has been meaningfully contributing to its performance for sometime now. Impressively, shares of this jewelry retailer have skyrocketed 178.2% in the past six months, outperforming the industry’s 145% rally. This upside is also led by the currently Zacks Rank #1 (Strong Buy) company’s stellar first-quarter fiscal 2022 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Markedly, Signet is consistently integrating its physical stores into the digital customer experience through data-driven in-store consultations and a ‘buy online pickup in-store and curbside option’. The company is also making interaction across its websites, stores and inventory pipeline. Its buyout of Rocksbox, a jewelry rental subscription service, also bodes well as it is expediting the company’s online service offerings. Strikingly, the company intends to be at the forefront of digital commerce in the jewelry industry.
Encouragingly, to offer a seamless customer experience, the company added more than 100 features and capabilities across its digital platforms in first-quarter fiscal 2022. It also 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.
During the fiscal first quarter, e-commerce sales skyrocketed 110.3% from the prior-year quarter’s level to $346.3 million. While e-commerce sales in North America segment surged 113.4% year over year, the metric at the International segment rose 80% in the same period. The upside was driven by the company’s continued efforts to bolster its omni-channel capabilities. Also, the overall brick-and-mortar same-store sales were up 105.7% year over year.
Signet’s Inspiring Brilliance initiative 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 its Inspiring Brilliance growth strategy, the company will leverage data-driven insights for targeting new and existing customers. It is working toward evolving its Customer First strategy into a consumer-inspired experience, which includes tailored merchandise assortments and expanded services, thereby offering more innovative and personalized experiences.
Buoyed by such tailwinds and stellar first-quarter results, management now expects revenues in the bracket of $6.50-$6.65 billion for fiscal 2022. Also, it projects same-store sales in the 24-27% band.
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