Signet Jewelers made an official announcement on Tuesday in regards to acquiring the Blue Nile. The Blue Nile is an online jewelry retailer that has grown a significant online customer base since its launch.
Signet Jewelers has confirmed that it is proceeding with the acquisition of the online jeweler retailer in a $360 million deal.
Signet Jewelers to Acquire Blue Nile in an All-Cash Deal
Signet Jewelers has announced that it is finalizing an all-cash deal that is worth $360 million. With the acquisition of Blue Nile, Signet Jewelers wants to target and attract younger consumers.
The Blue Nile has built a strong customer base that mainly comprises youngsters. The company aims to target youngsters and increase its revenue to tremendous levels.
Signet is also keen to increase its jewelry segments and the bridal business is top of the list the company.
Signet’s Full Year Guidance
Apart from Blue Nile’s acquisition, Signet has also posted its full-year fiscal 2023 and second-quarter earnings.
According to the executive, they have taken the pressure on the consumers and the macroeconomic conditions into consideration while posting the guidance.
As per Signet, they are well aware of the pressure that has been building up on the consumers due to the rise in the inflation rates as well as spiking interest rates.
With the pressure growing on the consumers, they will prefer discretionary spending. Then there are macroeconomic conditions such as shortage of supplies that may also disrupt their operations.
Softer Sales in July
Virginia Drosos, the CEO at Signet revealed has revealed that they have recorded softer sales in the month of July. It has happened as the consumers have started spending their money very carefully.
Being very careful with spending is quite understandable for the customers as the inflation rate being recorded is at a 40-year high.
Earnings Expectations
According to Signet, the earnings they are expecting for the second quarter are $1.75 billion. As for the non-GAAP operating income, they are expecting a total figure of $192 million.
Signet has reportedly lowered its sales expectations for fiscal 2023. Initially, the sales predicted ranged from $8.03 billion to $8.25 billion.
However, the executives posted that the sales range has been reduced from $7.60 billion to $7.70 billion. Initially, the expected range for non-GAAP operating income had been set to $921 million to $974 million, which has been reduced to $787 million to $828 million.
After the announcement of acquiring the Blue Nile, the share prices for Signet Jewelers have risen by 8.79%. At the time of writing, the share prices for Signet Jewelers stood at $65.01. In the past 12 months, the share prices for Signet Jewelers have gained a 2.70% surge.