Strategy
The Rocksbox acquisition is a part of Signet’s Inspiring Brilliance growth strategy. The company plans to expand its existing services such as repair, warranty services and piercings and also introduce new ones.
The Inspiring Brilliance strategy aims to drive long-term growth by using data-driven insights to attract new customers and provide personalized experiences to existing customers. The company will also expand its connected commerce capabilities and bring together its physical and digital channels to provide fast and flexible service to customers.
The Inspiring Brilliance strategy is expected to drive cost savings in the range of $175-200 million over the next three years.
Results
Signet generated total sales of $5.2 billion for FY2021, which was down nearly 15% compared to the prior-year on a reported basis. Same-store sales were down around 11% for the year. Ecommerce sales rose around 58% YoY to $1.2 billion in 2021. Ecommerce comprised nearly 23% of total sales, up from 12% last year.
Outlook
For the first quarter of 2022, Signet expects total revenue to be $1.42-1.46 billion and same store sales to range between 80-84%. For fiscal year 2022, total revenue is estimated to be $5.85-6.00 billion while same store sales is expected to range between 14-17%.
Stock
Shares of Signet were down 1.5% in afternoon trade on Tuesday. The stock has skyrocketed over 755% in the past 12 months and 113% since the beginning of this year.