Signet Jewelers Limited (NYSE: SIG) has acquired jewelry rental subscription platform Rocksbox for an undisclosed amount. The acquisition is expected to help drive growth in the services category. Rocksbox, which allows monthly members to rent and swap designer jewelry pieces, has a strong foothold in online services and through this acquisition Signet plans to tap into a whole new customer base, diversify its revenues and expand its capabilities in connected commerce.
Rocksbox offers jewelry to customers at an affordable price and in a sustainable way as items are re-used throughout the marketplace. The acquisition is expected to help Signet woo self-purchasing women customers, a segment where it is currently under-developed, as well as expand its market share.
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.
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.
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%.
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.
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