SIG -8.58 to 59.09 after lowering guidance and announcing an acquisition -
Nice timing on your sale yesterday !
briefing -
Signet Jewelers signed an agreement to acquire Blue Nile for $360 million in an all cash transaction; sees Q2 revs below consensus, lowers FY23 revenue guidance due to heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds (67.67 ) : The strategic acquisition of Blue Nile accelerates Signet's efforts to expand its bridal offerings and grow its Accessible Luxury portfolio while extending its digital leadership in the jewelry category -- all to further enhance shopping experiences for consumers and create value for shareholders. Blue Nile brings an attractive customer demographic that is younger, more affluent, and ethnically diverse which will broaden our customer acquisition funnel. Upon closing, Blue Nile will be strategically positioned at the top tier of Signet's Accessible Luxury banners along with Jared, James Allen and Diamonds Direct.
Separately, the Company is updating its guidance for the second quarter and full year Fiscal 2023 given heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds.
Co issues downside guidance for Q2 (Jul), sees Q2 (Jul) revs of $1.75 bln vs. $1.78 bln S&P Capital IQ Consensus; non-GAAP operating income is expected to be approximately $192 million
Co issues lowered guidance for FY23 (Jan), sees FY23 (Jan) revs of $7.6-7.7 bln from $8.03-8.25 billion vs. $7.95 bln S&P Capital IQ Consensus. Co also lowers FY23 Non-GAAP operating income guidance to $787-828 million from prior guidance of $921-974 million.
"We saw sales soften in July as our customers have been increasingly impacted by rapid inflation, so we're revising guidance to align with these trends. That said, I'm pleased that revised guidance positions us up ~25% in revenue versus the FY20 pre-pandemic period. In addition, our transformed operating model and strong balance sheet give us dry powder, even in a down market, to invest in market share expansion as we are doing organically in our banners and with the acquisition of Blue Nile. We believe this acquisition brings additional value, capabilities, and further growth potential to our Company."
