Happy Consumers Lead to a Happy Signet

[PinkDiamond]

Signet has been in the news a lot lately, and this one talks about their stats so far, what they expect to do over the next year, and how they plan to hit their goals. We're seeing more and more articles saying that with the vaccine rollout they expect consumers to start re-allocating funds for experiential things such as vacations/trips, but with so many people resisting the serums, which are not actually vaccines, and only received rushed approval for emergency use, I think enough people won't be able to travel so they'll still funnel their money into gems and meaningful jewelry for a while, so they could do quite well. Time will tell, but let's hope the buying trend continues.

Happy Consumers Lead to a Happy Signet
By Rob Bates | April 12, 2021



"Signet Jewelers says the positive consumer mood has boosted both its conversion rates and average ticket price, and as a result the company has raised revenue and income guidance for the first quarter and the fiscal year.

It now expects its revenue for the 2022 fiscal year—which started in February—to fall somewhere between $6 billion and $6.14 billion, up from previous guidance of $5.85 billion to $6 billion. First-quarter revenue will hit $1.57 billion to $1.60 billion, up from the previously forecast $1.42 billion to $1.46 billion.

The company’s statement did contain a few provisos, warning that, as the vaccine rollout continues, consumer spending could shift from jewelry to more experience-oriented categories like travel. It also expects those categories with pent-up demand to become more promotional.

As a result, Signet expects comps in the second half of the fiscal year to be negative—though it’s planning to fight any increased competition by boosting its marketing efforts.

It also said that while it’s planning to close 100 stores over the next year, it will also open 100, “primarily in highly efficient kiosks.” Over the last few years, its kiosk-based Piercing Pagoda division has turned into one of its best-performing banners.

Signet is also planning to spend between $150 million and $175 million in capital expenditures over the next year, mostly on “innovation” and improving digital capabilities.

That will be partly made up by projected, but unspecified, cost savings of $50 million to $75 million.

One way the retailer has been conserving cash is by ... "
https://www.jckonline.com/editorial-art ... py-signet/