Yahoo Finance Signet (SIG) Rides on Omnichannel Efforts, Up 42.5% in 6 Months
Signet Jewelers Limited SIG appears impressive, thanks to its sturdy omnichannel capabilities. The company has been gaining from growth in the e-commerce business and advancements with respect to the Inspiring Brilliance strategy. Solid gains from growth initiatives like unique banner value propositions, marketing efforts and advanced connected-commerce capabilities are also aiding its performance. SIG’s innovation efforts also bode well.
Buoyed by these endeavors, shares of this jewelry retailer have increased 42.5% in the past six months compared with the industry’s 1% drop. This current Zacks Rank #3 (Hold) stock has an expected earnings growth rate of 8% and a VGM Score of B.
Let’s Delve Deeper
Digital business is the key growth driver. The company is focused on enhancing the data- analytics capabilities with higher precision. It is leveraging the analytics capability to optimize the way of adding product assortments. Management has also been building on the trade area data with customer e-commerce trends, location data such as GPS tracking and macro-level data with traffic draw, tenant adjacencies and customer demographics.
The company added several features and capabilities across its digital platform to offer a seamless customer experience. It has rolled out Google Business Messages and Apple Business Chat features, which allow customers to engage virtual jewelry consultants in real-time or offline from search results or maps. The company has been offering curbside pickup, virtual consultations and buy online pick up in store in various locations.
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Signet has been making smart moves to enrich customers’ experience. The company has been integrating its physical stores with advanced virtual experiences through data-driven in-store consultations and services like buy online pick up in store and curbside options. The company has been witnessing improvements at nearly all of the digital touchpoints. Loyalty and digital enrolment increased 2.9 times in the fourth quarter of fiscal 2023 compared with the third quarter. Two-way SMS contributed 20% to digital sales. Overall, digital as a rate of overall sales is nearly four times the pre-transformation levels.
We note that Signet’s Inspiring Brilliance strategy appears encouraging. The growth strategy focuses on expanding big banners, boosting services, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce, among others. As part of the Inspiring Brilliance growth strategy, the company uses data-driven insights to target new and existing customers.
Signet’s acquisition of Diamonds Direct USA Inc appears encouraging too. Diamonds Direct is known for its unique bridal-focused collections and shopping experience. This has become the company’s highly-personalized bridal destination, offering customers valuable bridal experiences. Signet has been boosting customization services. The acquisition of Blue Nile looks encouraging. Blue Nile is the pioneer in online diamond marketplace shopping, thus enhancing the company’s portfolio and its customer base.
Signet will continue to perform well on the bourses, courtesy of the factors discussed above. In addition, analysts are optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $7.93 billion and $12.03, respectively. These estimates suggest increases of 2.5% and 7.6% year over year, respectively.
Solid Picks in Retail
We have highlighted three top-ranked stocks, Urban Outfitters URBN, Stitch Fix SFIX and Boot Barn BOOT.
Urban Outfitters, a retailer of fashion apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 4.3% and 41.7%, respectively, from the year-ago reported figures. URBN delivered break-even earnings in the last reported quarter.
Stitch Fix, a leading online personal styling retailer, currently sports a Zacks Rank #2.
The Zacks Consensus Estimate for Stitch Fix’s current financial-year sales and EPS suggests growth of 1.2% from the year-ago reported figure. SFIX delivered a negative earnings surprise of 3% in the last reported quarter.
Boot Barn, a fashion apparel and accessories retailer, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales suggests growth of 8.2% from the year-ago reported figure.
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Signet Jewelers Limited (SIG) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
