Signet Jewelers has entered into an agreement to acquire Diamonds Direct USA Inc., an American off-mall, destination jeweller, for $490 million in an all cash transaction expected to close in Q4 of Fiscal 2022.
Diamonds Direct’s strong value proposition, extensive bridal offering and customer-centric, high-touch shopping experience is a destination for younger, luxury-oriented bridal shoppers. Signet plans to drive operating synergies by leveraging scale in purchasing, targeted marketing, Connected Commerce and jewellery services.
“The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time,” said Signet CEO, Virginia C. Drosos. “The Signet team continues to deliver strong business performance as part of our Inspiring Brilliance growth strategy. We are executing on our strategic priorities and investing in our business, while also returning cash to shareholders through our previously announced reinstated dividend and share buy-back program.”
Signet raised its Fiscal 2022 guidance on continued strong business momentum as results to-date have exceeded expectations. The company now expects full year revenue growth of 35-38% to between $7.04 billion and $7.19 billion.
“Customers are showing positive response to our new product launches, and the reduction in government stimulus and customer shift to spending on entertainment and travel are having less impact than we previously anticipated,” said Joan Hilson, Chief Financial and Strategy Officer.