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Here's Why Signet (SIG) Gains More Than 80% in Past 6 Months

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Shares of Signet Jewelers Limited SIG have surged a whopping 82.8% in the past six months, thanks to its sturdy digital endeavors and other robust strategic initiatives. The company is reinforcing the online shopping experience with advanced virtual and digitally native experiences. Following the successful execution of its Path to Brilliance initiative, the company entered into the next phase of its growth strategy, which is Inspiring Brilliance.

We note that the Zacks Retail – Jewelry industry, which ranks among the top 18% of all the Zacks classified industries, has rallied 78.6% in a six-month time frame.

Let’s Delve Deeper

Signet is consistently integrating its physical stores into the digital customer experience through data-driven in-store consultations, and a buy online pickup in-store and curbside option. Management looks to combine the digital and in-store experiences to gain a substantial competitive edge. The company is also making interactions across websites, stores and inventory pipeline.

It added more than 100 features and capabilities across its digital platforms to offer a seamless customer experience. It also 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 buyout of Rocksbox, a jewelry rental subscription service, continues to expedite the company’s online service offerings.

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Zacks Investment Research

Image Source: Zacks Investment Research

During first-quarter fiscal 2022, e-commerce sales increased 110.3% year over year to $346.3 million. While e-commerce sales in North America segment surged 113.4% year over year, the metric at the International segment rose 80% in the same quarter. This upside was driven by the company’s constant efforts to bolster its omni-channel capabilities. Its overall brick-and-mortar same-store sales also soared 105.7% year over year.

Signet’s Inspiring Brilliance strategy focuses on expanding its big banners, boosting service revenues, broadening the Accessible Luxury and Value segments as well as accelerating digital commerce. As part of this growth strategy, the company will make use of data-driven insights for targeting new and existing customers. It is working toward evolving its Customer First strategy into a consumer-inspired experience, which includes tailored merchandise assortments and expanded services. The strategy also includes transformational productivity, which is mainly focused on achieving efficiency.

What’s More?

Apart from the aforesaid strengths, the company is steadily witnessing impressive growth across Kay, Zales, Jared and Piercing Pagoda brands on the back of its efficient consumer-oriented strategies. Broad-based growth across formats, regions, channels and categories is also fueling the company’s top line. During first-quarter fiscal 2022, the top line increased 98.2% year over year while total same-store sales surged 106.5%.

Backed by a stellar first-quarter performance, revenues are projected within $6.50-$6.65 billion for fiscal 2022, indicating growth from $5.23 billion delivered last fiscal. It expects same-store sales in the 24-27% band for the current fiscal year. It predicts to generate gross cost savings worth $75-$95 million during fiscal 2022.

Wrapping up, we believe, Signet will continue with its solid momentum in the future based on its robust growth efforts. This currently Zacks Rank #1 (Strong Buy) stock has a VGM Score of A coupled with an expected long-term earnings growth rate of 8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

3 More Solid Retail Bets

Abercrombie & Fitch ANF has a long-term earnings growth rate of 18%. It presently sports a Zacks Rank of 1.

Boot Barn BOOT has a trailing four-quarter earnings surprise of 51.7%, on average. The stock is currently Zacks #1 Ranked.

L Brands LB has a long-term earnings growth rate of 13%. It currently carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

Signet Jewelers Limited (SIG) : Free Stock Analysis Report

Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report

L Brands, Inc. (LB) : Free Stock Analysis Report

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