Why Signet Is One of the ‘Best-Positioned’ Retailers This Holiday Season

MajorsOct 07, 2021

Why Signet Is One of the ‘Best-Positioned’ Retailers This Holiday Season

In a recent note, Wells Fargo outlined how the jewelry giant avoided the supply chain woes currently plaguing retail.

20211007_Monique Lhuillier Bliss Ring.jpg
A 1.25-carat oval diamond engagement ring in 18-karat rose gold from the new “Monique Lhuillier Bliss” collection at Signet-owned banner Kay Jewelers ($11,000). A recent note from Wells Fargo analysts delves into how Signet Jewelers avoided the supply chain issues hampering many retailers.
New York—Supply chain troubles are weighing on some retailers ahead of the holiday season, but Signet Jewelers is all set for a happy holiday, according to Wells Fargo.

On Monday, analysts sat down for a virtual investor meeting with Signet’s management, including CEO Gina Drosos, CFO Joan Hilson, and Vice President of Investor Relations Vinnie Sinisi, to talk about where the jewelry giant stands in the market.

“Signet is one of the few companies in our universe where supply chain disruptions are not having a material impact on the company’s business,” Wells Fargo said in an analyst note shared with National Jeweler.

The company has no exposure to Vietnam, a country hard-hit with supply chain struggles. Its raw material mining happens in India, Russia, Botswana, and Brazil, while its cutting and polishing takes place in India, China, Indonesia, The Philippines, Thailand, Israel, and Belgium.

Signet has a partially vertically integrated supply chain, giving the company more control over delivery times, the note states.

The retailer relies less on cargo ships for product transportation, which means it avoids port delays into the United States from Asia. Most of its products are sent via airfreight.

Signet also placed orders with its vendors early, with more than half of its holiday inventory already on hand.

“Signet is likely one of the best-positioned retailers heading into holiday regarding supply chain headwinds,” said the note.

The analyst note delves into other aspects of Signet’s business, including its service offerings.

There may be big money to be made in its services business, which includes repairs, jewelry care, extended service plans, warranty and insurance, and its customizations services, like through the new Jared Foundry.

The segment could reach $1 billion in revenue over the next few years, a marked difference from the $300 million it generated in the last fiscal year.

Wells Fargo estimates the U.S. jewelry service and repair business to be in the $3 billion range total, though it is “highly fragmented.”

As Signet is the market share leader, the company has the opportunity to gain greater market share by leveraging its size, making the most of its 1,400 “jewelry experts.”

Services also foster customer loyalty, said analysts, keeping shoppers in the Signet ecosystem.

The jewelry giant has also been prioritizing differentiating its banners, tailoring each to cater to a specific set of customers rather than cannibalizing each other.

The change has brought new customers to each banner, said the note, and has also been a winning strategy for retaining customers.

 Related stories will be right here … 

While the note focuses on Signet, it also highlights the strength of the jewelry category overall.

“Jewelry has been a clear COVID category winner,” said the note, highlighting its strong double-digit growth over the last six to eight months.

While the strength of the overall category may have helped to lift Signet, the management team told analysts it intends to continue its growth trajectory, even as spending may shift to experiential purchases.

The company is using its data to better understand its consumers, which is evidently working as store productivity increases and new customers flock to its banners, as per the note.

Signet will also use its e-commerce capabilities to scoop up more market share.

The mid-market jewelry category is worth around $35 billion, with nearly 70 percent of the market share held by less tech-savvy independents, analysts noted.

“As consumers continue to become more comfortable buying jewelry online, Signet is positioned to capitalize on this trend and take share from independents who lack e-commerce capabilities,” said the note.

“The company has numerous competitive advantages that cannot be replicated by its smaller, independent and regional competitors, including robust digital and omnichannel capabilities.” 

However, competition from department stores entering the market and digital-only companies could be an impediment to Signet achieving its goal of a 9 percent market share, up from its current 6 percent.

Wells Fargo maintained its “Overweight” rating on the company with a price target of $100.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Lightbox x Roséate Light Wand pendants
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany Exec

The lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.

Lila Moss Calvin Klein campaign
FinancialsDec 01, 2023
Movado Lowers Guidance Again After Q3 Sales Dip

The company said it is facing a “challenging retail environment” but is prepared for the holiday season.

Muzo emerald and argyle pink diamond necklace
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond Necklace

It’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.

Platinum  Guild International Diamond Rings
Brought to you by
If It’s Custom, Make It Platinum

With holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.

Pink Supreme Diamond
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong Kong

The 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.

Weekly QuizNov 30, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
133 carat yellow diamond
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow Diamond

The stone headlining the upcoming sale could fetch up to $5 million.

Kwiat diamonds
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ Program

The retail offering lets customers track their diamond’s journey.

Brought to you by
Did You Know? The Vital Role of IGI: The International Gemological Institute

In a world where the sparkle of a gemstone is only as brilliant as the trust behind it, IGI's purpose is truly invaluable.

Diamond development hub in Angola
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola

The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.

Holiday shoppers holding bags
SurveysNov 29, 2023
Holiday Shoppers Broke a Record This Weekend, Says NRF

From Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.

EditorsNov 29, 2023
Warren Buffett on Success, Mistakes and Betting on America

The best quotes from the Oracle of Omaha and his right-hand man Charlie Munger from the 2018 Berkshire Hathaway shareholders meeting.

J. Dostie Jewelers
IndependentsNov 28, 2023
Maine Jeweler to Relocate After 76 Years

J. Dostie Jewelers will move from Lewiston to Yarmouth this spring.

Finks Jewelers new store
IndependentsNov 28, 2023
Fink’s Jewelers Opens 10th Store

It’s the company’s second location in Tennessee.

Mary Tyler Moore and a pair of Elsa Peretti Bone Cuffs
AuctionsNov 28, 2023
Mary Tyler Moore’s Jewelry Is Up For Auction

You can have this jewelry, why don’t you take it?

Original Miami Beach Antique Show 2024
Events & AwardsNov 28, 2023
The Original Miami Beach Antique Show Is Celebrating 60 Years

Next year’s milestone show will be full of educational programming and collaborations.

De Beers Metamorphosis high jewelry earrings
EditorsNov 27, 2023
10 Tips for Selling Diamonds This Holiday Season

Sales experts and a diamantaire share their best advice on how to send customers home with diamond jewelry.

Platinum Born new collection
CollectionsNov 27, 2023
See the New ‘Platinum Born’ Jewelry

The brand has released five new collections.

Frank Adams Jewelers
IndependentsNov 27, 2023
Frank Adams Jewelers Named ‘Family Business of the Year’

The Albany Business Review recently honored the 100-year-old company.

GIA Dr. John W. Valley
GradingNov 27, 2023
Dr. John W. Valley Retires from GIA Board of Governors

To honor his legacy, GIA has set up a scholarship in his name.

Stock image of police car with its lights on
CrimeNov 22, 2023
JSA Warns of Surge in Attacks on Jewelers on the Road

There have been eight attacks in the last month, spanning from a jewelry store parking lot in Rhode Island to highways in California.

Buddha Mama citrine bangle
TrendsNov 22, 2023
Amanda’s Style File: November Glow

These 15 pieces of jewelry celebrate November babies and the hues of citrine and topaz that reflect the colors of the season.

Columbia Gem House fundraiser
SourcingNov 22, 2023
Columbia Gem House Raises $12K for Wildlife

The money will help a nonprofit rehabilitate sea turtles.

Facet Barcelona factory opening
MajorsNov 22, 2023
Facet Barcelona Opens New Factory in Spain

The jewelry manufacturer said it can now better serve the North American market.

David Yurman holiday campaign
TechnologyNov 21, 2023
See David Yurman’s New High-Tech Holiday Campaign

The jewelry brand takes viewers through a virtual winter wonderland set in New York City.

2023 Rock the Jewels Awards winners
Events & AwardsNov 21, 2023
Here Are the Winners of BIJC’s Inaugural ‘Rock the Jewels’ Awards

The organization recognized outstanding industry players at its celebratory event.

Rough diamonds from De Beers Gahcho Kue mine
SourcingNov 21, 2023
De Beers’ Rough Diamond Sales Sink to $80M

India’s voluntary moratorium on rough diamond imports coupled with a stunted recovery in China continue to impact the miner.

Smart Age Solutions founder and CEO Emmanuel Raheb
ColumnistsNov 21, 2023
The Smart Lab: Score Big During Football Season With Hulu Advertising

Emmanuel Raheb outlines three reasons why Hulu advertising and football can be a game changer for your jewelry store’s marketing.


This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy