Majors

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 senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

National Associate of Jewelry Appraisers Logo
Events & AwardsJul 21, 2025
NAJA’s 2025 ‘Ace It’ Conference To Go Virtual

The mid-year conference for jewelry and watch appraisers is slated for Aug. 9 to 10 on Zoom.

Jacquie Aiche graduated turquoise beaded necklace
TrendsJul 21, 2025
Amanda’s Style File: Graduated With Honors

Graduated stones make for elevated tennis-style pieces and dramatic statement necklaces.

24th Gem Awards Show Logo
Events & AwardsJul 21, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

CCWW Designs Multiple Shell Charm Necklace
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm Necklace

The charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.

Weekly QuizJul 17, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
The Plumb Club board members
MajorsJul 18, 2025
Plumb Club Elects New Board Members

The organization elected its youngest vice president as it looks to draw in fresh talent.

Jewelry industry veterans Brad Campbell and John Liebler
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team

Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Silver, Gold, and Bronze Medals for Italy Olympic Winter Games
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes Unity

The medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.

vimeo screenshot.png
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up!

Sponsored by The INSTORE Jewelry Show 2025

Guinness
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGov

Globally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.

Gina Ferranti
IndependentsJul 17, 2025
Gina Ferranti of GiGi Ferranti Jewelry Dies at 59

The Brooklyn-based jewelry designer is remembered as a true artist and a rare talent.

Rio Tinto Chief Executive Simon Trott
SourcingJul 17, 2025
Rio Tinto Names New CEO, Production Rises at Diavik

Production at the mine in Canada’s Northwest Territories topped 1 million carats in Q2, the third consecutive quarter of growth.

Jewelers of America Learning Workship Logo
Events & AwardsJul 17, 2025
JA to Hold Learning Workshops This Fall

A new slate of Learning Workshops will take place in Oklahoma, Mississippi, and Georgia.

Gold bracelets and bangles
SurveysJul 16, 2025
Signet Jewelers Falls Lower on NRF’s ‘Top 100’ Retailers List

The middle class is changing its approach to buying jewelry and affordable luxury goods, the NRF said.

Buccellati Opera high jewelry bracelet
FinancialsJul 16, 2025
Richemont’s Jewelry Sales Up 7% in Q1

It marks the third consecutive quarter of growth for Cartier, Van Cleef & Arpels, Buccellati, and Vhernier.

Rolex Datejust ref. 16233
WatchesJul 16, 2025
The Top-Selling Rolex Models of the Last 15 Years, According to Bob’s Watches

The reseller’s market trends report, based on its sales data, also shows exactly how much Rolex prices have jumped since 2010.

Jean Dinh Van Orgue Ring
AuctionsJul 16, 2025
Christie’s To Honor Dinh Van With Exhibition

The auction house will be hosting a retrospective paying tribute to jeweler Jean Dinh Van and his company’s 60th anniversary.

Jake Duneier and Danielle Duneier
IndependentsJul 16, 2025
Clyde Duneier Ushers In Fourth Generation

Jake Duneier and Danielle Duneier-Goldberg have stepped into the roles of CEO and president, respectively.

Boucheron Impermanence Boucheron Dragonfly Earrings and Wisteria Hair Piece
CollectionsJul 15, 2025
Boucheron’s New High Jewelry Calls Attention to Nature’s Impermanence

The “Impermanence” collection contemplates nature through the Japanese art of Ikebana (flower arranging) and philosophy of wabi-sabi.

James Avery Cedar Park
MajorsJul 15, 2025
James Avery Expands to 2 More States

The Texas-based jewelry retailer has set up shop in Tennessee and Arizona.

Eric Ford, Couture’s new brand director and former fine jewelry buyer at Neiman Marcus
Events & AwardsJul 15, 2025
Neiman Marcus Vet Joins Couture as Brand Director

Eric Ford will step into the role, bringing with him decades of experience.

Bench jeweler holding a ring and a tool
MajorsJul 15, 2025
Ben Bridge Jeweler Acquires Olympic Manufacturing

In addition to improved capabilities, the acquisition will allow the jeweler to offer support to other independent jewelers.

Guzema Celestial Blue
CollectionsJul 15, 2025
Guzema Debuts First Colored Gemstone Jewelry

The “Celestial Blue” capsule collection campaign features Olympian Kateryna Sadurska.

Nanis Mykonos Store Exterior and Interior
MajorsJul 14, 2025
Nanis Opens First Store

The seasonal store, located in Mykonos, Greece, offers exclusive events, personal styling, and curated experiences.

Long’s Jewelers Summer of Love promo
IndependentsJul 14, 2025
It’s the Summer of Love at Long’s Jewelers

The New England jeweler is hosting a bridal event for the month of August.

Ethical Gem Fair
SourcingJul 14, 2025
Ethical Gem Fair Heads to Seattle

The trade-only event will host its debut fair in the Emerald City later this month.

×

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