MajorsOct 07, 2021
Why Signet Is One of the ‘Best-Positioned’ Retailers This Holiday SeasonMajorsOct 12, 2021
Signet to Acquire Diamonds Direct in $490M Deal
The chain’s 22 locations will continue to operate as Diamonds Direct stores but become part of the growing Signet portfolio.
Diamonds Direct USA Inc. operates 22 stores in 13 states and has its corporate headquarters in Charlotte, North Carolina. Signet Jewelers Ltd. is set to acquire the chain for $490 million in cash.
Fairlawn, Ohio—Signet Jewelers Ltd., already the largest specialty jeweler in North America by a wide margin, plans to make another acquisition.
On Tuesday morning, the company announced plans to acquire Diamonds Direct USA Inc., the Charlotte, North Carolina-based retailer that operates 22 freestanding stores in 13 states and emphasizes price and selection as its selling points.
Signet is acquiring the jeweler in a $490 million all-cash transaction that is expected to close in the fourth quarter of Signet’s fiscal 2022.
Following the acquisition, all the chain’s locations will continue to operate as Diamonds Direct stores and its branded offerings will remain intact.
The retailer’s leadership team will remain in place as well, Signet said. Diamonds Direct President Itay Berger will report to Signet CEO Gina Drosos.
“I am excited about Diamonds Direct joining the Signet family as we share a passion for company culture that prioritizes our team members, our customers and our community,” Berger said in the release. “We are thrilled to continue to grow our business, leveraging Signet’s strengths and strategic capabilities to bring even more innovation and value to our signature shopping experience.”
For Signet, the acquisition of Diamonds Direct gives it a banner that is bridal-focused and appeals to a younger demographic.
“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,” Drosos said.
Related stories will be right here …
On Tuesday morning, the company announced plans to acquire Diamonds Direct USA Inc., the Charlotte, North Carolina-based retailer that operates 22 freestanding stores in 13 states and emphasizes price and selection as its selling points.
Signet is acquiring the jeweler in a $490 million all-cash transaction that is expected to close in the fourth quarter of Signet’s fiscal 2022.
Following the acquisition, all the chain’s locations will continue to operate as Diamonds Direct stores and its branded offerings will remain intact.
The retailer’s leadership team will remain in place as well, Signet said. Diamonds Direct President Itay Berger will report to Signet CEO Gina Drosos.
“I am excited about Diamonds Direct joining the Signet family as we share a passion for company culture that prioritizes our team members, our customers and our community,” Berger said in the release. “We are thrilled to continue to grow our business, leveraging Signet’s strengths and strategic capabilities to bring even more innovation and value to our signature shopping experience.”
For Signet, the acquisition of Diamonds Direct gives it a banner that is bridal-focused and appeals to a younger demographic.
“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,” Drosos said.
The planned acquisition of Diamonds Direct is the latest in a line of acquisitions, changes and additions for Signet, which has outperformed since the start of the pandemic due to digital innovation and a shift from spending on experiences and travel to fine jewelry.
Earlier this year, the company acquired jewelry rental/subscription service Rocksbox, added lines from tennis superstar Serena Williams and bridal designer Monique Lhuillier, and rebranded one of its most successful banners, Piercing Pagoda.
It also outlined a set of 44 ambitious sustainability goals for the next decade, which include fostering greater diversity in its workplace and among suppliers, and helping to fight climate change.
Alongside the announcement of the acquisition, Signet announced it is raising its financial guidance for the third time this fiscal year.
The jeweler now expects third quarter same-store sales growth of 10-12 percent, up from earlier guidance of 1 percent comp growth at best.
For the full year, same-store sales are expected to grow 35-38 percent, up from the previous prediction of 30-33 percent. Revenue is expected to top $7 billion.
In raising the guidance, Chief Financial and Strategy Officer Joan Hilson echoed what Wells Fargo analysts said in a note last week—Signet is not beset with the same supply chain issues currently facing many retailers and continues to benefit from strong jewelry sales.
“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 Hilson.
“While there remain factors beyond our control, our strengthened supply chain and vendor partnerships gave us the ability to plan earlier receipt of holiday product, and we currently do not expect any material supply chain disruptions. Signet uses air freight for the transit of the vast majority of our merchandise, thus avoiding current ocean freight congestion.”
The jeweler now expects third quarter same-store sales growth of 10-12 percent, up from earlier guidance of 1 percent comp growth at best.
For the full year, same-store sales are expected to grow 35-38 percent, up from the previous prediction of 30-33 percent. Revenue is expected to top $7 billion.
In raising the guidance, Chief Financial and Strategy Officer Joan Hilson echoed what Wells Fargo analysts said in a note last week—Signet is not beset with the same supply chain issues currently facing many retailers and continues to benefit from strong jewelry sales.
“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 Hilson.
“While there remain factors beyond our control, our strengthened supply chain and vendor partnerships gave us the ability to plan earlier receipt of holiday product, and we currently do not expect any material supply chain disruptions. Signet uses air freight for the transit of the vast majority of our merchandise, thus avoiding current ocean freight congestion.”
EditorsApr 01, 2021
What’s Next for Signet JewelersMore on Majors
The Latest
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
SourcingDec 12, 2024
De Beers Announces 2024 ‘Shining Light’ Award WinnersThe competition awarded 12 designers, each from a country where De Beers recovers diamonds, with business support and tuition assistance.
