Signet Jewelers To Acquire Diamonds Direct For $490M; Raises Q3, FY22 Outlook
Signet Jewelers Ltd (NYSE: SIG) has agreed to acquire Diamonds Direct USA Inc, an off-mall, destination jeweler in the U.S., for $490 million in an all-cash transaction.
Signet expects the acquisition to be immediately accretive to earnings post-closing and expand its growth potential in bridal offerings.
Signet held .6 billion in cash and equivalents as of July 31, 2021. It expects the deal to close in the fourth quarter of Fiscal 2022.
Outlook: Signet has also raised Q3 sales guidance to $1.42 billion - $1.45 billion (prior $1.26 billion - $1.31 billion) versus the consensus of $1.28 billion.
It expects Q3 same-store sales to rise 10% - 12% (prior view ((3%) - 1%).
For the fiscal year 2022, Signet expects total revenue of $7.04 billion - $7.19 billion (prior view $6.80 billion - $6.95 billion) versus the consensus of $6.96 billion.
It expects FY22 same store sales growth of 35% - 38% (previous view 30% - 33%).
Price Action: SIG shares are trading higher by 5.29% at $86.39 in premarket on the last check Tuesday.
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