Signet Jewelers To Acquire Diamonds Direct For $490M; Raises Q3, FY22 Outlook

Signet Jewelers Ltd 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 $1.6 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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