Signet Jewelers Analyst Looks For Updates On Digital Performance & New Capabilities In Q3 Report

Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Signet Jewelers Ltd SIG with a price target of $72.
The analyst expects total sales to decrease 4.4% Y/Y to $1.47 billion, compared to the consensus forecast of $1.50 billion.
Below the topline, Telsey expects the gross margin to contract 150 basis points Y/Y to 35.9%, as compared to the market's expectation of 34.9%.
The analyst looks for SG&A deleverage of 330 basis points Y/Y to 33.9%, as compared to the consensus forecast of up 220 basis points Y/Y to 32.8%.
The analyst forecasts operating income of $30 million, slightly below the consensus estimate for $32 million.
She mentioned that the company continues to leverage its digital capabilities and technologies to innovate across the business, helping drive topline momentum.
Signet has added several new and more efficient ways for customers to book appointments, in turn driving higher levels of customer engagement.
Notably, the conversion rate for customers who book appointments are three times greater, as compared to a walk-in shopper, while the average transaction value is also 30% higher.
Signet saw a 22% increase in checkout rates in the second quarter after launching its new mobile mini-bag shopping companion.
The analyst added an incremental element of risk, especially as visibility to the macro health of the mass consumer heading into the holiday season remains opaque.
Price Action: SIG shares are trading higher by 3.03% at $64.63 on the last check Tuesday.
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