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

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.
  • Photo Via Company
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