Signet Looks for More Investments Following Blue Nile Purchase

Signet Jewelers reported a slight drop in quarterly sales Thursday (Sept. 1) but said it is positioned to keep making investments like its recent purchase of online jeweler Blue Nile.

“Adding Blue Nile to our strong and diversified portfolio of banners will further drive our Inspiring Brilliance growth strategy — expanding customer choice, building new capabilities, and achieving meaningful operating synergies that will increase value for both our consumers and shareholders,” Signet CEO Virginia C. Drosos said last month.

Read more: Signet Jewelers Buys Blue Nile to Tap Bridal Market, Expand Digital

Signet’s total sales for the second quarter of the fiscal year 2023 were $1.8 billion, down $33.2 million or 1.9% and up 29% from the same quarter in the fiscal year 2020, according to a press release. Same-store sales, meanwhile, fell 8.2%.

“The discipline of our Signet team delivered $1.8 billion in revenue and a 10.6% operating margin, despite a softer topline environment,” said Chief Financial and Strategy Officer Joan Hilson in the release. “Our working capital efficiency reflects inventory levels down year over year, excluding acquisitions. This gives us the confidence that we are well positioned to deliver newness with minimal levels of clearance for the holidays.”

Signet announced last month it was acquiring Blue Nile for $360 million in a bid to expand its bridal offerings and its digital capabilities.

It’s part of a broader trend of jewelers turning their attention to digital sales to attract younger consumers. And as PYMNTS noted last month, that means a greater focus on offering ethically-sourced diamonds.

See more: Jewelers Mine the Market for Young Customers With Shift to Digital Diamonds

In the case of Signet, purchasing Blue Nile meant aligning that company’s focus on ethically sourced, conflict-free materials in its designs with its own sustainable and ethical approach to sourcing and supply chain transparency.

“By joining Signet, we will extend our premium brand and fine jewelry offering to millions of new customers while bringing new capabilities to our leading eCommerce business that will drive additional growth opportunities for Blue Nile,” Blue Nile CEO Sean Kell said in a press release last month. “We’re equally thrilled to join a purpose-inspired and sustainability-focused company that shares our core values.”

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