Signet Jewelers (NYSE: SIG), parent company of Zales, Jared, and Kay Jewelers, revealed plans to acquire online jeweler Blue Nile in an all-cash USD360 Million deal as it strives to bring in a younger clientele and expand its bridal business. However, the company cut its financial forecast for the second quarter as well as the full year fiscal 2023 amid the“heightened pressure on consumers’ discretionary spending”.
According to Chief Executive Officer Virginia Drosos, the company experienced a dip in July sales as inflation reached a 40-year-high. Signet now anticipates second-quarter revenue to be around USD1.75 Billion and non-GAAP operating income of around USD192 Million.
“Blue Nile is a pioneer and innovator in online engagement rings and fine jewelry, providing a unique and highly desirable shopping experience for customers,” said Signet Chief Executive Officer Virginia C. Drosos. “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.”
Blue Nile and special-purpose acquisition company Mudrick Capital Acquisition Corp. had previously announced a merger deal that would permit the Jewelry retailer to go public through a SPAC deal. Nevertheless, according to a person familiar with the matter, their exclusive window was about to expire.
“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 e-commerce business that will drive additional growth opportunities for Blue Nile,” said Sean Kell, CEO of Blue Nile. “We’re equally thrilled to join a purpose-inspired and sustainability-focused company that shares our core values and has been recognized as a certified Great Place to Work®.”