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Signet Jewelers to buy Diamonds Direct for $490m

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Signet jewelers to buy diamonds direct for $490m
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Signet Jewelers announced Tuesday it has agreed to buy the off-mall jewelry chain Diamonds Direct USA for $490 million in cash, with a view to reaching younger shoppers and inching closer to hitting its annual revenue goal of $9 billion.

Signet, which owns jewelry chains Kay Jewelers, Zales and Jared, also raised its outlook for the fiscal third quarter and for the year. The company said consumer demand is high ahead of the holiday season, and it’s not suffering from supply chain disruptions like many of its peers in the retail industry.

“Customers are showing positive response to our new product launches, and the reduction in government stimulus and customer shift to spending on entertainment and travel are having less impact than we previously anticipated,” said Chief Financial Officer Joan Hilson, in a press release.

Tags: Diamonds DirectJewelryRetailSignet Jewelers

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