Signet Jewelers, an international jewelry retailer, has announced its acquisition of Diamonds Direct USA for $490 million in cash. Diamonds Direct, known for its efficient operations and strong growth, is an off-mall jeweler based in Charlotte, North Carolina.

Signet sees the acquisition as an immediate value contributor, citing Diamonds Direct’s customer-centric shopping experience, wide range of bridal products, solid value proposition, and appeal to younger consumers as major strengths. The company plans to leverage its scale to achieve operating synergies in purchasing, targeted marketing, and connected commerce.

Signet CEO Virginia Drosos is thrilled about the addition of Diamonds Direct and believes it will help the company build lifetime customer relationships and achieve its goal of reaching $9 billion in revenue. Diamonds Direct President Itay Berger is also excited about joining the Signet family and leveraging the company’s strengths to enhance the shopping experience.

Diamonds Direct’s current leadership will remain in place, with Berger reporting directly to Drosos. The brand will become part of Signet’s portfolio, which includes well-known retail jewelry brands like Kay Jewelers, Zales, and Jared.

As part of the announcement, Signet also raised its financial guidance for the third quarter and full fiscal year. The company now expects third-quarter revenues between $1.42 billion and $1.45 billion, with a year-over-year increase in same-store sales of 10% to 12%. Full-year revenue is projected to be between $7.04 billion and $7.19 billion, with same-store sales growth of 35% to 38%.

In its most recent financial report, Signet reported net income of $216.0 million on revenues of $1.8 billion. With the acquisition of Diamonds Direct and the revised financial guidance, the company is positioning itself for continued success in the jewelry retail industry.

[Link 1: Signet Jewelers Limited]
[Link 2: Diamonds Direct USA Inc.]