Signet Jewelers reported a positive performance for its second quarter Fiscal 2018, with same store sales up 1.4 percent, driven by eCommerce platform improvements, Mother's Day performance and timing, effective marketing and bridal promotion initiatives.
The stock market liked the results, along with its announcement that it will acquire R2Net, the owner of JamesAllen.com and Segoma Imaging Technologies, for $328 million in an all cash transaction. Signet's stock price was up more than 20 percent in early trading.
Virginia C. Drosos, Chief Executive Officer of Signet Jewelers, said, "Our encouraging second quarter performance reflects Signet's fundamental competitive strengths and the progress we are making on our strategic priorities. We delivered positive same store sales performance and managed our cost base to deliver operating margin expansion in a highly promotional environment. Further, today we announced the acquisition of JamesAllen.com to add a leading, fast-growing online jeweler to our portfolio. The acquisition will enhance our innovation and digital capabilities with R2Net’s technology to create a best-in-class OmniChannel shopping experience across our banners. Based on this positive momentum, we are increasingly confident that Signet is well-positioned for the upcoming holiday selling season and on track to achieve our financial targets for the year.
“I am stepping into the CEO role at an exciting time for Signet. Together with my leadership team, I am acutely focused on deepening our understanding of consumers, reinventing our OmniChannel shopping experience, and elevating our brand messaging and product assortment."