Signet bought Blue Nile 

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images - Signet bought Blue Nile 

The shocking news comes to the Jewelry world. One of the world’s leading retailers of diamond jewelry bought a leading online retailer of engagement rings and fine jewelry, for $360 million in cash. In 2021, Blue Nile made roughly half a billion in sales. That is why Signet expects benefits from the acquisition to become accretive next year.

Virginia Drosos, CEO of Signet, similarly complimented Blue Nile’s online presence and said that the acquisition will help Signet increase consumer choice, develop new capabilities, and realize “significant operating benefits” that were not yet defined.

In a recent report, Cowen analysts stated that they were “impressed with the range of fine jewelry SKU’s” at the Blue Nile, adding that the Blue Nile and fellow digital native Brilliant Earth showed good omnichannel execution. In contrast to Brilliant Earth and Signet, which scored above 13% in the metric, Blue Nile had the lowest EBITDA margin (1.8%) at the time, according to Cowen.

Once the sale is finalized, Blue Nile—along with Jared, James Allen, and the recently acquired Diamonds Direct—will soar to the top of Signet’s luxury banners.

In order to further improve consumer shopping experiences and generate value for shareholders, Signet is accelerating its efforts to grow its Accessible Luxury portfolio, increase its bridal offerings, and extend its digital leadership in the jewelry category with the strategic acquisition of Blue Nile. The Blue Nile will widen our customer acquisition funnel by bringing a desirable consumer base that is younger, more affluent, and ethnically diverse. Upon completion, Blue Nile will be placed strategically with Jared, James Allen, and Diamonds Direct at the top of Signet’s Accessible Luxury banners.

According to Signet Chief Executive Officer Virginia C. Drosos, “Blue Nile is a pioneer and innovator in online engagement rings and fine jewelry, providing a unique and highly desirable shopping experience for clients.” “Adding Blue Nile to our strong and diverse portfolio of banners will further drive our Inspiring Brilliance growth strategy, expanding customer choice, developing new capabilities, and achieving meaningful operating synergies that will increase value for both our consumers and shareholders,” says the company.

Sean Kell, CEO of Blue Nile, stated that by joining Signet, the company would be able to reach millions of new clients with its premium brand and fine jewelry selection while also enhancing its leading e-commerce operation. “We’re equally excited to join a purpose-driven and sustainability-oriented organization that shares our fundamental values and has been certified as a Great Place to Work®,” the statement continued.

About Signet

The largest diamond jewelry retailer in the world is Signet Jewelers Limited. Signet is a member of the United Nations Global Compact and follows its principles-based approach to responsible business as a purpose-driven and sustainability-focused organization. A Great Place to Work -CertifiedTM organization, Signet has been included in the Bloomberg Gender-Equality Index for four years running. About 2,800 of Signet’s stores are operated under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Peoples, H. Samuel, Ernest Jones, and the Rocksbox jewelry subscription service. You may learn more about Signet by visiting their website, www.signetjewelers.com.

About the Blue Nile

The leading online seller of GIA-graded fine jewelry and high-quality, conflict-free diamonds is Blue Nile, Inc. By offering professional advice, thorough educational resources, and cutting-edge online technologies that put customers in charge of the jewelry shopping process, the company offers a highly desirable experience for buying engagement rings, wedding bands, and fine jewelry. The Blue Nile offers thousands of independently graded diamonds and exquisite jewelry, and it boasts some of the highest quality standards in the business. The Blue Nile has 21 physical showrooms spread across the United States as well as a website at www.bluenile.com.

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