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Signet Jewelers Limited (SIG)

  • May. 29, 2014, 5:22 PM
    • Signet Jewelers (SIG) completes its $1.46B acquisition of Zale (ZLC) after winning approval from a majority of ZLC shareholders. overcoming opposition from some major shareholders (I, II) and proxy adviser Glass Lewis.
    • SIG, already the largest U.S. operator of jewelry stores before the deal, is now nearly 3x bigger than the upscale Tiffany (TIF) in terms of U.S. sales, with a 14.6% market share.
    • SIG says it expects the acquisition will increase its per-share earnings in the high single-digits on a percentage basis after a year, and generate cost savings of $100M after three years.
    • SIG +3.5% in today's trade.
    | 1 Comment
  • May. 23, 2014, 6:16 PM
    • Mario Gabelli becomes the second large Zale's (ZLC) shareholder to come out against the proposed sale to Signet (SIG), saying he may seek a second opinion on the deal's $21/share price in court.
    • Gabelli, whose funds own 7.45% of ZLC, says in an SEC filing he had "commenced the process to be able to assert appraisal rights" - a legal process that lets shareholders reject a merger deal and instead ask a judge to independently value their shares.
    • Another large Zale investor, TIG Advisors, is trying to rally opposition to the sale ahead of a vote set for next Thursday, but Golden Gate Capital, which controls 23% of ZLC, plans to vote in favor of the deal.
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  • May. 23, 2014, 3:08 PM
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  • May. 22, 2014, 7:10 AM
    • Signet (SIG): Q1 EPS of $1.29 beats by $0.02.
    • Revenue of $1.06B (+6.7% Y/Y) misses by $10M.
    • Press Release
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  • May. 16, 2014, 1:07 PM
    • The efforts of Signet (SIG +0.1%) to acquire Zale (ZLC +0.8%) could be done in by deal adviser Bank of America Merrill Lynch's failure to disclose a conflict of interest.
    • BAML delivered a presentation to Signet last October in which it recommended to the company it make an offer to buy Zale for $17 to $21 per share. The investment bank then turned around to rep Zale in the merger talks while disclosing only "limited" prior relationships with Signet, according to The New York Times.
    • The apparent foul-up gives TIG Advisors even more ammunition to convince other Zale shareholders to oppose the merger.
    | 1 Comment
  • May. 9, 2014, 5:54 PM
    • Zale (ZLC) investor TIG Advisors urges shareholders to join it at a special May 29 meeting of shareholders in opposing a $1.4B takeover by Signet Jewelers (SIG), arguing that the $21/share offer is "grossly unfair."
    • Instead of the price the two diamond sellers agreed upon, TIG says it should be able to get $28.60/share in cash and stock, according to an SEC filing from the 9.5% owner of ZLC shares.
    • ZLC rose 3.2% today, rising sharply toward the end of the session after TIG filed its position; SIG closed 1% lower.
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  • Mar. 27, 2014, 8:27 AM
    • Shares of Signet (SIG) trade higher in early action after the company turns out a better quarter than anticipated.
    • Both the Kay and Jared brand showed solid sales growth.
    • The impact on Signet's margins from increased promotional activity wasn't nearly as severe as what many retail peers saw during the same period. Gross margin fell 60 bps to 42.1%, largely due to higher input costs.
    • A dividend hike from the company to $0.18/share a quarter is also adding to the Signet luster today.
    • SIG +3.7% premarket
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  • Mar. 27, 2014, 7:06 AM
    • Signet Jewelers (SIG) reports same-store sales increased 4.3% in FQ4. The Kay brand paced the gains with a 4.9% gain.
    • E-commerce sales were up 23.6% to $79M during the period.
    • Operating margin fell 60 bps to 17.7% for the U.S. division.
    • The company expects Q1 same-store sales growth of 3% to 4%.
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  • Mar. 27, 2014, 6:33 AM
    • Signet Jewelers (SIG): Q4 EPS of $2.18 beats by $0.03.
    • Revenue of $1.56B (+3.3% Y/Y) beats by $10M.
    • Press Release
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  • Mar. 27, 2014, 12:05 AM
  • Mar. 26, 2014, 5:30 PM
  • Feb. 19, 2014, 3:17 PM
    • The merger between Signet (SIG +18.5%) and Zale (ZLC +40.2%) gives the combined company extra clout when sourcing its products, according to Citigroup.
    • The investment firm also likes the ability of brands to be cross-sold in new channels and for the jewelry sellers to strike synergies in key areas.
    • A rationale reduction of Zale's store count will create even more upside.
    • The clash of cultures shouldn't be too great with execs swapping back and forth between Zale and Signet over the years. Zale’s non-executive chairman, Terry Burman, is former Signet CEO.
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  • Feb. 19, 2014, 12:45 PM
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  • Feb. 19, 2014, 9:13 AM
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  • Feb. 19, 2014, 7:37 AM
    • Signet (SIG) confirms its acquisition of Zale (ZLC) in a transaction valued at close to $1.4B. Large Zale stakeholder Golden Gate Capital is on board with the deal.
    • The company expects to finance the transaction through bank debt and a securitization of its accounts receivable portfolio.
    • The merger is expected to be accretive in the first year at a high single-digit percentage.
    • What to watch: Zale's international business and strong online business strengthen a couple of areas Signet had room to improve. The combined company will also yield some improved pricing power.
    • Premarket action: ZLC +40.8% to $20.99 and SIG +11.0% to $88.
    | 1 Comment
  • Feb. 19, 2014, 7:24 AM
    • Signet (SIG) has agreed to acquire Zale (ZLC) for $21 per share, according to a report from the Financial Times.
    • ZLC +18.3% premarket to $17.64.
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Company Description
Signet Jewelers Ltd is a specialty jewelry retailer. It is engaged in retailing of jewelry, watches and associated services in United Kingdom and United States.
Sector: Services
Industry: Jewelry Stores
Country: United States