2. Signet Jewelers Limited (NYSE:SIG)
Average Price Target Upside as of August 5: 56.17%
Number of Hedge Fund Holders: 33
One of the top luxury stocks according to analysts, Signet Jewelers Limited (NYSE:SIG) has a market cap of $3.29 billion and is one of the world’s largest specialty retailers of diamond jewelry. The company runs around 3,600 retail stores under several renowned brands such as Kay Jewelers, Zales, Jared, and others while its luxury brands are H. Samuel, and Ernest Jones.
Signet Jewelers (NYSE:SIG) operates through three segments, North America, International, and Other. Beyond jewelry retailing, the company provides a range of services, including lifetime warranties on purchases, customization options, personalized credit solutions, and other offerings.
Signet Jewelers (NYSE:SIG) saw substantial benefits from its membership program in the first fiscal quarter of 2025, especially in its fashion segment, where loyalty’s impact is clear. By focusing on enhancing customer loyalty, the company achieved a notable 20-point increase in active members purchasing fashion items compared to last year.
The strategy not only retained existing members but also attracted new ones, including engagement ring recipients. It resulted in an over 25% increase in total membership since the end of the fiscal year 2024.
Signet Jewelers’s (NYSE:SIG) management banks on its strategy of targeted marketing that delivers personalized value based on each member’s unique preferences and shopping habits. The approach boosts customer satisfaction and supports the company’s broader goal of expanding merchandise margins.
The loyalty program was launched a few years ago and the company has rapidly grown it, as seen by a significant 25% rise in new users in Q1 alone. Additionally, active members making purchases increased by 50%, which shows the program’s effectiveness in driving engagement and sales.
In Signet Jewelers’s (NYSE:SIG) Q1 2025 earnings call, Gina Drosos, Chief Executive Officer of the company, mentioned that the company uses its consumer data platform, personalized marketing content, and messaging to precisely target customers with tailored content and messages.
This strategy enhances product visibility and appeals to individual preferences. By strengthening customer relationships and optimizing sales opportunities, the company aims to utilize its membership program as a fundamental driver of future growth. Signet Jewelers (NYSE:SIG) is well-positioned to further its position in the competitive retail jewelry market due to the company’s continued efforts of refined personalized marketing initiatives and expansion of its loyal customer base.
As per the consensus opinions of the 8 analysts that have covered Signet Jewelers (NYSE:SIG), the stock is a Moderate Buy. The average price target of $119.00 implies an upside of 56.17% to the present levels, as of August 5.
Moreover, in Q1, 33 hedge funds had investments in the stock, with positions worth $988.413 million. Select Equity Group is the top investor in the company with a stake worth $676.05 million, as of March 31.
