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Zales owner Signet buys online jewelry brand Blue Nile

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A pedestrian walks past a Zales store in Latest York.

Scott Eells | Bloomberg | Getty Images

Signet Jewelers said Tuesday that it is going to acquire online jewelry retailer Blue Nile for $360 million in an all-cash deal, in a bid to appeal to younger consumers and grow its bridal business.

Individually, Signet cut its financial forecast for the second quarter and full 12 months fiscal 2023, given “heightened pressure on consumers’ discretionary spending” and other macroeconomic headwinds.

The parent company of Zales, Jared and Kay Jewelers said it sees second-quarter revenue of about $1.75 billion and non-GAAP operating income totaling roughly $192 million.

The corporate now expects fiscal 2023 sales to be between $7.60 billion and $7.70 billion, down from a previous range of $8.03 billion to $8.25 billion.

It pegs non-GAAP operating income in a variety of $787 million to $828 million, down from prior guidance of between $921 million and $974 million.

Signet said the revised figures don’t keep in mind further material worsening of macroeconomic aspects that would hurt consumer spending, nor its pending acquisition of Blue Nile.

Signet said the deal, which will probably be funded with money readily available, is predicted to shut within the third quarter.

Signet shares rose around 2% in premarket trading.

This story is developing. Please check back for updates.

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