Signet Jewelers said Tuesday that it will acquire online jewelry retailer Blue Nile for $360 million in an all-cash deal in a bid to appeal to younger consumers.
Signet cut its financial forecast for the second quarter and full year due to macroeconomic pressures.
The company saw softer sales in July as shoppers reined in their spending due to high inflation.
Second-quarter revenue is expected to be about $1.75 billion and non- GAAP operating income is expected to be $192 million, according to the parent company.
The company now expects sales to be between $7.60 billion and $7.70 billion, down from a previous range of $8.03 billion to $8.25 billion
The previous guidance was between $921 million and $974 million.
The revised figures don't take into account the worsening of macroeconomic factors that could hurt consumer spending and the pending acquisition of Blue Nile.
The deal is expected to close in the third quarter. The deal won't be beneficial to the business until the fourth quarter of fiscal 2024.
The company was able to fund an acquisition of Blue Nile even in a down market because of its strong balance sheet.
Blue Nile and Mudrick agreed to combine in order to allow the brand to go public. At the time of the merger, the business had a value of $873 million.
CNBC asked Blue Nile and Mudrick why the deal fell through.
Signet shares were up 2% before the market opened. The stock is down 22% so far this year.
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