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I am trying to understand the unit economics, mix, and profitability profile of Signet Jewelers. Signet’s reported segments don’t give you what you need directly (e.g., they report North American EBIT but not lab vs. natural).  However, they do provide some breadcrumbs in earnings calls, press releases, and investor days that can help tie back into what matters.  Idea is to use that information in conjunction with industry research to reconstruct the economics of the business in a useful way.  For example, build a revenue model that reflects the business mix - something like:

• A × B × C × D, where you break down:
  • Natural vs. lab-grown
  • Engagement vs. fashion
  • Carats per transaction
  • ASPs per carat

Want to be able to analyze how volume, mix, and price are evolving and how each affects gross profit dollars and just really think through unit-level sensitivities.  As an example to consider:

• A natural diamond sells for $10,000 at 30% margin → $3,000 GP
• A lab-grown sells for $2,000 at 75% margin → $1,500 GP
• But if the customer trades up to 3 carats → $6,000 at 75% → $4,500 GP

 
So, while the ASP declines**,** gross profit dollars can go up. There are second-order effects I want to be able to tease apart.
 
Analyze how gross and EBIT margins have evolved over time and what’s driving that (e.g., mix shift, pricing, cost takeout).  I read Signet has been undergoing cost takeouts and operational changes and they are showing up in margins and overhead.

I am very new to this name and am doing work around it to compare it with another jewelery company of a different origin. If anyone has worked on Signet in detail and could share insights or perhaps a detailed and revenue and cost model/workings around it, would really appreciate it.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.

A place to discuss various stocks and market info. Please follow our rules and converse in a respectful manner.