Revenue recognition | Revenue recognition The following table provides the Company’s total sales, disaggregated by banner, for the 13 and 39 weeks ended October 28, 2023 and October 29, 2022: 13 weeks ended October 28, 2023 13 weeks ended October 29, 2022 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by banner: Kay $ 489.9 $ — $ — $ 489.9 $ 535.6 $ — $ — $ 535.6 Zales 224.1 — — 224.1 263.2 — — 263.2 Jared 237.4 — — 237.4 267.7 — — 267.7 Digital banners (1) (2) 134.9 — — 134.9 156.6 156.6 Diamonds Direct 93.3 — — 93.3 106.4 — — 106.4 Banter by Piercing Pagoda 69.4 — — 69.4 82.9 — — 82.9 Peoples 36.2 — — 36.2 40.0 — — 40.0 International segment banners — 94.0 — 94.0 — 95.3 — 95.3 Other (3) 5.9 — 6.8 12.7 12.4 — 22.6 35.0 Total sales $ 1,291.1 $ 94.0 $ 6.8 $ 1,391.9 $ 1,464.8 $ 95.3 $ 22.6 $ 1,582.7 39 weeks ended October 28, 2023 39 weeks ended October 29, 2022 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by banner: Kay $ 1,659.2 $ — $ — $ 1,659.2 $ 1,820.4 $ — $ — $ 1,820.4 Zales 798.9 — — 798.9 929.0 — — 929.0 Jared 776.6 — — 776.6 885.3 — — 885.3 Digital banners (1) (2) 467.3 467.3 338.5 338.5 Diamonds Direct 274.6 — — 274.6 325.7 — — 325.7 Banter by Piercing Pagoda 234.2 — — 234.2 302.1 — — 302.1 Peoples 117.9 — — 117.9 133.2 — — 133.2 International segment banners — 289.0 — 289.0 — 316.9 — 316.9 Other (3) 24.7 — 31.1 55.8 52.0 — 72.8 124.8 Total sales $ 4,353.4 $ 289.0 $ 31.1 $ 4,673.5 $ 4,786.2 $ 316.9 $ 72.8 $ 5,175.9 (1) Includes sales from the Company’s digital banners, James Allen and Blue Nile. (2) Includes Blue Nile sales since the date of acquisition on August 19, 2022. See Note 4 for further details. (3) Other primarily includes sales from Signet’s diamond sourcing operation, loose diamonds and Rocksbox. The following table provides the Company’s total sales, disaggregated by major product, for the 13 and 39 weeks ended October 28, 2023 and October 29, 2022: 13 weeks ended October 28, 2023 13 weeks ended October 29, 2022 (in millions) North America International Other Consolidated North America (3) International Other Consolidated Sales by product: Bridal $ 625.9 $ 38.7 $ — $ 664.6 $ 740.8 $ 39.9 $ — $ 780.7 Fashion 431.8 16.4 — 448.2 495.0 16.4 — 511.4 Watches 39.5 32.5 — 72.0 45.1 33.0 — 78.1 Services (1) 163.5 6.4 — 169.9 155.3 6.0 — 161.3 Other (2) 30.4 — 6.8 37.2 28.6 — 22.6 51.2 Total sales $ 1,291.1 $ 94.0 $ 6.8 $ 1,391.9 $ 1,464.8 $ 95.3 $ 22.6 $ 1,582.7 39 weeks ended October 28, 2023 39 weeks ended October 29, 2022 (in millions) North America International Other Consolidated North America (3) International Other Consolidated Sales by product: Bridal $ 2,044.6 $ 124.2 $ — $ 2,168.8 $ 2,283.9 $ 139.2 $ — $ 2,423.1 Fashion 1,555.5 49.4 — 1,604.9 1,758.5 52.0 — 1,810.5 Watches 132.7 96.1 — 228.8 150.0 106.1 — 256.1 Services (1) 509.9 19.3 — 529.2 484.8 19.6 — 504.4 Other (2) 110.7 — 31.1 141.8 109.0 — 72.8 181.8 Total sales $ 4,353.4 $ 289.0 $ 31.1 $ 4,673.5 $ 4,786.2 $ 316.9 $ 72.8 $ 5,175.9 (1) Services primarily includes sales from service plans, repairs and subscriptions. (2) Other primarily includes sales from Signet’s diamond sourcing operation and other miscellaneous non-jewelry sales. (3) Certain amounts have been reclassified between the bridal, fashion, and other categories to conform to the Company’s current product categorizations. The following table provides the Company’s total sales, disaggregated by channel, for the 13 and 39 weeks ended October 28, 2023 and October 29, 2022: 13 weeks ended October 28, 2023 13 weeks ended October 29, 2022 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by channel: Store $ 1,003.6 $ 77.8 $ — $ 1,081.4 $ 1,140.6 $ 79.8 $ — $ 1,220.4 E-commerce 284.7 16.2 — 300.9 315.6 15.5 — 331.1 Other (1) 2.8 — 6.8 9.6 8.6 — 22.6 31.2 Total sales $ 1,291.1 $ 94.0 $ 6.8 $ 1,391.9 $ 1,464.8 $ 95.3 $ 22.6 $ 1,582.7 39 weeks ended October 28, 2023 39 weeks ended October 29, 2022 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by channel: Store $ 3,341.7 $ 239.4 $ — $ 3,581.1 $ 3,851.7 $ 261.6 $ — $ 4,113.3 E-commerce 997.4 49.6 — 1,047.0 894.1 55.3 — 949.4 Other (1) 14.3 — 31.1 45.4 40.4 — 72.8 113.2 Total sales $ 4,353.4 $ 289.0 $ 31.1 $ 4,673.5 $ 4,786.2 $ 316.9 $ 72.8 $ 5,175.9 (1) Other primarily includes sales from Signet’s diamond sourcing operation and loose diamonds. Extended service plans (“ESP”) The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral periods for ESP sales are determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in either the overall claims pattern or the life over which the Company is expected to fulfill its obligations under the warranty could result in a material change to revenues. All direct costs associated with the sale of ESP are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the condensed consolidated balance sheets. These direct costs primarily include sales commissions and credit card fees. Deferred ESP selling costs Unamortized deferred ESP selling costs as of October 28, 2023, January 28, 2023 and October 29, 2022 were as follows: (in millions) October 28, 2023 January 28, 2023 October 29, 2022 Other current assets $ 27.4 $ 29.2 $ 27.7 Other assets 81.3 85.4 85.5 Total deferred ESP selling costs $ 108.7 $ 114.6 $ 113.2 Amortization of deferred ESP selling costs is included within selling, general and administrative expenses in the condensed consolidated statements of operations. Amortization of deferred ESP selling costs w as $10.1 million and $31.8 million d uring the 13 and 39 weeks ended October 28, 2023, respectively, and $9.9 million and $31.0 million during the 13 and 39 weeks ended October 29, 2022, respectively. Deferred revenue Deferred revenue as of October 28, 2023, January 28, 2023 and October 29, 2022 was as follows: (in millions) October 28, 2023 January 28, 2023 October 29, 2022 ESP deferred revenue $ 1,120.2 $ 1,159.5 $ 1,124.9 Other deferred revenue (1) 82.5 90.1 88.5 Total deferred revenue $ 1,202.7 $ 1,249.6 $ 1,213.4 Disclosed as: Current liabilities $ 346.2 $ 369.5 $ 335.3 Non-current liabilities 856.5 880.1 878.1 Total deferred revenue $ 1,202.7 $ 1,249.6 $ 1,213.4 (1) Other deferred revenue primarily includes revenue collected from customers for custom orders and eCommerce orders, for which control has not yet transferred to the customer. 13 weeks ended 39 weeks ended (in millions) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 ESP deferred revenue, beginning of period $ 1,138.9 $ 1,131.5 $ 1,159.5 $ 1,116.5 Plans sold (1) 95.7 101.1 318.8 345.2 Revenue recognized (2) (114.4) (107.7) (358.1) (336.8) ESP deferred revenue, end of period $ 1,120.2 $ 1,124.9 $ 1,120.2 $ 1,124.9 (1) Includes impact of foreign exchange translation. (2) The Company recognized sale s o f $67.7 million and $230.2 million during the 13 and 39 weeks ended October 28, 2023, respectively, and $60.7 million and $208.5 million during the 13 and 39 weeks ended October 29, 2022, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP. |