Segment information

6 Months Ended

Jul. 31, 2021

Segment Reporting [Abstract]

Segment information

Segment information

Financial information for each of Signet’s reportable segments is presented in the tables below. Signet’s chief operating decision maker utilizes segment sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet manages its business as three reportable segments: North America, International, and Other. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its reportable segments. The Company allocates certain support center costs between operating segments, and the remainder of the unallocated costs are included with the corporate and unallocated expenses presented.

The North America reportable segment operates across the US and Canada. Its US stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Jewelers Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), James Allen, Rocksbox and Piercing Pagoda, which operates primarily through mall-based kiosks. Its Canadian stores operate as the Peoples Jewellers store banner.

The International reportable segment operates stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.

The Other reportable segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones.

	13 weeks ended				26 weeks ended
(in millions)	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Sales:
North America segment	$	1,645.7	$	823.0	$	3,263.7	$	1,604.1
International segment	130.7		61.0		188.1		125.9
Other segment	11.7		4.0		25.1		10.1
Total sales	$	1,788.1	$	888.0	$	3,476.9	$	1,740.1
Operating income (loss):
North America segment (1)	$	237.3	$	(57.0)	$	449.3	$	(291.2)
International segment (2)	15.5		(15.6)		(4.2)		(54.2)
Other segment	(0.1)		(0.2)		(1.0)		(0.5)
Corporate and unallocated expenses (3)	(27.3)		(16.9)		(50.0)		(43.4)
Total operating income (loss)	225.4		(89.7)		394.1		(389.3)
Interest expense, net	(4.4)		(9.4)		(8.3)		(16.5)
Other non-operating income, net	0.1		0.2		0.2		0.3
Income (loss) before income taxes	$	221.1	$	(98.9)	$	386.0	$	(405.5)

(1)    Operating income (loss) during the 13 and 26 weeks ended July 31, 2021 includes: $0.0 million and $1.1 million, respectively, of acquisition-related expenses in connection with the Rocksbox acquisition; $1.4 million of gains associated with the sale of customer in-house finance receivables; $(0.3) million and $(1.0) million, respectively, to restructuring expense, primarily related to adjustments to previously recognized restructuring liabilities; and $(0.2) million and $1.3 million, respectively, of net asset impairments. See Note 1, Note 5, Note 11, and Note 14 for additional information.

Operating income (loss) during the 13 and 26 weeks ended August 1, 2020 includes: a $0.2 million and $0.6 million benefit, respectively, recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities; charges of $27.7 million and $36.6 million, respectively, primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and asset impairment charges of $17.5 million and $135.4 million, respectively. See Note 5, Note 14, and Note 16 for additional information.

(2)    Operating income (loss) during the 13 and 26 weeks ended August 1, 2020 includes: charges of $1.0 million and $4.6 million, respectively, related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities; and asset impairment charges of $2.8 million and $21.2 million, respectively. See Note 5, Note 14, and Note 16 for additional information.

(3)    Operating income (loss) during the 13 and 26 weeks ended July 31, 2021 includes $(0.6) million restructuring expense, primarily related to adjustments to previously recognized restructuring liabilities. See Note 5 for additional information.

Operating income (loss) during the 13 and 26 weeks ended August 1, 2020 includes: $(1.0) million and $7.5 million, respectively, related to the settlement of previously disclosed shareholder litigation matters, inclusive of expected insurance proceeds; and charges of $0.2 million and $0.4 million, respectively, primarily related to severance and professional services recorded in conjunction with the Company’s restructuring activities. See Note 5 and Note 22 for additional information.