Revenue Recognition

3 Months Ended

Apr. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue recognition

The following table provides the Company’s total sales, disaggregated by banner, for the 13 weeks ended April 30, 2022 and May 1, 2021:

	13 weeks ended April 30, 2022								13 weeks ended May 1, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by banner:
Kay	$	667.3	$	—	$	—	$	667.3	$	676.8	$	—	$	—	$	676.8
Zales	347.7		—		—		347.7		370.8		—		—		370.8
Jared	314.1		—		—		314.1		284.1		—		—		284.1
Banter by Piercing Pagoda	119.0		—		—		119.0		148.8		—		—		148.8
Diamonds Direct	106.3		—		—		106.3		—		—		—		—
James Allen	93.3		—		—		93.3		101.5		—		—		101.5
Peoples	45.4		—		—		45.4		34.6		—		—		34.6
International segment banners	—		110.0		—		110.0		—		57.4		—		57.4
Other (1)	11.9		—		23.3		35.2		1.4		—		13.4		14.8
Total sales	$	1,705.0	$	110.0	$	23.3	$	1,838.3	$	1,618.0	$	57.4	$	13.4	$	1,688.8

(1) Other includes primarily sales from Signet’s diamond sourcing initiative and Rocksbox.

The following table provides the Company’s total sales, disaggregated by major product, for the 13 weeks ended April 30, 2022 and May 1, 2021:

	13 weeks ended April 30, 2022								13 weeks ended May 1, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by product:
Bridal	$	787.3	$	50.1	$	—	$	837.4	$	726.7	$	28.8	$	—	$	755.5
Fashion	658.2		17.7		—		675.9		661.4		9.7		—		671.1
Watches	51.5		35.2		—		86.7		46.9		17.2		—		64.1
Services (1)	166.0		7.0		—		173.0		145.9		1.7		—		147.6
Other (2)	42.0		—		23.3		65.3		37.1		—		13.4		50.5
Total sales	$	1,705.0	$	110.0	$	23.3	$	1,838.3	$	1,618.0	$	57.4	$	13.4	$	1,688.8

(1)     Services primarily includes sales from service plans, repairs and subscriptions.

(2)     Other primarily includes sales from Signet’s diamond sourcing initiative and other miscellaneous non-jewelry sales.

The following table provides the Company’s total sales, disaggregated by channel, for the 13 weeks ended April 30, 2022 and May 1, 2021:

	13 weeks ended April 30, 2022								13 weeks ended May 1, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by channel:
Store	$	1,396.5	$	89.9	$	—	$	1,486.4	$	1,299.6	$	29.5	$	—	$	1,329.1
E-commerce	300.4		20.1		—		320.5		318.4		27.9		—		346.3
Other (1)	8.1		—		23.3		31.4		—		—		13.4		13.4
Total sales	$	1,705.0	$	110.0	$	23.3	$	1,838.3	$	1,618.0	$	57.4	$	13.4	$	1,688.8

(1) Other primarily includes sales from Signet’s diamond sourcing initiative.

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 estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans 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 selling costs

Unamortized deferred selling costs as of April 30, 2022, January 29, 2022 and May 1, 2021 were as follows:

(in millions)	April 30, 2022		January 29, 2022		May 1, 2021
Other current assets	$	27.9	$	28.4	$	26.4
Other assets	87.3		87.8		86.1
Total deferred selling costs	$	115.2	$	116.2	$	112.5

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 was $10.8 million during the 13 weeks ended April 30, 2022 and $9.9 million during the 13 weeks ended May 1, 2021.

Deferred revenue

Deferred revenue as of April 30, 2022, January 29, 2022 and May 1, 2021 was as follows:

(in millions)	April 30, 2022		January 29, 2022		May 1, 2021
ESP deferred revenue	$	1,125.9	$	1,116.5	$	1,049.4
Other deferred revenue (1)	78.1		82.4		58.3
Total deferred revenue	$	1,204.0	$	1,198.9	$	1,107.7
Disclosed as:
Current liabilities	$	336.9	$	341.3	$	310.0
Non-current liabilities	867.1		857.6		797.7
Total deferred revenue	$	1,204.0	$	1,198.9	$	1,107.7

(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
(in millions)	April 30, 2022		May 1, 2021
ESP deferred revenue, beginning of period	$	1,116.5	$	1,028.9
Plans sold (1)	123.8		124.1
Revenue recognized (2)	(114.4)		(103.6)
ESP deferred revenue, end of period	$	1,125.9	$	1,049.4

(1)    Includes impact of foreign exchange translation.

(2)    The Company recognized sales of $79.2 million and $72.6 million during the 13 weeks ended April 30, 2022 and May 1, 2021, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP.