Revenue Recognition

9 Months Ended

Oct. 29, 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 and 39 weeks ended October 29, 2022 and October 30, 2021:

	13 weeks ended October 29, 2022								13 weeks ended October 30, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by banner:
Kay	$	535.6	$	—	$	—	$	535.6	$	573.4	$	—	$	—	$	573.4
Zales	263.2		—		—		263.2		291.9		—		—		291.9
Jared	267.7		—		—		267.7		277.1		—		—		277.1
Digital banners(1)	156.6		—		—		156.6		90.4						90.4
Diamonds Direct	106.4		—		—		106.4		—		—		—		—
Banter by Piercing Pagoda	82.9		—		—		82.9		111.4		—		—		111.4
Peoples	40.0		—		—		40.0		45.9		—		—		45.9
International segment banners	—		95.3		—		95.3		—		120.9		—		120.9
Other (2)	12.4		—		22.6		35.0		4.1		—		22.7		26.8
Total sales	$	1,464.8	$	95.3	$	22.6	$	1,582.7	$	1,394.2	$	120.9	$	22.7	$	1,537.8
	39 weeks ended October 29, 2022								39 weeks ended October 30, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by banner:
Kay	$	1,820.4	$	—	$	—	$	1,820.4	$	1,923.8	$	—	$	—	$	1,923.8
Zales	929.0		—		—		929.0		1,030.0		—		—		1,030.0
Jared	885.3		—		—		885.3		873.1		—		—		873.1
Digital banners(1)	338.5						338.5		300.7						300.7
Diamonds Direct	325.7		—		—		325.7		—		—		—		—
Banter by Piercing Pagoda	302.1		—		—		302.1		399.0		—		—		399.0
Peoples	133.2		—		—		133.2		121.9		—		—		121.9
International segment banners	—		316.9		—		316.9		—		309.0		—		309.0
Other (2)	52.0		—		72.8		124.8		9.4		—		47.8		57.2
Total sales	$	4,786.2	$	316.9	$	72.8	$	5,175.9	$	4,657.9	$	309.0	$	47.8	$	5,014.7

(1) Includes sales from the Company’s digitally native banners, James Allen and Blue Nile.

(2) Other primarily includes sales from Signet’s diamond sourcing initiative, 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 29, 2022 and October 30, 2021:

	13 weeks ended October 29, 2022								13 weeks ended October 30, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by product:
Bridal	$	729.2	$	39.9	$	—	$	769.1	$	640.9	$	57.3	$	—	$	698.2
Fashion	496.4		16.4		—		512.8		524.6		23.3		—		547.9
Watches	45.0		33.0		—		78.0		48.7		44.0		—		92.7
Services (1)	155.3		6.0		—		161.3		143.8		(3.7)		—		140.1
Other (2)	38.9		—		22.6		61.5		36.2		—		22.7		58.9
Total sales	$	1,464.8	$	95.3	$	22.6	$	1,582.7	$	1,394.2	$	120.9	$	22.7	$	1,537.8
	39 weeks ended October 29, 2022								39 weeks ended October 30, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by product:
Bridal	$	2,247.1	$	139.2	$	—	$	2,386.3	$	2,064.5	$	146.8	$	—	$	2,211.3
Fashion	1,764.2		52.0		—		1,816.2		1,866.7		53.7		—		1,920.4
Watches	150.0		106.1		—		256.1		154.2		102.2		—		256.4
Services (1)	484.8		19.6		—		504.4		440.8		6.3		—		447.1
Other (2)	140.1		—		72.8		212.9		131.7		—		47.8		179.5
Total sales	$	4,786.2	$	316.9	$	72.8	$	5,175.9	$	4,657.9	$	309.0	$	47.8	$	5,014.7

(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 and 39 weeks ended October 29, 2022 and October 30, 2021:

	13 weeks ended October 29, 2022								13 weeks ended October 30, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by channel:
Store	$	1,140.6	$	79.8	$	—	$	1,220.4	$	1,142.6	$	99.4	$	—	$	1,242.0
E-commerce	315.6		15.5		—		331.1		251.6		21.5		—		273.1
Other (1)	8.6		—		22.6		31.2		—		—		22.7		22.7
Total sales	$	1,464.8	$	95.3	$	22.6	$	1,582.7	$	1,394.2	$	120.9	$	22.7	$	1,537.8
	39 weeks ended October 29, 2022								39 weeks ended October 30, 2021
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by channel:
Store	$	3,851.7	$	261.6	$	—	$	4,113.3	$	3,775.5	$	235.8	$	—	$	4,011.3
E-commerce	894.1		55.3		—		949.4		882.4		73.2		—		955.6
Other (1)	40.4		—		72.8		113.2		—		—		47.8		47.8
Total sales	$	4,786.2	$	316.9	$	72.8	$	5,175.9	$	4,657.9	$	309.0	$	47.8	$	5,014.7

(1) Other primarily includes sales from Signet’s diamond sourcing initiative 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 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 October 29, 2022, January 29, 2022 and October 30, 2021 were as follows:

(in millions)	October 29, 2022		January 29, 2022		October 30, 2021
Other current assets	$	27.7	$	28.4	$	25.2
Other assets	85.5		87.8		87.2
Total deferred selling costs	$	113.2	$	116.2	$	112.4

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 $9.9 million and $31.0 million during the 13 and 39 weeks ended October 29, 2022, respectively, and $12.4 million and $29.4 million during the 13 and 39 weeks ended October 30, 2021.

Deferred revenue

Deferred revenue as of October 29, 2022, January 29, 2022 and October 30, 2021 was as follows:

(in millions)	October 29, 2022		January 29, 2022		October 30, 2021
ESP deferred revenue	$	1,124.9	$	1,116.5	$	1,066.3
Other deferred revenue (1)	88.5		82.4		53.9
Total deferred revenue	$	1,213.4	$	1,198.9	$	1,120.2
Disclosed as:
Current liabilities	$	335.3	$	341.3	$	307.0
Non-current liabilities	878.1		857.6		813.2
Total deferred revenue	$	1,213.4	$	1,198.9	$	1,120.2

(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 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
ESP deferred revenue, beginning of period	$	1,131.5	$	1,063.8	$	1,116.5	$	1,028.9
Plans sold (1)	101.1		103.2		345.2		345.9
Revenue recognized (2)	(107.7)		(100.7)		(336.8)		(308.5)
ESP deferred revenue, end of period	$	1,124.9	$	1,066.3	$	1,124.9	$	1,066.3

(1)    Includes impact of foreign exchange translation.

(2)    The Company recognized sales of $60.7 million and $208.5 million during the 13 and 39 weeks ended October 29, 2022, respectively, and $56.4 million and $192.8 million during the 13 and 39 weeks ended October 30, 2021, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP.