Segment information

3 Months Ended

Apr. 29, 2023

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 aggregates operating segments with similar economic and operating characteristics. 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, as well as online, principally as Kay (Kay Jewelers and Kay Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), Diamonds Direct, Banter by Piercing Pagoda, Rocksbox, and digital banners, James Allen and Blue Nile. Its Canadian stores operate as Peoples Jewellers.

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

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

	13 weeks ended
(in millions)	April 29, 2023		April 30, 2022
Sales:
North America segment	$	1,561.2	$	1,705.0
International segment	93.0		110.0
Other segment	13.8		23.3
Total sales	$	1,668.0	$	1,838.3
Operating income (loss):
North America segment (1)	$	124.7	$	24.8
International segment	(6.9)		(6.4)
Other segment	(0.7)		3.0
Corporate and unallocated expenses	(15.4)		(21.2)
Total operating income	101.7		0.2
Interest income (expense), net	5.6		(4.4)
Other non-operating expense, net	(0.4)		(134.5)
Income (loss) before income taxes	$	106.9	$	(138.7)

(1)    Operating income during the 13 weeks ended April 29, 2023 includes $7.8 million of integration costs, primarily severance and retention, and exit and disposal costs incurred for the integration of Blue Nile and a $3.0 million credit to income related to the adjustment of a prior litigation accrual.

Operating income during the 13 weeks ended April 30, 2022 includes $4.4 million of cost of sales associated with the fair value step-up of inventory acquired in the Diamonds Direct acquisition and $190.0 million related to pre-tax litigation charges.

See Note 20 for additional information.