XML 23 R11.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Revenue recognition
 3 Months Ended
May 04, 2024
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 May 4, 2024 and April 29, 2023:
13 weeks ended May 4, 202413 weeks ended April 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by banner:
Kay
$567.5 $— $— $567.5 $602.2 $— $— $602.2 
Zales
256.7 — — 256.7 295.4 — — 295.4 
Jared
249.5 — — 249.5 274.0 — — 274.0 
Digital banners (1)
133.7 — — 133.7 168.2 168.2 
Diamonds Direct82.6 — — 82.6 88.2 — — 88.2 
Banter by Piercing Pagoda
83.6 — — 83.6 85.5 — — 85.5 
Peoples
39.2 — — 39.2 38.2 — — 38.2 
International segment banners
— 77.2 — 77.2 — 93.0 — 93.0 
Other (2)
7.2 — 13.6 20.8 9.5 — 13.8 23.3 
Total sales
$1,420.0 $77.2 $13.6 $1,510.8 $1,561.2 $93.0 $13.8 $1,668.0 
(1) Includes sales from the Company’s digital banners, James Allen and Blue Nile.
(2) Other primarily includes sales from the Company’s diamond sourcing operation, loose diamonds and Rocksbox.
The following table provides the Company’s total sales, disaggregated by major product, for the 13 weeks ended May 4, 2024 and April 29, 2023:
13 weeks ended May 4, 202413 weeks ended April 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by product:
Bridal
$639.3 $35.3 $— $674.6 $727.7 $41.0 $— $768.7 
Fashion
536.8 15.2 — 552.0 571.4 15.6 — 587.0 
Watches
42.7 20.8 — 63.5 44.8 30.1 — 74.9 
Services (1)
178.6 5.9 — 184.5 175.8 6.3 — 182.1 
Other (2)
22.6 — 13.6 36.2 41.5 — 13.8 55.3 
Total sales
$1,420.0 $77.2 $13.6 $1,510.8 $1,561.2 $93.0 $13.8 $1,668.0 
(1) Services primarily includes sales from service plans, repairs and subscriptions.
(2) Other primarily includes sales from the Company’s diamond sourcing operation and other miscellaneous non-jewelry sales.
The following table provides the Company’s total sales, disaggregated by channel, for the 13 weeks ended May 4, 2024 and April 29, 2023:
13 weeks ended May 4, 202413 weeks ended April 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by channel:
Store
$1,094.3 $60.8 $— $1,155.1 $1,191.0 $76.8 $— $1,267.8 
eCommerce
321.5 16.4 — 337.9 364.4 16.2 — 380.6 
Other (1)
4.2 — 13.6 17.8 5.8 — 13.8 19.6 
Total sales
$1,420.0 $77.2 $13.6 $1,510.8 $1,561.2 $93.0 $13.8 $1,668.0 
(1) Other primarily includes sales from the Company’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 historical 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 material change to revenues. All direct costs associated with the sale of the 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 May 4, 2024, February 3, 2024 and April 29, 2023 were as follows:
(in millions)May 4, 2024February 3, 2024April 29, 2023
Other current assets$27.8 $28.2 $28.4 
Other assets82.2 83.0 84.1 
Total deferred ESP selling costs$110.0 $111.2 $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 $11.2 million and $10.9 million during the 13 weeks ended May 4, 2024 and April 29, 2023, respectively.
Deferred revenue
Deferred revenue as of May 4, 2024, February 3, 2024 and April 29, 2023 was as follows:
(in millions)May 4, 2024February 3, 2024April 29, 2023
ESP deferred revenue$1,153.7 $1,158.7 $1,149.4 
Other deferred revenue (1)
85.8 86.0 94.2 
Total deferred revenue
$1,239.5 $1,244.7 $1,243.6 
Disclosed as:
Current liabilities$360.6 $362.9 $368.7 
Non-current liabilities878.9 881.8 874.9 
Total deferred revenue$1,239.5 $1,244.7 $1,243.6 
(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)May 4, 2024April 29, 2023
ESP deferred revenue, beginning of period$1,158.7 $1,159.5 
Plans sold (1)
121.9 113.4 
Revenue recognized (2)
(126.9)(123.5)
ESP deferred revenue, end of period$1,153.7 $1,149.4 
(1) Includes impact of foreign exchange translation.
(2) The Company recognized sales of $85.2 million and $86.7 million during the 13 weeks ended May 4, 2024 and April 29, 2023, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP.