Revenue recognition

9 Months Ended

Oct. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue recognition

Revenue recognition

The following tables provide the Company’s revenue, disaggregated by banner, major product and channel, for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020:

	13 weeks ended October 30, 2021								13 weeks ended October 31, 2020
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by banner:
Kay	$	573.4	$	—	$	—	$	573.4	$	490.5	$	—	$	—	$	490.5
Zales	291.9		—		—		291.9		251.4		—		—		251.4
Jared	277.1		—		—		277.1		232.7		—		—		232.7
Piercing Pagoda	111.4		—		—		111.4		93.7		—		—		93.7
James Allen	90.4		—		—		90.4		76.6		—		—		76.6
Peoples	45.9		—		—		45.9		37.8		—		—		37.8
International segment banners	—		120.9		—		120.9				106.9		—		106.9
Other (1)	4.1		—		22.7		26.8		—		—		10.7		10.7
Total sales	$	1,394.2	$	120.9	$	22.7	$	1,537.8	$	1,182.7	$	106.9	$	10.7	$	1,300.3
	39 weeks ended October 30, 2021								39 weeks ended October 31, 2020
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by banner:
Kay	$	1,923.8	$	—	$	—	$	1,923.8	$	1,149.0	$	—	$	—	$	1,149.0
Zales	1,030.0		—		—		1,030.0		618.8		—		—		618.8
Jared	873.1		—		—		873.1		546.6		—		—		546.6
Piercing Pagoda	399.0		—		—		399.0		204.4		—		—		204.4
James Allen	300.7		—		—		300.7		184.7		—		—		184.7
Peoples	121.9		—		—		121.9		83.3		—		—		83.3
International segment banners	—		309.0		—		309.0		—		232.8		—		232.8
Other (1)	9.4		—		47.8		57.2				—		20.8		20.8
Total sales	$	4,657.9	$	309.0	$	47.8	$	5,014.7	$	2,786.8	$	232.8	$	20.8	$	3,040.4

(1) Includes sales from Signet’s diamond sourcing initiative and Rocksbox.

	13 weeks ended October 30, 2021								13 weeks ended October 31, 2020
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by product:
Bridal	$	640.9	$	57.3	$	—	$	698.2	$	564.5	$	48.0	$	—	$	612.5
Fashion	524.6		23.3		—		547.9		400.7		19.5		—		420.2
Watches	48.7		44.0		—		92.7		33.6		33.4		—		67.0
Other (1)	180.0		(3.7)		22.7		199.0		183.9		6.0		10.7		200.6
Total sales	$	1,394.2	$	120.9	$	22.7	$	1,537.8	$	1,182.7	$	106.9	$	10.7	$	1,300.3
	39 weeks ended October 30, 2021								39 weeks ended October 31, 2020
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by product:
Bridal	$	2,064.5	$	146.8	$	—	$	2,211.3	$	1,295.7	$	104.9	$	—	$	1,400.6
Fashion	1,866.7		53.7		—		1,920.4		993.1		44.8		—		1,037.9
Watches	154.2		102.2		—		256.4		81.9		73.3		—		155.2
Other (1)	572.5		6.3		47.8		626.6		416.1		9.8		20.8		446.7
Total sales	$	4,657.9	$	309.0	$	47.8	$	5,014.7	$	2,786.8	$	232.8	$	20.8	$	3,040.4

(1)     Other product sales primarily includes gift, beads and other miscellaneous jewelry sales, repairs, subscriptions, service plan and other miscellaneous non-jewelry sales.

	13 weeks ended October 30, 2021								13 weeks ended October 31, 2020
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by channel:
Store	$	1,142.6	$	99.4	$	—	$	1,242.0	$	963.7	$	87.1	$	—	$	1,050.8
E-commerce	251.6		21.5		—		273.1		219.0		19.8		—		238.8
Other	—		—		22.7		22.7		—		—		10.7		10.7
Total sales	$	1,394.2	$	120.9	$	22.7	$	1,537.8	$	1,182.7	$	106.9	$	10.7	$	1,300.3
	39 weeks ended October 30, 2021								39 weeks ended October 31, 2020
(in millions)	North America		International		Other		Consolidated		North America		International		Other		Consolidated
Sales by channel:
Store	$	3,775.5	$	235.8	$	—	$	4,011.3	$	2,170.2	$	175.8	$	—	$	2,346.0
E-commerce	882.4		73.2		—		955.6		616.6		57.0		—		673.6
Other	—		—		47.8		47.8		—		—		20.8		20.8
Total sales	$	4,657.9	$	309.0	$	47.8	$	5,014.7	$	2,786.8	$	232.8	$	20.8	$	3,040.4

Extended service plans and lifetime warranty agreements (“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 30, 2021, January 30, 2021 and October 31, 2020 were as follows:

(in millions)	October 30, 2021		January 30, 2021		October 31, 2020
Other current assets	$	25.2	$	26.2	$	24.0
Other assets	87.2		85.1		81.7
Total deferred selling costs	$	112.4	$	111.3	$	105.7

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 $12.4 million and $29.4 million during the 13 and 39 weeks ended October 30, 2021, respectively, and $8.5 million and $16.0 million during the 13 and 39 weeks ended October 31, 2020, respectively.

Deferred revenue

Deferred revenue consists of the following:

(in millions)	October 30, 2021		January 30, 2021		October 31, 2020
ESP deferred revenue	$	1,066.3	$	1,028.9	$	983.2
Other deferred revenue (1)	53.9		43.1		39.6
Total deferred revenue	$	1,120.2	$	1,072.0	$	1,022.8
Disclosed as:
Current liabilities	$	307.0	$	288.7	$	258.5
Non-current liabilities	813.2		783.3		764.3
Total deferred revenue	$	1,120.2	$	1,072.0	$	1,022.8

(1) Other deferred revenue includes primarily 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 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020
ESP deferred revenue, beginning of period	$	1,063.8	$	990.5	$	1,028.9	$	960.0
Plans sold (1)	103.2		83.8		345.9		193.2
Revenue recognized (2)	(100.7)		(91.1)		(308.5)		(170.0)
ESP deferred revenue, end of period	$	1,066.3	$	983.2	$	1,066.3	$	983.2

(1)    Includes impact of foreign exchange translation.

(2)    The Company recognized sales of $56.4 million and $192.8 million during the 13 and 39 weeks ended October 30, 2021, respectively, and $61.6 million and $115.8 million during the 13 and 39 weeks ended October 31, 2020, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP. In Fiscal 2021, no ESP revenue was recognized beginning on March 23, 2020 due to the temporary closure of the Company’s stores and service centers as a result of COVID-19. As the Company began reopening stores and service centers during the second quarter of Fiscal 2021, the Company resumed recognizing service revenue as it fulfilled its performance obligations under the ESP.