Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 30, 2021 | Nov. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-32349 | |
Entity Registrant Name | SIGNET JEWELERS LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Address, Address Line One | Clarendon House | |
Entity Address, Address Line Two | 2 Church Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM11 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 296 5872 | |
Title of 12(b) Security | Common Shares of $0.18 each | |
Trading Symbol | SIG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,623,317 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000832988 | |
Current Fiscal Year End Date | --01-29 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 1,537.8 | $ 1,300.3 | $ 5,014.7 | $ 3,040.4 |
Cost of sales | (962.2) | (863.8) | (3,043.1) | (2,176) |
Restructuring charges - cost of sales | 0 | (2) | 0 | (1.4) |
Gross margin | 575.6 | 434.5 | 1,971.6 | 863 |
Selling, general and administrative expenses | (470.5) | (389.3) | (1,485.1) | (1,013.6) |
Restructuring charges | 1.7 | (3.6) | 3.3 | (45.2) |
Asset impairments, net | (0.7) | (1.5) | (2) | (158.1) |
Other operating income, net | 0.8 | (0.4) | 13.2 | 4.3 |
Operating income (loss) | 106.9 | 39.7 | 501 | (349.6) |
Interest expense, net | (4.1) | (9.1) | (12.4) | (25.6) |
Other non-operating expense, net | (1.1) | 0 | (0.9) | 0.3 |
Income (loss) before income taxes | 101.7 | 30.6 | 487.7 | (374.9) |
Income taxes | (9.1) | (21.3) | (32.1) | 105.4 |
Net income (loss) | 92.6 | 9.3 | 455.6 | (269.5) |
Dividends on redeemable convertible preferred shares | (8.7) | (8.4) | (25.9) | (24.9) |
Net income (loss) attributable to common shareholders | $ 83.9 | $ 0.9 | $ 429.7 | $ (294.4) |
Earnings (loss) per common share: | ||||
Basic (usd per share) | $ 1.59 | $ 0.02 | $ 8.17 | $ (5.67) |
Diluted (usd per share) | $ 1.45 | $ 0.02 | $ 7.27 | $ (5.67) |
Weighted average common shares outstanding: | ||||
Basic (shares) | 52.9 | 52.1 | 52.6 | 51.9 |
Diluted (shares) | 63.7 | 53.4 | 62.7 | 51.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Pre-tax amount | ||||
Foreign currency translation adjustments | $ (4.3) | $ (2.8) | $ 3.1 | $ (11.1) |
Available-for-sale securities: | ||||
Unrealized gain (loss) | (0.1) | (0.1) | (0.2) | 0.3 |
Cash flow hedges: | ||||
Unrealized gain (loss) | 0.4 | 0 | 0.2 | 0.2 |
Reclassification adjustment for losses (gains) to earnings | 0.1 | (1.8) | 0.6 | (13.4) |
Pension plan: | ||||
Actuarial loss | (72.9) | 0 | (72.9) | 0 |
Reclassification adjustment for amortization of actuarial losses to earnings | 1 | 0.1 | 1.4 | 0.2 |
Reclassification adjustment for amortization of net prior service costs to earnings | 0 | 0.4 | 0.1 | 0.7 |
Total other comprehensive income (loss) | (75.8) | (4.2) | (67.7) | (23.1) |
Tax (expense) benefit | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Available-for-sale securities: | ||||
Unrealized gain (loss) | 0 | 0 | 0 | 0 |
Cash flow hedges: | ||||
Unrealized gain (loss) | 0 | 0 | 0 | 0 |
Reclassification adjustment for losses (gains) to earnings | 0 | (0.1) | (0.1) | 2.6 |
Pension plan: | ||||
Actuarial loss | 14 | 0 | 14 | 0 |
Reclassification adjustment for amortization of actuarial losses to earnings | (0.2) | 0 | (0.3) | 0 |
Reclassification adjustment for amortization of net prior service costs to earnings | 0 | (0.1) | 0 | (0.1) |
Total other comprehensive income (loss) | 13.8 | (0.2) | 13.6 | 2.5 |
After-tax amount | ||||
Net income (loss) | 92.6 | 9.3 | 455.6 | (269.5) |
Foreign currency translation adjustments | (4.3) | (2.8) | 3.1 | (11.1) |
Available-for-sale securities: | ||||
Unrealized gain (loss) | (0.1) | (0.1) | (0.2) | 0.3 |
Cash flow hedges: | ||||
Unrealized gain (loss) | 0.4 | 0 | 0.2 | 0.2 |
Reclassification adjustment for losses (gains) to earnings | 0.1 | (1.9) | 0.5 | (10.8) |
Pension plan: | ||||
Actuarial loss | (58.9) | 0 | (58.9) | 0 |
Reclassification adjustment for amortization of actuarial losses to earnings | 0.8 | 0.1 | 1.1 | 0.2 |
Reclassification adjustment for amortization of net prior service costs to earnings | 0 | 0.3 | 0.1 | 0.6 |
Total other comprehensive income (loss) | (62) | (4.4) | (54.1) | (20.6) |
Total comprehensive income (loss) | $ 30.6 | $ 4.9 | $ 401.5 | $ (290.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 1,516.9 | $ 1,172.5 | $ 1,332.6 |
Accounts receivable, net | 19.3 | 88.7 | 58.3 |
Other current assets | 194.9 | 236.6 | 228.6 |
Income taxes | 115.4 | 51.7 | 111.1 |
Inventories | 2,148.3 | 2,032.5 | 2,174 |
Total current assets | 3,994.8 | 3,582 | 3,904.6 |
Non-current assets: | |||
Property, plant and equipment, net of accumulated depreciation and amortization of $1,275.1, $1,198.1 and $1,167.7, respectively | 513.2 | 605.5 | 612.6 |
Operating lease right-of-use assets | 1,195.3 | 1,362.2 | 1,395.4 |
Goodwill | 245 | 238 | 238 |
Intangible assets, net | 189.2 | 179 | 178.8 |
Other assets | 215 | 195.8 | 189.5 |
Deferred tax assets | 35 | 16.4 | 13.6 |
Total assets | 6,387.5 | 6,178.9 | 6,532.5 |
Current liabilities: | |||
Loans and overdrafts | 0.3 | 0 | 3.6 |
Accounts payable | 868.2 | 812.6 | 558.4 |
Accrued expenses and other current liabilities | 469.2 | 494.1 | 500 |
Deferred revenue | 307 | 288.7 | 258.5 |
Operating lease liabilities | 304.4 | 377.3 | 379 |
Income taxes | 22.7 | 26 | 32 |
Total current liabilities | 1,971.8 | 1,998.7 | 1,731.5 |
Non-current liabilities: | |||
Long-term debt | 147 | 146.7 | 1,036.2 |
Operating lease liabilities | 994 | 1,147.3 | 1,190.3 |
Other liabilities | 129.1 | 111.1 | 97.3 |
Deferred revenue | 813.2 | 783.3 | 764.3 |
Deferred tax liabilities | 146.1 | 159.2 | 163.1 |
Total liabilities | 4,201.2 | 4,346.3 | 4,982.7 |
Commitments and contingencies | |||
Series A redeemable convertible preferred shares of $.01 par value: authorized 500 shares, 0.625 shares outstanding (January 30, 2021 and October 31, 2020: 0.625 shares outstanding) | 651.7 | 642.3 | 633.9 |
Shareholders’ equity: | |||
Common shares of $.18 par value: authorized 500 shares, 52.6 shares outstanding (January 30, 2021 and October 31, 2020: 52.3 outstanding) | 12.6 | 12.6 | 12.6 |
Additional paid-in capital | 271.8 | 258.8 | 254.1 |
Other reserves | 0.4 | 0.4 | 0.4 |
Treasury shares at cost: 17.4 shares (January 30, 2021 and October 31, 2020: 17.7 shares) | (986.3) | (980.2) | (980.4) |
Retained earnings | 2,580.7 | 2,189.2 | 1,943.6 |
Accumulated other comprehensive loss | (344.6) | (290.5) | (314.4) |
Total shareholders’ equity | 1,534.6 | 1,190.3 | 915.9 |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ 6,387.5 | $ 6,178.9 | $ 6,532.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Accumulated depreciation | $ 1,275.1 | $ 1,198.1 | $ 1,167.7 |
Common shares, par value (usd per share) | $ 0.18 | $ 0.18 | $ 0.18 |
Common shares, authorized (shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common shares, outstanding (shares) | 52,600,000 | 52,300,000 | 52,300,000 |
Treasury shares, shares (shares) | 17,400,000 | 17,700,000 | 17,700,000 |
Series A Redeemable Convertible Preferred Stock | |||
Preferred shares, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred shares, authorized (shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Preferred shares, outstanding (shares) | 625,000 | 625,000 | 625,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 455.6 | $ (269.5) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 122.9 | 130.3 |
Amortization of unfavorable contracts | (2.9) | (4.1) |
Share-based compensation | 36.4 | 9.6 |
Deferred taxation | (20.1) | 149.1 |
Asset impairments, net | 2 | 158.1 |
Restructuring charges | 0 | 13.2 |
Other non-cash movements | 2 | 1.7 |
Changes in operating assets and liabilities, net of acquisition: | ||
Decrease (increase) in accounts receivable | 13 | (19.9) |
Proceeds from sale of in-house finance receivables | 81.3 | 0 |
(Increase) decrease in other assets and other receivables | (12.9) | 188.2 |
(Increase) decrease in inventories | (112.1) | 151.1 |
Increase in accounts payable | 36.8 | 325.2 |
Decrease in accrued expenses and other liabilities | (25.6) | (192.5) |
Change in operating lease assets and liabilities | (59.9) | 43.9 |
Increase in deferred revenue | 47.1 | 25.2 |
Change in income tax receivable and payable | (67.3) | (99.7) |
Pension plan contributions | (12.4) | (3.2) |
Net cash provided by operating activities | 483.9 | 606.7 |
Investing activities | ||
Purchase of property, plant and equipment | (50.5) | (41.1) |
Purchase of available-for-sale securities | (1) | 0 |
Proceeds from sale of available-for-sale securities | 3.1 | 3.4 |
Acquisition of Rocksbox Inc., net of cash acquired | (14.6) | 0 |
Net cash used in investing activities | (63) | (37.7) |
Financing activities | ||
Dividends paid on common shares | (9.5) | (19.3) |
Dividends paid on redeemable convertible preferred shares | (16.4) | (7.8) |
Repurchase of common shares | (41.1) | 0 |
Proceeds from revolving credit facilities | 0 | 900 |
Repayments of revolving credit facilities | 0 | (380) |
Payment of debt issuance costs | (3.9) | 0 |
Increase (decrease) of bank overdrafts | 0.3 | (84.2) |
Other financing activities | (7.5) | (13.6) |
Net cash (used in) provided by financing activities | (78.1) | 395.1 |
Cash and cash equivalents at beginning of period | 1,172.5 | 374.5 |
Increase in cash and cash equivalents | 342.8 | 964.1 |
Effect of exchange rate changes on cash and cash equivalents | 1.6 | (6) |
Cash and cash equivalents at end of period | $ 1,516.9 | $ 1,332.6 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common shares at par value | Additional paid-in capital | Other reserves | Treasury shares | Retained earnings | Accumulated other comprehensive loss |
Beginning Balance at Feb. 01, 2020 | $ 1,222.6 | $ 12.6 | $ 245.4 | $ 0.4 | $ (984.9) | $ 2,242.9 | $ (293.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (197.1) | (197.1) | |||||
Other comprehensive income (loss) | (34) | (34) | |||||
Dividends declared: Preferred shares | (8.2) | (8.2) | |||||
Net settlement of equity-based awards | (0.9) | (0.4) | (0.3) | (0.2) | |||
Share-based compensation expense | 1.4 | 1.4 | |||||
Ending Balance at May. 02, 2020 | 983.8 | 12.6 | 246.4 | 0.4 | (985.2) | 2,037.4 | (327.8) |
Beginning Balance at Feb. 01, 2020 | 1,222.6 | 12.6 | 245.4 | 0.4 | (984.9) | 2,242.9 | (293.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (269.5) | ||||||
Other comprehensive income (loss) | (20.6) | ||||||
Ending Balance at Oct. 31, 2020 | 915.9 | 12.6 | 254.1 | 0.4 | (980.4) | 1,943.6 | (314.4) |
Beginning Balance at May. 02, 2020 | 983.8 | 12.6 | 246.4 | 0.4 | (985.2) | 2,037.4 | (327.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (81.7) | (81.7) | |||||
Other comprehensive income (loss) | 17.8 | 17.8 | |||||
Dividends declared: Preferred shares | (8.3) | (8.3) | |||||
Net settlement of equity-based awards | (0.1) | (0.5) | 4.1 | (3.7) | |||
Share-based compensation expense | 4.9 | 4.9 | |||||
Ending Balance at Aug. 01, 2020 | 916.4 | 12.6 | 250.8 | 0.4 | (981.1) | 1,943.7 | (310) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 9.3 | 9.3 | |||||
Other comprehensive income (loss) | (4.4) | (4.4) | |||||
Dividends declared: Preferred shares | (8.4) | (8.4) | |||||
Net settlement of equity-based awards | (0.3) | 0 | 0.7 | (1) | |||
Share-based compensation expense | 3.3 | 3.3 | |||||
Ending Balance at Oct. 31, 2020 | 915.9 | 12.6 | 254.1 | 0.4 | (980.4) | 1,943.6 | (314.4) |
Beginning Balance at Jan. 30, 2021 | 1,190.3 | 12.6 | 258.8 | 0.4 | (980.2) | 2,189.2 | (290.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 138.4 | 138.4 | |||||
Other comprehensive income (loss) | 6.9 | 6.9 | |||||
Dividends declared: Preferred shares | (8.6) | (8.6) | |||||
Net settlement of equity-based awards | (14.4) | (14.6) | 15 | (14.8) | |||
Share-based compensation expense | 8 | 8 | |||||
Ending Balance at May. 01, 2021 | 1,320.6 | 12.6 | 252.2 | 0.4 | (965.2) | 2,304.2 | (283.6) |
Beginning Balance at Jan. 30, 2021 | 1,190.3 | 12.6 | 258.8 | 0.4 | (980.2) | 2,189.2 | (290.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 455.6 | ||||||
Other comprehensive income (loss) | (54.1) | ||||||
Ending Balance at Oct. 30, 2021 | 1,534.6 | 12.6 | 271.8 | 0.4 | (986.3) | 2,580.7 | (344.6) |
Beginning Balance at May. 01, 2021 | 1,320.6 | 12.6 | 252.2 | 0.4 | (965.2) | 2,304.2 | (283.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 224.6 | 224.6 | |||||
Other comprehensive income (loss) | 1 | 1 | |||||
Dividends declared: Common shares | (9.5) | (9.5) | |||||
Dividends declared: Preferred shares | (8.6) | (8.6) | |||||
Net settlement of equity-based awards | 9.9 | (2.9) | 14.2 | (1.4) | |||
Share-based compensation expense | 17.5 | 17.5 | |||||
Ending Balance at Jul. 31, 2021 | 1,555.5 | 12.6 | 266.8 | 0.4 | (951) | 2,509.3 | (282.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 92.6 | 92.6 | |||||
Other comprehensive income (loss) | (62) | (62) | |||||
Dividends declared: Common shares | (9.5) | (9.5) | |||||
Dividends declared: Preferred shares | (8.7) | (8.7) | |||||
Repurchase of common shares | (41.1) | (41.1) | |||||
Net settlement of equity-based awards | (3.1) | (5.9) | 5.8 | (3) | |||
Share-based compensation expense | 10.9 | 10.9 | |||||
Ending Balance at Oct. 30, 2021 | $ 1,534.6 | $ 12.6 | $ 271.8 | $ 0.4 | $ (986.3) | $ 2,580.7 | $ (344.6) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Common stock, dividends (usd per share) | $ 0.18 | $ 0.18 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.36 | $ 0 |
Preferred stock, dividends (usd per share) | $ 13.14 | $ 13.14 | $ 13.14 | $ 12.81 | $ 12.66 | $ 12.50 | $ 39.42 | $ 37.97 |
Organization and principal acco
Organization and principal accounting policies | 9 Months Ended |
Oct. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and principal accounting policies | Organization and principal accounting policies Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is the world’s largest retailer of diamond jewelry. The Company operates through its 100% owned subsidiaries with sales primarily in the United States (“US”), United Kingdom (“UK”) and Canada. Signet manages its business as three reportable segments: North America, International, and Other. The “Other” reportable segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. See Note 4 for additional discussion of the Company’s reportable segments. Signet’s business is seasonal, with the fourth quarter historically accounting for approximately 35-40% of annual sales as well as accounts for a substantial portion of the annual operating profit. However, in Fiscal 2022, Signet has experienced shifts in discretionary spending and consumer behavior that may cause the fourth quarter to account for a lower percentage of annual sales and profits. Risks and Uncertainties - COVID-19 In December 2019, a novel coronavirus (“COVID-19”) was identified in Wuhan, China. During Fiscal 2021, the Company experienced significant disruption to its business, specifically in its retail store operations through temporary closures during the first half of the year. By the end of the third quarter of Fiscal 2021, the Company had re-opened substantially all of its stores. However, during the fourth quarter of Fiscal 2021, both the UK and certain Canadian provinces re-established mandated temporary closure of non-essential businesses. The UK stores began to reopen in April 2021, while the Canadian stores began reopening in the second quarter of Fiscal 2022. The full extent and duration of the impact of COVID-19 on the Company’s operations and financial performance is currently unknown and depends on future developments that are uncertain and unpredictable, including the duration and possible resurgence of COVID-19 (including through variants), the success of the vaccine rollout globally, its impact on the Company’s global supply chain, and the uncertainty of customer behavior and potential shifts in discretionary spending. The Company will continue to evaluate the impact of COVID-19 on its business, results of operations and cash flows throughout Fiscal 2022, including the potential impacts on various estimates and assumptions inherent in the preparation of the condensed consolidated financial statements. Basis of preparation The condensed consolidated financial statements of Signet are prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 filed with the SEC on March 19, 2021. Use of estimates The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and as a result of the above noted risks associated with COVID-19, it is reasonably possible that those estimates will change in the near term and the effect could be material. Estimates and assumptions are primarily made in relation to the valuation of inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, leases, asset impairments for goodwill, indefinite-lived intangible and long-lived assets and the depreciation and amortization of long-lived assets. Fiscal year The Company’s fiscal year ends on the Saturday nearest to January 31 st . Fiscal 2022 and Fiscal 2021 refer to the 52 week periods ending January 29, 2022 and ended January 30, 2021, respectively. Within these condensed consolidated financial statements, the third quarter of the relevant fiscal years 2022 and 2021 refer to the 13 weeks ended October 30, 2021 and October 31, 2020, respectively. Foreign currency translation The financial position and operating results of certain foreign operations, including certain subsidiaries operating in the UK as part of the International segment and Canada as part of the North America segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying condensed consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included in other operating income, net within the condensed consolidated statements of operations. See Note 9 for additional information regarding the Company’s foreign currency translation. Acquisition of Rocksbox On March 29, 2021, the Company acquired all of the outstanding shares of Rocksbox Inc. (“Rocksbox”), a jewelry rental subscription business, for cash consideration of $14.6 million, net of cash acquired. The acquisition was driven by Signet's "Inspiring Brilliance" strategy and its initiatives to accelerate growth in its services offerings. Based on a preliminary purchase price allocation, net assets acquired primarily consist of goodwill and intangible assets (see Note 16 for details). In connection with closing the acquisition, the Company incurred approximately $1.1 million of transaction-related costs for professional services in the 13 weeks ended May 1, 2021, which were recorded as selling, general and administrative expenses in the condensed consolidated statements of operations. The results of Rocksbox subsequent to the acquisition date are reported as a component of the North America segment. See Note 4 for additional information regarding the Company’s reportable segments. Pro forma results of operations have not been presented, as the impact on the Company’s condensed consolidated financial results was not material. Acquisition of Diamonds Direct On October 8, 2021, the Company entered into an agreement (the “Transaction Agreement”) to acquire Diamonds Direct USA Inc., a Delaware corporation (“Diamonds Direct”). The acquisition was consummated on November 17, 2021. Diamonds Direct is an off-mall, destination jeweler in the US, operating in 22 retail locations with a highly productive, efficient operating model with demonstrated growth and profitability which is expected to immediately contribute to Signet’s “Inspiring Brilliance” strategy to accelerate growth and expand the Company’s market in accessible luxury and bridal. Diamonds Direct’s strong value proposition, extensive bridal offering and customer-centric, high-touch shopping experience is a destination for younger, luxury-oriented bridal shoppers. The Company acquired 100% of the outstanding common stock of Diamonds Direct for cash consideration of $504.6 million, net of cash acquired, and subject to customary post-closing adjustments per the Transaction Agreement. In connection with the acquisition, the Company incurred $2.6 million of acquisition-related costs during the 13 weeks ended October 30, 2021, which were recorded as selling, general and administrative expenses in the condensed consolidated statements of operations. Neither the Company’s condensed consolidated balance sheets nor the operating results or cash flows, as of and for the periods ended October 30, 2021, reflect the impact of Diamonds Direct as the acquisition was completed after the balance sheet date. Signet plans to report Diamonds Direct results within the Company’s North America segment. |
New accounting pronouncements
New accounting pronouncements | 9 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
New accounting pronouncements | New accounting pronouncements The following section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company. New accounting pronouncements recently adopted There were no new accounting pronouncements adopted during Fiscal 2022 that have a material impact on the Company’s financial position or results of operations. New accounting pronouncements issued but not yet adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (“Topic 805”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU requires that an acquirer recognize and measure customer contract assets and liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers , as if the acquirer had originated the contracts, rather than under Topic 805. Under prior guidance with Topic 805, a liability for deferred revenue was generally recognized in an acquirer’s financial statements as if it represented a legal obligation. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Revenue recognition
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. |
Segment information
Segment information | 9 Months Ended |
Oct. 30, 2021 | |
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 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 principally as Kay (Kay Jewelers and Kay Jewelers Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), James Allen, Rocksbox and Piercing Pagoda, which operates primarily through mall-based kiosks. Its Canadian stores operate as the Peoples Jewellers store banner. The International reportable segment operates stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones. The Other reportable segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Sales: North America segment $ 1,394.2 $ 1,182.7 $ 4,657.9 $ 2,786.8 International segment 120.9 106.9 309.0 232.8 Other segment 22.7 10.7 47.8 20.8 Total sales $ 1,537.8 $ 1,300.3 $ 5,014.7 $ 3,040.4 Operating income (loss): North America segment (1) $ 123.8 $ 52.9 $ 573.1 $ (238.3) International segment (2) 0.2 1.6 (4.0) (52.6) Other segment (3) (0.4) 1.3 (1.4) 0.8 Corporate and unallocated expenses (4) (16.7) (16.1) (66.7) (59.5) Total operating income (loss) 106.9 39.7 501.0 (349.6) Interest expense, net (4.1) (9.1) (12.4) (25.6) Other non-operating expense, net (1.1) — (0.9) 0.3 Income (loss) before income taxes $ 101.7 $ 30.6 $ 487.7 $ (374.9) (1) Operating income (loss) during the 13 and 39 weeks ended October 30, 2021 includes $2.6 million of acquisition-related expenses in connection with the Diamonds Direct acquisition; and $0.7 million and $2.0 million, respectively, of net asset impairments. Operating income (loss) during the 39 weeks ended October 30, 2021 includes: $1.1 million of transaction-related expenses in connection with the Rocksbox acquisition; $1.4 million of gains associated with the sale of customer in-house finance receivables; and $(1.0) million to restructuring expense, primarily related to adjustments to previously recognized restructuring liabilities. See Note 1, Note 5, Note 11 and Note 14 for additional information. Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes: a $2.2 million and $1.6 million charge, respectively, related to inventory charges recorded in conjunction with the Company’s restructuring activities; charges of $0.7 million and $37.3 million, respectively, primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and asset impairment charges of $1.5 million and $136.9 million, respectively. See Note 5, Note 14 and Note 16 for additional information. (2) Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes charges of $3.0 million and $7.6 million, respectively, related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities, and asset impairment charges of $21.2 million during the 39 weeks ended October 31, 2020. S ee Note 5, Note 14 and Note 16 for additional information. (3) Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes a $0.2 million benefit recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities. See Note 5 for additional information. (4) Operating income (loss) during the 13 and 39 weeks ended October 30, 2021 includes $(1.7) million and $(2.3) million, respectively, to restructuring expense, primarily related to adjustments to previously recognized restructuring liabilities. See Note 5 for additional information. Operating income (loss) during the 39 weeks ended October 31, 2020 includes a net charge of $7.5 million related to the settlement of previously disclosed shareholder litigation matters, inclusive of expected insurance proceeds. Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes a credit of $0.1 million and net charge of $0.3 million |
Restructuring plans
Restructuring plans | 9 Months Ended |
Oct. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring plans | Restructuring plans Signet Path to Brilliance Plan During the first quarter of Fiscal 2019, Signet launched a three-year comprehensive transformation plan, the “Signet Path to Brilliance” plan (the “Plan”), to reposition the Company to be a share-gaining, OmniChannel jewelry category leader. Restructuring activities related to the Plan were substantially completed in Fiscal 2021. The Company recorded credits to restructuring expense of $1.7 million and $3.3 million, during the 13 and 39 weeks ended October 30, 2021, respectively, primarily related to adjustments to previously recognized Plan liabilities. Restructuring charges and other Plan-related costs are classified in the condensed consolidated statements of operations as follows: 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Inventory charges Restructuring charges - cost of sales $ — $ 2.0 $ — $ 1.4 Other Plan related expenses Restructuring charges (1.7) 3.6 (3.3) 45.2 Total Signet Path to Brilliance Plan expenses $ (1.7) $ 5.6 $ (3.3) $ 46.6 The composition of the restructuring charges the Company incurred during the 13 and 39 weeks ended October 30, 2021, as well as the cumulative amount incurred under the Plan through October 30, 2021, were as follows: 13 weeks ended 39 weeks ended Cumulative amount (in millions) October 30, 2021 October 30, 2021 October 30, 2021 Inventory charges $ — $ — $ 72.8 Termination benefits — (1.1) 48.8 Store closure and other costs (1.7) (2.2) 127.7 Total Signet Path to Brilliance Plan expenses $ (1.7) $ (3.3) $ 249.3 Plan liabilities of $2.3 million were recorded within accrued expenses and other current liabilities and Plan liabilities of $2.0 million were recorded within other liabilities in the condensed consolidated balance sheet as of October 30, 2021. The remaining Plan liabilities consist primarily of store closure liabilities. The following table summarizes the activity related to the Plan liabilities for Fiscal 2022: (in millions) Termination benefits Store closure and other costs Consolidated Balance at January 30, 2021 $ 2.1 $ 8.1 $ 10.2 Payments and other adjustments (0.9) (1.7) (2.6) Charged (credited) to expense (1.1) (2.2) (3.3) Balance at October 30, 2021 $ 0.1 $ 4.2 $ 4.3 |
Redeemable preferred shares
Redeemable preferred shares | 9 Months Ended |
Oct. 30, 2021 | |
Temporary Equity [Abstract] | |
Redeemable preferred shares | Redeemable preferred shares On October 5, 2016, the Company issued 625,000 shares of Series A Redeemable Convertible Preference Shares (“Preferred Shares”) to certain affiliates of Leonard Green & Partners, L.P., for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears either in cash or by increasing the stated value of the Preferred Shares. The Company declared the Preferred Share dividend during the fourth quarter of Fiscal 2021 payable “in-kind” by increasing the Stated Value of the Preferred Shares. The Stated Value of the Preferred Shares increased by $12.97 per share during the first quarter of Fiscal 2022 when this dividend was paid, all of which will become payable upon liquidation of the Preferred Shares. The Company has declared the first, second, and third quarter Fiscal 2022 Preferred Share dividends payable in cash. Refer to Note 7 for additional discussion of the Company’s dividends on Preferred Shares. (in millions, except conversion rate and conversion price) October 30, 2021 January 30, 2021 October 31, 2020 Conversion rate 12.2297 12.2297 12.2297 Conversion price $ 81.7682 $ 81.7682 $ 81.7682 Potential impact of preferred shares if-converted to common shares 8.0 7.9 7.8 Liquidation preference (1) $ 665.0 $ 656.8 $ 648.7 (1) Includes the stated value of the Preferred Shares plus any declared but unpaid dividends In connection with the issuance of the Preferred Shares, the Company incurred direct and incremental expenses of $13.7 million. These direct and incremental expenses originally reduced the Preferred Shares carrying value and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date in November 2024. Accumulated accretion recorded in the condensed consolidated balance sheets was $8.5 million as of October 30, 2021 (January 30, 2021 and October 31, 2020: $7.3 million and $6.9 million, respectively). Accretion of $0.4 million and $1.2 million was recorded to Preferred Shares in the condensed consolidated balance sheets during the 13 and 39 weeks ended October 30, 2021 ($0.4 million and $1.2 million for the 13 and 39 weeks ended October 31, 2020). |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Oct. 30, 2021 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders’ equity Dividends on Common Shares As a result of COVID-19, Signet’s Board of Directors (the “Board”) elected to temporarily suspend the dividend program on common shares, effective in the first quarter of Fiscal 2021. The Board elected to reinstate the dividend program on common shares beginning in second quarter of Fiscal 2022. Dividends declared on the common shares during the 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: Fiscal 2022 Fiscal 2021 (in millions, except per share amounts) Dividends Total dividends Dividends Total dividends First quarter $ — $ — $ — $ — Second quarter 0.18 9.5 — — Third quarter (1) 0.18 9.5 — — Total $ 0.36 $ 19.0 $ — $ — (1) Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of October 30, 2021, $9.5 million was recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet reflecting the cash dividends on common shares declared for the third quarter of Fiscal 2022. Dividends on Preferred Shares Dividends declared on the Preferred Shares during the 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: Fiscal 2022 Fiscal 2021 (in millions, except per share amounts) Dividends Total dividends Dividends Total dividends First quarter $ 13.14 $ 8.2 $ 12.50 $ 7.8 Second quarter 13.14 8.2 12.66 7.9 Third quarter (1) 13.14 8.2 12.81 8.0 Total $ 39.42 $ 24.6 $ 37.97 $ 23.7 (1) Signet’s Preferred Shares dividends result in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of October 30, 2021, January 30, 2021, and October 31, 2020, $8.2 million, $8.1 million, and $8.0 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the dividends on the Preferred Shares declared for the third quarter of Fiscal 2022, fourth quarter of Fiscal 2021, and third quarter of Fiscal 2021, respectively. There were no cumulative undeclared dividends on the Preferred Shares that reduced net income (loss) attributable to common shareholders during the 13 and 39 weeks ended October 30, 2021 or October 31, 2020. See Note 6 for additional discussion of the Company’s Preferred Shares. Share repurchases Common shares repurchased during the 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: 39 weeks ended October 30, 2021 39 weeks ended October 31, 2020 (in millions, except per share amounts Amount authorized Shares repurchased Amount repurchased (1) Average repurchase price per share (1) Shares repurchased Amount repurchased Average repurchase price per share 2017 Program $ 659.4 0.5 $ 41.1 $ 88.04 — $ — N/A (1) Includes amounts paid for commissions. On August 23, 2021, the Board authorized a reinstatement of repurchases under the 2017 Share Repurchase Program (the “2017 Program”), as well as an increase in the remaining amount of shares authorized for repurchase under the 2017 Program, from $165.6 million to $225 million. The 2017 Program had $183.9 million of shares authorized for repurchase remaining as of October 30, 2021. |
Earnings (loss) per common shar
Earnings (loss) per common share (EPS) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per common share (“EPS”) | Earnings (loss) per common share ( “ EPS ” ) Basic EPS is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below: 13 weeks ended 39 weeks ended (in millions, except per share amounts) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator: Net income (loss) attributable to common shareholders $ 83.9 $ 0.9 $ 429.7 $ (294.4) Denominator: Weighted average common shares outstanding 52.9 52.1 52.6 51.9 EPS – basic $ 1.59 $ 0.02 $ 8.17 $ (5.67) The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares, restricted stock units, performance share units and stock options issued under the Omnibus Plan and stock options issued under the Share Saving Plans. The dilutive effect of performance share units represents the number of contingently issuable shares that would be issuable if the end of the period was the end of the contingency period, and is based on the actual achievement of performance metrics through the end of the current interim period. The dilutive effect of Preferred Shares represents the potential impact for common shares that would be issued upon conversion. Potential common share dilution related to share awards and Preferred Shares is determined using the treasury stock and if-converted methods, respectively. Under the if-converted method, the Preferred Shares are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented, only in the periods in which such effect is dilutive. Additionally, in periods in which Preferred Shares are dilutive, cumulative dividends and accretion for issuance costs associated with the Preferred Shares are added back to net income (loss) attributable to common shareholders. See Note 6 for additional discussion of the Company’s Preferred Shares. The computation of diluted EPS is outlined in the table below: 13 weeks ended 39 weeks ended (in millions, except per share amounts) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator: Net income (loss) attributable to common shareholders $ 83.9 $ 0.9 $ 429.7 $ (294.4) Add: Dividends on Preferred Shares 8.7 — 25.9 — Numerator for diluted EPS $ 92.6 $ 0.9 $ 455.6 $ (294.4) Denominator: Basic weighted average common shares outstanding 52.9 52.1 52.6 51.9 Plus: Dilutive effect of share awards 2.8 1.3 2.1 — Plus: Dilutive effect of Preferred Shares 8.0 — 8.0 — Diluted weighted average common shares outstanding 63.7 53.4 62.7 51.9 EPS – diluted $ 1.45 $ 0.02 $ 7.27 $ (5.67) The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Share awards — 0.7 — 1.6 Potential impact of Preferred Shares — 7.8 — 7.7 Total anti-dilutive shares — 8.5 — 9.3 |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 9 Months Ended |
Oct. 30, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax: Pension plan (in millions) Foreign Gains (losses) on available-for-sale securities, net Gains (losses) Actuarial Prior Accumulated Balance at January 30, 2021 $ (238.9) $ 0.5 $ (0.9) $ (47.2) $ (4.0) $ (290.5) Other comprehensive income (loss) (“OCI”) before reclassifications 3.1 (0.2) 0.2 (58.9) — (55.8) Amounts reclassified from AOCI to net income — — 0.5 1.1 0.1 1.7 Net current period OCI 3.1 (0.2) 0.7 (57.8) 0.1 (54.1) Balance at October 30, 2021 $ (235.8) $ 0.3 $ (0.2) $ (105.0) $ (3.9) $ (344.6) The amounts reclassified from AOCI to earnings were as follows: Amounts reclassified from AOCI 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Statement of operations caption Losses (gains) on cash flow hedges: Foreign currency contracts $ 0.1 $ — $ 0.4 $ — Cost of sales (see Note 17) Commodity contracts — (1.8) 0.2 (3.5) Cost of sales (see Note 17) Total before income tax 0.1 (1.8) 0.6 (3.5) Losses (gains) on de-designating cash flow hedges: Foreign currency contracts — — — (0.6) Other operating income, net (see Note 17) Commodity contracts — — — (9.3) Other operating income, net (see Note 17) Total before income tax — — — (9.9) Income taxes — (0.1) (0.1) 2.6 Net of tax 0.1 (1.9) 0.5 (10.8) Defined benefit pension plan items: Amortization of unrecognized actuarial losses 1.0 0.1 1.4 0.2 Other non-operating income, net Amortization of unrecognized net prior service costs — 0.4 0.1 0.7 Other non-operating income, net Total before income tax 1.0 0.5 1.5 0.9 Income taxes (0.2) (0.1) (0.3) (0.1) Net of tax 0.8 0.4 1.2 0.8 Total reclassifications, net of tax $ 0.9 $ (1.5) $ 1.7 $ (10.0) |
Income taxes
Income taxes | 9 Months Ended |
Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes 39 weeks ended October 30, 2021 October 31, 2020 Estimated annual effective tax rate before discrete items 22.1 % 19.5 % Discrete items recognized (15.5) % 8.6 % Effective tax rate recognized in statements of operations 6.6 % 28.1 % During the 39 weeks ended October 30, 2021, the Company’s effective tax rate was lower than the US federal income tax rate primarily due to the reversal of the valuation allowance recorded against certain state deferred tax assets, as well as additional benefits realized from the Coronavirus Aid, Relief, and Economic Security (“CARES Act”) and other permanent differences. In the first quarter of Fiscal 2021, the Company recorded a valuation allowance on certain state deferred tax assets based primarily on its three-year cumulative loss position. During the second quarter of Fiscal 2022, the Company evaluated evidence to consider the reversal of the valuation allowance on its state net deferred tax assets and determined that there was sufficient positive evidence to conclude that it is more likely than not its state deferred tax assets are realizable. In determining the likelihood of future realization of the state deferred tax assets, the Company considered both positive and negative evidence. As a result, the Company believed that the weight of the positive evidence, including the cumulative income position in the three most recent years as of July 31, 2021 and forecasts for a sustained level of future taxable income, was sufficient to overcome the weight of the negative evidence, and thus recorded a $49.8 million tax benefit to release the valuation allowance against the Company's state deferred tax assets in the second quarter of Fiscal 2022. The Company’s effective tax rate for the same period during the prior year was higher than the US federal income tax rate primarily due to the benefits from the CARES Act recognized as a discrete item during the 39 weeks ended October 31, 2020, partially offset by the unfavorable impact of a valuation allowance recorded against certain US and state deferred tax assets and the impairment of goodwill which was not deductible for tax purposes. The CARES Act provided a technical correction to the Tax Cuts and Jobs Act (“TCJA”) allowing fiscal year tax filers with federal net operating losses arising in the 2017/2018 tax year to be carried back two years to tax years that had higher enacted tax rates resulting in a tax benefit of $73.8 million recognized as a discrete item during the 39 weeks ended October 31, 2020. The CARES Act also provided for net operating losses incurred in Fiscal 2021 to be carried back five years to tax years with higher enacted tax rates resulting in an anticipated tax benefit of $23.5 million during the 39 weeks ended October 31, 2020, with an additional benefit recognized in the third quarter of Fiscal 2022 of $12.4 million. In addition, as discussed above, the Company recorded a valuation allowance of $66.9 million against certain deferred tax assets during the 39 weeks ended October 31, 2020. The estimated annual effective tax rate excludes the effects of any discrete items that may be recognized in future periods. As of October 30, 2021, there has been no material change in the amounts of unrecognized tax benefits, or the related accrued interest and penalties (where appropriate), in respect of uncertain tax positions identified and recorded as of January 30, 2021. |
Credit transactions
Credit transactions | 9 Months Ended |
Oct. 30, 2021 | |
Receivables [Abstract] | |
Credit transactions | Credit transactions Credit card outsourcing programs The Company has entered into various agreements with Comenity Bank, through its subsidiaries Sterling Jewelers Inc. (“Sterling”) and Zale Delaware, Inc. (“Zale”), to outsource its private label credit card programs. Prior to the amendments described below, under these agreements, Comenity Bank provided credit services to all prime credit customers for the Sterling banners, and to all credit card customers for the Zale banners. In May 2021, both the Sterling and Zale agreements with Comenity Bank were amended and restated as further described below. The non-prime portion of the Sterling credit card portfolio was outsourced to CarVal Investors (“CarVal”) and the appointed minority party, Castlelake, L.P. (“Castlelake” and collectively with CarVal, the “Investors”). Under the agreement with the Investors, Signet remains the issuer of non-prime credit with investment funds managed by the Investors purchasing forward receivables at a discount rate determined in accordance with their respective agreements. Signet holds the newly issued non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the respective counterparty in accordance with the agreements. Various amended and restated agreements have been entered into with the Investors as described below. Fiscal 2021 non-prime agreements with the Investors During Fiscal 2021, the 2018 agreements pertaining to the purchase of forward flow receivables were terminated and new agreements were executed with the Investors which were effective until June 30, 2021. Those new agreements provided that the Investors will continue to purchase add-on non-prime receivables created on existing customer accounts at a discount rate determined in accordance with the new agreements. As a result of the above agreements, Signet began retaining all forward flow non-prime receivables created for new customers beginning in the second quarter of Fiscal 2021. The termination of the previous agreements had no effect on the receivables that were previously sold to the Investors prior to the termination, except that Signet agreed to extend the Investors’ payment obligation for the remaining 5% of the receivables previously purchased in June 2018 until the new agreements terminate. The Company’s agreement with the credit servicer Genesis Financial Solutions (“Genesis”) remained in place. In January 2021, the Company reached additional agreements with the Investors to further amend the purchase agreements described above through June 30, 2021. CarVal continued to purchase add-on receivables for existing accounts and began to purchase 50% of new forward flow non-prime receivables. Genesis (becoming one of the “Investors”) began to purchase the remaining 50% of new forward flow non-prime receivables through June 30, 2021. Castlelake continued to purchase add-on receivables for existing accounts through June 30, 2021. Signet continued to retain add-on receivables for its existing accounts but no longer retained new forward flow non-prime receivables. Fiscal 2022 amended and restated agreements On May 17, 2021, Sterling entered into an Amended and Restated Credit Card Program Agreement (“Sterling Program Agreement”) with Comenity Bank, which amends and restates the Credit Card Program Agreement entered into by and between Sterling and Comenity Bank on May 25, 2017. In addition, on May 17, 2021, the Company, through Zale, entered into an Amended and Restated Private Label Credit Card Program Agreement (“Zale Program Agreement” and together with the Sterling Program Agreement, each a “Program Agreement” and collectively the “Program Agreements”) with Comenity Capital Bank (“Comenity Capital” and together with Comenity Bank, “Comenity”), which amends and restates the Private Label Credit Card Program Agreement entered into by Zale and Comenity Capital on July 9, 2013. Each Program Agreement has an initial term from July 1, 2021 through December 31, 2025 and, unless terminated earlier by either party, automatically renews for successive two Subject to limited exceptions, including permitting a second look program, during the term of the applicable Program Agreement, Comenity will be the exclusive issuer of open-ended credit products (including credit cards) in the United States bearing specified Company trademarks, including trademarks associated with “Kay”, “Jared” and other specified regional brands under the Sterling Program Agreement, and, “Zale”, “Piercing Pagoda”, and other specified regional brands under the Zale Program Agreement. The Program Agreements contain customary representations, warranties, and covenants. Upon expiration or termination by either party of a Program Agreement, Sterling or Zale, as applicable, retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on customary terms and conditions. In the case of a purchase by Sterling upon expiration or termination of the Sterling Program Agreement, such purchase shall be on terms that are no more onerous to Sterling than those applicable to Comenity Bank under the Purchase Agreement, dated May 25, 2017, by and between Sterling and Comenity Bank. In addition to the Program Agreements, on May 17, 2021, Sterling entered into an Amended and Restated Program Agreement (the “Genesis Agreement”) with Genesis, which amends and restates the Program Agreement entered into by and between Sterling and Genesis on July 26, 2018. The Genesis Agreement has an initial term from July 1, 2021 through December 31, 2025 and, unless terminated earlier by either party, automatically renews for successive one-year periods. Under the terms of the Genesis Agreement, Genesis will expand its role in originating, funding, administering and servicing a second look credit program to Sterling customers that are declined under the Sterling Program Agreement. In March 2021, the Company provided notice to the Investors of its intent not to extend the respective agreements with such Investors beyond the expiration date of June 30, 2021. Effective July 1, 2021 (the “New Program Start Date”), all new prime and non-prime account origination will occur in accordance with the amended and restated Comenity and Genesis agreements as described above. On June 30, 2021, the Company entered into amended and restated receivable purchase agreements with CarVal and Castlelake regarding the purchase of add-on receivables on such Investors’ existing accounts, as well as the purchase of the Company-owned credit card receivables portfolio for accounts that had been originated through Fiscal 2021 (see Note 12 ) . During the second quarter of Fiscal 2022, Signet received cash proceeds of $57.8 million for the sale of these customer in-house finance receivables to the Investors. These receivables had a net book value of $56.4 million as of the sale date, and thus the Company recognized a gain on sale of $1.4 million in the North America segment within other operating income in the condensed consolidated statements of operations during the second quarter of Fiscal 2022. Additionally, during the second quarter of Fiscal 2022, the Company received $23.5 million from the Investors for the payment obligation of the remaining 5% of the receivables previously purchased in June 2018. The following table presents the components of Signet’s accounts receivable: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Customer in-house finance receivables, net $ — $ 72.0 $ 39.6 Accounts receivable, trade 17.0 11.6 13.2 Accounts receivable, held for sale 2.3 5.1 5.5 Accounts receivable, net $ 19.3 $ 88.7 $ 58.3 As discussed in Note 11, during Fiscal 2021, the 2018 agreements pertaining to the purchase of non-prime forward flow receivables were terminated and new agreements were executed with the Investors which were effective until June 30, 2021. Those new agreements provide that the Investors continued to purchase add-on non-prime receivables created on existing customer accounts but Signet began retaining all forward flow non-prime receivables created for new customers beginning in the second quarter of Fiscal 2021. As further discussed in Note 11, Signet sold all existing customer in-house finance receivables to CarVal and Castlelake during the second quarter of Fiscal 2022. As a result of the amended and restated agreements entered into with Comenity, Genesis, and the Investors during the second quarter of Fiscal 2022, Signet will no longer retain any customer in-house finance receivables. As described above, Signet continues to be the issuer of non-prime credit for add-on purchases on existing accounts. Therefore, the Company holds these non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the Investors. Receivables originated by the Company but pending transfer to the Investors as of period end were classified as “held for sale” and included in the accounts receivable caption in the condensed consolidated balance sheets. As of October 30, 2021, January 30, 2021, and October 31, 2020, the accounts receivable held for sale were recorded at fair value. Accounts receivable classified as trade receivables consist primarily of accounts receivable related to the sale of diamonds to third parties from its polishing factory deemed unsuitable for Signet's needs in the Other segment. Customer in-house finance receivables As discussed above, the Company began retaining certain customer in-house finance receivables beginning in the second quarter of Fiscal 2021 through the date of the portfolio sale. The allowance for credit losses was an estimate of expected credit losses, measured over the estimated life of its credit card receivables that considers forecasts of future economic conditions in addition to information about past events and current conditions. The Company accounts for the expected credit losses under ASC 326, “Measurement of Credit Losses on Financial Instruments,” which is referred to as the Current Expected Credit Loss (“CECL”) model. The estimate under the CECL model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card receivables, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. The allowance is maintained through an adjustment to the provision for credit losses and is evaluated for appropriateness and adjusted quarterly. CECL requires entities to use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. The Company evaluated multiple risk characteristics of its credit card receivables portfolio and determined that credit quality and account vintage to be the most significant characteristics for estimating expected credit losses. To estimate its allowance for credit losses, the Company segregates its credit card receivables into credit quality categories using the customers’ FICO scores. The following three industry standard FICO score categories are used: • 620 to 659 (“Near Prime”) • 580 to 619 (“Subprime”) • Less than 580 (“Deep Subprime”) These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. The expected loss rates are adjusted on a quarterly basis based on historical loss trends and are risk-adjusted for current and future economic conditions and events. As summarized in the table below, based on the changes in the agreements with the Investors in Fiscal 2021, there is currently one vintage year since the Company began maintaining new accounts in Fiscal 2021 and ceased maintaining newly originated accounts by the end of Fiscal 2021. The vintage year was Fiscal 2021 for all customer in-house finance receivables presented below. The following table disaggregates the Company’s customer in-house finance receivables by credit quality: (in millions) January 30, 2021 October 31, 2020 Near Prime $ 46.6 $ 26.4 Subprime 38.9 21.8 Deep Subprime 12.0 6.0 Total at amortized cost $ 97.5 $ 54.2 In estimating its allowance for credit losses, for each identified risk category, management utilized estimation methods based primarily on historical loss experience, current conditions, and other relevant factors. These methods utilize historical charge-off data of the Company’s non-prime portfolio, as well as incorporate any applicable macroeconomic variables (such as unemployment) that may be expected to impact credit performance. In addition to the quantitative estimate of expected credit losses under CECL using the historical loss information, the Company also incorporates qualitative adjustments for certain factors such as Company specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the allowance for credit losses reflects the Company’s best estimate of current expected credit losses. Management considered qualitative factors such as the unfavorable macroeconomic conditions caused by the COVID-19 uncertainty (including rates of unemployment), the Company’s non-prime portfolio performance during the prior recession, and the potential impacts of the economic stimulus packages in the US, in developing its estimate for current expected credit losses for the current period. The following table is a rollforward of the Company’s allowance for credit losses on customer in-house finance receivables: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Balance at beginning of period $ — $ 7.1 $ 25.5 $ — Provision for credit losses (0.6) 7.5 (1.0) 14.6 Write-offs — — (5.5) — Recoveries 0.6 — 0.6 — Reversal of allowance on receivables sold — — (19.6) — Balance at end of period $ — $ 14.6 $ — $ 14.6 Beginning in the second quarter of Fiscal 2021, in connection with the new agreements executed with the Investors, additions to the allowance for credit losses are made by recording charges to bad debt expense (credit losses) within selling, general and administrative expenses within the condensed consolidated statements of operations. The uncollectible portion of customer in-house finance receivables are charged to the allowance for credit losses when an account is written-off after 180 days of non-payment, or in circumstances such as bankrupt or deceased cardholders. Write-offs on customer in-house finance receivables include uncollected amounts related to principal, interest, and late fees. Uncollectible accrued interest is accounted for by recognizing credit loss expense. Recoveries on customer in-house finance receivables previously written-off as uncollectible are credited to the allowance for credit losses. A credit card account is contractually past due if the Company does not receive the minimum payment by the specified due date on the cardholder’s statement. It is the Company’s policy to continue to accrue interest and fee income on all credit card accounts, except in limited circumstances, until the credit card account balance and all related interest and other fees are paid or written-off, typically at 180 days delinquent, as noted above. The following table disaggregates the Company’s customer in-house finance receivables by past due status: (in millions) January 30, 2021 October 31, 2020 Current $ 81.3 $ 47.6 1 - 30 days past due 9.1 4.0 31 - 60 days past due 2.6 1.5 61 - 90 days past due 1.7 0.7 Greater than 90 days past due 2.8 0.4 Total at amortized cost $ 97.5 $ 54.2 Interest income related to the Company’s customer in-house finance receivables is included within other operating income, net in the condensed consolidated statements of operations. Accrued interest is included within the same line item as the respective principal amount of the customer in-house finance receivables in the condensed consolidated balance sheets. The accrual of interest is discontinued at the time the receivable is determined to be uncollectible and written-off. The Company recognized $6.5 million of interest income on its customer in-house finance receivables during the 39 weeks ended October 30, 2021. Interest income recognition ceased at the date of the sale of the portfolio as noted above. Interest income was immaterial in the prior year periods. |
Accounts receivable, net
Accounts receivable, net | 9 Months Ended |
Oct. 30, 2021 | |
Receivables [Abstract] | |
Accounts receivable, net | Credit transactions Credit card outsourcing programs The Company has entered into various agreements with Comenity Bank, through its subsidiaries Sterling Jewelers Inc. (“Sterling”) and Zale Delaware, Inc. (“Zale”), to outsource its private label credit card programs. Prior to the amendments described below, under these agreements, Comenity Bank provided credit services to all prime credit customers for the Sterling banners, and to all credit card customers for the Zale banners. In May 2021, both the Sterling and Zale agreements with Comenity Bank were amended and restated as further described below. The non-prime portion of the Sterling credit card portfolio was outsourced to CarVal Investors (“CarVal”) and the appointed minority party, Castlelake, L.P. (“Castlelake” and collectively with CarVal, the “Investors”). Under the agreement with the Investors, Signet remains the issuer of non-prime credit with investment funds managed by the Investors purchasing forward receivables at a discount rate determined in accordance with their respective agreements. Signet holds the newly issued non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the respective counterparty in accordance with the agreements. Various amended and restated agreements have been entered into with the Investors as described below. Fiscal 2021 non-prime agreements with the Investors During Fiscal 2021, the 2018 agreements pertaining to the purchase of forward flow receivables were terminated and new agreements were executed with the Investors which were effective until June 30, 2021. Those new agreements provided that the Investors will continue to purchase add-on non-prime receivables created on existing customer accounts at a discount rate determined in accordance with the new agreements. As a result of the above agreements, Signet began retaining all forward flow non-prime receivables created for new customers beginning in the second quarter of Fiscal 2021. The termination of the previous agreements had no effect on the receivables that were previously sold to the Investors prior to the termination, except that Signet agreed to extend the Investors’ payment obligation for the remaining 5% of the receivables previously purchased in June 2018 until the new agreements terminate. The Company’s agreement with the credit servicer Genesis Financial Solutions (“Genesis”) remained in place. In January 2021, the Company reached additional agreements with the Investors to further amend the purchase agreements described above through June 30, 2021. CarVal continued to purchase add-on receivables for existing accounts and began to purchase 50% of new forward flow non-prime receivables. Genesis (becoming one of the “Investors”) began to purchase the remaining 50% of new forward flow non-prime receivables through June 30, 2021. Castlelake continued to purchase add-on receivables for existing accounts through June 30, 2021. Signet continued to retain add-on receivables for its existing accounts but no longer retained new forward flow non-prime receivables. Fiscal 2022 amended and restated agreements On May 17, 2021, Sterling entered into an Amended and Restated Credit Card Program Agreement (“Sterling Program Agreement”) with Comenity Bank, which amends and restates the Credit Card Program Agreement entered into by and between Sterling and Comenity Bank on May 25, 2017. In addition, on May 17, 2021, the Company, through Zale, entered into an Amended and Restated Private Label Credit Card Program Agreement (“Zale Program Agreement” and together with the Sterling Program Agreement, each a “Program Agreement” and collectively the “Program Agreements”) with Comenity Capital Bank (“Comenity Capital” and together with Comenity Bank, “Comenity”), which amends and restates the Private Label Credit Card Program Agreement entered into by Zale and Comenity Capital on July 9, 2013. Each Program Agreement has an initial term from July 1, 2021 through December 31, 2025 and, unless terminated earlier by either party, automatically renews for successive two Subject to limited exceptions, including permitting a second look program, during the term of the applicable Program Agreement, Comenity will be the exclusive issuer of open-ended credit products (including credit cards) in the United States bearing specified Company trademarks, including trademarks associated with “Kay”, “Jared” and other specified regional brands under the Sterling Program Agreement, and, “Zale”, “Piercing Pagoda”, and other specified regional brands under the Zale Program Agreement. The Program Agreements contain customary representations, warranties, and covenants. Upon expiration or termination by either party of a Program Agreement, Sterling or Zale, as applicable, retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on customary terms and conditions. In the case of a purchase by Sterling upon expiration or termination of the Sterling Program Agreement, such purchase shall be on terms that are no more onerous to Sterling than those applicable to Comenity Bank under the Purchase Agreement, dated May 25, 2017, by and between Sterling and Comenity Bank. In addition to the Program Agreements, on May 17, 2021, Sterling entered into an Amended and Restated Program Agreement (the “Genesis Agreement”) with Genesis, which amends and restates the Program Agreement entered into by and between Sterling and Genesis on July 26, 2018. The Genesis Agreement has an initial term from July 1, 2021 through December 31, 2025 and, unless terminated earlier by either party, automatically renews for successive one-year periods. Under the terms of the Genesis Agreement, Genesis will expand its role in originating, funding, administering and servicing a second look credit program to Sterling customers that are declined under the Sterling Program Agreement. In March 2021, the Company provided notice to the Investors of its intent not to extend the respective agreements with such Investors beyond the expiration date of June 30, 2021. Effective July 1, 2021 (the “New Program Start Date”), all new prime and non-prime account origination will occur in accordance with the amended and restated Comenity and Genesis agreements as described above. On June 30, 2021, the Company entered into amended and restated receivable purchase agreements with CarVal and Castlelake regarding the purchase of add-on receivables on such Investors’ existing accounts, as well as the purchase of the Company-owned credit card receivables portfolio for accounts that had been originated through Fiscal 2021 (see Note 12 ) . During the second quarter of Fiscal 2022, Signet received cash proceeds of $57.8 million for the sale of these customer in-house finance receivables to the Investors. These receivables had a net book value of $56.4 million as of the sale date, and thus the Company recognized a gain on sale of $1.4 million in the North America segment within other operating income in the condensed consolidated statements of operations during the second quarter of Fiscal 2022. Additionally, during the second quarter of Fiscal 2022, the Company received $23.5 million from the Investors for the payment obligation of the remaining 5% of the receivables previously purchased in June 2018. The following table presents the components of Signet’s accounts receivable: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Customer in-house finance receivables, net $ — $ 72.0 $ 39.6 Accounts receivable, trade 17.0 11.6 13.2 Accounts receivable, held for sale 2.3 5.1 5.5 Accounts receivable, net $ 19.3 $ 88.7 $ 58.3 As discussed in Note 11, during Fiscal 2021, the 2018 agreements pertaining to the purchase of non-prime forward flow receivables were terminated and new agreements were executed with the Investors which were effective until June 30, 2021. Those new agreements provide that the Investors continued to purchase add-on non-prime receivables created on existing customer accounts but Signet began retaining all forward flow non-prime receivables created for new customers beginning in the second quarter of Fiscal 2021. As further discussed in Note 11, Signet sold all existing customer in-house finance receivables to CarVal and Castlelake during the second quarter of Fiscal 2022. As a result of the amended and restated agreements entered into with Comenity, Genesis, and the Investors during the second quarter of Fiscal 2022, Signet will no longer retain any customer in-house finance receivables. As described above, Signet continues to be the issuer of non-prime credit for add-on purchases on existing accounts. Therefore, the Company holds these non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the Investors. Receivables originated by the Company but pending transfer to the Investors as of period end were classified as “held for sale” and included in the accounts receivable caption in the condensed consolidated balance sheets. As of October 30, 2021, January 30, 2021, and October 31, 2020, the accounts receivable held for sale were recorded at fair value. Accounts receivable classified as trade receivables consist primarily of accounts receivable related to the sale of diamonds to third parties from its polishing factory deemed unsuitable for Signet's needs in the Other segment. Customer in-house finance receivables As discussed above, the Company began retaining certain customer in-house finance receivables beginning in the second quarter of Fiscal 2021 through the date of the portfolio sale. The allowance for credit losses was an estimate of expected credit losses, measured over the estimated life of its credit card receivables that considers forecasts of future economic conditions in addition to information about past events and current conditions. The Company accounts for the expected credit losses under ASC 326, “Measurement of Credit Losses on Financial Instruments,” which is referred to as the Current Expected Credit Loss (“CECL”) model. The estimate under the CECL model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card receivables, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. The allowance is maintained through an adjustment to the provision for credit losses and is evaluated for appropriateness and adjusted quarterly. CECL requires entities to use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. The Company evaluated multiple risk characteristics of its credit card receivables portfolio and determined that credit quality and account vintage to be the most significant characteristics for estimating expected credit losses. To estimate its allowance for credit losses, the Company segregates its credit card receivables into credit quality categories using the customers’ FICO scores. The following three industry standard FICO score categories are used: • 620 to 659 (“Near Prime”) • 580 to 619 (“Subprime”) • Less than 580 (“Deep Subprime”) These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. The expected loss rates are adjusted on a quarterly basis based on historical loss trends and are risk-adjusted for current and future economic conditions and events. As summarized in the table below, based on the changes in the agreements with the Investors in Fiscal 2021, there is currently one vintage year since the Company began maintaining new accounts in Fiscal 2021 and ceased maintaining newly originated accounts by the end of Fiscal 2021. The vintage year was Fiscal 2021 for all customer in-house finance receivables presented below. The following table disaggregates the Company’s customer in-house finance receivables by credit quality: (in millions) January 30, 2021 October 31, 2020 Near Prime $ 46.6 $ 26.4 Subprime 38.9 21.8 Deep Subprime 12.0 6.0 Total at amortized cost $ 97.5 $ 54.2 In estimating its allowance for credit losses, for each identified risk category, management utilized estimation methods based primarily on historical loss experience, current conditions, and other relevant factors. These methods utilize historical charge-off data of the Company’s non-prime portfolio, as well as incorporate any applicable macroeconomic variables (such as unemployment) that may be expected to impact credit performance. In addition to the quantitative estimate of expected credit losses under CECL using the historical loss information, the Company also incorporates qualitative adjustments for certain factors such as Company specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the allowance for credit losses reflects the Company’s best estimate of current expected credit losses. Management considered qualitative factors such as the unfavorable macroeconomic conditions caused by the COVID-19 uncertainty (including rates of unemployment), the Company’s non-prime portfolio performance during the prior recession, and the potential impacts of the economic stimulus packages in the US, in developing its estimate for current expected credit losses for the current period. The following table is a rollforward of the Company’s allowance for credit losses on customer in-house finance receivables: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Balance at beginning of period $ — $ 7.1 $ 25.5 $ — Provision for credit losses (0.6) 7.5 (1.0) 14.6 Write-offs — — (5.5) — Recoveries 0.6 — 0.6 — Reversal of allowance on receivables sold — — (19.6) — Balance at end of period $ — $ 14.6 $ — $ 14.6 Beginning in the second quarter of Fiscal 2021, in connection with the new agreements executed with the Investors, additions to the allowance for credit losses are made by recording charges to bad debt expense (credit losses) within selling, general and administrative expenses within the condensed consolidated statements of operations. The uncollectible portion of customer in-house finance receivables are charged to the allowance for credit losses when an account is written-off after 180 days of non-payment, or in circumstances such as bankrupt or deceased cardholders. Write-offs on customer in-house finance receivables include uncollected amounts related to principal, interest, and late fees. Uncollectible accrued interest is accounted for by recognizing credit loss expense. Recoveries on customer in-house finance receivables previously written-off as uncollectible are credited to the allowance for credit losses. A credit card account is contractually past due if the Company does not receive the minimum payment by the specified due date on the cardholder’s statement. It is the Company’s policy to continue to accrue interest and fee income on all credit card accounts, except in limited circumstances, until the credit card account balance and all related interest and other fees are paid or written-off, typically at 180 days delinquent, as noted above. The following table disaggregates the Company’s customer in-house finance receivables by past due status: (in millions) January 30, 2021 October 31, 2020 Current $ 81.3 $ 47.6 1 - 30 days past due 9.1 4.0 31 - 60 days past due 2.6 1.5 61 - 90 days past due 1.7 0.7 Greater than 90 days past due 2.8 0.4 Total at amortized cost $ 97.5 $ 54.2 Interest income related to the Company’s customer in-house finance receivables is included within other operating income, net in the condensed consolidated statements of operations. Accrued interest is included within the same line item as the respective principal amount of the customer in-house finance receivables in the condensed consolidated balance sheets. The accrual of interest is discontinued at the time the receivable is determined to be uncollectible and written-off. The Company recognized $6.5 million of interest income on its customer in-house finance receivables during the 39 weeks ended October 30, 2021. Interest income recognition ceased at the date of the sale of the portfolio as noted above. Interest income was immaterial in the prior year periods. |
Inventories
Inventories | 9 Months Ended |
Oct. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes the Company’s inventory by classification: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Raw materials $ 72.6 $ 45.3 $ 84.2 Finished goods 2,075.7 1,987.2 2,089.8 Total inventories $ 2,148.3 $ 2,032.5 $ 2,174.0 As of October 30, 2021, inventory reserves were $48.5 million ($52.9 million and $42.2 million as of January 30, 2021 and October 31, 2020, respectively). |
Asset impairments, net
Asset impairments, net | 9 Months Ended |
Oct. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Asset impairments, net | Asset impairments, net The following table summarizes the Company's asset impairment activity for the periods presented: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Goodwill impairment (1) $ — $ — $ — $ 10.7 Indefinite-lived intangible asset impairment (1) — — — 83.3 Property and equipment impairment 0.3 1.5 1.5 27.2 Operating lease ROU asset impairment, net (2) 0.4 — 0.5 36.9 Total asset impairments, net $ 0.7 $ 1.5 $ 2.0 $ 158.1 (1) Refer to Note 16 for additional information. (2) The Company recorded $0.8 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets during the 39 weeks ended October 30, 2021. The Company recorded $0.9 million and $3.2 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets during the 13 and 39 weeks ended October 31, 2020, respectively. Long-lived assets of the Company consist primarily of property and equipment, definite-lived intangible assets and operating lease right-of-use (“ROU”) assets. Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the undiscounted cash flows of individual stores or other asset groups. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset group, based on the Company’s internal business plans. If the undiscounted cash flow for the asset group is less than its carrying amount, the long-lived assets are measured for potential impairment by estimating the fair value of the asset group, and recording an impairment loss for the amount that the carrying value exceeds the estimated fair value. The Company utilizes primarily the replacement cost method to estimate the fair value of its property and equipment, and the income capitalization method to estimate the fair value of its ROU assets, which incorporates historical store level sales, internal business plans, real estate market capitalization and rental rates, and discount rates. Fiscal 2021 Due to the various impacts of COVID-19 to the Company’s business during the 13 weeks ended May 2, 2020, including the temporary closure of all the Company’s stores beginning in late March 2020, the Company determined triggering events had occurred for certain of the Company’s long-lived asset groups at the individual stores that required an interim impairment assessment during the first quarter of Fiscal 2021. This impacted property, plant and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the recoverability test, a fair value assessment for these long-lived assets was performed, and as a result of the estimated fair values, the Company recorded an impairment charge for property, plant and equipment of $13.8 million and ROU assets of $28.5 million, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets of $1.0 million. During the 13 weeks ended August 1, 2020, the Company completed its quarterly trigger event assessment and determined that a triggering event had occurred for certain additional long-lived asset groups at the individual stores based on real estate assessments (including store closure decisions) and the continued uncertainty related to COVID-19 on forecasted cash flows for the remaining lease period for certain stores. These events required an interim impairment assessment during the second quarter of Fiscal 2021 for the identified store assets. This impacted both property, plant and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the recoverability test, a fair value assessment for these long-lived assets was performed, and as a result of the estimated fair values, the Company recorded impairment charges for property, plant and equipment of $11.9 million and ROU assets of $8.4 million, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets of $1.3 million. During the 13 weeks ended October 31, 2020, the Company completed its quarterly trigger event assessment and determined that a triggering event had occurred for certain additional long-lived asset groups at the individual stores based on real estate assessments (including store closure decisions) and the continued uncertainty related to COVID-19 on forecasted cash flows for the remaining lease period for certain stores. These events required an interim impairment assessment during the third quarter of Fiscal 2021 for the identified store assets. This impacted property and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the recoverability test, a fair value assessment for these long-lived assets was performed, and as a result of the estimated fair values, the Company recorded impairment charges for property and equipment of $1.5 million and ROU assets of $0.0 million, which is net of $0.9 million gains on terminations or modifications of leases resulting from previously recorded impairments of the right of use assets for the 13 weeks ended October 31, 2020. Fiscal 2022 During Fiscal 2022, the Company completed its quarterly triggering event assessments and determined that triggering events had occurred for certain long-lived asset groups at individual stores based on real estate assessments (including store closure decisions) and store performance for the remaining lease period for certain stores that required an impairment assessment. This impacted property and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the initial recoverability test, a fair value assessment for these long-lived assets was performed. As a result of the estimated fair values, during the 13 weeks ended October 30, 2021, the Company recorded impairment charges for property and equipment of $0.3 million and ROU assets of $0.4 million. During the 39 weeks ended October 30, 2021 the Company recorded impairment charges for property and equipment of $1.5 million and ROU assets of $0.5 million, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets of $0.8 million. The uncertainty of the COVID-19 impact to the Company’s business could continue to further negatively affect the operating performance and cash flows of the above identified stores or additional stores, including the magnitude and potential resurgence of COVID-19 (including variants), occupancy restrictions in the Company’s stores, the inability to achieve or maintain cost savings initiatives included in the business plans, changes in real estate strategy or macroeconomic factors which influence consumer behavior. In addition, key assumptions used to estimate fair value, such as sales trends, capitalization and market rental rates, and discount rates could impact the fair value estimates of the store-level assets in future periods. |
Leases
Leases | 9 Months Ended |
Oct. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company deferred substantially all of its rent payments due in the months of April 2020 and May 2020. As of October 30, 2021, the Company had approximately $28 million of deferred rent payments remaining primarily in the UK. This remaining deferred rent is expected to be substantially repaid by the first half of Fiscal 2023. The Company has not recorded any provision for interest or penalties which may arise as a result of these deferrals, as management does not believe payment for any such interest or penalties to be probable. In April 2020, the FASB granted guidance (hereinafter, the practical expedient) permitting an entity to choose to forgo the evaluation of the enforceable rights and obligations of the original lease contract, specifically in situations where rent concessions have been agreed to with landlords as a result of COVID-19. Instead, the entity may account for COVID-19 related rent concessions, whatever their form (e.g. rent deferral, abatement or other) either: a) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or b) as lease modifications. In accordance with this practical expedient, the Company elected not to account for any concessions granted by landlords as a result of COVID-19 as lease modifications. Rent abatements under the practical expedient would be recorded as a negative variable lease cost. The Company negotiated with substantially all of its landlords and has received certain concessions in the form of rent deferrals and other lease or rent modifications. In addition, the Company recorded lease expense during the deferral periods in accordance with its existing policies. Total lease costs consist of the following: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Operating lease cost $ 107.0 $ 108.9 $ 322.0 $ 325.8 Short-term lease cost 1.8 2.1 8.2 12.8 Variable lease cost 26.0 27.8 87.5 79.7 Sublease income (0.5) (0.5) (1.7) (1.3) Total lease cost $ 134.3 $ 138.3 $ 416.0 $ 417.0 |
Goodwill and intangibles
Goodwill and intangibles | 9 Months Ended |
Oct. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangibles | Goodwill and intangiblesGoodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually. Additionally, if events or conditions indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may be greater than its fair value, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. When the carrying amount of the reporting unit or other intangible assets exceeds its fair value, an impairment charge is recorded. Fiscal 2021 Due to various impacts of COVID-19 to the Company’s business during the 13 weeks ended May 2, 2020, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite-lived intangible assets. As part of the assessment, it was determined that an increase in the discount rates was required to reflect the prevailing uncertainty inherent in the forecasts due to current market conditions and potential COVID-19 impacts. This higher discount rate, in conjunction with revised long-term projections associated with certain aspects of the Company’s forecast, resulted in lower than previously projected long-term future cash flows for the reporting units and indefinite-lived intangible assets which negatively affected the valuation compared to previous valuations. As a result of the interim impairment assessment, during the first quarter of Fiscal 2021 the Company recognized pre-tax impairment charges related to goodwill of $10.7 million in the condensed consolidated statements of operations within its North America segment related to R2Net and Zales Canada goodwill. In conjunction with the interim goodwill impairment tests noted above, during the first quarter of Fiscal 2021 the Company determined that the fair values of indefinite-lived intangible assets related to certain Zales trade names were less than their carrying value. Accordingly, in the first quarter of Fiscal 2021, the Company recognized pre-tax impairment charges within asset impairments, net on the condensed consolidated statements of operations of $83.3 million within its North America segment. During the second quarter of Fiscal 2021, the Company completed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names identified in the Zale acquisition, and through this assessment, the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values. Additionally, the Company completed its quarterly trigger event assessment and determined that no triggering event had occurred during the second quarter of Fiscal 2021 requiring interim impairment assessments for its remaining reporting units with goodwill and indefinite-lived intangible assets. Based on management’s trigger event assessment during the 13 weeks ended October 31, 2020, the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceed their fair values. Fiscal 2022 During the 13 weeks ended May 1, 2021, the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceed their fair values. In connection with the acquisition of Rocksbox on March 29, 2021, the Company recognized $11.6 million of definite-lived intangible assets and $7.0 million of goodwill, which are reported in the North America segment. The weighted-average amortization period of the definite-lived intangibles assets acquired is eight years. In the second quarter of Fiscal 2022, the annual testing date of R2Net was changed from the last day of the fiscal year to the last day of the fourth period of each fiscal year. R2Net represents a reporting unit within the Company’s North America reportable segment. The new impairment testing date is preferable, as this date corresponds with the testing date for all other North America reporting units. This will allow information and assumptions to be applied consistently to all reporting units. During the 13 weeks ended July 31, 2021, the Company completed its annual evaluation of its indefinite-lived intangible assets, including goodwill and indefinite-lived trade names identified in the Zale, R2Net and Rocksbox acquisitions, and through the qualitative assessment the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values. Additionally, the Company completed its quarterly triggering event assessment and determined that no triggering events had occurred in the second quarter of Fiscal 2022 requiring interim impairment assessment for all reporting units with goodwill and indefinite-lived intangible assets. During the 13 weeks ended October 30, 2021, the Company completed its quarterly triggering event assessment and determined that no triggering events had occurred in the third quarter of Fiscal 2022 requiring interim impairment assessment for all reporting units with goodwill and indefinite-lived intangible assets. Goodwill The following table summarizes the Company’s goodwill by reportable segment: (in millions) North America Balance at January 30, 2021 (1) $ 238.0 Acquisitions 7.0 Balance at October 30, 2021 (1) $ 245.0 (1) The carrying amount of goodwill is presented net of accumulated impairment losses of $576.0 million as of October 30, 2021 and January 30, 2021. Intangibles Definite-lived intangible assets include trade names, technology and customer relationship assets. Indefinite-lived intangible assets consist of trade names. Both definite and indefinite-lived assets are recorded within intangible assets, net, on the condensed consolidated balance sheets. Intangible liabilities, net, consists of unfavorable contracts and is recorded within accrued expenses and other current liabilities and other liabilities on the condensed consolidated balance sheets. The following table provides additional detail regarding the composition of intangible assets and liabilities: October 30, 2021 January 30, 2021 October 31, 2020 (in millions) Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Intangible assets, net: Definite-lived intangible assets $ 15.8 $ (4.6) $ 11.2 $ 5.6 $ (4.2) $ 1.4 $ 5.6 $ (4.0) $ 1.6 Indefinite-lived intangible assets (1) 178.0 — 178.0 177.6 — 177.6 177.2 — 177.2 Total intangible assets, net $ 193.8 $ (4.6) $ 189.2 $ 183.2 $ (4.2) $ 179.0 $ 182.8 $ (4.0) $ 178.8 Intangible liabilities, net $ (38.0) $ 30.5 $ (7.5) $ (38.0) $ 27.5 $ (10.5) $ (38.0) $ 26.2 $ (11.8) (1) The change in the indefinite-lived intangible asset balances during the periods presented was due to the impact of foreign currency translation. |
Derivatives
Derivatives | 9 Months Ended |
Oct. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of financing. The main risks arising from Signet’s operations are market risk including foreign currency risk, commodity risk, liquidity risk and interest rate risk. Signet uses derivative financial instruments to manage and mitigate certain of these risks under policies reviewed and approved by the Board. Signet does not enter into derivative transactions for speculative purposes. Market risk Signet generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of the International segment purchases and purchases made by the Canadian operations of the North America segment are denominated in US dollars, Signet enters into forward foreign currency exchange contracts and foreign currency swaps to manage this exposure to the US dollar. Signet holds a fluctuating amount of British pounds and Canadian dollars reflecting the cash generative characteristics of operations. Signet’s objective is to minimize net foreign exchange exposure to the condensed consolidated statements of operations on non-US dollar denominated items through managing cash levels, non-US dollar denominated intra-entity balances and foreign currency swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in British pounds and Canadian dollars, dividends are paid regularly by subsidiaries to their immediate holding companies and excess British pounds and Canadian dollars are sold in exchange for US dollars. Signet’s policy is to reduce the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the Board. In particular, Signet undertakes some hedging of its requirements for gold through the use of forward purchase contracts, options and net zero premium collar arrangements (a combination of forwards and option contracts). Liquidity risk Signet’s objective is to ensure that it has access to, or the ability to generate, sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board. Cash generated from operations and external financing are the main sources of funding, which supplement Signet’s resources in meeting liquidity requirements. The primary external sources of funding are an asset-based credit facility and senior unsecured notes as described in Note 19. Interest rate risk Signet has exposure to movements in interest rates associated with cash and borrowings. Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates. Credit risk and concentrations of credit risk Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however, it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. As of October 30, 2021, management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable. Commodity and foreign currency risks The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates: Forward foreign currency exchange contracts (designated) — These contracts, which are principally in US dollars, are entered into to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. These contracts were de-designated during the 13 weeks ended May 2, 2020. This de-designation occurred due to uncertainly around the volume of purchases in the Company’s UK business. These contracts were unlikely to retain hedge effectiveness given the change in circumstances as a result of COVID-19. Trading for these contracts resumed during the third quarter of Fiscal 2021. The total notional amount of these foreign currency contracts outstanding as of October 30, 2021 was $19.4 million (January 30, 2021 and October 31, 2020: $12.5 million and $13.5 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (January 30, 2021 and October 31, 2020: 12 months). Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to limit the impact of movements in foreign exchange rates on recognized foreign currency payables and to hedge currency flows through Signet’s bank accounts to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of October 30, 2021 was $96.0 million (January 30, 2021 and October 31, 2020: $107.6 million and $51.3 million, respectively). Commodity forward purchase contracts and net zero premium collar arrangements (designated) — These contracts are entered into to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw materials. During the 13 weeks ended May 2, 2020, the contracts which were still outstanding (and unrealized) were de-designated and liquidated. The contracts which were already settled remained designated as the hedged inventory purchases from these contracts were still on hand. The unrealized contracts were de-designated as a result of uncertainty around the Company’s future purchasing volume due to COVID-19 and thus the contracts were unlikely to retain hedge effectiveness. Trading for these contracts resumed during the third quarter of Fiscal 2021. Trading for these contracts was suspended during Fiscal 2022 due to the current commodity price environment and there was no material notional amount of these commodity derivative contracts outstanding as of October 30, 2021 and January 30, 2021 (October 31, 2020; 11,000 ounces). The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of October 30, 2021, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts. The following table summarizes the fair value and presentation of derivative instruments in the condensed consolidated balance sheets: Fair value of derivative assets (in millions) Balance sheet location October 30, 2021 January 30, 2021 October 31, 2020 Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 0.1 $ — $ — Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets — 0.1 — Total derivative assets $ 0.1 $ 0.1 $ — Fair value of derivative liabilities (in millions) Balance sheet location October 30, 2021 January 30, 2021 October 31, 2020 Derivatives designated as hedging instruments: Foreign currency contracts Other current liabilities $ — $ (0.3) $ — Commodity contracts Other current liabilities — (0.1) — — (0.4) — Derivatives not designated as hedging instruments: Foreign currency contracts Other current liabilities (0.5) — (0.5) Total derivative liabilities $ (0.5) $ (0.4) $ (0.5) Derivatives designated as cash flow hedges The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Foreign currency contracts $ (0.1) $ (0.7) $ — Commodity contracts (0.2) (0.4) 3.5 Gains (losses) recorded in AOCI $ (0.3) $ (1.1) $ 3.5 The following tables summarize the effect of derivative instruments designated as cash flow hedges on OCI and the condensed consolidated statements of operations: Foreign currency contracts 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Gains (losses) recorded in AOCI, beginning of period $ (0.6) $ — $ (0.7) $ (1.0) Current period gains (losses) recognized in OCI 0.4 — 0.2 1.6 Losses (gains) reclassified from AOCI to net income Cost of sales (1) 0.1 — 0.4 — Gains from de-designated hedges reclassified from AOCI to net income Other operating income, net (1) — — — (0.6) Gains (losses) recorded in AOCI, end of period $ (0.1) $ — $ (0.1) $ — Commodity contracts 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Gains (losses) recorded in AOCI, beginning of period $ (0.2) $ 5.3 $ (0.4) $ 17.7 Current period gains (losses) recognized in OCI — — — (1.4) Losses (gains) reclassified from AOCI to net income Cost of sales (1) — (1.8) 0.2 (3.5) Gains from de-designated hedges reclassified from AOCI to net income Other operating income, net (1) — — — (9.3) Gains (losses) recorded in AOCI, end of period $ (0.2) $ 3.5 $ (0.2) $ 3.5 (1) Refer to the condensed consolidated statements of operations for total amounts of each financial statement caption impacted by cash flow hedges. There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the 39 weeks ended October 30, 2021 and October 31, 2020 other than the items disclosed above during the 13 weeks ended May 2, 2020. As of October 30, 2021, based on current valuations, the Company expects approximately $0.3 million of net pre-tax derivative losses to be reclassified out of AOCI into earnings within the next 12 months. Derivatives not designated as hedging instruments The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the condensed consolidated statements of operations: 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Foreign currency contracts Other operating income, net $ (1.3) $ (1.1) $ (0.4) $ (2.1) |
Fair value measurement
Fair value measurement | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories: Level 1—quoted market prices in active markets for identical assets and liabilities Level 2—observable market based inputs or unobservable inputs that are corroborated by market data Level 3—unobservable inputs that are not corroborated by market data Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: October 30, 2021 January 30, 2021 October 31, 2020 (in millions) Carrying Value Level 1 Level 2 Carrying Value Level 1 Level 2 Carrying Value Level 1 Level 2 Assets: US Treasury securities $ 5.1 $ 5.1 $ — $ 5.7 $ 5.7 $ — $ 6.3 $ 6.3 $ — Foreign currency contracts 0.1 — 0.1 0.1 — 0.1 — — — US government agency securities 2.0 — 2.0 3.2 — 3.2 3.7 — 3.7 Corporate bonds and notes 5.9 — 5.9 6.5 — 6.5 7.3 — 7.3 Total assets $ 13.1 $ 5.1 $ 8.0 $ 15.5 $ 5.7 $ 9.8 $ 17.3 $ 6.3 $ 11.0 Liabilities: Foreign currency contracts $ (0.5) $ — $ (0.5) $ (0.3) $ — $ (0.3) $ (0.5) $ — $ (0.5) Commodity contracts — — — (0.1) — (0.1) — — — Total liabilities $ (0.5) $ — $ (0.5) $ (0.4) $ — $ (0.4) $ (0.5) $ — $ (0.5) Investments in US Treasury securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. Investments in US government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as Level 2 measurements in the fair value hierarchy. The fair value of derivative financial instruments has been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 17 for additional information related to the Company’s derivatives. During Fiscal 2019, the Company completed the sale of all eligible non-prime in-house accounts receivable. Upon closing, 5% of the purchase price was deferred until the second anniversary of the closing date. Final payment of the deferred purchase price was contingent upon the non-prime portfolio achieving a pre-defined yield. The Company recorded an asset at the transaction date related to this deferred payment at fair value. This estimated fair value was derived from a discounted cash flow model using unobservable Level 3 inputs, including estimated yields derived from historic performance, loss rates, payment rates and discount rates to estimate the fair value associated with the accounts receivable. The measurement period was completed in June 2020 and the Company received the full deferred payment of $23.5 million during the second quarter of Fiscal 2022, as further described in Note 11. During the 13 weeks ended May 2, 2020, the Company performed an interim impairment test for goodwill and indefinite-lived intangible assets. The fair value was calculated using the income approach for the reporting units and the relief from royalty method for the indefinite-lived intangible assets, respectively. The fair value is a Level 3 valuation based on certain unobservable inputs, including estimated future cash flows and discount rates aligned with market-based assumptions, that would be utilized by market participants in valuing these assets or prices of similar assets. In addition, for long-lived assets, the Company performed an impairment test for certain store level assets during Fiscal 2021 and Fiscal 2022. The Company utilizes primarily the replacement cost method (a level 3 valuation method) for the fair value of its property and equipment, and the income method to estimate the fair value of its ROU assets, which incorporates Level 3 inputs such as historical store level sales, internal business plans, real estate market capitalization and rental rates, and discount rates. See Note 14 and Note 16 for additional information. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued expenses and other current liabilities, and income taxes approximate fair value because of the short-term maturity of these amounts. The fair values of long-term debt instruments, excluding revolving credit facilities, were determined using quoted market prices in inactive markets based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. The carrying value of the ABL Revolving Facility (as defined in Note 19) approximates fair value based on the nature of the instrument and variable interest rate, which are primarily Level 2 inputs. The following table provides a summary of the carrying amount and fair value of outstanding debt: October 30, 2021 January 30, 2021 October 31, 2020 (in millions) Carrying Fair Value Carrying Fair Value Carrying Fair Value Long-term debt: Senior notes (Level 2) $ 147.0 $ 151.2 $ 146.7 $ 145.1 $ 146.7 $ 130.8 Term loans (Level 2) — — — — 99.5 100.0 Total $ 147.0 $ 151.2 $ 146.7 $ 145.1 $ 246.2 $ 230.8 |
Loans, overdrafts and long-term
Loans, overdrafts and long-term debt | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Loans, overdrafts and long-term debt | Loans, overdrafts and long-term debt (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Debt: Senior unsecured notes due 2024, net of unamortized discount $ 147.6 $ 147.6 $ 147.6 ABL revolving facility — — 790.0 FILO term loan facility — — 100.0 Other loans and bank overdrafts 0.3 — 3.6 Gross debt $ 147.9 $ 147.6 $ 1,041.2 Less: Current portion of loans and overdrafts (0.3) — (3.6) Less: Unamortized debt issuance costs (0.6) (0.9) (1.4) Total long-term debt $ 147.0 $ 146.7 $ 1,036.2 Senior unsecured notes due 2024 On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.70% senior unsecured notes due in 2024 (the “Senior Notes”). The Senior Notes were issued under an effective registration statement previously filed with the SEC. The Senior Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). On September 5, 2019, Signet UK Finance announced the commencement of a tender offer to purchase any and all of its outstanding Senior Notes (the “Tender Offer”). Upon receipt of the requisite consents from Senior Note holders, Signet UK Finance entered into a supplemental indenture which eliminated most of the restrictive covenants and certain default provisions of the indenture. The supplemental indenture became operative on September 27, 2019 upon the Company’s acceptance and payment for the Senior Notes previously validly tendered and not validly withdrawn pursuant to the Tender Offer for an aggregate principal amount of $239.6 million, which represented a purchase price of $950.00 per $1,000.00 in principal amount of the Senior Notes validly tendered. Unamortized debt issuance costs relating to the Senior Notes as of October 30, 2021 was $0.6 million (January 30, 2021 and October 31, 2020: $0.9 million and $0.9 million, respectively). The unamortized debt issuance costs are recorded as a direct deduction from the outstanding liability within the condensed consolidated balance sheets. Amortization relating to debt issuance costs of $0.1 million and $0.3 million was recorded as interest expense in the condensed consolidated statements of operations for the 13 and 39 weeks ended October 30, 2021, respectively ($0.1 million and $0.2 million for the 13 and 39 weeks ended October 31, 2020, respectively). Asset-based credit facility On September 27, 2019, the Company entered into a senior secured asset-based credit facility consisting of (i) a revolving credit facility in an aggregate committed amount of $1.5 billion (as amended to the date hereto, the “ABL Revolving Facility”) and (ii) a first-in last-out term loan facility in an aggregate principal amount of $100.0 million (the “FILO Term Loan Facility” and, together with the ABL Revolving Facility, the “ABL Facility”) pursuant to that certain Credit Agreement. On July 28, 2021, the Company entered into the Second Amendment to the Credit Agreement (the “Second Amendment”) to amend the ABL Facility. The Second Amendment extends the maturity of the ABL Facility from September 27, 2024 to July 28, 2026 and allows the Company to increase the size of the ABL Facility by up to $600 million. The Company incurred additional debt issuance costs of $3.9 million related to the modification of the ABL Facility during the second quarter of Fiscal 2022. Revolving loans under the ABL Revolving Facility are available in an aggregate amount equal to the lesser of the aggregate ABL revolving commitments and a borrowing base determined based on the value of certain inventory and credit card receivables, subject to specified advance rates and reserves. Indebtedness under the ABL Facility is secured by substantially all of the assets of the Company and its subsidiaries, subject to customary exceptions. Borrowings under the ABL Revolving Facility bear interest at the Company’s option at either eurocurrency rate plus the applicable margin or a base rate plus the applicable margin, in each case depending on the excess availability under the ABL Revolving Facility. The Company had stand-by letters of credit outstanding of $18.8 million on the ABL Revolving Facility as of October 30, 2021. The Company had available borrowing capacity of $1.2 billion on the ABL Revolving Facility as of October 30, 2021. As a result of the risks and uncertainties associated with the potential impacts of COVID-19 on the Company’s business, as a prudent measure to increase the Company’s financial flexibility and bolster its cash position, the Company borrowed an additional $900 million on the ABL Revolving Facility during the first quarter of Fiscal 2021. The Company made ABL Revolving Facility repayments during the third and fourth quarter of Fiscal 2021 and the outstanding amount borrowed under ABL Revolving Facility was fully paid down by the end of Fiscal 2021. During the fourth quarter of Fiscal 2021, the Company fully repaid the FILO Term Loan Facility. If the excess availability under the ABL Revolving Facility falls below the threshold specified in the ABL Facility agreement, the Company will be required to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00. As of October 30, 2021, the threshold related to the fixed coverage ratio was approximately $126 million. The ABL Facility places certain restrictions upon the Company’s ability to, among other things, incur additional indebtedness, pay dividends, grant liens and make certain loans, investments and divestitures. The ABL Facility contains customary events of default (including payment defaults, cross-defaults to certain of the Company’s other indebtedness, breach of representations and covenants and change of control). The occurrence of an event of default under the ABL Facility would permit the lenders to accelerate the indebtedness and terminate the ABL Facility. Debt issuance costs relating to the ABL Revolving Facility totaled $12.6 million. The remaining unamortized debt issuance costs are recorded within other assets in the condensed consolidated balance sheets. Amortization relating to the debt issuance costs of $0.5 million and $1.6 million was recorded as interest expense in the condensed consolidated statements of operations for the 13 and 39 weeks ended October 30, 2021, respectively ($0.4 million and $1.3 million for the 13 and 39 weeks ended October 31, 2020, respectively). Unamortized debt issuance costs related to the ABL Revolving Facility totaled $8.7 million as of October 30, 2021 (January 30, 2021 and October 31, 2020: $6.4 million and $6.8 million, respectively). |
Warranty reserve
Warranty reserve | 9 Months Ended |
Oct. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Warranty reserve | Warranty reserve Specific merchandise sold by banners within the North America segment includes a product lifetime diamond or colored gemstone guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six-month inspection policy, the Company will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. Management estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Warranty reserve, beginning of period $ 34.7 $ 37.3 $ 37.3 $ 36.3 Warranty expense 2.6 1.5 4.8 5.5 Utilized (1) (2.6) (2.2) (7.4) (5.2) Warranty reserve, end of period $ 34.7 $ 36.6 $ 34.7 $ 36.6 (1) Includes impact of foreign exchange translation. (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Disclosed as: Current liabilities $ 9.9 $ 10.7 $ 10.6 Non-current liabilities 24.8 26.6 26.0 Total warranty reserve $ 34.7 $ 37.3 $ 36.6 |
Share-based compensation
Share-based compensation | 9 Months Ended |
Oct. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensationSignet recorded share-based compensation expense of $10.9 million and $36.4 million for the 13 and 39 weeks ended October 30, 2021, respectively related to the Omnibus Plan and Share Saving Plans ($3.3 million and $9.6 million for the 13 and 39 weeks ended October 31, 2020, respectively). |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Oct. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal proceedings Employment practices In March 2008, a group of private plaintiffs (the “Claimants”) filed a class and collective action lawsuit for an unspecified amount against SJI, a subsidiary of Signet, in the US District Court for the Southern District of New York alleging that US store-level employment practices are discriminatory as to compensation and promotional activities with respect to gender. In June 2008, the District Court referred the matter to private arbitration where the Claimants sought to proceed on a class-wide basis. The Claimants filed a motion for class certification and SJI opposed the motion. On February 2, 2015, the arbitrator issued a Class Determination Award in which she certified for a class-wide hearing Claimants’ disparate impact declaratory and injunctive relief class claim under Title VII, with a class period of July 22, 2004 through date of trial for the Claimants’ compensation claims and December 7, 2004 through date of trial for Claimants’ promotion claims. The arbitrator otherwise denied Claimants’ motion to certify a disparate treatment class alleged under Title VII, denied a disparate impact monetary damages class alleged under Title VII, and denied an opt-out monetary damages class under the Equal Pay Act. On February 9, 2015, Claimants filed an Emergency Motion To Restrict Communications With The Certified Class And For Corrective Notice. SJI filed its opposition to Claimants’ emergency motion on February 17, 2015, and a hearing was held on February 18, 2015. Claimants’ motion was granted in part and denied in part in an order issued on March 16, 2015. Claimants filed a Motion for Reconsideration Regarding Title VII Claims for Disparate Treatment in Compensation on February 11, 2015, which SJI opposed. April 27, 2015, the arbitrator issued an order denying the Claimants’ Motion. SJI filed with the US District Court for the Southern District of New York a Motion to Vacate the Arbitrator’s Class Certification Award on March 3, 2015, which Claimants opposed. On November 16, 2015, the US District Court for the Southern District of New York granted SJI’s Motion to Vacate the Arbitrator’s Class Certification Award in part and denied it in part. On December 3, 2015, SJI filed with the US Court of Appeals for the Second Circuit SJI’s Notice of Appeal of the District Court’s November 16, 2015 Opinion and Order. On November 25, 2015, SJI filed a Motion to Stay the AAA Proceedings while SJI appealed the decision of the US District Court for the Southern District of New York to the US Court of Appeals for the Second Circuit, which Claimants opposed. The arbitrator issued an order denying SJI’s Motion to Stay on February 22, 2016. SJI filed its Brief and Special Appendix with the Second Circuit on March 16, 2016. The matter was fully briefed, and oral argument was heard by the US Court of Appeals for the Second Circuit on November 2, 2016. On April 6, 2015, Claimants filed in the AAA Claimants’ Motion for Clarification or in the Alternative Motion for Stay of the Effect of the Class Certification Award as to the Individual Intentional Discrimination Claims, which SJI opposed. On June 15, 2015, the arbitrator granted the Claimants’ motion. On March 6, 2017, Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice, which SJI opposed The arbitrator heard oral argument on Claimants’ Motion on December 18, 2015 and, on February 29, 2016, issued an Equal Pay Act Collective Action Conditional Certification Award and Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, conditionally certifying Claimants’ Equal Pay Act claims as a collective action, and tolling the statute of limitations on EPA claims to October 16, 2003 to ninety days after notice issued to the putative members of the collective action. SJI filed in the AAA a Motion To Stay Arbitration Pending The District Court’s Consideration Of Respondent’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 10, 2016. SJI filed in the AAA a Renewed Motion To Stay Arbitration Pending The District Court’s Resolution Of Sterling’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 31, 2016, which Claimants opposed. On April 5, 2016, the arbitrator denied SJI’s Motion. On March 23, 2016 SJI filed with the US District Court for the Southern District of New York a Motion To Vacate The Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, which Claimants opposed. SJI’s Motion was denied on May 22, 2016. On May 31, 2016, SJI filed a Notice Of Appeal of Judge Rakoff’s opinion and order to the Second Circuit Court of Appeals, which Claimant’s opposed. On June 1, 2017, the Second Circuit Court of Appeals dismissed SJI’s appeal for lack of appellate jurisdiction. Claimants filed a Motion For Amended Class Determination Award on November 18, 2015, and on March 31, 2016 the arbitrator entered an order amending the Title VII class certification award to preclude class members from requesting exclusion from the injunctive and declaratory relief class certified in the arbitration. The arbitrator issued a Bifurcated Case Management Plan on April 5, 2016 and ordered into effect the parties’ Stipulation Regarding Notice Of Equal Pay Act Collective Action And Related Notice Administrative Procedures on April 7, 2016. SJI filed in the AAA a Motion For Protective Order on May 2, 2016, which Claimants opposed. The matter was fully briefed, and oral argument was heard on July 22, 2016. The motion was granted in part on January 27, 2017. Notice to EPA collective action members was issued on May 3, 2016, and the opt-in period for these notice recipients closed on August 1, 2016. Approximately 10,314 current and former employees submitted consent forms to opt in to the collective action; however, some have withdrawn their consents. The number of valid consents is believed to be approximately 9,124. On July 24, 2017, the US Court of Appeals for the Second Circuit issued its unanimous Summary Order that held that the absent class members “never consented” to the Arbitrator determining the permissibility of class arbitration under the agreements, and remanded the matter to the District Court to determine whether the Arbitrator exceeded her authority by certifying the Title VII class that contained absent class members who had not opted in the litigation. On August 7, 2017, SJI filed its Renewed Motion to Vacate the Class Determination Award relative to absent class members with the District Court. The matter was fully briefed, and an oral argument was heard on October 16, 2017. On November 10, 2017, SJI filed in the arbitration motions for summary judgment, and for decertification, of Claimants’ Equal Pay Act and Title VII promotions claims. On January 30, 2018, oral argument on SJI’s motions was heard. On January 26, 2018, SJI filed in the arbitration a Motion to Vacate The Equal Pay Act Collective Action Award And Tolling Order asserting that the Arbitrator exceeded her authority by conditionally certifying the Equal Pay Act claim and allowing the absent claimants to opt-in the litigation. On March 12, 2018, the Arbitrator denied SJI’s Motion to Vacate The Equal Pay Act Collective Action Award and Tolling Order. On March 19, 2018, the Arbitrator issued an Order partially granting SJI’s Motion to Amend the Arbitrator’s November 2, 2017, Bifurcated Seventh Amended Case Management Plan resulting in a continuance of the May 14, 2018 trial date, but did not set a new trial date. On January 15, 2018, District Court granted SJI’s August 17, 2017 Renewed Motion to Vacate the Class Determination Award finding that the Arbitrator exceeded her authority by binding non-parties (absent class members) to the Title VII claim. The District Court further held that the RESOLVE Agreement does not permit class action procedures, thereby, reducing the Claimants in the Title VII matter from 70,000 to potentially 254. Claimants disputed that the number of claimants in the Title VII is 254. On January 18, 2018, the Claimants filed a Notice of Appeal with the US Court of Appeals for the Second Circuit. The appeal was fully briefed and oral argument before the Second Circuit occurred on May 7, 2018. On May 17, 2019, SJI submitted a Rule 28(j) letter to the Second Circuit addressing the effects of the Supreme Court’s ruling in Lamps Plus, Inc. v. Varela, No. 17-988 (S. Ct. Apr. 24, 2019), on the pending appeal. The Second Circuit then issued an order directing the parties to submit additional arguments on that issue, which were submitted. On November 18, 2019 the Second Circuit issued an order reversing and remanding the District Court’s January 15, 2018 Order that vacated the Arbitrator’s Class Determination Award certifying for declaratory and injunctive relief a Title VII pay and promotions class of female retail sales employees. The Second Circuit held that the District Court erred when it concluded that the Arbitrator exceeded her authority in purporting to bind absent class members to the Class Determination Award. The Second Circuit remanded the case to the District Court to decide the narrower question of whether the Arbitrator erred in certifying an opt-out, as opposed to a mandatory, class for declaratory and injunctive relief. On December 2, 2019, SJI filed a petition for a hearing en banc with the US Court of Appeals for the Second Circuit. On January 15, 2020, SJI filed a Rule 28(j) letter in the Second Circuit. On that same day the Second Circuit denied the petition for rehearing en banc. On January 21, 2020, Sterling filed its motion for stay of mandate with the Second Circuit pending the filing of a petition for writ of certiorari with the US Supreme Court. On January 22, 2020, the Second Circuit granted Sterling’s motion for stay of mandate. SJI’s petition for a writ of certiorari from the US Supreme Court was denied on October 5, 2020. On January 27, 2021 the District Court ordered the case remanded to the AAA for further proceedings in arbitration. Subsequently, the arbitrator retired and the parties selected a new arbitrator to oversee the proceedings moving forward. On October 8, 2021, the newly selected arbitrator issued an amended case management plan and scheduled the arbitration hearing to begin on September 5, 2022. At a hearing on November 30, 2021, the arbitrator denied Sterling’s motions to decertify the EPA collective action and the Title VII class promotion claims, and also denied Sterling’s motions for partial summary judgment. SJI denies the allegations of the Claimants and has been defending the case vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated. On May 5, 2017, without any findings of liability or wrongdoing, SJI entered into a Consent Decree with the EEOC settling a previously disclosed lawsuit that alleged that SJI engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees since January 1, 2003. On May 5, 2017 the US District Court for the Western District of New York approved and entered the Consent Decree jointly proposed by the EEOC and SJI, resolving all of the EEOC’s claims against SJI in this litigation for various injunctive relief including but not limited to the appointment of an employment practices expert to review specific policies and practices, a compliance officer to be employed by SJI, as well as obligations relative to training, notices, reporting and record-keeping. The Consent Decree does not require an outside third-party monitor or require any monetary payment. The duration of the Consent Decree was three years and three months, expiring on August 4, 2020. On March 6, 2020, SJI and the EEOC filed their Joint Motion to Approve an Amendment to And Extension of the Term of the Consent Decree, which provides for a limited extension of a few aspects of the Consent Decree terms regarding SJI’s compensation practices, and incorporating its implementation of a new retail team member compensation program into the overall Consent Decree framework. This extension will enable SJI to implement changes to its retail team member compensation strategy and validate that the new program is consistent with the overall purposes of the Consent Decree. On March 11, 2020 the US District Court for the Western District of New York granted the joint motion and entered the parties’ Amendment to And Extension of the Term of the Consent Decree. The term of the amended Consent Decree was extended through November 4, 2021. On October 11, 2021, SJI and the EEOC agreed to a tolling stipulation, which was submitted on October 22, 2021 and entered by the US District Court for the Western District of New York on November 4, 2021, which extended certain deadlines of the Consent Decree until December 4, 2021. SJI and the EEOC are discussing the possibility of an additional extension of the tolling stipulation. Shareholder actions In August 2016, two alleged Company shareholders each filed a putative class action complaint in the US District Court for the Southern District of New York against the Company and its then-current Chief Executive Officer and current Chief Financial Officer (Nos. 16-cv-6728 and 16-cv-6861, the “S.D.N.Y. cases”). In 2017, three other Company shareholders each filed putative class action complaints (Nos. 17-cv-875, 17-cv-923, and 17-cv-9853) which were ultimately consolidated with the S.D.N.Y. cases under case number 16-cv-6728 (the “Consolidated Action”). The Consolidated Action was settled as further described below. The Consolidated Action alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company’s business and earnings by making misleading statements about the Company’s credit portfolio and failing to disclose reports of sexual harassment allegations that were raised by claimants in an ongoing pay and promotion gender discrimination class arbitration. On March 15, 2019, the lead plaintiff moved for appointment of a class representative and class counsel and for certification of a class period of August 29, 2013, through March 13, 2018. On July 10, 2019, the Court granted the motion and certified a class of all persons and entities who purchased or otherwise acquired Signet common stock from August 29, 2013 to May 25, 2017. The Court also appointed a class representative and class counsel. On July 24, 2019, the defendants filed with the US Court of Appeals for the Second Circuit a petition for permission to appeal the District Court’s class certification decision. On March 16, 2020, the Company, all of the other defendant parties to the Consolidated Action, and the lead plaintiff entered into a settlement agreement in the Consolidated Action. The settlement of $240 million provides for the dismissal of the Consolidated Action with prejudice. The settlement agreement also states that the Company and all the other defendants expressly deny any and all allegations of fault, liability, wrongdoing, or damages whatsoever, and that defendants are entering into the settlement solely to eliminate the uncertainty, burden, and expense of further protracted litigation. As a result of the settlement, the Company recorded a charge of $33.2 million during the fourth quarter of Fiscal 2020 in other operating income, net, which includes administration costs of $0.6 million and was recorded net of expected recoveries from the Company’s insurance carriers of $207.4 million. The settlement was fully funded in the second quarter of Fiscal 2021, and the Company contributed approximately $35 million of the $240 million settlement payment, net of insurance proceeds and including the impact of foreign currency. The Court granted final approval of the settlement on July 21, 2020. In 2019, four actions were filed in the US District Court for the Southern District of New York by investment funds that allegedly purchased the Company’s stock (Nos. 19-cv-2757, 19-cv-2758, 19-cv-9916 and 19-cv-9917), and name the Company and its current and former Chief Executive Officers and Chief Financial Officers as defendants. All four complaints allege violations of Sections 10(b), 18, and 20(a) of the Securities Exchange Act of 1934, and common law fraud largely based on the same allegations as the Consolidated Action. Soon thereafter the Court entered orders staying these actions until entry of final judgment in the Consolidated Action. On June 27, 2020, the Company and plaintiffs in the four stayed actions above reached a settlement in principle, which was finalized on July 10, 2020 requiring the Opt-Out Plaintiffs to rejoin the Consolidated Action. The Company recorded a pre-tax charge of $7.5 million, net of expected insurance recovery, during Fiscal 2021 in anticipation of those four settlements. The final amount of the settlement and net charge are dependent upon the amount the Opt-Out Plaintiffs receive as part of the Consolidated Action and is not expected to be materially different than the amounts recorded. The initial portion of the settlement due to the Opt-Out Plaintiffs under the settlement agreement was paid in August 2020. |
Retirement plans
Retirement plans | 9 Months Ended |
Oct. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement plans | Retirement plans On July 29, 2021, Signet Group Limited (“SGL”), a wholly-owned subsidiary of the Company, entered into an agreement (the “Agreement”) with Signet Pension Trustee Limited (the “Trustee”), as trustee of the Signet Group Pension Scheme (the “Pension Scheme”), to facilitate the Trustee entering into a bulk purchase annuity policy ("BPA") securing accrued liabilities under the Pension Scheme with Rothesay Life Plc ("Rothesay") and subsequently, to wind up the Pension Scheme. The BPA will be held by the Trustee as an asset of the Scheme (the "buy-in") in anticipation of Rothesay subsequently (and in accordance with the terms of the BPA) issuing individual annuity contracts to each of the approximately 1,909 Pension Scheme members (or their eligible beneficiaries) ("Transferred Participants") covering their accrued benefits (a full “buy-out”), following which the BPA will terminate and the Trustee will wind up the Pension Scheme (collectively, the “Transactions”). Under the terms of the Agreement, SGL is expected to contribute up to £16.85 million (approximately $23.4 million) (the “Total Expected Contribution”) to the Pension Scheme to enable the Trustee to pay for any and all costs incurred by the Trustee as part of the Transactions, including an initial contribution of £7 million (approximately $9.7 million) (the “Initial Installment”) to enable the Trustee to enter into the BPA with Rothesay. Subsequent installments of the Total Expected Contribution shall be reviewed and agreed by SGL and the Trustee at such times as the Trustee reasonably requires additional monies to be contributed to the Pension Scheme in furtherance of the Transactions. The Initial Installment was paid on August 4, 2021, and the Trustee transferred substantially all Plan assets into the BPA on August 9, 2021. From the point of buy-out, Rothesay shall be liable to pay the insured benefits to the Transferred Participants and shall be responsible for the administration of those benefits. Once all Pension Scheme members (or their eligible beneficiaries) have become Transferred Participants, the Trustee will wind up the Pension Scheme. By irrevocably transferring these obligations to Rothesay, the Company will eliminate its projected benefit obligation under the Pension Scheme. |
Organization and principal ac_2
Organization and principal accounting policies (Policies) | 9 Months Ended |
Oct. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of preparation | Basis of preparation The condensed consolidated financial statements of Signet are prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 filed with the SEC on March 19, 2021. |
Use of estimates | Use of estimates The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and as a result of the above noted risks associated with COVID-19, it is reasonably possible that those estimates will change in the near term and the effect could be material. Estimates and assumptions are primarily made in relation to the valuation of inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, leases, asset impairments for goodwill, indefinite-lived intangible and long-lived assets and the depreciation and amortization of long-lived assets. |
Fiscal year | Fiscal year The Company’s fiscal year ends on the Saturday nearest to January 31 st . Fiscal 2022 and Fiscal 2021 refer to the 52 week periods ending January 29, 2022 and ended January 30, 2021, respectively. Within these condensed consolidated financial statements, the third quarter of the relevant fiscal years 2022 and 2021 refer to the 13 weeks ended October 30, 2021 and October 31, 2020, respectively. |
Foreign currency translation | Foreign currency translation The financial position and operating results of certain foreign operations, including certain subsidiaries operating in the UK as part of the International segment and Canada as part of the North America segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying condensed consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included in other operating income, net within the condensed consolidated statements of operations. |
New accounting pronouncements | New accounting pronouncements recently adopted There were no new accounting pronouncements adopted during Fiscal 2022 that have a material impact on the Company’s financial position or results of operations. New accounting pronouncements issued but not yet adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (“Topic 805”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU requires that an acquirer recognize and measure customer contract assets and liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers , as if the acquirer had originated the contracts, rather than under Topic 805. Under prior guidance with Topic 805, a liability for deferred revenue was generally recognized in an acquirer’s financial statements as if it represented a legal obligation. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Revenue recognition (Tables)
Revenue recognition (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | 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 |
Other Assets | 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 |
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. |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment reporting information, by segment | 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Sales: North America segment $ 1,394.2 $ 1,182.7 $ 4,657.9 $ 2,786.8 International segment 120.9 106.9 309.0 232.8 Other segment 22.7 10.7 47.8 20.8 Total sales $ 1,537.8 $ 1,300.3 $ 5,014.7 $ 3,040.4 Operating income (loss): North America segment (1) $ 123.8 $ 52.9 $ 573.1 $ (238.3) International segment (2) 0.2 1.6 (4.0) (52.6) Other segment (3) (0.4) 1.3 (1.4) 0.8 Corporate and unallocated expenses (4) (16.7) (16.1) (66.7) (59.5) Total operating income (loss) 106.9 39.7 501.0 (349.6) Interest expense, net (4.1) (9.1) (12.4) (25.6) Other non-operating expense, net (1.1) — (0.9) 0.3 Income (loss) before income taxes $ 101.7 $ 30.6 $ 487.7 $ (374.9) (1) Operating income (loss) during the 13 and 39 weeks ended October 30, 2021 includes $2.6 million of acquisition-related expenses in connection with the Diamonds Direct acquisition; and $0.7 million and $2.0 million, respectively, of net asset impairments. Operating income (loss) during the 39 weeks ended October 30, 2021 includes: $1.1 million of transaction-related expenses in connection with the Rocksbox acquisition; $1.4 million of gains associated with the sale of customer in-house finance receivables; and $(1.0) million to restructuring expense, primarily related to adjustments to previously recognized restructuring liabilities. See Note 1, Note 5, Note 11 and Note 14 for additional information. Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes: a $2.2 million and $1.6 million charge, respectively, related to inventory charges recorded in conjunction with the Company’s restructuring activities; charges of $0.7 million and $37.3 million, respectively, primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and asset impairment charges of $1.5 million and $136.9 million, respectively. See Note 5, Note 14 and Note 16 for additional information. (2) Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes charges of $3.0 million and $7.6 million, respectively, related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities, and asset impairment charges of $21.2 million during the 39 weeks ended October 31, 2020. S ee Note 5, Note 14 and Note 16 for additional information. (3) Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes a $0.2 million benefit recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities. See Note 5 for additional information. (4) Operating income (loss) during the 13 and 39 weeks ended October 30, 2021 includes $(1.7) million and $(2.3) million, respectively, to restructuring expense, primarily related to adjustments to previously recognized restructuring liabilities. See Note 5 for additional information. Operating income (loss) during the 39 weeks ended October 31, 2020 includes a net charge of $7.5 million related to the settlement of previously disclosed shareholder litigation matters, inclusive of expected insurance proceeds. Operating income (loss) during the 13 and 39 weeks ended October 31, 2020 includes a credit of $0.1 million and net charge of $0.3 million , respectively, primarily related to severance and professional services recorded in conjunction with the Company’s restructuring activities. See Note 5 and Note 21 for additional information. |
Restructuring plans (Tables)
Restructuring plans (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges and other Plan-related costs are classified in the condensed consolidated statements of operations as follows: 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Inventory charges Restructuring charges - cost of sales $ — $ 2.0 $ — $ 1.4 Other Plan related expenses Restructuring charges (1.7) 3.6 (3.3) 45.2 Total Signet Path to Brilliance Plan expenses $ (1.7) $ 5.6 $ (3.3) $ 46.6 The composition of the restructuring charges the Company incurred during the 13 and 39 weeks ended October 30, 2021, as well as the cumulative amount incurred under the Plan through October 30, 2021, were as follows: 13 weeks ended 39 weeks ended Cumulative amount (in millions) October 30, 2021 October 30, 2021 October 30, 2021 Inventory charges $ — $ — $ 72.8 Termination benefits — (1.1) 48.8 Store closure and other costs (1.7) (2.2) 127.7 Total Signet Path to Brilliance Plan expenses $ (1.7) $ (3.3) $ 249.3 |
Schedule of Plan Liabilities | The following table summarizes the activity related to the Plan liabilities for Fiscal 2022: (in millions) Termination benefits Store closure and other costs Consolidated Balance at January 30, 2021 $ 2.1 $ 8.1 $ 10.2 Payments and other adjustments (0.9) (1.7) (2.6) Charged (credited) to expense (1.1) (2.2) (3.3) Balance at October 30, 2021 $ 0.1 $ 4.2 $ 4.3 |
Redeemable preferred shares (Ta
Redeemable preferred shares (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Temporary Equity [Abstract] | |
Redeemable Preferred Shares | (in millions, except conversion rate and conversion price) October 30, 2021 January 30, 2021 October 31, 2020 Conversion rate 12.2297 12.2297 12.2297 Conversion price $ 81.7682 $ 81.7682 $ 81.7682 Potential impact of preferred shares if-converted to common shares 8.0 7.9 7.8 Liquidation preference (1) $ 665.0 $ 656.8 $ 648.7 (1) Includes the stated value of the Preferred Shares plus any declared but unpaid dividends |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Equity [Abstract] | |
Schedule of Dividends | Dividends declared on the common shares during the 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: Fiscal 2022 Fiscal 2021 (in millions, except per share amounts) Dividends Total dividends Dividends Total dividends First quarter $ — $ — $ — $ — Second quarter 0.18 9.5 — — Third quarter (1) 0.18 9.5 — — Total $ 0.36 $ 19.0 $ — $ — (1) Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of October 30, 2021, $9.5 million was recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet reflecting the cash dividends on common shares declared for the third quarter of Fiscal 2022. Dividends declared on the Preferred Shares during the 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: Fiscal 2022 Fiscal 2021 (in millions, except per share amounts) Dividends Total dividends Dividends Total dividends First quarter $ 13.14 $ 8.2 $ 12.50 $ 7.8 Second quarter 13.14 8.2 12.66 7.9 Third quarter (1) 13.14 8.2 12.81 8.0 Total $ 39.42 $ 24.6 $ 37.97 $ 23.7 (1) Signet’s Preferred Shares dividends result in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of October 30, 2021, January 30, 2021, and October 31, 2020, $8.2 million, $8.1 million, and $8.0 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the dividends on the Preferred Shares declared for the third quarter of Fiscal 2022, fourth quarter of Fiscal 2021, and third quarter of Fiscal 2021, respectively. |
Class of Treasury Stock | Common shares repurchased during the 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: 39 weeks ended October 30, 2021 39 weeks ended October 31, 2020 (in millions, except per share amounts Amount authorized Shares repurchased Amount repurchased (1) Average repurchase price per share (1) Shares repurchased Amount repurchased Average repurchase price per share 2017 Program $ 659.4 0.5 $ 41.1 $ 88.04 — $ — N/A |
Earnings (loss) per common sh_2
Earnings (loss) per common share (EPS) (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic | The computation of basic EPS is outlined in the table below: 13 weeks ended 39 weeks ended (in millions, except per share amounts) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator: Net income (loss) attributable to common shareholders $ 83.9 $ 0.9 $ 429.7 $ (294.4) Denominator: Weighted average common shares outstanding 52.9 52.1 52.6 51.9 EPS – basic $ 1.59 $ 0.02 $ 8.17 $ (5.67) |
Schedule of earnings per share, diluted | The computation of diluted EPS is outlined in the table below: 13 weeks ended 39 weeks ended (in millions, except per share amounts) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator: Net income (loss) attributable to common shareholders $ 83.9 $ 0.9 $ 429.7 $ (294.4) Add: Dividends on Preferred Shares 8.7 — 25.9 — Numerator for diluted EPS $ 92.6 $ 0.9 $ 455.6 $ (294.4) Denominator: Basic weighted average common shares outstanding 52.9 52.1 52.6 51.9 Plus: Dilutive effect of share awards 2.8 1.3 2.1 — Plus: Dilutive effect of Preferred Shares 8.0 — 8.0 — Diluted weighted average common shares outstanding 63.7 53.4 62.7 51.9 EPS – diluted $ 1.45 $ 0.02 $ 7.27 $ (5.67) |
Schedule of antidilutive securities excluded from computation of earnings per share | The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Share awards — 0.7 — 1.6 Potential impact of Preferred Shares — 7.8 — 7.7 Total anti-dilutive shares — 8.5 — 9.3 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax: Pension plan (in millions) Foreign Gains (losses) on available-for-sale securities, net Gains (losses) Actuarial Prior Accumulated Balance at January 30, 2021 $ (238.9) $ 0.5 $ (0.9) $ (47.2) $ (4.0) $ (290.5) Other comprehensive income (loss) (“OCI”) before reclassifications 3.1 (0.2) 0.2 (58.9) — (55.8) Amounts reclassified from AOCI to net income — — 0.5 1.1 0.1 1.7 Net current period OCI 3.1 (0.2) 0.7 (57.8) 0.1 (54.1) Balance at October 30, 2021 $ (235.8) $ 0.3 $ (0.2) $ (105.0) $ (3.9) $ (344.6) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified from AOCI to earnings were as follows: Amounts reclassified from AOCI 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Statement of operations caption Losses (gains) on cash flow hedges: Foreign currency contracts $ 0.1 $ — $ 0.4 $ — Cost of sales (see Note 17) Commodity contracts — (1.8) 0.2 (3.5) Cost of sales (see Note 17) Total before income tax 0.1 (1.8) 0.6 (3.5) Losses (gains) on de-designating cash flow hedges: Foreign currency contracts — — — (0.6) Other operating income, net (see Note 17) Commodity contracts — — — (9.3) Other operating income, net (see Note 17) Total before income tax — — — (9.9) Income taxes — (0.1) (0.1) 2.6 Net of tax 0.1 (1.9) 0.5 (10.8) Defined benefit pension plan items: Amortization of unrecognized actuarial losses 1.0 0.1 1.4 0.2 Other non-operating income, net Amortization of unrecognized net prior service costs — 0.4 0.1 0.7 Other non-operating income, net Total before income tax 1.0 0.5 1.5 0.9 Income taxes (0.2) (0.1) (0.3) (0.1) Net of tax 0.8 0.4 1.2 0.8 Total reclassifications, net of tax $ 0.9 $ (1.5) $ 1.7 $ (10.0) |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation Of Effective Tax Rate | 39 weeks ended October 30, 2021 October 31, 2020 Estimated annual effective tax rate before discrete items 22.1 % 19.5 % Discrete items recognized (15.5) % 8.6 % Effective tax rate recognized in statements of operations 6.6 % 28.1 % |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable By Portfolio Segment | The following table presents the components of Signet’s accounts receivable: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Customer in-house finance receivables, net $ — $ 72.0 $ 39.6 Accounts receivable, trade 17.0 11.6 13.2 Accounts receivable, held for sale 2.3 5.1 5.5 Accounts receivable, net $ 19.3 $ 88.7 $ 58.3 |
Financing Receivable Credit Quality Indicators | The following table disaggregates the Company’s customer in-house finance receivables by credit quality: (in millions) January 30, 2021 October 31, 2020 Near Prime $ 46.6 $ 26.4 Subprime 38.9 21.8 Deep Subprime 12.0 6.0 Total at amortized cost $ 97.5 $ 54.2 |
Financing Receivable, Allowance for Credit Loss | The following table is a rollforward of the Company’s allowance for credit losses on customer in-house finance receivables: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Balance at beginning of period $ — $ 7.1 $ 25.5 $ — Provision for credit losses (0.6) 7.5 (1.0) 14.6 Write-offs — — (5.5) — Recoveries 0.6 — 0.6 — Reversal of allowance on receivables sold — — (19.6) — Balance at end of period $ — $ 14.6 $ — $ 14.6 |
Financing Receivable, Past Due | The following table disaggregates the Company’s customer in-house finance receivables by past due status: (in millions) January 30, 2021 October 31, 2020 Current $ 81.3 $ 47.6 1 - 30 days past due 9.1 4.0 31 - 60 days past due 2.6 1.5 61 - 90 days past due 1.7 0.7 Greater than 90 days past due 2.8 0.4 Total at amortized cost $ 97.5 $ 54.2 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The following table summarizes the Company’s inventory by classification: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Raw materials $ 72.6 $ 45.3 $ 84.2 Finished goods 2,075.7 1,987.2 2,089.8 Total inventories $ 2,148.3 $ 2,032.5 $ 2,174.0 |
Asset impairments, net (Tables)
Asset impairments, net (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Schedule of Asset Impairments, Net | The following table summarizes the Company's asset impairment activity for the periods presented: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Goodwill impairment (1) $ — $ — $ — $ 10.7 Indefinite-lived intangible asset impairment (1) — — — 83.3 Property and equipment impairment 0.3 1.5 1.5 27.2 Operating lease ROU asset impairment, net (2) 0.4 — 0.5 36.9 Total asset impairments, net $ 0.7 $ 1.5 $ 2.0 $ 158.1 (1) Refer to Note 16 for additional information. (2) The Company recorded $0.8 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets during the 39 weeks ended October 30, 2021. The Company recorded $0.9 million and $3.2 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets during the 13 and 39 weeks ended October 31, 2020, respectively. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Leases [Abstract] | |
Total Lease Costs For Operating Leases | Total lease costs consist of the following: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Operating lease cost $ 107.0 $ 108.9 $ 322.0 $ 325.8 Short-term lease cost 1.8 2.1 8.2 12.8 Variable lease cost 26.0 27.8 87.5 79.7 Sublease income (0.5) (0.5) (1.7) (1.3) Total lease cost $ 134.3 $ 138.3 $ 416.0 $ 417.0 |
Goodwill and intangibles (Table
Goodwill and intangibles (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reporting Unit | The following table summarizes the Company’s goodwill by reportable segment: (in millions) North America Balance at January 30, 2021 (1) $ 238.0 Acquisitions 7.0 Balance at October 30, 2021 (1) $ 245.0 (1) The carrying amount of goodwill is presented net of accumulated impairment losses of $576.0 million as of October 30, 2021 and January 30, 2021. |
Schedule of Finite-Lived Intangible Assets | The following table provides additional detail regarding the composition of intangible assets and liabilities: October 30, 2021 January 30, 2021 October 31, 2020 (in millions) Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Intangible assets, net: Definite-lived intangible assets $ 15.8 $ (4.6) $ 11.2 $ 5.6 $ (4.2) $ 1.4 $ 5.6 $ (4.0) $ 1.6 Indefinite-lived intangible assets (1) 178.0 — 178.0 177.6 — 177.6 177.2 — 177.2 Total intangible assets, net $ 193.8 $ (4.6) $ 189.2 $ 183.2 $ (4.2) $ 179.0 $ 182.8 $ (4.0) $ 178.8 Intangible liabilities, net $ (38.0) $ 30.5 $ (7.5) $ (38.0) $ 27.5 $ (10.5) $ (38.0) $ 26.2 $ (11.8) (1) The change in the indefinite-lived intangible asset balances during the periods presented was due to the impact of foreign currency translation. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value and presentation of derivative instruments in the condensed consolidated balance sheets: Fair value of derivative assets (in millions) Balance sheet location October 30, 2021 January 30, 2021 October 31, 2020 Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 0.1 $ — $ — Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets — 0.1 — Total derivative assets $ 0.1 $ 0.1 $ — Fair value of derivative liabilities (in millions) Balance sheet location October 30, 2021 January 30, 2021 October 31, 2020 Derivatives designated as hedging instruments: Foreign currency contracts Other current liabilities $ — $ (0.3) $ — Commodity contracts Other current liabilities — (0.1) — — (0.4) — Derivatives not designated as hedging instruments: Foreign currency contracts Other current liabilities (0.5) — (0.5) Total derivative liabilities $ (0.5) $ (0.4) $ (0.5) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships: (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Foreign currency contracts $ (0.1) $ (0.7) $ — Commodity contracts (0.2) (0.4) 3.5 Gains (losses) recorded in AOCI $ (0.3) $ (1.1) $ 3.5 |
Derivative Instruments, Gain (Loss) | The following tables summarize the effect of derivative instruments designated as cash flow hedges on OCI and the condensed consolidated statements of operations: Foreign currency contracts 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Gains (losses) recorded in AOCI, beginning of period $ (0.6) $ — $ (0.7) $ (1.0) Current period gains (losses) recognized in OCI 0.4 — 0.2 1.6 Losses (gains) reclassified from AOCI to net income Cost of sales (1) 0.1 — 0.4 — Gains from de-designated hedges reclassified from AOCI to net income Other operating income, net (1) — — — (0.6) Gains (losses) recorded in AOCI, end of period $ (0.1) $ — $ (0.1) $ — Commodity contracts 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Gains (losses) recorded in AOCI, beginning of period $ (0.2) $ 5.3 $ (0.4) $ 17.7 Current period gains (losses) recognized in OCI — — — (1.4) Losses (gains) reclassified from AOCI to net income Cost of sales (1) — (1.8) 0.2 (3.5) Gains from de-designated hedges reclassified from AOCI to net income Other operating income, net (1) — — — (9.3) Gains (losses) recorded in AOCI, end of period $ (0.2) $ 3.5 $ (0.2) $ 3.5 (1) Refer to the condensed consolidated statements of operations for total amounts of each financial statement caption impacted by cash flow hedges. The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the condensed consolidated statements of operations: 13 weeks ended 39 weeks ended (in millions) Statement of operations caption October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Foreign currency contracts Other operating income, net $ (1.3) $ (1.1) $ (0.4) $ (2.1) |
Fair value measurement (Tables)
Fair value measurement (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: October 30, 2021 January 30, 2021 October 31, 2020 (in millions) Carrying Value Level 1 Level 2 Carrying Value Level 1 Level 2 Carrying Value Level 1 Level 2 Assets: US Treasury securities $ 5.1 $ 5.1 $ — $ 5.7 $ 5.7 $ — $ 6.3 $ 6.3 $ — Foreign currency contracts 0.1 — 0.1 0.1 — 0.1 — — — US government agency securities 2.0 — 2.0 3.2 — 3.2 3.7 — 3.7 Corporate bonds and notes 5.9 — 5.9 6.5 — 6.5 7.3 — 7.3 Total assets $ 13.1 $ 5.1 $ 8.0 $ 15.5 $ 5.7 $ 9.8 $ 17.3 $ 6.3 $ 11.0 Liabilities: Foreign currency contracts $ (0.5) $ — $ (0.5) $ (0.3) $ — $ (0.3) $ (0.5) $ — $ (0.5) Commodity contracts — — — (0.1) — (0.1) — — — Total liabilities $ (0.5) $ — $ (0.5) $ (0.4) $ — $ (0.4) $ (0.5) $ — $ (0.5) |
Schedule of Carrying Values and Estimated Fair Values | The following table provides a summary of the carrying amount and fair value of outstanding debt: October 30, 2021 January 30, 2021 October 31, 2020 (in millions) Carrying Fair Value Carrying Fair Value Carrying Fair Value Long-term debt: Senior notes (Level 2) $ 147.0 $ 151.2 $ 146.7 $ 145.1 $ 146.7 $ 130.8 Term loans (Level 2) — — — — 99.5 100.0 Total $ 147.0 $ 151.2 $ 146.7 $ 145.1 $ 246.2 $ 230.8 |
Loans, overdrafts and long-te_2
Loans, overdrafts and long-term debt (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Loans, Overdrafts and Long-Term Debt | (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Debt: Senior unsecured notes due 2024, net of unamortized discount $ 147.6 $ 147.6 $ 147.6 ABL revolving facility — — 790.0 FILO term loan facility — — 100.0 Other loans and bank overdrafts 0.3 — 3.6 Gross debt $ 147.9 $ 147.6 $ 1,041.2 Less: Current portion of loans and overdrafts (0.3) — (3.6) Less: Unamortized debt issuance costs (0.6) (0.9) (1.4) Total long-term debt $ 147.0 $ 146.7 $ 1,036.2 |
Warranty reserve (Tables)
Warranty reserve (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows: 13 weeks ended 39 weeks ended (in millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Warranty reserve, beginning of period $ 34.7 $ 37.3 $ 37.3 $ 36.3 Warranty expense 2.6 1.5 4.8 5.5 Utilized (1) (2.6) (2.2) (7.4) (5.2) Warranty reserve, end of period $ 34.7 $ 36.6 $ 34.7 $ 36.6 (1) Includes impact of foreign exchange translation. (in millions) October 30, 2021 January 30, 2021 October 31, 2020 Disclosed as: Current liabilities $ 9.9 $ 10.7 $ 10.6 Non-current liabilities 24.8 26.6 26.0 Total warranty reserve $ 34.7 $ 37.3 $ 36.6 |
Organization and principal ac_3
Organization and principal accounting policies - Additional information (Details) $ in Millions | Nov. 17, 2021USD ($) | Mar. 29, 2021USD ($) | Oct. 30, 2021USD ($) | May 01, 2021USD ($) | Oct. 30, 2021USD ($)Reporting_Segment | Oct. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||
Number of reportable segments (segment) | Reporting_Segment | 3 | |||||
Acquisition, net of cash acquired | $ 14.6 | $ 0 | ||||
Reportable segments | North America | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration related costs | 1.1 | |||||
Rocksbox | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition, net of cash acquired | $ 14.6 | |||||
Acquisition and integration related costs | $ 1.1 | |||||
Diamonds Direct USA Inc. | Reportable segments | North America | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration related costs | $ 2.6 | $ 2.6 | ||||
Diamonds Direct USA Inc. | Subsequent Event | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition, net of cash acquired | $ 504.6 | |||||
Percentage of voting interests acquired | 100.00% | |||||
Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Seasonal revenues, fourth quarter sales, percent | 35.00% | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Seasonal revenues, fourth quarter sales, percent | 40.00% |
Revenue recognition - Disaggreg
Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,537.8 | $ 1,300.3 | $ 5,014.7 | $ 3,040.4 |
Bridal | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 698.2 | 612.5 | 2,211.3 | 1,400.6 |
Fashion | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 547.9 | 420.2 | 1,920.4 | 1,037.9 |
Watches | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 92.7 | 67 | 256.4 | 155.2 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 199 | 200.6 | 626.6 | 446.7 |
Store | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,242 | 1,050.8 | 4,011.3 | 2,346 |
Kay | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 573.4 | 490.5 | 1,923.8 | 1,149 |
Zales | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 291.9 | 251.4 | 1,030 | 618.8 |
Jared | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 277.1 | 232.7 | 873.1 | 546.6 |
Piercing Pagoda | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 111.4 | 93.7 | 399 | 204.4 |
James Allen | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 90.4 | 76.6 | 300.7 | 184.7 |
Peoples | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 45.9 | 37.8 | 121.9 | 83.3 |
International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 120.9 | 106.9 | 309 | 232.8 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 26.8 | 10.7 | 57.2 | 20.8 |
E-commerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 273.1 | 238.8 | 955.6 | 673.6 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 22.7 | 10.7 | 47.8 | 20.8 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,394.2 | 1,182.7 | 4,657.9 | 2,786.8 |
North America | Bridal | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 640.9 | 564.5 | 2,064.5 | 1,295.7 |
North America | Fashion | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 524.6 | 400.7 | 1,866.7 | 993.1 |
North America | Watches | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 48.7 | 33.6 | 154.2 | 81.9 |
North America | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 180 | 183.9 | 572.5 | 416.1 |
North America | Store | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,142.6 | 963.7 | 3,775.5 | 2,170.2 |
North America | Kay | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 573.4 | 490.5 | 1,923.8 | 1,149 |
North America | Zales | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 291.9 | 251.4 | 1,030 | 618.8 |
North America | Jared | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 277.1 | 232.7 | 873.1 | 546.6 |
North America | Piercing Pagoda | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 111.4 | 93.7 | 399 | 204.4 |
North America | James Allen | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 90.4 | 76.6 | 300.7 | 184.7 |
North America | Peoples | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 45.9 | 37.8 | 121.9 | 83.3 |
North America | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | |
North America | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 4.1 | 0 | 9.4 | |
North America | E-commerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 251.6 | 219 | 882.4 | 616.6 |
North America | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 120.9 | 106.9 | 309 | 232.8 |
International segment | Bridal | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 57.3 | 48 | 146.8 | 104.9 |
International segment | Fashion | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 23.3 | 19.5 | 53.7 | 44.8 |
International segment | Watches | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 44 | 33.4 | 102.2 | 73.3 |
International segment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | (3.7) | 6 | 6.3 | 9.8 |
International segment | Store | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 99.4 | 87.1 | 235.8 | 175.8 |
International segment | Kay | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | Zales | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | Jared | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | Piercing Pagoda | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | James Allen | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | Peoples | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 120.9 | 106.9 | 309 | 232.8 |
International segment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
International segment | E-commerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 21.5 | 19.8 | 73.2 | 57 |
International segment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 22.7 | 10.7 | 47.8 | 20.8 |
Other | Bridal | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Fashion | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Watches | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 22.7 | 10.7 | 47.8 | 20.8 |
Other | Store | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Kay | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Zales | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Jared | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Piercing Pagoda | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | James Allen | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Peoples | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 22.7 | 10.7 | 47.8 | 20.8 |
Other | E-commerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 22.7 | $ 10.7 | $ 47.8 | $ 20.8 |
Revenue recognition - Unamortiz
Revenue recognition - Unamortized Deferred Selling Costs (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Other current assets | $ 25.2 | $ 26.2 | $ 24 |
Other assets | 87.2 | 85.1 | 81.7 |
Total deferred selling costs | $ 112.4 | $ 111.3 | $ 105.7 |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Extended Service Plans and Lifetime Warranty Agreements | ||||
Disaggregation of Revenue [Line Items] | ||||
Capitalized contract cost, amortization | $ 12.4 | $ 8.5 | $ 29.4 | $ 16 |
Revenue recognition - ESP and V
Revenue recognition - ESP and Voucher Promotions (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jul. 31, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Feb. 01, 2020 |
Disaggregation of Revenue [Line Items] | ||||||
Total deferred revenue | $ 1,120.2 | $ 1,072 | $ 1,022.8 | |||
Current liabilities | 307 | 288.7 | 258.5 | |||
Non-current liabilities | 813.2 | 783.3 | 764.3 | |||
ESP deferred revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total deferred revenue | 1,066.3 | $ 1,063.8 | 1,028.9 | 983.2 | $ 990.5 | $ 960 |
Customer and eCommerce Orders | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total deferred revenue | $ 53.9 | $ 43.1 | $ 39.6 |
Revenue recognition - ESP Defer
Revenue recognition - ESP Deferred Revenue Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Change in Contract with Customer, Liability [Roll Forward] | ||||
ESP deferred revenue, beginning of period | $ 1,072 | |||
Plans sold | 47.1 | $ 25.2 | ||
ESP deferred revenue, end of period | $ 1,120.2 | $ 1,022.8 | 1,120.2 | 1,022.8 |
Extended Service Plan | ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
ESP deferred revenue, beginning of period | 1,063.8 | 990.5 | 1,028.9 | 960 |
Plans sold | 103.2 | 83.8 | 345.9 | 193.2 |
Revenue recognized | (100.7) | (91.1) | (308.5) | (170) |
ESP deferred revenue, end of period | 1,066.3 | 983.2 | 1,066.3 | 983.2 |
Extended Service Plan and Voucher Promotions | ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Revenue recognized | $ (56.4) | $ (61.6) | $ (192.8) | $ (115.8) |
Segment information - Additiona
Segment information - Additional Information (Details) | 9 Months Ended |
Oct. 30, 2021Reporting_Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 3 |
Segment information - Summary o
Segment information - Summary of Activity by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,537.8 | $ 1,300.3 | $ 5,014.7 | $ 3,040.4 |
Operating income (loss) | 106.9 | 39.7 | 501 | (349.6) |
Interest expense, net | (4.1) | (9.1) | (12.4) | (25.6) |
Other non-operating expense, net | (1.1) | 0 | (0.9) | 0.3 |
Income before income taxes | 101.7 | 30.6 | 487.7 | (374.9) |
Restructuring charges | (1.7) | 3.6 | (3.3) | 45.2 |
Asset impairments, net | 0.7 | 1.5 | 2 | 158.1 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,394.2 | 1,182.7 | 4,657.9 | 2,786.8 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 120.9 | 106.9 | 309 | 232.8 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 22.7 | 10.7 | 47.8 | 20.8 |
Inventory write-down | 0.2 | |||
Reportable segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,394.2 | 1,182.7 | 4,657.9 | 2,786.8 |
Operating income (loss) | 123.8 | 52.9 | 573.1 | (238.3) |
Acquisition and integration related costs | 1.1 | |||
Gain on sale of financing receivable | 1.4 | |||
Restructuring charges | (1) | |||
Asset impairments, net | 0.7 | 1.5 | 2 | 136.9 |
Inventory write-down | 2.2 | 1.6 | ||
Severance costs | 0.7 | 37.3 | ||
Reportable segments | North America | Diamonds Direct USA Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration related costs | 2.6 | 2.6 | ||
Reportable segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 120.9 | 106.9 | 309 | 232.8 |
Operating income (loss) | 0.2 | 1.6 | (4) | (52.6) |
Asset impairments, net | 21.2 | |||
Severance costs | 3 | 7.6 | ||
Reportable segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 22.7 | 10.7 | 47.8 | 20.8 |
Operating income (loss) | (0.4) | 1.3 | (1.4) | 0.8 |
Corporate and unallocated expenses | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (16.7) | $ (16.1) | (66.7) | (59.5) |
Restructuring charges | $ (1.7) | $ (2.3) | (0.1) | |
Inventory write-down | 0.2 | |||
Severance costs | 0.3 | |||
Net charge related to litigation settlement | $ 7.5 |
Restructuring plans - Narrative
Restructuring plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 45 Months Ended | ||||
Oct. 30, 2021 | Oct. 31, 2020 | May 05, 2018 | Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Jan. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 1.7 | $ (3.6) | $ 3.3 | $ (45.2) | |||
Signet Path to Brilliance | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring plan, length | 3 years | ||||||
Restructuring charges | 1.7 | $ (5.6) | 3.3 | $ (46.6) | $ (249.3) | ||
Restructuring reserve | 4.3 | 4.3 | 4.3 | $ 10.2 | |||
Signet Path to Brilliance | Accrued expenses and other current liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | 2.3 | 2.3 | 2.3 | ||||
Signet Path to Brilliance | Other noncurrent liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | $ 2 | $ 2 | $ 2 |
Restructuring plans - Restructu
Restructuring plans - Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 45 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total Signet Path to Brilliance Plan expenses | $ (1.7) | $ 3.6 | $ (3.3) | $ 45.2 | |
Cost of sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Inventory charges | 0 | 1.4 | |||
Restructuring Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other Plan related expenses | (3.3) | 45.2 | |||
Signet Path to Brilliance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Signet Path to Brilliance Plan expenses | (1.7) | 5.6 | (3.3) | $ 46.6 | $ 249.3 |
Signet Path to Brilliance | Cost of sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Inventory charges | 0 | 2 | |||
Signet Path to Brilliance | Restructuring Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other Plan related expenses | (1.7) | $ 3.6 | |||
Inventory charges | Signet Path to Brilliance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Signet Path to Brilliance Plan expenses | 0 | 0 | 72.8 | ||
Termination benefits | Signet Path to Brilliance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Signet Path to Brilliance Plan expenses | 0 | (1.1) | 48.8 | ||
Store closure and other costs | Signet Path to Brilliance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Signet Path to Brilliance Plan expenses | $ (1.7) | $ (2.2) | $ 127.7 |
Restructuring plans - Schedule
Restructuring plans - Schedule of Plan Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 45 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | |
Restructuring Reserve [Roll Forward] | |||||
Charged (credited) to expense | $ (1.7) | $ 3.6 | $ (3.3) | $ 45.2 | |
Signet Path to Brilliance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 10.2 | ||||
Payments and other adjustments | (2.6) | ||||
Charged (credited) to expense | (1.7) | $ 5.6 | (3.3) | $ 46.6 | $ 249.3 |
Ending balance | 4.3 | 4.3 | 4.3 | ||
Termination benefits | Signet Path to Brilliance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 2.1 | ||||
Payments and other adjustments | (0.9) | ||||
Charged (credited) to expense | 0 | (1.1) | 48.8 | ||
Ending balance | 0.1 | 0.1 | 0.1 | ||
Store closure and other costs | Signet Path to Brilliance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 8.1 | ||||
Payments and other adjustments | (1.7) | ||||
Charged (credited) to expense | (2.2) | ||||
Ending balance | $ 4.2 | $ 4.2 | $ 4.2 |
Redeemable preferred shares - A
Redeemable preferred shares - Additional Information (Details) - Series A Redeemable Convertible Preferred Stock - USD ($) $ / shares in Units, $ in Millions | Oct. 05, 2016 | Oct. 30, 2021 | May 01, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 |
Temporary Equity [Line Items] | |||||||
Redeemable convertible preferred stock, shares issued (shares) | 625,000 | ||||||
Preferred stock, purchase price | $ 625 | ||||||
Shares issued, price per share (in usd per share) | $ 1,000 | ||||||
Preferred stock, dividend rate, percentage | 5.00% | ||||||
Preferred stock, increase in stated value (in usd per share) | $ 12.97 | ||||||
Payments of stock issuance costs | $ 13.7 | ||||||
Accumulated accretion of dividends | $ 8.5 | $ 6.9 | $ 8.5 | $ 6.9 | $ 7.3 | ||
Accretion on redeemable convertible preferred shares | $ 0.4 | $ 0.4 | $ 1.2 | $ 1.2 |
Redeemable preferred shares - R
Redeemable preferred shares - Redeemable Preferred Shares (Details) - Series A Redeemable Convertible Preferred Stock $ / shares in Units, shares in Millions, $ in Millions | Oct. 30, 2021USD ($)$ / sharesshares | Jan. 30, 2021USD ($)$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares |
Temporary Equity [Line Items] | |||
Conversion ratio | 12.2297 | 12.2297 | 12.2297 |
Conversion price (usd per share) | $ / shares | $ 81.7682 | $ 81.7682 | $ 81.7682 |
Conversion of stock, shares issued (shares) | shares | 8 | 7.9 | 7.8 |
Liquidation preference | $ | $ 665 | $ 656.8 | $ 648.7 |
Shareholders' equity - Dividend
Shareholders' equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Dividends Payable [Line Items] | |||||||||
Common stock, dividends (usd per share) | $ 0.18 | $ 0.18 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.36 | $ 0 | |
Dividends, common stock | $ 9.5 | $ 9.5 | $ 0 | $ 0 | $ 0 | $ 0 | $ 19 | $ 0 | |
Dividends declared per preferred share (usd per share) | $ 13.14 | $ 13.14 | $ 13.14 | $ 12.81 | $ 12.66 | $ 12.50 | $ 39.42 | $ 37.97 | |
Dividends, preferred stock, paid-in-kind | $ 8.2 | $ 8.2 | $ 8.2 | $ 8 | $ 7.9 | $ 7.8 | $ 24.6 | $ 23.7 | |
Common Stock | Accrued expenses and other current liabilities | |||||||||
Dividends Payable [Line Items] | |||||||||
Dividends payable | 9.5 | 9.5 | |||||||
Series A Redeemable Convertible Preferred Stock | Accrued expenses and other current liabilities | |||||||||
Dividends Payable [Line Items] | |||||||||
Dividends payable | $ 8.2 | $ 8 | $ 8.2 | $ 8 | $ 8.1 |
Shareholders' equity - Share Re
Shareholders' equity - Share Repurchase (Details) - 2017 Program - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Aug. 23, 2021 | Aug. 22, 2021 | |
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 659.4 | |||
Shares repurchased (shares) | 0.5 | 0 | ||
Amount repurchased | $ 41.1 | $ 0 | ||
Average repurchase price per share (usd per share) | $ 88.04 | |||
Remaining authorized repurchase amount | $ 183.9 | $ 225 | $ 165.6 |
Earnings (loss) per common sh_3
Earnings (loss) per common share (EPS) - Schedule of Basic Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
EPS – basic | ||||
Net income (loss) attributable to common shareholders | $ 83.9 | $ 0.9 | $ 429.7 | $ (294.4) |
Basic weighted average common shares outstanding (shares) | 52.9 | 52.1 | 52.6 | 51.9 |
EPS – basic (usd per share) | $ 1.59 | $ 0.02 | $ 8.17 | $ (5.67) |
Earnings (loss) per common sh_4
Earnings (loss) per common share (EPS) - Schedule of Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
EPS – basic | ||||
Net income (loss) attributable to common shareholders | $ 83.9 | $ 0.9 | $ 429.7 | $ (294.4) |
Add: Dividends on Preferred Shares | 8.7 | 0 | 25.9 | 0 |
Numerator for diluted EPS | $ 92.6 | $ 0.9 | $ 455.6 | $ (294.4) |
EPS – diluted | ||||
Basic weighted average common shares outstanding (shares) | 52.9 | 52.1 | 52.6 | 51.9 |
Plus: Dilutive effect of share awards | 2.8 | 1.3 | 2.1 | 0 |
Plus: Dilutive effect of Preferred Shares | 8 | 0 | 8 | 0 |
Diluted weighted average common shares outstanding (shares) | 63.7 | 53.4 | 62.7 | 51.9 |
EPS – diluted (usd per share) | $ 1.45 | $ 0.02 | $ 7.27 | $ (5.67) |
Earnings (loss) per common sh_5
Earnings (loss) per common share (EPS) - Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation of earnings per share (shares) | 0 | 8.5 | 0 | 9.3 |
Share awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation of earnings per share (shares) | 0 | 0.7 | 0 | 1.6 |
Potential impact of Preferred Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation of earnings per share (shares) | 0 | 7.8 | 0 | 7.7 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Details) $ in Millions | 9 Months Ended |
Oct. 30, 2021USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 1,190.3 |
Other comprehensive income (loss) (“OCI”) before reclassifications | (55.8) |
Amounts reclassified from AOCI to net income | 1.7 |
Net current period OCI | (54.1) |
Ending Balance | 1,534.6 |
Accumulated other comprehensive loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (290.5) |
Ending Balance | (344.6) |
Foreign currency translation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (238.9) |
Other comprehensive income (loss) (“OCI”) before reclassifications | 3.1 |
Amounts reclassified from AOCI to net income | 0 |
Net current period OCI | 3.1 |
Ending Balance | (235.8) |
Gains (losses) on available-for-sale securities, net | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 0.5 |
Other comprehensive income (loss) (“OCI”) before reclassifications | (0.2) |
Amounts reclassified from AOCI to net income | 0 |
Net current period OCI | (0.2) |
Ending Balance | 0.3 |
Gains (losses) on cash flow hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (0.9) |
Other comprehensive income (loss) (“OCI”) before reclassifications | 0.2 |
Amounts reclassified from AOCI to net income | 0.5 |
Net current period OCI | 0.7 |
Ending Balance | (0.2) |
Pension Plan | Actuarial losses | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (47.2) |
Other comprehensive income (loss) (“OCI”) before reclassifications | (58.9) |
Amounts reclassified from AOCI to net income | 1.1 |
Net current period OCI | (57.8) |
Ending Balance | (105) |
Pension Plan | Prior service costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (4) |
Other comprehensive income (loss) (“OCI”) before reclassifications | 0 |
Amounts reclassified from AOCI to net income | 0.1 |
Net current period OCI | 0.1 |
Ending Balance | $ (3.9) |
Accumulated other comprehensi_4
Accumulated other comprehensive income (loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cost of sales | $ 962.2 | $ 863.8 | $ 3,043.1 | $ 2,176 | ||||
Other operating income, net | 0.8 | (0.4) | 13.2 | 4.3 | ||||
Other non-operating expense, net | (1.1) | 0 | (0.9) | 0.3 | ||||
Income taxes | (9.1) | (21.3) | (32.1) | 105.4 | ||||
Net income (loss) | 92.6 | $ 224.6 | $ 138.4 | 9.3 | $ (81.7) | $ (197.1) | 455.6 | (269.5) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net income (loss) | 0.9 | (1.5) | 1.7 | (10) | ||||
Losses (gains) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net income (loss) | 0.1 | (1.9) | 0.5 | (10.8) | ||||
Losses (gains) on cash flow hedges, excluding dedesignated | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income before income taxes | 0.1 | (1.8) | 0.6 | (3.5) | ||||
Losses (gains) on cash flow hedges, excluding dedesignated | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency contracts | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cost of sales | 0.1 | 0 | 0.4 | 0 | ||||
Losses (gains) on cash flow hedges, excluding dedesignated | Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cost of sales | 0 | (1.8) | 0.2 | (3.5) | ||||
Losses (gains) on dedesignating cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income before income taxes | 0 | 0 | 0 | (9.9) | ||||
Income taxes | 0 | (0.1) | (0.1) | 2.6 | ||||
Losses (gains) on dedesignating cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency contracts | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other operating income, net | 0 | 0 | 0 | (0.6) | ||||
Losses (gains) on dedesignating cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other operating income, net | 0 | 0 | 0 | (9.3) | ||||
Defined benefit pension plan items | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income before income taxes | 1 | 0.5 | 1.5 | 0.9 | ||||
Income taxes | (0.2) | (0.1) | (0.3) | (0.1) | ||||
Net income (loss) | 0.8 | 0.4 | 1.2 | 0.8 | ||||
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating expense, net | 1 | 0.1 | 1.4 | 0.2 | ||||
Prior service costs | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other non-operating expense, net | $ 0 | $ 0.4 | $ 0.1 | $ 0.7 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Estimated annual effective tax rate before discrete items | 22.10% | 19.50% |
Discrete items recognized | (15.50%) | 8.60% |
Effective tax rate recognized in statements of operations | 6.60% | 28.10% |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 30, 2021 | Jul. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit for release of valuation allowance | $ 49.8 | ||
CARES Act, income tax benefit on Tax Cuts and Jobs Act | $ 73.8 | ||
CARES Act, income tax benefit on net operating losses | $ 12.4 | 23.5 | |
Increase in valuation allowance | $ 66.9 |
Credit transactions (Details)
Credit transactions (Details) - USD ($) $ in Millions | May 17, 2021 | Jun. 30, 2018 | Jul. 31, 2021 | Jun. 30, 2021 |
CarVal and Castlelake | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accounts receivable, remaining purchase price of receivables sold, percentage | 5.00% | |||
Proceeds from sale of in-house finance receivables | $ 57.8 | |||
Customer in-house finance receivables, net | 56.4 | |||
Proceeds from collection of finance receivables | 23.5 | |||
CarVal and Castlelake | North America | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gain on sale of financing receivable | $ 1.4 | |||
CarVal | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Sale of receivables, additional percentage purchased | 50.00% | |||
Genesis Financial Solutions | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Sale of receivables, additional percentage purchased | 50.00% | |||
Agreement renewal term | 1 year | |||
Comenity Capital Bank | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Agreement renewal term | 2 years |
Accounts receivable, net - Port
Accounts receivable, net - Portfolio of Accounts Receivable (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Receivables [Abstract] | |||
Customer in-house finance receivables, net | $ 0 | $ 72 | $ 39.6 |
Accounts receivable, trade | 17 | 11.6 | 13.2 |
Accounts receivable, held for sale | 2.3 | 5.1 | 5.5 |
Accounts receivable, net | $ 19.3 | $ 88.7 | $ 58.3 |
Accounts receivable, net - Cred
Accounts receivable, net - Credit Quality of Finance Receivables (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Oct. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total at amortized cost | $ 97.5 | $ 54.2 |
Near Prime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total at amortized cost | 46.6 | 26.4 |
Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total at amortized cost | 38.9 | 21.8 |
Deep Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total at amortized cost | $ 12 | $ 6 |
Accounts receivable, net - Roll
Accounts receivable, net - Rollforward of Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 0 | $ 7.1 | $ 25.5 | $ 0 |
Provision for credit losses | (0.6) | 7.5 | (1) | 14.6 |
Write-offs | 0 | 0 | (5.5) | 0 |
Recoveries | 0.6 | 0 | 0.6 | 0 |
Reversal of allowance on receivables sold | 0 | 0 | (19.6) | 0 |
Balance at end of period | $ 0 | $ 14.6 | $ 0 | $ 14.6 |
Accounts receivable, net - Past
Accounts receivable, net - Past Due Status (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Oct. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total at amortized cost | $ 97.5 | $ 54.2 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total at amortized cost | 81.3 | 47.6 |
1 - 30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total at amortized cost | 9.1 | 4 |
31 - 60 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total at amortized cost | 2.6 | 1.5 |
61 - 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total at amortized cost | 1.7 | 0.7 |
Greater than 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total at amortized cost | $ 2.8 | $ 0.4 |
Accounts receivable, net - Addi
Accounts receivable, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Receivables [Abstract] | |||
Interest income | $ 0 | $ 6.5 | $ 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventory Components (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 72.6 | $ 45.3 | $ 84.2 |
Finished goods | 2,075.7 | 1,987.2 | 2,089.8 |
Total inventories | $ 2,148.3 | $ 2,032.5 | $ 2,174 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Inventory Disclosure [Abstract] | |||
Inventory reserves | $ 48.5 | $ 52.9 | $ 42.2 |
Asset impairments, net - Schedu
Asset impairments, net - Schedule of Asset Impairments, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Asset Impairment Charges [Abstract] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 10.7 | ||
Indefinite-lived intangible asset impairment | 0 | 0 | 0 | 83.3 | ||
Property and equipment impairment | 0.3 | 1.5 | $ 11.9 | $ 13.8 | 1.5 | 27.2 |
Operating lease ROU asset impairment | 0.4 | 0 | 8.4 | 28.5 | 0.5 | 36.9 |
Total asset impairments, net | $ 0.7 | 1.5 | 2 | 158.1 | ||
Gain on termination or modification of leases | $ 0.9 | $ 1.3 | $ 1 | $ 0.8 | $ 3.2 |
Asset impairments, net - Narrat
Asset impairments, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Asset Impairment Charges [Abstract] | ||||||
Property and equipment impairment | $ 0.3 | $ 1.5 | $ 11.9 | $ 13.8 | $ 1.5 | $ 27.2 |
Operating lease ROU asset impairment | $ 0.4 | 0 | 8.4 | 28.5 | 0.5 | 36.9 |
Gain on termination or modification of leases | $ 0.9 | $ 1.3 | $ 1 | $ 0.8 | $ 3.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Oct. 30, 2021USD ($) |
Leases [Abstract] | |
Deferred rent | $ 28 |
Leases - Total Lease Costs For
Leases - Total Lease Costs For Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 107 | $ 108.9 | $ 322 | $ 325.8 |
Short-term lease cost | 1.8 | 2.1 | 8.2 | 12.8 |
Variable lease cost | 26 | 27.8 | 87.5 | 79.7 |
Sublease income | (0.5) | (0.5) | (1.7) | (1.3) |
Total lease cost | $ 134.3 | $ 138.3 | $ 416 | $ 417 |
Goodwill and intangibles - Addi
Goodwill and intangibles - Additional Information (Details) - USD ($) $ in Millions | Mar. 29, 2021 | Oct. 30, 2021 | Oct. 31, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 10.7 | ||
Indefinite-lived intangible asset impairment | $ 0 | $ 0 | 0 | $ 83.3 | ||
North America | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 10.7 | |||||
Goodwill acquired | $ 7 | |||||
North America | Rocksbox | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets acquired | $ 11.6 | |||||
Goodwill acquired | $ 7 | |||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | |||||
North America | Certain Zales Trade Names | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible asset impairment | $ 83.3 |
Goodwill and intangibles - Summ
Goodwill and intangibles - Summary of Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2021 | Jan. 30, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 238 | |
Ending balance | 245 | |
North America | ||
Goodwill [Roll Forward] | ||
Beginning balance | 238 | |
Acquisitions | 7 | |
Ending balance | 245 | |
Goodwill, accumulated impairment loss | $ 576 | $ 576 |
Goodwill and intangibles - Comp
Goodwill and intangibles - Composition of Finite-Lived Intangibles (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Intangible assets, net: | |||
Gross carrying amount | $ 15.8 | $ 5.6 | $ 5.6 |
Accumulated amortization | (4.6) | (4.2) | (4) |
Net carrying amount | 11.2 | 1.4 | 1.6 |
Indefinite-lived intangible assets | 178 | 177.6 | 177.2 |
Intangible assets, gross | 193.8 | 183.2 | 182.8 |
Total intangible assets, net | 189.2 | 179 | 178.8 |
Intangible liabilities, net | |||
Gross carrying amount | (38) | (38) | (38) |
Accumulated amortization | 30.5 | 27.5 | 26.2 |
Total | $ (7.5) | $ (10.5) | $ (11.8) |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) oz in Thousands, $ in Millions | Oct. 30, 2021USD ($) | Jan. 30, 2021USD ($) | Oct. 31, 2020USD ($)oz | Oct. 30, 2021USD ($) |
Derivative [Line Items] | ||||
Derivative, notional amount in gold | oz | 11 | |||
Cash flow hedge loss to be reclassified within twelve months | $ 0.3 | |||
Foreign currency contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 96 | $ 107.6 | $ 51.3 | 96 |
Cash Flow Hedging | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 19.4 | $ 12.5 | $ 13.5 | $ 19.4 |
Derivative, remaining term | 12 months | 12 months | 12 months |
Derivatives - Fair Value of Pre
Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | $ 0.1 | $ 0.1 | $ 0 |
Fair value of derivative liabilities | (0.5) | (0.4) | (0.5) |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | 0 | (0.4) | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | 0.1 | 0 | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | 0 | (0.3) | 0 |
Foreign currency contracts | Not Designated as Hedging Instrument | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value of derivative assets | 0 | 0.1 | 0 |
Foreign currency contracts | Not Designated as Hedging Instrument | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | (0.5) | 0 | (0.5) |
Commodity contracts | Designated as Hedging Instrument | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of derivative liabilities | $ 0 | $ (0.1) | $ 0 |
Derivatives - Derivative Instru
Derivatives - Derivative Instruments Designated as Cash Flow Hedges in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Current period gains (losses) recognized in OCI | $ 0.4 | $ 0 | $ 0.2 | $ 0.2 |
Losses (gains) reclassified from AOCI to net income | 0.1 | (1.8) | 0.6 | (13.4) |
Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Gains (losses) recorded in AOCI, beginning of period | (1.1) | |||
Gains (losses) recorded in AOCI, end of period | (0.3) | 3.5 | (0.3) | 3.5 |
Foreign currency contracts | Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Gains (losses) recorded in AOCI, beginning of period | (0.6) | 0 | (0.7) | (1) |
Current period gains (losses) recognized in OCI | 0.4 | 0 | 0.2 | 1.6 |
Gains (losses) recorded in AOCI, end of period | (0.1) | 0 | (0.1) | 0 |
Commodity contracts | Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Gains (losses) recorded in AOCI, beginning of period | (0.2) | 5.3 | (0.4) | 17.7 |
Current period gains (losses) recognized in OCI | 0 | 0 | 0 | (1.4) |
Gains (losses) recorded in AOCI, end of period | (0.2) | 3.5 | (0.2) | 3.5 |
Cost of sales | Foreign currency contracts | Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Losses (gains) reclassified from AOCI to net income | 0.1 | 0 | 0.4 | 0 |
Cost of sales | Commodity contracts | Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Losses (gains) reclassified from AOCI to net income | 0 | (1.8) | 0.2 | (3.5) |
Other operating income, net | Foreign currency contracts | Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Losses (gains) reclassified from AOCI to net income | 0 | 0 | 0 | (0.6) |
Other operating income, net | Commodity contracts | Cash Flow Hedging | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Losses (gains) reclassified from AOCI to net income | $ 0 | $ 0 | $ 0 | $ (9.3) |
Derivatives - Derivatives not D
Derivatives - Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Not Designated as Hedging Instrument | Foreign currency contracts | Other operating income, net | ||||
Derivative [Line Items] | ||||
Foreign currency contracts not designated as hedging | $ (1.3) | $ (1.1) | $ (0.4) | $ (2.1) |
Fair value measurement - Fair V
Fair value measurement - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 5.1 | $ 5.7 | $ 6.3 |
Liabilities | 0 | 0 | 0 |
Level 1 | US Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 5.1 | 5.7 | 6.3 |
Level 1 | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | 0 |
Liabilities | 0 | 0 | 0 |
Level 1 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 0 | 0 | 0 |
Level 1 | US government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | 0 |
Level 1 | Corporate bonds and notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | 0 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 8 | 9.8 | 11 |
Liabilities | (0.5) | (0.4) | (0.5) |
Level 2 | US Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | 0 |
Level 2 | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0.1 | 0.1 | 0 |
Liabilities | (0.5) | (0.3) | (0.5) |
Level 2 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 0 | (0.1) | 0 |
Level 2 | US government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 2 | 3.2 | 3.7 |
Level 2 | Corporate bonds and notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 5.9 | 6.5 | 7.3 |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 13.1 | 15.5 | 17.3 |
Liabilities | (0.5) | (0.4) | (0.5) |
Carrying Value | US Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 5.1 | 5.7 | 6.3 |
Carrying Value | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0.1 | 0.1 | 0 |
Liabilities | (0.5) | (0.3) | (0.5) |
Carrying Value | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 0 | (0.1) | 0 |
Carrying Value | US government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 2 | 3.2 | 3.7 |
Carrying Value | Corporate bonds and notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 5.9 | $ 6.5 | $ 7.3 |
Fair value measurement - Narrat
Fair value measurement - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 04, 2018 | Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Sale of receivables. percentage deferred until second anniversary of closing date | 5.00% | |
Deferred payment, fair value disclosure | $ 23.5 |
Fair value measurement - Outsta
Fair value measurement - Outstanding Debt (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | $ 147 | $ 146.7 | $ 246.2 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 151.2 | 145.1 | 230.8 |
Senior Notes | Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 147 | 146.7 | 146.7 |
Senior Notes | Level 2 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 151.2 | 145.1 | 130.8 |
Term Loan | Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | 0 | 0 | 99.5 |
Term Loan | Level 2 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding debt | $ 0 | $ 0 | $ 100 |
Loans, overdrafts and long-te_3
Loans, overdrafts and long-term debt - Loans, overdrafts and long-term debt (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Debt Instrument [Line Items] | |||
Gross debt | $ 147.9 | $ 147.6 | $ 1,041.2 |
Less: Current portion of loans and overdrafts | (0.3) | 0 | (3.6) |
Less: Unamortized debt issuance costs | (0.6) | (0.9) | (1.4) |
Total long-term debt | 147 | 146.7 | 1,036.2 |
Other loans and bank overdrafts | |||
Debt Instrument [Line Items] | |||
Gross debt | 0.3 | 0 | 3.6 |
Senior Unsecured Notes Due in 2024 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Gross debt | 147.6 | 147.6 | 147.6 |
Senior Asset-Based Credit Facility | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Gross debt | 0 | 0 | 790 |
Senior Asset-Based Credit Facility | Line of Credit | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Gross debt | $ 0 | $ 0 | $ 100 |
Loans, overdrafts and long-te_4
Loans, overdrafts and long-term debt - Additional Information (Details) | Sep. 27, 2019USD ($) | Oct. 30, 2021USD ($) | Oct. 31, 2020USD ($) | May 02, 2020USD ($) | Oct. 30, 2021USD ($) | Oct. 31, 2020USD ($) | Jul. 28, 2021USD ($) | Jan. 30, 2021USD ($) | May 19, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||
Proceeds from revolving credit facilities | $ 0 | $ 900,000,000 | |||||||
Senior Unsecured Notes Due in 2024 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of senior debt | $ 239,600,000 | ||||||||
Redemption price per $1,000 of principal amount | 950 | ||||||||
Unamortized debt issuance costs | $ 600,000 | $ 900,000 | 600,000 | 900,000 | $ 900,000 | ||||
Amortization of financing costs | 100,000 | 100,000 | 300,000 | 200,000 | |||||
Senior Asset-Based Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | 8,700,000 | 6,800,000 | 8,700,000 | 6,800,000 | $ 6,400,000 | ||||
Amortization of financing costs | 500,000 | $ 400,000 | 1,600,000 | $ 1,300,000 | |||||
Revolving Credit Facility | Senior Asset-Based Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | 1,500,000,000 | ||||||||
Additional borrowing capacity | $ 600,000,000 | ||||||||
Debt issuance costs | 12,600,000 | 12,600,000 | $ 3,900,000 | ||||||
Letters of credit outstanding | 18,800,000 | 18,800,000 | |||||||
Available borrowing capacity | 1,200,000,000 | $ 1,200,000,000 | |||||||
Proceeds from revolving credit facilities | $ 900,000,000 | ||||||||
Debt instrument, covenant, minimum coverage ratio | 1 | ||||||||
Debt covenant, fixed covenant ratio threshold | $ 126,000,000 | $ 126,000,000 | |||||||
Term Loan Facility | Senior Asset-Based Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 100,000,000 | ||||||||
Signet UK Finance plc | Senior Unsecured Notes Due in 2024 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 400,000,000 | ||||||||
Stated interest rate | 4.70% |
Warranty reserve - Warranty Res
Warranty reserve - Warranty Reserve Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty reserve, beginning of period | $ 34.7 | $ 37.3 | $ 37.3 | $ 36.3 |
Warranty expense | 2.6 | 1.5 | 4.8 | 5.5 |
Utilized | (2.6) | (2.2) | (7.4) | (5.2) |
Warranty reserve, end of period | $ 34.7 | $ 36.6 | $ 34.7 | $ 36.6 |
Warranty reserve (Details)
Warranty reserve (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jul. 31, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Feb. 01, 2020 |
Other Liabilities Disclosure [Abstract] | ||||||
Current liabilities | $ 9.9 | $ 10.7 | $ 10.6 | |||
Non-current liabilities | 24.8 | 26.6 | 26 | |||
Total warranty reserve | $ 34.7 | $ 34.7 | $ 37.3 | $ 36.6 | $ 37.3 | $ 36.3 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 10.9 | $ 3.3 | $ 36.4 | $ 9.6 |
Commitments and contingencies -
Commitments and contingencies - Additional information (Details) $ in Millions | Mar. 16, 2020USD ($) | Jan. 15, 2018plaintiff | Jan. 14, 2018plaintiff | Aug. 01, 2016employee | Aug. 31, 2016lawsuit | Aug. 01, 2020USD ($) | Oct. 30, 2021employee | Jan. 30, 2021USD ($)settlement | Feb. 01, 2020USD ($) | Dec. 31, 2019action | Dec. 31, 2019complaint | Dec. 31, 2017lawsuit |
EPA Collective Action | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of employees opted in lawsuit (employee) (plaintiff) | 254 | 70,000 | 10,314 | 9,124 | ||||||||
Shareholder Actions | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
New claims filed, number | 2 | 4 | 4 | 3 | ||||||||
Litigation settlement, amount awarded to other party | $ 240 | $ 240 | ||||||||||
Gain (loss) related to litigation settlement | $ (35) | $ (7.5) | ||||||||||
Insurance recoveries | $ 207.4 | |||||||||||
Number of anticipated settlements | settlement | 4 | |||||||||||
Other operating income, net | Shareholder Actions | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Gain (loss) related to litigation settlement | (33.2) | |||||||||||
Legal fees | $ 0.6 |
Retirement plans - Narrative (D
Retirement plans - Narrative (Details) £ in Thousands, $ in Millions | Aug. 09, 2021GBP (£) | Jul. 29, 2021GBP (£)employee | Jul. 29, 2021USD ($)employee | Jan. 29, 2022GBP (£) | Jan. 29, 2022USD ($) | Oct. 30, 2021GBP (£) | Oct. 30, 2021USD ($) |
Defined Contribution Plan [Line Items] | |||||||
Number of pension scheme members | employee | 1,909 | 1,909 | |||||
Signet Group Limited | Pension scheme | |||||||
Defined Contribution Plan [Line Items] | |||||||
Defined benefit plan, expected future employer contributions, amount | £ 16,850 | $ 23.4 | |||||
Defined benefit plan, initial contribution amount | £ 7,000 | $ 9.7 | |||||
Actuarial loss | £ | £ 53,300 | ||||||
Liability, defined benefit pension plan, noncurrent | £ 6,200 | $ 8.5 | |||||
Signet Group Limited | Pension scheme | Scenario, Forecast | |||||||
Defined Contribution Plan [Line Items] | |||||||
Net periodic pension cost | £ (1,900) | $ (2.6) | |||||
Defined benefit plan, amortization | £ 1,700 | $ 2.3 |