Revenue Recognition | Revenue recognition The following table provides the Company’s total sales, disaggregated by banner, for the 13 and 39 weeks ended October 29, 2022 and October 30, 2021: 13 weeks ended October 29, 2022 13 weeks ended October 30, 2021 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by banner: Kay $ 535.6 $ — $ — $ 535.6 $ 573.4 $ — $ — $ 573.4 Zales 263.2 — — 263.2 291.9 — — 291.9 Jared 267.7 — — 267.7 277.1 — — 277.1 Digital banners (1) 156.6 — — 156.6 90.4 90.4 Diamonds Direct 106.4 — — 106.4 — — — — Banter by Piercing Pagoda 82.9 — — 82.9 111.4 — — 111.4 Peoples 40.0 — — 40.0 45.9 — — 45.9 International segment banners — 95.3 — 95.3 — 120.9 — 120.9 Other (2) 12.4 — 22.6 35.0 4.1 — 22.7 26.8 Total sales $ 1,464.8 $ 95.3 $ 22.6 $ 1,582.7 $ 1,394.2 $ 120.9 $ 22.7 $ 1,537.8 39 weeks ended October 29, 2022 39 weeks ended October 30, 2021 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by banner: Kay $ 1,820.4 $ — $ — $ 1,820.4 $ 1,923.8 $ — $ — $ 1,923.8 Zales 929.0 — — 929.0 1,030.0 — — 1,030.0 Jared 885.3 — — 885.3 873.1 — — 873.1 Digital banners (1) 338.5 338.5 300.7 300.7 Diamonds Direct 325.7 — — 325.7 — — — — Banter by Piercing Pagoda 302.1 — — 302.1 399.0 — — 399.0 Peoples 133.2 — — 133.2 121.9 — — 121.9 International segment banners — 316.9 — 316.9 — 309.0 — 309.0 Other (2) 52.0 — 72.8 124.8 9.4 — 47.8 57.2 Total sales $ 4,786.2 $ 316.9 $ 72.8 $ 5,175.9 $ 4,657.9 $ 309.0 $ 47.8 $ 5,014.7 (1) Includes sales from the Company’s digitally native banners, James Allen and Blue Nile. (2) Other primarily includes sales from Signet’s diamond sourcing initiative, loose diamonds and Rocksbox. The following table provides the Company’s total sales, disaggregated by major product, for the 13 and 39 weeks ended October 29, 2022 and October 30, 2021: 13 weeks ended October 29, 2022 13 weeks ended October 30, 2021 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by product: Bridal $ 729.2 $ 39.9 $ — $ 769.1 $ 640.9 $ 57.3 $ — $ 698.2 Fashion 496.4 16.4 — 512.8 524.6 23.3 — 547.9 Watches 45.0 33.0 — 78.0 48.7 44.0 — 92.7 Services (1) 155.3 6.0 — 161.3 143.8 (3.7) — 140.1 Other (2) 38.9 — 22.6 61.5 36.2 — 22.7 58.9 Total sales $ 1,464.8 $ 95.3 $ 22.6 $ 1,582.7 $ 1,394.2 $ 120.9 $ 22.7 $ 1,537.8 39 weeks ended October 29, 2022 39 weeks ended October 30, 2021 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by product: Bridal $ 2,247.1 $ 139.2 $ — $ 2,386.3 $ 2,064.5 $ 146.8 $ — $ 2,211.3 Fashion 1,764.2 52.0 — 1,816.2 1,866.7 53.7 — 1,920.4 Watches 150.0 106.1 — 256.1 154.2 102.2 — 256.4 Services (1) 484.8 19.6 — 504.4 440.8 6.3 — 447.1 Other (2) 140.1 — 72.8 212.9 131.7 — 47.8 179.5 Total sales $ 4,786.2 $ 316.9 $ 72.8 $ 5,175.9 $ 4,657.9 $ 309.0 $ 47.8 $ 5,014.7 (1) Services primarily includes sales from service plans, repairs and subscriptions. (2) Other primarily includes sales from Signet’s diamond sourcing initiative and other miscellaneous non-jewelry sales. The following table provides the Company’s total sales, disaggregated by channel, for the 13 and 39 weeks ended October 29, 2022 and October 30, 2021: 13 weeks ended October 29, 2022 13 weeks ended October 30, 2021 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by channel: Store $ 1,140.6 $ 79.8 $ — $ 1,220.4 $ 1,142.6 $ 99.4 $ — $ 1,242.0 E-commerce 315.6 15.5 — 331.1 251.6 21.5 — 273.1 Other (1) 8.6 — 22.6 31.2 — — 22.7 22.7 Total sales $ 1,464.8 $ 95.3 $ 22.6 $ 1,582.7 $ 1,394.2 $ 120.9 $ 22.7 $ 1,537.8 39 weeks ended October 29, 2022 39 weeks ended October 30, 2021 (in millions) North America International Other Consolidated North America International Other Consolidated Sales by channel: Store $ 3,851.7 $ 261.6 $ — $ 4,113.3 $ 3,775.5 $ 235.8 $ — $ 4,011.3 E-commerce 894.1 55.3 — 949.4 882.4 73.2 — 955.6 Other (1) 40.4 — 72.8 113.2 — — 47.8 47.8 Total sales $ 4,786.2 $ 316.9 $ 72.8 $ 5,175.9 $ 4,657.9 $ 309.0 $ 47.8 $ 5,014.7 (1) Other primarily includes sales from Signet’s diamond sourcing initiative and loose diamonds. Extended service plans (“ESP”) The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral periods for ESP sales are determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the condensed consolidated balance sheets. These direct costs primarily include sales commissions and credit card fees. Deferred selling costs Unamortized deferred selling costs as of October 29, 2022, January 29, 2022 and October 30, 2021 were as follows: (in millions) October 29, 2022 January 29, 2022 October 30, 2021 Other current assets $ 27.7 $ 28.4 $ 25.2 Other assets 85.5 87.8 87.2 Total deferred selling costs $ 113.2 $ 116.2 $ 112.4 Amortization of deferred ESP selling costs is included within selling, general and administrative expenses in the condensed consolidated statements of operations. Amortization of deferred ESP selling costs w as $9.9 million and $31.0 million d uring the 13 and 39 weeks ended October 29, 2022, respectively, and $12.4 million and $29.4 million during the 13 and 39 weeks ended October 30, 2021. Deferred revenue Deferred revenue as of October 29, 2022, January 29, 2022 and October 30, 2021 was as follows: (in millions) October 29, 2022 January 29, 2022 October 30, 2021 ESP deferred revenue $ 1,124.9 $ 1,116.5 $ 1,066.3 Other deferred revenue (1) 88.5 82.4 53.9 Total deferred revenue $ 1,213.4 $ 1,198.9 $ 1,120.2 Disclosed as: Current liabilities $ 335.3 $ 341.3 $ 307.0 Non-current liabilities 878.1 857.6 813.2 Total deferred revenue $ 1,213.4 $ 1,198.9 $ 1,120.2 (1) Other deferred revenue primarily includes revenue collected from customers for custom orders and eCommerce orders, for which control has not yet transferred to the customer. 13 weeks ended 39 weeks ended (in millions) October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021 ESP deferred revenue, beginning of period $ 1,131.5 $ 1,063.8 $ 1,116.5 $ 1,028.9 Plans sold (1) 101.1 103.2 345.2 345.9 Revenue recognized (2) (107.7) (100.7) (336.8) (308.5) ESP deferred revenue, end of period $ 1,124.9 $ 1,066.3 $ 1,124.9 $ 1,066.3 (1) Includes impact of foreign exchange translation. (2) The Company recognized sale s o f $60.7 million and $208.5 million during the 13 and 39 weeks ended October 29, 2022, respectively, and $56.4 million and $192.8 million during the 13 and 39 weeks ended October 30, 2021, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP. |