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Revenue recognition | 12 Months Ended
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Feb. 03, 2024
Revenue from Contract with Customer [Abstract] |
Revenue recognition | Revenue recognition The following tables provide the Company’s total sales, disaggregated by banner, for Fiscal 2024, Fiscal 2023 and Fiscal 2022:
|  | Fiscal 2024
(in millions) |  | North America |  | International |  | Other |  | Consolidated
Sales by banner: |  |  |  |  |  |  |  |
Kay |  | $ | 2,600.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,600.0 |
Zales |  | 1,266.9 |  |  | — |  |  | — |  |  | 1,266.9 |
Jared |  | 1,189.6 |  |  | — |  |  | — |  |  | 1,189.6 |
Digital banners (1) |  | 662.8 |  |  | — |  |  | — |  |  | 662.8 |
Diamonds Direct |  | 408.1 |  |  | — |  |  | — |  |  | 408.1 |
Banter by Piercing Pagoda |  | 347.1 |  |  | — |  |  | — |  |  | 347.1 |
Peoples |  | 196.0 |  |  | — |  |  | — |  |  | 196.0 |
International segment banners |  | — |  |  | 430.7 |  |  | — |  |  | 430.7 |
Other (4) |  | 33.3 |  |  | — |  |  | 36.6 |  |  | 69.9 |
Total sales |  | $ | 6,703.8 |  |  | $ | 430.7 |  |  | $ | 36.6 |  |  | $ | 7,171.1 |
|  | Fiscal 2023
(in millions) |  | North America |  | International |  | Other |  | Consolidated
Sales by banner: |  |  |  |  |  |  |  |
Kay |  | $ | 2,804.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,804.2 |
Zales |  | 1,445.0 |  |  | — |  |  | — |  |  | 1,445.0 |
Jared |  | 1,313.5 |  |  | — |  |  | — |  |  | 1,313.5 |
Digital banners (1)(2) |  | 571.8 |  |  | — |  |  | — |  |  | 571.8 |
Diamonds Direct |  | 467.1 |  |  | — |  |  | — |  |  | 467.1 |
Banter by Piercing Pagoda |  | 417.9 |  |  | — |  |  | — |  |  | 417.9 |
Peoples |  | 209.1 |  |  | — |  |  | — |  |  | 209.1 |
International segment banners |  | — |  |  | 470.1 |  |  | — |  |  | 470.1 |
Other (4) |  | 60.9 |  |  | — |  |  | 82.5 |  |  | 143.4 |
Total sales |  | $ | 7,289.5 |  |  | $ | 470.1 |  |  | $ | 82.5 |  |  | $ | 7,842.1 |
|  | Fiscal 2022
(in millions) |  | North America |  | International |  | Other |  | Consolidated
Sales by banner: |  |  |  |  |  |  |  |
Kay |  | $ | 2,985.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,985.8 |
Zales |  | 1,624.8 |  |  | — |  |  | — |  |  | 1,624.8 |
Jared |  | 1,326.3 |  |  | — |  |  | — |  |  | 1,326.3 |
Digital banners (1) |  | 422.8 |  |  | — |  |  | — |  |  | 422.8 |
Diamonds Direct (3) |  | 132.5 |  |  | — |  |  | — |  |  | 132.5 |
Banter by Piercing Pagoda |  | 553.4 |  |  | — |  |  | — |  |  | 553.4 |
Peoples |  | 206.2 |  |  | — |  |  | — |  |  | 206.2 |
International segment banners |  | — |  |  | 492.4 |  |  | — |  |  | 492.4 |
Other (4) |  | 13.0 |  |  | — |  |  | 68.8 |  |  | 81.8 |
Total sales |  | $ | 7,264.8 |  |  | $ | 492.4 |  |  | $ | 68.8 |  |  | $ | 7,826.0 |
(1) Includes sales from the Company’s digital banners James Allen and Blue Nile. (2) Includes Blue Nile sales since the date of acquisition on August 19, 2022. See Note 4 for further details. (3) Includes Diamonds Direct sales since the date of acquisition on November 17, 2021. See Note 4 for further details. (4) Other primarily includes sales from the Company’s diamond sourcing operation, loose diamonds and Rocksbox. The following tables provide the Company’s total sales, disaggregated by major product, for Fiscal 2024, Fiscal 2023 and Fiscal 2022:
| Fiscal 2024
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |
Bridal | $ | 2,946.9 |  |  | $ | 186.2 |  |  | $ | — |  |  | $ | 3,133.1 |
Fashion | 2,672.4 |  |  | 84.5 |  |  | — |  |  | 2,756.9 |
Watches | 212.0 |  |  | 133.7 |  |  | — |  |  | 345.7 |
Services (1) | 715.2 |  |  | 26.3 |  |  | — |  |  | 741.5 |
Other (2) | 157.3 |  |  | — |  |  | 36.6 |  |  | 193.9 |
Total sales | $ | 6,703.8 |  |  | $ | 430.7 |  |  | $ | 36.6 |  |  | $ | 7,171.1 |
| Fiscal 2023
(in millions) | North America (3) |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |
Bridal | $ | 3,281.2 |  |  | $ | 204.8 |  |  | $ | — |  |  | $ | 3,486.0 |
Fashion | 2,957.6 |  |  | 86.2 |  |  | — |  |  | 3,043.8 |
Watches | 232.6 |  |  | 152.9 |  |  | — |  |  | 385.5 |
Services (1) | 680.4 |  |  | 26.2 |  |  | — |  |  | 706.6 |
Other (2) | 137.7 |  |  | — |  |  | 82.5 |  |  | 220.2 |
Total sales | $ | 7,289.5 |  |  | $ | 470.1 |  |  | $ | 82.5 |  |  | $ | 7,842.1 |
| Fiscal 2022
(in millions) | North America (3) |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |
Bridal | $ | 3,139.7 |  |  | $ | 222.8 |  |  | $ | — |  |  | $ | 3,362.5 |
Fashion | 3,123.0 |  |  | 92.7 |  |  | — |  |  | 3,215.7 |
Watches | 241.6 |  |  | 157.8 |  |  | — |  |  | 399.4 |
Services (1) | 626.2 |  |  | 19.1 |  |  | — |  |  | 645.3 |
Other (2) | 134.3 |  |  | — |  |  | 68.8 |  |  | 203.1 |
Total sales | $ | 7,264.8 |  |  | $ | 492.4 |  |  | $ | 68.8 |  |  | $ | 7,826.0 |
(1) Services primarily includes sales from service plans, repairs and subscriptions. (2) Other primarily includes sales from the Company’s diamond sourcing operation and other miscellaneous non-jewelry sales. (3) Certain amounts have been reclassified between the bridal, fashion, and other categories to conform to the Company’s current product categorizations. The following tables provide the Company’s total sales, disaggregated by channel, for Fiscal 2024, Fiscal 2023 and Fiscal 2022:
| Fiscal 2024
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |
Store | $ | 5,125.1 |  |  | $ | 349.3 |  |  | $ | — |  |  | $ | 5,474.4 |
eCommerce | 1,559.0 |  |  | 81.4 |  |  | — |  |  | 1,640.4 |
Other (1) | 19.7 |  |  | — |  |  | 36.6 |  |  | 56.3 |
Total sales | $ | 6,703.8 |  |  | $ | 430.7 |  |  | $ | 36.6 |  |  | $ | 7,171.1 |
| Fiscal 2023
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |
Store | $ | 5,728.5 |  |  | $ | 386.0 |  |  | $ | — |  |  | $ | 6,114.5 |
eCommerce | 1,515.3 |  |  | 84.1 |  |  | — |  |  | 1,599.4 |
Other (1) | 45.7 |  |  | — |  |  | 82.5 |  |  | 128.2 |
Total sales | $ | 7,289.5 |  |  | $ | 470.1 |  |  | $ | 82.5 |  |  | $ | 7,842.1 |
| Fiscal 2022
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |
Store | $ | 5,867.9 |  |  | $ | 377.7 |  |  | $ | — |  |  | $ | 6,245.6 |
eCommerce | 1,396.9 |  |  | 114.7 |  |  | — |  |  | 1,511.6 |
Other (1) | — |  |  | — |  |  | 68.8 |  |  | 68.8 |
Total sales | $ | 7,264.8 |  |  | $ | 492.4 |  |  | $ | 68.8 |  |  | $ | 7,826.0 |
(1) Other primarily includes sales from the Company’s diamond sourcing operation and loose diamonds. The Company recognizes revenues when control of the promised goods and services are transferred to customers, in an amount that reflects the consideration expected to be received in exchange for those goods. Transfer of control generally occurs at the time merchandise is taken from a store, or upon receipt of the merchandise by a customer for an eCommerce shipment. The Company excludes all taxes assessed by government authorities and collected from a customer from its reported sales. The Company’s revenue streams and their respective accounting treatments are further discussed below. Merchandise sales and repairs Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, private label credit card programs, a third-party credit card or a lease purchase option. For online sales shipped to customers, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales. Revenues on the sale of merchandise are reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced. Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store. Consignment inventory sales Sales of consignment inventory are accounted for on a gross sales basis as the Company maintains control of the merchandise through the point of sale as well as provides independent advice, guidance and after-sales service to customers. Supplier products are selected at the discretion of the Company, and the Company is responsible for determining the selling price and for physical security of the products. The products sold from consignment inventory are similar in nature to other products that are sold to customers and are sold on the same terms. Extended service plans (“ESP”) The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral periods for ESP sales are determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in historical claims to assess whether changes are required to the revenue and cost recognition rates utilized. The Company refreshes its analysis of the claims patterns on at least an annual basis, or more often if circumstances dictate such a review is required (such as occurred as a result of the disruption from COVID-19). A significant change in either the overall claims pattern or the life over which the Company is expected to fulfill its obligations under the warranty, could result in material change to revenues. These changes have not had a material impact on revenue during Fiscal 2024, Fiscal 2023 or Fiscal 2022. The North America reportable segment sells ESP, subject to certain conditions, to perform repair work over the life of the product. Customers generally pay for ESP at the store or online at the time of merchandise sale. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated patterns of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Lifetime ESP revenue is deferred and recognized over a maximum of 13 years after the sale of the warranty contract. Although claims experience varies between the Company’s national banners, thereby resulting in different recognition rates, approximately 60% to 65% of revenue is recognized within the first two years on a weighted average basis. The Company also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that the Company receives from the third-party is recognized at the time of sale less an estimate of cancellations based on historical experience. Deferred ESP selling costs All direct costs associated with the sale of the ESP plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the consolidated balance sheets. These direct costs primarily include sales commissions and credit card fees. Amortization of deferred ESP selling costs is included within SG&A in the consolidated statements of operations. Amortization of deferred ESP selling costs was $44.4 million, $43.7 million and $41.7 million in Fiscal 2024, and Fiscal 2023 and Fiscal 2022, respectively. Unamortized deferred ESP selling costs as of February 3, 2024 and January 28, 2023 were as follows:
(in millions) | February 3, 2024 |  | January 28, 2023
Other current assets | $ | 28.2 |  |  | $ | 29.2 |
Other assets | 83.0 |  |  | 85.4 |
Total deferred ESP selling costs | $ | 111.2 |  |  | $ | 114.6 |
Deferred revenue Deferred revenue as of February 3, 2024 and January 28, 2023 was follows:
(in millions) | February 3, 2024 |  | January 28, 2023
ESP deferred revenue | $ | 1,158.7 |  |  | $ | 1,159.5 |
Other deferred revenue (1) | 86.0 |  |  | 90.1 |
Total deferred revenue | $ | 1,244.7 |  |  | $ | 1,249.6 |
Disclosed as: |  |  |
Current liabilities | $ | 362.9 |  |  | $ | 369.5 |
Non-current liabilities | 881.8 |  |  | 880.1 |
Total deferred revenue | $ | 1,244.7 |  |  | $ | 1,249.6 |
(1) Other deferred revenue primarily includes revenue collected from customers for custom orders and eCommerce orders, for which control has not yet transferred to the customer.
(in millions) | Fiscal 2024 |  | Fiscal 2023 |  | Fiscal 2022
ESP deferred revenue, beginning of period | $ | 1,159.5 |  |  | $ | 1,116.5 |  |  | $ | 1,028.9 |
Plans sold (1) | 504.8 |  |  | 522.9 |  |  | 528.9 |
Revenue recognized (2) | (505.6) |  |  | (479.9) |  |  | (441.3) |
ESP deferred revenue, end of period | $ | 1,158.7 |  |  | $ | 1,159.5 |  |  | $ | 1,116.5 |
(1) Includes impact of foreign exchange translation. (2) During Fiscal 2024, Fiscal 2023 and Fiscal 2022 the Company recognized sales of $291.5 million, $269.3 million and $244.1 million, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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