XML 23 R11.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Revenue recognition
 6 Months Ended
Aug. 03, 2024
Revenue from Contract with Customer [Abstract]  
Revenue recognition Revenue recognition
The following table provides the Company’s total sales, disaggregated by banner, for the 13 and 26 weeks ended August 3, 2024 and July 29, 2023:
13 weeks ended August 3, 202413 weeks ended July 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by banner:
Kay
$542.6 $— $— $542.6 $567.1 $— $— $567.1 
Zales
255.5 — — 255.5 279.4 — — 279.4 
Jared
251.6 — — 251.6 265.2 — — 265.2 
Digital banners (1)
131.3 — — 131.3 164.2 164.2 
Diamonds Direct89.3 — — 89.3 93.1 — — 93.1 
Banter by Piercing Pagoda
77.6 — — 77.6 79.3 — — 79.3 
Peoples
43.6 — — 43.6 43.5 — — 43.5 
International segment banners
— 86.5 — 86.5 — 102.0 — 102.0 
Other (2)
6.1 — 6.9 13.0 9.3 — 10.5 19.8 
Total sales
$1,397.6 $86.5 $6.9 $1,491.0 $1,501.1 $102.0 $10.5 $1,613.6 
26 weeks ended August 3, 2024
26 weeks ended July 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by banner:
Kay
$1,110.1 $— $— $1,110.1 $1,169.3 $— $— $1,169.3 
Zales
512.2 — — 512.2 574.8 — — 574.8 
Jared
501.1 — — 501.1 539.2 — — 539.2 
Digital banners (1)
265.0 265.0 332.4 332.4 
Diamonds Direct171.9 — — 171.9 181.3 — — 181.3 
Banter by Piercing Pagoda
161.2 — — 161.2 164.8 — — 164.8 
Peoples
82.8 — — 82.8 81.7 — — 81.7 
International segment banners
— 163.7 — 163.7 — 195.0 — 195.0 
Other (2)
13.3 — 20.5 33.8 18.8 — 24.3 43.1 
Total sales
$2,817.6 $163.7 $20.5 $3,001.8 $3,062.3 $195.0 $24.3 $3,281.6 
(1) Includes sales from the Company’s digital banners, James Allen and Blue Nile.
(2) Other primarily includes sales from the Company’s diamond sourcing operation, loose diamonds and Rocksbox.
The following table provides the Company’s total sales, disaggregated by major product, for the 13 and 26 weeks ended August 3, 2024 and July 29, 2023:
13 weeks ended August 3, 202413 weeks ended July 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by product:
Bridal
$625.9 $39.9 $— $665.8 $691.0 $44.5 $— $735.5 
Fashion
522.5 17.7 — 540.2 552.3 17.4 — 569.7 
Watches
48.7 23.0 — 71.7 48.4 33.5 — 81.9 
Services (1)
173.8 5.9 — 179.7 170.6 6.6 — 177.2 
Other (2)
26.7 — 6.9 33.6 38.8 — 10.5 49.3 
Total sales
$1,397.6 $86.5 $6.9 $1,491.0 $1,501.1 $102.0 $10.5 $1,613.6 
26 weeks ended August 3, 2024
26 weeks ended July 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by product:
Bridal
$1,265.2 $75.2 $— $1,340.4 $1,418.7 $85.5 $— $1,504.2 
Fashion
1,059.3 32.9 — 1,092.2 1,123.7 33.0 — 1,156.7 
Watches
91.4 43.8 — 135.2 93.2 63.6 — 156.8 
Services (1)
352.4 11.8 — 364.2 346.4 12.9 — 359.3 
Other (2)
49.3 — 20.5 69.8 80.3 — 24.3 104.6 
Total sales
$2,817.6 $163.7 $20.5 $3,001.8 $3,062.3 $195.0 $24.3 $3,281.6 
(1) Services primarily includes sales from service plans, repairs and subscriptions.
(2) Other primarily includes sales from the Company’s diamond sourcing operation and other miscellaneous non-jewelry sales.
The following table provides the Company’s total sales, disaggregated by channel, for the 13 and 26 weeks ended August 3, 2024 and July 29, 2023:
13 weeks ended August 3, 202413 weeks ended July 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by channel:
Store
$1,080.2 $67.6 $— $1,147.8 $1,147.1 $84.8 $— $1,231.9 
eCommerce
313.4 18.9 — 332.3 348.3 17.2 — 365.5 
Other (1)
4.0 — 6.9 10.9 5.7 — 10.5 16.2 
Total sales
$1,397.6 $86.5 $6.9 $1,491.0 $1,501.1 $102.0 $10.5 $1,613.6 
26 weeks ended August 3, 2024
26 weeks ended July 29, 2023
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by channel:
Store
$2,174.5 $128.4 $— $2,302.9 $2,338.1 $161.6 $— $2,499.7 
eCommerce
634.9 35.3 — 670.2 712.7 33.4 — 746.1 
Other (1)
8.2 — 20.5 28.7 11.5 — 24.3 35.8 
Total sales
$2,817.6 $163.7 $20.5 $3,001.8 $3,062.3 $195.0 $24.3 $3,281.6 
(1) Other primarily includes sales from the Company’s diamond sourcing operation and loose diamonds.
Extended service plans (“ESP”)
The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral periods for ESP sales are determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in historical claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in either the overall claims pattern or the life over which the Company is expected to fulfill its obligations under the warranty, could result in material change to revenues. All direct costs associated with the sale of the ESP are
deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the condensed consolidated balance sheets. These direct costs primarily include sales commissions and credit card fees.
Deferred ESP selling costs
Unamortized deferred ESP selling costs as of August 3, 2024, February 3, 2024 and July 29, 2023 were as follows:
(in millions)August 3, 2024February 3, 2024July 29, 2023
Other current assets$27.5 $28.2 $28.0 
Other assets81.2 83.0 83.0 
Total deferred ESP selling costs$108.7 $111.2 $111.0 
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 $10.9 million and $22.1 million during the 13 and 26 weeks ended August 3, 2024, respectively, and $10.8 million and $21.7 million during the 13 and 26 weeks ended July 29, 2023, respectively.
Deferred revenue
Deferred revenue as of August 3, 2024, February 3, 2024 and July 29, 2023 was as follows:
(in millions)August 3, 2024February 3, 2024July 29, 2023
ESP deferred revenue$1,146.1 $1,158.7 $1,138.9 
Other deferred revenue (1)
75.7 86.0 88.4 
Total deferred revenue
$1,221.8 $1,244.7 $1,227.3 
Disclosed as:
Current liabilities$347.8 $362.9 $358.3 
Non-current liabilities874.0 881.8 869.0 
Total deferred revenue$1,221.8 $1,244.7 $1,227.3 
(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 ended26 weeks ended
(in millions)August 3, 2024July 29, 2023August 3, 2024July 29, 2023
ESP deferred revenue, beginning of period$1,153.7 $1,149.4 $1,158.7 $1,159.5 
Plans sold (1)
117.0 109.7 238.9 223.1 
Revenue recognized (2)
(124.6)(120.2)(251.5)(243.7)
ESP deferred revenue, end of period$1,146.1 $1,138.9 $1,146.1 $1,138.9 
(1) Includes impact of foreign exchange translation.
(2) The Company recognized sales of $75.0 million and $160.2 million during the 13 and 26 weeks ended August 3, 2024, respectively, and $75.8 million and $162.5 million during the 13 and 26 weeks ended July 29, 2023, respectively, related to deferred revenue that existed at the beginning of the period in respect to ESP.