SIGNET JEWELERS LTD

Previous wording

This management's discussion and analysis provides comparisons of material changes in the condensed consolidated financial statements for the 13 and 39 weeks ended November 2, 2024 and October 28, 2023.

Current wording

This management's discussion and analysis provides comparisons of material changes in the condensed consolidated financial statements for the 13 weeks ended May 3, 2025 and May 4, 2024.

Previous wording

This Quarterly Report on Form 10-Q contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements arebased upon management's beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of the words "expects," "intends," "anticipates," "estimates," "predicts," "believes," "should," "potential," "may," "preliminary," "forecast," "objective," "plan," or "target," and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties which could cause the actual results to not be realized, including, but not limited to: executing major business or strategic initiatives, such as expansion of the services business, realizing the benefits of our restructuring plans or new transformation strategies that the Company may develop in the future; difficulty or delay in executing or integrating an acquisition; the impact of the Israel-Hamas conflict on the operations of our quality control and technology centers in Israel; the negative impacts that public health crisis, disease outbreak, epidemic or pandemic has had, and could have in the future, on our business, financial condition, profitability and cash flows, including without limitation risks relating to shifts in consumer spending away from the jewelry category, trends toward more experiential purchases such as travel, the pace at which engagements are expected to recover from the disruption in the dating cycle on engagements caused by COVID-19, and the Company’s ability to capture market share of the bridal category upon the recovery of engagements; general economic or market conditions, including impacts of inflation or other pricing environment factors on our commodity costs (including diamonds) or other operating costs; a prolonged slowdown in the growth of the jewelry market or a recession in the overall economy; financial market risks; a decline in consumer discretionary spending or deterioration in consumer financial position; disruptions in our supply chain; our ability to attract and retain labor; our ability to optimize our transformation strategies; changes to regulations relating to customer credit; disruption in the availability of credit for customers and customer inability to meet credit payment obligations, which has occurred and may continue to deteriorate; our ability to achieve the benefits related to the outsourcing of the credit portfolio, including due to technology disruptions and/or disruptions arising from changes to or termination of the relevant outsourcing agreements, as well …

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements arebased upon management's beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of the words "guidance," "expects," "continue," "intends," "anticipates," "enhance," "estimates," "predicts," "believes," "should," "potential," "may," "preliminary," "forecast," "objective," "opportunity," "plan," "strategy," "target," or “will” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties which could cause the actual results to not be realized, including, but not limited to: executing or optimizing major business or strategic initiatives, such as expansion of the services business or realizing the benefits of our restructuring plans or transformation strategies, including those that the Company may develop in the future; attracting and retaining key executive talent during periods of leadership transition, such as our recent appointment of a new CEO and other recent changes in senior leadership from the reorganization under our Grow Brand Love strategy; the failure to adequately mitigate the impact of existing tariffs and/or the imposition of additional duties, tariffs, taxes and other charges or other barriers to trade or impacts from trade relations; difficulty or delay in executing or integrating an acquisition; the impact of the conflicts in the Middle East on the operations of our quality control and technology centers in Israel; the negative impacts that public health crisis, disease outbreak, epidemic or pandemic has had, and could have in the future, on our business, financial condition, profitability and cash flows; risks relating to shifts in consumer spending away from the jewelry category or away from the cultural customs of expressing commitments through engagements and weddings; trends toward more experiential purchases such as travel; general economic or market conditions, including impacts of inflation or other pricing environment factors on our commodity costs (including diamonds) or other operating costs; a prolonged slowdown in the growth of the jewelry market or a recession in the overall economy; financial market risks; a decline in consumer discretionary spending or deterioration in consumer financial position; disruptions in our supply chain; our ability to attract and retain labor; changes to regulations relating to customer credit; disruption in the availability of credit for customers and customer inability to m…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Signet Jewelers Limited (“Signet” or the “Company”) is the world’s largest retailer of diamond jewelry. Signet is incorporated in Bermuda. The Company operated 2,655 retail locations as of November 2, 2024, which when combined with the Company’s digital capabilities under its Connected Commerce strategy, provides customers the opportunity to use both online and in-store experiences as part of their shopping journey. Signet manages its business by geography, a description of which follows:

Current wording

Signet Jewelers Limited (“Signet” or the “Company”) is the world’s largest retailer of diamond jewelry and is incorporated in Bermuda. The Company operated 2,633 retail locations as of May 3, 2025, which when combined with the Company’s digital capabilities under its Connected Commerce strategy, provides customers the opportunity to use both online and in-store experiences as part of their shopping journey. Signet manages its business by geography, a description of which follows:

Previous wording

•The North America reportable segment operates nine banners, with the majority operating through both online and brick and mortar retail operations. The segment had 2,298 locations in the US and 91 locations in Canada as of November 2, 2024.

Current wording

•The North America reportable segment operates nine brands, with the majority operating through both online and brick and mortar retail operations. The segment had 2,280 locations in the US and 91 locations in Canada as of May 3, 2025.

Previous wording

◦In the US, the segment operates under the following banners: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared Jewelers and Jared Vault); Banter by Piercing Pagoda; Diamonds Direct; Rocksbox; and digital banners, James Allen and Blue Nile.

Current wording

◦In the US, the segment operates under the following brands: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared Jewelers and Jared Vault); Banter by Piercing Pagoda; Diamonds Direct; Rocksbox; and Digital brands, James Allen and Blue Nile.

Previous wording

◦In Canada, the segment operates under the Peoples banner (Peoples Jewellers).

Current wording

◦In Canada, the segment operates under the Peoples brand (Peoples Jewellers).

Previous wording

•The International reportable segment had 266 locations in the UK and Republic of Ireland as of November 2, 2024, and maintains an online retail presence for its principal banners, H. Samuel and Ernest Jones.

Current wording

•The International reportable segment had 262 locations in the UK and Republic of Ireland as of May 3, 2025, and maintains an online retail presence for its principal brands, H.Samuel and Ernest Jones.

Previous wording

Refer to the “Results of Operations” section below for further information on performance during the third quarter of Fiscal 2025.

Current wording

Refer to the “Results of Operations” section below for additional information on performance during the first quarter of Fiscal 2026.

Previous wording

The Company continues to monitor the impacts of certain macroeconomic factors on its business, such as inflation and the Russia-Ukraine and Israel-Hamas conflicts. Signet operates quality control and technology centers in Israel, and to date, these operations have not been impacted by the geopolitical conflict in the Middle East. While the Company currently does not expect disruptions to its operations in Israel to have a material impact on the Company’s results of operations, the Company will continue to closely monitor this conflict and any impacts on its business, as well as its team members in Israel. Uncertainties exist that could impact the Company’s results of operations or cash flows in the future, such as competitive pricing pressure, including lab-created diamonds, continued inflationary impacts to the Company (including, but not limited to, materials, labor, fulfillment and advertising costs) or adverse shifts in consumer discretionary spending, slower than anticipated recovery of engagements, deterioration of consumer credit, supply chain disruptions to the Company’s business, the Company’s ability to recruit and retain qualified team members, or organized retail crime and its impact to mall traffic. In addition, the Company will monitor potential impacts of changes to regulations, taxes and tariffs as a result of the incoming US administration. See “Forward-Looking Statements” above as well as the “Risk Factors” included in Item 1A of Signet’s Fiscal 2024 Annual Report on Form 10-K.

Current wording

The Company continues to evaluate the impacts of certain macroeconomic factors on its business, such as tariffs, inflation and the Russia-Ukraine and Middle East conflicts. The Company is closely monitoring ongoing activities related to changes to US economic policy, including potential impacts from both taxes and tariffs. Signet looks to navigate tariffs through a combination of vendor negotiations, value engineering of new merchandise to avoid retail increases where possible, as well as promotion and lifecycle management. As previously discussed, Signet operates quality control and technology centers in Israel, and to date, these operations have not been impacted by the geopolitical conflict in the Middle East. While the Company currently does not expect disruptions to its operations in Israel to have a material impact on the Company’s results of operations, the Company will continue to closely monitor this conflict and any impacts on its business, as well as its team members in Israel. Uncertainties exist that could impact the Company’s results of operations or cash flows in the future, such as competitive pricing pressure, including lab-grown diamonds, continued inflationary impacts to the Company (including, but not limited to, materials, labor, fulfillment and advertising costs), adverse shifts in consumer discretionary spending, slower than anticipated recovery of engagements, deterioration of consumer credit, supply chain disruptions to the Company’s business, the Company’s ability to recruit and retain qualified team members, and organized retail crime and its impact to mall traffic. See “Forward-Looking Statements” above as well as the “Risk Factors” section within Item 1A of Signet’s Fiscal 2025 Annual Report on Form 10-K.

Previous wording

Comparison of Third Quarter Fiscal 2025 to Third Quarter Fiscal 2024

Current wording

Comparison of First Quarter Fiscal 2026 to First Quarter Fiscal 2025

Previous wording

The breakdown of the third quarter sales performance by reportable segment is set out in the table below:

Current wording

The breakdown of the first quarter sales performance by reportable segment is set out in the table below:

Previous wording

(2)The Company provides the period-over-period change in total sales excluding the impact of foreign currency fluctuations, which is a non-GAAP measure, to provide transparency to performance and enhance investors’ understanding of underlying business trends. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year sales in local currency.

Current wording

(1) The Company provides the period-over-period change in total sales excluding the impact of foreign currency fluctuations, which is a non-GAAP measure, to provide transparency to performance and enhance investors’ understanding of underlying business trends. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year sales in local currency.

Previous wording

(3) Includes sales from Signet’s diamond sourcing operation.

Current wording

(2)Includes sales from Signet’s diamond sourcing operation.

Previous wording

ATV is an operating metric defined as net merchandise sales divided by the total number of customer transactions. The ATV is measured each period based on the reported merchandise sales for the corresponding period presented.

Current wording

As described above, AUR is an additional operating metric defined as merchandise sales divided by merchandise units. AUR is measured each period based on reported sales for the corresponding period presented.

Previous wording

See Note 1 and Note 18 for additional information.

Current wording

In the first quarter of Fiscal 2026, other operating expense was $24.7 million, compared to $7.2 million in the prior year quarter. The 13 weeks ended May 3, 2025 primarily included restructuring and asset impairment charges of $22.2 million related to the actions under the Company’s new corporate strategy, Grow Brand Love. The 13 weeks ended May 4, 2024 primarily included restructuring and asset impairment charges of $7.0 million. See Note 17 and Note 18 for additional information.

Previous wording

In the third quarter of Fiscal 2025, income tax expense was $1.4 million, with an effective tax rate (“ETR”) of 16.7%, compared to income tax expense of $1.9 million, with an ETR of 14.0%, in the prior year comparable period. The ETRs for the third quarter of

Current wording

In the first quarter of Fiscal 2026, income tax expense was $12.1 million, with an effective tax rate (“ETR”) of 26.5%, compared to income tax expense of $6.5 million, with an ETR of 11.1%, in the prior year comparable period. Signet was not subject to income tax in Bermuda prior to Fiscal 2026. On December 27, 2023, Bermuda enacted a 15% corporate income tax that was effective for the Company beginning with Fiscal 2026. The ETR for the first quarter of Fiscal 2026 was higher than the Bermuda income tax rate, primarily as a result of the unfavorable impact of foreign rate differences (primarily in the US) and unfavorable discrete tax items recognized in the 13 weeks ended May 3, 2025, including the tax shortfall for share-based compensation which vested during the year of $0.8 million.

Previous wording

Fiscal 2025 and the third quarter of Fiscal 2024 were lower than the US federal income tax rate, primarily due to the favorable impacts of foreign rate differences and benefits from global reinsurance arrangements.

Current wording

The ETR for the first quarter of Fiscal 2025 was lower than the US federal income tax rate, primarily due to the favorable impact of foreign rate differences and benefits from global reinsurance arrangements, as well as the discrete tax benefit related to share-based compensation which vested during the prior year quarter of$4.7 million.

Previous wording

Net (debt) cash is a non-GAAP measure defined as the total of cash and cash equivalents less debt. Management considers this metric to be helpful to understand the total indebtedness of the Company after consideration of cash balances on-hand.

Current wording

Net cash is a non-GAAP measure defined as the total of cash and cash equivalents less debt. Management considers this metric to be helpful to understand the total indebtedness of the Company after consideration of cash balances on-hand.

Previous wording

Free cash flow is a non-GAAP measure defined as the net cash (used in) provided by operating activities less purchases of property, plant and equipment. Management considers this metric to be helpful in understanding how the business is generating cash from its operating and investing activities that can be used to meet the financing needs of the business. Free cash flow is an indicator frequently used by management to evaluate its overall liquidity needs and determine appropriate capital allocation strategies. Free cash flow does not represent the residual cash flow available for discretionary purposes.

Current wording

Free cash flow is a non-GAAP measure defined as the net cash used in operating activities less capital expenditures. Management considers this metric to be helpful in understanding how the business is generating cash from its operating and investing activities that can be used to meet the financing needs of the business. Free cash flow is an indicator frequently used by management to evaluate its overall liquidity needs and determine appropriate capital allocation strategies. Free cash flow does not represent the residual cash flow available for discretionary purposes.

Previous wording

EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. EBITDA is an important indicator of operating performance as it excludes the effects of financing and investing activities by eliminating the effects of interest, income taxes, depreciation and amortization costs. Adjusted EBITDA is a non-GAAP measure, defined as earnings before interest, income taxes, depreciation and amortization, share-based compensation expense, non-operating expense, net and certain non-GAAP accounting adjustments. Reviewed in conjunction with net income and operating income, management believes that EBITDA and adjusted EBITDA helps enhance management’s and investors’ ability to evaluate and analyze trends regarding Signet’s business and performance based on its current operations. EBITDA and adjusted EBITDA are also inputs into the Company’s leverage ratios, which are non-GAAP measures disclosed periodically in investor materials and other Company filings with the SEC, including annually in the Company’s Form 10-K.

Current wording

EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. EBITDA is an important indicator of operating performance as it excludes the effects of financing and investing activities by eliminating the effects of interest, income taxes, depreciation and amortization costs. Adjusted EBITDA is a non-GAAP measure, defined as earnings before interest, income taxes, depreciation and amortization, share-based compensation expense, non-operating expense, net and certain non-GAAP accounting adjustments. Reviewed in conjunction with net income and operating income, management believes that EBITDA and adjusted EBITDA help enhance management’s and investors’ ability to evaluate and analyze trends regarding Signet’s business and performance based on its current operations. These measures are also inputs into the Company’s leverage ratios, which are non-GAAP measures disclosed periodically in investor materials and other Company filings with the SEC, including annually in the Company’s Form 10-K.

Previous wording

(4) Fiscal 2025 includes severance and retention expenses related to the integration of Blue Nile; Fiscal 2024 includes expenses related to the integration of Blue Nile, primarily severance and retention, exit and disposal costs and system decommissioning costs.

Current wording

(3) Includes severance and retention expenses related to the integration of Blue Nile.

Previous wording

(7) As described in Note 5, the Company recorded a deemed dividend to net income (loss) attributable to common shareholders of $85.2 million in of Fiscal 2025, which represents the excess of the conversion value of the Preferred Shares over their carrying value upon redemption and includes $1.6 million of related expenses.

Current wording

(3) As described in Note 5, the Company recorded a deemed dividend to net income (loss) attributable to common shareholders of $85.2 million in the first quarter of Fiscal 2025, which represents the excess of the conversion value of the Preferred Shares over their carrying value upon redemption and includes $1.6 million of related expenses.

Previous wording

(8) Adjusted diluted EPS for the 39 weeks ended November 2, 2024 was calculated using 45.9 million diluted weighted average common shares outstanding. The additional dilutive shares were excluded from the calculation of GAAP diluted EPS as their effect was antidilutive. Refer to Note 7 for additional information.

Current wording

(4) Adjusted diluted EPS for the 13 weeks ended May 4, 2024 was calculated using 48.0 million diluted weighted average common shares outstanding. The additional dilutive shares were excluded from the calculation of GAAP diluted EPS as their effect was antidilutive. Refer to Note 7 for additional information.

Previous wording

The Company’s primary sources of liquidity are cash on hand, cash provided by operations and availability under its senior secured asset-based revolving credit facility (the “ABL”). As of November 2, 2024, the Company had $157.7 million of cash and cash equivalents and $253.0 million of outstanding borrowings on the ABL. The available borrowing capacity on the ABL was $929 million as of November 2, 2024.

Current wording

The Company’s primary sources of liquidity are cash on hand, cash provided by operations and availability under its senior secured asset-based revolving credit facility (the “ABL”). As of May 3, 2025, the Company had $264.1 million of cash and cash equivalents and no outstanding borrowings on the ABL. The available borrowing capacity on the ABL was $1.1 billion as of May 3, 2025.

Previous wording

The Company has a disciplined approach to capital allocation, utilizing the following capital priorities: 1) drive growth through both organic investments and acquisitions; 2) optimize its capital structure and maintain an adjusted leverage ratio (a non-GAAP measure as defined in Item 7 of the Signet’s Fiscal 2024 Annual Report on Form 10-K) of at or below 2.5x; and 3) return cash to shareholders through share repurchases and dividends.

Current wording

The Company maintains a disciplined approach to capital allocation, utilizing the following priorities: 1) Invest in organic growth; 2) maintain conservative balance sheet, including an adjusted leverage ratio (a non-GAAP measure as defined in Item 7 of the Signet’s Fiscal 2025 Annual Report on Form 10-K) of at or below our stated goal; and 3) return capital to shareholders through share repurchases and dividends.

Previous wording

The Company has made significant progress over the past few years in line with its priority to build a strong cash and overall liquidity position, including fully outsourcing credit and eliminating the UK Pension Scheme. Additionally, over that period, the Company has repaid all outstanding debt, culminating in the full repayment of the Senior Notes at maturity in the second quarter of Fiscal 2025 using cash on hand. In addition, the Company has recently completed the extension of the ABL to August 2029 at substantially the same terms, as further described in Note 15. The ABL aggregate commitment has been reduced to $1.2 billion to better align with our reduced inventory base over the past few years, as well as provide cost savings on unused commitment fees.

Current wording

The Company has no outstanding debt after fully repaying the Senior Notes at maturity in the second quarter of Fiscal 2025 using cash on hand. In addition, in Fiscal 2025, the Company completed the extension of the ABL to August 2029 at substantially the same terms, as further described in Note 15. In connection with this extension, the ABL aggregate commitment was reduced to $1.2 billion to better align with our reduced inventory base over the past few years, as well as provide cost savings on unused commitment fees.

Previous wording

On April 1, 2024, in accordance with the terms of the amended Certificate of Designation for the Preferred Shares, the Preferred Holders converted half of the then outstanding Preferred Shares and the Company elected to settle such conversions in cash totaling $414.1 million, including accrued and unpaid dividends. During the second and third quarters, the Preferred Holders have now converted all of the remaining Preferred Shares, and the Company elected to settle all the remaining Preferred Shares in cash totaling $401.5 million. The ability of the Company to settle the Preferred Shares in cash highlights the effectiveness of the Company’s flexible operating model and working capital efficiency, which has generated significant free cash flow and liquidity over the past few years. Refer to Note 5 for additional information.

Current wording

$414.1 million, including accrued and unpaid dividends. During the second and third quarters of Fiscal 2025, the Preferred Holders converted all of the remaining Preferred Shares, and the Company elected to settle all the remaining Preferred Shares in cash totaling $401.5 million. The ability of the Company to settle the Preferred Shares in cash highlights the effectiveness of the Company’s flexible operating model and working capital efficiency, which has generated significant free cash flow and liquidity over the past few years. Refer to Note 5 for additional information.

Previous wording

The Company uses leverage ratios to assess the effectiveness of its capital allocation strategy. In Fiscal 2024, the Company reduced the stated goal for the adjusted leverage ratio (a non-GAAP measure as defined in Item 7 of the Signet’s Fiscal 2024 Annual Report on Form 10-K) by 0.25 turns to be at or below 2.5x and maintained a 2.3x adjusted leverage ratio through the end of Fiscal 2024. The Company continues to be confident in its ability to generate free cash flow while maintaining this leverage ratio target.

Current wording

The Company uses leverage ratios to assess the effectiveness of its capital allocation strategy. The Company maintained a 1.1x adjusted leverage ratio through the end of Fiscal 2025 (see non-GAAP measures as defined in Item 7 of the Signet’s Fiscal 2025 Annual Report on Form 10-K). During Fiscal 2025, the Company reduced its adjusted leverage ratio goal from 2.5x or less to 1.75x or less to reflect the retirement of all funded debt in Fiscal 2025, capital allocation strategies, and replacing the operating lease adjustment within the calculation with lease liabilities from the previous 5x rent adjustment. The Company continues to be confident in its ability to generate free cash flow while maintaining this leverage ratio target.

Previous wording

The Company remains committed to its goal to return cash to shareholders, which includes being a dividend growth company. For the third year in a row, Signet has increased its quarterly common dividend from $0.23 per share in Fiscal 2024 to $0.29 per share beginning in Fiscal 2025. The Company also remains focused on share repurchases under its 2017 Program. In March 2024, the Board approved a further $200 million increase to the multi-year authorization under the 2017 Program. The Company repurchased $113.8 million of common shares during the 39 weeks ended November 2, 2024 with $747.3 million of shares authorized for repurchase remaining as of November 2, 2024. See Note 6 for additional information related to the common share repurchases.

Current wording

The Company remains committed to its goal of returning cash to shareholders, which includes being a dividend growth company. For the fourth year in a row, Signet has increased its quarterly common dividend from $0.29 per share in Fiscal 2025 to $0.32 per share beginning in Fiscal 2026. The Company also remains focused on common share repurchases under its 2017 Program. In March 2024, the Board approved a further $200 million increase to the multi-year authorization under the 2017 Program. The Company repurchased $117.4 million of common shares during the 13 weeks ended May 3, 2025 with $605.6 million of shares authorized for repurchase remaining as of May 3, 2025. See Note 6 for additional information related to the common share repurchases.

Previous wording

Net cash used in operating activities was $189.8 million during the 39 weeks ended November 2, 2024 compared to $205.3 million in the prior year comparable period. The change in operating cash flows compared to prior year was primarily driven by the payment of litigation settlements in the prior year noted below, mostly offset by the impact of lower sales on cash flows year over year. The significant movements in operating cash flows are further described below:

Current wording

Net cash used in operating activities was $175.3 million during the 13 weeks ended May 3, 2025 compared to $158.2 million in the prior year comparable period. The change in operating cash flows compared to prior year was primarily driven by higher paydowns of accounts payable year over year. The significant movements in operating cash flows are further described below:

Previous wording

•Net loss was $39.4 million compared to net income of $184.2 million in the prior year period, a decrease of $223.6 million. This decrease was primarily the result of non-cash asset impairment charges of $169.3 million taken during Fiscal 2025, as well as lower sales and gross profit compared to prior year. Refer to Note 12 for additional information.

Current wording

•Net income was $33.5 million compared to net income of $52.1 million in the prior year period, a decrease of $18.6 million. This decrease was primarily the result of restructuring charges of $19.0 million and higher SG&A in Fiscal 2026, partially offset by higher gross profit.

Previous wording

•The change in current income taxes was a use of $92.4 million in the current period compared to a use of $20.0 million in the prior year. The current year use was primarily the result of net income tax payments of $100.0 million, compared to net income tax payments of $11.7 million in the prior year period.

Current wording

•The change in current income taxes was a use of $7.5 million in the current period compared to a use of $38.6 million in the prior year. The current year use was primarily the result of net income tax payments of $16.2 million, compared to net income tax payments of $45.3 million in the prior year period.

Previous wording

•Cash used by accounts payable was $101.5 million compared to a use of $221.5 million in the prior year period. Accounts payable decreased in the current year as a result of normal pay down of invoices due from Holiday Season merchandise purchases. The change compared to prior year is due to the above noted higher replenishment of inventory in the current year.

Current wording

•Cash used by accounts payable was $187.5 million compared to a use of $136.7 million in the prior year period. Accounts payable is historically a use of cash in the first quarter, as the Company pays down invoices due from Holiday Season merchandise purchases. The increased use compared to the prior first quarter is due to timing and mix of payables.

Previous wording

Net cash used in investing activities for the 39 weeks ended November 2, 2024 was $121.0 million compared to a use of $93.9 million in the prior period. Cash used in Fiscal 2025 was primarily related to capital expenditures of $114.4 million. Capital expenditures are associated with new stores, remodels of existing stores, and capital investments in digital and IT. Signet has planned Fiscal 2025 capital expenditures of up to $170 million. In Fiscal 2024, net cash used in investing activities was primarily related to capital expenditures of $89.4 million.

Current wording

Net cash used in investing activities for the 13 weeks ended May 3, 2025 was $36.6 million compared to a use of $21.5 million in the prior year period. Cash used in Fiscal 2026 was related to capital expenditures of $36.6 million. Capital expenditures are associated with new stores, remodels of existing stores, and capital investments in digital and IT. Signet has planned Fiscal 2026 capital expenditures of up to $160 million. In Fiscal 2025, net cash used in investing activities was primarily related to capital expenditures of $23.3 million.

Previous wording

Stores opened and closed in the 39 weeks ended November 2, 2024:

Current wording

Stores opened and closed in the 13 weeks ended May 3, 2025:

Previous wording

(1)The net change in selling square footage for Fiscal 2025 for the North America and International segments was (0.2%) and (5.9%), respectively.

Current wording

(1)The net change in selling square footage for Fiscal 2026 for the North America and International segments was (0.1%) and (0.4%), respectively.

Previous wording

Net cash used in financing activities for the 39 weeks ended October 28, 2023 was $219.7 million, consisting of the repurchase of $117.5 million of common shares, payments for withholding taxes related to the settlement of the Company’s share-based compensation awards of $47.9 million, and preferred and common share dividends paid of $54.3 million.

Current wording

Net cash used in financing activities for the 13 weeks ended May 3, 2025 was $137.3 million, consisting of the repurchase of $117.4 million of common shares, common share dividends paid of $12.6 million, and payments for withholding taxes related to the settlement of the Company’s share-based compensation awards of $7.3 million.

Previous wording

Net cash used in financing activities for the 39 weeks ended November 2, 2024 was $908.5 million, primarily consisting of the repurchase of the Preferred Shares of $812.9 million, the repayment of the Senior Notes of $147.8 million upon maturity, payments for withholding taxes related to the settlement of the Company’s share-based compensation awards of $28.2 million, preferred and common share dividends paid of $54.5 million, and the repurchase of $113.8 million of common shares, partially offset by ABL borrowings of $253.0 million.

Current wording

Net cash used in financing activities for the 13 weeks ended May 4, 2024 was $467.5 million, consisting of the repurchase of the Preferred Shares of $412.0 million, the repurchase of $7.4 million of common shares, payments for withholding taxes related to the settlement of the Company’s share-based compensation awards of $27.6 million, and preferred and common share dividends paid of $20.5 million.

Previous wording

Cash and cash equivalents at November 2, 2024 were $157.7 million compared to $643.8 million as of October 28, 2023. The decrease year over year was primarily driven by the retirement of the Preferred Shares, the repayment of the Senior Notes upon maturity, and common share repurchases, as described above, partially offset by borrowings on the ABL and cash flow from operations. Signet holds cash and cash equivalents at a number of large, highly-rated financial institutions. The amount held at each financial institution takes into account the credit rating and size of the financial institution and is held for short-term durations.

Current wording

Cash and cash equivalents at May 3, 2025 were $264.1 million compared to $729.3 million as of May 4, 2024. The decrease year over year was primarily driven by the retirement of Preferred Shares in Fiscal 2025, the repayment of the Senior Notes upon maturity in the second quarter of Fiscal 2025 and common share repurchases, as described above, partially offset by cash flow from operations. Signet holds cash and cash equivalents at a number of large, highly-rated financial institutions. The amount held at each financial institution takes into account the credit rating and size of the financial institution and is held for short-term durations.

Previous wording

As further described in Note 15, the Company entered into an agreement to amend the ABL on August 23, 2024. The amendment extended the maturity of the ABL from July 28, 2026 to August 23, 2029 and reduced the size of the ABL to $1.2 billion to better reflect current business needs based primarily on the lower inventory levels maintained over the past few years. The Company continues to have an option to increase the size of the ABL by up to an additional $600 million.

Current wording

As further described in Note 15, the Company entered into an agreement to amend the ABL on August 23, 2024. The amendment extended the maturity of the ABL from July 28, 2026 to August 23, 2029 and reduced the size of the ABL to $1.2 billion to better reflect current business needs based primarily on lower inventory levels maintained over the past few years. The Company continues to have an option to increase the size of the ABL by up to an additional $600 million.