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 26 weeks ended August 2, 2025 and August 3, 2024.

Current 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 1, 2025 and November 2, 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 "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.

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," “progress,” "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; impacts of US government shutdowns on consumer spending; 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…

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 and is incorporated in Bermuda. The Company operated 2,623 retail locations as of August 2, 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:

Current wording

Signet Jewelers Limited (“Signet” or the “Company”) is a jewelry retailer incorporated in Bermuda. The Company operated 2,607 retail locations as of November 1, 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 brands, with the majority operating through both online and brick and mortar retail operations. The segment had 2,273 locations in the US and 91 locations in Canada as of August 2, 2025.

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 2,262 locations in the US and 91 locations in Canada as of November 1, 2025.

Previous wording

•The International reportable segment had 259 locations in the UK and Republic of Ireland as of August 2, 2025, and maintains an online retail presence for its principal brands, H.Samuel and Ernest Jones.

Current wording

•The International reportable segment had 254 locations in the UK and Republic of Ireland as of November 1, 2025, and maintains an online retail presence for its principal brands, H.Samuel and Ernest Jones.

Previous wording

Signet’s total sales increased by 3.0% during the second quarter of Fiscal 2026 compared to the same period in Fiscal 2025. The Company saw positive same stores sales growth of 2.0% during the quarter, driven by growth in fashion and services. Merchandise average unit retail (“AUR”) increased in both fashion and bridal, which offset an overall decline in units period over period. The unit decline primarily reflects decreases in Banter, which was more impacted by higher gold prices, as well as a strategic reduction of low-priced promotional items. The overall year over year sales improvement was impacted by an approximate 120 basis point drag from underperformance in the James Allen brand in the second quarter. During the second quarter of Fiscal 2026, AUR was up 9.8% in the North America reportable segment and 5.6% in the International reportable segment compared to the second quarter of Fiscal 2025. AUR in North America was bolstered by a focus on our assortment strategy, particularly in lab-grown diamond (“LGD”) fashion, as well as the impact of higher gold prices, as noted above. Same store sales in the International reportable segment were up 0.8% in the second quarter.

Current wording

Signet’s total sales increased by 3.1% during the third quarter of Fiscal 2026 compared to the same period in Fiscal 2025. The Company saw positive same stores sales growth of 3.0% during the quarter, with growth in all major categories. The bridal and fashion categories continued to be led by our largest brands - Kay, Zales and Jared - and driven by our refined assortment strategy and a refined approach to pricing and promotion to respond to customer preferences, while services grew high single digits compared to prior year quarter on the strength of the extended service plan offerings. Merchandise average unit retail (“AUR”) increased overall as well, particularly in fashion, which offset an overall decline in units period over period. During the third quarter of Fiscal 2026, AUR was up 7.7% in the North America reportable segment and 3.0% in the International reportable segment compared to the third quarter of Fiscal 2025. AUR in North America was bolstered by a focus on our assortment strategy, particularly in lab-grown diamond (“LGD”) fashion, as well as the impact of higher gold prices. Same store sales in the International reportable segment were up 3.6% in the third quarter.

Previous wording

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

Current wording

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

Previous wording

The Company anticipates same store sales in the range of down 0.75% to up 1.75% for Fiscal 2026 providing for variability in a measured consumer spending environment. The Company believes it is well positioned as it moves toward the Holiday Season, by having the right merchandise assortment at the right price points, while leveraging our marketing and brand experience to capitalize on consumer demand. The Company believes that it can build on its early progress under our Grow Brand Love strategy through distinct merchandise in both fashion and bridal, enhanced marketing, and unique customer experiences. In addition, the enhanced focus on our three largest brands - Kay, Zales and Jared - creates the most meaningful impact on growth, most immediately through assortment architecture, promotion management, and maximizing the investments in our e-commerce channel.

Current wording

The Company anticipates same store sales in the range of down 0.2% to up 1.75% for Fiscal 2026 including down 5.0% to up 0.5% in the fourth quarter. The fourth quarter estimate provides for variability in a measured consumer spending environment, as well as considers recent macro consumer trends since late October, including potential impacts from the government shutdown. The Company believes it is well positioned as it moves toward the Holiday Season, by having the right merchandise assortment at the right price points, while leveraging our marketing and brand equity to capitalize on consumer demand. The Company believes that it can build on its early progress under our Grow Brand Love strategy through distinct merchandise in both fashion and bridal, enhanced marketing, and unique customer experiences. The Company is being strategic with its marketing spend as well, by rebalancing channels to drive efficient reach and increasing spend during the 10 days leading into Christmas when jewelry gifting intent peaks. In addition, as previously discussed, we will continue to have an outsized focus on our three largest brands in the short term, while thoughtfully exploring ways the other brands in our portfolio can grow shareholder value.

Previous wording

The Company is closely monitoring ongoing activities related to changes to US economic policy, including potential impacts from both taxes and tariffs. The second quarter saw significant activity on new tariff announcements on countries such as India and Italy, where the Company purchases significant amounts of merchandise and diamonds. Signet looks to navigate the dynamic tariff environment by working with vendors to land inventory at the best time to minimize cost and maximize availability, as well as through discussions with suppliers to maximize domestic production, optimize country of origin, by value engineering merchandise at the right price points, and utilizing bonded warehouses. The Company will also evaluate our pricing and promotional strategies in the coming months as we navigate the uncertain tariff environment.

Current wording

The Company continues to closely monitor ongoing activities related to changes to US economic policy, including impacts from both taxes and tariffs. The second quarter of Fiscal 2026 saw significant activity on new tariff announcements on countries such as India and Italy, where the Company purchases significant amounts of merchandise and diamonds. We believe that we are now able to mitigate the majority of the higher tariffs through strategic sourcing initiatives by working with vendors to maximize production timing and country of origin, as well as by value engineering merchandise at the right price points. The Company believes that its well-balanced assortment and promotional cadence for the Holiday Season discussed above will continue to mitigate the impacts of the tariff environment and higher gold prices.

Previous wording

The Company also continues to evaluate the impacts of other macroeconomic factors on its business, such as inflation and the Russia-Ukraine and Middle East conflicts. 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 on 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.

Current wording

The Company also continues to evaluate the impacts of other macroeconomic factors on its business, such as inflation and the Russia-Ukraine and Middle East conflicts. 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 on lab-grown diamonds, impacts of the US government shut down on consumer spending, continued inflationary impacts (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 Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

Current wording

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

Previous wording

Signet's total sales increased 3.0% year over year to $1.54 billion in the 13 weeks ended August 2, 2025. Same store sales increased 2.0%, compared to a decrease of 3.4% in the prior year quarter. These increases were primarily from filling merchandise assortment gaps at key price points in fashion, as well as growth in services. The improved assortment across the bridal and fashion categories led to an increase in AUR of approximately 9% compared to the prior year second quarter. These increases were impacted by an approximate 120 basis point drag on same store sales from underperformance in the James Allen brand in the second quarter.

Current wording

Signet's total sales increased 3.1% year over year to $1.39 billion in the 13 weeks ended November 1, 2025. Same store sales increased 3.0%, compared to a decrease of 0.7% in the prior year quarter. These increases reflect the focus on the largest brands in both bridal and fashion, an enhanced assortment strategy, as well as growth in services. The improved assortment across the bridal and fashion categories led to an increase in AUR of approximately 7% compared to the prior year third quarter. These increases were negatively impacted by underperformance in the James Allen and Diamonds Direct brands in the third quarter compared to prior year third quarter.

Previous wording

E-commerce sales in the second quarter of Fiscal 2026 were $317.6 million, down $14.7 million or 4.4%, compared to $332.3 million in the prior year second quarter. This decrease was primarily due to underperformance in the James Allen brand noted above. E-commerce sales accounted for 20.7% of second quarter sales, a decrease compared to 22.3% of total sales in the prior year second quarter. Brick and mortar same store sales increased 3.8% from the prior year second quarter.

Current wording

E-commerce sales in the third quarter of Fiscal 2026 were $280.7 million, down $8.5 million or 2.9%, compared to $289.2 million in the prior year third quarter. This decrease was primarily due to underperformance in the James Allen brand noted above. E-commerce sales accounted for 20.2% of third quarter sales, a decrease compared to 21.4% of total sales in the prior year third quarter. Brick and mortar same store sales increased 4.7% from the prior year third quarter.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

As described above, AUR is an additional operating metric defined as merchandise product sales on a constant currency basis, net of discounts and promotions, divided by merchandise units. AUR is measured each period based on reported sales for the corresponding period presented.

Previous wording

The North America reportable segment’s total sales were $1.43 billion compared to $1.40 billion in the prior year quarter, or an increase of 2.1%. This increase in overall sales and same store sales was primarily from filling merchandise assortment gaps at key price points in fashion, which drove strong AUR growth and offset a decrease in units, as well as continued growth in services compared to the prior year quarter. These increases were impacted by the underperformance of the James Allen brand noted above. The number of units sold decreased 7.6% year over year, primarily in Banter. Same store sales increased 2.0% compared to a decrease of 3.7% in the prior year quarter.

Current wording

The North America reportable segment’s total sales were $1.30 billion compared to $1.26 billion in the prior year quarter, or an increase of 3.0%. Same store sales increased 3.0% compared to a decrease of 0.8% in the prior year quarter. These increases reflect the focus on the largest brands in both bridal and fashion, an enhanced assortment strategy, as well as growth in services. The improved assortment across the bridal and fashion categories drove strong AUR growth of 7.7% compared to the prior year third quarter. The number of units sold decreased 5.3% year over year, primarily driven by Banter. The overall increase was negatively impacted by the underperformance of the James Allen and Diamonds Direct brands as noted above.

Previous wording

The International reportable segment’s total sales increased 6.1%, or 0.4% at constant exchange rates, to $91.8 million compared to $86.5 million in the prior year quarter. The number of units sold decreased 4.6% and AUR increased 5.6% year over year. Same store sales increased 0.8% compared to an increase of 1.7% in the prior year quarter. The increase in total sales at constant exchange rates was slightly lower than the increase in same store sales due to store closures.

Current wording

The International reportable segment’s total sales increased 4.4%, or 1.6% at constant exchange rates, to $87.0 million compared to $83.3 million in the prior year quarter. The number of units sold decreased 3.0% and AUR increased 3.0% year over year. Same store sales increased 3.6% compared to an increase of 1.6% in the prior year quarter. The increase in total sales at constant exchange rates was slightly lower than the increase in same store sales due to store closures.

Previous wording

Signet’s total sales increased 2.5% to $3.08 billion compared to $3.00 billion in the prior year. Signet’s same store sales increased 2.2%, compared to a decrease of 6.2% in the prior year. As previously described above, these increases were primarily driven by filling merchandise assortment gaps at key price points both in fashion and in bridal, which led to higher AUR compared to the prior year. Services also continued to grow year over year, primarily due to higher attachment rates. These increases were impacted by the continued drag on same store sales from the James Allen brand as described above.

Current wording

Signet’s total sales increased 2.7% to $4.47 billion compared to $4.35 billion in the prior year. Signet’s same store sales increased 2.5%, compared to a decrease of 4.6% in the prior year. These increases were primarily driven by filling merchandise assortment gaps at key price points both in fashion and in bridal, particularly in the largest brands, which led to higher AUR compared to the prior year. Services also continued to grow year over year, primarily due to higher extended service arrangement attachment rates. These increases were unfavorably impacted by the same store sales decline in the James Allen and Diamonds Direct brands as described above.

Previous wording

E-commerce sales year to date were $656.3 million, down $13.9 million or 2.1%, compared to $670.2 million in the prior year. E-commerce sales accounted for 21.3% of year to date sales, down slightly from 22.3% of total sales in the prior year. The decrease in total e-commerce sales was driven by underperformance in the James Allen brand noted above. Brick and mortar same store sales increased 3.3% from the prior period.

Current wording

E-commerce sales year to date were $937.0 million, down $22.4 million or 2.3%, compared to $959.4 million in the prior year. E-commerce sales accounted for 21.0% of year to date sales, down slightly from 22.0% of total sales in the prior year. The decrease in total e-commerce sales was driven by the underperformance in the James Allen brand noted above. Brick and mortar same store sales increased 3.8% from the prior period.

Previous wording

The North America reportable segment’s total sales were $2.88 billion compared to $2.82 billion in the prior year, up 2.1%. This increase was primarily driven by the improvements previously noted, specifically within the three largest brands and increased fashion LGD penetration, partially offset by the underperformance of the James Allen brand. Same store sales increased 2.2% compared to a decrease of 6.6% in the prior year. North America’s AUR increased 9.1% compared to the prior year, while the number of units decreased 7.0%.

Current wording

The North America reportable segment’s total sales were $4.18 billion compared to $4.08 billion in the prior year, up 2.4%. This increase was primarily driven by the improvements previously noted, specifically within the three largest brands and increased fashion LGD penetration, partially offset by the underperformance of the James Allen and Diamonds Direct brands. Same store sales increased 2.4% compared to a decrease of 4.9% in the prior year. North America’s AUR increased 8.7% compared to the prior year, while the number of units decreased 6.5%.

Previous wording

The International reportable segment’s total sales increased 5.0% to $171.9 million compared to $163.7 million in the prior year. Total sales at constant exchange rates increased 0.9%. The number of units sold decreased 2.9% and AUR increased 4.1% over prior year.

Current wording

The International reportable segment’s total sales increased 4.8% to $258.9 million compared to $247.0 million in the prior year. Total sales at constant exchange rates increased 1.2%. The number of units sold decreased 3.0% and AUR increased 4.3% over prior year.

Previous wording

In the second quarter of Fiscal 2026, gross margin was $591.9 million or 38.6% of sales compared to $566.3 million or 38.0% of sales in the prior year quarter. For the 26 weeks ended August 2, 2025, gross margin was $1.2 billion or 38.7% of sales compared to $1.1 billion or 37.9% of sales in the prior year comparable period. Gross margin increased in total dollars and as a percentage of sales for both the 13 and 26 weeks ended August 2, 2025 reflecting merchandise margin expansion driven by higher AUR in fashion and bridal, as discussed above, as well as growth in services, refined promotional and assortment strategies, and leveraging of fixed costs such as occupancy.

Current wording

In the third quarter of Fiscal 2026, gross margin was $518.8 million or 37.3% of sales compared to $485.3 million or 36.0% of sales in the prior year quarter. For the 39 weeks ended November 1, 2025, gross margin was $1.7 billion or 38.3% of sales compared to $1.6 billion or 37.3% of sales in the prior year comparable period. Gross margin increased in total dollars and as a percentage of sales for both the 13 and 39 weeks ended November 1, 2025 reflecting merchandise margin expansion driven by higher AUR in fashion and bridal, as discussed above, as well as growth in services and refined pricing and assortment strategies, all while navigating pressure from tariffs and notable increases in gold prices. Improved leverage from occupancy and efficiencies in distribution, including accelerating scrap recovery to take advantage of higher gold prices, also continued to favorably impact overall gross margin.

Previous wording

In the second quarter of Fiscal 2026, SG&A was $505.3 million or 32.9% of sales compared to $498.4 million or 33.4% of sales in the prior year quarter. For the 26 weeks ended August 2, 2025, SG&A was $1.0 billion or 33.5% of sales compared to $1.0 billion or 33.8% of sales in the prior year comparable period. The decrease in SG&A as a percentage of sales for both the 13 and 26 weeks ended August 2, 2025 was primarily driven by reorganization savings and disciplined expense management, partially offset by incentive compensation reset and change management costs for the reorganization.

Current wording

In the third quarter of Fiscal 2026, SG&A was $485.3 million or 34.9% of sales compared to $469.6 million or 34.8% of sales in the prior year quarter. SG&A as a percentage of sales was nearly flat, despite a 70 basis point negative impact from higher incentive compensation, and reflects more efficient marketing spend and store labor planning, as well as favorability in transaction fee costs. For the 39 weeks ended November 1, 2025, SG&A was $1.5 billion or 33.9% of sales compared to $1.5 billion or 34.1% of sales in the prior year comparable period. The decrease in SG&A as a percentage of sales for the 39 weeks ended November 1, 2025 was primarily driven by reorganization savings and disciplined expense management, partially offset by higher incentive compensation and change management costs for the reorganization.

Previous wording

For the 13 and 26 weeks ended August 2, 2025, the Company recorded non-cash, pre-tax impairment charges of $80.2 million and $83.4 million, respectively, compared to charges of $166.2 million and $168.6 million in the 13 and 26 weeks ended August 3, 2024, respectively. In the first half of Fiscal 2026, $69.6 million of the charges related to impairment of goodwill and indefinite-lived trade names primarily related to the Digital brands, and $13.8 million related to the impairment of long-lived assets and cloud computing arrangements. In the first half of Fiscal 2025, $166.0 million of the charges related to impairment of goodwill and indefinite-lived trade names for Diamonds Direct and the Digital brands, and $2.6 million related to the impairment of long-lived assets. See Note 12 and Note 18 for additional information.

Current wording

For the 13 and 39 weeks ended November 1, 2025, the Company recorded non-cash, pre-tax impairment charges of $1.5 million and $84.9 million, respectively, compared to charges of $0.7 million and $169.3 million in the 13 and 39 weeks ended November 2, 2024, respectively. For the 13 weeks ended November 1, 2025 and November 2, 2024, asset impairments were related to the impairment of long-lived assets and cloud computing assets. For the 39 weeks ended November 1, 2025, $69.6 million of the charges related to impairment of goodwill and indefinite-lived trade names primarily related to the Digital brands, and $15.3 million related to the impairment of long-lived assets and cloud computing arrangements. For the 39 weeks ended November 2, 2024, $166.0 million of the charges related to impairment of goodwill and indefinite-lived trade names for Diamonds Direct and the Digital brands, and $3.3 million related to the impairment of long-lived assets. See Note 12 and Note 18 for additional information.

Previous wording

In the second quarter of Fiscal 2026, other operating expense was $3.6 million, compared to $2.6 million in the prior year quarter. In the first half of Fiscal 2026, other operating expense was $25.1 million, compared to $7.4 million in the prior year comparable period. The 13 and 26 weeks ended August 2, 2025 primarily included restructuring charges of $2.8 million and $21.8 million, respectively, related to the actions under the Company’s new corporate strategy, Grow Brand Love. The 13 and 26 weeks ended August 3, 2024 primarily included restructuring charges of $1.2 million and $5.8 million. See Note 17 and Note 18 for additional information.

Current wording

In the third quarter of Fiscal 2026, other operating expense was $8.1 million, compared to $5.8 million in the prior year quarter. For the 39 weeks ended November 1, 2025, other operating expense was $33.2 million, compared to $13.2 million in the prior year comparable period. The 13 and 39 weeks ended November 1, 2025 primarily included restructuring and related charges of $4.3 million and $26.1 million, respectively, related to the actions under the Company’s new corporate strategy, Grow Brand Love. The 13 and 39 weeks ended November 2, 2024 primarily included restructuring and related charges of $5.2 million and $11.0 million. See Note 17 and Note 18 for additional information.

Previous wording

For the second quarter of Fiscal 2026, operating income was $2.8 million, or 0.2% of sales, compared to an operating loss of $100.9 million or (6.8)% of sales in the prior year quarter. In the first half of Fiscal 2026, operating income was $50.9 million or 1.7% of sales compared to operating loss of $51.1 million or (1.7)% of sales in the prior year comparable period. The increase in operating income for both the 13 and 26 weeks ended August 2, 2025 was primarily driven by stronger sales performance and gross margins as described above, as well as lower goodwill and indefinite-lived intangible asset impairment charges taken in the current year, partially offset by higher restructuring costs.

Current wording

For the third quarter of Fiscal 2026, operating income was $23.9 million, or 1.7% of sales, compared to $9.2 million or 0.7% of sales in the prior year quarter. For the 39 weeks ended November 1, 2025, operating income was $74.8 million or 1.7% of sales compared to an operating loss of $41.9 million or (1.0)% of sales in the prior year comparable period. The increase in operating income for both the 13 and 39 weeks ended November 1, 2025 was primarily driven by stronger sales performance and gross margins as described above, as well as lower goodwill and indefinite-lived intangible asset impairment charges taken in the current year, partially offset by higher restructuring costs.

Previous wording

In the second quarter, operating income in the North America reportable segment was $23.0 million, or 1.6% of segment sales, and includes $80.2 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $1.0 million of restructuring charges. In the prior year quarter, operating loss in the North America reportable segment was $77.2 million, or (5.5)% of segment sales, and included $166.2 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $0.2 million of restructuring charges.

Current wording

In the third quarter, operating income in the North America reportable segment was $44.1 million, or 3.4% of segment sales, and includes $1.5 million of asset impairment charges primarily related to long-lived assets and cloud computing assets and $3.1 million of restructuring and related charges. In the prior year quarter, operating income in the North America reportable segment was $24.1 million, or 1.9% of segment sales, and included $5.4 million of restructuring and related charges and $0.8 million of asset impairment charges primarily related to long-lived assets.

Previous wording

In the first half of Fiscal 2026, operating income in the North America reportable segment was $106.0 million or 3.7% of segment sales, and includes $83.4 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $11.9 million of restructuring charges. In the first half of Fiscal 2025, operating income in the North America reportable segment was $6.0 million, or 0.2% of segment sales, and included $168.2 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $0.8 million of restructuring charges.

Current wording

In the 39 weeks ended November 1, 2025, operating income in the North America reportable segment was $150.1 million or 3.6% of segment sales, and includes $84.9 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $15.0 million of restructuring and related charges. In the 39 weeks ended November 2, 2024, operating income in the North America reportable segment was $30.1 million, or 0.7% of segment sales, and included $169.0 million of asset impairment charges primarily related to goodwill and indefinite-lived intangible assets and $6.2 million of restructuring and related charges.

Previous wording

In the second quarter, operating loss in the International reportable segment was $2.2 million, or (2.4)% of segment sales. In the prior year quarter, operating loss in the International reportable segment was $4.2 million, or (4.9)% of segment sales, and included $1.0 million of restructuring charges and $1.2 million of net losses from the previously announced divestiture of the UK prestige watch business.

Current wording

In the third quarter, operating loss in the International reportable segment was $6.4 million, or (7.4)% of segment sales and includes $2.1 million of losses from the previously announced divestiture of the UK prestige watch business and $0.3 million of restructuring and related charges. In the prior year quarter, operating loss in the International reportable segment was $3.7 million, or (4.4)% of segment sales, and included $0.4 million of restructuring and related charges.

Previous wording

In the first half of Fiscal 2026, operating loss in the International reportable segment was $9.2 million, or (5.4)% of segment sales. In the first half of Fiscal 2025, operating loss in the International reportable segment was $17.2 million, or (10.5)% of segment sales, and included $5.0 million of restructuring charges and $2.5 million of net losses from the previously announced divestiture of the UK prestige watch business.

Current wording

In the 39 weeks ended November 1, 2025, operating loss in the International reportable segment was $15.6 million, or (6.0)% of segment sales and includes $2.1 million of losses from the previously announced divestiture of the UK prestige watch business and $0.4 million of restructuring and related charges. In the 39 weeks ended November 2, 2024, operating loss in the International reportable segment was $20.9 million, or (8.5)% of segment sales, and included $5.4 million of restructuring charges and $2.5 million of net losses from the previously announced divestiture of the UK prestige watch business.

Previous wording

In the second quarter, corporate and unallocated expenses were $17.6 million, compared to $16.9 million in the prior year quarter. In the first half of Fiscal 2026, corporate and unallocated expenses were $41.6 million, compared to $34.2 million in the first half of Fiscal 2025. The Company incurred$1.7 million and $9.8 million of restructuring charges in the 13 and 26 weeks ended August 2, 2025, respectively.

Current wording

In the third quarter, corporate and unallocated expenses were $13.8 million, compared to $9.6 million in the prior year quarter. In the 39 weeks ended November 1, 2025, corporate and unallocated expenses were $55.4 million, compared to $43.8 million in the prior year comparable period. These increases were driven primarily by higher incentive compensation year over year discussed above. The Company incurred restructuring and related charges of $0.9 million and $10.7 million during the 13 and 39 weeks ended November 1, 2025, respectively. During the 13 and 39 weeks ended November 2, 2024, the Company incurred $0.8 million of leadership transition costs.

Previous wording

For the 13 and 26 weeks ended August 2, 2025, net interest expense was $0.1 million and net interest income was $0.7 million, respectively, compared to net interest income of $2.4 million and $11.0 million in the 13 and 26 weeks ended August 3, 2024, respectively. The decreases in the current year quarter and year to date period are the result of lower cash balances earning interest as compared with the prior year comparable periods, primarily due to cash used over the past year related to the Preferred Shares retirement, repayment of the Senior Notes and common share repurchases.

Current wording

For the 13 and 39 weeks ended November 1, 2025, net interest expense was $0.1 million and net interest income was $0.6 million, respectively, compared to net interest expense of $1.0 million and net interest income of $10.0 million in the 13 and 39 weeks ended November 2, 2024, respectively. The decrease in net interest expense for the current year quarter was the result of borrowings on the ABL in prior third quarter compared to no borrowings in the current year. For the year to date period, the lower interest income was the result of lower cash balances earning interest as compared with the prior year comparable periods, primarily due to common share repurchases and the cash used during Fiscal 2025 for Preferred Shares retirement and repayment of the Senior Notes.

Previous wording

In the second quarter of Fiscal 2026, income tax expense was $14.2 million, with an effective tax rate (“ETR”) of 278.4%, compared to income tax expense of $1.6 million, with an ETR of (1.7)%, 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 is effective for the Company beginning with Fiscal 2026.

Current wording

In the third quarter of Fiscal 2026, income tax expense was $5.2 million, with an effective tax rate (“ETR”) of 20.6%, compared to income tax expense of $1.4 million, with an ETR of 16.7%, 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 is effective for the Company beginning with Fiscal 2026.

Previous wording

The ETR for the second 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, including non-deductible goodwill impairment charges of $53.6 million. The ETR for the second quarter of Fiscal 2025 was primarily impacted by the discrete impairment charges of $166 million, of which $123 million relates to non-deductible goodwill.

Current wording

The ETR for the third quarter of Fiscal 2026 was higher than the Bermuda corporate income tax rate, primarily as a result of the unfavorable impact of foreign rate differences (primarily in the US). The ETR for the third quarter of Fiscal 2025 was different than the US federal income tax rate, primarily due to the favorable impacts of foreign rate differences and benefits from global reinsurance arrangements.

Previous wording

In the first half of Fiscal 2026, income tax expense was $26.3 million, with an ETR of 51.9%, compared to income tax expense of $8.1 million, with an ETR of (21.1)% in the prior year comparable period. The ETR for the 26 weeks ended August 2, 2025 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, including non-deductible goodwill impairment charges of $53.6 million and the tax shortfall for share-based compensation which vested during the year of $0.7 million. The year to date ETR in the prior year comparable period 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 discrete tax impacts during Fiscal 2025, including the non-deductible impairment charges described above and the excess tax benefit for share-based compensation which vested during the year of $5.0 million.

Current wording

In the 39 weeks ended November 1, 2025, income tax expense was $31.5 million, with an ETR of 41.5%, compared to income tax expense of $9.5 million, with an ETR of (31.8)% in the prior year comparable period. The ETR for the period was higher than the Bermuda corporate 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, including non-deductible goodwill impairment charges of $53.6 million and the tax shortfall for share-based compensation which vested during the year of $0.6 million. The year to date ETR in the prior year comparable period was different than the US federal income tax rate, primarily as a result of discrete tax items recognized in the 39 weeks ended November 2, 2024, including impairment charges of $166 million, of which $123 million related to non-deductible goodwill, andthe excess tax benefit for share-based compensation which vested during the year of $5.0 million. These discrete impacts were partially offset by the favorable impact of foreign rate differences and benefits from global reinsurance arrangements.

Previous 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.

Current wording

Net cash (debt) 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

(4) As described in Note 5, the Company recorded a deemed dividend to net (loss) income 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.

Current wording

(6) 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

(5) Adjusted diluted EPS for the 13 and 26 weeks ended August 3, 2024 was calculated using 44.9 million and 47.9 million diluted weighted average common shares outstanding, respectively. 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

(7) 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.

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 August 2, 2025, the Company had $281.4 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 August 2, 2025.

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 November 1, 2025, the Company had $234.7 million of cash and cash equivalents and no outstanding borrowings on the ABL. The available borrowing capacity on the ABL was $1.2 billion as of November 1, 2025.

Previous wording

The strategic imperatives of the Company’s Grow Brand Love transformation strategy have been designed to accelerate growth by building on a strong core foundation to create shareholder value. The Company will focus on increasing market share in core areas such as Bridal, while expanding into categories like self-purchase and gifting. In order to achieve these goals, the Company is in the process of restructuring to streamline operations, increase efficiencies, improve accountability and reduce costs. Streamlining the organization is expected to enable our new go-to-market strategies and contribute towards our efforts to strengthen our brand portfolio. We are also optimizing our real estate footprint to support the positioning of our brands and modernizing our stores through capital improvements. These real estate initiatives will include the closure of underperforming stores, repositioning stores out of declining venues, renovation of stores and an increased focus on transference from closed locations to capitalize on brand equity across the portfolio. The Company invested $153.0 million for capital expenditures in Fiscal 2025 and has planned for capital expenditures of up to $160 million in Fiscal 2026, reflecting primarily investments in new stores and renovations as described above, as well as additional digital and technology advancements.

Current wording

The strategic imperatives of the Company’s Grow Brand Love transformation strategy have been designed to accelerate growth by building on a strong core foundation to create shareholder value. The Company will focus on increasing market share in core areas such as Bridal, while expanding into categories like self-purchase and gifting. In order to achieve these goals, the Company has reorganized strategic areas of our business such as marketing and sourcing to streamline operations, increase efficiencies, improve accountability and reduce costs. This reorganization, which is substantially complete, has already begun to enable our new go-to-market strategies and contribute towards our efforts to strengthen our brand portfolio. We are also optimizing our real estate footprint to support the positioning of our brands and modernizing our stores through capital improvements. These real estate initiatives will include the closure of underperforming stores, repositioning stores out of declining venues, renovation of stores and an increased focus on transference from closed locations to capitalize on brand equity across the portfolio. The Company invested $153.0 million for capital expenditures in Fiscal 2025 and has planned for capital expenditures of up to $160 million in Fiscal 2026, reflecting primarily investments in new stores and renovations as described above, as well as additional digital and technology advancements.