SIGNET JEWELERS LTD

1. Organization and principal accounting policies

Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is a specialty jewelry retailer operating through its 100% owned subsidiaries with sales primarily in the United States (“US”), United Kingdom (“UK”) and Canada. Signet manages its business asthree reportable segments: North America, International, and Other. The “Other” reportable segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. See Note 4 for information regarding the Company’s reportable segments.

Signet’s business is seasonal, with the fourth quarter historically accounting for approximately 35-40% of annual sales as well as for a substantial portion of the annual operating income and cash flows.

Basis of preparation

The condensed consolidated financial statements of the Company are prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles (“US GAAP” or “GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. Intercompany transactions and balances have been eliminated in consolidation. The Company has reclassified certain prior year amounts to conform to the current year presentation. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of the results to be expected for the full fiscal year or for any other interim period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on March 19, 2026.

Use of estimates

The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of inventories, deferred revenue, employee compensation, income taxes, contingencies, leases, asset impairments for goodwill, indefinite-lived intangible and long-lived assets and the depreciation and amortization of long-lived assets.

Fiscal year

The Company’s fiscal year ends on the Saturday nearest to January 31 st. Fiscal 2027 and Fiscal 2026 refer to the 52-week periods ending January 30, 2027 and ended January 31, 2026, respectively. Within these condensed consolidated financial statements, the first quarter of Fiscal 2027 and 2026 refer to the 13 weeks ended May 2, 2026 and May 3, 2025, respectively.

Foreign currency translation

The financial position and operating results of certain foreign operations, including certain subsidiaries operating in the UK as part of the International reportable segment and Canada as part of the North America reportable segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the condensed consolidated balance sheet dates, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying condensed consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within other operating expense, net within the condensed consolidated statements of operations.

2. New accounting pronouncements

The following section provides a description of new accounting pronouncements (“Accounting Standard Update” or “ASU”) issued by the Financial Accounting Standards Board (“FASB”) that are applicable to the Company.

New accounting pronouncements recently adopted

There were no new accounting pronouncements adopted to date during Fiscal 2027 that have a material impact on the Company’s consolidated financial position or results of operations.

New accounting pronouncements issued but not yet adopted

Income Statement Expense Disaggregation Disclosures (Topic 220-40) (“ASU 2024-03”)

In November 2024, the FASB issued ASU 2024-03. This ASU requires disclosure of additional information about certain income statement expense line items, such as cost of sales and selling, general and administrative expenses (“SG&A”). Prescribed expense categories within each line item will be required to be disaggregated in tabular format. Prescribed expense categories include purchases of inventory, employee compensation, depreciation, and intangible asset amortization. Other material expense categories identified within each income statement expense line item may also require disclosure. Total selling expenses and a definition of selling expenses are required to be disclosed.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied on a prospective or retrospective basis. This ASU will have no impact on the Company’s consolidated financial condition or results of operations. The Company is evaluating the impact of this ASU on its consolidated financial statement disclosures.

Internal-Use Software (Topic 350-40) (“ASU 2025-06”)

In September 2025, the FASB issued ASU 2025-06. This ASU requires entities to start capitalizing software costs once management has authorized and committed to funding the software project, it is probable the project will be completed and the software will be used to perform the function intended. This ASU removes the prescriptive software development stages referenced in prior guidance. The amendments in this ASU specify the disclosures for internal-use software costs follow the same disclosure requirements as property, plant, and equipment, regardless of how these costs are presented in the consolidated financial statements.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual periods, with early adoption permitted, and may be applied on a prospective or retrospective basis. The Company is evaluating the impact of this ASU on its consolidated financial statements.

3. Revenue recognition

The following table provides the Company’s total sales, disaggregated by brand, for the 13 weeks ended May 2, 2026 and May 3, 2025:

(1) Other primarily includes sales from the Company’s diamond sourcing operation and loose diamonds.

The following table provides the Company’s total sales, disaggregated by major product, for the 13 weeks ended May 2, 2026 and May 3, 2025:

(1) Services primarily includes revenue recognized from extended service plans, repairs and subscriptions.

(2) Other primarily includes sales from the Company’s diamond sourcing operation and other miscellaneous non-jewelry sales.

(3) Certain amounts have been reclassified, primarily between bridal and fashion, to harmonize product categorization within the North America and International segments.

The following table provides the Company’s total sales, disaggregated by channel, for the 13 weeks ended May 2, 2026 and May 3, 2025:

(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 using estimates of future claims costs expected to be incurred, which are derived primarily from historical patterns of actual claims costs. Management regularly reviews the trends in historical claims and considers a range of potential outcomes to determine whether a change in its recognition rates or periods is required. A significant change in the Company’s estimated future claims cost could impact either the overall claims patterns or the recognition periods over which the Company is expected to fulfill its obligations under the ESP, either of which could result in a material change to revenues in future periods.

Deferred ESP selling costs

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. Amortization of deferred ESP selling costs is included within SG&A in the condensed consolidated statements of operations. Amortization of deferred ESP selling costs was$11.6 million and $11.5 million during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively.

Unamortized deferred ESP selling costs as of May 2, 2026, January 31, 2026 and May 3, 2025 were as follows:

Deferred revenue

Deferred revenue as of May 2, 2026, January 31, 2026 and May 3, 2025 was as follows:

(1) Other deferred revenue primarily includes revenue collected from customers for custom orders and e-commerce orders, for which control has not yet transferred to the customer.

(1) Includes impact of foreign exchange translation.

(2)The Company recognized sales of $90.8 million and $87.6 million during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively, related to deferred revenue that existed at the beginning of the periods.

4. Segment information

Signet’s chief executive officer (“CEO”) is the Company’s chief operating decision maker (“CODM”). The CODM regularly reviews segment sales and segment operating income, after the elimination of any inter-segment transactions, to determine resource allocations between segments. Signet’s sales are primarily derived from the retailing of jewelry, watches, services and other products as generated through the management of its segments. Segment operating income, which excludes the impact of certain items management believes are not necessarily reflective of normal operating performance, is utilized by the CODM to assess segment profitability. Segment operating income is also used by the CODM to monitor and assess segment results compared to prior periods, forecasted results, and Signet’s annual operating plan.

The Company aggregates operating segments with similar economic and operating characteristics. Signet manages its business asthree reportable segments: North America, International, and Other. The Company allocates certain support center costs between operating segments, and the remainder of the unallocated costs are included with the corporate and unallocated expenses presented.

The North America reportable segment operates across the US and Canada. Its US stores operate nationally in malls and off-mall locations, as well as online, principally as Kay (Kay Jewelers and Kay Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared Jewelers and Jared Vault), Blue Nile, James Allen, Diamonds Direct, and Banter by Piercing Pagoda. Its Canadian stores operate as Peoples Jewellers.

The International reportable segment operates stores in the UK and Republic of Ireland as well as online. Its stores operate in shopping malls and off-mall locations (i.e. high street) under the H.Samuel and Ernest Jones brands.

The Other reportable segment primarily consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones.

Financial information for each of Signet’s reportable segments for the 13 weeks ended May 2, 2026 and May 3, 2025 is presented in the tables below.

(1)Restructuring and related charges and asset impairment charges during the 13 weeks ended May 2, 2026 and May 3, 2025 were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Restructuring and related charges during the 13 weeks ended May 2, 2026 include $32.7 million of inventory write-downs related to the planned disposal of inventory in connection with the discontinuance of James Allen and Rocksbox as separately operated brands and the decommissioning of their respective websites. See Note 16 for additional information.

The following tables provide the Company’s total depreciation and amortization and total capital expenditures, by reportable segment, for the 13 weeks ended May 2, 2026 and May 3, 2025:

The following tables provide the Company’s total assets and total long-lived assets, by reportable segment, as of May 2, 2026, January 31, 2026 and May 3, 2025:

(1)Includes property, plant and equipment, net; and operating lease right-of-use assets.

5. Shareholders’ equity

Dividends on common shares

Dividends declared on the common shares during the 13 weeks ended May 2, 2026 and May 3, 2025 were as follows:

(1)Signet’s common dividend policy results in the quarterly dividend payment date being a quarter in arrears from the declaration date. As of May 2, 2026 and May 3, 2025, there was $14.1 million and $13.4 million, respectively, of accrued dividends recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets. Accrued dividends as of May 2, 2026 and May 3, 2025 included $0.6 million and $0.6 million, respectively, related to time-based restricted stock units.

Share repurchases

Signet may from time to time repurchase common shares under various share repurchase programs authorized by Signet’s Board of Directors (the “Board”). Repurchases may be made in the open market through 10b5-1 trading plans, through block trades, through accelerated share repurchase agreements or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company at its discretion and will be subject to economic and market conditions, stock prices, applicable legal requirements and other factors. The repurchase programs are funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares are held as treasury shares and used by Signet primarily for issuance of share-based compensation awards, or for general corporate purposes.

The Board has authorized a total of approximately $2.1 billion of repurchases to be made under the 2017 Share Repurchase Program (the “2017 Program”). Since inception of the 2017 Program, the Company has repurchased approximately $1.7 billion of shares, with $435.2 million of shares authorized for repurchase remaining as of May 2, 2026.

The share repurchase activity during the 13 weeks ended May 2, 2026 and May 3, 2025 was as follows:

(1)Includes amounts paid for commissions.

6. Earnings per common share (“EPS”)

Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. The computation of basic EPS for the 13 weeks ended May 2, 2026 and May 3, 2025 is outlined in the table below:

The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including time-based restricted stock units, performance-based restricted stock units, and stock options issued under the Omnibus Plan.

The computation of diluted EPS for the 13 weeks ended May 2, 2026 and May 3, 2025 is outlined in the table below:

The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be antidilutive:

7. Accumulated other comprehensive income (loss)

The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax for the 13 weeks ended May 2, 2026:

The amounts reclassified from AOCI to earnings were as follows for the 13 weeks ended May 2, 2026 and May 3, 2025:

8. Income taxes

During the 13 weeks ended May 2, 2026, the Company’s effective tax rate 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 Company’s effective tax rate for the same period during the prior year was higher than the Bermuda corporate income tax rate, primarily as a result ofthe unfavorable impact of foreign rate differences (primarily in the US) and unfavorable discrete tax items recognized in the 13 weeks ended May 3, 2025, includingthe tax shortfall for share-based compensation which vested during the year of $0.8 million.

As of May 2, 2026, there has been no material change in the amounts of unrecognized tax benefits, or the related accrued interest and penalties (where appropriate), in respect of uncertain tax positions identified and recorded as of January 31, 2026.

9. Inventories

The following table provides the components of the Company’s inventories as of May 2, 2026, January 31, 2026 and May 3, 2025:

10. Leases

The following table provides the components of the Company’s total lease cost for the 13 weeks ended May 2, 2026 and May 3, 2025:

11. Goodwill and intangibles

The following summarizes the activity of the Company’s goodwill and intangible assets during the periods presented:

Fiscal 2026

During the 13 weeks ended May 3, 2025, the Company completed its quarterly triggering event assessment and determined that no triggering events had occurred through the end of the first quarter of Fiscal 2026 requiring an interim impairment assessment for any reporting units with goodwill and indefinite-lived intangible assets.

Fiscal 2027

During the 13 weeks ended May 2, 2026, the Company completed its quarterly triggering event assessment and determined that no triggering events had occurred through the end of the first quarter of Fiscal 2027 that would require an interim impairment assessment for any reporting units with goodwill and indefinite-lived intangible assets.

Management noted uncertainties exist related to the macroeconomic environment in the US and abroad, including energy prices, tariffs, economic and tax policy, affordability and interest rates. These factors could unfavorably impact the cost of the Company’s products, consumer confidence and discretionary spending, and thus may impact the key assumptions used to estimate fair value, such as sales trends, margin trends, long-term growth rates and discount rates. These factors could also negatively affect the share price of the Company’s common stock. An increase in the discount rate and/or a further softening of sales and operating income trends for any of the Company’s reporting units or related trade names, particularly during peak selling seasons, could result in a decline in the estimated fair values of the indefinite-lived intangible assets, including goodwill, which could result in future material impairment charges.

Goodwill

The following table summarizes the Company’s goodwill by reportable segment:

(1) The carrying amount of goodwill is presented net of accumulated impairment losses of $902.1 million as of May 2, 2026 and January 31, 2026.

Intangibles

Definite-lived and indefinite-lived intangible assets consist primarily of trade names and are recorded within intangible assets, net, on the condensed consolidated balance sheets. Intangible liabilities, net consists of unfavorable contracts and are recorded within accrued expenses and other current liabilities on the condensed consolidated balance sheets.

The following table provides additional detail regarding the composition of intangible assets and liabilities as of May 2, 2026, January 31, 2026 and May 3, 2025:

(1) The change in the indefinite-lived intangible asset balances during the periods presented was primarily due to the trade name impairment charges recorded during the second and fourth quarters of Fiscal 2026.

12. Derivatives

Derivative transactions are used by Signet for risk management purposes to address risks inherent in the Company’s business operations and sources of financing. The Company is currently utilizing financial derivatives to mitigate foreign currency and commodity price risks. Signet does not enter into derivative transactions for speculative purposes.

The following types of derivative financial instruments are utilized by the Company to mitigate certain risk exposures related to changes in foreign exchange rates and commodity prices:

Foreign currency exchange forward contracts (designated) — These contracts are entered into to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of May 2, 2026 was $24.7 million (January 31, 2026 and May 3, 2025: $15.4 million and $11.4 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (January 31, 2026 and May 3, 2025:11 months and 11 months, respectively).

Foreign currency exchange forward contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to limit the impact of movements in foreign exchange rates on recognized foreign currency payables and to hedge currency flows through Signet’s bank accounts to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of May 2, 2026 was $85.6 million (January 31, 2026 and May 3, 2025: $100.8 million and $114.3 million, respectively).

Commodity forward contracts (designated) — The Company has exposure to movements in the price of the underlying precious metal raw material components of the products sold by Signet. Signet’s policy is to reduce the impact of precious metal commodity price volatility, such as gold, on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the Company’s Chief Operating and Financial Officer. In particular, when price and volume warrant such actions, Signet undertakes hedging of its requirements for gold through the use of forward purchase contracts or option contracts. Signet began hedging its exposure to gold prices during the second quarter of Fiscal 2026. The total notional amount of these forward contracts outstanding as of May 2, 2026 was approximately 26,000 ounces of gold (January 31, 2026:35,000 ounces). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (January 31, 2026:11 months).

The bank counterparties to the derivative instruments expose the Company to credit-related losses in the event of their non-performance. However, to mitigate that risk, the Company only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of May 2, 2026, the Company believes that this credit risk did not materially change the fair value of the derivative instruments.

The following table summarizes the fair value and presentation of derivative instruments in the condensed consolidated balance sheets as of May 2, 2026, January 31, 2026 and May 3, 2025:

Derivatives designated as cash flow hedges

The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships as of May 2, 2026, January 31, 2026 and May 3, 2025:

The following tables summarize the effect of derivative instruments designated as cash flow hedges on OCI and the condensed consolidated statements of operations for the 13 weeks ended May 2, 2026 and May 3, 2025:

Foreign currency contracts

Commodity contracts

(1) Refer to the condensed consolidated statements of operations for total amounts of each financial statement caption impacted by cash flow hedges.

There were no discontinued cash flow hedges during the 13 weeks ended May 2, 2026 and May 3, 2025 as all forecasted transactions are expected to occur as originally planned. As of May 2, 2026, based on current valuations, the Company expects approximately $30.3 million of net pre-tax derivative gains to be reclassified out of AOCI into earnings within the next 12 months.

Derivatives not designated as cash flow hedges

The following table summarizes the gains (losses) recognized from the Company’s derivatives instruments not designated as cash flow hedges within other operating expense, net in the condensed consolidated statements of operations for the 13 weeks ended May 2, 2026 and May 3, 2025:

13. Fair value measurement

The estimated fair value of Signet’s financial instruments held or issued to finance the Company’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories:

Level 1—quoted market prices in active markets for identical assets and liabilities

Level 2—observable market based inputs or unobservable inputs that are corroborated by market data

Level 3—unobservable inputs that are not corroborated by market data

The Company determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods used by the Company to determine fair value on an instrument-specific basis as of May 2, 2026, January 31, 2026 and May 3, 2025 are detailed below:

Investments in US Treasury securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. The fair value of derivative financial instruments has been determined based on market value equivalents on the balance sheet dates, taking into account the current interest rate environment and foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 12 for additional information related to the Company’s derivatives.

The carrying amounts of cash and cash equivalents, other current assets, accounts payable, accrued expenses and other current liabilities, and income taxes approximate fair value because of the short-term maturity of these amounts.

14. Warranty reserve

Certain brands within the North America reportable segment provide a product lifetime diamond guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six-month inspection policy, the Company will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. The Company estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. A similar product lifetime guarantee is also provided on color gemstones. The warranty reserve for diamond and gemstone guarantees, included in accrued expenses and other current liabilities and other liabilities - non-current, is as follows:

(1)Includes impact of foreign exchange translation.

15. Other operating expense, net

The following table provides the components of other operating expense, net for the 13 weeks ended May 2, 2026 and May 3, 2025:

(1)See Note 16 for additional information.

16. Restructuring

During the first quarter of Fiscal 2026, the Company announced its new corporate strategy, Grow Brand Love. In connection with this strategic transformation, the Company has reorganized its brand structure and certain functional areas primarily within its North America reportable segment, and the Company is optimizing its store fleet by exiting underperforming stores and repositioning stores from declining venues (the “Plan”). As a result of the Plan, the Company expects to incur restructuring and related costs, primarily consisting of severance and other employee-related costs, contract termination costs, and store closure costs, including inventory write-downs, asset disposals and asset impairment charges.

During the 13 weeks ended May 2, 2026 and May 3, 2025, restructuring and related charges of $7.5 million and $19.0 million, respectively, were recognized, primarily related to severance and other employee-related costs, as well as store closure costs. The Company had accrued restructuring charges related to the Plan of $6.3 million as of May 2, 2026 (January 31, 2026 and May 3, 2025: $10.2 million and $18.2 million, respectively), primarily for severance, which are included in accrued expenses and other current liabilities in the condensed consolidated balance sheets.

The following table summarizes the restructuring and related charges incurred for the Plan, which are recorded within other operating expense, net in the condensed consolidated statements of operations for the 13 weeks ended May 2, 2026 and May 3, 2025, as well as the cumulative amount incurred under the Plan through May 2, 2026:

The following table summarizes the activity related to Plan liabilities for Fiscal 2027:

In addition to the charges described above, the Company incurred $32.7 million of inventory write-down charges during the 13 weeks ended May 2, 2026. These charges are associated with the planned disposal of inventory in connection with the discontinuance of James Allen and Rocksbox as separately operated brands and the decommissioning of their respective websites as these brands are transitioned to collections within remaining brands as part of the initiatives under the Plan. These charges are recorded within cost of sales in the condensed consolidated statements of operations. The Company also incurred $1.5 million and $3.2 million of asset impairment charges during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively, as a result of the Plan. These charges were incurred primarily for store assets, which are recorded within other operating expense, net in the condensed consolidated statements of operations. The cumulative amount of asset impairment charges incurred under the Plan total $18.2 million through May 2, 2026.

Total estimated costs related to the Plan are expected to range from approximately $90 million to $100 million, including approximately $55 million to $60 million of estimated non-cash charges primarily for inventory write-downs, asset disposals and impairments. The Company expects the Plan will be substantially completed by the end of Fiscal 2027.

17. Supplier finance program

The Company entered into a supplier finance program during Fiscal 2024. Under this program, a financial intermediary acts as the Company’s paying agent with respect to accounts payable due to certain suppliers. The Company agrees to pay the financial intermediary the stated amount of the confirmed invoices from the designated suppliers on the original maturity dates of the invoices. The supplier finance program enables Company suppliers to be paid by the financial intermediary earlier than the due date on the applicable invoice. The Company negotiates payment terms directly with its suppliers for the purchase of goods and services. No guarantees or collateral are provided by the Company under the supplier finance program. As of May 2, 2026, the Company had $7.8 million of confirmed invoices outstanding under the supplier finance program (January 31, 2026 and May 3, 2025: $9.0 million and $8.6 million, respectively). All activity related to the supplier finance program is included inaccounts payable in the condensed consolidated balance sheets and within operating activities in the condensed consolidated statements of cash flows.

18. Commitments and contingencies

Legal proceedings

The Company is routinely a party to various legal proceedings arising in the ordinary course of business. These legal proceedings primarily include employment-related and commercial claims. The Company does not believe that the outcome of any such legal proceedings currently pending against the Company would have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.