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 second quarter and year-to-date period of Fiscal 2027 and Fiscal 2026 refer to the 13 and 26 weeks ended August 1, 2026 and August 2, 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.

Tariff refunds

The International Emergency Economic Powers Act (“IEEPA”) was used by the US Government to impose tariffs on imports. On February 20, 2026, the US Supreme Court issued a decision invalidating the broad-based tariffs imposed under IEEPA. The Court of International Trade has ordered US Customs and Border Protection (“CBP”) to begin refunding tariffs imposed under IEEPA. Beginning in Fiscal 2027, the Company submitted its claims for refunds of the IEEPA tariffs previously paid through the CBP portal established to process such claims.

The Company applied a gain contingency model to determine the timing of recognition of the refunds of the IEEPA tariffs previously paid, and thus has recognized the refunds as they become realized or realizable based on the approval status in the CBP portal. Refunds received as of end of the second quarter of Fiscal 2027 were $20.4 million, of which $14.9 million was recognized as a reduction to cost of sales, $4.8 million was applied as a reduction to tariffs that remained in inventory, and $0.7 million of interest was recognized in other non-operating (expense) income, net.

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 and 26 weeks ended August 1, 2026 and August 2, 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 and 26 weeks ended August 1, 2026 and August 2, 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 and 26 weeks ended August 1, 2026 and August 2, 2025:

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

Credit card outsourcing programs

On September 4, 2026, the Company, through its subsidiaries Sterling Jewelers Inc. (“Sterling”) and Zale Delaware, Inc. (“Zale”), entered into a Second Amended and Restated Credit Card Program Agreement (the “Program Agreement”) with Comenity Bank (“Comenity Bank”) and Comenity Capital Bank (“Comenity Capital Bank” and, together with Comenity Bank, “Bread”), each a subsidiary of Bread Financial Holdings, Inc. The Program Agreement amends and restates in their entirety (i) the Amended and Restated Credit Card Program Agreement, dated May 14, 2021, by and between Sterling and Comenity Bank and (ii) the Amended and Restated Private Label Credit Card Program Agreement, dated May 14, 2021, by and between Zale and Comenity Capital Bank, and continues the programs established thereunder as a single combined credit card program (the “Program”). The Program Agreement has an initial term through December 31, 2035.

The purpose of the Program is for Bread to, among other things, continue operating a primary source private label credit card offering to our customers to foster greater customer loyalty and drive sales growth. In addition, the Company receives credit card revenue through the Program Agreement for providing a combination of interrelated services and intellectual property to Bread in support of the Program. The Program Agreement includes a signing bonus and profit-sharing arrangement which will be recognized as revenue by the Company throughout the term of the Program Agreement.

The Company had previously entered into an agreement with Concora Credit Inc. (“Concora”) to provide a second look credit offering to non-prime customers. The Concora agreements with Sterling and Zale are effective through December 31, 2028, and were not impacted by the new Program Agreement with Bread.

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 transaction costs

All direct costs associated with the sale of the ESP are deferred and amortized in proportion to the revenue recognized and presented 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 transaction costs is included within cost of sales and SG&A in the condensed consolidated statements of operations. Amortization of deferred ESP transaction costs was $11.2 million and $22.8 million during the 13 and 26 weeks ended August 1, 2026, respectively and $11.3 million and $22.8 million during the 13 and 26 weeks ended August 2, 2025, respectively.

Unamortized deferred ESP transaction costs as of August 1, 2026, January 31, 2026 and August 2, 2025 were as follows:

Deferred revenue

Deferred revenue as of August 1, 2026, January 31, 2026 and August 2, 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 $80.0 million and $170.8 million during the 13 and 26 weeks ended August 1, 2026, respectively, and $77.5 million and $165.1 million during the 13 and 26 weeks ended August 2, 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, 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 and 26 weeks ended August 1, 2026 and August 2, 2025 is presented in the tables below.

(1)Asset impairment charges during the 13 and 26 weeks ended August 1, 2026 were primarily related to indefinite-lived intangible assets. Asset impairment charges during the 13 and 26 weeks ended August 2, 2025 related primarily to goodwill and indefinite-lived assets. See Note 11 for additional information.

(2)Restructuring and related charges during the 13 and 26 weeks ended August 1, 2026 and August 2, 2025 were incurred primarily as a result of the Company’s Grow Brand Love strategy initiatives. Restructuring and related charges during the 13 and 26 weeks ended August 1, 2026 include a $1.4 million credit and $31.3 million of charges, respectively, related to the 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 and 26 weeks ended August 1, 2026 and August 2, 2025:

The following tables provide the Company’s total assets and total long-lived assets, by reportable segment, as of August 1, 2026, January 31, 2026 and August 2, 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 26 weeks ended August 1, 2026 and August 2, 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 August 1, 2026 and August 2, 2025, there was $13.8 million and $13.3 million, respectively, of accrued dividends recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets. Accrued dividends as of August 1, 2026 and August 2, 2025 included $0.8 million and $0.3 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”) as of the end of the second quarter of Fiscal 2027. During the second quarter of Fiscal 2027, the Company entered into a master confirmation and supplemental confirmation (collectively, the “ASR Agreement”), in which the Company paid a third-party financial institution $50 million to repurchase the Company’s common shares. Upon settlement, the Company received final deliveries totaling approximately 590,000 common shares. Since inception of the 2017 Program, the Company has repurchased approximately $1.8 billion of shares, with $348.0 million of shares authorized for repurchase remaining as of August 1, 2026. Subsequent to quarter end, the Board approved a further increase to the multi-year authorization under the 2017 Program bringing the total remaining authorization to approximately $700 million effective September 9, 2026.

The share repurchase activity during the 26 weeks ended August 1, 2026 and August 2, 2025 was as follows:

(1)Includes amounts paid for commissions.

6. Earnings per common share (“EPS”)

Basic EPS is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The computation of basic EPS for the 13 and 26 weeks ended August 1, 2026 and August 2, 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 and 26 weeks ended August 1, 2026 and August 2, 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 26 weeks ended August 1, 2026:

The amounts reclassified from AOCI to earnings were as follows for the 13 and 26 weeks ended August 1, 2026 and August 2, 2025:

8. Income taxes

During the 26 weeks ended August 1, 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 26 weeks ended August 2, 2025, including non-deductible goodwill impairment charges of $53.6 million andthe tax shortfall for share-based compensation which vested during the year of $0.7 million.

As of August 1, 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. The Company’s income tax positions are based upon interpretation of the tax laws in effect in the various countries in which Signet operates at the time the position was recognized. If these tax laws, treaties or regulations were to change, or any tax authority were to successfully challenge Signet’s assessment of the effects of such laws, treaties and regulations, a higher effective tax rate and/or higher cash tax payments may result, which could have a material impact on the Company’s results of operations or cash flows.

9. Inventories

The following table provides the components of the Company’s inventories as of August 1, 2026, January 31, 2026 and August 2, 2025:

10. Leases

The following table provides the components of the Company’s total lease cost for the 13 and 26 weeks ended August 1, 2026 and August 2, 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 August 2, 2025, the Company completed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names. The Company utilized the quantitative assessment for all reporting units and indefinite-lived trade names. Through the quantitative assessments, management reevaluated its long-term cash flow projections, primarily related to sales growth and potential effects of tariffs.

Based on the results of these quantitative impairment assessments, the Company determined that no impairment was required for the Sterling, Zales and Diamonds Direct reporting units, nor was any impairment required for the Zales Jewelry, Zales Outlet, Piercing Pagoda, Peoples or Blue Nile indefinite-lived trade names, as the estimated fair values exceeded the carrying values.

During the second quarter of Fiscal 2026, the Company recognized total pre-tax impairment charges in the condensed consolidated statement of operations within its North America reportable segment of $69.6 million for the Digital brands reporting unit and the James Allen and Diamonds Direct trade names. The impairment charges consisted of $53.6 million for Digital brands goodwill, $13 million for the James Allen trade name and $3 million for the Diamonds Direct trade name. These impairment charges were driven primarily by the decline in long-term cash flow projections of this business, particularly in the James Allen brand due to continued challenges with assortment and its competitive position in the market. Management also determined an increase in discount rates was required to reflect the current interest rate environment at the valuation date, additional forecast risk for the Digital brands due to the challenges at James Allen noted above, and additional uncertainty related to potential tariff impacts on the business.

The Company completed its quarterly triggering event assessments and determined that no triggering events had occurred through the end of the second 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 August 1, 2026, the Company completed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names. The Company utilized the qualitative assessment for all reporting units and trade names, except for the Diamonds Direct reporting unit and trade name, as well as the Piercing Pagoda trade name, for which quantitative assessments were utilized. Through the qualitative assessments performed, the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values.

As part of the quantitative assessments, management reevaluated its long-term cash flow projections, primarily related to sales growth, for both Diamonds Direct and Piercing Pagoda. Based on the results of these quantitative impairment assessments, the Company determined that no impairment was required for the Diamonds Direct reporting unit or for the Piercing Pagoda indefinite-lived trade name, as the estimated fair values exceeded the carrying values. During the second quarter of Fiscal 2027, the Company recognized a pre-tax impairment charge in the condensed consolidated statement of operations within its North America reportable segment related to the Diamonds Direct trade name of $19 million as its carrying value exceeded its estimated fair value.

The Company completed its quarterly triggering event assessments and determined that no triggering events had occurred through the end of the second 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 also have an impact on 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 August 1, 2026 and January 31, 2026.

(2) The change in goodwill during the period is due to the acquisition of The Clear Cut on June 1, 2026 and is based on a preliminary purchase price allocation.

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 August 1, 2026, January 31, 2026 and August 2, 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 quarter of Fiscal 2027 as described above, as well as the fourth quarter 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 August 1, 2026 was $19.5 million (January 31, 2026 and August 2, 2025: $15.4 million and $23.1 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (January 31, 2026 and August 2, 2025:11 months and 12 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 August 1, 2026 was $84.4 million (January 31, 2026 and August 2, 2025: $100.8 million and $123.7 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 August 1, 2026 was approximately 29,000 ounces of gold (January 31,

2026 and August 2, 2025:35,000 ounces and 16,000 ounces, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (January 31, 2026 and August 2, 2025:11 months).

The bank counterparties to the derivative instruments expose the Company to credit-related losses in the event of their non-performance. To mitigate that risk, the Company only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of August 1, 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 August 1, 2026, January 31, 2026 and August 2, 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 August 1, 2026, January 31, 2026 and August 2, 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 and 26 weeks ended August 1, 2026 and August 2, 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 26 weeks ended August 1, 2026 and August 2, 2025 as all forecasted transactions are expected to occur as originally planned. As of August 1, 2026, based on current valuations, the Company expects approximately $13.8 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 and 26 weeks ended August 1, 2026 and August 2, 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 August 1, 2026, January 31, 2026 and August 2, 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.

Goodwill and other indefinite-lived intangible assets are evaluated for impairment annually or more frequently if events or conditions were to indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may be greater than its fair value. As described in Note 11, during the second quarters of Fiscal 2027 and Fiscal 2026, the Company performed annual impairment assessments on a quantitative basis for certain reporting units and indefinite-lived intangible assets as of May 30, 2026 and May 31, 2025, respectively. The fair values used in these assessments were calculated using a combination of the income and market approaches for the reporting units and the relief from royalty method for the indefinite-lived intangible assets. The fair values are Level 3 valuations based on certain unobservable inputs, including estimated sales growth, projected cash flows, discount rates, comparable company earnings multiples, and royalty rates, aligned with market-based assumptions. These unobservable inputs would be utilized by market participants in valuing these assets or prices of similar assets. See Note 11 for additional information.

As described further in Note 15, the Company determined there was an other-than-temporary decline in the fair value of its investment in Sasmat, which is accounted for under the equity method. In order to determine the fair value of this investment and allowance for credit losses on the Company’s loans receivable from Sasmat, the Company used a contingent claims approach to estimate the amount of assets that would be available to both the debt and equity holders of the entity. This valuation utilized primarily Level 3 inputs, and included an option valuation model to estimate the allowance for credit losses on the loans, as well as estimate the residual value, if any, that would be available to the equity holders.

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 provided that 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 income and expenses

The following table provides the components of other operating expense, net for the 13 and 26 weeks ended August 1, 2026 and August 2, 2025:

(1)See Note 16 for additional information.

The following table provides the components of other non-operating (expense) income, net for the 13 and 26 weeks ended August 1, 2026 and August 2, 2025:

(1)See information below related to the impairment of the Sasmat investment and loans receivable.

During Fiscal 2023, the Company acquired a 25% interest in Sasmat Retail, S.L. (“Sasmat”) for $17.1 million. Sasmat is a Spanish jewelry retailer that operates through both online and brick and mortar retail operations. The Company applied the equity method of accounting to the Sasmat investment. During Fiscal 2026 and Fiscal 2025, the Company provided loans to Sasmat totaling $2.0 million and $8.4 million, respectively. The equity method investment and loans receivable are recorded in other assets in the condensed consolidated balance sheets.

During the second quarter of Fiscal 2027, the Company observed a sustained decline in the performance trends and financial outlook of Sasmat. As a result, the Company evaluated the investment for impairment and determined the decline in value was other than temporary. Based on this assessment, the Company estimated the investment to haveno remaining fair value, and thus the Company recorded an impairment charge of $12.9 million during the second quarter of Fiscal 2027 for the remaining carrying value of the investment. This charge was recorded to other non-operating (expense) income, net in the condensed consolidated statements of operations.

In conjunction with this assessment, the Company evaluated the collectibility of its loans receivable from Sasmat. Based on the estimate of current expected credit losses, including Sasmat’s financial condition and outlook, the Company recorded a $6.3 million provision for credit losses during the second quarter of Fiscal 2027. The provision was recorded to other non-operating (expense) income, net in the condensed consolidated statements of operations. Following the recognition of the allowance for credit losses, the net carrying value of the loans receivable was $4.1 million.

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 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.

Restructuring and related charges of $1.8 million and $9.3 million were recognized during the 13 and 26 weeks ended August 1, 2026, respectively, and $2.8 million and $21.8 million was recognized during the 13 and 26 weeks ended August 2, 2025, respectively. Charges 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 $4.3 million as of August 1, 2026 (January 31, 2026 and August 2, 2025: $10.2 million and $14.5 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 and 26 weeks ended August 1, 2026 and August 2, 2025, as well as the cumulative amount incurred under the Plan through August 1, 2026:

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

In addition to the charges described above, the Company recognized a $1.4 million credit and $31.3 million of charges for inventory write-downs during the 13 and 26 weeks ended August 1, 2026, respectively. These charges are associated with the 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 asset impairment charges of $0.3 million and $1.8 million during the 13 and 26 weeks ended August 1, 2026, respectively, and $10.2 million and $13.4 million during the 13 and 26 weeks ended August 2, 2025, respectively, as a result of the Plan. These charges were incurred primarily for store assets and cloud computing arrangements, which are recorded within asset impairments, net in the condensed consolidated statements of operations. The cumulative amount of asset impairment charges incurred under the Plan totaled $18.5 million as of August 1, 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 August 1, 2026, the Company had $6.4 million of confirmed invoices outstanding under the supplier finance program (January 31, 2026 and August 2, 2025: $9.0 million and $8.2 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.