About Signet Jewelers

Signet Jewelers Limited (Signet) operates as a retailer of diamond jewelry worldwide. The company operates through its 100% owned subsidiaries with sales primarily in the United States (U.S.), the United Kingdom (U.K.) and Canada. The company operates stores and kiosks. Segments Signet operates through three reportable segments: North America, International, and Other. North America The North America reportable segment operates banners, with the majority operating through both online and brick and mortar retail operations. The segment had 2,382 locations in the U.S. and 93 locations in Canada as of January 28, 2023. In the U.S., the segment operates under the following banners: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared The Galleria Of Jewelry and Jared Vault); Banter by Piercing Pagoda; Diamonds Direct; Rocksbox; and digital banners, James Allen and Blue Nile. In Canada, the segment primarily operates under the Peoples banner (Peoples Jewellers). International The International reportable segment had 333 locations in the U.K., Republic of Ireland and Channel Islands as of January 28, 2023, as well as maintains an online retail presence for its principal banners, H. Samuel and Ernest Jones. Other The ‘Other’ reportable segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. Banner Operations The company operates banners in North America and the U.K., with the majority operating through both online and brick and mortar retail operations. Substantially all the stores operated by Signet are leased. North America Banners The North America reportable segment operates jewelry stores in malls, mall-based kiosks and off-mall locations throughout the U.S. and Canada and online under national banners, including Kay, Zales, Jared, Peoples, Banter by Piercing Pagoda and Diamonds Direct. Additionally, the company operates online through its digital banners, James Allen and Blue Nile, and through the jewelry subscription business Rocksbox, as well as each of the individual banner websites. Kay Jewelers (Kay) Kay is the largest specialty retail jewelry brand in the U.S. based on sales. Kay operates in shopping malls, off-mall centers, outlet malls and online. Kay is the U.S. jeweler for bridal and all occasion-based gifting offering a broad assortment of fine jewelry, including bridal, diamond solitaire, fashion jewelry and watches. Zales Jewelers (‘Zales’) Zales is the third largest specialty retail jewelry brand in the U.S., based on sales. Zales operates primarily in shopping malls, outlet malls, neighborhood power centers and online. Zales ‘The Diamond Store’ is positioned as the style and self-expression fine jewelry authority, an emphasis on fashion-oriented bridal, gifting and self-purchase consumers offering a broad range of bridal, diamond solitaire, fashion jewelry and watches. Jared The Galleria Of Jewelry (‘Jared’) Jared, which offers the broadest selection of merchandise, is the fourth largest U.S. specialty retail jewelry brand by sales and is a leading off-mall destination specialty retail jewelry store chain. Jared is positioned with an ‘accessible luxury’ assortment and additional services to appeal to a higher income customer and deliver higher average price points than Kay and Zales. Every Jared store has an on-site Design & Service Center where most repairs are completed within the same day. Jared locations are typically free-standing sites with high visibility and traffic flow, positioned close to major roads within shopping developments. Jared stores primarily operate in retail centers that contain strong retail co-tenants, including big box, destination stores and some smaller specialty units. Diamonds Direct On November 17, 2021, the company acquired all of the outstanding shares of Diamonds Direct USA Inc., a Delaware corporation (‘Diamonds Direct’). Diamonds Direct is an off-mall, destination jeweler in the U.S., with a highly productive, efficient operating model with demonstrated growth and profitability. Diamonds Direct’s strong value proposition, extensive bridal offering and customer-centric, high-touch shopping experience is destination for younger, luxury-oriented bridal shoppers. Diamonds Direct furthers Signet’s accessible luxury positioning with a distinct focus on bridal, appealing to a higher income customer and delivers higher average price points compared to other banners. Diamonds Direct’s stores are typically located in desirable off-mall sites proximate to high-end, destination centers alongside strong performing upscale retailers. Banter by Piercing Pagoda (‘Banter’) Banter, the company’s curated jewelry and piercing services brand, empowers its customers to express themselves with affordably priced selections of basic and fashion gold, silver and diamond jewelry. The brand operates primarily online and through mall-based kiosks in high-traffic areas across the U.S. that are easily accessible and visible in regional shopping malls. Banter opened inline locations within shopping malls and outdoor lifestyle centers. The brand also offers virtual styling sessions, giving customers a new digital shopping experience. Banter has continued to expand its facial piercing offerings with the introduction of hollow needle piercing in select markets, seeing opportunity to leverage this growing trend. Digital Pure-play Banners On August 19, 2022, the company acquired all of the outstanding shares of Blue Nile, Inc. (‘Blue Nile’). Blue Nile is a leading online retailer of engagement rings and fine jewelry. This acquisition brings together James Allen, the world’s premier online retailer of fine diamonds and bridal jewelry, and Blue Nile, as Signet’s digital ‘pure-play’ banners, to maximize and achieve meaningful operating synergies that will increase value for both the company’s consumers and shareholders. The addition of Blue Nile accelerates Signet’s efforts to grow its share in bridal and enhance its connected commerce capabilities and digital leadership across the jewelry category. Blue Nile brings a lower overall price mix than James Allen, but a higher engagement ring ticket, and complements James Allen with an older demographic focused on luxury purchases, all of which is immediately additive to the top of Signet’s customer funnel. Peoples Jewellers (‘Peoples’) Peoples is Canada’s largest specialty jewelry retailer and is positioned as ‘Canada’s #1 Diamond Store’ emphasizing its diamond business while also offering a wide selection of gold jewelry, gemstone jewelry and watches. Peoples operates primarily in shopping malls and online. Rocksbox On March 29, 2021, the company acquired all of the outstanding shares of Rocksbox Inc. (‘Rocksbox’), a jewelry rental subscription business that allows members to discover new looks, trends or add classic styles to their jewelry collection. Rocksbox is direct to customer, acquiring members primarily through digital advertising. International Banners The International reportable segment operates primarily in the U.K. and Republic of Ireland. The International segment transacts mainly in British pounds, as sales and the majority of operating expenses are incurred in that currency. H.Samuel H.Samuel has a target customer focused on lower-price point fashion-trend oriented, everyday jewelry. H.Samuel continues to focus on larger store formats in regional shopping centers. Ernest Jones Ernest Jones serves the upper middle market, with a target customer focused on high-quality, timeless jewelry. Other Sales and Services The company offers repair services to its customers that include both merchandise repairs and custom design services. The custom design and repair business has its own field management and training structure and operates in Design & Service Centers located in Jared stores. These Design & Service Centers are staffed with skilled artisans who support the repair and custom business generated in the Kay, Zales and Jared banners. Signet’s custom jewelry sales use a proprietary computer selling system and in-store design capabilities. The North America segment sells extended service plans covering lifetime repair service for jewelry and jewelry replacement plans in Banter. The Design & Service Centers also service the lifetime repair service plans for Kay, Zales and Jared, in addition to supporting the chargeable repairs and custom businesses. The lifetime repair service plans cover services, such as ring sizing, refinishing and polishing, rhodium plating of white gold, earring repair, chain soldering and the resetting of diamonds and gemstones that arise due to the normal usage of the merchandise or a replacement option if the merchandise cannot be repaired. The extended service plans are a valuable part of the customer experience and product offerings. In Fiscal 2022 (the 52-week periods ended January 29, 2022), the company introduced updated extended service agreements offering unique plans for both bridal and fashion merchandise, with additional benefits, including engraving for bridal merchandise. Jewelry replacement plans require the issuance of new replacement merchandise if the original merchandise is determined to be defective or damaged within a defined period in accordance with the plan agreement. The North America segment also offers customers a two-year fine watch warranty. Other services managed through recent third party offerings include personal jewelry insurance and appraisals. In Fiscal 2023 (the 52-week periods ended January 28, 2023), the company introduced its Vault Rewards loyalty program across Kay, Zales and Jared, which is a program that provides its members with benefits and offers once enrolled. As of the end of Fiscal 2023, the company has over 1.5 million members enrolled in this program. Markets Signet operates in the U.S., Canada and the U.K. markets. Trademarks and Trade Names Kay; Kay Jewelers; Kay Jewelers Outlet; Jared; Jared The Galleria Of Jewelry; Jared; Jared Foundry; Every Kiss Begins with Kay; Every Kiss; Celebrate Life Express Love; Leo; the Leo Diamond; Hearts Desire; Chosen; Ever Us; James Allen; Long Live Love; Dare to be Devoted; Love Brilliantly; Brilliant Moments; Closer Together; Vibrant Shades; Love’s Radiance Collection; Forever Connected; Bold Reflections; Vault Rewards; Diamonds Direct; Your Love. Our Passion; Rocksbox; and Blue Nile. Zales; Zales Jewelers; Zales the Diamond Store; Zales Outlet; Gordon’s Jewelers; Peoples Jewellers; Peoples the Diamond Store; Peoples Outlet the Diamond Store; Piercing Pagoda; Banter; Arctic Brilliance; Arctic Brilliance Canadian Diamonds; Celebration Diamond; Celebration Ideal; Celebration Infinite; From This Moment; Let Love Shine; Live for Love; The Celebration Diamond Collection; Unstoppable Love; Endless Brilliance; Love’s Destiny; Zales Private Collection; and Elegant Reflections. H.Samuel; Ernest Jones; Ernest Jones Outlet Collection; Forever Diamonds; Princessa Collection; Secrets of the Sea; It Feels Good To Gift; The Eternal Diamond – Cut From The Stars; H Samuel Style to Make You Smile; and Celebrate Your Story. Seasonality Signet’s business is seasonal, with the fourth quarter (year ended January 2023) historically accounting for approximately 35-40% of annual sales, as well as for a substantial portion of the annual operating profit. The ‘Holiday Season’ consists of results for the months of November and December, with December being the highest volume month of the year.