v3.26.1
Derivatives
 12 Months Ended
Jan. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives 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’s main risks are market risk including foreign currency risk, commodity risk, liquidity risk and interest rate risk. Signet uses derivative financial instruments to manage and mitigate certain of these risks under policies reviewed and approved by Signet’s Chief Operating and Financial Officer (“CFO”). 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.
Market risk
The Company primarily generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of purchases made by the Company’s UK and Canadian operations are denominated in US dollars, the Company enters into forward foreign currency exchange contracts and foreign currency swaps to manage this exposure to the US dollar.
Signet holds a fluctuating amount of British pounds and Canadian dollars reflecting the cash generative characteristics of operations. The Company’s objective is to minimize net foreign exchange exposure to the consolidated statements of operations on non-US dollar denominated items through managing cash levels, non-US dollar denominated intra-entity balances and foreign currency exchange contracts and swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in British pounds and Canadian dollars, dividends are paid periodically by subsidiaries to their immediate holding companies and excess British pounds and Canadian dollars are sold in exchange for US dollars.
Liquidity risk
The Company’s objective is to ensure that it has access to, or the ability to generate, sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board. Cash generated from operations and external financing are the main sources of funding, which supplement the Company’s resources in meeting liquidity requirements.
The primary external source of funding is the Company’s asset-based credit facility as described in Note 20.
Interest rate risk
The Company has exposure to movements in interest rates associated with cash and borrowings. The Company may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates.
Credit risk and concentrations of credit risk
Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however, it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. As of January 31, 2026, management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable.
Foreign currency and commodity risks
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 January 31, 2026 was $15.4 million (February 1, 2025: $13.3 million). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (February 1, 2025: 11 months).
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 January 31, 2026 was $100.8 million (February 1, 2025: $86.6 million).
Commodity forward contracts (designated) — The Company has exposure to movements in the price of the underlying precious metal raw material components of the products sold by Signet. Signet’s policy is to reduce the impact of precious metal commodity price volatility, such as gold, on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the CFO. In particular, when price and volume warrant such actions, Signet undertakes hedging of its requirements for gold through the use of forward purchase contracts or option contracts. Signet began hedging its exposure to gold prices during the second quarter of Fiscal 2026. The total notional amount of these forward contracts outstanding as of January 31, 2026 was approximately 35,000 ounces of gold. These contracts have been designated as cash flow hedges and will be settled over the next 11 months.
The bank counterparties to the derivative instruments expose the Company to credit-related losses in the event of their non-performance. However, to mitigate that risk, the Company only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of January 31, 2026, the Company believes that this credit risk did not materially change the fair value of the derivative instruments.
The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets as of January 31, 2026 and February 1, 2025:
Fair value of derivative assets
(in millions)Balance sheet locationJanuary 31, 2026February 1, 2025
Derivatives designated as hedging instruments:
Foreign currency contractsOther current assets$— $0.4 
Commodity contractsOther current assets26.8 — 
26.8 0.4 
Derivatives not designated as hedging instruments:
Foreign currency contractsOther current assets0.7 — 
Total derivative assets
$27.5 $0.4 
Fair value of derivative liabilities
(in millions)Balance sheet locationJanuary 31, 2026February 1, 2025
Derivatives designated as hedging instruments:
Foreign currency contractsOther current liabilities$(0.4)$— 
Commodity contractsOther current liabilities(0.6)— 
(1.0)— 
Derivatives not designated as hedging instruments:
Foreign currency contractsOther current liabilities— (0.7)
Total derivative liabilities
$(1.0)$(0.7)
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 January 31, 2026 and February 1, 2025:
(in millions)January 31, 2026February 1, 2025
Foreign currency contracts$(0.6)$0.4 
Commodity contracts35.8 — 
Gains recorded in AOCI$35.2 $0.4 
The following tables summarize the effect of derivative instruments designated as cash flow hedges on OCI and the consolidated statements of operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024:
Foreign currency contracts
(in millions)Statement of operations captionFiscal 2026Fiscal 2025Fiscal 2024
Gains (losses) recorded in AOCI, beginning of period$0.4 $(0.1)$0.6 
Current period (losses) gains recognized in OCI(1.3)0.3 (0.2)
Losses (gains) reclassified from AOCI to net income
Cost of sales (1)
0.3 0.2 (0.5)
(Losses) gains recorded in AOCI, end of period$(0.6)$0.4 $(0.1)
Commodity contracts
(in millions)Statement of operations captionFiscal 2026Fiscal 2025Fiscal 2024
Gains recorded in AOCI, beginning of period$— $— $— 
Current period gains recognized in OCI38.7 — — 
Gains reclassified from AOCI to net income
Cost of sales (1)
(2.9)— — 
Gains recorded in AOCI, end of period$35.8 $— $— 
(1)    Refer to the 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 Fiscal 2026, Fiscal 2025 and Fiscal 2024 as all forecasted transactions are expected to occur as originally planned. As of January 31, 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) income, net in the consolidated statements of operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024:
(in millions)Fiscal 2026Fiscal 2025Fiscal 2024
Foreign currency contracts
$5.0 $(6.3)$(0.1)