v3.26.1
Revenue recognition
 6 Months Ended
Aug. 01, 2026
Revenue from Contract with Customer [Abstract]  
Revenue recognition 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:
13 weeks ended August 1, 202613 weeks ended August 2, 2025
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by brand:
Kay
$585.2 $— $— $585.2 $569.5 $— $— $569.5 
Zales
275.1 — — 275.1 270.0 — — 270.0 
Jared
262.1 — — 262.1 262.2 — — 262.2 
Blue Nile83.6 — — 83.6 74.7 — — 74.7 
James Allen7.1 — — 7.1 36.9 — — 36.9 
Diamonds Direct88.0 — — 88.0 87.1 — — 87.1 
Banter by Piercing Pagoda
70.2 — — 70.2 75.6 — — 75.6 
Peoples
47.8 — — 47.8 47.8 — — 47.8 
International segment brands— 96.6 — 96.6 — 91.8 — 91.8 
Other (1)
9.2 — 3.2 12.4 2.9 — 16.6 19.5 
Total sales
$1,428.3 $96.6 $3.2 $1,528.1 $1,426.7 $91.8 $16.6 $1,535.1 
26 weeks ended August 1, 2026
26 weeks ended August 2, 2025
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by brand:
Kay
$1,183.6 $— $— $1,183.6 $1,148.6 $— $— $1,148.6 
Zales
564.2 — — 564.2 553.2 — — 553.2 
Jared
522.4 — — 522.4 522.2 — — 522.2 
Blue Nile158.4 — — 158.4 152.3 — — 152.3 
James Allen31.2 — — 31.2 76.3 — — 76.3 
Diamonds Direct173.0 — — 173.0 171.2 — — 171.2 
Banter by Piercing Pagoda
151.7 — — 151.7 157.8 — — 157.8 
Peoples
95.4 — — 95.4 88.6 — — 88.6 
International segment brands— 184.1 — 184.1 — 171.9 — 171.9 
Other (1)
11.4 — 6.3 17.7 7.0 — 27.6 34.6 
Total sales
$2,891.3 $184.1 $6.3 $3,081.7 $2,877.2 $171.9 $27.6 $3,076.7 
(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:
13 weeks ended August 1, 202613 weeks ended August 2, 2025
(in millions)North AmericaInternationalOtherConsolidatedNorth America
International (3)
OtherConsolidated
Sales by product:
Bridal
$628.9 $33.7 $— $662.6 $633.0 $33.0 $— $666.0 
Fashion
507.6 27.9 — 535.5 523.9 26.4 — 550.3 
Watches
62.6 26.7 — 89.3 55.5 25.2 — 80.7 
Services (1)
192.5 6.7 — 199.2 185.9 6.4 — 192.3 
Other (2)
36.7 1.6 3.2 41.5 28.4 0.8 16.6 45.8 
Total sales
$1,428.3 $96.6 $3.2 $1,528.1 $1,426.7 $91.8 $16.6 $1,535.1 
26 weeks ended August 1, 2026
26 weeks ended August 2, 2025
(in millions)North AmericaInternationalOtherConsolidatedNorth America
International (3)
OtherConsolidated
Sales by product:
Bridal
$1,285.5 $65.4 $— $1,350.9 $1,289.6 $61.7 $— $1,351.3 
Fashion
1,040.4 54.3 — 1,094.7 1,056.9 49.5 — 1,106.4 
Watches
115.9 48.8 — 164.7 103.3 46.9 — 150.2 
Services (1)
387.4 13.0 — 400.4 371.3 12.3 — 383.6 
Other (2)
62.1 2.6 6.3 71.0 56.1 1.5 27.6 85.2 
Total sales
$2,891.3 $184.1 $6.3 $3,081.7 $2,877.2 $171.9 $27.6 $3,076.7 
(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:
13 weeks ended August 1, 202613 weeks ended August 2, 2025
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by channel:
Store
$1,140.1 $76.4 $— $1,216.5 $1,125.6 $72.7 $— $1,198.3 
E-commerce279.8 20.2 — 300.0 298.5 19.1 — 317.6 
Other (1)
8.4 — 3.2 11.6 2.6 — 16.6 19.2 
Total sales
$1,428.3 $96.6 $3.2 $1,528.1 $1,426.7 $91.8 $16.6 $1,535.1 
26 weeks ended August 1, 2026
26 weeks ended August 2, 2025
(in millions)North AmericaInternationalOtherConsolidatedNorth AmericaInternationalOtherConsolidated
Sales by channel:
Store
$2,296.4 $146.8 $— $2,443.2 $2,250.9 $135.5 $— $2,386.4 
E-commerce584.8 37.3 — 622.1 619.9 36.4 — 656.3 
Other (1)
10.1 — 6.3 16.4 6.4 — 27.6 34.0 
Total sales
$2,891.3 $184.1 $6.3 $3,081.7 $2,877.2 $171.9 $27.6 $3,076.7 
(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:
(in millions)August 1, 2026January 31, 2026August 2, 2025
Other current assets$28.0 $28.6 $27.9 
Other assets79.4 80.8 80.1 
Total deferred ESP transaction costs$107.4 $109.4 $108.0 
Deferred revenue
Deferred revenue as of August 1, 2026, January 31, 2026 and August 2, 2025 was as follows:
(in millions)August 1, 2026January 31, 2026August 2, 2025
ESP deferred revenue$1,198.7 $1,204.4 $1,170.5 
Other deferred revenue (1)
78.5 81.3 75.7 
Total deferred revenue
$1,277.2 $1,285.7 $1,246.2 
Disclosed as:
Current liabilities$371.6 $377.1 $360.7 
Non-current liabilities905.6 908.6 885.5 
Total deferred revenue$1,277.2 $1,285.7 $1,246.2 
(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.
13 weeks ended26 weeks ended
(in millions)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
ESP deferred revenue, beginning of period$1,204.4 $1,171.9 $1,204.4 $1,170.8 
Plans sold (1)
131.0 132.4 269.9 267.4 
Revenue recognized (2)
(136.7)(133.8)(275.6)(267.7)
ESP deferred revenue, end of period$1,198.7 $1,170.5 $1,198.7 $1,170.5 
(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.