Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 24, 2015 | Aug. 01, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Childrens Place, Inc. | ||
Entity Central Index Key | 1041859 | ||
Current Fiscal Year End Date | -30 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $901,938,730 | ||
Entity Common Stock, Shares Outstanding | 20,847,863 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $173,291 | $173,997 |
Short-term Investments | 52,000 | 62,500 |
Accounts receivable | 31,928 | 25,960 |
Inventories | 297,631 | 322,422 |
Prepaid expenses and other current assets | 39,349 | 33,582 |
Deferred income taxes | 15,080 | 10,859 |
Total current assets | 609,279 | 629,320 |
Long-term assets: | ||
Property and equipment, net | 310,301 | 312,149 |
Deferred income taxes | 35,580 | 45,806 |
Other assets | 3,458 | 3,355 |
Total assets | 958,618 | 990,630 |
Current liabilities: | ||
Accounts payable | 155,323 | 150,652 |
Income taxes payable | 420 | 1,039 |
Accrued expenses and other current liabilities | 118,724 | 119,658 |
Total current liabilities | 274,467 | 271,349 |
Long-term liabilities: | ||
Deferred rent liabilities | 80,214 | 88,563 |
Other tax liabilities | 6,446 | 5,755 |
Other long-term liabilities | 8,373 | 8,185 |
Total liabilities | 369,500 | 373,852 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.10 par value, 100,000 shares authorized; 21,075 and 22,230 issued; 21,040 and 22,197 outstanding | 2,108 | 2,223 |
Additional paid-in capital | 230,429 | 226,521 |
Treasury stock, at cost (35 and 33 shares) | -1,682 | -1,575 |
Deferred compensation | 1,682 | 1,575 |
Foreign currency translation adjustment | -17,493 | -1,529 |
Retained earnings | 374,074 | 389,563 |
Total stockholders' equity | 589,118 | 616,778 |
Total liabilities and stockholders' equity | $958,618 | $990,630 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 21,075,000 | 22,230,000 |
Common Stock, Shares Outstanding | 21,040,000 | 22,197,000 |
Treasury Stock, Shares | 35,000 | 33,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Net sales | $1,761,324 | $1,765,789 | $1,809,486 |
Cost of sales | 1,139,024 | 1,110,268 | 1,118,046 |
Gross profit | 622,300 | 655,521 | 691,440 |
Selling, general and administrative expenses | 470,686 | 485,653 | 510,918 |
Asset impairment charges | 11,145 | 29,633 | 2,284 |
Business Exit Costs | -68 | -906 | 11,088 |
Depreciation and amortization | 60,494 | 64,858 | 77,435 |
Operating income (loss) | 80,043 | 76,283 | 89,715 |
Interest (expense), net | -168 | 265 | -20 |
Income (loss) from continuing operations before income taxes | 79,875 | 76,548 | 89,695 |
Provision (benefit) for income taxes | 22,987 | 23,522 | 26,452 |
Net income (loss) | $56,888 | $53,026 | $63,243 |
Basic earnings (loss) per share amounts | |||
Income (loss) from continuing operations (in dollars per share) | $2.62 | $2.35 | $2.63 |
Basic weighted average common shares outstanding (in shares) | 21,681 | 22,537 | 24,092 |
Diluted earnings (loss) per share amounts | |||
Income (loss) from continuing operations (in dollars per share) | $2.59 | $2.32 | $2.61 |
Diluted weighted average common shares outstanding (in shares) | 21,924 | 22,835 | 24,276 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $56,888 | $53,026 | $63,243 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -15,964 | -14,787 | 378 |
Comprehensive income | $40,924 | $38,239 | $63,621 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Deferred Compensation, Share-based Payments [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Stockholders' Equity, Total [Member] | capitalizedstock-basedcompensation [Member] | capitalizedstock-basedcompensation [Member] |
In Thousands, except Share data | Additional Paid-in Capital [Member] | Stockholders' Equity, Total [Member] | ||||||||
Total stockholders' equity at Jan. 28, 2012 | $2,471 | $210,159 | $598 | $399,459 | $12,880 | ($598) | $624,969 | |||
Treasury Stock, Shares at Jan. 28, 2012 | -14,000 | |||||||||
Common Stock, Shares Issued Balance at Jan. 28, 2012 | 24,711,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 68,000 | |||||||||
Stock Issued During Period, Value, Stock Options Exercised | 6 | 2,179 | 2,185 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 200,000 | |||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 20 | -20 | 0 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 14,253 | 14,253 | ||||||||
Stock Repurchased and Retired During Period, Shares | -1,800,000 | |||||||||
Stock Repurchased and Retired During Period, Value | -179 | -15,821 | -73,020 | -89,020 | ||||||
Payments of Ordinary Dividends, Common Stock | 0 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 378 | 378 | ||||||||
Common Stock Issued, Employee Trust, Deferred | -521 | 0 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 63,243 | 63,243 | 63,243 | |||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 4,941 | 4,941 | ||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 521 | |||||||||
Total stockholders' equity at Feb. 02, 2013 | 2,318 | 215,691 | 1,119 | 389,682 | 13,258 | -1,119 | 620,949 | |||
Treasury Stock, Shares at Feb. 02, 2013 | -24,000 | |||||||||
Common Stock, Shares Issued Balance at Feb. 02, 2013 | 23,179,000 | -10,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 49,000 | |||||||||
Stock Issued During Period, Value, Stock Options Exercised | 5 | 1,474 | 1,479 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 300,000 | |||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 30 | -30 | 0 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 21,210 | 21,210 | 520 | 520 | ||||||
Stock Repurchased and Retired During Period, Shares | -1,298,000 | |||||||||
Stock Repurchased and Retired During Period, Value | -130 | -12,555 | -53,145 | -65,830 | ||||||
Payments of Ordinary Dividends, Common Stock | 0 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -14,787 | -14,787 | ||||||||
Common Stock Issued, Employee Trust, Deferred | -1,575 | -456 | 0 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 53,026 | 53,026 | 53,026 | |||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 211 | 211 | ||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 456 | |||||||||
Total stockholders' equity at Feb. 01, 2014 | 616,778 | 2,223 | 226,521 | 1,575 | 389,563 | -1,529 | -1,575 | 616,778 | ||
Treasury Stock, Shares at Feb. 01, 2014 | 33,000 | -33,000 | ||||||||
Common Stock, Shares Issued Balance at Feb. 01, 2014 | 22,230,000 | -9,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,000 | |||||||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 55 | 55 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 336,000 | |||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 34 | -34 | 0 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 17,783 | 17,783 | 930 | 930 | ||||||
Stock Repurchased and Retired During Period, Shares | -1,493,000 | |||||||||
Stock Repurchased and Retired During Period, Value | -149 | -15,600 | -60,380 | -76,129 | ||||||
Payments of Ordinary Dividends, Common Stock | -11,491 | -11,491 | -11,491 | |||||||
Dividendsunvestedshares | -500 | 506 | -506 | 0 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -15,964 | -15,964 | ||||||||
Common Stock Issued, Employee Trust, Deferred | -1,682 | -107 | 0 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 56,888 | 56,888 | 56,888 | |||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 268 | 268 | ||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 107 | |||||||||
Total stockholders' equity at Jan. 31, 2015 | $589,118 | $2,108 | $230,429 | $1,682 | $374,074 | ($17,493) | ($1,682) | $589,118 | ||
Treasury Stock, Shares at Jan. 31, 2015 | 35,000 | -35,000 | ||||||||
Common Stock, Shares Issued Balance at Jan. 31, 2015 | 21,075,000 | -2,000 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $56,888 | $53,026 | $63,243 |
Reconciliation of income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 60,494 | 64,858 | 77,435 |
Stock-based compensation | 17,783 | 21,210 | 14,253 |
Excess tax benefits from stock-based compensation | -268 | -211 | -4,941 |
Asset impairment charges | 11,145 | 29,633 | 2,284 |
Deferred taxes | 5,627 | -3,552 | 1,973 |
Deferred rent expense and lease incentives | -8,889 | -11,999 | -5,347 |
Other | 2,208 | 6,891 | -597 |
Changes in operating assets and liabilities: | |||
Inventories | 21,022 | -58,941 | -28,828 |
Prepaid expenses and other assets | -6,268 | -6,039 | -1,131 |
Income taxes payable, net of prepayments | -7,341 | 3,441 | 15,639 |
Accounts payable and other current liabilities | 6,049 | 73,609 | 63,277 |
Deferred rent and other liabilities | 2,960 | 1,544 | 7,782 |
Total adjustments | 104,522 | 120,444 | 141,799 |
Net cash provided by operating activities | 161,410 | 173,470 | 205,042 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property and equipment purchases, lease acquisition and software costs | -72,212 | -72,606 | -90,182 |
Payments to Acquire Short-term Investments | -81,000 | -97,500 | -15,000 |
Proceeds from Sale of Short-term Investments | 91,500 | 50,000 | 0 |
Purchase of company-owned life insurance policies | 5 | 406 | -38 |
Net cash used in investing activities | -61,707 | -119,700 | -105,220 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 320,230 | 124,289 | 134,865 |
Repayments under revolving credit facilities | -320,230 | -124,289 | -134,865 |
Purchase and retirement of common stock, including transaction costs | -76,129 | -65,830 | -89,020 |
Payments of Ordinary Dividends, Common Stock | -11,491 | 0 | 0 |
Exercise of stock options | 55 | 1,479 | 2,185 |
Excess tax benefits from stock-based compensation | 268 | 211 | 4,941 |
Deferred financing costs | -306 | 0 | -363 |
Net cash provided by (used in) financing activities | -87,603 | -64,140 | -82,257 |
Effect of exchange rate changes on cash | -12,806 | -9,761 | -92 |
Net increase (decrease) in cash and cash equivalents | -706 | -20,131 | 17,473 |
Cash and cash equivalents, beginning of period | 173,997 | 194,128 | 176,655 |
Cash and cash equivalents, end of period | 173,291 | 173,997 | 194,128 |
OTHER CASH FLOW INFORMATION: | |||
Net cash paid during the year for income taxes | 23,598 | 24,826 | 10,030 |
Cash paid during the year for interest | 936 | 499 | 704 |
Payments for (Proceeds from) Productive Assets | $3,611 | ($5,924) | ($1,824) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Description of Business | |||||||||||||
The Children's Place, Inc. and subsidiaries (the “Company”) is the largest pure-play children's specialty apparel retailer in North America. The Company provides apparel, accessories, footwear and other items for children sizes 0-14. The Company designs, contracts to manufacture and sells and licenses to sell high-quality, value-priced merchandise, a substantial majority of which is under the proprietary “The Children's Place”, "Place" and "Baby Place" brand names. As of January 31, 2015, the Company operated 1,097 The Children's Place stores throughout North America and an Internet store at www.childrensplace.com. As part of its merchandise procurement process, the Company maintains business operations in Asia. The Company's corporate offices are in New Jersey and it has one distribution facility in the United States and one in Canada. | |||||||||||||
The Company classifies its business into two segments: The Children’s Place U.S. and The Children’s Place International. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores and U.S. revenue from the Company's wholesale partners. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale partner and revenue from international franchisees. Each segment includes an e-commerce business located at www.childrensplace.com. As of January 31, 2015, The Children’s Place U.S. operated 963 stores and The Children’s Place International operated 134 stores. | |||||||||||||
Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. | |||||||||||||
Terms that are commonly used in the Company's notes to consolidated financial statements are defined as follows: | |||||||||||||
• | Fiscal 2014 - The fifty-two weeks ended January 31, 2015 | ||||||||||||
• | Fiscal 2013 - The fifty-two weeks ended February 1, 2014 | ||||||||||||
• | Fiscal 2012 - The fifty-three weeks ended February 2, 2013 | ||||||||||||
• | Fiscal 2015 - The Company's next fiscal year representing the fifty-two weeks ending January 30, 2016 | ||||||||||||
• | SEC- The U.S. Securities and Exchange Commission | ||||||||||||
• | GAAP - Generally Accepted Accounting Principles | ||||||||||||
• | FASB- Financial Accounting Standards Board | ||||||||||||
• | FASB ASC - FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants | ||||||||||||
Fiscal Year | |||||||||||||
The Company's fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31. Fiscal 2012 was a 53-week year. All other years presented were 52-week years. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP 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 financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company's financial position or results of operations. | |||||||||||||
Consolidation | |||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. Intercompany balances and transactions have been eliminated. As of January 31, 2015, the Company does not have any investments in unconsolidated affiliates. The “Consolidation” topic of the FASB ASC is considered when determining whether an entity is subject to consolidation. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
Short-term Investments | |||||||||||||
Short-term investments consist of investments which the Company expects to convert into cash within one year, including time deposits, which have original maturities greater than 90 days. The Company classifies its investments in securities at the time of purchase as held-to-maturity and reevaluates such classifications on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. These securities are recorded at cost and adjusted for the amortization of premiums and discounts, which approximates fair value. Cash inflows and outflows related to the sale and purchase of investments are classified as investing activities in the Company's consolidated statements of cash flows. All of the Company's short-term investments are U.S. dollar denominated time deposits with banking institutions in Hong Kong that have six month maturity dates. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company's retail stores or when received by the customer if the product was purchased via the Internet, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $0.3 million and $1.8 million as of January 31, 2015 and February 1, 2014, respectively, for Internet sales shipped but not yet received by the customer. Sales tax collected from customers is excluded from revenue. | |||||||||||||
An allowance for estimated sales returns is calculated based upon the Company's sales return experience and is recorded in accrued expenses and other current liabilities. The allowance for estimated sales returns was approximately $1.9 million and $1.8 million as of January 31, 2015 and February 1, 2014, respectively. | |||||||||||||
The Company's policy with respect to gift cards is to record revenue as the gift cards are redeemed for merchandise. Prior to their redemption, gift cards are recorded as a liability, included in accrued expenses and other current liabilities. After two years, the Company recognizes breakage income for the estimated portion of unredeemed gift cards that is unlikely to be redeemed. The Company recognized gift card breakage income of approximately $1.6 million, $1.5 million and $1.5 million during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, and is recorded in selling, general and administrative expenses. | |||||||||||||
In October 2012, the Company launched a new points based customer loyalty program to replace the old program that was restricted to the Company's private label credit card customers. In this program, customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. The Company has developed an estimated value of each point earned based on the awards customers can attain less a reasonable breakage rate. The value of each point earned is recorded as deferred revenue. Deferred revenue for loyalty points as of January 31, 2015 and February 1, 2014 was $9.0 million and $5.4 million, respectively. | |||||||||||||
During Fiscal 2012, the Company began an international store expansion program through territorial agreements with franchisees. At January 31, 2015, the Company's franchisees had a total of 72 stores open. The Company generates revenues from the franchisees from the sale of product, sales royalties and territory fees. The Company records gross sales and cost of goods sold on the sale of product to franchisees when the franchisor takes ownership of the product. The Company records gross sales for royalties when the franchisee sells the product to their customers. Under certain agreements the Company receives a fee from each franchisee for exclusive territorial rights. The Company records this territorial fee as deferred revenue and amortizes the fee into gross sales over the life of the territorial agreement. Deferred revenue for franchisees as of January 31, 2015 and February 1, 2014 was $0.8 million and $0.9 million, respectively. | |||||||||||||
Inventories | |||||||||||||
Inventories, which consist primarily of finished goods, are stated at the lower of cost or market, with cost determined on an average cost basis. The Company capitalizes supply chain costs in inventory and these costs are reflected in cost of sales as the inventories are sold. Inventory includes items that have been marked down to the Company's best estimate of their lower of cost or market value and an estimate for inventory shrinkage. The Company bases its decision to mark down merchandise upon its current rate of sale, the season and the sell-through of the item. The Company adjusts its inventory based upon an annual physical inventory and shrinkage is estimated in interim periods based upon the historical results of physical inventories in the context of current year facts and circumstances. | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
Cost of Sales (exclusive of depreciation and amortization) | |||||||||||||
In addition to the cost of inventory sold, the Company includes buying, design and distribution expenses, shipping and handling costs on merchandise sold directly to customers, and letter of credit fees in its cost of sales. The Company records all occupancy costs in its cost of sales, except administrative office buildings, which are recorded in selling, general and administrative expenses. All depreciation is reported on a separate line on the Company's consolidated statements of operations. | |||||||||||||
Stock-based Compensation | |||||||||||||
The Company's stock-based compensation plans are administered by the Compensation Committee of the Board of Directors (the “Compensation Committee”). The Compensation Committee is comprised of independent members of the Board of Directors (the “Board”). Effective May 20, 2011, the shareholders approved the 2011 Equity Incentive Plan (the "Equity Plan"). Upon adoption of the Equity Plan, the Company ceased granting awards under its 2005 Equity Incentive Plan. The Equity Plan allows the Compensation Committee to grant multiple forms of stock‑based compensation such as stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance stock awards. | |||||||||||||
The Company accounts for its stock‑based compensation in accordance with the provisions of the “Compensation-Stock Compensation” topic of the FASB ASC. These provisions require, among other things: (a) the fair value of all stock awards be expensed over their respective vesting periods; (b) the amount of cumulative compensation cost recognized at any date must at least be equal to the portion of the grant-date value of the award that is vested at that date and (c) that compensation expense include a forfeiture estimate for those shares not expected to vest. Also in accordance with these provisions, for those awards with multiple vest dates, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. | |||||||||||||
Earnings per Common Share | |||||||||||||
The Company reports its earnings (loss) per share in accordance with the “Earnings Per Share” topic of the FASB ASC, which requires the presentation of both basic and diluted earnings (loss) per share on the statements of operations. The diluted weighted average common shares includes adjustments for the potential effects of outstanding stock options, Deferred Awards and Performance Awards, but only in the periods in which such effect is dilutive under the treasury stock method. Included in our basic and diluted weighted average common shares are those shares due to participants in the deferred compensation plan, which are held in treasury stock. Antidilutive stock awards are comprised of stock options and unvested deferred, restricted and performance shares which would have been antidilutive in the application of the treasury stock method in accordance with “Earnings Per Share” topic of FASB ASC. | |||||||||||||
In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Net income | $ | 56,888 | $ | 53,026 | $ | 63,243 | |||||||
Basic weighted average common shares | 21,681 | 22,537 | 24,092 | ||||||||||
Dilutive effect of stock awards | 243 | 298 | 184 | ||||||||||
Diluted weighted average common shares | 21,924 | 22,835 | 24,276 | ||||||||||
Antidilutive stock awards | — | 32 | 10 | ||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable consists of credit and debit card receivables, franchisee and wholesale receivables, landlord construction allowance receivables and other miscellaneous items. Credit and debit card receivables represent credit and debit card sales for which the respective third party service company has yet to remit the cash. The unremitted balance approximates | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
the last few days of related sales for each reporting period. Bad debt associated with these sales is not material. Landlord construction allowance receivables represent landlord contributions to our construction costs of building out the related real estate, primarily new and remodeled stores. Total construction costs are capitalized as property and equipment and the landlord construction allowances are recorded as a lease incentive, a component of deferred rent, which is amortized as a reduction of rent expense over the lease term. | |||||||||||||
Insurance and Self-Insurance Reserves | |||||||||||||
The Company self-insures and purchases insurance policies to provide for workers' compensation, general liability and property losses, as well as director and officer's liability, vehicle liability and employee medical benefits. The Company estimates risks and records a liability based on historical claim experience, insurance deductibles, severity factors and other actuarial assumptions. The Company records the current portions of employee medical benefits, workers compensation and general liability reserves in accrued expenses and other current liabilities. As of January 31, 2015 and February 1, 2014, the current portions of these reserves were approximately $6.5 million and $7.1 million, respectively. The Company records the long-term portions of employee medical benefits, workers' compensation and general liability reserves in other long-term liabilities. As of January 31, 2015 and February 1, 2014, the long-term portions of these reserves were approximately $6.5 million and $5.5 million, respectively. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are stated at cost. Leasehold improvements are depreciated on a straight-line basis over the shorter of the life of the lease or the estimated useful life of the asset. All other property and equipment is depreciated on a straight-line basis based upon their estimated useful lives, which generally range from three to twenty-five years. Repairs and maintenance are expensed as incurred. | |||||||||||||
The Company accounts for internally developed software intended for internal use in accordance with provisions of the “Intangibles-Goodwill and Other” topic of the FASB ASC. The Company capitalizes development‑stage costs such as direct external costs and direct payroll related costs. When development is substantially complete, the Company amortizes the cost of the software on a straight-line basis over the expected life of the software. Preliminary project costs and post-implementation costs such as training, maintenance and support are expensed as incurred. | |||||||||||||
Accounting for Impairment of Long-Lived Assets | |||||||||||||
The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include a history trend or projected trend of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In that regard, the Company groups its assets into two categories: corporate-related and store-related. Corporate-related assets consist of those associated with the Company's corporate offices, distribution centers and its information technology systems. Store-related assets consist of leasehold improvements, furniture and fixtures, certain computer equipment and lease related assets associated with individual stores. | |||||||||||||
For store-related assets, the Company reviews all stores that have been open or not remodeled for at least two years, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting two years allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of operating losses, the Company projects future cash flows over the remaining life of the lease and compares the total undiscounted cash flows to the net book value of the related long-lived assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily determines fair market value to be the discounted future cash flows associated with those assets. In evaluating future cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic, competition, and their effect on sales trends. Internal factors include the Company's ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll, and in certain cases, its ability to renegotiate lease costs. | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
Exit or Disposal Cost Obligations | |||||||||||||
In accordance with the “Exit or Disposal Cost Obligations” topic of the FASB ASC, the Company records its exit and disposal costs at fair value to terminate an operating lease or contract when termination occurs before the end of its term, or when costs will be incurred without future economic benefit to the Company, on the date the Company ceased using the leased property. In cases of employee termination benefits, the Company recognizes an obligation only when all of the following criteria are met: | |||||||||||||
• | management, having the authority to approve the action, commits to a plan of termination; | ||||||||||||
• | the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; | ||||||||||||
• | the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; and | ||||||||||||
• | actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | ||||||||||||
During the first quarter of Fiscal 2012, management approved a plan to exit its distribution center in Ontario, California (the "West Coast DC") and move the operations to its distribution center in Fort Payne, Alabama (the "Southeast DC"). The Company ceased operations at the West Coast DC in May 2012. The lease of the West Coast DC expires in March 2016 and the Company has subleased this facility through March 2016. | |||||||||||||
During the third quarter of Fiscal 2012, management approved a plan to close the Company's distribution center in Dayton, New Jersey ("Northeast DC") and move the operations to its Southeast DC. The Company ceased operations in the Northeast DC during the fourth quarter of fiscal 2012. The lease of its Northeast DC expires in January 2021 and the Company has subleased this facility through January 2021. | |||||||||||||
The following table provides details of the remaining accruals for the West Coast DC and Northeast DC, of which approximately $0.8 million was included in accrued expenses and other current liabilities and approximately $0.7 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Lease Termination Costs | Other Associated Costs | Total | |||||||||||
Balance at February 2, 2013 | $ | 8,376 | $ | — | $ | 8,376 | |||||||
Restructuring costs | (1,413 | ) | 507 | (906 | ) | ||||||||
Payments and other adjustments | (4,284 | ) | (507 | ) | (4,791 | ) | |||||||
Balance at February 1, 2014 | 2,679 | — | 2,679 | ||||||||||
Restructuring costs | (222 | ) | 154 | (68 | ) | ||||||||
Payments and other adjustments | (949 | ) | (154 | ) | (1,103 | ) | |||||||
Balance at January 31, 2015 | $ | 1,508 | $ | — | $ | 1,508 | |||||||
Deferred Financing Costs | |||||||||||||
The Company capitalizes costs directly associated with acquiring third party financing. Deferred financing costs are included in other assets and are amortized as interest expense over the term of the related indebtedness. At January 31, 2015, deferred financing costs, net of accumulated amortization of $2.7 million, were approximately $1.2 million. At February 1, 2014, deferred financing costs, net of accumulated amortization of $2.4 million, were approximately $1.3 million. | |||||||||||||
Treasury Stock | |||||||||||||
Treasury stock is recorded at acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. When treasury shares are retired and returned to authorized but unissued status, the carrying value in excess of par is allocated to additional paid-in capital and retained earnings on a pro rata basis. | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
Pre-opening Costs | |||||||||||||
Store pre-opening costs consist primarily of occupancy costs, payroll, supply, and marketing expenses, and are expensed as incurred in selling, general and administrative expenses. Pre-opening costs were $1.4 million, $3.3 million and $4.0 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Advertising and Marketing Costs | |||||||||||||
The Company expenses the cost of advertising over the period the advertising is run or displayed. Included in selling, general and administrative expenses for Fiscal 2014, Fiscal 2013 and Fiscal 2012 are advertising and other marketing costs of approximately $30.9 million, $33.8 million and $37.1 million, respectively. | |||||||||||||
Rent Expense and Deferred Rent | |||||||||||||
Rent expense and lease incentives, including landlord construction allowances, are recognized on a straight-line basis over the lease term, commencing generally on the date the Company takes possession of the leased property. The Company records rent expense and the impact of lease incentives for its stores and distribution centers as a component of cost of sales. The unamortized portion of deferred rent is included in deferred rent liabilities. | |||||||||||||
Income Taxes | |||||||||||||
We utilize the liability method of accounting for income taxes as set forth in the “Income Taxes” topic of the FASB ASC. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities, as well as for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using currently enacted tax rates that apply to taxable income in effect for the years in which the basis differences and tax assets are expected to be realized. A valuation allowance is recorded when it is more likely than not that any of the deferred tax assets will not be realized. In determining the need for valuation allowances we consider projected future taxable income and the availability of tax planning strategies. If in the future we determine that we would not be able to realize our recorded deferred tax assets, an increase in the valuation allowance would decrease earnings in the period in which such determination is made. | |||||||||||||
We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
Accumulated other comprehensive income consists of cumulative translation adjustments. | |||||||||||||
Foreign Currency Translation | |||||||||||||
The Company has determined that the local currencies of its Canadian and Asian subsidiaries are their functional currencies. In accordance with the “Foreign Currency Matters” topic of the FASB ASC, the assets and liabilities denominated in foreign currency are translated into U.S. dollars at the current rate of exchange existing at period-end and revenues and expenses are translated at average monthly exchange rates. Related translation adjustments are reported as a separate component of stockholders' equity. The Company also transacts certain business in foreign denominated currencies, primarily its Canadian subsidiary purchases inventory in U.S. Dollars, and there are intercompany charges between various subsidiaries. In Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company recorded realized and unrealized gains (losses) on such transactions of approximately $(0.5) million, $0.5 million and $0.1 million, respectively. | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
Legal Contingencies | |||||||||||||
The Company reserves for the outcome of litigation and contingencies when it determines an adverse outcome is probable and can estimate losses. Estimates are adjusted as facts and circumstances require. The Company expenses the costs to resolve litigation as incurred, net of amounts, if any, recovered through our insurance coverage. | |||||||||||||
Retained Earnings | |||||||||||||
There are no restrictions on the Company's retained earnings. | |||||||||||||
Fair Value Measurement and Financial Instruments | |||||||||||||
The “Fair Value Measurements and Disclosure” topic of the FASB ASC provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. | |||||||||||||
This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: | |||||||||||||
• | Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities | ||||||||||||
• | Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly | ||||||||||||
• | Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities | ||||||||||||
The Company’s cash and cash equivalents, short-term investments, accounts receivable, accounts payable and credit facility are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The underlying assets of the Company’s Deferred Compensation Plan, excluding Company stock, fall within Level 2 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement. | |||||||||||||
The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 inputs. Long-lived assets, primarily comprised of property and equipment, held and used with a carrying amount of $15.9 million were written down to their fair value, resulting in an impairment charge of $11.1 million, which was included in earnings for Fiscal 2014. For Fiscal 2013, long-lived assets held and used with a carrying amount of $44.4 million were written down to their fair value, resulting in an impairment charge of $29.6 million, which was included in earnings for Fiscal 2013. For Fiscal 2012, long-lived assets held and used with a carrying amount of $3.1 million were written down to their fair value, resulting in an impairment charge of $2.3 million, which was included in earnings for Fiscal 2012. | |||||||||||||
Recently Issued Accounting Updates | |||||||||||||
In May 2014, the FASB issued guidance relating to revenue recognition from contracts with customers. This guidance requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company is currently reviewing the potential impact of this standard. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY | |||||||||||||||
The Company's Board of Directors has authorized the following share repurchase programs: (1) $100.0 million on March 3, 2011 (the "2011 Share Repurchase Program"); (2) $50.0 million on March 7, 2012 (the "2012 $50 Million Share Repurchase Program"); (3) $100.0 million on November 26, 2012 (the “2012 Share Repurchase Program”); and (4) $100.0 million on March 3, 2014 (the “2014 Share Repurchase Program”). At January 31, 2015, the 2011 Share Repurchase Program, the 2012 $50 Million Share Repurchase Program and the 2012 Share Repurchase Program had been completed, and there was approximately $39.8 million remaining on the 2014 Share Repurchase Program. On January 7, 2015, the Board of Directors authorized a $100 million share repurchase program (the "2015 Share Repurchase Program"). Under the 2014 Share Repurchase Program and the 2015 Share Repurchase Program, the Company may repurchase shares in the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions. We may suspend or discontinue the program at any time, and may thereafter reinstitute purchases, all without prior announcement. | ||||||||||||||||
Pursuant to restrictions imposed by the Company's equity plan during black-out periods, the Company withholds and retires shares of vesting stock awards in exchange for payments to satisfy minimum withholding tax requirements. The Company's payment of the withholding taxes in exchange for the shares constitutes a purchase of its common stock. | ||||||||||||||||
The Company acquires shares of its common stock in conjunction with liabilities owed under a deferred compensation plan, which are held in treasury. The following table summarizes the Company's share repurchases (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||
Share repurchases related to: | ||||||||||||||||
2011 Share buyback program | — | — | — | — | 377 | 19,236 | ||||||||||
2012 $50 Million Share buyback program | — | — | — | — | 1,001 | 50,000 | ||||||||||
2012 Share buyback program | 282 | 14,671 | 1,296 | 65,691 | 420 | 19,638 | ||||||||||
2014 Share buyback program (1) | 1,189 | 60,209 | — | — | — | — | ||||||||||
Withholding taxes | 22 | 1,249 | 2 | 139 | 2 | 146 | ||||||||||
Shares acquired and held in treasury | 2 | 107 | 9 | 456 | 10 | 521 | ||||||||||
-1 | Subsequent to January 31, 2015 and through March 24, 2015, the Company repurchased an additional 0.2 million shares for approximately $13.3 million. | |||||||||||||||
In accordance with the “Equity” topic of the FASB ASC, the par value of the shares retired is charged against common stock and the remaining purchase price is allocated between additional paid-in capital and retained earnings. The portion charged against additional paid-in capital is done using a pro rata allocation based on total shares outstanding. Related to all shares retired for Fiscal 2014, Fiscal 2013 and Fiscal 2012, approximately $60.4 million, $53.1 million and $73.0 million was charged to retained earnings, respectively. | ||||||||||||||||
Related to Fiscal 2014 dividends, $12.0 million was charged to retained earnings, of which $11.5 million related to cash dividends paid and $0.5 million related to dividend share equivalents on unvested Deferred Awards and Performance Awards. On February 13, 2015, the Board of Directors authorized a quarterly cash dividend of $0.15 per share to be paid on April 30, 2015 to shareholders of record on the close of business on April 9, 2015. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Company’s Board of Directors based on a number of factors, including business and market conditions, the Company’s future financial performance and other investment priorities. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | |||||||||||||||||||||
The following table summarizes the Company’s stock-based compensation expense (in thousands): | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
January 31, | February 1, | February 2, | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||
Deferred Awards | $ | 10,529 | $ | 12,873 | $ | 11,109 | ||||||||||||||||
Performance Awards | 7,254 | 8,337 | 3,144 | |||||||||||||||||||
Total stock-based compensation expense (1) | $ | 17,783 | $ | 21,210 | $ | 14,253 | ||||||||||||||||
____________________________________________ | ||||||||||||||||||||||
(1) A portion of stock-based compensation is included in cost of sales. Approximately $1.6 million, $2.8 million and $1.7 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expense. | ||||||||||||||||||||||
The Company recognized a tax benefit related to stock-based compensation expense of $7.0 million, $8.5 million and $5.6 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||||||||||||||
The Company generally grants time vesting stock awards ("Deferred Awards") and performance-based stock awards ("Performance Awards") to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years, except for those granted to non-employee directors, which | ||||||||||||||||||||||
generally vest over one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest in addition to a service period requirement. | ||||||||||||||||||||||
For Performance Awards issued during Fiscal 2013 and to our CEO in Fiscal 2014, each award has a defined number of shares that an employee can earn (the “Target Shares”), and based on the adjusted operating income level achieved for the three-fiscal year period (one-fiscal year period in the case of the CEO's Performance Award), the employee can earn from 0% to 200% of their Target Shares. The fair value of these Performance Awards and all Deferred Awards granted is based on the closing price of our common stock on the grant date. For non-CEO Performance Awards issued during Fiscal 2014 (the “2014 Performance Awards”), the Target Shares earned can range from 0% to 300% and depend on the achievement of adjusted earnings per share for the three-fiscal year performance period and our total shareholder return (“TSR”) relative to that of companies in our peer group for the same period. The 2014 Performance Awards cliff vest, if earned, after a three year service period. The 2014 Performance Awards grant date fair value was estimated using a Monte Carlo simulation covering the period from the valuation date through the end of the performance period using our simulated stock price as well as the TSR of companies in our peer group. Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock-based compensation expense, as it relates to Performance Awards, is also adjusted based on the Company's estimate of the percentage of the aggregate Target Shares expected to be earned. | ||||||||||||||||||||||
At January 31, 2015, the Company had 904,283 shares available for grant under the Equity Plan. | ||||||||||||||||||||||
3. STOCK-BASED COMPENSATION (Continued) | ||||||||||||||||||||||
Changes in the Company’s Unvested Stock Awards during Fiscal 2014, Fiscal 2013 and Fiscal 2012 | ||||||||||||||||||||||
Deferred Awards | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | |||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Unvested Deferred Awards at beginning of year | 691 | $ | 49.27 | 560 | $ | 49.53 | 406 | $ | 47.96 | |||||||||||||
Granted | 273 | 48.5 | 395 | 48.93 | 518 | 49.06 | ||||||||||||||||
Vested (1) | (229 | ) | 48.97 | (205 | ) | 49.46 | (198 | ) | 45.33 | |||||||||||||
Forfeited | (143 | ) | 49.31 | (59 | ) | 48.82 | (166 | ) | 49.22 | |||||||||||||
Unvested Deferred Awards at end of year | 592 | $ | 49.02 | 691 | $ | 49.27 | 560 | $ | 49.53 | |||||||||||||
____________________________________________ | ||||||||||||||||||||||
-1 | In Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company withheld shares of 21,788, 2,089 and 2,200, respectively, to satisfy minimum withholding tax requirements. These shares were immediately retired. | |||||||||||||||||||||
Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $16.1 million as of January 31, 2015, which will be recognized over a weighted average period of approximately 2.1 years. | ||||||||||||||||||||||
The fair value of Deferred Awards held by the Company's employees that vested during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was approximately $11.4 million, $9.8 million and $10.0 million, respectively. | ||||||||||||||||||||||
Performance Awards | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||
Performance | Average | Performance | Average | Performance | Average | |||||||||||||||||
Shares (1) | Grant Date | Shares (1) | Grant Date | Shares (1) | Grant Date | |||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Unvested Performance Awards at beginning of year | 267 | $ | 47.67 | 172 | $ | 48.59 | 6 | $ | 46.08 | |||||||||||||
Granted | 245 | 50.91 | 204 | 47.89 | 230 | 48.51 | ||||||||||||||||
Vested shares | (107 | ) | 46.34 | (95 | ) | 49.84 | (2 | ) | 45.79 | |||||||||||||
Net shares in excess of (less than) target | — | — | — | — | (13 | ) | 51.4 | |||||||||||||||
Forfeited | (60 | ) | 48.87 | (14 | ) | 47.55 | (49 | ) | 47.37 | |||||||||||||
Unvested Performance Awards at end of year | 345 | $ | 50.18 | 267 | $ | 47.67 | 172 | $ | 48.59 | |||||||||||||
____________________________________________ | ||||||||||||||||||||||
-1 | For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period. | |||||||||||||||||||||
Based on the current number of Performance Awards expected to be earned, the total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $6.1 million as of January 31, 2015, which will be recognized over a weighted average period of approximately 2.2 years. | ||||||||||||||||||||||
The fair value of Performance Awards held by the Company's employees that vested during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was approximately $5.5 million, $5.0 million and $0.1 million, respectively. | ||||||||||||||||||||||
3. STOCK-BASED COMPENSATION (Continued) | ||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||
No stock options were issued during Fiscal 2014, Fiscal 2013 and Fiscal 2012 and at January 31, 2015, there were no unvested stock options. | ||||||||||||||||||||||
Outstanding Stock Options | ||||||||||||||||||||||
Changes in the Company’s outstanding stock options for Fiscal 2014 were as follows: | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||
Options | Average | Options | Average | Options | Average | |||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Options outstanding at beginning of year | 34 | $ | 28.77 | 84 | $ | 30.08 | 154 | $ | 30.98 | |||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||
Exercised (1) | (2 | ) | 24.54 | (49 | ) | 31.06 | (68 | ) | 32.03 | |||||||||||||
Forfeited | (2 | ) | 29.54 | (1 | ) | 27.11 | (2 | ) | 12.07 | |||||||||||||
Options outstanding at end of year (2) | 30 | $ | 29.05 | 34 | $ | 28.77 | 84 | $ | 30.08 | |||||||||||||
Options exercisable at end of year (2) | 30 | $ | 29.05 | 34 | $ | 28.77 | 84 | $ | 30.08 | |||||||||||||
____________________________________________ | ||||||||||||||||||||||
-1 | The aggregate intrinsic value of options exercised was approximately $0.1 million, $0.9 million and $1.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||||||||||
-2 | The aggregate intrinsic value of options outstanding and exercisable at the end of Fiscal 2014, Fiscal 2013 and Fiscal 2012 was approximately $0.9 million, $0.8 million and $1.6 million, respectively. | |||||||||||||||||||||
The following table summarizes information regarding options outstanding at January 31, 2015: | ||||||||||||||||||||||
Options Outstanding and Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | |||||||||||||||||||
$22.02 | $31.63 | 30 | 29.05 | 3.3 | ||||||||||||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consist of the following (in thousands): | ||||||||||
Asset | 31-Jan-15 | 1-Feb-14 | ||||||||
Life | ||||||||||
Property and equipment: | ||||||||||
Land and land improvements | — | $ | 3,403 | $ | 3,403 | |||||
Building and improvements | 20-25 yrs | 35,548 | 35,548 | |||||||
Material handling equipment | 10-15 yrs | 48,479 | 48,345 | |||||||
Leasehold improvements | 3-15 yrs | 339,474 | 350,451 | |||||||
Store fixtures and equipment | 3-10 yrs | 231,797 | 234,151 | |||||||
Capitalized software | 3-10 yrs | 120,054 | 63,874 | |||||||
Construction in progress | — | 24,644 | 43,213 | |||||||
803,399 | 778,985 | |||||||||
Less accumulated depreciation and amortization | (493,098 | ) | (466,836 | ) | ||||||
Property and equipment, net | $ | 310,301 | $ | 312,149 | ||||||
The Company conducted a review of its store portfolio using business hurdles management designed to enhance profitability and improve overall operating results. Based on this review, the Company compiled a list of underperforming stores targeted for closure (the “Disposition List”). As a result of this review the Company closed 35 stores in Fiscal 2014 and 41 stores in Fiscal 2013. The Company also identified additional underperforming stores for which the Company will review its options for improving their financial performance, including but not limited to negotiating occupancy relief, in order to achieve the business hurdles. If these stores are unable to do so, then the Company will move them to the Disposition List. | ||||||||||
At January 31, 2015, the Company performed impairment testing on 1,063 stores with a total net book value of $138.9 million. During Fiscal 2014, the Company recorded $11.1 million of impairment charges primarily related to 74 underperforming stores, of which 44 were fully impaired and 30 were partially impaired. Of the 74 underperforming stores 69 were in the U.S. and five were in Canada. As of January 31, 2015, the aggregate net book value of the stores that were partially impaired was approximately $3.6 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows. Consistent with its impairment policy, the Company concluded that changes in circumstances affecting the carrying value of stores included on the Disposition List required the Company to review all stores included on the Disposition List regardless of whether the store had been open for at least two years. Impairment charges for all stores were recorded as a result of revenue and/or gross margins not meeting targeted levels and accelerated store lease termination dates. | ||||||||||
At February 1, 2014, the Company performed impairment testing on 1,066 stores with a total net book value of $156.9 million. During Fiscal 2013, the Company recorded $20.5 million of store impairment charges primarily related to 127 underperforming stores, of which 106 were fully impaired and 21 were partially impaired. Of the 127 underperforming stores 109 were in the U.S. and 18 were in Canada. | ||||||||||
Company management continues to believe that making progress on its systems implementations will be one of the key drivers to improve its operations and strengthen its financial performance. During the second quarter of Fiscal 2013 the Company established a strategic long term systems plan. As part of this plan, the Company concluded that certain development costs previously incurred were no longer relevant and deemed certain systems to be obsolete and needed to be replaced by enhanced capabilities in order to incorporate industry best practices as well as service our international franchisees and wholesale business partners. Accordingly, the Company recorded asset impairment charges of $9.1 million and incurred $1.2 million of selling, general and administrative expenses related to the write-down of some previously capitalized development costs and obsolete systems. | ||||||||||
At February 2, 2013, the Company performed impairment testing on 1,045 stores with a total net book value of $175.3 million. During Fiscal 2012, the Company recorded $2.3 million of impairment charges primarily related to six underperforming stores, of which two were fully impaired and four were partially impaired. All underperforming stores were in the U.S. | ||||||||||
4. PROPERTY AND EQUIPMENT (Continued) | ||||||||||
During Fiscal 2014, the Company capitalized approximately $42.4 million of external software costs and approximately $11.6 million of internal programming and development costs, of which $0.9 million was related to stock-based compensation. During Fiscal 2013, the Company capitalized approximately $19.5 million of external software costs and approximately $8.7 million of internal programming and development costs, of which $0.5 million was related to stock-based compensation. During Fiscal 2012, the Company capitalized approximately $12.9 million of external software costs and approximately $3.8 million of internal programming and development costs. Amortization expense of capitalized software was approximately $11.1 million, $7.0 million and $7.4 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||||
As of January 31, 2015, the Company had approximately $6.6 million in property and equipment for which payment had not been made, which was included in accrued expenses and other current liabilities. |
CREDIT_FACILITY
CREDIT FACILITY | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
CREDIT FACILITY | CREDIT FACILITY | |||||||
The Company and certain of its domestic subsidiaries maintain a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), Bank of America, N.A., HSBC Business Credit (USA) Inc., and JPMorgan Chase Bank, N.A. as lenders (collectively, the “Lenders”), and Wells Fargo, as Administrative Agent, Collateral Agent and Swing Line Lender (the “Credit Agreement”). The Credit Agreement was amended and restated on March 4, 2014 to incorporate all prior amendments, and the provisions below reflect the amended and restated Credit Agreement. | ||||||||
The Credit Agreement, which expires in August 2018, consists of a $200 million asset based revolving credit facility, with a $50 million sublimit for standby and documentary letters of credit and an uncommitted accordion feature that could provide up to $25 million of additional availability. Revolving credit loans outstanding under the Credit Agreement bear interest, at the Company’s option, at: | ||||||||
(i) | the prime rate plus a margin of 0.50% to 0.75% based on the amount of the Company’s average excess availability under the facility; or | |||||||
(ii) | the London InterBank Offered Rate, or “LIBOR”, for an interest period of one, two, three or six months, as selected by the Company, plus a margin of 1.50% to 1.75% based on the amount of the Company’s average excess availability under the facility. | |||||||
The Company is charged an unused line fee of 0.25% on the unused portion of the commitments. Letter of credit fees range from 0.75% to 0.875% for commercial letters of credit and range from 1.00% to 1.25% for standby letters of credit. Letter of credit fees are determined based on the amount of the Company's average excess availability under the facility. The amount available for loans and letters of credit under the Credit Agreement is determined by a borrowing base consisting of certain credit card receivables, certain inventory and the fair market value of certain real estate, subject to certain reserves. | ||||||||
The outstanding obligations under the Credit Agreement may be accelerated upon the occurrence of certain events, including, among others, non-payment, breach of covenants, the institution of insolvency proceedings, defaults under other material indebtedness and a change of control, subject, in the case of certain defaults, to the expiration of applicable grace periods. The Company is not subject to any early termination fees. | ||||||||
The Credit Agreement contains covenants, which include conditions on stock buybacks and the payment of cash dividends or similar payments. Credit extended under the Credit Agreement is secured by a first priority security interest in substantially all of the Company’s U.S. assets excluding intellectual property, software, equipment and fixtures. | ||||||||
On March 4, 2014, the Credit Agreement was amended to permit the payment of dividends, subject to certain conditions, to increase the revolving credit limit from $150 million to its current $200 million and to extend the term from August 2017 to August 2018, and was restated to incorporate all prior amendments. In conjunction with this amendment and restatement, the Company paid approximately $0.3 million in additional deferred financing costs. | ||||||||
As of January 31, 2015, the Company has capitalized an aggregate of approximately $4.0 million in deferred financing costs related to the Credit Agreement. The unamortized balance of deferred financing costs at January 31, 2015 was approximately $1.2 million. Unamortized deferred financing costs are amortized over the remaining term of the Credit Agreement. | ||||||||
The table below presents the components (in millions) of the Company’s credit facility: | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
Credit facility maximum | $ | 200 | $ | 150 | ||||
Borrowing base | 183.2 | 150 | ||||||
Outstanding borrowings | — | — | ||||||
Letters of credit outstanding—merchandise | — | 1.2 | ||||||
Letters of credit outstanding—standby | 9.1 | 9.9 | ||||||
Utilization of credit facility at end of period | 9.1 | 11.1 | ||||||
Availability (1) | $ | 174.1 | $ | 138.9 | ||||
Interest rate at end of period | 3.8 | % | 3.8 | % | ||||
Fiscal | Fiscal | |||||||
2014 | 2013 | |||||||
Average end of day loan balance during the period | $ | 9.4 | $ | — | ||||
Highest end of day loan balance during the period | 40.9 | 10.4 | ||||||
Average interest rate | 3.2 | % | 3.8 | % | ||||
____________________________________________ | ||||||||
-1 | The sublimit availability for letters of credit was $40.9 million and $113.9 million at January 31, 2015 and February 1, 2014, respectively. | |||||||
Letter of credit fees were immaterial in Fiscal 2014 and approximated $0.2 million in each of Fiscal 2013 and Fiscal 2012, respectively, and are included in cost of sales. |
INTEREST_INCOME_EXPENSE_NET
INTEREST INCOME (EXPENSE), NET | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
INTEREST INCOME (EXPENSE), NET | INTEREST EXPENSE (INCOME), NET | |||||||||||
The following table presents the components of the Company’s interest expense, net (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
31-Jan-15 | February 1, | February 2, | ||||||||||
2014 | 2013 | |||||||||||
Interest income | $ | 1,120 | $ | 1,123 | $ | 988 | ||||||
Less: | ||||||||||||
Interest expense – revolver | 313 | — | — | |||||||||
Interest expense – credit facilities | 92 | 120 | 146 | |||||||||
Unused line fee | 447 | 305 | 422 | |||||||||
Amortization of deferred financing fees | 352 | 364 | 364 | |||||||||
Other interest and fees | 84 | 69 | 76 | |||||||||
Total interest expense | 1,288 | 858 | 1,008 | |||||||||
Interest expense (income), net | $ | (168 | ) | $ | 265 | $ | (20 | ) | ||||
PREPAID_EXPENSES_AND_OTHER_CUR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Prepaid Expenses And Other Current Assets [Text Block] | PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||||
Prepaid expenses and other current assets are comprised of the following (in thousands): | |||||||||
31-Jan-15 | 1-Feb-14 | ||||||||
Prepaid property expense | $ | 20,781 | $ | 20,933 | |||||
Prepaid income taxes | 10,289 | 3,930 | |||||||
Prepaid maintenance contracts | 3,664 | 3,124 | |||||||
Prepaid insurance | 2,393 | 2,582 | |||||||
Other | 2,222 | 3,013 | |||||||
Prepaid expenses and other current assets | $ | 39,349 | $ | 33,582 | |||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
Accrued expenses and other current liabilities are comprised of the following (in thousands): | |||||||||
31-Jan-15 | 1-Feb-14 | ||||||||
Accrued salaries and benefits | $ | 33,633 | $ | 27,597 | |||||
Customer liabilities | 32,794 | 31,247 | |||||||
Accrued freight | 6,622 | 5,267 | |||||||
Sales taxes and other taxes payable | 6,369 | 6,689 | |||||||
Accrued marketing | 5,794 | 5,075 | |||||||
Accrued store expenses | 4,573 | 8,410 | |||||||
Accrued insurance | 3,759 | 4,676 | |||||||
Accrued real estate expenses | 3,717 | 7,172 | |||||||
Accrued construction-in-progress | 3,631 | 8,277 | |||||||
Accrued professional fees | 2,633 | 2,369 | |||||||
Accrued short-term restructuring costs | 798 | 941 | |||||||
Other | 14,401 | 11,938 | |||||||
Accrued expenses and other current liabilities | $ | 118,724 | $ | 119,658 | |||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||||
Operating Lease Commitments | ||||||||||
The Company leases all of its stores, offices and distribution facilities (except the Ft. Payne, Alabama distribution center which the Company owns), and certain office equipment, store fixtures and automobiles, under operating leases expiring through 2025. The leases require fixed minimum annual rental payments plus, under the terms of certain leases, additional payments for taxes, other expenses and additional rent based upon sales. | ||||||||||
Store, office and distribution facilities minimum rent, contingent rent and sublease income are as follows (in thousands): | ||||||||||
Fiscal Year Ended | ||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | ||||||||
2015 | ||||||||||
Minimum rentals | 164,510 | 168,112 | 166,022 | |||||||
Additional rent based upon sales | 797 | 943 | 1,270 | |||||||
Sublease income | (2,967 | ) | (1,138 | ) | (369 | ) | ||||
9 | COMMITMENTS AND CONTINGENCIES (Continued) | |||||||||
Future minimum annual lease payments under the Company's operating leases at January 31, 2015 were as follows (in thousands): | ||||||||||
Minimum Operating Lease Payments | ||||||||||
2015 | $ | 156,208 | ||||||||
2016 | 143,318 | |||||||||
2017 | 126,449 | |||||||||
2018 | 108,901 | |||||||||
2019 | 96,534 | |||||||||
Thereafter | 245,981 | |||||||||
Total minimum lease payments | $ | 877,391 | ||||||||
Purchase Commitments | ||||||||||
As of January 31, 2015, the Company has entered into various purchase commitments for merchandise for re-sale of approximately $288.7 million and approximately $9.4 million for equipment, construction and other non-merchandise commitments. | ||||||||||
Employment Agreements | ||||||||||
The Company has an employment agreement with its President and Chief Executive Officer, which provides for severance of two times the sum of base salary plus bonus, and certain other payments and benefits following any termination without cause or for “good reason”. As of January 31, 2015, these cash severance benefits approximated $6.1 million. In the event of a change in control of the Company, certain executives will receive, in the aggregate, approximately $23.2 million of cash severance benefits should they either be terminated or voluntarily terminate their employment due to a degradation of duties as defined in their agreement. |
LEGAL_AND_REGULATORY_MATTERS
LEGAL AND REGULATORY MATTERS | 12 Months Ended |
Jan. 31, 2015 | |
LEGAL AND REGULATORY MATTERS [Abstract] | |
Legal Matters and Contingencies [Text Block] | LEGAL AND REGULATORY MATTERS |
The Company is involved in various legal proceedings arising in the normal course of business. In the opinion of management, any ultimate liability arising out of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||
The components of income before taxes are as follows (in thousands): | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
U.S. | $ | 47,888 | $ | 36,487 | $ | 36,948 | |||||||
Foreign | 31,987 | 40,061 | 52,747 | ||||||||||
Total | $ | 79,875 | $ | 76,548 | $ | 89,695 | |||||||
11 | INCOME TAXES (Continued) | ||||||||||||
The components of the Company's provision for income taxes consisted of the following (in thousands): | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Current - | |||||||||||||
Federal | $ | 8,212 | $ | 13,240 | $ | 7,575 | |||||||
State | 3,691 | 4,371 | 5,230 | ||||||||||
Foreign | 5,457 | 9,463 | 11,674 | ||||||||||
Total current | 17,360 | 27,074 | 24,479 | ||||||||||
Deferred - | |||||||||||||
Federal | 5,260 | (1,513 | ) | 3,045 | |||||||||
State | 1,426 | (731 | ) | (762 | ) | ||||||||
Foreign | (1,059 | ) | (1,308 | ) | (310 | ) | |||||||
Total deferred | 5,627 | (3,552 | ) | 1,973 | |||||||||
Tax provision as shown on the consolidated statements of operations | $ | 22,987 | $ | 23,522 | $ | 26,452 | |||||||
Effective tax rate | 28.8 | % | 30.7 | % | 29.5 | % | |||||||
A reconciliation between the calculated tax provision on income based on statutory rates in effect and the effective tax rate for is as follows (in thousands): | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Calculated income tax provision at federal statutory rate | $ | 27,956 | $ | 26,792 | $ | 31,393 | |||||||
State income taxes, net of federal benefit | 3,326 | 2,366 | 2,904 | ||||||||||
Foreign tax rate differential (1) | (8,849 | ) | (7,224 | ) | (9,044 | ) | |||||||
Nondeductible expenses | 1,685 | 1,792 | 1,611 | ||||||||||
Unrecognized tax benefit | 807 | (1,347 | ) | (743 | ) | ||||||||
Change in valuation allowance | (1,472 | ) | 447 | 1,395 | |||||||||
Other | (466 | ) | 696 | (1,064 | ) | ||||||||
Total tax provision | $ | 22,987 | $ | 23,522 | $ | 26,452 | |||||||
(1) The foreign tax rate differential is due to the Company having a lower effective tax rate as compared to its U.S. federal statutory tax rate of 35%. The Company has substantial operations in both Hong Kong and Canada which has lower statutory income tax rates as compared to the U.S. The Company's foreign effective tax rates for Fiscal 2014, Fiscal 2013 and Fiscal 2012 were 13.7%, 20.4% and 21.5%, respectively. This rate will fluctuate from year to year in response to changes in the mix of pre-tax earnings by country as well as changes in foreign jurisdiction tax laws. | |||||||||||||
11 | INCOME TAXES (Continued) | ||||||||||||
The tax effects of temporary differences which give rise to deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
January 31, | 1-Feb-14 | ||||||||||||
2015 | |||||||||||||
Current – | |||||||||||||
Assets | |||||||||||||
Inventory | 4,128 | 1,067 | |||||||||||
Reserves | 15,169 | 13,256 | |||||||||||
Total current assets | 19,297 | 14,323 | |||||||||||
Liabilities-prepaid expenses | (4,217 | ) | (3,464 | ) | |||||||||
Total current, net | 15,080 | 10,859 | |||||||||||
Noncurrent – | |||||||||||||
Property and equipment | 7,654 | 18,446 | |||||||||||
Deferred rent | 14,830 | 14,325 | |||||||||||
Equity compensation | 7,101 | 6,792 | |||||||||||
Reserves and other | 5,995 | 6,243 | |||||||||||
Net operating loss carryover and other tax credits | 1,930 | 1,842 | |||||||||||
Capital loss carryover | — | 1,560 | |||||||||||
Total noncurrent, gross | 37,510 | 49,208 | |||||||||||
Valuation allowance | (1,930 | ) | (3,402 | ) | |||||||||
Net noncurrent | 35,580 | 45,806 | |||||||||||
Total deferred tax asset, net | $ | 50,660 | $ | 56,665 | |||||||||
As of January 31, 2015, the Company has not provided Federal taxes on approximately $231.2 million of unremitted earnings of its foreign subsidiaries. The Company intends to reinvest these earnings to fund expansion in these and other markets outside the U.S. Accordingly, the Company has not provided any provision for income tax expense in excess of foreign jurisdiction income tax requirements relative to such unremitted earnings in the accompanying financial statements. Due to the complexities associated with the hypothetical calculation, including the availability of foreign tax credits, the Company has concluded it is not practicable to determine the unrecognized deferred tax liability related to the undistributed earnings. | |||||||||||||
The Company has foreign net operating loss carryforwards of approximately $4.1 million which do not expire. The Company also has an Alternative Minimum Tax credit ("AMT") in Puerto Rico of approximately $0.8 million which does not expire. During Fiscal 2014 the Company's U.S. capital loss carryover expired unused. This resulted in a reduction of the deferred tax asset as well as a reduction of the valuation allowance of approximately $1.6 million. | |||||||||||||
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company has concluded that it is more likely than not that certain deferred tax assets cannot be used in the foreseeable future, principally the foreign net operating loss carryforwards and the AMT credit in Puerto Rico. Accordingly, a valuation allowance has been established for these tax benefits. However, to the extent that tax benefits related to these are realized in the future, the reduction of the valuation allowance will reduce income tax expense accordingly. | |||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. | |||||||||||||
The Company's income taxes payable have been reduced by the tax benefits from employee stock plan awards. For stock options, the Company receives an income tax benefit calculated as the tax effect of the difference between the fair market value of the stock issued at the time of the exercise and the exercise price. For Deferred Awards and Performance Awards, the | |||||||||||||
11 | INCOME TAXES (Continued) | ||||||||||||
Company receives an income tax benefit upon the award's vesting equal to the tax effect of the underlying stock's fair market value. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
Tax positions are evaluated in a two step process. The Company first determines whether it is more-likely-than-not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. | |||||||||||||
A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands): | |||||||||||||
January 31, | 1-Feb-14 | ||||||||||||
2015 | |||||||||||||
Beginning Balance | $ | 4,412 | $ | 5,919 | |||||||||
Additions for current year tax positions | 833 | 490 | |||||||||||
Additions for prior year tax positions | 1,070 | 349 | |||||||||||
Reductions for prior year tax positions | (156 | ) | (54 | ) | |||||||||
Settlements | (43 | ) | (851 | ) | |||||||||
Reductions due to a lapse of the applicable statute of limitations | (637 | ) | (1,441 | ) | |||||||||
$ | 5,479 | $ | 4,412 | ||||||||||
Approximately $5.3 million of unrecognized tax benefits at January 31, 2015 would affect the Company's effective tax rate if recognized. The Company believes it is reasonably possible that there may be a reduction of approximately $3.6 million of unrecognized tax benefits in the next 12 months as a result of settlements with taxing authorities and statute of limitations expirations. | |||||||||||||
The Company accrued interest and penalties related to unrecognized tax benefits as part of the provision for income taxes. At January 31, 2015 and February 1, 2014 accrued interest and penalties included in unrecognized tax benefits were approximately $1.0 million and $1.4 million, respectively. Interest, penalties and reversals, thereof, net of taxes, was a benefit of $0.4 million, $0.4 million and $0.2 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
The Company is subject to tax in the United States and foreign jurisdictions, including Canada and Hong Kong. The Company, joined by its domestic subsidiaries, files a consolidated income tax return for Federal income tax purposes. The Company, with certain exceptions, is no longer subject to income tax examinations by U.S. Federal, state and local or foreign tax authorities for tax years fiscal 2010 and prior. |
SAVINGS_AND_INVESTMENT_PLANS
SAVINGS AND INVESTMENT PLANS | 12 Months Ended |
Jan. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
SAVINGS AND INVESTMENT PLANS | RETIREMENT AND SAVINGS PLANS |
401(k) Plan | |
The Company has adopted The Children's Place 401(k) Savings Plan (the “401(k) Plan”), which qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”). The 401(k) Plan is a defined contribution plan established to provide retirement benefits for employees. The 401(k) Plan is employee funded up to an elective annual deferral and also provides for Company matching contributions up to a certain percentage amount of the employee's salary. | |
The 401(k) Plan is available for all U.S. employees who have completed 90 days of service with the Company. Following guidance in IRS Notice 98-52 related to the design‑based alternative, or “safe harbor,” 401(k) plan method, the Company modified its 401(k) Plan for Company match contributions for non-highly compensated associates, as defined in the Code. For non-highly compensated associates, the Company matches the first 3% of the participant's contribution and 50% of the next 2% of the participant's contribution and the Company match contribution vests immediately. For highly compensated associates, the Company matches the lesser of 50% of the participant's contribution or 2.5% of the participant's covered compensation and the Company match contribution vests over 5 years. The Company's matching contributions were approximately $2.2 million, $2.2 million, and $2.0 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |
Deferred Compensation Plan | |
The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified, unfunded plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to deferred stock awards. The Company may, but is not required to, credit participants with additional Company contribution amounts. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15.0 years. During fiscal 2010, the Deferred Compensation Plan was amended to allow for cash deferrals made by members of the Board of Directors to be invested in shares of the Company’s common stock. Such elections are irrevocable and will be settled in shares of common stock. All other deferred amounts are payable in the form in which they were made; cash deferrals are payable in cash and stock deferrals are payable in stock. Earlier distributions are not permitted except in the case of an unforeseen hardship. | |
The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability; however, the assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The investments of the rabbi trust consist of company-owned life insurance policies (“COLIs”) and Company stock. The Deferred Compensation Plan liability, excluding Company stock, is included in other long-term liabilities and changes in the balance are recognized as compensation expense. The cash surrender values of the COLIs are included in other assets and related earnings and losses are recognized as investment income or loss, which is included in selling, general and administrative expenses. Company stock deferrals are included in the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral and any subsequent changes in fair market value are not recognized. | |
The Deferred Compensation Plan liability, excluding Company stock, at fair value, was approximately $0.5 million and $0.3 million at January 31, 2015 and February 1, 2014, respectively. The cash surrender value of the COLIs, which reflects the underlying assets at fair value, was approximately $0.3 million and $0.3 million at January 31, 2015 and February 1, 2014, respectively. Company stock was $1.7 million and $1.6 million at January 31, 2015 and February 1, 2014, respectively. | |
Other Plans | |
Under statutory requirements, the Company contributes to retirement plans for its Canadian, Puerto Rican and Asian operations. Contributions under these plans were approximately $0.3 million in each of Fiscal 2014 and Fiscal 2013 and $0.2 million in Fiscal 2012. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||||||
In accordance with the “Segment Reporting” topic of the FASB ASC, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores and U.S. revenue from the Company's wholesale partners. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale partner and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales from external customers are derived from merchandise sales and the Company has no major customers that account for more than 10% of its net sales. As of January 31, 2015, The Children’s Place U.S. operated 963 stores and The Children’s Place International operated 134 stores. As of February 1, 2014, The Children’s Place U.S. operated 974 stores and The Children’s Place International operated 133 stores. | ||||||||||||
The following tables provide segment level financial information for Fiscal 2014, Fiscal 2013 and Fiscal 2012 (dollars in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | ||||||||||
Net sales: | ||||||||||||
The Children’s Place U.S. | $ | 1,528,762 | $ | 1,528,276 | $ | 1,557,549 | ||||||
The Children’s Place International (1) | 232,562 | 237,513 | 251,937 | |||||||||
Total net sales | $ | 1,761,324 | $ | 1,765,789 | $ | 1,809,486 | ||||||
Gross profit: | ||||||||||||
The Children’s Place U.S. | $ | 535,226 | $ | 558,156 | $ | 584,081 | ||||||
The Children’s Place International | 87,074 | 97,365 | 107,359 | |||||||||
Total gross profit | $ | 622,300 | $ | 655,521 | $ | 691,440 | ||||||
Gross Margin: | ||||||||||||
The Children’s Place U.S. | 35 | % | 36.5 | % | 37.5 | % | ||||||
The Children’s Place International | 37.4 | % | 41 | % | 42.6 | % | ||||||
Total gross margin | 35.3 | % | 37.1 | % | 38.2 | % | ||||||
Operating income: | ||||||||||||
The Children’s Place U.S. (2) | $ | 63,586 | $ | 60,267 | $ | 68,346 | ||||||
The Children’s Place International (3) | 16,457 | 16,016 | 21,369 | |||||||||
Total operating income | $ | 80,043 | $ | 76,283 | $ | 89,715 | ||||||
Operating income as a percent of net sales: | ||||||||||||
The Children’s Place U.S. | 4.2 | % | 3.9 | % | 4.4 | % | ||||||
The Children’s Place International | 7.1 | % | 6.7 | % | 8.5 | % | ||||||
Total operating income | 4.5 | % | 4.3 | % | 5 | % | ||||||
Depreciation and amortization: | ||||||||||||
The Children’s Place U.S. | $ | 52,565 | $ | 55,595 | $ | 65,066 | ||||||
The Children’s Place International | 7,929 | 9,263 | 12,369 | |||||||||
Total depreciation and amortization | $ | 60,494 | $ | 64,858 | $ | 77,435 | ||||||
Capital expenditures: | ||||||||||||
The Children’s Place U.S. | $ | 68,847 | $ | 64,486 | $ | 75,945 | ||||||
The Children’s Place International | 3,365 | 8,120 | 14,237 | |||||||||
Total capital expenditures | $ | 72,212 | $ | 72,606 | $ | 90,182 | ||||||
13 | SEGMENT INFORMATION (Continued) | |||||||||||
-1 | Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. | |||||||||||
-2 | Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $(0.1) million and $(0.9) million for Fiscal 2014 and Fiscal 2013, respectively. Also includes a $10.5 million impairment charge for Fiscal 2014 and a $25.4 million impairment charge for Fiscal 2013. Also includes additional costs incurred related to corporate severance and reorganizations of approximately $7.1 million and $4.2 million for Fiscal 2014 and Fiscal 2013, respectively. | |||||||||||
-3 | Includes a $0.6 million and $4.2 million impairment charge for Fiscal 2014 and Fiscal 2013, respectively. | |||||||||||
January 31, | February 1, 2014 | |||||||||||
2015 | ||||||||||||
Total assets: | ||||||||||||
The Children’s Place U.S. | $ | 805,462 | $ | 824,893 | ||||||||
The Children’s Place International | 153,156 | 165,737 | ||||||||||
Total assets | $ | 958,618 | $ | 990,630 | ||||||||
Geographic Information | ||||||||||||
The Company's long-lived assets are located in the following countries: | ||||||||||||
January 31, | 1-Feb-14 | |||||||||||
2015 | ||||||||||||
Long-lived assets (1): | ||||||||||||
United States | $ | 289,820 | $ | 283,059 | ||||||||
Canada | 22,697 | 31,046 | ||||||||||
Asia | 1,242 | 1,399 | ||||||||||
Total long-lived assets | $ | 313,759 | $ | 315,504 | ||||||||
____________________________________________ | ||||||||||||
-1 | The Company's long-lived assets are comprised of net property and equipment and other assets. |
QUARTERLY_FINANCIAL_DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
QUARTERLY FINANCIAL DATA | QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
In the opinion of management, the unaudited consolidated financial statements presented below contain all material adjustments, consisting of normal recurring accruals, necessary to present fairly the Company's financial position and results of operations and have been prepared in a manner consistent with the audited financial statements contained herein. Due to the seasonal nature of the Company's business, the results of operations in any given interim period are not indicative of operating results for a full fiscal year. | |||||||||||||||||
14 | QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued) | ||||||||||||||||
The following tables reflect quarterly consolidated statements of income for the periods indicated (unaudited): | |||||||||||||||||
Fiscal Year Ended January 31, 2015 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter (1) | ||||||||||||||
Net sales | $ | 410,149 | $ | 384,628 | $ | 487,304 | $ | 479,243 | |||||||||
Gross profit | 148,261 | 119,118 | 190,111 | 164,810 | |||||||||||||
Selling, general and administrative expenses | 113,720 | 117,111 | 116,120 | 123,735 | |||||||||||||
Asset impairment charges | — | 3,045 | 3,306 | 4,794 | |||||||||||||
Other costs (income) | 231 | (98 | ) | (286 | ) | 85 | |||||||||||
Depreciation and amortization | 14,227 | 15,557 | 15,168 | 15,542 | |||||||||||||
Operating income (loss) | 20,083 | (16,497 | ) | 55,803 | 20,654 | ||||||||||||
Income (loss) before income taxes | 20,102 | (16,557 | ) | 55,721 | 20,609 | ||||||||||||
Provision (benefit) for income taxes | 6,506 | (5,870 | ) | 18,779 | 3,572 | ||||||||||||
Net income (loss) | 13,596 | (10,687 | ) | 36,942 | 17,037 | ||||||||||||
Diluted earnings (loss) per share | $ | 0.61 | $ | (0.49 | ) | $ | 1.7 | $ | 0.79 | ||||||||
Diluted weighted average common shares outstanding | 22,419 | 21,837 | 21,756 | 21,512 | |||||||||||||
Cash dividends declared and paid per common share | $ | 0.1325 | $ | 0.1325 | $ | 0.1325 | $ | 0.1325 | |||||||||
____________________________________________ | |||||||||||||||||
(1) Significant items impacting the fourth quarter of Fiscal 2014 include approximately $4.8 million of asset impairment charges and $3.2 million of additional costs related to corporate severance and reorganizations. | |||||||||||||||||
Fiscal Year Ended February 1, 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter (1) | ||||||||||||||
Net sales | $ | 423,164 | $ | 382,448 | $ | 492,680 | $ | 467,497 | |||||||||
Gross profit | 163,268 | 126,182 | 201,761 | 164,310 | |||||||||||||
Selling, general and administrative expenses | 119,008 | 124,408 | 123,521 | 118,716 | |||||||||||||
Asset impairment charges | — | 21,766 | — | 7,867 | |||||||||||||
Other costs (income) | (1,023 | ) | 61 | 200 | (144 | ) | |||||||||||
Depreciation and amortization | 16,824 | 15,593 | 16,473 | 15,968 | |||||||||||||
Operating income (loss) | 28,459 | (35,646 | ) | 61,567 | 21,903 | ||||||||||||
Income (loss) before income taxes | 28,519 | (35,646 | ) | 61,649 | 22,026 | ||||||||||||
Provision (benefit) for income taxes | 9,247 | (12,010 | ) | 19,910 | 6,375 | ||||||||||||
Net income (loss) | 19,272 | (23,636 | ) | 41,739 | 15,651 | ||||||||||||
Diluted earnings (loss) per share | $ | 0.83 | $ | (1.05 | ) | $ | 1.84 | $ | 0.69 | ||||||||
Diluted weighted average common shares outstanding | 23,289 | 22,514 | 22,628 | 22,652 | |||||||||||||
____________________________________________ | |||||||||||||||||
14 | QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued) | ||||||||||||||||
-1 | Significant items impacting the fourth quarter of Fiscal 2013 include approximately $7.9 million of asset impairment charges and $2.0 million of additional costs related to store dispositions. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
Subsequent to January 31, 2015 and through March 24, 2015, the Company repurchased an additional 0.2 million shares for approximately $13.3 million, which brought the total under the 2014 Share Repurchase Program to approximately $73.5 million. | |
The Company's Board of Directors authorized a quarterly cash dividend of $0.15 per share to be paid April 30, 2015 for shareholders of record on the close of business on April 9, 2015. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Company’s Board of Directors based on a number of factors, including business and market conditions, the Company’s future financial performance and other investment priorities. | |
On January 7, 2015, the Board approved an additional $100 million share repurchase authorization as part of the Company’s strategy to return excess capital to shareholders. This share repurchase authorization permits the Company to repurchase shares in the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions, and the Company may suspend or discontinue the program at any time, and may thereafter reinstitute purchases, all without prior announcement. |
SCHEDULE_II
SCHEDULE II | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II | THE CHILDREN'S PLACE, INC. AND SUBSIDIARIES | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Balance at beginning of year | Charged to expense | Deductions | Balance at end of year | ||||||||||||||
Lower of cost or market reserve (1) | |||||||||||||||||
Fiscal year ended January 31, 2015 | $ | 4,268 | $ | — | $ | (2,343 | ) | $ | 1,925 | ||||||||
Fiscal year ended February 1, 2014 | $ | 2,413 | $ | 1,881 | $ | (26 | ) | $ | 4,268 | ||||||||
Fiscal year ended February 2, 2013 | $ | 2,746 | $ | 1,804 | $ | (2,137 | ) | $ | 2,413 | ||||||||
-1 | Reflects adjustment of out-of-season merchandise inventories to realizable value. Column C represents increases to the reserve and Column D represents decreases to the reserve based on quarterly assessments of the reserve. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Fiscal Period, Policy [Policy Text Block] | Fiscal Year | ||||||||||||
The Company's fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31. Fiscal 2012 was a 53-week year. All other years presented were 52-week years. | |||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with U.S. GAAP 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 financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company's financial position or results of operations. | |||||||||||||
Consolidation, Policy [Policy Text Block] | Consolidation | ||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. Intercompany balances and transactions have been eliminated. As of January 31, 2015, the Company does not have any investments in unconsolidated affiliates. The “Consolidation” topic of the FASB ASC is considered when determining whether an entity is subject to consolidation. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |||||||||||||
Stock-based Compensation | Stock-based Compensation | ||||||||||||
The Company's stock-based compensation plans are administered by the Compensation Committee of the Board of Directors (the “Compensation Committee”). The Compensation Committee is comprised of independent members of the Board of Directors (the “Board”). Effective May 20, 2011, the shareholders approved the 2011 Equity Incentive Plan (the "Equity Plan"). Upon adoption of the Equity Plan, the Company ceased granting awards under its 2005 Equity Incentive Plan. The Equity Plan allows the Compensation Committee to grant multiple forms of stock‑based compensation such as stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance stock awards. | |||||||||||||
The Company accounts for its stock‑based compensation in accordance with the provisions of the “Compensation-Stock Compensation” topic of the FASB ASC. These provisions require, among other things: (a) the fair value of all stock awards be expensed over their respective vesting periods; (b) the amount of cumulative compensation cost recognized at any date must at least be equal to the portion of the grant-date value of the award that is vested at that date and (c) that compensation expense include a forfeiture estimate for those shares not expected to vest. Also in accordance with these provisions, for those awards with multiple vest dates, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share | ||||||||||||
The Company reports its earnings (loss) per share in accordance with the “Earnings Per Share” topic of the FASB ASC, which requires the presentation of both basic and diluted earnings (loss) per share on the statements of operations. The diluted weighted average common shares includes adjustments for the potential effects of outstanding stock options, Deferred Awards and Performance Awards, but only in the periods in which such effect is dilutive under the treasury stock method. Included in our basic and diluted weighted average common shares are those shares due to participants in the deferred compensation plan, which are held in treasury stock. Antidilutive stock awards are comprised of stock options and unvested deferred, restricted and performance shares which would have been antidilutive in the application of the treasury stock method in accordance with “Earnings Per Share” topic of FASB ASC. | |||||||||||||
In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Net income | $ | 56,888 | $ | 53,026 | $ | 63,243 | |||||||
Basic weighted average common shares | 21,681 | 22,537 | 24,092 | ||||||||||
Dilutive effect of stock awards | 243 | 298 | 184 | ||||||||||
Diluted weighted average common shares | 21,924 | 22,835 | 24,276 | ||||||||||
Antidilutive stock awards | — | 32 | 10 | ||||||||||
Receivables, Policy [Policy Text Block] | Accounts Receivable | ||||||||||||
Accounts receivable consists of credit and debit card receivables, franchisee and wholesale receivables, landlord construction allowance receivables and other miscellaneous items. Credit and debit card receivables represent credit and debit card sales for which the respective third party service company has yet to remit the cash. The unremitted balance approximates | |||||||||||||
1 | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||
the last few days of related sales for each reporting period. Bad debt associated with these sales is not material. Landlord construction allowance receivables represent landlord contributions to our construction costs of building out the related real estate, primarily new and remodeled stores. Total construction costs are capitalized as property and equipment and the landlord construction allowances are recorded as a lease incentive, a component of deferred rent, which is amortized as a reduction of rent expense over the lease term. | |||||||||||||
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Insurance and Self-Insurance Reserves | ||||||||||||
The Company self-insures and purchases insurance policies to provide for workers' compensation, general liability and property losses, as well as director and officer's liability, vehicle liability and employee medical benefits. The Company estimates risks and records a liability based on historical claim experience, insurance deductibles, severity factors and other actuarial assumptions. The Company records the current portions of employee medical benefits, workers compensation and general liability reserves in accrued expenses and other current liabilities. As of January 31, 2015 and February 1, 2014, the current portions of these reserves were approximately $6.5 million and $7.1 million, respectively. The Company records the long-term portions of employee medical benefits, workers' compensation and general liability reserves in other long-term liabilities. As of January 31, 2015 and February 1, 2014, the long-term portions of these reserves were approximately $6.5 million and $5.5 million, respectively. | |||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | ||||||||||||
Property and equipment are stated at cost. Leasehold improvements are depreciated on a straight-line basis over the shorter of the life of the lease or the estimated useful life of the asset. All other property and equipment is depreciated on a straight-line basis based upon their estimated useful lives, which generally range from three to twenty-five years. Repairs and maintenance are expensed as incurred. | |||||||||||||
The Company accounts for internally developed software intended for internal use in accordance with provisions of the “Intangibles-Goodwill and Other” topic of the FASB ASC. The Company capitalizes development‑stage costs such as direct external costs and direct payroll related costs. When development is substantially complete, the Company amortizes the cost of the software on a straight-line basis over the expected life of the software. Preliminary project costs and post-implementation costs such as training, maintenance and support are expensed as incurred. | |||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Accounting for Impairment of Long-Lived Assets | ||||||||||||
The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include a history trend or projected trend of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In that regard, the Company groups its assets into two categories: corporate-related and store-related. Corporate-related assets consist of those associated with the Company's corporate offices, distribution centers and its information technology systems. Store-related assets consist of leasehold improvements, furniture and fixtures, certain computer equipment and lease related assets associated with individual stores. | |||||||||||||
For store-related assets, the Company reviews all stores that have been open or not remodeled for at least two years, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting two years allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of operating losses, the Company projects future cash flows over the remaining life of the lease and compares the total undiscounted cash flows to the net book value of the related long-lived assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily determines fair market value to be the discounted future cash flows associated with those assets. In evaluating future cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic, competition, and their effect on sales trends. Internal factors include the Company's ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll, and in certain cases, its ability to renegotiate lease costs. | |||||||||||||
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Exit or Disposal Cost Obligations | ||||||||||||
In accordance with the “Exit or Disposal Cost Obligations” topic of the FASB ASC, the Company records its exit and disposal costs at fair value to terminate an operating lease or contract when termination occurs before the end of its term, or when costs will be incurred without future economic benefit to the Company, on the date the Company ceased using the leased property. In cases of employee termination benefits, the Company recognizes an obligation only when all of the following criteria are met: | |||||||||||||
• | management, having the authority to approve the action, commits to a plan of termination; | ||||||||||||
• | the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; | ||||||||||||
• | the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; and | ||||||||||||
• | actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | ||||||||||||
During the first quarter of Fiscal 2012, management approved a plan to exit its distribution center in Ontario, California (the "West Coast DC") and move the operations to its distribution center in Fort Payne, Alabama (the "Southeast DC"). The Company ceased operations at the West Coast DC in May 2012. The lease of the West Coast DC expires in March 2016 and the Company has subleased this facility through March 2016. | |||||||||||||
During the third quarter of Fiscal 2012, management approved a plan to close the Company's distribution center in Dayton, New Jersey ("Northeast DC") and move the operations to its Southeast DC. The Company ceased operations in the Northeast DC during the fourth quarter of fiscal 2012. The lease of its Northeast DC expires in January 2021 and the Company has subleased this facility through January 2021. | |||||||||||||
The following table provides details of the remaining accruals for the West Coast DC and Northeast DC, of which approximately $0.8 million was included in accrued expenses and other current liabilities and approximately $0.7 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Lease Termination Costs | Other Associated Costs | Total | |||||||||||
Balance at February 2, 2013 | $ | 8,376 | $ | — | $ | 8,376 | |||||||
Restructuring costs | (1,413 | ) | 507 | (906 | ) | ||||||||
Payments and other adjustments | (4,284 | ) | (507 | ) | (4,791 | ) | |||||||
Balance at February 1, 2014 | 2,679 | — | 2,679 | ||||||||||
Restructuring costs | (222 | ) | 154 | (68 | ) | ||||||||
Payments and other adjustments | (949 | ) | (154 | ) | (1,103 | ) | |||||||
Balance at January 31, 2015 | $ | 1,508 | $ | — | $ | 1,508 | |||||||
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs | ||||||||||||
The Company capitalizes costs directly associated with acquiring third party financing. Deferred financing costs are included in other assets and are amortized as interest expense over the term of the related indebtedness. At January 31, 2015, deferred financing costs, net of accumulated amortization of $2.7 million, were approximately $1.2 million. At February 1, 2014, deferred financing costs, net of accumulated amortization of $2.4 million, were approximately $1.3 million. | |||||||||||||
Start-up Activities, Cost Policy [Policy Text Block] | Pre-opening Costs | ||||||||||||
Store pre-opening costs consist primarily of occupancy costs, payroll, supply, and marketing expenses, and are expensed as incurred in selling, general and administrative expenses. Pre-opening costs were $1.4 million, $3.3 million and $4.0 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising and Marketing Costs | ||||||||||||
The Company expenses the cost of advertising over the period the advertising is run or displayed. Included in selling, general and administrative expenses for Fiscal 2014, Fiscal 2013 and Fiscal 2012 are advertising and other marketing costs of approximately $30.9 million, $33.8 million and $37.1 million, respectively. | |||||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||||||
We utilize the liability method of accounting for income taxes as set forth in the “Income Taxes” topic of the FASB ASC. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities, as well as for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using currently enacted tax rates that apply to taxable income in effect for the years in which the basis differences and tax assets are expected to be realized. A valuation allowance is recorded when it is more likely than not that any of the deferred tax assets will not be realized. In determining the need for valuation allowances we consider projected future taxable income and the availability of tax planning strategies. If in the future we determine that we would not be able to realize our recorded deferred tax assets, an increase in the valuation allowance would decrease earnings in the period in which such determination is made. | |||||||||||||
We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation | ||||||||||||
The Company has determined that the local currencies of its Canadian and Asian subsidiaries are their functional currencies. In accordance with the “Foreign Currency Matters” topic of the FASB ASC, the assets and liabilities denominated in foreign currency are translated into U.S. dollars at the current rate of exchange existing at period-end and revenues and expenses are translated at average monthly exchange rates. Related translation adjustments are reported as a separate component of stockholders' equity. The Company also transacts certain business in foreign denominated currencies, primarily its Canadian subsidiary purchases inventory in U.S. Dollars, and there are intercompany charges between various subsidiaries. In Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company recorded realized and unrealized gains (losses) on such transactions of approximately $(0.5) million, $0.5 million and $0.1 million, respectively. | |||||||||||||
Legal Costs, Policy [Policy Text Block] | Legal Contingencies | ||||||||||||
The Company reserves for the outcome of litigation and contingencies when it determines an adverse outcome is probable and can estimate losses. Estimates are adjusted as facts and circumstances require. The Company expenses the costs to resolve litigation as incurred, net of amounts, if any, recovered through our insurance coverage | |||||||||||||
Retained Earnings [Policy Text Block] | Retained Earnings | ||||||||||||
There are no restrictions on the Company's retained earnings. | |||||||||||||
Fair Value Measurement and Financial Instruments | Fair Value Measurement and Financial Instruments | ||||||||||||
The “Fair Value Measurements and Disclosure” topic of the FASB ASC provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. | |||||||||||||
This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: | |||||||||||||
• | Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities | ||||||||||||
• | Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly | ||||||||||||
• | Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities | ||||||||||||
The Company’s cash and cash equivalents, short-term investments, accounts receivable, accounts payable and credit facility are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The underlying assets of the Company’s Deferred Compensation Plan, excluding Company stock, fall within Level 2 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement. | |||||||||||||
The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 inputs. Long-lived assets, primarily comprised of property and equipment, held and used with a carrying amount of $15.9 million were written down to their fair value, resulting in an impairment charge of $11.1 million, which was included in earnings for Fiscal 2014. For Fiscal 2013, long-lived assets held and used with a carrying amount of $44.4 million were written down to their fair value, resulting in an impairment charge of $29.6 million, which was included in earnings for Fiscal 2013. For Fiscal 2012, long-lived assets held and used with a carrying amount of $3.1 million were written down to their fair value, resulting in an impairment charge of $2.3 million, which was included in earnings for Fiscal 2012. | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||||||||||||
The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company's retail stores or when received by the customer if the product was purchased via the Internet, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $0.3 million and $1.8 million as of January 31, 2015 and February 1, 2014, respectively, for Internet sales shipped but not yet received by the customer. Sales tax collected from customers is excluded from revenue. | |||||||||||||
An allowance for estimated sales returns is calculated based upon the Company's sales return experience and is recorded in accrued expenses and other current liabilities. The allowance for estimated sales returns was approximately $1.9 million and $1.8 million as of January 31, 2015 and February 1, 2014, respectively. | |||||||||||||
The Company's policy with respect to gift cards is to record revenue as the gift cards are redeemed for merchandise. Prior to their redemption, gift cards are recorded as a liability, included in accrued expenses and other current liabilities. After two years, the Company recognizes breakage income for the estimated portion of unredeemed gift cards that is unlikely to be redeemed. The Company recognized gift card breakage income of approximately $1.6 million, $1.5 million and $1.5 million during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, and is recorded in selling, general and administrative expenses. | |||||||||||||
In October 2012, the Company launched a new points based customer loyalty program to replace the old program that was restricted to the Company's private label credit card customers. In this program, customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. The Company has developed an estimated value of each point earned based on the awards customers can attain less a reasonable breakage rate. The value of each point earned is recorded as deferred revenue. Deferred revenue for loyalty points as of January 31, 2015 and February 1, 2014 was $9.0 million and $5.4 million, respectively. | |||||||||||||
During Fiscal 2012, the Company began an international store expansion program through territorial agreements with franchisees. At January 31, 2015, the Company's franchisees had a total of 72 stores open. The Company generates revenues from the franchisees from the sale of product, sales royalties and territory fees. The Company records gross sales and cost of goods sold on the sale of product to franchisees when the franchisor takes ownership of the product. The Company records gross sales for royalties when the franchisee sells the product to their customers. Under certain agreements the Company receives a fee from each franchisee for exclusive territorial rights. The Company records this territorial fee as deferred revenue and amortizes the fee into gross sales over the life of the territorial agreement. Deferred revenue for franchisees as of January 31, 2015 and February 1, 2014 was $0.8 million and $0.9 million, respectively | |||||||||||||
Inventory, Policy [Policy Text Block] | Inventories | ||||||||||||
Inventories, which consist primarily of finished goods, are stated at the lower of cost or market, with cost determined on an average cost basis. The Company capitalizes supply chain costs in inventory and these costs are reflected in cost of sales as the inventories are sold. Inventory includes items that have been marked down to the Company's best estimate of their lower of cost or market value and an estimate for inventory shrinkage. The Company bases its decision to mark down merchandise upon its current rate of sale, the season and the sell-through of the item. The Company adjusts its inventory based upon an annual physical inventory and shrinkage is estimated in interim periods based upon the historical results of physical inventories in the context of current year facts and circumstances. | |||||||||||||
Cost of Sales, Policy [Policy Text Block] | Cost of Sales (exclusive of depreciation and amortization) | ||||||||||||
In addition to the cost of inventory sold, the Company includes buying, design and distribution expenses, shipping and handling costs on merchandise sold directly to customers, and letter of credit fees in its cost of sales. The Company records all occupancy costs in its cost of sales, except administrative office buildings, which are recorded in selling, general and administrative expenses. All depreciation is reported on a separate line on the Company's consolidated statements of operations. |
BASIS_OF_PRESENTATION_Earnings
BASIS OF PRESENTATION Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | The following table provides details of the remaining accruals for the West Coast DC and Northeast DC, of which approximately $0.8 million was included in accrued expenses and other current liabilities and approximately $0.7 million was included in other long-term liabilities (dollars in thousands): | ||||||||||||
Lease Termination Costs | Other Associated Costs | Total | |||||||||||
Balance at February 2, 2013 | $ | 8,376 | $ | — | $ | 8,376 | |||||||
Restructuring costs | (1,413 | ) | 507 | (906 | ) | ||||||||
Payments and other adjustments | (4,284 | ) | (507 | ) | (4,791 | ) | |||||||
Balance at February 1, 2014 | 2,679 | — | 2,679 | ||||||||||
Restructuring costs | (222 | ) | 154 | (68 | ) | ||||||||
Payments and other adjustments | (949 | ) | (154 | ) | (1,103 | ) | |||||||
Balance at January 31, 2015 | $ | 1,508 | $ | — | $ | 1,508 | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Net income | $ | 56,888 | $ | 53,026 | $ | 63,243 | |||||||
Basic weighted average common shares | 21,681 | 22,537 | 24,092 | ||||||||||
Dilutive effect of stock awards | 243 | 298 | 184 | ||||||||||
Diluted weighted average common shares | 21,924 | 22,835 | 24,276 | ||||||||||
Antidilutive stock awards | — | 32 | 10 | ||||||||||
STOCKHOLDERS_EQUITY_STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Stockholders' Equity Attributable to Parent [Abstract] | ||||||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||
Share repurchases related to: | ||||||||||||||||
2011 Share buyback program | — | — | — | — | 377 | 19,236 | ||||||||||
2012 $50 Million Share buyback program | — | — | — | — | 1,001 | 50,000 | ||||||||||
2012 Share buyback program | 282 | 14,671 | 1,296 | 65,691 | 420 | 19,638 | ||||||||||
2014 Share buyback program (1) | 1,189 | 60,209 | — | — | — | — | ||||||||||
Withholding taxes | 22 | 1,249 | 2 | 139 | 2 | 146 | ||||||||||
Shares acquired and held in treasury | 2 | 107 | 9 | 456 | 10 | 521 | ||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Schedule of stock-based compensation expense | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
January 31, | February 1, | February 2, | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||
Deferred Awards | $ | 10,529 | $ | 12,873 | $ | 11,109 | ||||||||||||||||
Performance Awards | 7,254 | 8,337 | 3,144 | |||||||||||||||||||
Total stock-based compensation expense (1) | $ | 17,783 | $ | 21,210 | $ | 14,253 | ||||||||||||||||
_ | ||||||||||||||||||||||
Schedule of changes in unvested deferred awards | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | |||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Unvested Deferred Awards at beginning of year | 691 | $ | 49.27 | 560 | $ | 49.53 | 406 | $ | 47.96 | |||||||||||||
Granted | 273 | 48.5 | 395 | 48.93 | 518 | 49.06 | ||||||||||||||||
Vested (1) | (229 | ) | 48.97 | (205 | ) | 49.46 | (198 | ) | 45.33 | |||||||||||||
Forfeited | (143 | ) | 49.31 | (59 | ) | 48.82 | (166 | ) | 49.22 | |||||||||||||
Unvested Deferred Awards at end of year | 592 | $ | 49.02 | 691 | $ | 49.27 | 560 | $ | 49.53 | |||||||||||||
Schedule of unvested performance awards | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||
Performance | Average | Performance | Average | Performance | Average | |||||||||||||||||
Shares (1) | Grant Date | Shares (1) | Grant Date | Shares (1) | Grant Date | |||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Unvested Performance Awards at beginning of year | 267 | $ | 47.67 | 172 | $ | 48.59 | 6 | $ | 46.08 | |||||||||||||
Granted | 245 | 50.91 | 204 | 47.89 | 230 | 48.51 | ||||||||||||||||
Vested shares | (107 | ) | 46.34 | (95 | ) | 49.84 | (2 | ) | 45.79 | |||||||||||||
Net shares in excess of (less than) target | — | — | — | — | (13 | ) | 51.4 | |||||||||||||||
Forfeited | (60 | ) | 48.87 | (14 | ) | 47.55 | (49 | ) | 47.37 | |||||||||||||
Unvested Performance Awards at end of year | 345 | $ | 50.18 | 267 | $ | 47.67 | 172 | $ | 48.59 | |||||||||||||
Schedule of stock option activity | ||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||
Options | Average | Options | Average | Options | Average | |||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Options outstanding at beginning of year | 34 | $ | 28.77 | 84 | $ | 30.08 | 154 | $ | 30.98 | |||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||
Exercised (1) | (2 | ) | 24.54 | (49 | ) | 31.06 | (68 | ) | 32.03 | |||||||||||||
Forfeited | (2 | ) | 29.54 | (1 | ) | 27.11 | (2 | ) | 12.07 | |||||||||||||
Options outstanding at end of year (2) | 30 | $ | 29.05 | 34 | $ | 28.77 | 84 | $ | 30.08 | |||||||||||||
Options exercisable at end of year (2) | 30 | $ | 29.05 | 34 | $ | 28.77 | 84 | $ | 30.08 | |||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ||||||||||||||||||||||
Options Outstanding and Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | |||||||||||||||||||
$22.02 | $31.63 | 30 | 29.05 | 3.3 | ||||||||||||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property and equipment | ||||||||||
Asset | 31-Jan-15 | 1-Feb-14 | ||||||||
Life | ||||||||||
Property and equipment: | ||||||||||
Land and land improvements | — | $ | 3,403 | $ | 3,403 | |||||
Building and improvements | 20-25 yrs | 35,548 | 35,548 | |||||||
Material handling equipment | 10-15 yrs | 48,479 | 48,345 | |||||||
Leasehold improvements | 3-15 yrs | 339,474 | 350,451 | |||||||
Store fixtures and equipment | 3-10 yrs | 231,797 | 234,151 | |||||||
Capitalized software | 3-10 yrs | 120,054 | 63,874 | |||||||
Construction in progress | — | 24,644 | 43,213 | |||||||
803,399 | 778,985 | |||||||||
Less accumulated depreciation and amortization | (493,098 | ) | (466,836 | ) | ||||||
Property and equipment, net | $ | 310,301 | $ | 312,149 | ||||||
CREDIT_FACILITY_Tables
CREDIT FACILITY (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Components of credit facility | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
Credit facility maximum | $ | 200 | $ | 150 | ||||
Borrowing base | 183.2 | 150 | ||||||
Outstanding borrowings | — | — | ||||||
Letters of credit outstanding—merchandise | — | 1.2 | ||||||
Letters of credit outstanding—standby | 9.1 | 9.9 | ||||||
Utilization of credit facility at end of period | 9.1 | 11.1 | ||||||
Availability (1) | $ | 174.1 | $ | 138.9 | ||||
Interest rate at end of period | 3.8 | % | 3.8 | % | ||||
Fiscal | Fiscal | |||||||
2014 | 2013 | |||||||
Average end of day loan balance during the period | $ | 9.4 | $ | — | ||||
Highest end of day loan balance during the period | 40.9 | 10.4 | ||||||
Average interest rate | 3.2 | % | 3.8 | % | ||||
____________________________________________ | ||||||||
-1 | The sublimit availability for letters of credit was $40.9 million and $113.9 million at January 31, 2015 and February 1, 2014, respectively. |
INTEREST_INCOME_EXPENSE_NET_Ta
INTEREST INCOME (EXPENSE), NET (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Components of interest income (expense) | The following table presents the components of the Company’s interest expense, net (in thousands): | |||||||||||
Fiscal Year Ended | ||||||||||||
31-Jan-15 | February 1, | February 2, | ||||||||||
2014 | 2013 | |||||||||||
Interest income | $ | 1,120 | $ | 1,123 | $ | 988 | ||||||
Less: | ||||||||||||
Interest expense – revolver | 313 | — | — | |||||||||
Interest expense – credit facilities | 92 | 120 | 146 | |||||||||
Unused line fee | 447 | 305 | 422 | |||||||||
Amortization of deferred financing fees | 352 | 364 | 364 | |||||||||
Other interest and fees | 84 | 69 | 76 | |||||||||
Total interest expense | 1,288 | 858 | 1,008 | |||||||||
Interest expense (income), net | $ | (168 | ) | $ | 265 | $ | (20 | ) | ||||
PREPAID_EXPENSES_AND_OTHER_CUR1
PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets are comprised of the following (in thousands): | ||||||||
31-Jan-15 | 1-Feb-14 | ||||||||
Prepaid property expense | $ | 20,781 | $ | 20,933 | |||||
Prepaid income taxes | 10,289 | 3,930 | |||||||
Prepaid maintenance contracts | 3,664 | 3,124 | |||||||
Prepaid insurance | 2,393 | 2,582 | |||||||
Other | 2,222 | 3,013 | |||||||
Prepaid expenses and other current assets | $ | 39,349 | $ | 33,582 | |||||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
ACCRUED [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | |||||||||
31-Jan-15 | 1-Feb-14 | ||||||||
Accrued salaries and benefits | $ | 33,633 | $ | 27,597 | |||||
Customer liabilities | 32,794 | 31,247 | |||||||
Accrued freight | 6,622 | 5,267 | |||||||
Sales taxes and other taxes payable | 6,369 | 6,689 | |||||||
Accrued marketing | 5,794 | 5,075 | |||||||
Accrued store expenses | 4,573 | 8,410 | |||||||
Accrued insurance | 3,759 | 4,676 | |||||||
Accrued real estate expenses | 3,717 | 7,172 | |||||||
Accrued construction-in-progress | 3,631 | 8,277 | |||||||
Accrued professional fees | 2,633 | 2,369 | |||||||
Accrued short-term restructuring costs | 798 | 941 | |||||||
Other | 14,401 | 11,938 | |||||||
Accrued expenses and other current liabilities | $ | 118,724 | $ | 119,658 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES Sublease (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||
Schedule of Rent Expense [Table Text Block] | ||||||||||
Fiscal Year Ended | ||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | ||||||||
2015 | ||||||||||
Minimum rentals | 164,510 | 168,112 | 166,022 | |||||||
Additional rent based upon sales | 797 | 943 | 1,270 | |||||||
Sublease income | (2,967 | ) | (1,138 | ) | (369 | ) | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ||||||||||
Minimum Operating Lease Payments | ||||||||||
2015 | $ | 156,208 | ||||||||
2016 | 143,318 | |||||||||
2017 | 126,449 | |||||||||
2018 | 108,901 | |||||||||
2019 | 96,534 | |||||||||
Thereafter | 245,981 | |||||||||
Total minimum lease payments | $ | 877,391 | ||||||||
INCOME_TAXES_Taxes_by_Country_
INCOME TAXES Taxes by Country (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
U.S. | $ | 47,888 | $ | 36,487 | $ | 36,948 | |||||||
Foreign | 31,987 | 40,061 | 52,747 | ||||||||||
Total | $ | 79,875 | $ | 76,548 | $ | 89,695 | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Current - | |||||||||||||
Federal | $ | 8,212 | $ | 13,240 | $ | 7,575 | |||||||
State | 3,691 | 4,371 | 5,230 | ||||||||||
Foreign | 5,457 | 9,463 | 11,674 | ||||||||||
Total current | 17,360 | 27,074 | 24,479 | ||||||||||
Deferred - | |||||||||||||
Federal | 5,260 | (1,513 | ) | 3,045 | |||||||||
State | 1,426 | (731 | ) | (762 | ) | ||||||||
Foreign | (1,059 | ) | (1,308 | ) | (310 | ) | |||||||
Total deferred | 5,627 | (3,552 | ) | 1,973 | |||||||||
Tax provision as shown on the consolidated statements of operations | $ | 22,987 | $ | 23,522 | $ | 26,452 | |||||||
Effective tax rate | 28.8 | % | 30.7 | % | 29.5 | % | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 31, | 1-Feb-14 | 2-Feb-13 | |||||||||||
2015 | |||||||||||||
Calculated income tax provision at federal statutory rate | $ | 27,956 | $ | 26,792 | $ | 31,393 | |||||||
State income taxes, net of federal benefit | 3,326 | 2,366 | 2,904 | ||||||||||
Foreign tax rate differential (1) | (8,849 | ) | (7,224 | ) | (9,044 | ) | |||||||
Nondeductible expenses | 1,685 | 1,792 | 1,611 | ||||||||||
Unrecognized tax benefit | 807 | (1,347 | ) | (743 | ) | ||||||||
Change in valuation allowance | (1,472 | ) | 447 | 1,395 | |||||||||
Other | (466 | ) | 696 | (1,064 | ) | ||||||||
Total tax provision | $ | 22,987 | $ | 23,522 | $ | 26,452 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | |||||||||||||
January 31, | 1-Feb-14 | ||||||||||||
2015 | |||||||||||||
Current – | |||||||||||||
Assets | |||||||||||||
Inventory | 4,128 | 1,067 | |||||||||||
Reserves | 15,169 | 13,256 | |||||||||||
Total current assets | 19,297 | 14,323 | |||||||||||
Liabilities-prepaid expenses | (4,217 | ) | (3,464 | ) | |||||||||
Total current, net | 15,080 | 10,859 | |||||||||||
Noncurrent – | |||||||||||||
Property and equipment | 7,654 | 18,446 | |||||||||||
Deferred rent | 14,830 | 14,325 | |||||||||||
Equity compensation | 7,101 | 6,792 | |||||||||||
Reserves and other | 5,995 | 6,243 | |||||||||||
Net operating loss carryover and other tax credits | 1,930 | 1,842 | |||||||||||
Capital loss carryover | — | 1,560 | |||||||||||
Total noncurrent, gross | 37,510 | 49,208 | |||||||||||
Valuation allowance | (1,930 | ) | (3,402 | ) | |||||||||
Net noncurrent | 35,580 | 45,806 | |||||||||||
Total deferred tax asset, net | $ | 50,660 | $ | 56,665 | |||||||||
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | |||||||||||||
January 31, | 1-Feb-14 | ||||||||||||
2015 | |||||||||||||
Beginning Balance | $ | 4,412 | $ | 5,919 | |||||||||
Additions for current year tax positions | 833 | 490 | |||||||||||
Additions for prior year tax positions | 1,070 | 349 | |||||||||||
Reductions for prior year tax positions | (156 | ) | (54 | ) | |||||||||
Settlements | (43 | ) | (851 | ) | |||||||||
Reductions due to a lapse of the applicable statute of limitations | (637 | ) | (1,441 | ) | |||||||||
$ | 5,479 | $ | 4,412 | ||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of segment level financial information | ||||||||||||
Fiscal Year Ended | ||||||||||||
January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | ||||||||||
Net sales: | ||||||||||||
The Children’s Place U.S. | $ | 1,528,762 | $ | 1,528,276 | $ | 1,557,549 | ||||||
The Children’s Place International (1) | 232,562 | 237,513 | 251,937 | |||||||||
Total net sales | $ | 1,761,324 | $ | 1,765,789 | $ | 1,809,486 | ||||||
Gross profit: | ||||||||||||
The Children’s Place U.S. | $ | 535,226 | $ | 558,156 | $ | 584,081 | ||||||
The Children’s Place International | 87,074 | 97,365 | 107,359 | |||||||||
Total gross profit | $ | 622,300 | $ | 655,521 | $ | 691,440 | ||||||
Gross Margin: | ||||||||||||
The Children’s Place U.S. | 35 | % | 36.5 | % | 37.5 | % | ||||||
The Children’s Place International | 37.4 | % | 41 | % | 42.6 | % | ||||||
Total gross margin | 35.3 | % | 37.1 | % | 38.2 | % | ||||||
Operating income: | ||||||||||||
The Children’s Place U.S. (2) | $ | 63,586 | $ | 60,267 | $ | 68,346 | ||||||
The Children’s Place International (3) | 16,457 | 16,016 | 21,369 | |||||||||
Total operating income | $ | 80,043 | $ | 76,283 | $ | 89,715 | ||||||
Operating income as a percent of net sales: | ||||||||||||
The Children’s Place U.S. | 4.2 | % | 3.9 | % | 4.4 | % | ||||||
The Children’s Place International | 7.1 | % | 6.7 | % | 8.5 | % | ||||||
Total operating income | 4.5 | % | 4.3 | % | 5 | % | ||||||
Depreciation and amortization: | ||||||||||||
The Children’s Place U.S. | $ | 52,565 | $ | 55,595 | $ | 65,066 | ||||||
The Children’s Place International | 7,929 | 9,263 | 12,369 | |||||||||
Total depreciation and amortization | $ | 60,494 | $ | 64,858 | $ | 77,435 | ||||||
Capital expenditures: | ||||||||||||
The Children’s Place U.S. | $ | 68,847 | $ | 64,486 | $ | 75,945 | ||||||
The Children’s Place International | 3,365 | 8,120 | 14,237 | |||||||||
Total capital expenditures | $ | 72,212 | $ | 72,606 | $ | 90,182 | ||||||
13 | SEGMENT INFORMATION (Continued) | |||||||||||
-1 | Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. | |||||||||||
-2 | Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $(0.1) million and $(0.9) million for Fiscal 2014 and Fiscal 2013, respectively. Also includes a $10.5 million impairment charge for Fiscal 2014 and a $25.4 million impairment charge for Fiscal 2013. Also includes additional costs incurred related to corporate severance and reorganizations of approximately $7.1 million and $4.2 million for Fiscal 2014 and Fiscal 2013, respectively. | |||||||||||
-3 | Includes a $0.6 million and $4.2 million impairment charge for Fiscal 2014 and Fiscal 2013, respectively. | |||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ||||||||||||
January 31, | February 1, 2014 | |||||||||||
2015 | ||||||||||||
Total assets: | ||||||||||||
The Children’s Place U.S. | $ | 805,462 | $ | 824,893 | ||||||||
The Children’s Place International | 153,156 | 165,737 | ||||||||||
Total assets | $ | 958,618 | $ | 990,630 | ||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | The Company's long-lived assets are located in the following countries: | |||||||||||
January 31, | 1-Feb-14 | |||||||||||
2015 | ||||||||||||
Long-lived assets (1): | ||||||||||||
United States | $ | 289,820 | $ | 283,059 | ||||||||
Canada | 22,697 | 31,046 | ||||||||||
Asia | 1,242 | 1,399 | ||||||||||
Total long-lived assets | $ | 313,759 | $ | 315,504 | ||||||||
QUARTERLY_FINANCIAL_DATA_Quart
QUARTERLY FINANCIAL DATA Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Jan. 31, 2015 | Feb. 01, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ||||||||||||||||||||||||||||||||||
Fiscal Year Ended January 31, 2015 | Fiscal Year Ended February 1, 2014 | |||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter (1) | Quarter | Quarter | Quarter | Quarter (1) | |||||||||||||||||||||||||||
Net sales | $ | 410,149 | $ | 384,628 | $ | 487,304 | $ | 479,243 | Net sales | $ | 423,164 | $ | 382,448 | $ | 492,680 | $ | 467,497 | |||||||||||||||||
Gross profit | 148,261 | 119,118 | 190,111 | 164,810 | Gross profit | 163,268 | 126,182 | 201,761 | 164,310 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 113,720 | 117,111 | 116,120 | 123,735 | Selling, general and administrative expenses | 119,008 | 124,408 | 123,521 | 118,716 | |||||||||||||||||||||||||
Asset impairment charges | — | 3,045 | 3,306 | 4,794 | Asset impairment charges | — | 21,766 | — | 7,867 | |||||||||||||||||||||||||
Other costs (income) | 231 | (98 | ) | (286 | ) | 85 | Other costs (income) | (1,023 | ) | 61 | 200 | (144 | ) | |||||||||||||||||||||
Depreciation and amortization | 14,227 | 15,557 | 15,168 | 15,542 | Depreciation and amortization | 16,824 | 15,593 | 16,473 | 15,968 | |||||||||||||||||||||||||
Operating income (loss) | 20,083 | (16,497 | ) | 55,803 | 20,654 | Operating income (loss) | 28,459 | (35,646 | ) | 61,567 | 21,903 | |||||||||||||||||||||||
Income (loss) before income taxes | 20,102 | (16,557 | ) | 55,721 | 20,609 | Income (loss) before income taxes | 28,519 | (35,646 | ) | 61,649 | 22,026 | |||||||||||||||||||||||
Provision (benefit) for income taxes | 6,506 | (5,870 | ) | 18,779 | 3,572 | Provision (benefit) for income taxes | 9,247 | (12,010 | ) | 19,910 | 6,375 | |||||||||||||||||||||||
Net income (loss) | 13,596 | (10,687 | ) | 36,942 | 17,037 | Net income (loss) | 19,272 | (23,636 | ) | 41,739 | 15,651 | |||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.61 | $ | (0.49 | ) | $ | 1.7 | $ | 0.79 | Diluted earnings (loss) per share | $ | 0.83 | $ | (1.05 | ) | $ | 1.84 | $ | 0.69 | |||||||||||||||
Diluted weighted average common shares outstanding | 22,419 | 21,837 | 21,756 | 21,512 | Diluted weighted average common shares outstanding | 23,289 | 22,514 | 22,628 | 22,652 | |||||||||||||||||||||||||
____________________________________________ | ||||||||||||||||||||||||||||||||||
Cash dividends declared and paid per common share | $ | 0.1325 | $ | 0.1325 | $ | 0.1325 | $ | 0.1325 | ||||||||||||||||||||||||||
____________________________________________ | 14 | QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued) | ||||||||||||||||||||||||||||||||
(1) Significant items impacting the fourth quarter of Fiscal 2014 include approximately $4.8 million of asset impairment charges and $3.2 million of additional costs related to corporate severance and reorganizations. | ||||||||||||||||||||||||||||||||||
-1 | Significant items impacting the fourth quarter of Fiscal 2013 include approximately $7.9 million of asset impairment charges and $2.0 million of additional costs related to store dispositions. |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Share data in Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Stock awards | |||||||||||||
Property, Plant, and Equipment, Fair Value Disclosure | $15,900,000 | $44,400,000 | $15,900,000 | $44,400,000 | $3,100,000 | ||||||||
Asset impairment charges | 4,794,000 | [1] | 3,306,000 | 3,045,000 | 0 | 7,867,000 | [2] | 0 | 21,766,000 | 0 | 11,145,000 | 29,633,000 | 2,284,000 |
Dilutive effect of stock awards | 243 | 298 | 184 | ||||||||||
Antidilutive stock awards | 0 | 32 | 10 | ||||||||||
Deferred Revenue, Current | 300,000 | 1,800,000 | 300,000 | 1,800,000 | |||||||||
Self Insurance Reserve, Current | 6,500,000 | 7,100,000 | 6,500,000 | 7,100,000 | |||||||||
Business Exit Costs | 85,000 | -286,000 | -98,000 | 231,000 | -144,000 | 200,000 | 61,000 | -1,023,000 | -68,000 | -906,000 | 11,088,000 | ||
Amortization of Financing Costs | -2,700,000 | -2,400,000 | -2,700,000 | -2,400,000 | |||||||||
Deferred Finance Costs, Net | 1,200,000 | 1,300,000 | 1,200,000 | 1,300,000 | |||||||||
Pre-Opening Costs | 1,400,000 | 3,300,000 | 4,000,000 | ||||||||||
Advertising Expense | 30,900,000 | 33,800,000 | 37,100,000 | ||||||||||
Foreign Currency Transaction Gain (Loss), before Tax | -500,000 | 500,000 | 100,000 | ||||||||||
Number of Stores | 1,097,000 | 1,097,000 | |||||||||||
Deferred Compensation Plan | |||||||||||||
Maximum percentage of base salary elected to be deferred (as a percent) | 80.00% | ||||||||||||
Maximum percentage of bonus elected to be deferred (as a percent) | 100.00% | ||||||||||||
Maximum period over which annual installments of deferred payments are made (in years) | 15 years 0 months 12 days | ||||||||||||
Deferred compensation plan liability | 500,000 | 300,000 | 500,000 | 300,000 | |||||||||
Cash Surrender Value of Life Insurance | 300,000 | 300,000 | 300,000 | 300,000 | |||||||||
Deferred compensation - Company stock | -1,682,000 | -1,575,000 | -1,682,000 | -1,575,000 | |||||||||
Self Insurance Reserve, Noncurrent | 6,500,000 | 5,500,000 | 6,500,000 | 5,500,000 | |||||||||
Sales Returns and Allowances, Goods | 1,900,000 | 1,800,000 | |||||||||||
Revenue Recognition, Gift Cards, Breakage | 1,600,000 | 1,500,000 | 1,500,000 | ||||||||||
loyaltypoints [Member] | |||||||||||||
Stock awards | |||||||||||||
Deferred Revenue, Current | 9,000,000 | 5,400,000 | 9,000,000 | 5,400,000 | |||||||||
deferredrevfranchisees [Member] | |||||||||||||
Stock awards | |||||||||||||
Deferred Revenue, Current | $800,000 | $900,000 | $800,000 | $900,000 | |||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmNiNTA2OTg0ZGM1NTQzMDA4YjAzNDRiNzc4YzY2ZjI2fFRleHRTZWxlY3Rpb246MzdDRTdDN0ZEQTNEMjBEM0EzMTM1OUU2OEZFQ0JDNjgM} | ||||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmNiNTA2OTg0ZGM1NTQzMDA4YjAzNDRiNzc4YzY2ZjI2fFRleHRTZWxlY3Rpb246NjE1QjcyNjE1Mjk1OTc3RTlFMkQ1OUU2OEZFQzAwNjQM} |
BASIS_OF_PRESENTATION_Details_
BASIS OF PRESENTATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Property, Plant, and Equipment, Fair Value Disclosure | $15,900,000 | $44,400,000 | $15,900,000 | $44,400,000 | $3,100,000 | ||||||
Accruedexitcosts | 1,508,000 | 2,679,000 | 1,508,000 | 2,679,000 | 8,376,000 | ||||||
Deferred Revenue, Current | 300,000 | 1,800,000 | 300,000 | 1,800,000 | |||||||
Business Exit Costs | 85,000 | -286,000 | -98,000 | 231,000 | -144,000 | 200,000 | 61,000 | -1,023,000 | -68,000 | -906,000 | 11,088,000 |
Paymentsanadjustments | -1,103,000 | -4,791,000 | |||||||||
Number of Stores | 1,097,000 | 1,097,000 | |||||||||
Accumulated Amortization, Deferred Finance Costs | -2,700,000 | -2,400,000 | -2,700,000 | -2,400,000 | |||||||
Document Period End Date | 31-Jan-15 | ||||||||||
loyaltypoints [Member] | |||||||||||
Deferred Revenue, Current | 9,000,000 | 5,400,000 | 9,000,000 | 5,400,000 | |||||||
deferredrevfranchisees [Member] | |||||||||||
Deferred Revenue, Current | 800,000 | 900,000 | 800,000 | 900,000 | |||||||
Leasetermcosts [Domain] | |||||||||||
Accruedexitcosts | 1,508,000 | 2,679,000 | 1,508,000 | 2,679,000 | 8,376,000 | ||||||
Business Exit Costs | -222,000 | -1,413,000 | |||||||||
Paymentsanadjustments | -949,000 | -4,284,000 | |||||||||
Otherassociatedexitcosts [Domain] | |||||||||||
Business Exit Costs | 154,000 | 507,000 | |||||||||
Otherassociatedcosts [Domain] | |||||||||||
Accruedexitcosts | 0 | 0 | 0 | 0 | 0 | ||||||
Paymentsanadjustments | -154,000 | -507,000 | |||||||||
Other Current Liabilities [Member] | |||||||||||
Accruedexitcosts | 800,000 | 800,000 | |||||||||
Other Noncurrent Liabilities [Member] | |||||||||||
Accruedexitcosts | $700,000 | $700,000 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | 2 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 24, 2015 | |
STOCKHOLDERS' EQUITY | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $200,000,000 | $150,000,000 | ||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | -1,493,000 | -1,298,000 | -1,800,000 | |
Number of shares exchanged in payment of withholding taxes (in shares) | 21,788 | 2,089 | 2,200 | |
Share-based compensation withholding tax payments | 1,249,000 | 139,000 | 146,000 | |
Treasury Stock, Shares, Acquired | 2,000 | 9,000 | 10,000 | |
Treasury Stock, Value, Acquired, Cost Method | 107,000 | 456,000 | 521,000 | |
Number of shares deferred into deferred compensation plan (in shares) | 2,000 | 9,000 | 10,000 | |
Shares deferred into deferred compensation plan, aggregate cost | 107,000 | 456,000 | 521,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 39,800,000 | |||
Dividends | 12,000,000 | |||
Dividends, Common Stock, Cash | 11,500,000 | |||
Dividendsunvestedshares | 500,000 | |||
2011 Share Repurchase Program | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | 0 | 0 | -19,236,000 | |
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 0 | 0 | 377,000 | |
2012 $50 Share Repurchase Program [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | -50,000,000 | |||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 1,001,000 | |||
2012 $100 Share Repurchase Program [Member] [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | -14,671,000 | -65,691,000 | -19,638,000 | |
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 282,000 | 1,296,000 | 420,000 | |
Retained Earnings [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | -60,380,000 | -53,145,000 | -73,020,000 | |
Shares repurchases related to: | ||||
Dividendsunvestedshares | 506,000 | |||
2014 Share Repurchase Program [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | ($73,500,000) | ($13,300,000) | ||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 200,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | ||||
Stock-based compensation expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $100,000 | $900,000 | $1,300,000 | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 21,788 | 2,089 | 2,200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 904,283,000 | ||||||
Total stock- based compensation expense | 17,783,000 | [1] | 21,210,000 | [1] | 14,253,000 | [1] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 900,000 | 800,000 | 1,600,000 | ||||
Tax benefit related to stock-based compensation | 7,000,000 | 8,500,000 | 5,600,000 | ||||
Restricted stock | |||||||
Stock-based compensation expense | |||||||
Total stock- based compensation expense | 10,529,000 | 12,873,000 | 11,109,000 | ||||
Performance awards | |||||||
Stock-based compensation expense | |||||||
Total stock- based compensation expense | 7,254,000 | 8,337,000 | 3,144,000 | ||||
Stock Option Plans | |||||||
Stock-based compensation expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | -68,000 | [2] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 154,000 | ||||||
Cost of Sales [Member] | |||||||
Stock-based compensation expense | |||||||
Total stock- based compensation expense | $1,600,000 | $2,800,000 | $1,700,000 | ||||
[1] | A portion of stock-based compensation is included in cost of sales. Approximately $1.6 million, $2.8 million and $1.7 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expense. | ||||||
[2] | he aggregate intrinsic value of options exercised was approximately $0.1 million, $0.9 million and $1.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | ||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2009 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | $17,783,000 | [1] | $21,210,000 | [1] | $14,253,000 | [1] | |
Deferred and Performance Awards | |||||||
Forfeited (in shares) | 166 | ||||||
Weighted Average Grant Date Fair Value | |||||||
Net shares in excess (less) than target | 0 | ||||||
Unrecognized costs and period of recognition | |||||||
Options outstanding at the beginning of the period (in shares) | 34 | [2] | 84 | [2] | |||
Exercised (in shares) | -2 | -49 | -68 | ||||
Options outstanding at the end of the period (in shares) | 30 | [2] | 34 | [2] | 84 | [2] | |
Weighted Average Exercise Price | |||||||
Options outstanding at the beginning of the period (in dollars per share) | $28.77 | $30.08 | |||||
Options outstanding at the end of the period (in dollars per share) | $28.77 | $30.08 | |||||
Weighted Average Remaining Contractual Life (in years) | |||||||
Options outstanding at the beginning of the period (in dollars per share) | $28.77 | $30.08 | |||||
Aggregate Intrinsic Value | |||||||
Options outstanding at the beginning of the period (in dollars) | 800,000 | 1,600,000 | |||||
Exercised (in dollars) | 100,000 | 900,000 | 1,300,000 | ||||
Options outstanding at the end of the period (in dollars) | 900,000 | 800,000 | 1,600,000 | ||||
Weighted avg fair value, shares in excess (less) than target | $0 | ||||||
Stock Option Plans | |||||||
Unrecognized costs and period of recognition | |||||||
Options outstanding at the beginning of the period (in shares) | 34 | 84 | |||||
Exercised (in shares) | -2 | [3] | -49 | [3] | |||
Forfeited (in shares) | -2 | -1 | |||||
Options outstanding at the end of the period (in shares) | 34 | 84 | |||||
Granted (in shares) | 0 | 0 | 0 | ||||
Options exercisable (in shares) | 34 | [4] | 84 | [4] | |||
Weighted Average Exercise Price | |||||||
Options outstanding at the beginning of the period (in dollars per share) | $28.77 | $30.08 | $30.98 | ||||
Exercised (in dollars per share) | $24.54 | $31.06 | $32.03 | ||||
Forfeited (in dollars per share) | $29.54 | $27.11 | $12.07 | ||||
Options outstanding at the end of the period (in dollars per share) | $29.05 | $28.77 | $30.08 | ||||
Granted (in dollars per share) | $0 | $0 | $0 | ||||
Weighted Average Remaining Contractual Life (in years) | |||||||
Options outstanding at the beginning of the period (in dollars per share) | $28.77 | $30.08 | $30.98 | ||||
Aggregate Intrinsic Value | |||||||
Options outstanding at the beginning of the period (in dollars) | 154,000 | ||||||
Exercised (in dollars) | -68,000 | [3] | |||||
Forfeited (in dollars) | -2,000 | ||||||
Deferred and Restricted Stock (Deferred Awards) Member | |||||||
Deferred and Performance Awards | |||||||
Unvested awards at the beginning of the period (in shares) | 691 | 560 | 406 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 273 | 395 | 518 | ||||
Vested (in shares) | -229 | [5] | 205 | [5] | 198 | [5] | |
Forfeited (in shares) | -143 | 59 | |||||
Unvested awards at the end of the period (in shares) | 592 | 691 | 406 | ||||
Weighted Average Grant Date Fair Value | |||||||
Unvested awards at the beginning of the period (in dollars per share) | $49.27 | $49.53 | $47.96 | ||||
Granted (in shares) | $48.50 | $48.93 | $49.06 | ||||
Vested (in dollars per share) | $48.97 | $49.46 | $45.33 | ||||
Forfeited (in dollars per share) | $49.31 | $48.82 | $49.22 | ||||
Unvested awards at the end of the period (in dollars per share) | $49.02 | $49.27 | $47.96 | ||||
Unrecognized costs and period of recognition | |||||||
Unrecognized stock-based compensation expense (in dollars) | 16,100,000 | ||||||
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | 2 years 1 month 12 days | ||||||
Restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | 10,529,000 | 12,873,000 | 11,109,000 | ||||
Aggregate Intrinsic Value | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 11,400,000 | 9,800,000 | 10,000,000 | ||||
Performance awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | 7,254,000 | 8,337,000 | 3,144,000 | ||||
Deferred and Performance Awards | |||||||
Unvested awards at the beginning of the period (in shares) | 267 | 172 | 6 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 245 | 204 | 230 | ||||
Vested (in shares) | -107 | 95 | 2 | ||||
Forfeited (in shares) | -60 | 14 | 49 | ||||
Unvested awards at the end of the period (in shares) | 345 | 267 | 6 | ||||
Weighted Average Grant Date Fair Value | |||||||
Unvested awards at the beginning of the period (in dollars per share) | $47.67 | $48.59 | $46.08 | ||||
Granted (in shares) | $50.91 | $47.89 | $48.51 | ||||
Vested (in dollars per share) | $46.34 | $49.84 | $45.79 | ||||
Forfeited (in dollars per share) | $48.87 | $47.55 | $47.37 | ||||
Unvested awards at the end of the period (in dollars per share) | $50.18 | $47.67 | $46.08 | ||||
Net shares in excess (less) than target | 0 | -13 | |||||
Unrecognized costs and period of recognition | |||||||
Unrecognized stock-based compensation expense (in dollars) | 6,100,000 | ||||||
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | 2 years 2 months 12 days | ||||||
Aggregate Intrinsic Value | |||||||
Weighted avg fair value, shares in excess (less) than target | $0 | $51.40 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 5,500,000 | 5,000,000 | 100,000 | ||||
Exercise Price Range Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $22.02 | ||||||
Unrecognized costs and period of recognition | |||||||
Options exercisable (in shares) | 30 | ||||||
Weighted Average Exercise Price | |||||||
Options exercisable (in dollars per share) | $29.05 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 3 months 12 days | ||||||
Aggregate Intrinsic Value | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $31.63 | ||||||
Cost of Sales [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | $1,600,000 | $2,800,000 | $1,700,000 | ||||
[1] | A portion of stock-based compensation is included in cost of sales. Approximately $1.6 million, $2.8 million and $1.7 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expense. | ||||||
[2] | he aggregate intrinsic value of options outstanding and exercisable at the end of Fiscal 2014, Fiscal 2013 and Fiscal 2012 was approximately $0.9 million, $0.8 million and $1.6 million, respectively. | ||||||
[3] | he aggregate intrinsic value of options exercised was approximately $0.1 million, $0.9 million and $1.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmNiNTA2OTg0ZGM1NTQzMDA4YjAzNDRiNzc4YzY2ZjI2fFRleHRTZWxlY3Rpb246ODMzMTE1MUNDRTBDOEY1QjZGRTU1OUU2OEZFQkE2NzgM} | ||||||
[5] | n Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company withheld shares of 21,788, 2,089 and 2,200, respectively, to satisfy minimum withholding tax requirements. These shares were immediately retired. |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Property, Plant and Equipment [Line Items] | |||||||||||||
numberofstorestestedforimpairment | 1,063 | 1,066 | 1,063 | 1,066 | 1,045 | ||||||||
net book value | $138,900,000 | $156,900,000 | $138,900,000 | $156,900,000 | $175,300,000 | ||||||||
Less accumulated depreciation and amortization | -493,098,000 | -466,836,000 | -493,098,000 | -466,836,000 | |||||||||
Property and equipment, net | 310,301,000 | 312,149,000 | 310,301,000 | 312,149,000 | |||||||||
Asset impairment charges | 4,794,000 | [1] | 3,306,000 | 3,045,000 | 0 | 7,867,000 | [2] | 0 | 21,766,000 | 0 | 11,145,000 | 29,633,000 | 2,284,000 |
Number of underperforming stores | 74 | 127 | 6 | ||||||||||
netbookvauepartiallyimpairedstores | 3,600,000 | 3,600,000 | |||||||||||
fullyimpairedstores | 44 | 106 | 44 | 106 | 2 | ||||||||
partiallyimpairedstores | 30 | 21 | 30 | 21 | 4 | ||||||||
Payments for Software | 42,400,000 | 19,500,000 | 12,900,000 | ||||||||||
Payments to Develop Software | 11,600,000 | 8,700,000 | 3,800,000 | ||||||||||
Capitalized Computer Software, Amortization | 11,100,000 | 7,000,000 | 7,400,000 | ||||||||||
Property and equipment, outstanding | 6,600,000 | ||||||||||||
Land and land improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | 3,403,000 | 3,403,000 | 3,403,000 | 3,403,000 | |||||||||
Building and improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 20-25 yrs | ||||||||||||
Property and equipment, gross | 35,548,000 | 35,548,000 | 35,548,000 | 35,548,000 | |||||||||
Material handling equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 10-15 yrs | ||||||||||||
Property and equipment, gross | 48,479,000 | 48,345,000 | 48,479,000 | 48,345,000 | |||||||||
Leasehold improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 3-15 yrs | ||||||||||||
Property and equipment, gross | 339,474,000 | 350,451,000 | 339,474,000 | 350,451,000 | |||||||||
Store fixtures and equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 3-10 yrs | ||||||||||||
Property and equipment, gross | 231,797,000 | 234,151,000 | 231,797,000 | 234,151,000 | |||||||||
Capitalized software | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 3-10 yrs | ||||||||||||
Property and equipment, gross | 120,054,000 | 63,874,000 | 120,054,000 | 63,874,000 | |||||||||
Construction in progress | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | 24,644,000 | 43,213,000 | 24,644,000 | 43,213,000 | |||||||||
storeimpairment [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Asset impairment charges | 20,500,000 | ||||||||||||
ITimpairment [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Asset impairment charges | 9,100,000 | ||||||||||||
sgawritedown [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Asset impairment charges | $1,200,000 | ||||||||||||
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CREDIT_FACILITY_Details
CREDIT FACILITY (Details) (USD $) | 12 Months Ended | ||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Credit facilities | |||||
Interest expense b revolver | $313,000 | $0 | $0 | ||
Sublimit availability | 40,900,000 | 113,900,000 | |||
Borrowing capacity, accordion feature | 25,000,000 | ||||
Deferred financing costs, remaining unamortized balance | 1,200,000 | 1,300,000 | |||
Letter of credit fees | 200,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | 150,000,000 | |||
Line of credit facility, current borrowing capacity | 183,200,000 | 150,000,000 | |||
Outstanding borrowings | 0 | 0 | |||
Utilization of credit facility at end of period | 9,100,000 | 11,100,000 | |||
Availability | 174,100,000 | [1] | 138,900,000 | [1] | |
Interest rate at end of period (as a percent) | 3.80% | [2] | 3.80% | [2] | |
Average loan balance during the period | 9,400,000 | 0 | |||
Highest end of day loan balance during the period | 40,900,000 | 10,400,000 | |||
Average interest rate (as a percent) | 3.20% | 3.80% | |||
Merchandise Letters of Credit | |||||
Credit facilities | |||||
Letters of credit outstanding | 0 | 1,200,000 | |||
Standby Letters of Credit | |||||
Credit facilities | |||||
Letters of credit outstanding | 9,100,000 | 9,900,000 | |||
Credit Agreement | |||||
Credit facilities | |||||
Letters of Credit sublimit | 50,000,000 | ||||
Line of credit facility, unused line fee percentage (as a percent) | 0.25% | ||||
Deferred financing costs gross | 4,000,000 | ||||
Deferred financing costs, remaining unamortized balance | 1,200,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | 150,000,000 | |||
Credit Agreement | Prime rate | |||||
Credit facilities | |||||
Basis spread on variable rate, low end of range (as a percent) | 0.50% | ||||
Basis spread on variable rate, high end of range (as a percent) | 0.75% | ||||
Credit Agreement | LIBOR | |||||
Credit facilities | |||||
Basis spread on variable rate, low end of range (as a percent) | 1.50% | ||||
Basis spread on variable rate, high end of range (as a percent) | 1.75% | ||||
Debt Instrument, Description of Variable Rate Basis | one, two, three or six | ||||
Credit Agreement | Merchandise Letters of Credit | |||||
Credit facilities | |||||
Letters of credit facility fee, low end of range (as a percent) | 0.75% | ||||
Letters of credit facility fee, high end of range (as a percent) | 0.88% | ||||
Credit Agreement | Standby Letters of Credit | |||||
Credit facilities | |||||
Letters of credit facility fee, low end of range (as a percent) | 1.00% | ||||
Letters of credit facility fee, high end of range (as a percent) | 1.25% | ||||
2008 Credit Agreement 2014 Amendment [Member] | |||||
Credit facilities | |||||
Deferred financing costs gross | $0 | ||||
[1] | The sublimit availability for letters of credit was $40.9 million and $113.9 million at January 31, 2015 and February 1, 2014, respectively. | ||||
[2] | . |
INTEREST_INCOME_EXPENSE_NET_De
INTEREST INCOME (EXPENSE), NET (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Components of interest income (expense), net | ||||
Interest income | $1,120 | $1,123 | $988 | |
Less: | ||||
Interest expense b revolver | 313 | 0 | 0 | |
Interest expense - credit facilities | 92 | 120 | 146 | |
Unused line fee | 447 | 305 | 422 | |
Amortization of deferred financing costs | 352 | 364 | 364 | [1] |
Other interest and fees | 84 | 69 | 76 | [1] |
Total interest expense | 1,288 | 858 | 1,008 | |
Interest (expense), net | ($168) | $265 | ($20) | |
[1] | Fiscal Year EndedB January 31, 2015B February 1, 2014B February 2, 2013Interest income$1,120B $1,123B $988 Less: Interest expense b revolver313B bB bInterest expense b credit facilities92B 120B 146Unused line fee447B 305B 422Amortization of deferred financing fees352B 364B 364Other interest and fees84B 69B 76Total interest expense1,288B 858B 1,008Interest expense (income), net$(168)B $265B $(20) |
PREPAID_EXPENSES_AND_OTHER_CUR2
PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Prepaid property expense | $20,781 | $20,933 |
Prepaid income taxes | 10,289 | 3,930 |
Prepaid maintenance contracts | 3,664 | 3,124 |
Prepaid insurance | 2,393 | 2,582 |
Other | 2,222 | 3,013 |
Prepaid expenses and other current assets | $39,349 | $33,582 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued Expenses and Other Current Liabilities (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Expenses [Abstract] | ||
Customer liabilities | $32,794 | $31,247 |
Accrued salaries and benefits | 33,633 | 27,597 |
Sales taxes and other taxes payable | 6,369 | 6,689 |
Accrued store expenses | 4,573 | 8,410 |
Accrued real estate expenses | 3,717 | 7,172 |
Accrued construction-in-progress | 3,631 | 8,277 |
Short Term Exit Costs Accual | 798 | 941 |
Accrued insurance | 3,759 | 4,676 |
Accrued marketing | 5,794 | 5,075 |
Accrued freight | 6,622 | 5,267 |
Accrued professional fees | 2,633 | 2,369 |
Other | 14,401 | 11,938 |
Accrued expenses and other current liabilities | $118,724 | $119,658 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Operating Leased Assets [Line Items] | |||
Minimum rentals | $164,510,000 | $168,112,000 | $166,022,000 |
Additional rent based upon sales | 797,000 | 943,000 | 1,270,000 |
Sublease income | -2,967,000 | -1,138,000 | -369,000 |
2012 | 156,208,000 | ||
2013 | 143,318,000 | ||
2014 | 126,449,000 | ||
2015 | 108,901,000 | ||
2016 | 96,534,000 | ||
Thereafter | 245,981,000 | ||
Total minimum lease payments | 877,391,000 | ||
Severance Benefits Non-change in Control | 6,100,000 | ||
Severance Benefits Change in Control | 23,200,000 | ||
Purchase Commitments Construction [Member] | |||
Operating Leased Assets [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | 9,400,000 | ||
Purchase Commitments Merchandise [Member] | |||
Operating Leased Assets [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | $288,700,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Operating Loss Carryforwards [Line Items] | |||||||||||||
U.S. | $47,888,000 | $36,487,000 | $36,948,000 | ||||||||||
Foreign | 31,987,000 | 40,061,000 | 52,747,000 | ||||||||||
Income (loss) from continuing operations before income taxes | 20,609,000 | [1] | 55,721,000 | -16,557,000 | 20,102,000 | 22,026,000 | [2] | 61,649,000 | -35,646,000 | 28,519,000 | 79,875,000 | 76,548,000 | 89,695,000 |
Federal | 8,212,000 | 13,240,000 | 7,575,000 | ||||||||||
State | 3,691,000 | 4,371,000 | 5,230,000 | ||||||||||
Foreign | 5,457,000 | 9,463,000 | 11,674,000 | ||||||||||
Total current | 17,360,000 | 27,074,000 | 24,479,000 | ||||||||||
Federal | 5,260,000 | -1,513,000 | 3,045,000 | ||||||||||
State | 1,426,000 | -731,000 | -762,000 | ||||||||||
Foreign | -1,059,000 | -1,308,000 | -310,000 | ||||||||||
Total deferred | 5,627,000 | -3,552,000 | 1,973,000 | ||||||||||
Total tax provision | 3,572,000 | [1] | 18,779,000 | -5,870,000 | 6,506,000 | 6,375,000 | [2] | 19,910,000 | -12,010,000 | 9,247,000 | 22,987,000 | 23,522,000 | 26,452,000 |
Effective tax rate from continuing operations (as a percent) | 28.80% | 30.70% | 29.50% | ||||||||||
Deferred Income Taxes, Current b | |||||||||||||
Calculated income tax provision at federal statutory rate | 27,956,000 | 26,792,000 | 31,393,000 | ||||||||||
State income taxes, net of federal benefit | 3,326,000 | 2,366,000 | 2,904,000 | ||||||||||
Foreign tax rate differential | -8,849,000 | -7,224,000 | -9,044,000 | ||||||||||
Nondeductible expenses | 1,685,000 | 1,792,000 | 1,611,000 | ||||||||||
Unrecognized tax expense (benefit) | -807,000 | 1,347,000 | 743,000 | ||||||||||
Foreign tax credits | -1,472,000 | 447,000 | 1,395,000 | ||||||||||
Other | -466,000 | 696,000 | -1,064,000 | ||||||||||
Total tax provision | 3,572,000 | [1] | 18,779,000 | -5,870,000 | 6,506,000 | 6,375,000 | [2] | 19,910,000 | -12,010,000 | 9,247,000 | 22,987,000 | 23,522,000 | 26,452,000 |
Assets | |||||||||||||
Inventory | 4,128,000 | 1,067,000 | 4,128,000 | 1,067,000 | |||||||||
Reserves | 15,169,000 | 13,256,000 | 15,169,000 | 13,256,000 | |||||||||
Total current assets | 19,297,000 | 14,323,000 | 19,297,000 | 14,323,000 | |||||||||
Liabilities-prepaid expenses | -4,217,000 | -3,464,000 | -4,217,000 | -3,464,000 | |||||||||
Total current assets | 15,080,000 | 10,859,000 | 15,080,000 | 10,859,000 | |||||||||
Noncurrent b | |||||||||||||
Property and equipment | 7,654,000 | 18,446,000 | 7,654,000 | 18,446,000 | |||||||||
Deferred rent | 14,830,000 | 14,325,000 | 14,830,000 | 14,325,000 | |||||||||
Equity compensation | 7,101,000 | 6,792,000 | 7,101,000 | 6,792,000 | |||||||||
Reserves and other | 5,995,000 | 6,243,000 | 5,995,000 | 6,243,000 | |||||||||
Net Operating Loss Carryover | 1,930,000 | 1,842,000 | 1,930,000 | 1,842,000 | |||||||||
Capital loss carryover | 0 | 1,560,000 | 0 | 1,560,000 | |||||||||
Total noncurrent, gross | 37,510,000 | 49,208,000 | 37,510,000 | 49,208,000 | |||||||||
Valuation allowance | -1,930,000 | -3,402,000 | -1,930,000 | -3,402,000 | |||||||||
Net noncurrent | 35,580,000 | 45,806,000 | 35,580,000 | 45,806,000 | |||||||||
Total deferred tax asset, net | 50,660,000 | 56,665,000 | 50,660,000 | 56,665,000 | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 4,100,000 | 4,100,000 | |||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 800,000 | 800,000 | |||||||||||
Undistributed Earnings of Foreign Subsidiaries | 231,200,000 | 231,200,000 | |||||||||||
Beginning Balance | 4,412,000 | 4,412,000 | 5,919,000 | ||||||||||
Additions for current year tax positions | 833,000 | 490,000 | |||||||||||
Additions for prior year tax positions | 1,070,000 | 349,000 | |||||||||||
Reductions for prior year tax positions | -156,000 | -54,000 | |||||||||||
Settlements | -43,000 | -851,000 | |||||||||||
Reductions due to a lapse of the applicable statute of limitations | -637,000 | -1,441,000 | |||||||||||
Unrecognized Tax Benefits, Ending Balance | 5,479,000 | 4,412,000 | 5,479,000 | 4,412,000 | |||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 5,300,000 | 5,300,000 | |||||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 3,600,000 | 3,600,000 | |||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,000,000 | 1,400,000 | 1,000,000 | 1,400,000 | |||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $400,000 | $400,000 | $200,000 | ||||||||||
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SAVINGS_AND_INVESTMENT_PLANS_S
SAVINGS AND INVESTMENT PLANS SAVINGS AND INVESTMENT PLANS (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
First Three Percent of Company Match | 3.00% | ||
Fifty Percent of Next Two Percent Company Match | 50.00% | ||
Next Two Percent of Company Match | 2.00% | ||
Highly Compensated 401k Match | 50.00% | ||
Highly Compensated 2.5 Percent Match | 2.50% | ||
Highly Compensated Vest Years | $5 | ||
Defined Benefit Plan, Contributions by Employer | 2,200,000 | 2,200,000 | 2,000,000 |
Deferred Compensation Arrangements Maximum Percentage of Base Salary | 80.00% | ||
Deferred Compensation Arrangements Maximum Percentage of Bonus | 100.00% | ||
Maximum period over which annual installments of deferred payments are made (in years) | 15 years 0 months 12 days | ||
Deferred compensation plan liability | 500,000 | 300,000 | |
Cash Surrender Value of Life Insurance | 300,000 | 300,000 | |
Common Stock Issued, Employee Trust, Deferred | -1,682,000 | -1,575,000 | |
Foreign Plan Contributions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Contributions by Employer | $300,000 | $200,000 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||
Segment information | ||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $4,794,000 | [1] | $3,306,000 | $3,045,000 | $0 | $7,867,000 | [2] | $0 | $21,766,000 | $0 | $11,145,000 | $29,633,000 | $2,284,000 | |||
Percentage of entity-wide sales qualifying purchaser as major customer (as a percent) | 10.00% | |||||||||||||||
Number of Stores | 1,097,000 | 1,097,000 | ||||||||||||||
Net sales: | ||||||||||||||||
Total net sales | 479,243,000 | [1] | 487,304,000 | 384,628,000 | 410,149,000 | 467,497,000 | [2] | 492,680,000 | 382,448,000 | 423,164,000 | 1,761,324,000 | 1,765,789,000 | 1,809,486,000 | |||
Gross Profit: | ||||||||||||||||
Gross Profit | 164,810,000 | [1] | 190,111,000 | 119,118,000 | 148,261,000 | 164,310,000 | [2] | 201,761,000 | 126,182,000 | 163,268,000 | 622,300,000 | 655,521,000 | 691,440,000 | |||
Gross Margin: | ||||||||||||||||
Total Gross Margin (as a percent) | 35.30% | 37.10% | 38.20% | |||||||||||||
Operating income (loss): | ||||||||||||||||
Total operating income (loss) | 20,654,000 | [1] | 55,803,000 | -16,497,000 | 20,083,000 | 21,903,000 | [2] | 61,567,000 | -35,646,000 | 28,459,000 | 80,043,000 | 76,283,000 | 89,715,000 | |||
Operating income (loss) as a percent of net sales: | ||||||||||||||||
Total operating income (loss) (as a percent) | 4.54% | 4.32% | 4.96% | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Total depreciation and amortization | 15,542,000 | [1] | 15,168,000 | 15,557,000 | 14,227,000 | 15,968,000 | [2] | 16,473,000 | 15,593,000 | 16,824,000 | 60,494,000 | 64,858,000 | 77,435,000 | |||
Capital expenditures: | ||||||||||||||||
Total capital expenditures | 72,212,000 | 72,606,000 | 90,182,000 | |||||||||||||
Business Exit Costs | 85,000 | -286,000 | -98,000 | 231,000 | -144,000 | 200,000 | 61,000 | -1,023,000 | -68,000 | -906,000 | 11,088,000 | |||||
Total assets: | ||||||||||||||||
Total assets | 958,618,000 | 990,630,000 | 958,618,000 | 990,630,000 | ||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | 313,759,000 | [3] | 315,504,000 | [3] | 313,759,000 | [3] | 315,504,000 | [3] | ||||||||
The Children's Place U.S. | ||||||||||||||||
Segment information | ||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 10,500,000 | 25,400,000 | ||||||||||||||
Severance Costs | 7,100,000 | 4,200,000 | ||||||||||||||
Number of Stores | 963 | 974 | 963 | 974 | ||||||||||||
Net sales: | ||||||||||||||||
Total net sales | 1,528,762,000 | 1,528,276,000 | 1,557,549,000 | |||||||||||||
Gross Profit: | ||||||||||||||||
Gross Profit | 535,226,000 | 558,156,000 | 584,081,000 | |||||||||||||
Gross Margin: | ||||||||||||||||
Total Gross Margin (as a percent) | 35.00% | 36.50% | 37.50% | |||||||||||||
Operating income (loss): | ||||||||||||||||
Total operating income (loss) | 63,586,000 | 60,267,000 | 68,346,000 | [4] | ||||||||||||
Operating income (loss) as a percent of net sales: | ||||||||||||||||
Total operating income (loss) (as a percent) | 4.16% | 3.94% | 4.39% | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Total depreciation and amortization | 52,565,000 | 55,595,000 | 65,066,000 | |||||||||||||
Capital expenditures: | ||||||||||||||||
Total capital expenditures | 68,847,000 | 64,486,000 | 75,945,000 | |||||||||||||
Total assets: | ||||||||||||||||
Total assets | 805,462,000 | 824,893,000 | 805,462,000 | 824,893,000 | ||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | 289,820,000 | [3] | 283,059,000 | [3] | 289,820,000 | [3] | 283,059,000 | [3] | ||||||||
The Children's Place Canada [Member] | ||||||||||||||||
Segment information | ||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 600,000 | 4,200,000 | ||||||||||||||
Number of Stores | 134 | 133 | 134 | 133 | ||||||||||||
Net sales: | ||||||||||||||||
Total net sales | 232,562,000 | [5] | 237,513,000 | [5] | 251,937,000 | [5] | ||||||||||
Gross Profit: | ||||||||||||||||
Gross Profit | 87,074,000 | 97,365,000 | 107,359,000 | |||||||||||||
Gross Margin: | ||||||||||||||||
Total Gross Margin (as a percent) | 37.40% | 41.00% | 42.60% | |||||||||||||
Operating income (loss): | ||||||||||||||||
Total operating income (loss) | 16,457,000 | 16,016,000 | 21,369,000 | |||||||||||||
Operating income (loss) as a percent of net sales: | ||||||||||||||||
Total operating income (loss) (as a percent) | 7.08% | 6.74% | 8.48% | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Total depreciation and amortization | 7,929,000 | 9,263,000 | 12,369,000 | |||||||||||||
Capital expenditures: | ||||||||||||||||
Total capital expenditures | 3,365,000 | 8,120,000 | 14,237,000 | |||||||||||||
Total assets: | ||||||||||||||||
Total assets | 153,156,000 | 165,737,000 | 153,156,000 | 165,737,000 | ||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | 22,697,000 | [3] | 31,046,000 | [3] | 22,697,000 | [3] | 31,046,000 | [3] | ||||||||
The Children's Place Asia [Member] [Member] | ||||||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | 1,242,000 | [3] | 1,399,000 | [3] | 1,242,000 | [3] | 1,399,000 | [3] | ||||||||
EastCoastDCSeveranceOther [Member] | ||||||||||||||||
Segment information | ||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 4,800,000 | 7,900,000 | ||||||||||||||
Severance Costs | $3,200,000 | $2,000,000 | ||||||||||||||
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[3] | Geographic InformationThe Company's long-lived assets are located in the following countries: January 31, 2015B February 1, 2014Long-lived assets (1): United StatesB $289,820B $283,059CanadaB 22,697B 31,046AsiaB 1,242B 1,399Total long-lived assetsB $313,759B $315,504____________________________________________(1)The Company's long-lived assets are comprised of net property and equipment and other assets | |||||||||||||||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmNiNTA2OTg0ZGM1NTQzMDA4YjAzNDRiNzc4YzY2ZjI2fFRleHRTZWxlY3Rpb246M0MwMEI5MTk2MTc0MzkzMTc5M0Y1OUU2OEZFQzI1QkYM} | |||||||||||||||
[5] | Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. |
QUARTERLY_FINANCIAL_DATA_Quart1
QUARTERLY FINANCIAL DATA Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Net sales | $479,243,000 | [1] | $487,304,000 | $384,628,000 | $410,149,000 | $467,497,000 | [2] | $492,680,000 | $382,448,000 | $423,164,000 | $1,761,324,000 | $1,765,789,000 | $1,809,486,000 |
Gross profit | 164,810,000 | [1] | 190,111,000 | 119,118,000 | 148,261,000 | 164,310,000 | [2] | 201,761,000 | 126,182,000 | 163,268,000 | 622,300,000 | 655,521,000 | 691,440,000 |
Selling, general and administrative expenses | 123,735,000 | [1] | 116,120,000 | 117,111,000 | 113,720,000 | 118,716,000 | [2] | 123,521,000 | 124,408,000 | 119,008,000 | 470,686,000 | 485,653,000 | 510,918,000 |
Asset impairment charges | 4,794,000 | [1] | 3,306,000 | 3,045,000 | 0 | 7,867,000 | [2] | 0 | 21,766,000 | 0 | 11,145,000 | 29,633,000 | 2,284,000 |
Other costs (income) | 85,000 | -286,000 | -98,000 | 231,000 | -144,000 | 200,000 | 61,000 | -1,023,000 | -68,000 | -906,000 | 11,088,000 | ||
Depreciation and amortization | 15,542,000 | [1] | 15,168,000 | 15,557,000 | 14,227,000 | 15,968,000 | [2] | 16,473,000 | 15,593,000 | 16,824,000 | 60,494,000 | 64,858,000 | 77,435,000 |
Operating income (loss) | 20,654,000 | [1] | 55,803,000 | -16,497,000 | 20,083,000 | 21,903,000 | [2] | 61,567,000 | -35,646,000 | 28,459,000 | 80,043,000 | 76,283,000 | 89,715,000 |
Income (loss) from continuing operations before income taxes | 20,609,000 | [1] | 55,721,000 | -16,557,000 | 20,102,000 | 22,026,000 | [2] | 61,649,000 | -35,646,000 | 28,519,000 | 79,875,000 | 76,548,000 | 89,695,000 |
Provision (benefit) for income taxes | 3,572,000 | [1] | 18,779,000 | -5,870,000 | 6,506,000 | 6,375,000 | [2] | 19,910,000 | -12,010,000 | 9,247,000 | 22,987,000 | 23,522,000 | 26,452,000 |
Income (loss) from continuing operations | 17,037,000 | [1] | 36,942,000 | -10,687,000 | 13,596,000 | 15,651,000 | [2] | 41,739,000 | -23,636,000 | 19,272,000 | |||
Diluted earnings (loss) per share from continuing operations | $0 | [1] | $1.70 | ($0.49) | $0.61 | $0.69 | [2] | $1.84 | $0 | $0.83 | $2.59 | $2.32 | $2.61 |
Diluted weighted average common shares outstanding (in shares) | 21,512 | 21,756 | 21,837 | 22,419 | 22,652 | 22,628 | 22,514 | 23,289 | 21,924 | 22,835 | 24,276 | ||
State | 3,691,000 | 4,371,000 | 5,230,000 | ||||||||||
Share-based Compensation | 17,783,000 | 21,210,000 | 14,253,000 | ||||||||||
Cash dividends declared and paid per common share | $0.13 | $0.13 | $0.13 | $0.13 | $0.15 | ||||||||
Disposition stores [Member] | |||||||||||||
Asset impairment charges | 4,800,000 | 7,900,000 | |||||||||||
Severance Costs | $3,200,000 | $2,000,000 | |||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmNiNTA2OTg0ZGM1NTQzMDA4YjAzNDRiNzc4YzY2ZjI2fFRleHRTZWxlY3Rpb246MzdDRTdDN0ZEQTNEMjBEM0EzMTM1OUU2OEZFQ0JDNjgM} | ||||||||||||
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SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 2 Months Ended | ||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 24, 2015 | Jan. 07, 2015 |
Subsequent Events | |||||||||||||
Stock Repurchased and Retired During Period, Shares | -1,493 | -1,298 | -1,800 | ||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.13 | $0.13 | $0.13 | $0.13 | $0.15 | ||||||||
Business Exit Costs | $85,000 | ($286,000) | ($98,000) | $231,000 | ($144,000) | $200,000 | $61,000 | ($1,023,000) | ($68,000) | ($906,000) | $11,088,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | 150,000,000 | 200,000,000 | 150,000,000 | |||||||||
Line Of Credit Facility Accordion Borrowing Capacity | 25,000,000 | 25,000,000 | |||||||||||
2014 Share Repurchase Program [Member] [Member] | |||||||||||||
Subsequent Events | |||||||||||||
Stock Repurchased and Retired During Period, Shares | 200 | ||||||||||||
Value of shares repurchased | 73,500,000 | 13,300,000 | |||||||||||
2014 Share Repurchase Program [Member] [Member] | |||||||||||||
Subsequent Events | |||||||||||||
Share repurchase | $100,000,000 |
SCHEDULE_II_SCHEUDLE_II_Detail
SCHEDULE II SCHEUDLE II (Details) (USD $) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | ||||
Valuation Allowances and Reserves, Balance | $1,925 | [1] | $4,268 | [1] | $2,413 | [1] | $2,746 | [1] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | [1] | 1,881 | [1] | 1,804 | [1] | ||
Valuation Allowances and Reserves, Deductions | ($2,343) | [1] | ($26) | [1] | ($2,137) | [1] | ||
[1] | Reflects adjustment of out-of-season merchandise inventories to realizable value. Column C represents increases to the reserve and Column D represents decreases to the reserve based on quarterly assessments of the reserve. |