Kirkland's (KIRK) 10-Q 5 Dec 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 02, 2019	Nov. 26, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 2, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	KIRKLAND'S, INC
Entity Central Index Key	0001056285
Current Fiscal Year End Date	--02-01
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		13,897,530

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Current assets:
Cash and cash equivalents	$ 4,202	$ 57,946	$ 23,837
Inventories, net	140,222	84,434	113,759
Prepaid expenses and other current assets	8,417	15,561	23,314
Total current assets	152,841	157,941	160,910
Property and equipment:
Equipment	21,524	21,425	21,878
Furniture and fixtures	80,869	81,523	82,361
Leasehold improvements	125,294	126,784	126,843
Computer software and hardware	73,311	69,444	67,911
Projects in progress	11,815	8,344	8,899
Property and equipment, gross	312,813	307,520	307,892
Accumulated depreciation	(216,717)	(196,697)	(192,617)
Property and equipment, net	96,096	110,823	115,275
Operating lease right-of-use assets	210,213	0	0
Deferred income taxes	944	1,703	1,255
Other assets	6,283	6,681	7,201
Total assets	466,377	277,148	284,641
Current liabilities:
Accounts payable	68,395	40,004	55,001
Accounts payable to related party vendor	0	8,166	11,261
Income taxes payable	0	701	0
Accrued expenses	23,527	37,665	34,466
Operating lease liabilities	53,210	0	0
Total current liabilities	145,132	86,536	100,728
Deferred rent	0	51,871	53,944
Operating lease liabilities	206,789	0	0
Revolving line of credit	25,000	0	0
Deferred income taxes	0	0	27
Other liabilities	8,883	7,941	8,692
Total liabilities	385,804	146,348	163,391
Shareholders’ equity:
Preferred stock, no par value, 10,000,000 shares authorized; no shares issued or outstanding at November 2, 2019, February 2, 2019, or November 3, 2018, respectively	0	0	0
Common stock, no par value; 100,000,000 shares authorized; 13,897,530; 14,504,824; and 15,063,439 shares issued and outstanding at November 2, 2019, February 2, 2019, and November 3, 2018, respectively	171,585	169,477	168,725
Accumulated deficit	(91,012)	(38,677)	(47,475)
Total shareholders’ equity	80,573	130,800	121,250
Total liabilities and shareholders’ equity	$ 466,377	$ 277,148	$ 284,641

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common stock, par value (usd per share)	$ 0	$ 0	$ 0
Common stock, shares authorized (in shares)	100,000,000	100,000,000	100,000,000
Common stock, shares issued (in shares)	13,897,530	14,504,824	15,063,439
Common stock, shares outstanding (in shares)	13,897,530	14,504,824	15,063,439

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Income Statement [Abstract]
Net sales	$ 144,936	$ 154,571	$ 394,469	$ 430,924
Cost of sales	104,800	95,289	276,792	267,619
Cost of sales related to merchandise purchased from related party vendor	0	12,629	14,749	34,542
Cost of sales	104,800	107,918	291,541	302,161
Gross profit	40,136	46,653	102,928	128,763
Operating expenses:
Compensation and benefits	29,115	29,621	83,333	83,490
Other operating expenses	20,208	18,783	54,998	54,067
Depreciation (exclusive of depreciation included in cost of sales)	1,602	1,867	5,177	5,405
Asset impairment charges	3,392	0	7,251	0
Total operating expenses	54,317	50,271	150,759	142,962
Operating loss	(14,181)	(3,618)	(47,831)	(14,199)
Interest expense	169	69	307	200
Other income	(158)	(224)	(712)	(825)
Loss before income taxes	(14,192)	(3,463)	(47,426)	(13,574)
Income tax expense (benefit)	8,114	(683)	921	(3,197)
Net loss	$ (22,306)	$ (2,780)	$ (48,347)	$ (10,377)
Loss per share:
Basic (usd per share)	$ (1.61)	$ (0.18)	$ (3.42)	$ (0.66)
Diluted (usd per share)	$ (1.61)	$ (0.18)	$ (3.42)	$ (0.66)
Weighted average shares outstanding:
Basic (in shares)	13,867	15,486	14,116	15,673
Diluted (in shares)	13,867	15,486	14,116	15,673

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Accumulated Deficit
Balance, beginning of period at Feb. 03, 2018	$ 140,761	$ 167,501	$ (26,740)
Balance, beginning of period (in shares) at Feb. 03, 2018		15,977,239
Increase (Decrease) in Stockholders Equity [Roll Forward]
Employee stock purchases (in shares)		10,969
Employee stock purchases	$ 82	$ 82
Exercise of stock options (in shares)	20,834
Exercise of stock options	$ 23	23
Stock-based compensation expense	393	$ 393
Repurchase and retirement of common stock (in shares)		(315,548)
Repurchase and retirement of common stock	(2,972)		(2,972)
Net loss	(882)		(882)
Balance, end of period at May. 05, 2018	137,405	$ 167,999	(30,594)
Balance, end of period (in shares) at May. 05, 2018		15,693,494
Balance, beginning of period at Feb. 03, 2018	140,761	$ 167,501	(26,740)
Balance, beginning of period (in shares) at Feb. 03, 2018		15,977,239
Increase (Decrease) in Stockholders Equity [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 0
Repurchase and retirement of common stock (in shares)	(1,082,117)
Net loss	$ (10,377)
Balance, end of period at Nov. 03, 2018	$ 121,250	$ 168,725	(47,475)
Balance, end of period (in shares) at Nov. 03, 2018	15,063,439	15,063,439
Balance, beginning of period at May. 05, 2018	$ 137,405	$ 167,999	(30,594)
Balance, beginning of period (in shares) at May. 05, 2018		15,693,494
Increase (Decrease) in Stockholders Equity [Roll Forward]
Employee stock purchases (in shares)		7,306
Employee stock purchases	79	$ 79
Stock Issued During Period, Shares, Restricted Stock Award, Gross		108,900
Net Share Settlement Of Stock Options And Restricted Stock, Shares		(137,478)
Net Share Settlement Of Stock Options And Restricted Stock Value	$ (378)	$ (378)
Exercise of stock options (in shares)	146,692
Exercise of stock options	$ 0	0
Stock-based compensation expense	498	$ 498
Repurchase and retirement of common stock (in shares)		(77,096)
Repurchase and retirement of common stock	(832)		(832)
Net loss	(6,715)		(6,715)
Balance, end of period at Aug. 04, 2018	130,057	$ 168,198	(38,141)
Balance, end of period (in shares) at Aug. 04, 2018		15,741,818
Increase (Decrease) in Stockholders Equity [Roll Forward]
Employee stock purchases (in shares)		9,971
Employee stock purchases	77	$ 77
Net Share Settlement Of Stock Options And Restricted Stock, Shares		(8,877)
Net Share Settlement Of Stock Options And Restricted Stock Value	$ 0	$ 0
Exercise of stock options (in shares)	10,000
Exercise of stock options	$ 0	0
Stock-based compensation expense	$ 450	$ 450
Repurchase and retirement of common stock (in shares)	(689,473)	(689,473)
Repurchase and retirement of common stock	$ (6,554)		(6,554)
Net loss	(2,780)		(2,780)
Balance, end of period at Nov. 03, 2018	$ 121,250	$ 168,725	(47,475)
Balance, end of period (in shares) at Nov. 03, 2018	15,063,439	15,063,439
Balance, beginning of period at Feb. 02, 2019	$ 130,800	$ 169,477	(38,677)
Balance, beginning of period (in shares) at Feb. 02, 2019	14,504,824	14,504,824
Increase (Decrease) in Stockholders Equity [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (331)		(331)
Employee stock purchases (in shares)		6,880
Employee stock purchases	68	$ 68
Stock-based compensation expense	560	$ 560
Repurchase and retirement of common stock (in shares)		(287,056)
Repurchase and retirement of common stock	(2,368)		(2,368)
Net loss	(8,921)		(8,921)
Balance, end of period at May. 04, 2019	119,808	$ 170,105	(50,297)
Balance, end of period (in shares) at May. 04, 2019		14,224,648
Balance, beginning of period at Feb. 02, 2019	$ 130,800	$ 169,477	(38,677)
Balance, beginning of period (in shares) at Feb. 02, 2019	14,504,824	14,504,824
Increase (Decrease) in Stockholders Equity [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (331)
Repurchase and retirement of common stock (in shares)	(807,275)
Net loss	$ (48,347)
Balance, end of period at Nov. 02, 2019	$ 80,573	$ 171,585	(91,012)
Balance, end of period (in shares) at Nov. 02, 2019	13,897,530	13,897,530
Balance, beginning of period at May. 04, 2019	$ 119,808	$ 170,105	(50,297)
Balance, beginning of period (in shares) at May. 04, 2019		14,224,648
Increase (Decrease) in Stockholders Equity [Roll Forward]
Employee stock purchases (in shares)		22,354
Employee stock purchases	77	$ 77
Stock Issued During Period, Shares, Restricted Stock Award, Gross		70,725
Net Share Settlement Of Stock Options And Restricted Stock, Shares		(10,792)
Net Share Settlement Of Stock Options And Restricted Stock Value	(44)	$ (44)
Stock-based compensation expense	731	$ 731
Repurchase and retirement of common stock (in shares)		(345,906)
Repurchase and retirement of common stock	(1,046)		(1,046)
Net loss	(17,120)		(17,120)
Balance, end of period at Aug. 03, 2019	102,406	$ 170,869	(68,463)
Balance, end of period (in shares) at Aug. 03, 2019		13,961,029
Increase (Decrease) in Stockholders Equity [Roll Forward]
Employee stock purchases (in shares)		36,453
Employee stock purchases	45	$ 45
Stock Issued During Period, Shares, Restricted Stock Award, Gross		98,298
Net Share Settlement Of Stock Options And Restricted Stock, Shares		(23,937)
Net Share Settlement Of Stock Options And Restricted Stock Value	(33)	$ (33)
Stock-based compensation expense	$ 704	$ 704
Repurchase and retirement of common stock (in shares)	(174,313)	(174,313)
Repurchase and retirement of common stock	$ (243)		(243)
Net loss	(22,306)		(22,306)
Balance, end of period at Nov. 02, 2019	$ 80,573	$ 171,585	$ (91,012)
Balance, end of period (in shares) at Nov. 02, 2019	13,897,530	13,897,530

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018
Cash flows from operating activities:
Net loss	$ (48,347)	$ (10,377)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	21,156	21,992
Amortization of debt issue costs	41	41
Asset impairment charges	7,251	0
Cumulative Effect of New Accounting Principle in Period of Adoption	(331)	0
Loss on disposal of property and equipment	150	340
Stock-based compensation expense	1,995	1,341
Deferred income taxes	759	988
Changes in assets and liabilities:
Inventories, net	(55,788)	(32,504)
Prepaid expenses and other current assets	2,443	(2,318)
Accounts payable	27,845	9,856
Accounts payable to related party vendor	(8,166)	3,738
Accrued expenses	(3,547)	(5,007)
Income taxes refundable	(1,041)	(9,951)
Operating lease assets and liabilities	(7,161)	1,242
Other assets and liabilities	300	(200)
Net cash used in operating activities	(62,441)	(20,819)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
Capital expenditures	(12,759)	(25,025)
Net cash used in investing activities	(12,759)	(25,025)
Cash flows from financing activities:
Borrowings on revolving line of credit	25,000	0
Cash Used To Net Share Settle Options And Restricted Stock	(77)	(378)
Proceeds from Stock Options Exercised	0	23
Employee stock purchases	190	238
Payments for Repurchase of Common Stock	(3,657)	(10,358)
Net cash used in financing activities	21,456	(10,475)
Cash and cash equivalents:
Net decrease	(53,744)	(56,319)
Beginning of the period	57,946	80,156
End of the period	4,202	23,837
Supplemental schedule of non-cash activities:
Non-cash accruals for purchases of property and equipment	1,818	1,970
Operating lease assets and liabilities recognized upon adoption of ASC 842	295,240	0
Increase of operating lease liabilities from new or modified leases	$ 17,840	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Nov. 02, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Description of Business and Basis of Presentation Kirkland’s, Inc. (the “Company”) is a specialty retailer of home décor in the United States operating 432 stores in 37 states as of November 2, 2019 , as well as an e-commerce enabled website, www.kirklands.com. The condensed consolidated financial statements of the Company include the accounts of Kirkland’s, Inc. and its wholly-owned subsidiaries, Kirkland’s Stores, Inc., Kirkland’s DC, Inc., and Kirkland’s Texas, LLC. Significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2019 . It should be understood that accounting measurements at interim dates inherently involve greater reliance on estimates than those at fiscal year-end. In addition, because of seasonality factors, the results of the Company’s operations for the 13-week and 39-week periods ended November 2, 2019 are not indicative of the results to be expected for any other interim period or for the entire fiscal year. The Company’s fiscal year ends on the Saturday closest to January 31, resulting in years of either 52 or 53 weeks. The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from the estimates and assumptions used. Changes in estimates are recognized in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include, but are not limited to, impairment assessments on long-lived assets, inventory reserves and self-insurance reserves. For the 13-week and 39-week periods ended November 3, 2018, the Company recorded an unfavorable $0.7 million one-time out-of-period adjustment related to revised straight-line rent calculations to cost of sales from deferred rent. In the beginning of fiscal 2019, the Company adopted new lease accounting guidance. The adoption of the new lease accounting guidance had a material impact to the Company’s condensed consolidated balance sheets and related disclosures, and resulted in the recording of additional right-of-use assets and lease liabilities of approximately $295.2 million as of the date of adoption. This guidance was applied using the optional transition method, which allowed the Company to not recast comparative financial information but rather recognize a cumulative-effect adjustment to retained earnings as of the effective date in the period of adoption. An adjustment of $0.3 million was made to retained earnings as a result of right-of-use assets that were impaired upon the adoption of this guidance. See Note 11 to the condensed consolidated financial statements for further discussion. Consistent with the optional transition method, the financial information in the condensed consolidated balance sheets prior to the adoption of this new lease accounting guidance has not been adjusted and is therefore not comparable to the current period presented. The standard did not materially impact the Company’s condensed consolidated statements of operations or cash flows. For additional information, including the required disclosures, related to the impact of adopting this standard, see Note 10 and Note 12 to the condensed consolidated financial statements. Certain other amounts in the fiscal 2018 operating activities section of the condensed consolidated statement of cash flows have been reclassified to conform to the fiscal 2019 presentation. These reclassifications had no effect on reported net loss. The Company uses the redemption recognition method to account for breakage for unused gift card amounts where breakage is recognized as gift cards are redeemed for the purchase of goods based upon a historical breakage rate. In these circumstances, to the extent the Company determines there is no requirement for remitting card balances to government agencies under unclaimed property laws, such amounts are recognized in the consolidated statements of operations as a component of net sales. The table below sets forth selected gift card liability information (in thousands) for the periods indicated: November 2, 2019 February 2, 2019 November 3, 2018 Gift card liability, net of estimated breakage $ 11,187 $ 13,032 $ 10,308 The table below sets forth selected gift card breakage and redemption information (in thousands) for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Gift card breakage revenue $ 243 $ 257 $ 774 $ 809 Gift card redemptions recognized in the current period related to amounts included in the gift card contract liability balance as of the prior period 1,814 2,110 5,349 5,012

Income Taxes

Income Taxes	9 Months Ended
	Nov. 02, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes An estimate of the annual effective tax rate is used at each interim period based on the facts and circumstances available at that time, while the actual effective tax rate is calculated at year-end. For the 13-week periods ended November 2, 2019 and November 3, 2018 , the Company recorded income tax expense of 57.2% of the loss before income taxes and recorded an income tax benefit of 19.7% of the loss before income taxes , respectively. For the 39-week periods ended November 2, 2019 and November 3, 2018 , the Company recorded income tax expense of 1.9% of the loss before income taxes and an income tax benefit of 23.6% of the loss before income taxes , respectively. The change in the tax rate for the 13-week and 39-week periods ended November 2, 2019 was primarily due to establishing a valuation allowance against deferred tax assets of $11.3 million as of November 2, 2019 , as the Company is estimated to have a three year cumulative pretax loss, and by the realization of discrete shortfall tax expense related to stock forfeitures and vesting of restricted stock units. The Company recognizes deferred tax assets and liabilities using estimated future tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities, including net operating loss carryforwards. Management assesses the realizability of deferred tax assets and records a valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company considers the probability of future taxable income and our historical profitability, among other factors, in assessing the amount of the valuation allowance. For the period ended November 2, 2019 , the Company established a full valuation allowance against its federal and consolidated state deferred tax assets, primarily net operating loss carryforwards, due to uncertainty regarding their realization. Adjustments could be required in the future if the Company estimates that the amount of deferred tax assets to be realized is more than the net amount recorded. Any decrease in the valuation allowance could have the effect of increasing or decreasing the income tax provision in the statement of operations based on the nature of the deferred tax asset deemed realizable in the period in which such determination is made.

Loss Per Share

Loss Per Share	9 Months Ended
	Nov. 02, 2019
Earnings Per Share [Abstract]
Loss Per Share	Loss Per Share Basic loss per share is computed by dividing net loss by the weighted average number of shares outstanding during each period presented. Diluted loss per share is computed by dividing net loss by the weighted average number of shares outstanding plus the dilutive effect of stock equivalents outstanding during the applicable periods using the treasury stock method. Diluted loss per share reflects the potential dilution that could occur if options to purchase stock were exercised into common stock and if outstanding grants of restricted stock were vested. Stock options and restricted stock units that were not included in the computation of diluted loss per share, because to do so would have been antidilutive, were approximately 1.6 million and 1.2 million shares for the 13-week periods ended November 2, 2019 and November 3, 2018 , respectively, and 1.6 million and 1.3 million shares for the 39-week periods ended November 2, 2019 and November 3, 2018 , respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Nov. 02, 2019
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments, Policy	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets and accounts payable approximate fair value because of their short maturities. The Company maintains The Executive Non-Qualified Excess Plan (the “Deferred Compensation Plan”). The Deferred Compensation Plan is funded, and the Company invests participant deferrals into trust assets, which are invested in a variety of mutual funds that are Level 1 inputs. The plan assets and plan liabilities are adjusted to fair value on a recurring basis. The Board of Directors approved the termination of the Deferred Compensation Plan effective September 6, 2019. Any remaining balances in the Deferred Compensation Plan will be paid out one year from the effective date. Deferred Compensation Plan assets and liabilities were approximately $1.8 million , $1.9 million and $2.1 million as of November 2, 2019 , February 2, 2019 and November 3, 2018 , respectively, and were recorded in other assets and other liabilities in the condensed consolidated balance sheets. The Company measures certain assets at fair value on a non-recurring basis including the evaluation of long-lived assets for impairment using Company-specific assumptions which would fall within Level 3 of the fair value hierarchy. The Company uses market participant rents to calculate the fair value of right-of-use assets and discounted future cash flows of the asset or asset group using a discount rate that approximates the cost of capital of a market participant to quantify fair value for other long-lived assets. See Note 11 to the condensed consolidated financial statements for further discussion.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Nov. 02, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company was named as a defendant in a putative class action filed in April 2017 in the United States District Court for the Western District of Pennsylvania, Gennock v. Kirkland’s, Inc. The complaint alleged that the Company, in violation of federal law, published more than the last five digits of a credit or debit card number on customers’ receipts. On October 21, 2019, the District Court dismissed the matter and ruled that the Plaintiffs did not have standing based on the Third Circuit’s recent decision in Kamal v. J. Crew Group, Inc., 918 F.3d 102 (3d. Cir. 2019). Following the dismissal in Federal Court, on October 25, 2019 the Plaintiffs filed a Praecipe to Transfer the case to Pennsylvania state court. The Company continues to believe that the case is without merit and intends to continue to vigorously defend itself against the allegations. The matter is covered by insurance, and the Company does not believe that the case will have a material adverse effect on its consolidated financial condition, operating results or cash flows. The Company has been named as a defendant in a putative class action filed in May 2018 in the Superior Court of California, Miles v. Kirkland’s Stores, Inc. The case has been removed to Federal Court, Central District of California, and trial is not yet set. The complaint alleges, on behalf of Miles and all other hourly Kirkland’s employees in California, various wage and hour violations. Kirkland’s denies the material allegations in the complaint and believes that its employment policies are generally compliant with California law. To date, the parties have exchanged the court mandated initial disclosures. The Company believes the case is without merit and intends to vigorously defend itself against the allegations. The Company is also party to other pending legal proceedings and claims that arise in the normal course of business. Although the outcome of such proceedings and claims cannot be determined with certainty, the Company’s management is of the opinion that it is unlikely that such proceedings and any claims in excess of insurance coverage will have a material effect on the Company’s consolidated financial condition, operating results or cash flows.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Nov. 02, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company maintains equity incentive plans under which it may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units, or stock appreciation rights to employees, non-employee directors and consultants. Compensation expense is recognized on a straight-line basis over the vesting periods of each grant. There have been no material changes in the assumptions used to compute compensation expense during the current year. The table below sets forth selected stock-based compensation information (in thousands, except share amounts) for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Stock-based compensation expense (included in compensation and benefits on the condensed consolidated statements of operations) $ 704 $ 450 $ 1,995 $ 1,341 Stock options granted 74,468 — 504,961 157,700 Restricted stock units granted 42,424 132,834 501,141 243,734

Related Party Transactions

Related Party Transactions	9 Months Ended
	Nov. 02, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company had an agreement with a related party vendor to purchase merchandise inventory. The vendor was considered a related party for financial reporting purposes because its principal owner is the spouse of the Company’s former Vice President of Product Development and Trend. As of June 14, 2019, the vendor is no longer a related party. The table below sets forth selected results related to this vendor, for the time period that the vendor was a related party, in dollars (in thousands) and percentages for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Related Party Vendor: Purchases $ — $ 17,444 $ 19,577 $ 41,966 Purchases as a percent of total merchandise purchases — % 22.5 % 9.4 % 21.1 %

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Nov. 02, 2019
Treasury Stock Transactions [Abstract]
Treasury Stock	Stock Repurchase Plan On August 22, 2017, the Company announced that its Board of Directors authorized a stock repurchase plan providing for the purchase in the aggregate of up to $10 million of the Company’s outstanding common stock. This stock repurchase plan was completed during the third quarter of fiscal 2018. On September 24, 2018, the Company announced that its Board of Directors authorized a new stock repurchase plan providing for the purchase in the aggregate of up to $10 million of the Company’s outstanding common stock. Repurchases of shares will be made in accordance with applicable securities laws and may be made from time to time in the open market or by negotiated transactions. The amount and timing of repurchases will be based on a variety of factors, including stock acquisition price, regulatory limitations and other market and economic factors. The stock repurchase plan does not require the Company to repurchase any specific number of shares, and the Company may terminate the repurchase plan at any time. As of November 2, 2019 , the Company had approximately $21,000 remaining under the current stock repurchase plan. The table below sets forth selected stock repurchase plan information (in thousands, except share amounts) for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Shares repurchased and retired 174,313 689,473 807,275 1,082,117 Share repurchase cost $ 243 $ 6,554 $ 3,657 $ 10,358

Senior Credit Facility

Senior Credit Facility	9 Months Ended
	Nov. 02, 2019
Debt Disclosure [Abstract]
Senior Credit Facility	Senior Credit Facility The Company is party to a Joinder and First Amendment to Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, N.A. as administrative agent and collateral agent, and the lenders named therein (the “Lenders”). The Credit Agreement includes a senior secured revolving credit facility of $75 million , a swingline availability of $10 million , a $25 million incremental accordion feature and a maturity date of February 2021. Borrowings under the Credit Agreement bear interest at an annual rate equal to LIBOR plus a margin ranging from 125 to 175 basis points with no LIBOR floor, and the fee paid to the Lenders on the unused portion of the credit facility is 25 basis points per annum. Borrowings under the Credit Agreement are subject to certain conditions and contain customary events of default, including, without limitation, failure to make payments, a cross-default to certain other debt, breaches of covenants, breaches of representations and warranties, a change in control, certain monetary judgments and bankruptcy and ERISA events. Upon any such event of default, the principal amount of any unpaid loans and all other obligations under the Credit Agreement may be declared immediately due and payable. The maximum availability under the facility is limited by a borrowing base formula which consists of a percentage of eligible inventory and eligible credit card receivables, less reserves. The Company is subject to an Amended and Restated Security Agreement (the “Security Agreement”) with its Lenders. Pursuant to the Security Agreement, the Company pledged and granted to the administrative agent, for the benefit of itself and the secured parties specified therein, a lien on and security interest in all of the rights, title and interest in substantially all of the Company’s assets to secure the payment and performance of the obligations under the Credit Agreement. As of November 2, 2019 , the Company was in compliance with the covenants in the Credit Agreement, and there were $25 million of outstanding borrowings under the revolving credit facility, with $50 million available for borrowing.

Leases

Leases	9 Months Ended
	Nov. 02, 2019
Leases [Abstract]
Lessee, Operating Leases	Leases The Company leases retail store facilities, corporate office space, warehouse facilities and certain vehicles and equipment under operating leases with terms generally ranging up to 10 years and expiring at various dates through fiscal 2029 . Most of the retail store lease agreements include an initial term with renewal options and provide for minimum fixed rental payments. The Company does not include lease renewal options in the lease term for calculations of its right-of-use assets and liabilities until it is reasonably certain that the Company plans to renew these leases. A few retail store lease agreements have only variable lease payments based on a percentage of sales, while other store leases contain contingent rentals based on sales performance in excess of specified minimums in addition to minimum fixed rentals. The majority of the Company’s leases have monthly fixed rent with variable components (e.g., real estate taxes and insurance costs) and variable non-lease components (e.g., common area maintenance). These variable payments are excluded from the calculation of the lease liability and right-of-use asset. For leases where the lease and non-lease components are fixed, the Company has elected an accounting policy to account for lease and non-lease components as a single component. The Company’s leases do not provide an implicit rate, so the incremental borrowing rate, based on the information available at commencement or modification date, is used in determining the present value of lease payments. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, the Company used the incremental borrowing rate that corresponded to the remaining lease term as of the date of adoption. The Company’s classification of lease cost on the Company’s condensed consolidated statements of operations is as follows (in thousands): 13 Week Period Ended (1) 39-Week Period Ended (1) November 2, 2019 November 2, 2019 Cost of sales (2) Operating lease cost $ 13,855 $ 40,917 Short-term lease cost 362 1,070 Variable lease cost 315 832 Total lease cost in cost of sales $ 14,532 $ 42,819 Other operating expenses Operating lease cost $ 713 $ 2,173 Short-term lease cost 136 224 Total lease cost in other operating expenses $ 849 $ 2,397 (1) Total lease cost for the 13-week and 39-week periods ended November 2, 2019 excludes expense for variable non-lease components including common area maintenance and excludes costs that are not a component of the lease including real estate taxes, insurance, sales taxes and utilities for the Company’s leases. (2) Cost of sales includes all distribution center lease costs and store occupancy-related lease cost. As of November 2, 2019 , future minimum payments, by year and in the aggregate, under all operating leases with initial terms of one year or more consist of the following (in thousands): Operating Leases 2019 (excluding the 39 weeks ended November 2, 2019) $ 11,315 2020 65,526 2021 56,759 2022 47,015 2023 38,416 After 2023 86,826 Total lease payments (1) 305,857 Less: Interest (45,858 ) Present value of lease liabilities $ 259,999 (1) Operating lease payments exclude $6.0 million of legally binding minimum lease payments for leases signed but not yet commenced for three new store leases. The Company’s lease term and discount rate is as follows: November 2, 2019 Weighted-average remaining lease term (years) 6.0 Weighted-average discount rate 5.7 % Cash paid for amounts included in the measurement of lease liabilities is as follows (in thousands): 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 2, 2019 Operating cash flows from operating leases $ 16,048 $ 48,965 The Company adopted new lease accounting guidance as of the beginning of fiscal 2019 as discussed in Note 1 and Note 12, and as required, the following disclosure is provided for periods prior to adoption. As of February 2, 2019, future minimum payments, by year and in the aggregate, under all operating leases with initial terms of one year or more consist of the following (in thousands): Operating Leases 2019 $ 67,354 2020 62,102 2021 53,164 2022 44,087 2023 35,606 Thereafter 91,629 Total minimum lease payments $ 353,942

Impairments

Impairments	9 Months Ended
	Nov. 02, 2019
Impairments [Abstract]
Asset Impairment Charges	Impairments The Company evaluates the recoverability of the carrying amounts of long-lived assets when events or changes in circumstances dictate that their carrying values may not be recoverable. This review includes the evaluation of individual under-performing retail stores and assessing the recoverability of the carrying value of the assets related to the stores. Future cash flows are projected for the remaining lease life. If the estimated future cash flows are less than the carrying value of the assets, the Company records an impairment charge equal to the difference between the assets’ fair value and carrying value. The fair value is estimated using a discounted cash flow approach considering such factors as future sales levels, gross margins, changes in rent and other expenses as well as the overall operating environment specific to that store. The amount of the impairment charge is allocated proportionately to all assets in the asset group with no asset written down below its individual fair value. In connection with the adoption of the new lease accounting standard, the Company reviewed its store portfolio for possible impairment, as right-of-use assets are now included as part of the long-lived asset group that is evaluated for impairment. As a result of this review, eight stores were identified for which the carrying amounts of the store assets were not expected to be recoverable. In the first 13 weeks of fiscal 2019, the Company recorded an adjustment to increase the opening balance of accumulated deficit by approximately $0.3 million for the cumulative effect of the adoption of ASC 842 for right-of-use assets at six of the impaired stores. During the 13-week and 39-week periods ended November 2, 2019 , the Company recorded an impairment charge of approximately $41,000 for right-of-use asset impairment at one store and $525,000 for right-of-use asset impairment at three stores, respectively. The Company also recorded an impairment charge totaling approximately $3.4 million and $6.7 million for the 13-week and 39-week periods ended November 2, 2019 , respectively, for leasehold improvements, fixtures and equipment at 17 stores and 22 stores, respectively, for which the carrying value exceed the fair value of these assets. The total impairment charge, net of tax, for the 13-week and 39-week periods ended November 2, 2019 was $2.5 million and $5.5 million , respectively. In the first quarter of fiscal 2019, the Company shifted to estimating the fair value of long-lived fixed assets based on orderly liquidation value as the Company believes this method better reflects the fair value of the assets. The Company previously used the age-life method for calculating the fair value of long-lived fixed assets.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Nov. 02, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements New Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”, which supersedes the existing guidance for lease accounting, Leases (Topic 840) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for both operating leases and finance leases on the balance sheet at the lease commencement date. For operating leases, the lessee would recognize a straight-line total lease expense, while for finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset. The Company currently only has operating leases. Lessor accounting remains largely unchanged, and the Company is not a lessor in any lease agreements. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. There have been multiple standard updates amending this guidance or providing corrections or improvements on issues in the guidance. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an optional transition method in addition to the existing modified retrospective transition method by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Under this transition method, companies may continue to report comparative periods under ASC 840, although they must also provide the required disclosures under ASC 840 for all periods presented under ASC 840. In January 2018, the FASB issued ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” This update permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASU 2016-02 and that were not accounted for as leases under previous lease guidance. The Company adopted this guidance as of the beginning of the first 13 weeks of fiscal 2019, and as a part of that process, made the following elections: • The Company elected the optional transition method, which allows for the lessee to not recast comparative financial information but rather recognize a cumulative-effect adjustment to retained earnings as of the effective date in the period of adoption. • The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company to carry forward its prior lease classification under ASC 840, not reassess whether expired or existing contracts contain leases and not reevaluate initial direct costs for existing leases. • The Company did not elect the hindsight practical expedient for all leases. • The Company elected to make the accounting policy election for short-term leases, for which the Company does not recognize right-of-use assets or lease liabilities, resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. • The majority of the Company’s leases have variable non-lease components. For leases where the non-lease components are fixed, the Company has elected an accounting policy to account for lease and non-lease components as a single component. • The Company elected the land easement practical expedient. Adoption of the new standard had a material impact on the Company’s condensed consolidated balance sheets, statement of shareholders’ equity and related disclosures, and resulted in the recording of additional right-of-use assets and lease liabilities of approximately $295.2 million as of the date of adoption. Right-of-use assets are recorded based upon the present value of remaining operating lease liabilities adjusted for prepaid and deferred rent, including deferred construction allowances from landlords and initial direct costs. The Company also recorded an adjustment to increase the opening balance of accumulated deficit by approximately $0.3 million for the cumulative effect of the adoption of ASC 842 for right-of-use assets for stores with impairment indicators at adoption. The standard did not materially impact the Company’s condensed consolidated statements of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is A Service Contract” (“ASU 2018-15”). This update clarifies the accounting treatment for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The amendments may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance in the first 13 weeks of fiscal 2019 using the prospective adoption method. This guidance could have a material effect on future financial results depending on whether or not the Company implements new software as a service solutions with significant implementation costs, as they would be deferred and expensed over the term of the agreement. The adoption of this guidance did not have a material effect on the Company’s current consolidated financial statements and related disclosures.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	9 Months Ended
	Nov. 02, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements Recently Adopted	New Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”, which supersedes the existing guidance for lease accounting, Leases (Topic 840) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for both operating leases and finance leases on the balance sheet at the lease commencement date. For operating leases, the lessee would recognize a straight-line total lease expense, while for finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset. The Company currently only has operating leases. Lessor accounting remains largely unchanged, and the Company is not a lessor in any lease agreements. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. There have been multiple standard updates amending this guidance or providing corrections or improvements on issues in the guidance. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides an optional transition method in addition to the existing modified retrospective transition method by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Under this transition method, companies may continue to report comparative periods under ASC 840, although they must also provide the required disclosures under ASC 840 for all periods presented under ASC 840. In January 2018, the FASB issued ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” This update permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASU 2016-02 and that were not accounted for as leases under previous lease guidance. The Company adopted this guidance as of the beginning of the first 13 weeks of fiscal 2019, and as a part of that process, made the following elections: • The Company elected the optional transition method, which allows for the lessee to not recast comparative financial information but rather recognize a cumulative-effect adjustment to retained earnings as of the effective date in the period of adoption. • The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company to carry forward its prior lease classification under ASC 840, not reassess whether expired or existing contracts contain leases and not reevaluate initial direct costs for existing leases. • The Company did not elect the hindsight practical expedient for all leases. • The Company elected to make the accounting policy election for short-term leases, for which the Company does not recognize right-of-use assets or lease liabilities, resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. • The majority of the Company’s leases have variable non-lease components. For leases where the non-lease components are fixed, the Company has elected an accounting policy to account for lease and non-lease components as a single component. • The Company elected the land easement practical expedient. Adoption of the new standard had a material impact on the Company’s condensed consolidated balance sheets, statement of shareholders’ equity and related disclosures, and resulted in the recording of additional right-of-use assets and lease liabilities of approximately $295.2 million as of the date of adoption. Right-of-use assets are recorded based upon the present value of remaining operating lease liabilities adjusted for prepaid and deferred rent, including deferred construction allowances from landlords and initial direct costs. The Company also recorded an adjustment to increase the opening balance of accumulated deficit by approximately $0.3 million for the cumulative effect of the adoption of ASC 842 for right-of-use assets for stores with impairment indicators at adoption. The standard did not materially impact the Company’s condensed consolidated statements of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is A Service Contract” (“ASU 2018-15”). This update clarifies the accounting treatment for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The amendments may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance in the first 13 weeks of fiscal 2019 using the prospective adoption method. This guidance could have a material effect on future financial results depending on whether or not the Company implements new software as a service solutions with significant implementation costs, as they would be deferred and expensed over the term of the agreement. The adoption of this guidance did not have a material effect on the Company’s current consolidated financial statements and related disclosures.

Basis of Presentation Gift Card

Basis of Presentation Gift Card Redemption Recognition (Tables)	9 Months Ended
	Nov. 02, 2019
Payables and Accruals [Abstract]
Gift Card Liability, Net of Estimated Breakage	The table below sets forth selected gift card liability information (in thousands) for the periods indicated: November 2, 2019 February 2, 2019 November 3, 2018 Gift card liability, net of estimated breakage $ 11,187 $ 13,032 $ 10,308
Gift Card Breakage and Redemptions Recognized	The table below sets forth selected gift card breakage and redemption information (in thousands) for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Gift card breakage revenue $ 243 $ 257 $ 774 $ 809 Gift card redemptions recognized in the current period related to amounts included in the gift card contract liability balance as of the prior period 1,814 2,110 5,349 5,012

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Nov. 02, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	The table below sets forth selected stock-based compensation information (in thousands, except share amounts) for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Stock-based compensation expense (included in compensation and benefits on the condensed consolidated statements of operations) $ 704 $ 450 $ 1,995 $ 1,341 Stock options granted 74,468 — 504,961 157,700 Restricted stock units granted 42,424 132,834 501,141 243,734

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Nov. 02, 2019
Related Party Transactions [Abstract]
Schedule of Selected Results to Vendor in Dollars and Percentages	The table below sets forth selected results related to this vendor, for the time period that the vendor was a related party, in dollars (in thousands) and percentages for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Related Party Vendor: Purchases $ — $ 17,444 $ 19,577 $ 41,966 Purchases as a percent of total merchandise purchases — % 22.5 % 9.4 % 21.1 %

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	9 Months Ended
	Nov. 02, 2019
Treasury Stock Transactions [Abstract]
Class of Treasury Stock	The table below sets forth selected stock repurchase plan information (in thousands, except share amounts) for the periods indicated: 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Shares repurchased and retired 174,313 689,473 807,275 1,082,117 Share repurchase cost $ 243 $ 6,554 $ 3,657 $ 10,358

Leases (Tables)

Leases (Tables)	9 Months Ended
	Nov. 02, 2019
Leases [Abstract]
Lease, Cost	The Company’s classification of lease cost on the Company’s condensed consolidated statements of operations is as follows (in thousands): 13 Week Period Ended (1) 39-Week Period Ended (1) November 2, 2019 November 2, 2019 Cost of sales (2) Operating lease cost $ 13,855 $ 40,917 Short-term lease cost 362 1,070 Variable lease cost 315 832 Total lease cost in cost of sales $ 14,532 $ 42,819 Other operating expenses Operating lease cost $ 713 $ 2,173 Short-term lease cost 136 224 Total lease cost in other operating expenses $ 849 $ 2,397 (1) Total lease cost for the 13-week and 39-week periods ended November 2, 2019 excludes expense for variable non-lease components including common area maintenance and excludes costs that are not a component of the lease including real estate taxes, insurance, sales taxes and utilities for the Company’s leases. (2) Cost of sales includes all distribution center lease costs and store occupancy-related lease cost.
Lessee, Operating Lease, Liability, Maturity	As of November 2, 2019 , future minimum payments, by year and in the aggregate, under all operating leases with initial terms of one year or more consist of the following (in thousands): Operating Leases 2019 (excluding the 39 weeks ended November 2, 2019) $ 11,315 2020 65,526 2021 56,759 2022 47,015 2023 38,416 After 2023 86,826 Total lease payments (1) 305,857 Less: Interest (45,858 ) Present value of lease liabilities $ 259,999 (1) Operating lease payments exclude $6.0 million of legally binding minimum lease payments for leases signed but not yet commenced for three new store lease
Leases Term and Discount Rate	The Company’s lease term and discount rate is as follows: November 2, 2019 Weighted-average remaining lease term (years) 6.0 Weighted-average discount rate 5.7 %
Leases Cash Flow Supplemental Disclosure	Cash paid for amounts included in the measurement of lease liabilities is as follows (in thousands): 13-Week Period Ended 39-Week Period Ended November 2, 2019 November 2, 2019 Operating cash flows from operating leases $ 16,048 $ 48,965
Schedule of Future Minimum Rental Payments for Operating Leases	The Company adopted new lease accounting guidance as of the beginning of fiscal 2019 as discussed in Note 1 and Note 12, and as required, the following disclosure is provided for periods prior to adoption. As of February 2, 2019, future minimum payments, by year and in the aggregate, under all operating leases with initial terms of one year or more consist of the following (in thousands): Operating Leases 2019 $ 67,354 2020 62,102 2021 53,164 2022 44,087 2023 35,606 Thereafter 91,629 Total minimum lease payments $ 353,942

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	3 Months Ended		9 Months Ended
	May 04, 2019USD ($)	Nov. 03, 2018USD ($)	Nov. 02, 2019USD ($)storestate	Nov. 03, 2018USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of home decor and gifts store | store			432
Number of states | state			37
Out of Period Rent Adjustment		$ 700		$ 700
Operating lease assets and liabilities recognized upon adoption of ASC 842			$ 295,240	0
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 331		$ 331	$ 0

Gift Card Breakage and Redempti

Gift Card Breakage and Redemption (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018	Feb. 02, 2019
Gift Card Breakage and Redemption [Abstract]
Gift card liability	$ 11,187	$ 10,308	$ 11,187	$ 10,308	$ 13,032
Gift card breakage revenue	243	257	774	809
Gift card redemptions recognized	$ 1,814	$ 2,110	$ 5,349	$ 5,012

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Valuation Allowance [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 11.3		$ 11.3
Effective tax rate	(57.20%)	19.70%	(1.90%)	23.60%

Loss Per Share (Details)

Loss Per Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Earnings Per Share [Abstract]
Stock options and restricted stock units not included in the computation of diluted earnings per share (in shares)	1.6	1.2	1.6	1.3

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Fair Value of Financial Instruments [Abstract]
Deferred Compensation Plan Assets	$ 1,800	$ 1,900	$ 2,100
Deferred Compensation Liability	$ 1,800	$ 1,900	$ 2,100

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (included in compensation and benefits on the condensed consolidated statements of operations)	$ 704	$ 450	$ 1,995	$ 1,341
Stock options granted (in shares)	74,468	0	504,961	157,700
Restricted stock units granted (in shares)	42,424	132,834	501,141	243,734

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Related Party Transactions [Abstract]
Purchases	$ 0	$ 17,444	$ 19,577	$ 41,966
Purchases as a percent of total merchandise purchases	0.00%	22.50%	9.40%	21.10%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018	Sep. 24, 2018	Aug. 22, 2017
Treasury Stock Transactions [Abstract]
Stock Repurchase Program, Authorized Amount					$ 10,000,000	$ 10,000,000
Stock Repurchased and Retired During Period, Shares	174,313	689,473	807,275	1,082,117
Payments for Repurchase of Common Stock	$ 243,000	$ 6,554,000	$ 3,657,000	$ 10,358,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 21,000		$ 21,000

Senior Credit Facility (Details

Senior Credit Facility (Details) - USD ($)	9 Months Ended
	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018
Line of Credit Facility [Line Items]
Revolving line of credit	$ 25,000,000	$ 0	$ 0
Secured credit facility | Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit facility maximum borrowing capacity	75,000,000
Swingline availability	$ 10,000,000
Percentage of fee on unused portion of the facility	0.25%
Revolving line of credit	$ 25,000,000
Incremental accordion feature	25,000,000
Available borrowing capacity of line of credit facility	$ 50,000,000
Secured credit facility | Revolving credit facility | Minimum
Line of Credit Facility [Line Items]
Interest at an annual rate equal to LIBOR plus a margin range	1.25%
Secured credit facility | Revolving credit facility | Maximum
Line of Credit Facility [Line Items]
Interest at an annual rate equal to LIBOR plus a margin range	1.75%

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019USD ($)		Nov. 02, 2019USD ($)
Leases [Abstract]
Weighted average remaining lease term	6 years		6 years
Weighted average discount rate	5.70%		5.70%
Lease Cost [Line Items]
Lease term	10 years		10 years
Lease Expiration Date			2029
Other Operating Expense [Member]
Lease Cost [Line Items]
Operating lease cost	$ 713		$ 2,173
Short-term lease cost	136		224
Lease cost	849	[1]	2,397	[1]
Cost of Sales [Member]
Lease Cost [Line Items]
Operating lease cost	13,855		40,917
Short-term lease cost	362		1,070
Variable lease cost	315		832
Lease cost	$ 14,532	[1],[2]	$ 42,819	[1],[2]
[1]	Total lease cost for the 13-week and 39-week periods ended November 2, 2019 excludes expense for variable non-lease components including common area maintenance and excludes costs that are not a component of the lease including real estate taxes, insurance, sales taxes and utilities for the Company’s leases.
[2]	Cost of sales includes all distribution center lease costs and store occupancy-related lease cost.

Leases Leases Maturity Liabilit

Leases Leases Maturity Liability (Details) - USD ($) $ in Thousands	Nov. 02, 2019		Feb. 02, 2019
Leases Maturity Liability [Abstract]
2019	$ 11,315		$ 67,354
2020	65,526		62,102
2021	56,759		53,164
2022	47,015		44,087
2023	38,416		35,606
After 2023	86,826		91,629
Total lease payments	305,857	[1]	$ 353,942
Less: Interest	(45,858)
Present value of lease liabilities	259,999
Legally binding minimum lease payments for leases signed but not yet commenced that were excluded from operating lease payments	$ 6,000
[1]	Operating lease payments exclude $6.0 million of legally binding minimum lease payments for leases signed but not yet commenced for three new store lease

Leases Leases Operating Cash Fl

Leases Leases Operating Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 02, 2019	Nov. 02, 2019
Leases Operating Cash Flows [Abstract]
Operating cash flows from operating leases	$ 16,048	$ 48,965

Impairments (Details)

Impairments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 02, 2019	May 04, 2019	Nov. 02, 2019	Nov. 03, 2018
Impairments [Abstract]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 331,000	$ 331,000	$ 0
Impairment of operating lease right-of-use assets	$ 41,000		525,000
Impairment of leasehold improvements, fixtures, and equipment	3,400,000		6,700,000
impairment net of tax	$ 2,500,000		$ 5,500,000

New Accounting Pronouncements_2

New Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	May 04, 2019	Nov. 02, 2019	Nov. 03, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Operating lease assets and liabilities recognized upon adoption of ASC 842		$ 295,240	$ 0
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 331	$ 331	$ 0