Kirkland's (KIRK) 10-Q 7 Sep 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 29, 2017	Aug. 24, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 29, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	KIRK
Entity Registrant Name	KIRKLAND'S, INC
Entity Central Index Key	1,056,285
Current Fiscal Year End Date	--02-03
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,011,169

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 29, 2017	Jan. 28, 2017	Jul. 30, 2016
Current assets:
Cash and cash equivalents	$ 48,694	$ 63,937	$ 29,581
Inventories, net	73,391	75,447	74,166
Prepaid expenses and other current assets	19,457	13,656	19,874
Total current assets	141,542	153,040	123,621
Property and equipment:
Equipment	20,091	19,525	19,107
Furniture and fixtures	78,432	78,492	75,533
Leasehold improvements	112,435	109,494	104,431
Computer software and hardware	56,532	52,740	50,238
Projects in progress	6,400	5,520	5,217
Property and equipment, gross	273,890	265,771	254,526
Accumulated depreciation	(162,667)	(154,901)	(142,369)
Property and equipment, net	111,223	110,870	112,157
Deferred income taxes	1,022	1,198	0
Other assets	6,026	5,038	3,184
Total assets	259,813	270,146	238,962
Current liabilities:
Accounts payable	29,166	32,890	29,067
Accounts payable to related party vendor	4,618	5,008	3,317
Income taxes payable	0	6,273	0
Accrued expenses	31,030	30,270	26,446
Total current liabilities	64,814	74,441	58,830
Deferred rent	53,384	52,656	52,185
Deferred income taxes	2,172	479	1,784
Other liabilities	9,674	8,757	7,610
Total liabilities	130,044	136,333	120,409
Shareholders’ equity:
Preferred stock, no par value, 10,000,000 shares authorized; no shares issued or outstanding at July 29, 2017, January 28, 2017, or July 30, 2016, respectively	0	0	0
Common stock, no par value; 100,000,000 shares authorized; 16,011,169; 15,906,635; and 15,890,898 shares issued and outstanding at July 29, 2017, January 28, 2017, and July 30, 2016, respectively	166,408	165,245	163,682
Accumulated deficit	(36,639)	(31,432)	(45,129)
Total shareholders’ equity	129,769	133,813	118,553
Total liabilities and shareholders’ equity	$ 259,813	$ 270,146	$ 238,962

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jul. 29, 2017	Jan. 28, 2017	Jul. 30, 2016
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)	16,011,169	15,906,635	15,890,898
Common stock, shares outstanding (in shares)	16,011,169	15,906,635	15,890,898

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Income Statement [Abstract]
Net sales	$ 131,683	$ 123,017	$ 264,524	$ 252,928
Cost of sales	75,684	71,981	151,295	143,650
Cost of sales related to merchandise purchased from related party vendor	11,004	8,763	20,610	17,468
Cost of sales (exclusive of depreciation as shown below)	86,688	80,744	171,905	161,118
Gross profit	44,995	42,273	92,619	91,810
Operating expenses:
Compensation and benefits	25,974	24,930	52,484	50,457
Other operating expenses	18,079	16,943	35,074	33,456
Depreciation	6,638	6,295	13,035	12,268
Total operating expenses	50,691	48,168	100,593	96,181
Operating loss	(5,696)	(5,895)	(7,974)	(4,371)
Interest expense	65	66	126	139
Other income, net	(133)	(52)	(219)	(111)
Loss before income taxes	(5,628)	(5,909)	(7,881)	(4,399)
Income tax benefit	(1,856)	(2,342)	(2,674)	(1,748)
Net loss	$ (3,772)	$ (3,567)	$ (5,207)	$ (2,651)
Loss per share:
Basic (usd per share)	$ (0.24)	$ (0.22)	$ (0.33)	$ (0.17)
Diluted (usd per share)	$ (0.24)	$ (0.22)	$ (0.33)	$ (0.17)
Weighted average shares outstanding:
Basic (in shares)	15,974	15,854	15,943	15,817
Diluted (in shares)	15,974	15,854	15,943	15,817

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Jul. 29, 2017 - USD ($) $ in Thousands	Total	Common Stock	Accumulated Deficit
Balance, beginning of period at Jan. 28, 2017	$ 133,813	$ 165,245	$ (31,432)
Balance, beginning of period (in shares) at Jan. 28, 2017	15,906,635	15,906,635
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock purchase plan	$ 172	$ 172
Issuance of common stock under employee stock purchase plan (in shares)		19,941
Exercise of stock options (in shares)		5,000
Restricted stock issued (in shares)		101,979
Net share settlement of stock options and restricted stock units	(193)	$ (193)
Net share settlement of stock options and restricted stock units (in shares)		(22,386)
Stock-based compensation expense	1,184	$ 1,184
Net loss	(5,207)		(5,207)
Balance, end of period at Jul. 29, 2017	$ 129,769	$ 166,408	$ (36,639)
Balance, end of period (in shares) at Jul. 29, 2017	16,011,169	16,011,169

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
Cash flows from operating activities:
Net loss	$ (5,207)	$ (2,651)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation of property and equipment	13,035	12,268
Amortization of deferred rent	(3,744)	(2,406)
Amortization of debt issue costs	27	58
Loss on disposal of property and equipment	120	151
Stock-based compensation expense	1,184	1,704
Deferred income taxes	1,869	321
Changes in assets and liabilities:
Inventories, net	2,056	(5,944)
Prepaid expenses and other current assets	(628)	(296)
Other noncurrent assets	(1,015)	(1,037)
Accounts payable	(3,402)	3,231
Accounts payable to related party vendor	(390)	1,059
Income taxes refundable	(11,446)	(9,235)
Accrued expenses and other current and noncurrent liabilities	6,149	7,980
Net cash (used in) provided by operating activities	(1,392)	5,203
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
Proceeds from sale of property and equipment	0	4
Capital expenditures	(13,830)	(19,633)
Net cash used in investing activities	(13,830)	(19,629)
Cash flows from financing activities:
Refinancing costs	0	(271)
Cash used in net share settlement of stock options and restricted stock	(193)	(263)
Employee stock purchases	172	189
Net cash used in financing activities	(21)	(345)
Cash and cash equivalents:
Net decrease	(15,243)	(14,771)
Beginning of the period	63,937	44,352
End of the period	48,694	29,581
Supplemental schedule of non-cash activities:
Non-cash accruals for purchases of property and equipment	$ 1,037	$ 1,977

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Kirkland’s, Inc. (the “Company”) is a specialty retailer of home décor and gifts in the United States operating 406 stores in 36 states as of July 29, 2017 , 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. All 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 31, 2017 . 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 26-week periods ended July 29, 2017 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. All references to a fiscal year refer to the fiscal year ending on the Saturday closest to January 31 of the following year. 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, asset retirement obligations, inventory reserves, self-insurance reserves, income tax liabilities, stock-based compensation, employee bonus accruals, gift card breakage, sales return reserves, customer loyalty program accruals and contingent liabilities. In the fourth quarter of fiscal 2016 , the Company concluded that it was appropriate to classify related party transactions separately in the consolidated financial statements. In fiscal 2016 , this information was provided in the notes to the consolidated financial statements. See “Note 6 - Related Party Transactions” for further discussion. In the first quarter of fiscal 2017, the Company adopted accounting guidance which affected the presentation in the statement of cash flows of excess tax benefits or deficiencies from the exercise of stock options as discussed in Note 7. The Company has elected to apply the amendments using a retrospective transition method for all periods presented and therefore the presentation of previously reported excess tax benefits on the unaudited condensed consolidated statements of cash flows has been changed to conform to the presentation used in the current period. As a result, approximately $78,000 of excess tax benefits related to share-based awards which were previously classified as cash flows from financing activities in the 26-week period ended July 30, 2016 have been reclassified as cash flows from operating activities. Certain other amounts in the fiscal 2016 operating activities section of the condensed consolidated statement of cash flows have been reclassified to conform to the fiscal 2017 presentation. These reclassifications had no effect on reported net income. For the 13-week and 26-week periods ended July 29, 2017, the Company recorded a $1.2 million one-time out-of-period adjustment of ancillary rent payments to prepaid expenses and other current assets from cost of sales.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 29, 2017
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 July 29, 2017 and July 30, 2016 , the Company recorded an income tax benefit of 33.0% and 39.6% of the loss before income taxes , respectively. For the 26-week periods ended July 29, 2017 and July 30, 2016 , the Company recorded an income tax benefit of 33.9% and 39.7% of the loss before income taxes , respectively. The decrease in the tax rates for both the 13-week and 26-week periods ended July 29, 2017 was primarily due to new accounting guidance related to share-based compensation, which requires the inclusion of excess tax benefits and deficiencies as a component of income taxes. The tax rate for the 26-week period ended July 29, 2017 also decreased due to additional tax credits.

Loss Per Share

Loss Per Share	6 Months Ended
	Jul. 29, 2017
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, which excludes non-vested restricted stock units. 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 1.5 million and 1.4 million shares for the 13-week periods ended July 29, 2017 and July 30, 2016 , respectively, and 1.5 million and 1.3 million shares for the 26-week periods ended July 29, 2017 and July 30, 2016 , respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 29, 2017
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 alleges 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. The Company denies the material allegations of the complaint and has filed a motion to dismiss. The Company believes that the case is without merit and intends to vigorously defend itself against the allegations. As a result, the Company does not believe that the case should have a material adverse effect on the Company’s consolidated financial condition, operating results or cash flows. 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	6 Months Ended
	Jul. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [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 quarter. The table below sets forth selected stock-based compensation information (in thousands, except share amounts) for the periods indicated: 13-week periods ended 26-week periods ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Total stock-based compensation expense $ 395 $ 809 $ 1,184 $ 1,704 Stock options granted 245,000 189,000 245,000 189,000 Restricted stock units granted 122,500 126,500 122,500 126,500

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 29, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company has an agreement with a related party vendor to purchase merchandise inventory. The vendor is considered a related party for financial reporting purposes because its principal owner is the spouse of one of the Company’s two Vice Presidents of Merchandising. The table below sets forth selected results to this vendor in dollars (in thousands) and percentages for the periods indicated: 13-Week Period Ended 26-Week Period Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Related Party Vendor: Purchases $ 12,389 $ 8,414 $ 24,078 $ 16,960 Purchases as a percent of total merchandise purchases 22.9 % 16.0 % 22.3 % 15.7 %

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jul. 29, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements New Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This update requires an entity that determines the cost of inventory by methods other than last-in, first-out and the retail inventory method to measure inventory at the lower of cost and net realizable value. The Company adopted this guidance in the first quarter of fiscal 2017 using a prospective application. The adoption of this guidance did not have a material impact on its condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-04, “Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products.” This update requires that liabilities related to the sale of prepaid stored-value products (gift cards) be adjusted periodically to reflect breakage. The Company adopted this guidance in the first quarter of fiscal 2017. The Company was recording gift card breakage prior to the adoption of this guidance; therefore, the adoption of this guidance did not have a material impact on its condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 addresses several aspects of the accounting for share-based compensation transactions including: (a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c) a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess tax impacts on the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2017, which did not have a material impact on its condensed consolidated financial statements and related disclosures. The amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement have been applied prospectively. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the awards are exercised or settled. The Company does not expect the impact to be material to the consolidated results of operations; however, such determination is subject to change based on facts and circumstances at the time when awards vest or settle. The Company accounts for forfeitures of share-based awards when they occur. The Company has applied the amendments related to the presentation of excess tax benefits on the statement of cash flows using a retrospective transition method, and as a result, excess tax benefits related to share-based awards which had been previously classified as cash flows from financing activities have been reclassified as cash flows from operating activities. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by U.S. GAAP and thereby reduces the current and potential future diversity in practice. The Company adopted this guidance in the first quarter of fiscal 2017. The adoption of this guidance did not impact the classification of any of the Company’s cash flow activity and therefore did not have a material impact on its condensed consolidated financial statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. ASU 2014-09 also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB approved a one-year deferral of ASU 2014-09. As a result of the deferral, the amendments in ASU 2014-09 will be effective for the Company at the beginning of its fiscal 2018 year. Companies that transition to this new standard may either retrospectively restate each prior reporting period or reflect the cumulative effect of initially applying the updates with an adjustment to retained earnings at the date of adoption. The Company plans to adopt this standard in the first quarter of fiscal 2018 using the modified retrospective method. The Company is still evaluating the impact the adoption of ASU 2014-09 will have on its condensed consolidated financial statements. In February 2016, the FASB issued 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 all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its condensed consolidated financial statements and is anticipating a material impact on the Company’s consolidated financial statements because the Company is party to a significant number of lease contracts.

Senior Credit Facility

Senior Credit Facility	6 Months Ended
	Jul. 29, 2017
Debt Disclosure [Abstract]
Senior Credit Facility	Senior Credit Facility During the period of August 19, 2011 through February 26, 2016 , the Company was party to an Amended and Restated Credit Agreement (the “2011 Credit Agreement”) with Bank of America, N.A. as administrative agent and collateral agent, and the lenders named therein (the “Lenders”). The 2011 Credit Agreement included a senior secured revolving credit facility of $50 million , a swingline availability of $5 million and a maturity date of August 2016. Borrowings under the 2011 Credit Agreement bore interest at an annual rate equal to LIBOR plus a margin ranging from 175 to 225 basis points with no LIBOR floor, and the fee paid to the Lenders on the unused portion of the credit facility was 37.5 basis points per annum. On February 26, 2016, the Company entered into a Joinder and First Amendment to Amended and Restated Credit Agreement (the “2016 Credit Agreement”). The 2016 Credit Agreement increased the Company’s senior secured revolving credit facility from $50 million to $75 million , increased the swingline availability from $5 million to $10 million , extended the maturity date from August 2016 to February 2021 and added a $25 million incremental accordion feature. Borrowings under the 2016 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 2011 and 2016 Credit Agreements 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 Agreements 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 (“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 Agreements. As of July 29, 2017 , the Company was in compliance with the covenants in the 2016 Credit Agreement, and there were no outstanding borrowings under the credit facility, with approximately $50.1 million available for borrowing.

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 29, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events 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. 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 program does not require the Company to repurchase any specific number of shares, and the Company may terminate the repurchase program at any time. As of the date of this filing, the Company has not yet repurchased any of its common stock pursuant to this authorization. On August 25, 2017, Hurricane Harvey made landfall on the Texas coast. The storm has resulted in extensive damage and flooding in Texas and Louisiana, especially in the coastal areas of these states. A full assessment of the extent of the damage is expected to be completed in the weeks ahead. Currently there is uncertainty as to the magnitude of the losses associated with this event and whether such losses would have a material effect on the Company’s condensed consolidated financial statements.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	6 Months Ended
	Jul. 29, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements Recently Adopted	New Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This update requires an entity that determines the cost of inventory by methods other than last-in, first-out and the retail inventory method to measure inventory at the lower of cost and net realizable value. The Company adopted this guidance in the first quarter of fiscal 2017 using a prospective application. The adoption of this guidance did not have a material impact on its condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-04, “Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products.” This update requires that liabilities related to the sale of prepaid stored-value products (gift cards) be adjusted periodically to reflect breakage. The Company adopted this guidance in the first quarter of fiscal 2017. The Company was recording gift card breakage prior to the adoption of this guidance; therefore, the adoption of this guidance did not have a material impact on its condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 addresses several aspects of the accounting for share-based compensation transactions including: (a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c) a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess tax impacts on the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2017, which did not have a material impact on its condensed consolidated financial statements and related disclosures. The amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement have been applied prospectively. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the awards are exercised or settled. The Company does not expect the impact to be material to the consolidated results of operations; however, such determination is subject to change based on facts and circumstances at the time when awards vest or settle. The Company accounts for forfeitures of share-based awards when they occur. The Company has applied the amendments related to the presentation of excess tax benefits on the statement of cash flows using a retrospective transition method, and as a result, excess tax benefits related to share-based awards which had been previously classified as cash flows from financing activities have been reclassified as cash flows from operating activities. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by U.S. GAAP and thereby reduces the current and potential future diversity in practice. The Company adopted this guidance in the first quarter of fiscal 2017. The adoption of this guidance did not impact the classification of any of the Company’s cash flow activity and therefore did not have a material impact on its condensed consolidated financial statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. ASU 2014-09 also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB approved a one-year deferral of ASU 2014-09. As a result of the deferral, the amendments in ASU 2014-09 will be effective for the Company at the beginning of its fiscal 2018 year. Companies that transition to this new standard may either retrospectively restate each prior reporting period or reflect the cumulative effect of initially applying the updates with an adjustment to retained earnings at the date of adoption. The Company plans to adopt this standard in the first quarter of fiscal 2018 using the modified retrospective method. The Company is still evaluating the impact the adoption of ASU 2014-09 will have on its condensed consolidated financial statements. In February 2016, the FASB issued 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 all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its condensed consolidated financial statements and is anticipating a material impact on the Company’s consolidated financial statements because the Company is party to a significant number of lease contracts.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [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 periods ended 26-week periods ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Total stock-based compensation expense $ 395 $ 809 $ 1,184 $ 1,704 Stock options granted 245,000 189,000 245,000 189,000 Restricted stock units granted 122,500 126,500 122,500 126,500

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jul. 29, 2017
Related Party Transactions [Abstract]
Schedule of Selected Results to Vendor in Dollars and Percentages	The table below sets forth selected results to this vendor in dollars (in thousands) and percentages for the periods indicated: 13-Week Period Ended 26-Week Period Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Related Party Vendor: Purchases $ 12,389 $ 8,414 $ 24,078 $ 16,960 Purchases as a percent of total merchandise purchases 22.9 % 16.0 % 22.3 % 15.7 %

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017USD ($)storestate	Jul. 30, 2016USD ($)	Jul. 29, 2017USD ($)storestate	Jul. 30, 2016USD ($)	Jan. 28, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of home decor and gifts store | store	406		406
Number of states | state	36		36
Reclassification to prepaid expense and other current assets	$ 19,457	$ 19,874	$ 19,457	$ 19,874	$ 13,656
Reclassification from cost of sales	(75,684)	$ (71,981)	(151,295)	(143,650)
Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification to prepaid expense and other current assets	1,200		1,200
Reclassification from cost of sales	$ 1,200		$ 1,200
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of cash flows from operating activities				78
Reclassification of cash flows from financing activities				$ 78

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Income Tax Disclosure [Abstract]
Annual effective tax rate, estimate	33.00%	39.60%	33.90%	39.70%

Loss Per Share (Details)

Loss Per Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Earnings Per Share [Abstract]
Stock options and restricted stock units not included in the computation of diluted earnings per share (in shares)	1.5	1.4	1.5	1.3

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 395	$ 809	$ 1,184	$ 1,704
Stock options granted (in shares)	245,000	189,000	245,000	189,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	122,500	126,500	122,500	126,500

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017USD ($)vice_president	Jul. 30, 2016USD ($)	Jul. 29, 2017USD ($)vice_president	Jul. 30, 2016USD ($)
Related party vendor
Related Party Transaction [Line Items]
Number of Vice Presidents of merchandising | vice_president	2		2
Merchandise purchases
Related Party Transaction [Line Items]
Purchases as a percent of total merchandise purchases	22.90%	16.00%	22.30%	15.70%
Merchandise purchases | Related party vendor
Related Party Transaction [Line Items]
Purchases | $	$ 12,389	$ 8,414	$ 24,078	$ 16,960

Senior Credit Facility (Details

Senior Credit Facility (Details) - USD ($)	Feb. 26, 2016	Feb. 26, 2016	Jul. 29, 2017
Revolving credit facility before amendment | Minimum
Line of Credit Facility [Line Items]
Swingline availability	$ 5,000,000	$ 5,000,000
Revolving credit facility | Maximum
Line of Credit Facility [Line Items]
Swingline availability	$ 10,000,000	10,000,000
Interest at an annual rate equal to LIBOR plus a margin range	0.25%
Incremental accordion feature	$ 25,000,000
Secured credit facility | Revolving credit facility before amendment
Line of Credit Facility [Line Items]
Line of credit facility maximum borrowing capacity	50,000,000	50,000,000
Secured credit facility | Revolving credit facility
Line of Credit Facility [Line Items]
Line of credit facility maximum borrowing capacity	$ 75,000,000	$ 75,000,000
Percentage of fee on unused portion of the facility		0.375%
Outstanding borrowings under the credit facility			$ 0
Available borrowing capacity of line of credit facility			$ 50,100,000
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%	1.75%
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%	2.25%

Subsequent Events (Details)

Subsequent Events (Details)	Aug. 22, 2017USD ($)
Subsequent Event
Subsequent Event [Line Items]
Stock repurchase plan providing for aggregate purchase of Company's outstanding common stock	$ 10,000,000