Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 01, 2014 | Nov. 28, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'New York & Company, Inc. | ' |
Entity Central Index Key | '0001211351 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 1-Nov-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 64,245,020 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Net sales | $210,314 | $217,626 | $655,973 | $668,159 |
Cost of goods sold, buying and occupancy costs | 153,037 | 156,638 | 474,574 | 480,835 |
Gross profit | 57,277 | 60,988 | 181,399 | 187,324 |
Selling, general and administrative expenses | 66,751 | 64,107 | 190,632 | 191,469 |
Operating loss | -9,474 | -3,119 | -9,233 | -4,145 |
Interest expense, net of interest income of $1, $1, $4, and $6, respectively | 112 | 96 | 281 | 275 |
Loss before income taxes | -9,586 | -3,215 | -9,514 | -4,420 |
Provision for income taxes | 150 | 219 | 651 | 129 |
Net loss | ($9,736) | ($3,434) | ($10,165) | ($4,549) |
Basic loss per share (in dollars per share) | ($0.15) | ($0.05) | ($0.16) | ($0.07) |
Diluted loss per share (in dollars per share) | ($0.15) | ($0.05) | ($0.16) | ($0.07) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic shares of common stock (in shares) | 62,911 | 62,491 | 62,789 | 62,247 |
Diluted shares of common stock (in shares) | 62,911 | 62,491 | 62,789 | 62,247 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Interest income | $1 | $1 | $4 | $6 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Comprehensive loss | ($9,703) | ($3,387) | ($10,065) | ($4,409) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $55,545 | $69,723 | $37,378 |
Restricted cash | 2,135 | ' | ' |
Accounts receivable | 10,018 | 7,026 | 10,198 |
Income taxes receivable | 99 | 99 | 96 |
Inventories, net | 124,785 | 83,479 | 123,100 |
Prepaid expenses | 20,915 | 21,141 | 19,781 |
Other current assets | 1,516 | 1,280 | 1,477 |
Total current assets | 215,013 | 182,748 | 192,030 |
Property and equipment, net | 82,833 | 83,553 | 85,249 |
Intangible assets | 14,879 | 14,879 | 14,879 |
Deferred income taxes | 6,675 | 6,501 | 6,729 |
Other assets | 1,510 | 1,072 | 1,118 |
Total assets | 320,910 | 288,753 | 300,005 |
Current liabilities: | ' | ' | ' |
Current portion-long-term debt | 1,000 | ' | ' |
Accounts payable | 109,566 | 75,874 | 97,900 |
Accrued expenses | 41,783 | 46,880 | 41,631 |
Income taxes payable | 710 | 1,075 | 980 |
Deferred income taxes | 6,675 | 6,501 | 6,729 |
Total current liabilities | 159,734 | 130,330 | 147,240 |
Long-term debt, net of current portion | 14,000 | ' | ' |
Deferred rent | 35,953 | 39,925 | 41,851 |
Other liabilities | 4,808 | 5,283 | 6,304 |
Total liabilities | 214,495 | 175,538 | 195,395 |
Stockholders' equity: | ' | ' | ' |
Common stock, voting, par value $0.001; 300,000 shares authorized; 65,022, 64,467 and 64,695 shares issued and 64,022, 63,467, and 63,695 shares outstanding at November 1, 2014, February 1, 2014, and November 2, 2013, respectively | 65 | 64 | 65 |
Additional paid-in capital | 173,770 | 170,506 | 169,668 |
Retained deficit | -62,392 | -52,227 | -59,170 |
Accumulated other comprehensive loss | -1,631 | -1,731 | -2,556 |
Treasury stock at cost; 1,000 shares at November 1, 2014, February 1, 2014 and November 2, 2013 | -3,397 | -3,397 | -3,397 |
Total stockholders' equity | 106,415 | 113,215 | 104,610 |
Total liabilities and stockholders' equity | $320,910 | $288,753 | $300,005 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, except Per Share data, unless otherwise specified | |||
Condensed Consolidated Balance Sheets | ' | ' | ' |
Common stock, voting, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Common stock, voting, shares authorized | 300,000 | 300,000 | 300,000 |
Common stock, voting, shares issued | 65,022 | 64,467 | 64,695 |
Common stock, voting, shares outstanding | 64,022 | 63,467 | 63,695 |
Treasury stock at cost, shares | 1,000 | 1,000 | 1,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 |
Operating activities | ' | ' |
Net loss | ($10,165) | ($4,549) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 20,835 | 25,047 |
Loss from impairment charges | 911 | 278 |
Amortization of deferred financing costs | 92 | 89 |
Share-based compensation expense | 3,210 | 2,788 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | -2,135 | ' |
Accounts receivable | -2,992 | -1,982 |
Income taxes receivable | ' | 392 |
Inventories, net | -41,306 | -42,902 |
Prepaid expenses | 226 | 1,686 |
Accounts payable | 33,692 | 23,490 |
Accrued expenses | -5,097 | -7,416 |
Income taxes payable | -365 | -9 |
Deferred rent | -3,972 | -6,983 |
Other assets and liabilities | -1,207 | -1,379 |
Net cash used in operating activities | -8,273 | -11,450 |
Investing activities | ' | ' |
Capital expenditures | -21,026 | -12,614 |
Insurance recoveries | 254 | ' |
Net cash used in investing activities | -20,772 | -12,614 |
Financing activities | ' | ' |
Proceeds from issuance of long-term debt | 15,000 | ' |
Payment of financing costs | -188 | ' |
Proceeds from exercise of stock options | 299 | 509 |
Shares withheld for payment of employee payroll taxes | -244 | ' |
Net cash provided by financing activities | 14,867 | 509 |
Net decrease in cash and cash equivalents | -14,178 | -23,555 |
Cash and cash equivalents at beginning of period | 69,723 | 60,933 |
Cash and cash equivalents at end of period | $55,545 | $37,378 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Nov. 01, 2014 | |
Organization and Basis of Presentation | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
New York & Company, Inc. (together with its subsidiaries, collectively the "Company") is a specialty retailer of women's fashion apparel and accessories, and the modern wear-to-work destination for women, providing perfectly fitting pants and NY Style that is feminine, polished, on-trend and versatile—all at compelling values. The Company's proprietary branded New York & Company® merchandise is sold exclusively through its national network of retail stores and online at www.nyandcompany.com. The target customers for the Company's merchandise are women between the ages of 25 and 45. As of November 1, 2014, the Company operated 512 stores in 43 states. | |
The condensed consolidated financial statements as of November 1, 2014 and November 2, 2013 and for the 13 weeks ("three months") and 39 weeks ("nine months") ended November 1, 2014 and November 2, 2013 are unaudited and are presented pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the 52-week fiscal year ended February 1, 2014 ("fiscal year 2013"), which were filed with the Company's Annual Report on Form 10-K with the SEC on April 15, 2014. The 52-week fiscal year ending January 31, 2015 is referred to herein as "fiscal year 2014." The Company's fiscal year is a 52- or 53-week year that ends on the Saturday closest to January 31. | |
In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly the financial condition, results of operations and cash flows for the interim periods. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Certain reclassifications have been made to prior fiscal year amounts and balances to conform to the presentation in the current fiscal year. These reclassifications did not impact consolidated operating income or net income in the prior year period presented. | |
Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Nov. 01, 2014 | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | ' |
2. New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which supersedes the revenue recognition requirements in FASB Accounting Standards Codification™ ("ASC") Topic 605, "Revenue Recognition" and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early application not permitted. ASU 2014-09 may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is evaluating the new standard and its impact on the Company's financial position and results of operations. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Nov. 01, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
3. Earnings Per Share | ||||||||||||||
Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Except when the effect would be anti-dilutive, diluted loss per share is calculated based on the weighted average number of outstanding shares of common stock plus the dilutive effect of share-based awards calculated under the treasury stock method. A reconciliation between basic and diluted loss per share is as follows: | ||||||||||||||
Three months | Three months | Nine months | Nine months | |||||||||||
ended | ended | ended | ended | |||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||
Net loss | $ | (9,736 | ) | $ | (3,434 | ) | $ | (10,165 | ) | $ | (4,549 | ) | ||
Basic loss per share | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 | ||||||||||
Basic loss per share | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.07 | ) | ||
Diluted loss per share | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 | ||||||||||
Plus impact of share-based awards | — | — | — | — | ||||||||||
Diluted shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 | ||||||||||
Diluted loss per share | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.07 | ) | ||
The calculation of diluted loss per share for the three and nine months ended November 1, 2014 and November 2, 2013 excludes the share-based awards listed in the following table due to their anti-dilutive effect as determined under the treasury stock method: | ||||||||||||||
Three months | Three months | Nine months | Nine months | |||||||||||
ended | ended | ended | ended | |||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||||
Stock options | 539 | 330 | 535 | 492 | ||||||||||
Stock appreciation rights(1) | 5,041 | 2,005 | 3,671 | 1,983 | ||||||||||
Restricted stock and units | 932 | 436 | 650 | 549 | ||||||||||
Total anti-dilutive shares | 6,512 | 2,771 | 4,856 | 3,024 | ||||||||||
-1 | Each stock appreciation right ("SAR") referred to above represents the right to receive a payment measured by the increase in the fair market value of one share of common stock from the date of grant of the SAR to the date of exercise of the SAR. Upon exercise the SARs will be settled in stock. | |||||||||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended |
Nov. 01, 2014 | |
Share-Based Compensation | ' |
Share-Based Compensation | ' |
4. Share-Based Compensation | |
The Company accounts for all share-based payments in accordance with FASB ASC Topic 718, "Compensation—Stock Compensation" ("ASC 718"). ASC 718 requires that the cost resulting from all share-based payment transactions be treated as compensation and recognized in the consolidated financial statements. | |
The Company recorded share-based compensation expense in the amount of $1.2 million and $1.1 million for the three months ended November 1, 2014 and November 2, 2013, respectively, and $3.2 million and $2.8 million for the nine months ended November 1, 2014 and November 2, 2013, respectively. | |
During the nine months ended November 1, 2014, 115,806 shares of common stock were issued upon exercise of previously issued stock options and SARs. | |
Pension_Plan
Pension Plan | 9 Months Ended | |||||||||||||
Nov. 01, 2014 | ||||||||||||||
Pension Plan | ' | |||||||||||||
Pension Plan | ' | |||||||||||||
5. Pension Plan | ||||||||||||||
The Company sponsors a single employer defined benefit pension plan (the "plan") covering substantially all union employees. Employees covered by collective bargaining agreements are primarily non-management store associates, representing approximately 7% of the Company's workforce. The collective bargaining agreement with Local 1102 of the Retail, Wholesale and Department Store Union ("RWDSU") AFL-CIO ("Local 1102") is currently being renegotiated in accordance with the terms of the agreement. The Company believes its relationship with its employees is good. | ||||||||||||||
The plan provides retirement benefits for union employees who have attained the age of 21 and completed 1,000 or more hours of service in any calendar year following their date of employment. The plan provides benefits based on length of service. The Company's funding policy for the pension plan is to contribute annually the amount necessary to provide for benefits based on accrued service and to contribute at least the minimum required by the Employee Retirement Income Security Act rules. Net periodic benefit cost includes the following components: | ||||||||||||||
Three months | Three months | Nine months | Nine months | |||||||||||
ended | ended | ended | ended | |||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||||
Service cost | $ | 88 | $ | 87 | $ | 263 | $ | 260 | ||||||
Interest cost | 93 | 90 | 277 | 270 | ||||||||||
Expected return on plan assets | (139 | ) | (130 | ) | (414 | ) | (388 | ) | ||||||
Amortization of unrecognized losses | 37 | 50 | 112 | 151 | ||||||||||
Amortization of prior service credit | (4 | ) | (4 | ) | (12 | ) | (12 | ) | ||||||
Net periodic benefit cost | $ | 75 | $ | 93 | $ | 226 | $ | 281 | ||||||
In accordance with FASB ASC Topic 220, "Comprehensive Income," comprehensive loss reported on the Company's condensed consolidated statements of comprehensive loss includes net loss and other comprehensive income (loss). For the Company, other comprehensive income (loss) consists of the reclassification of unrecognized losses and prior service credits related to the Company's minimum pension liability. The total amount of unrecognized losses and prior service credits reclassified out of accumulated other comprehensive loss on the condensed consolidated balance sheets and into selling, general, and administrative expenses on the Company's condensed consolidated statements of operations for the three months ended November 1, 2014 and November 2, 2013 was $33,000 and $46,000, respectively, and for the nine months ended November 1, 2014 and November 2, 2013 was $100,000 and $139,000, respectively. As of February 1, 2014, the Company reported a minimum pension liability of $2.0 million due to the underfunded status of the plan. The minimum pension liability is reported in other liabilities on the condensed consolidated balance sheets. | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 01, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
6. Income Taxes | |
The Company files U.S. federal income tax returns and state and local income tax returns in various jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for tax years through 2010. With limited exception, the Company is no longer subject to state and local income tax examinations for tax years through 2009. | |
At February 1, 2014, the Company reported a total liability for unrecognized tax benefits of $3.9 million, including interest and penalties, all of which would impact the Company's effective tax rate if recognized. The Company does not anticipate any significant increases or decreases to the balance of unrecognized tax benefits during the next 12 months. | |
The Company continues to maintain a valuation allowance against its deferred tax assets until the Company believes it is more likely than not that these assets will be realized in the future. If sufficient positive evidence arises in the future indicating that all or a portion of the deferred tax assets meet the more-likely-than-not standard under ASC Topic 740, "Income Taxes," the valuation allowance would be reversed accordingly in the period that such determination is made. As of November 1, 2014, the Company's valuation allowance against its deferred tax assets was $60.8 million. | |
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facilities | 9 Months Ended |
Nov. 01, 2014 | |
Long-Term Debt and Credit Facilities | ' |
Long-Term Debt and Credit Facilities | ' |
7. Long-Term Debt and Credit Facilities | |
On October 24, 2014, Lerner New York, Inc., Lernco, Inc. and Lerner New York Outlet, Inc., wholly-owned indirect subsidiaries of New York & Company, Inc., entered into a Fourth Amended and Restated Loan and Security Agreement (the "Loan Agreement") with Wells Fargo Bank, National Association, as Agent and Term Loan Agent and the lenders party thereto. The obligations under the Loan Agreement are guaranteed by New York & Company, Inc. and its other subsidiaries. The Loan Agreement amended and restated the Third Amended and Restated Loan and Security Agreement (the "Previous Agreement"), dated August 10, 2011, among Lerner New York, Inc., Lernco, Inc., and Lerner New York Outlet, Inc. as borrowers, together with Wells Fargo Bank, National Association, as Agent and the lenders party thereto, as amended. The Previous Agreement was scheduled to mature on August 10, 2016. | |
The amendments to the Previous Agreement provide for, but are not limited to: (i) an extension of the term of the revolving credit facility to October 24, 2019; (ii) a reduction of interest rates related to the revolving credit facility; (iii) a reduction of certain fees related to the revolving credit facility; and (iv) a $15 million, 5-year term loan, bearing interest at the Adjusted Eurodollar Rate plus 4.50% (the "Term Loan"). The Company plans to use the proceeds from the Term Loan to pay for costs associated with the relocation and build-out of its new corporate headquarters at 330 West 34th Street, New York, New York. | |
The revolving borrowing availability under the revolving credit facility remains unchanged, providing the Company with up to $100 million of credit, consisting of a $75 million revolving credit facility (which includes a sub-facility for issuance of letters of credit up to $45 million) with a fully committed accordion option that allows the Company to increase the revolving credit facility up to $100 million or decrease it to a minimum of $60 million, subject to certain restrictions. The maximum borrowing availability under the Company's revolving credit facility also remains unchanged and is determined by a monthly borrowing base calculation based on applying specified advance rates against inventory and certain other eligible assets. Under the Loan Agreement, the Company continues to be subject to a Minimum Excess Availability covenant of $7.5 million. The Loan Agreement contains other covenants and conditions, including restrictions on the Company's ability to pay dividends on its common stock, prepay the Term Loan, incur additional indebtedness and to prepay, redeem, defease or purchase other debt. Subject to such restrictions, the Company may incur more debt for working capital, capital expenditures, stock repurchases, acquisitions and for other purposes. | |
Under the terms of the Loan Agreement, the interest rates applicable to Revolving Loans have been reduced by 0.25% and Revolving Loans now bear interest, at the Company's option, either at a floating rate equal to the Adjusted Eurodollar Rate plus a margin of between 1.50% and 1.75% per year for Eurodollar Rate Loans or a floating rate equal to the Prime Rate plus a margin of between 0.50% and 0.75% per year for Prime Rate Loans, depending upon the Company's Average Compliance Excess Availability. The Company pays to the Lenders under the revolving credit facility a monthly fee on outstanding commercial letters of credit at a rate of between 0.75% and 0.875% per year and on standby letters of credit at a rate of between 1.50% and 1.75% per year, depending upon the Company's Average Compliance Excess Availability, plus a monthly fee on a proportion of the unused commitments under the revolving credit facility at a rate of 0.25% per year. | |
The maximum borrowing availability under the Company's revolving credit facility is determined by a monthly borrowing base calculation based on applying specified advance rates against inventory and certain other eligible assets. As of November 1, 2014, the Company had availability under its revolving credit facility of $48.8 million, net of letters of credit outstanding of $20.6 million, as compared to availability of $37.1 million, net of letters of credit outstanding of $11.5 million, as of February 1, 2014, and availability of $59.0 million, net of letters of credit outstanding of $12.8 million, as of November 2, 2013. | |
The lender has been granted a pledge of the common stock of Lerner New York Holding, Inc. and certain of its subsidiaries, and a first priority security interest in substantially all other tangible and intangible assets of New York & Company, Inc. and its subsidiaries, as collateral for the Company's obligations under the Loan Agreement. In addition, New York & Company, Inc. and certain of its subsidiaries have fully and unconditionally guaranteed the obligations under the Loan Agreement, and such guarantees are joint and several. | |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||
Nov. 01, 2014 | |||
Fair Value Measurements | ' | ||
Fair Value Measurements | ' | ||
8. Fair Value Measurements | |||
FASB ASC Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820"), establishes a common definition for fair value to be applied to GAAP guidance requiring the use of fair value, establishes a framework for measuring fair value, and expands the disclosure about such fair value measurements. ASC 820 establishes a three-level fair value hierarchy that requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows: | |||
Level 1: | Observable inputs such as quoted prices in active markets; | ||
Level 2: | Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||
Level 3: | Unobservable inputs in which there is little or no market data and require the reporting entity to develop its own assumptions. | ||
The Company's financial instruments consist of cash and cash equivalents, restricted cash, short-term trade receivables, accounts payable and long-term debt. The carrying values on the balance sheet for cash and cash equivalents, restricted cash, short-term trade receivables and accounts payable approximate their fair values due to the short-term maturities of such items. At November 1, 2014, the carrying amount of the Company's long-term debt approximated its fair value due to the variable interest rate it carried, and as such it is classified within level 2 of the fair value hierarchy. | |||
The Company classifies long-lived store assets within level 3 of the fair value hierarchy. The Company evaluates the impairment of long-lived assets in accordance with ASC Topic 360, "Property, Plant and Equipment" ("ASC 360"). Long-lived assets are evaluated for recoverability whenever events or changes in circumstances indicate that an asset may have been impaired. The evaluation is performed at the individual store level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. In evaluating long-lived assets for recoverability, the Company estimates the future cash flows at the individual store level that are expected to result from the use of each store's assets based on historical experience, knowledge and market data assumptions. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the long-lived assets, an impairment loss, equal to the excess of the carrying amount over the fair value of the assets, is recognized. During the first quarter and third quarter of fiscal year 2014, the Company's evaluations resulted in non-cash charges of $0.4 million and $0.5 million, respectively, related to the impairment of store assets. During the second quarter of fiscal year 2013, the Company's evaluations resulted in non-cash charges of $0.3 million related to the impairment of store assets. These impairment charges are included in "Selling, general and administrative expenses" on the Company's condensed consolidated statements of operations. | |||
Other_Events
Other Events | 9 Months Ended |
Nov. 01, 2014 | |
Other Events | ' |
Other Events | ' |
9. Other Events | |
On February 25, 2014, the Company entered into a lease for 182,709 square feet of office space at 330 West 34th Street, New York, New York, pursuant to which, the Company plans to move its corporate headquarters to by January 1, 2015 upon expiration of its existing lease at 450 West 33rd Street, New York, New York. The lease for the new corporate headquarters expires in 2030. In connection with the signing of the new lease agreement, the Company issued an $8.0 million standby letter of credit to the lessor, which the Company may reduce by $2.0 million annually from 2017 through 2019. As of November 1, 2014, the Company had $2.1 million in restricted cash related to the new office space, which it expects to release to the lessor over the next six months. During fiscal year 2014, the Company expects capital expenditures related to the new office space to be approximately $9.5 million. In addition, on October 3, 2014, the Company entered into a financing arrangement to purchase up to $3.5 million of office furniture for the new corporate headquarters, which the Company expects will be accounted for as a capital lease obligation when the furniture is purchased in the fourth quarter of fiscal year 2014. Total cash rental obligations to be paid over the 15-year life of the lease for the corporate office space and furniture are approximately $160.0 million. | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Nov. 01, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of reconciliation between basic and diluted (loss) earnings per share | ' | |||||||||||||
Three months | Three months | Nine months | Nine months | |||||||||||
ended | ended | ended | ended | |||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||
Net loss | $ | (9,736 | ) | $ | (3,434 | ) | $ | (10,165 | ) | $ | (4,549 | ) | ||
Basic loss per share | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 | ||||||||||
Basic loss per share | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.07 | ) | ||
Diluted loss per share | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 | ||||||||||
Plus impact of share-based awards | — | — | — | — | ||||||||||
Diluted shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 | ||||||||||
Diluted loss per share | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.07 | ) | ||
Schedule listing the share-based awards excluded from the computation of diluted (loss) earnings per share due to their anti-dilutive effect | ' | |||||||||||||
Three months | Three months | Nine months | Nine months | |||||||||||
ended | ended | ended | ended | |||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||||
Stock options | 539 | 330 | 535 | 492 | ||||||||||
Stock appreciation rights(1) | 5,041 | 2,005 | 3,671 | 1,983 | ||||||||||
Restricted stock and units | 932 | 436 | 650 | 549 | ||||||||||
Total anti-dilutive shares | 6,512 | 2,771 | 4,856 | 3,024 | ||||||||||
-1 | Each stock appreciation right ("SAR") referred to above represents the right to receive a payment measured by the increase in the fair market value of one share of common stock from the date of grant of the SAR to the date of exercise of the SAR. Upon exercise the SARs will be settled in stock. | |||||||||||||
Pension_Plan_Tables
Pension Plan (Tables) | 9 Months Ended | |||||||||||||
Nov. 01, 2014 | ||||||||||||||
Pension Plan | ' | |||||||||||||
Schedule of net periodic benefit cost | ' | |||||||||||||
Three months | Three months | Nine months | Nine months | |||||||||||
ended | ended | ended | ended | |||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||||
Service cost | $ | 88 | $ | 87 | $ | 263 | $ | 260 | ||||||
Interest cost | 93 | 90 | 277 | 270 | ||||||||||
Expected return on plan assets | (139 | ) | (130 | ) | (414 | ) | (388 | ) | ||||||
Amortization of unrecognized losses | 37 | 50 | 112 | 151 | ||||||||||
Amortization of prior service credit | (4 | ) | (4 | ) | (12 | ) | (12 | ) | ||||||
Net periodic benefit cost | $ | 75 | $ | 93 | $ | 226 | $ | 281 | ||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | |
item | item | |||||
Organization and basis of presentation | ' | ' | ' | ' | ' | ' |
Number of stores operated | 512 | ' | 512 | ' | ' | ' |
Number of states in which entity operated the stores | 43 | ' | 43 | ' | ' | ' |
Length of period | '91 days | '91 days | '273 days | '273 days | ' | ' |
Length of fiscal year | ' | ' | ' | ' | '364 days | '364 days |
Minimum | ' | ' | ' | ' | ' | ' |
Organization and basis of presentation | ' | ' | ' | ' | ' | ' |
Age of women targeted as customers | ' | ' | 25 | ' | ' | ' |
Length of fiscal year | ' | ' | '364 days | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' |
Organization and basis of presentation | ' | ' | ' | ' | ' | ' |
Age of women targeted as customers | ' | ' | 45 | ' | ' | ' |
Length of fiscal year | ' | ' | '371 days | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Earnings Per Share | ' | ' | ' | ' |
Net loss | ($9,736) | ($3,434) | ($10,165) | ($4,549) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic shares of common stock (in shares) | 62,911 | 62,491 | 62,789 | 62,247 |
Basic (loss) earnings per share (in dollars per share) | ($0.15) | ($0.05) | ($0.16) | ($0.07) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic shares of common stock (in shares) | 62,911 | 62,491 | 62,789 | 62,247 |
Diluted shares of common stock | 62,911 | 62,491 | 62,789 | 62,247 |
Diluted (loss) earnings per share (in dollars per share) | ($0.15) | ($0.05) | ($0.16) | ($0.07) |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | |
Shares excluded from calculation of diluted earnings per share | ' | ' | ' | ' |
Anti-dilutive shares | 6,512,000 | 2,771,000 | 4,856,000 | 3,024,000 |
Stock options | ' | ' | ' | ' |
Shares excluded from calculation of diluted earnings per share | ' | ' | ' | ' |
Anti-dilutive shares | 539,000 | 330,000 | 535,000 | 492,000 |
Stock appreciation rights | ' | ' | ' | ' |
Shares excluded from calculation of diluted earnings per share | ' | ' | ' | ' |
Anti-dilutive shares | 5,041,000 | 2,005,000 | 3,671,000 | 1,983,000 |
Number of shares of common stock for which increase in fair market value considered as basis for measurement of payment | ' | ' | 1 | ' |
Restricted stock and units | ' | ' | ' | ' |
Shares excluded from calculation of diluted earnings per share | ' | ' | ' | ' |
Anti-dilutive shares | 932,000 | 436,000 | 650,000 | 549,000 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Share-Based Compensation | ' | ' | ' | ' |
Share-based compensation expense | $1.20 | $1.10 | $3.20 | $2.80 |
Number of shares of common stock issued upon exercise of stock options and SARs | ' | ' | 115,806 | ' |
Pension_Plan_Details
Pension Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 | |
item | |||||
Pension Plan | ' | ' | ' | ' | ' |
Employees covered by collective bargaining agreements (as a percent) | ' | ' | 7.00% | ' | ' |
Age of employees, after attainment of which plan provides retirement benefits | ' | ' | 21 | ' | ' |
Minimum hours of service to be completed for plan to provide retirement benefits | ' | ' | '1000 hours | ' | ' |
Net periodic benefit cost | ' | ' | ' | ' | ' |
Service cost | $88,000 | $87,000 | $263,000 | $260,000 | ' |
Interest cost | 93,000 | 90,000 | 277,000 | 270,000 | ' |
Expected return on plan assets | -139,000 | -130,000 | -414,000 | -388,000 | ' |
Amortization of unrecognized losses | 37,000 | 50,000 | 112,000 | 151,000 | ' |
Amortization of prior service credit | -4,000 | -4,000 | -12,000 | -12,000 | ' |
Net periodic benefit cost | 75,000 | 93,000 | 226,000 | 281,000 | ' |
Amounts reclassified from accumulated other comprehensive loss | 33,000 | 46,000 | 100,000 | 139,000 | ' |
Minimum pension liability due to the underfunded status of the plan | ' | ' | ' | ' | $2,000,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Income tax expense (benefit) | ' | ' |
Unrecognized tax benefits, which would impact the company's effective tax rate if recognized | ' | $3.90 |
Deferred tax assets, valuation allowance | $60.80 | ' |
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facilities (Details) (USD $) | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Oct. 24, 2014 | Oct. 24, 2014 | Oct. 24, 2014 |
In Millions, unless otherwise specified | Line of credit | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Commercial letters of credit | Commercial letters of credit | Commercial letters of credit | Stand by letters of credit | Stand by letters of credit | Term loan | Term loan | Term loan | |
Minimum | Maximum | Eurodollar rate | Eurodollar rate | Eurodollar rate | Prime rate | Prime rate | Prime rate | Minimum | Maximum | Minimum | Maximum | Eurodollar rate | |||||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||
Long-term debt and credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | $100 | $75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45 | ' | ' | ' | ' | ' | ' | ' |
Accordion option to increase or decrease commitments under the credit facility | ' | ' | ' | ' | ' | 60 | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum excess availability covenant | 7.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar Rate | ' | ' | 'Prime Rate | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar Rate | ' | ' |
Interest rate reduction (as a percent) | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.75% | ' | 0.50% | 0.75% | ' | ' | ' | ' | ' | ' | ' | 4.50% |
Monthly commitment fee letters of credit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 0.88% | 1.50% | 1.75% | ' | ' | ' |
Monthly commitment fee on the unused portion of credit facility (as a percent) | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing availability | ' | ' | 48.8 | 37.1 | 59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | 20.6 | 11.5 | 12.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | ' |
Length of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 01, 2014 | 3-May-14 | Aug. 03, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Fair Value Measurements | ' | ' | ' | ' | ' |
Non-cash impairment charge | $500 | $400 | $300 | $911 | $278 |
Other_Events_Details
Other Events (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 01, 2014 | Nov. 02, 2013 | Oct. 03, 2014 | Nov. 01, 2014 | Feb. 25, 2014 | Nov. 01, 2014 | Jan. 31, 2015 | Feb. 25, 2014 | |
Forecast | Office space at 330 West 34th Street, New York | Office space at 330 West 34th Street, New York | Office space at 330 West 34th Street, New York | Office space at 330 West 34th Street, New York | Office space at 330 West 34th Street, New York | |||
sqft | Forecast | Forecast | Stand by letters of credit | |||||
Other Events | ' | ' | ' | ' | ' | ' | ' | ' |
Area of office space (in square feet) | ' | ' | ' | ' | 182,709 | ' | ' | ' |
Amount of term loan | ' | ' | ' | ' | ' | ' | ' | $8,000,000 |
Annual reduction of letter of credit from 2017 to 2019 | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Office furniture additions | ' | ' | 3,500,000 | ' | ' | ' | ' | ' |
Restricted cash available for new office space | 2,135,000 | ' | ' | ' | ' | 2,100,000 | ' | ' |
Period over which restricted cash available for new office space | ' | ' | ' | ' | ' | '6 months | ' | ' |
Capital expenditures | 21,026,000 | 12,614,000 | ' | ' | ' | ' | 9,500,000 | ' |
Length of lease | ' | ' | ' | '15 years | ' | ' | ' | ' |
Cash lease rental obligation | ' | ' | ' | ' | ' | $160,000,000 | ' | ' |