Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 01, 2015 | Aug. 28, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | New York & Company, Inc. | |
Entity Central Index Key | 1,211,351 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 1, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 64,483,676 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Condensed Consolidated Statements of Operations | ||||
Net sales | $ 235,696 | $ 226,066 | $ 459,086 | $ 445,659 |
Cost of goods sold, buying and occupancy costs | 168,563 | 164,148 | 327,706 | 321,537 |
Gross profit | 67,133 | 61,918 | 131,380 | 124,122 |
Selling, general and administrative expenses | 66,698 | 61,738 | 135,190 | 123,881 |
Operating income (loss) | 435 | 180 | (3,810) | 241 |
Interest expense, net of interest income of $7, $2, $8 and $2, respectively | 309 | 85 | 598 | 169 |
Income (loss) before income taxes | 126 | 95 | (4,408) | 72 |
Provision for income taxes | 272 | 242 | 409 | 501 |
Net loss | $ (146) | $ (147) | $ (4,817) | $ (429) |
Basic loss per share | $ 0 | $ 0 | $ (0.08) | $ (0.01) |
Diluted loss per share | $ 0 | $ 0 | $ (0.08) | $ (0.01) |
Weighted average shares outstanding: | ||||
Basic shares of common stock (in shares) | 63,174 | 62,819 | 63,079 | 62,728 |
Diluted shares of common stock (in shares) | 63,174 | 62,819 | 63,079 | 62,728 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Condensed Consolidated Statements of Operations | ||||
Interest income | $ 7 | $ 2 | $ 8 | $ 2 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Condensed Consolidated Statements of Comprehensive Loss | ||||
Comprehensive loss | $ (60) | $ (126) | $ (4,669) | $ (362) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Current assets: | |||
Cash and cash equivalents | $ 60,122 | $ 69,293 | $ 63,166 |
Restricted cash | 1,509 | 1,509 | 1,509 |
Accounts receivable | 12,682 | 7,406 | 10,688 |
Income taxes receivable | 73 | 99 | 99 |
Inventories, net | 85,896 | 93,791 | 84,896 |
Prepaid expenses | 19,559 | 20,581 | 20,913 |
Other current assets | 1,320 | 1,121 | 1,223 |
Total current assets | 181,161 | 193,800 | 182,494 |
Property and equipment, net | 86,882 | 84,374 | 79,834 |
Intangible assets | 14,879 | 14,879 | 14,879 |
Deferred income taxes | 6,421 | 6,660 | 6,741 |
Other assets | 2,204 | 2,167 | 995 |
Total assets | 291,547 | 301,880 | 284,943 |
Current liabilities: | |||
Current portion-long-term debt | 1,000 | 1,000 | |
Accounts payable | 81,453 | 86,481 | 82,173 |
Accrued expenses | 48,750 | 52,418 | 38,402 |
Income taxes payable | 564 | 710 | 747 |
Deferred income taxes | 6,421 | 6,660 | 6,741 |
Total current liabilities | 138,188 | 147,269 | 128,063 |
Long-term debt, net of current portion | 13,250 | 13,750 | |
Deferred rent | 36,836 | 35,169 | 36,803 |
Other liabilities | 7,034 | 6,333 | 5,032 |
Total liabilities | 195,308 | 202,521 | 169,898 |
Stockholders' equity: | |||
Common stock, voting, par value $0.001; 300,000 shares authorized; 65,356, 65,236, and 64,789 shares issued and 64,356, 64,236, and 63,789 shares outstanding at August 1, 2015, January 31, 2015, and August 2, 2014, respectively | 65 | 65 | 65 |
Additional paid-in capital | 176,158 | 174,609 | 172,697 |
Retained deficit | (73,929) | (69,112) | (52,656) |
Accumulated other comprehensive loss | (2,658) | (2,806) | (1,664) |
Treasury stock at cost; 1,000 shares at August 1, 2015, January 31, 2015 and August 2, 2014 | (3,397) | (3,397) | (3,397) |
Total stockholders' equity | 96,239 | 99,359 | 115,045 |
Total liabilities and stockholders' equity | $ 291,547 | $ 301,880 | $ 284,943 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Condensed Consolidated Balance Sheets | |||
Common stock, voting, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, voting, shares authorized | 300,000 | 300,000 | 300,000 |
Common stock, voting, shares issued | 65,356 | 65,236 | 64,789 |
Common stock, voting, shares outstanding | 64,356 | 64,236 | 63,789 |
Treasury stock at cost, shares | 1,000 | 1,000 | 1,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | |
Operating activities | ||
Net loss | $ (4,817) | $ (429) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 12,333 | 14,118 |
Loss from impairment charges | 232 | 358 |
Amortization of deferred financing costs | 92 | 60 |
Share-based compensation expense | 1,782 | 2,011 |
Changes in operating assets and liabilities: | ||
Restricted cash | (1,509) | |
Accounts receivable | (5,276) | (3,662) |
Income taxes receivable | 26 | |
Inventories, net | 7,895 | (1,417) |
Prepaid expenses | 1,022 | 228 |
Accounts payable | (5,028) | 6,299 |
Accrued expenses | (3,865) | (8,478) |
Income taxes payable | (146) | (328) |
Deferred rent | 1,667 | (3,122) |
Other assets and liabilities | (86) | (110) |
Net cash provided by operating activities | 5,831 | 4,019 |
Investing activities | ||
Capital expenditures | (13,993) | (10,757) |
Net cash used in investing activities | (13,993) | (10,757) |
Financing activities | ||
Repayment of long-term debt | (500) | |
Payment of financing costs | (22) | |
Proceeds from exercise of stock options | 16 | 299 |
Shares withheld for payment of employee payroll taxes | (247) | (118) |
Principal payments on capital lease obligations | (256) | |
Net cash (used in) provided by financing activities | (1,009) | 181 |
Net decrease in cash and cash equivalents | (9,171) | (6,557) |
Cash and cash equivalents at beginning of period | 69,293 | 69,723 |
Cash and cash equivalents at end of period | 60,122 | $ 63,166 |
Non-cash capital lease transaction | $ 1,080 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Aug. 01, 2015 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation New York & Company, Inc. (together with its subsidiaries, 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 eCommerce store at www.nyandcompany.com . The target customers for the Company's merchandise are fashion-conscious, value-sensitive women between the ages of 25 and 45. As of August 1, 2015, the Company operated 504 stores in 43 states. The condensed consolidated financial statements as of August 1, 2015 and August 2, 2014 and for the 13 weeks ("three months") and 26 weeks ("six months") ended August 1, 2015 and August 2, 2014 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 January 31, 2015 ("fiscal year 2014"), which were filed with the Company's Annual Report on Form 10-K with the SEC on April 16, 2015. The 52-week fiscal years ending January 30, 2016 and January 28, 2017 are referred to herein as "fiscal year 2015" and "fiscal year 2016," respectively. 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. The Company operates as one segment and all of its revenues are generated in the United States. 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. Certain totals that appear in this Quarterly Report on Form 10-Q may not equal the sum of the components due to rounding. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Aug. 01, 2015 | |
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 (Topic 606)" ("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 an entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within those reporting periods. As amended, early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within those reporting periods. The standard 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. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"), which requires that debt issuance costs be presented as a direct deduction from the carrying amount of related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirement for debt issuance costs. ASU 2015-03 is effective retrospectively for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the adoption of ASU 2015-03 to have an impact on the Company's financial position or results of operations. In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets" ("ASU 2015-04"), which provides a practical expedient that permits a company to measure defined benefit plan assets and obligations using the month-end date that is closest to the company's fiscal year end and apply that practical expedient consistently from year to year. ASU 2015-04 is effective prospectively for financial statements issued for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of ASU 2015-04 to have an impact on the Company's financial position or results of operations. In April 2015, the FASB issued ASU 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement," which amends ASC 350, "Intangibles—Goodwill and Other." The amendments provide guidance as to whether a cloud computing arrangement includes a software license, and based on that determination, how to account for such arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. The amendments are effective for arrangements entered into, or materially modified, in annual or interim reporting periods within those years beginning after December 15, 2015 and may be applied on either a prospective or retrospective basis, with early adoption permitted. The Company is currently evaluating the new standard and its impact on the Company's financial position and results of operations. In June 2015, the FASB issued ASU 2015-10, "Technical Corrections and Improvements" ("ASU 2015-10"), which amends a number of topics in the Accounting Standards Codification™ ("Codification"). The update is a part of an ongoing project on the FASB's agenda to facilitate Codification updates for non-substantive technical corrections, clarifications, and improvements that are not expected to have a significant effect on accounting practice or create a significant administrative cost to most entities. ASU 2015-10 will apply to all reporting entities within the scope of the affected accounting guidance. Certain amendments in the update require transition guidance and are effective for all entities for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the new standard and its impact on the Company's financial position and results of operations. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Aug. 01, 2015 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | 3. Earnings (Loss) Per Share Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. Except when the effect would be anti-dilutive, diluted earnings (loss) per share are 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 ended August 1, 2015 Three months ended August 2, 2014 Six months ended August 1, 2015 Six months ended August 2, 2014 (Amounts in thousands, except per share amounts) Net loss $ ) $ ) $ ) $ ) Basic loss per share Weighted average shares outstanding: Basic shares of common stock Basic loss per share $ ) $ ) $ ) $ ) Diluted loss per share Weighted average shares outstanding: Basic shares of common stock Plus impact of share-based awards — — — — Diluted shares of common stock Diluted loss per share $ ) $ ) $ ) $ ) The calculation of diluted loss per share for the three and six months ended August 1, 2015 and August 2, 2014 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 ended August 1, 2015 Three months ended August 2, 2014 Six months ended August 1, 2015 Six months ended August 2, 2014 (Amounts in thousands) Stock options Stock appreciation rights(1) Restricted stock and units Total anti-dilutive shares (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. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Aug. 01, 2015 | |
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 $0.8 million and $0.7 million for the three months ended August 1, 2015 and August 2, 2014, respectively, and $1.8 million and $2.0 million for the six months ended August 1, 2015 and August 2, 2014, respectively. During the six months ended August 1, 2015, 7,500 shares of common stock were issued upon exercise of previously issued stock options. |
Pension Plan
Pension Plan | 6 Months Ended |
Aug. 01, 2015 | |
Pension Plan | |
Pension Plan | 5. Pension Plan The Company sponsors a single employer defined benefit pension plan ("plan") covering substantially all union employees. Employees covered by collective bargaining agreements are primarily non-management store associates, representing approximately 8% of the Company's workforce at August 1, 2015. The collective bargaining agreement with the Local 1102 unit 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 complete 1,000 or more hours of service in any calendar year following the 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 ERISA rules. Net periodic benefit cost includes the following components: Three months ended August 1, 2015 Three months ended August 2, 2014 Six months ended August 1, 2015 Six months ended August 2, 2014 (Amounts in thousands) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of unrecognized losses Amortization of prior service credit ) ) ) ) Net periodic benefit cost $ $ $ $ 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 consolidated balance sheets and into selling, general, and administrative expenses on the Company's consolidated statements of operations for the three months ended August 1, 2015 and August 2, 2014 was approximately $86,000 and $21,000, respectively, and for the six months ended August 1, 2015 and August 2, 2014 was $148,000 and $67,000, respectively. As of January 31, 2015, the Company reported a minimum pension liability of $2.7 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 | 6 Months Ended |
Aug. 01, 2015 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Company files U.S. federal income tax returns and income tax returns in various state and local jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for tax years through 2011. With limited exception, the Company is no longer subject to state and local income tax examinations for tax years through 2010. At January 31, 2015, the Company reported a total liability for unrecognized tax benefits of $3.9 million, including interest and penalties. There have been no material changes during the six months ended August 1, 2015. Of the total $3.9 million of unrecognized tax benefits at January 31, 2015, approximately $1.0 million, if recognized, would impact the Company's effective tax rate. 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 August 1, 2015, the Company's valuation allowance against its deferred tax assets was $65.8 million. |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facilities | 6 Months Ended |
Aug. 01, 2015 | |
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 lender party thereto. The obligations under the Loan Agreement are guaranteed by New York & Company, Inc. and its other subsidiaries. The Loan Agreement consists of: (i) a revolving credit facility that provides 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, and (ii) a $15 million, 5-year term loan, bearing interest at the Adjusted Eurodollar Rate plus 4.50% (the "Term Loan"). Under the terms of the Loan Agreement, the interest rates applicable to Revolving Loans are, 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 lender 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 August 1, 2015, the Company had availability under its revolving credit facility of $35.7 million, net of letters of credit outstanding of $20.5 million, as compared to availability of $30.0 million, net of letters of credit outstanding of $19.8 million, as of January 31, 2015, and availability of $30.4 million, net of letters of credit outstanding of $22.5 million, as of August 2, 2014. Included in letters of credit outstanding at August 1, 2015 are $1.4 million of trade letters of credit and $19.1 million of standby letters of credit primarily related to the Company's new corporate headquarters and certain insurance contracts. Under the terms of the Loan Agreement, the Company is 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 indebtedness. Subject to such restrictions, the Company may incur more indebtedness for working capital, capital expenditures, stock repurchases, acquisitions and for other purposes. 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. As of August 1, 2015 and January 31, 2015, the Company had recorded $3.0 million and $2.2 million of capital lease obligations, respectively, which will be paid over the next five years. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 01, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | 8. Fair Value Measurements The Company measures fair value in accordance with FASB ASC 820 Topic, "Fair Value Measurements" ("ASC 820"). 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 sheets 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 August 1, 2015 and January 31, 2015, the carrying amount of long-term debt approximated its fair value due to the variable interest rate it carries. 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. The Company reported the following non-cash impairment charges related to underperforming store assets during the first and second quarters of fiscal year 2015 and fiscal year 2014 in "Selling, general and administrative expenses" on the Company's consolidated statements of operations: Fiscal Year 2015 Fiscal Year 2014 (Amounts in thousands) First quarter $ — $ Second quarter — Total year-to-date impairment charges $ $ |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Earnings (Loss) Per Share | |
Schedule of reconciliation between basic and diluted loss per share | Three months ended August 1, 2015 Three months ended August 2, 2014 Six months ended August 1, 2015 Six months ended August 2, 2014 (Amounts in thousands, except per share amounts) Net loss $ ) $ ) $ ) $ ) Basic loss per share Weighted average shares outstanding: Basic shares of common stock Basic loss per share $ ) $ ) $ ) $ ) Diluted loss per share Weighted average shares outstanding: Basic shares of common stock Plus impact of share-based awards — — — — Diluted shares of common stock Diluted loss per share $ ) $ ) $ ) $ ) |
Schedule listing the share-based awards excluded from the computation of diluted loss per share due to their anti-dilutive effect | Three months ended August 1, 2015 Three months ended August 2, 2014 Six months ended August 1, 2015 Six months ended August 2, 2014 (Amounts in thousands) Stock options Stock appreciation rights(1) Restricted stock and units Total anti-dilutive shares (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) | 6 Months Ended |
Aug. 01, 2015 | |
Pension Plan | |
Schedule of net periodic benefit cost | Three months ended August 1, 2015 Three months ended August 2, 2014 Six months ended August 1, 2015 Six months ended August 2, 2014 (Amounts in thousands) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of unrecognized losses Amortization of prior service credit ) ) ) Net periodic benefit cost $ $ $ $ |
Fair value Measurements (Tables
Fair value Measurements (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Fair Value Measurements | |
Schedule of non-cash impairment charges related to underperforming store assets | Fiscal Year 2015 Fiscal Year 2014 (Amounts in thousands) First quarter $ — $ Second quarter — Total year-to-date impairment charges $ $ |
Organization and Basis of Pre19
Organization and Basis of Presentation (Details) - item | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Organization and basis of presentation | |||||||
Number of stores operated | 504 | 504 | |||||
Number of states in which entity operated the stores | 43 | 43 | |||||
Length of period | 91 days | 91 days | 182 days | 182 days | |||
Length of fiscal year | 364 days | 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 (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Earnings (Loss) Per Share | ||||
Net loss | $ (146) | $ (147) | $ (4,817) | $ (429) |
Weighted average shares outstanding: | ||||
Basic shares of common stock (in shares) | 63,174 | 62,819 | 63,079 | 62,728 |
Basic loss per share (in dollars per share) | $ 0 | $ 0 | $ (0.08) | $ (0.01) |
Weighted average shares outstanding: | ||||
Basic shares of common stock (in shares) | 63,174 | 62,819 | 63,079 | 62,728 |
Plus impact of share-based awards (in shares) | 0 | 0 | ||
Diluted shares of common stock (in shares) | 63,174 | 62,819 | 63,079 | 62,728 |
Diluted loss per share (in dollars per share) | $ 0 | $ 0 | $ (0.08) | $ (0.01) |
Earnings (Loss) Per Share (De21
Earnings (Loss) Per Share (Details 2) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Shares excluded from calculation of diluted earnings per share | ||||
Anti-dilutive shares | 6,276,000 | 4,104,000 | 6,760,000 | 4,027,000 |
Stock options | ||||
Shares excluded from calculation of diluted earnings per share | ||||
Anti-dilutive shares | 466,000 | 497,000 | 487,000 | 532,000 |
Stock appreciation rights | ||||
Shares excluded from calculation of diluted earnings per share | ||||
Anti-dilutive shares | 5,330,000 | 2,953,000 | 5,442,000 | 2,986,000 |
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 | 480,000 | 654,000 | 831,000 | 509,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Share-Based Compensation | ||||
Share-based compensation expense | $ 0.8 | $ 0.7 | $ 1.8 | $ 2 |
Number of shares of common stock issued upon exercise of stock options | 7,500 |
Pension Plan (Details)
Pension Plan (Details) | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015USD ($) | Aug. 02, 2014USD ($) | Aug. 01, 2015USD ($)item | Aug. 02, 2014USD ($) | Jan. 31, 2015USD ($) | |
Pension Plan | |||||
Employees covered by collective bargaining agreements (as a percent) | 8.00% | 8.00% | |||
Age of employees, after attainment of which plan provides retirement benefits | item | 21 | ||||
Minimum hours of service to be completed for plan to provide retirement benefits | 1000 hours | ||||
Net periodic benefit cost | |||||
Service cost | $ 29,000 | $ 88,000 | $ 171,000 | $ 175,000 | |
Interest cost | 76,000 | 94,000 | 160,000 | 184,000 | |
Expected return on plan assets | (73,000) | (146,000) | (223,000) | (275,000) | |
Amortization of unrecognized losses | 90,000 | 25,000 | 156,000 | 75,000 | |
Amortization of prior service credit | (4,000) | (4,000) | (8,000) | (8,000) | |
Net periodic benefit cost | 118,000 | 57,000 | 256,000 | 151,000 | |
Amounts reclassified from accumulated other comprehensive loss | $ 86,000 | $ 21,000 | $ 148,000 | $ 67,000 | |
Minimum pension liability due to the underfunded status of the plan | $ 2,700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 |
Income tax expense (benefit) | ||
Unrecognized tax benefits | $ 3.9 | |
Unrecognized tax benefit impact on effective tax rate | $ 1 | |
Deferred tax assets, valuation allowance | $ 65.8 |
Long-Term Debt and Credit Fac25
Long-Term Debt and Credit Facilities (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Long-term debt and credit facilities | |||
Minimum excess availability covenant | $ 7.5 | ||
Capital Lease Obligations | $ 3 | $ 2.2 | |
Periods for payment of Capital lease obligations | 5 years | ||
Line of credit | |||
Long-term debt and credit facilities | |||
Maximum borrowing capacity | $ 100 | ||
Revolving credit facility | |||
Long-term debt and credit facilities | |||
Maximum borrowing capacity | $ 75 | ||
Monthly commitment fee on the unused portion of credit facility (as a percent) | 0.25% | ||
Borrowing availability | $ 35.7 | 30 | $ 30.4 |
Outstanding letters of credit | 20.5 | $ 19.8 | $ 22.5 |
Revolving credit facility | Minimum | |||
Long-term debt and credit facilities | |||
Accordion option to increase or decrease commitments under the credit facility | 60 | ||
Revolving credit facility | Maximum | |||
Long-term debt and credit facilities | |||
Accordion option to increase or decrease commitments under the credit facility | $ 100 | ||
Revolving credit facility | Eurodollar rate | |||
Long-term debt and credit facilities | |||
Variable rate basis | Eurodollar Rate | ||
Revolving credit facility | Eurodollar rate | Minimum | |||
Long-term debt and credit facilities | |||
Interest rate margin (as a percent) | 1.50% | ||
Revolving credit facility | Eurodollar rate | Maximum | |||
Long-term debt and credit facilities | |||
Interest rate margin (as a percent) | 1.75% | ||
Revolving credit facility | Prime rate | |||
Long-term debt and credit facilities | |||
Variable rate basis | Prime Rate | ||
Revolving credit facility | Prime rate | Minimum | |||
Long-term debt and credit facilities | |||
Interest rate margin (as a percent) | 0.50% | ||
Revolving credit facility | Prime rate | Maximum | |||
Long-term debt and credit facilities | |||
Interest rate margin (as a percent) | 0.75% | ||
Commercial letters of credit | |||
Long-term debt and credit facilities | |||
Maximum borrowing capacity | $ 45 | ||
Outstanding letters of credit | $ 1.4 | ||
Commercial letters of credit | Minimum | |||
Long-term debt and credit facilities | |||
Monthly commitment fee letters of credit (as a percent) | 0.75% | ||
Commercial letters of credit | Maximum | |||
Long-term debt and credit facilities | |||
Monthly commitment fee letters of credit (as a percent) | 0.875% | ||
Stand by letters of credit | |||
Long-term debt and credit facilities | |||
Outstanding letters of credit | $ 19.1 | ||
Stand by letters of credit | Minimum | |||
Long-term debt and credit facilities | |||
Monthly commitment fee letters of credit (as a percent) | 1.50% | ||
Stand by letters of credit | Maximum | |||
Long-term debt and credit facilities | |||
Monthly commitment fee letters of credit (as a percent) | 1.75% | ||
Term loan | |||
Long-term debt and credit facilities | |||
Maximum borrowing capacity | $ 15 | ||
Length of term loan | 5 years | ||
Term loan | Eurodollar rate | |||
Long-term debt and credit facilities | |||
Variable rate basis | Eurodollar Rate | ||
Interest rate margin (as a percent) | 4.50% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | May. 03, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Total year-to-date impairment charges | $ 232 | $ 358 | ||
Underperforming New York & Company stores | Selling, general and administrative expenses | ||||
Total year-to-date impairment charges | $ 232 | $ 358 | $ 232 | $ 358 |