Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2016 | May. 27, 2016 | |
Class of Stock [Line Items] | ||
Entity Registrant Name | DSW Inc. | |
Entity Central Index Key | 1,319,947 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Class A Common Shares | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 74,283,967 | |
Class B Common Shares | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,732,807 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Net sales | $ 681,267 | $ 655,486 |
Cost of sales | (476,910) | (442,428) |
Operating expenses | (154,196) | (139,486) |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (1,445) | 0 |
Operating profit | 48,716 | 73,572 |
Interest expense | (49) | (38) |
Interest income | 570 | 958 |
Interest income, net | 521 | 920 |
Nonoperating Income (Expense) | 164 | 3,312 |
Income before income taxes and loss from Town Shoes | 49,401 | 77,804 |
Income tax provision | (19,078) | (29,096) |
Loss from Town Shoes | (309) | (1,342) |
Net income | $ 30,014 | $ 47,366 |
Basic and diluted earnings (loss) per share [Abstract]: | ||
Basic earnings per share | $ 0.37 | $ 0.54 |
Diluted earnings per share | $ 0.36 | $ 0.53 |
Shares used in per share calculations [Abstract]: | ||
Basic shares | 81,953 | 88,524 |
Diluted shares | 82,705 | 89,624 |
Other comprehensive (loss) income, net of tax [Abstract]: | ||
Foreign currency translation | $ 12,149 | $ 1,814 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 126 | (361) |
Total comprehensive income | $ 42,289 | $ 48,819 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 117,000 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 |
Assets [Abstract]: | |||
Cash and equivalents | $ 59,462 | $ 32,495 | $ 206,868 |
Short-term investments | 97,612 | 226,027 | 128,705 |
Accounts receivable, net | 15,239 | 15,437 | 24,125 |
Accounts receivable from related parties | 58 | 27 | 56 |
Inventories | 563,317 | 484,236 | 512,096 |
Prepaid expenses and other current assets | 32,165 | 37,444 | 45,919 |
Prepaid Rent | 1 | 2 | 875 |
Total current assets | 767,854 | 795,668 | 918,644 |
Property and equipment, net | 373,979 | 374,241 | 346,912 |
Long-term investments | 80,456 | 71,953 | 120,724 |
Goodwill | 80,684 | 25,899 | 25,899 |
Deferred income taxes | 21,217 | 21,815 | 31,446 |
Prepaid Expense, Noncurrent | 848 | 875 | 830 |
Equity Method Investments | 18,389 | 21,188 | 22,952 |
Notes Receivable, Related Parties, Noncurrent | 50,618 | 44,170 | 46,686 |
Intangible Assets, Current | 40,614 | 46 | 46 |
Other assets | 22,331 | 13,254 | 7,821 |
Total assets | 1,456,990 | 1,369,109 | 1,521,960 |
Liabilities and Shareholders' equity [Abstract]: | |||
Accounts payable | 196,698 | 214,893 | 194,749 |
Accounts payable to related parties | 821 | 733 | 657 |
Accrued expenses | 125,766 | 107,800 | 136,374 |
Total current liabilities | 323,285 | 323,426 | 331,780 |
Non-current liabilities | 142,693 | 140,759 | 141,393 |
Commitments and Contingencies | 57,445 | 0 | 0 |
Shareholders’ equity [Abstract]: | |||
Additional Paid in Capital, Common Stock | 932,702 | 930,011 | 915,134 |
Preferred Shares, no par value; 100,000 authorized; no shares issued or outstanding | 0 | 0 | 0 |
Treasury Stock, Value | (266,531) | (266,531) | (86,938) |
Retained earnings | 300,817 | 287,140 | 250,585 |
Basis difference related to acquisition of commonly controlled entity | (24,993) | (24,993) | (24,993) |
Accumulated other comprehensive loss | (8,428) | (20,703) | (5,001) |
Total shareholders’ equity | 933,567 | 904,924 | 1,048,787 |
Total liabilities and shareholders’ equity | 1,456,990 | 1,369,109 | 1,521,960 |
Additional Paid-in Capital [Member] | |||
Shareholders’ equity [Abstract]: | |||
Total shareholders’ equity | 932,702 | 930,011 | 915,134 |
Accumulated other comprehensive loss | |||
Shareholders’ equity [Abstract]: | |||
Total shareholders’ equity | $ (8,428) | $ (20,703) | $ (5,001) |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands, $ / shares in Thousands | Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 |
Shareholders' equity [Abstract]: | |||
Preferred Shares, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Shares, authorized (in shares) | 100,000 | 100,000 | 100,000 |
Preferred Shares, issued (in shares) | 0 | 0 | 0 |
Preferred Shares, outstanding (in shares) | 0 | 0 | 0 |
Class A Common Shares | |||
Shareholders' equity [Abstract]: | |||
Common Shares, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Shares, authorized (in shares) | 250,000 | 250,000 | 250,000 |
Common Shares, issued (in shares) | 84,493 | 84,396 | 83,980 |
Common Shares, outstanding (in shares) | 74,282 | 74,185 | 80,944 |
Class B Common Shares | |||
Shareholders' equity [Abstract]: | |||
Common Shares, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Shares, authorized (in shares) | 100,000 | 100,000 | 100,000 |
Common Shares, issued (in shares) | 7,733 | 7,733 | 7,733 |
Common Shares, outstanding (in shares) | 7,733 | 7,733 | 7,733 |
Treasury Stock [Member] | |||
Shareholders' equity [Abstract]: | |||
Common Shares, outstanding (in shares) | 10,211 | 10,211 | 3,036 |
Treasury Stock, Shares | 10,211 | 10,211 | 3,036 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A Common Shares | Class B Common Shares | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings | Basis difference related to acquisition of commonly controlled entity | Accumulated other comprehensive loss |
Balance at Jan. 31, 2015 | $ 1,011,120 | $ (86,938) | $ 908,679 | $ 220,826 | $ (24,993) | $ (6,454) | ||
Balance (in shares) at Jan. 31, 2015 | 80,666 | 7,733 | 3,036 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||
Net income | 47,366 | 0 | 47,366 | 0 | 0 | |||
Stock-based compensation expense, before related tax effects | 3,521 | 3,521 | 0 | 0 | 0 | |||
Stock units granted | 42 | 42 | 0 | 0 | 0 | |||
Stock units granted (in shares) | 3 | |||||||
Exercise of stock options, net of settlement of taxes | 2,601 | 2,601 | 0 | 0 | 0 | |||
Exercise of stock options, net of settlement of taxes (in shares) | 224 | |||||||
Vesting of restricted stock units, net of settlement of taxes | (1,261) | (1,261) | 0 | 0 | 0 | |||
Vesting of restricted stock units, net of settlement of taxes (in shares) | 51 | |||||||
Excess tax benefits related to stock-based compensation | 1,552 | 1,552 | 0 | 0 | 0 | |||
Foreign currency translation | 1,814 | 1,814 | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (361) | (361) | ||||||
Dividends paid | (17,607) | (17,607) | ||||||
Balance at May. 02, 2015 | 1,048,787 | $ (86,938) | 915,134 | 250,585 | (24,993) | (5,001) | ||
Balance (in shares) at May. 02, 2015 | 80,944 | 7,733 | 3,036 | |||||
Balance at Jan. 30, 2016 | 904,924 | $ (266,531) | 930,011 | 287,140 | (24,993) | (20,703) | ||
Balance (in shares) at Jan. 30, 2016 | 74,185 | 7,733 | 10,211 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||
Net income | 30,014 | 30,014 | 0 | 0 | ||||
Stock-based compensation expense, before related tax effects | 3,589 | 3,589 | 0 | 0 | 0 | |||
Stock units granted | 68 | 68 | 0 | 0 | 0 | |||
Stock units granted (in shares) | 5 | |||||||
Exercise of stock options, net of settlement of taxes | 243 | 243 | 0 | 0 | 0 | |||
Exercise of stock options, net of settlement of taxes (in shares) | 17 | |||||||
Vesting of restricted stock units, net of settlement of taxes | (1,042) | (1,042) | 0 | 0 | 0 | |||
Vesting of restricted stock units, net of settlement of taxes (in shares) | 75 | |||||||
Excess tax benefits related to stock-based compensation | (167) | (167) | 0 | 0 | 0 | |||
Foreign currency translation | 12,149 | 12,149 | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 126 | 126 | ||||||
Dividends paid | (16,337) | (16,337) | ||||||
Balance at Apr. 30, 2016 | $ 933,567 | $ (266,531) | $ 932,702 | $ 300,817 | $ (24,993) | $ (8,428) | ||
Balance (in shares) at Apr. 30, 2016 | 74,282 | 7,733 | 10,211 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Dividends paid (in dollars per share) | $ 0.20 | $ 0.20 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 117,000 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 30,014 | $ 47,366 |
Adjustments to reconcile net income (loss) to net cash and equivalents provided by operating activities from continuing operations: | ||
Depreciation and amortization | 19,753 | 17,879 |
Share-based compensation expense | 3,657 | 3,563 |
Deferred income taxes | 598 | (366) |
Loss from Town Shoes | 309 | 1,342 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 1,445 | 0 |
Loss on disposal of long-lived assets | 160 | 78 |
Impairment of Long-Lived Assets Held-for-use | 0 | 418 |
Amortization of investment discounts and premiums | 536 | 1,932 |
Excess tax benefit related to stock-based compensation | 0 | (1,552) |
Foreign Currency Transaction Gain (Loss), before Tax | 0 | (3,312) |
Change in working capital, other assets and liabilities: | ||
Accounts receivable, net | 1,790 | 226 |
Inventories | (48,929) | (61,260) |
Prepaid expenses and other current assets | 5,886 | (8,644) |
Accounts payable | (18,653) | 23,514 |
Accrued expenses | 13,742 | 25,388 |
Other | (494) | 2,819 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 9,814 | 49,391 |
Cash flows from investing activities: | ||
Cash paid for property and equipment | (26,039) | (26,710) |
Purchases of available-for-sale investments | (24,024) | (3,292) |
Sales of available-for-sale investments | 151,793 | 139,526 |
Increase (Decrease) in Restricted Cash | (389) | 4,922 |
Origination of Notes Receivable from Related Parties | (6,641) | (4,737) |
Payments to Acquire Businesses, Net of Cash Acquired | (60,411) | 0 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 34,289 | 109,709 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 243 | 2,601 |
Payments Related to Tax Withholding for Share-based Compensation | (1,042) | (1,261) |
Dividends paid | (16,337) | (17,607) |
Excess tax benefit related to stock-based compensation | 0 | 1,552 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (17,136) | (14,715) |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 3,312 |
Net increase in cash and equivalents | 26,967 | 144,385 |
Cash and equivalents, beginning of period | 32,495 | 59,171 |
Cash and equivalents, end of period | 59,462 | 206,868 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for income taxes | 12,739 | 4,442 |
Proceeds from construction and tenant allowances | 6,369 | 3,900 |
Non-cash operating, investing and financing activities: | ||
Balance of accounts payable and accrued expenses due to property and equipment purchases | 4,817 | 5,818 |
Business Combination, Contingent Consideration, Liability | $ 56,000 | $ 0 |
Business Operations and Basis o
Business Operations and Basis of Presentation | 3 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Operations and Basis of Presentation | BUSINESS OPERATIONS AND BASIS OF PRESENTATION Business Operations- DSW Inc. and its wholly owned subsidiaries are herein referred to collectively as DSW Inc. or the “Company”. DSW refers to the DSW segment, which includes DSW stores and dsw.com. DSW Inc. Class A Common Shares are listed on the New York Stock Exchange under the ticker symbol “DSW”. DSW Inc. Class B Common Shares are not listed on a stock exchange but are exchangeable for Class A Common Shares at the election of the shareholder. DSW Inc. has two reportable segments: the DSW segment, which includes DSW stores and dsw.com, and the Affiliated Business Group (“ABG”) segment. DSW offers a wide assortment of brand name dress, casual and athletic footwear and accessories for women, men and kids. As of April 30, 2016 , DSW operated a total of 478 stores located in 42 states, the District of Columbia and Puerto Rico, and dsw.com. During the three months ended April 30, 2016 , DSW opened 10 new DSW stores. DSW Inc., through its ABG segment, also partners with three other retailers to help build and optimize their footwear businesses. As of April 30, 2016 , ABG supplied merchandise to 281 Stein Mart stores and Steinmart.com, 103 Gordmans stores and Gordmans.com, and one Frugal Fannie’s store. During the three months ended April 30, 2016 , ABG added seven new shoe departments and ceased operations in one shoe department. DSW Inc. also has an equity investment in Town Shoes Limited ("Town Shoes"). Town Shoes is the market leader in branded footwear in Canada. As of April 30, 2016 , Town Shoes operated 189 locations across Canada primarily under The Shoe Company, Shoe Warehouse, Town Shoes and DSW banners, as well as an e-commerce site. As of April 30, 2016 , there are 17 DSW Designer Shoe Warehouse stores in Canada operating under a licensing agreement. See Note 4 for further disclosure on the licensing agreement. On March 4, 2016 , the Company acquired Ebuys, Inc. ("Ebuys"), an online close-out footwear and accessories retailer. Ebuys sells products to customers located in North America, Europe, Australia and Asia. The transaction supports DSW Inc.’s efforts to grow its market share within footwear and accessories domestically and internationally. Basis of Presentation- The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with DSW Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 24, 2016 (the “2015 Annual Report”). In the opinion of management, the unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the condensed consolidated financial position, results of operations and cash flows for the periods presented. The condensed consolidated interim financial statements include the accounts of DSW Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in United States dollars ("USD"), unless otherwise noted. Prior Period Reclassification- Certain prior period disclosure amounts have been reclassified to conform to current period presentation. Intangible assets are no longer included in other assets and are presented separately in the Company’s balance sheets. Software is no longer included in furniture, fixtures and equipment and is presented separately in the property, plant and equipment footnote (Note 10). |
Acquisition and Equity Method I
Acquisition and Equity Method Investment | 3 Months Ended |
Apr. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ACQUISITION AND EQUITY METHOD INVESTMENT Town Shoes- On May 12, 2014, DSW Inc. acquired a 49.2% ownership interest in Town Shoes for $75.1 million Canadian dollars ("CAD") ( $68.9 million USD) at the purchase date. As of April 30, 2016 , DSW Inc.'s ownership interest is 46.3% . The dilution of the Company's ownership is due to Town Shoes' employee exercise of stock options. DSW Inc.'s initial stake provides 50% voting control and board representation equal to the co-investor. Additionally, the Town Shoe co-investor holds the option to sell the remaining portion of the company in fiscal 2017 to DSW Inc., and for the subsequent two years. DSW Inc. holds the option to purchase the remaining portion of the company in fiscal 2018, and for the subsequent two years, if the Town Shoe co-investor has not exercised their put option. DSW Inc. purchased $100 million CAD during the first quarter of fiscal 2015 (approximately $79 million USD at purchase date) to take advantage of the strength of the dollar and in anticipation of funding the future purchase of the remaining interest in Town Shoes. The funds are also available to fund other business opportunities or return to U.S. operations, if needed. As this was a cash transaction, the gains or losses related to the purchase of the CAD were recorded in the consolidated statement of operations. During the first quarter of fiscal 2015, the Company recorded $3.3 million in foreign currency exchange gains related to the purchase of CAD within non-operating income. The Company invested the CAD in available-for-sale securities in the second quarter of fiscal 2015. For the three months ended April 30, 2016 , the accumulated comprehensive loss was reduced by $8.2 million . Ebuys- On March 4, 2016 , the Company acquired Ebuys, an online close-out footwear and accessories retailer for a total purchase price of $116.4 million . In addition to cash consideration of $62.5 million , less adjustments for working capital, the consideration for the acquisition of Ebuys includes a future payment that is contingent upon the achievement of a specified milestone. The Company will revalue its contingent consideration obligation of $56.0 million each reporting period. Since the acquisition date, Ebuys has recognized revenues of $15.1 million , which is included in the consolidated statement of operations. Goodwill was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill related to this acquisition is deductible for income tax purposes. The purchase price allocation for the Ebuys acquisition is preliminary and subject to change based on the finalization of the detailed valuations. The following table represents the estimate of the allocation of the purchase price (in thousands): Preliminary Purchase Price Allocation Accounts and other receivables $ 1,623 Inventory 30,152 Other current assets 191 Property and equipment 1,221 Goodwill 54,785 Other intangible assets 41,301 Accounts payable and other long-term liabilities (12,862 ) Total purchase price $ 116,411 The preliminary fair value of intangible assets of $41.3 million includes $5.9 million for non-compete agreements, $24.4 million for customer and online retailer relationships, and $11.0 million for trade names. Per Accounting Standards Codification ("ASC") Topic 805, Business Combinations, the acquirer shall disclose pro-forma financial information as though the business combination had occurred as of the beginning of the comparable prior annual reporting period. For the acquisition of Ebuys in March 2016, pro-forma information was not practicable to obtain as of the time that financial statements were ready for issuance. The following policies represent new or updates to significant accounting policies. Business Combination - In accordance with ASC Topic 805, Business Combinations , the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition. The purchase price allocation process requires management to make significant estimates and assumptions with respect to the fair value of any intangible assets acquired, deferred revenues assumed, or contingent consideration within the arrangement. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions or estimates. Contingent Consideration - The Company agreed to pay additional amounts to the seller contingent upon achievement of certain negotiated goals. The Company has recognized a liability for this contingent obligation based on its estimated fair value at the date of acquisition with any differences between the acquisition-date fair value and the ultimate settlement of the obligation being recognized as an adjustment to income from operations. For the three months ended April 30, 2016 , the change in fair value of contingent consideration was $1.4 million and is recognized within the statements of operations. Inventories - Merchandise inventories for Ebuys are accounted for using the cost method, where the cost is based on invoice cost. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS A description of the Company's significant accounting policies is included in the 2015 Annual Report. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") and the International Accounting Standards Board ("IASB") released Accounting Standards Update ("ASU") 2014-09 on the recognition of revenue from contracts with customers that is designed to create greater comparability for financial statement users across industries and jurisdictions. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods. The Company has completed an assessment identifying areas of impact for the business, including the Company's loyalty program and co-branded credit card. The Company is currently assessing and evaluating these results and developing an implementation plan, as well as evaluating the transition methods for adoption of the standard. In April 2015, the FASB released ASU 2015-05 to provide guidance to customers concerning whether a cloud computing arrangement includes a software license. Under this new standard, 1) if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for in a manner consistent with the acquisition of other software licenses, or 2) if the arrangement does not include a software license, the arrangement should be accounted for as a service contract. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. The Company has adopted the new standard and is applying the new guidance prospectively. In January 2016, the FASB released ASU 2016-01, which aims to improve and achieve convergence of standards on the accounting for financial instruments. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In February 2016, the FASB released ASU 2016-02, which will increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities upon issuance of the final standard. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In March 2016, the FASB released ASU 2016-07, which will eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been if effect during all previous periods that the investment had been held. The ASU will be effective for fiscal years beginning after December 15, 2016, including interim reporting periods. The update should be applied prospectively upon effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In March 2016, the FASB released ASU 2016-09, which simplifies the guidance surrounding several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2016, including interim reporting periods. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Schottenstein Affiliates- As of April 30, 2016 , the Schottenstein Affiliates (entities owned by or controlled by Jay L. Schottenstein, the executive chairman of the DSW Inc. Board of Directors, and members of his family) beneficially owned approximately 18% of outstanding DSW Inc. Common Shares, representing approximately 51% of the combined voting power of outstanding DSW Inc. Common Shares. As of April 30, 2016 , the Schottenstein Affiliates beneficially owned 7.2 million Class A Common Shares and 7.7 million Class B Common Shares. The Company leases its fulfillment center and certain store locations owned by Schottenstein Affiliates and purchases services and products from Schottenstein Affiliates. Accounts receivable from and payable to affiliates principally result from commercial transactions or affiliate transactions and normally settle in the form of cash in 30 to 60 days. Related party balances are disclosed on the condensed consolidated balance sheets. License Agreement with Town Shoes- DSW Shoe Warehouse, Inc., a wholly-owned subsidiary of DSW Inc., licenses use of its trade name and trademark, DSW Designer Shoe Warehouse, to its equity investee, Town Shoes, for a sales-based royalty. The license is exclusive and non-transferable for use in Canada. Town Shoes pays DSW Inc. a percentage of net sales from its Canadian DSW stores on a monthly basis. The Canadian DSW stores operate in a manner similar to DSW stores in the United States and are required to maintain the standards and specifications that DSW uses to operate its own stores. DSW Inc. classifies the royalty fee as net sales. |
Earnings per Share and Sharehol
Earnings per Share and Shareholders' Equity | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share and Shareholders' Equity | EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY Earnings per Share- Basic earnings per share is based on net income and a simple weighted average of common shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs") calculated using the treasury stock method. The following table is a reconciliation of the number of shares used in the calculation of diluted earnings per share computations for the periods presented: Three months ended April 30, 2016 May 2, 2015 (in thousands) Weighted average shares outstanding 81,953 88,524 Assumed exercise of dilutive stock options 478 860 Assumed exercise of dilutive RSUs and PSUs 274 240 Number of shares for computation of diluted earnings per share 82,705 89,624 Options, RSUs and PSUs - The number of potential common shares that were not included in the computation of dilutive earnings per share because the effect would be anti-dilutive was approximately 3.1 million and 1.2 million for the three months ended April 30, 2016 and May 2, 2015 , respectively. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION The DSW Inc. 2014 Long-Term Incentive Plan ("the 2014 Plan") provides for the issuance of equity awards to purchase up to 8.5 million DSW Inc. Common Shares. The Company began issuing shares under the 2014 Plan after the DSW Inc. 2005 Equity Incentive Plan expired in the second quarter of fiscal 2015. The 2014 Plan covers stock options, RSUs, PSUs, director stock units ("DSUs") and Stock Appreciation Rights ("SARs"). Eligible recipients include key employees of DSW Inc. and affiliates, as well as directors. Options generally vest 20% per year on a cumulative basis. Options granted under the 2014 Plan generally remain exercisable for a period of ten years from the date of grant. Stock-Based Compensation Expense- The following table summarizes stock-based compensation expense: Three months ended April 30, 2016 May 2, 2015 (in thousands) Stock options $ 1,677 $ 1,996 Restricted stock units 1,230 867 Performance-based restricted stock units 682 658 Director stock units 68 42 Total $ 3,657 $ 3,563 Stock Options, RSUs, PSUs and DSUs- The following table summarizes all stock-based compensation activity: Three months ended April 30, 2016 Stock Options RSUs PSUs DSUs (in thousands) Outstanding, beginning of period 3,849 372 293 305 Granted 835 171 109 5 Options exercised/units vested (17 ) (81 ) (32 ) (2 ) Forfeited (16 ) (7 ) (2 ) — Outstanding, end of period 4,651 455 368 308 Exercisable, end of period 2,347 — — — The following table summarizes the total compensation cost related to nonvested shares not yet recognized and the weighted average expense recognition period remaining (amounts in thousands): Three months ended April 30, 2016 Stock Options RSUs PSUs Unrecognized compensation cost $ 18,126 $ 9,968 $ 6,178 Weighted average expense recognition period 2.4 years 2.2 years 2.3 years The following table illustrates the weighted average assumptions used in the Black-Scholes pricing model for options granted in each of the periods presented: Three months ended Assumptions: April 30, 2016 May 2, 2015 Risk-free interest rate 1.5% 1.4% Expected volatility of DSW Inc. Common Shares 36.0% 37.9% Expected option term 5.4 years 5.1 years Dividend yield 3.0% 2.1% Other Data: Weighted average grant date fair value $6.59 $10.24 Stock Appreciation Rights (“SARs”) - The 2014 Plan also covers the issuance of SARs. DSW Inc. entered into a SARs agreement with a non-employee on June 16, 2014, wherein DSW Inc. granted a total of 0.5 million SARs in two equal tranches with respect to DSW Class A Common Shares. On April 16, 2015, DSW Inc. provided notice of termination of the agreement with the non-employee resulting in an acceleration of the vesting of the SARs as outlined in the agreement, and the SARs remain exercisable until June 2016. DSW Inc. will value the SARs at fair value until the expiration or exercise date using a Black-Scholes model. During the three months ended April 30, 2016 and May 2, 2015 , DSW recorded a benefit of $0.3 million and expense of $3.5 million , respectively. As of April 30, 2016 , the liability was $0.3 million . The fair value of the SARs was estimated using the Black-Scholes pricing model with the following assumptions in each of the periods presented: As of Assumptions: April 30, 2016 January 30, 2016 May 2, 2015 Risk-free interest rate 0.2% 0.4% 0.2% Expected volatility of DSW Inc. Class A Common Shares 30.7% 33.0% 25.7% Expected term 0.1 years 0.4 years 1.0 year Expected dividend yield 2.5% 2.5% 2.4% |
Investments
Investments | 3 Months Ended |
Apr. 30, 2016 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS For the available-for-sale bonds and term notes, the carrying value, plus any unrealized gains or losses, equals the fair value. The unrealized holding gains or losses for the available-for-sale securities are reported in other comprehensive income. The Company accounts for its purchases and sales of investments on the trade date of the investment. The classification of available-for-sale securities is based on management's intention of the use of the investments. The Company used a portion of these investments for its acquisition of Ebuys (see Note 2 for additional discussion on the acquisition of Ebuys). The following table discloses the major categories of the Company's investments as of the dates presented: Short-term investments Long-term investments April 30, 2016 January 30, 2016 May 2, 2015 April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Available-for-sale securities: Carrying value $ 97,236 $ 225,985 $ 128,779 $ 80,748 $ 72,153 $ 121,011 Unrealized gains included in accumulated other comprehensive loss 411 477 38 22 22 38 Unrealized losses included in accumulated other comprehensive loss (35 ) (435 ) (112 ) (314 ) (222 ) (325 ) Total investments $ 97,612 $ 226,027 $ 128,705 $ 80,456 $ 71,953 $ 120,724 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, fair value is a market-based measurement based on assumptions of the market participants. As a basis for these assumptions, the Company classifies its fair value measurements under the following fair value hierarchy: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are publicly accessible. Active markets have frequent transactions with enough volume to provide ongoing pricing information. • Level 2 inputs are other than level 1 inputs that are directly or indirectly observable. These can include unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical assets or liabilities in inactive markets or other observable inputs. • Level 3 inputs are unobservable inputs. Financial Assets and Liabilities- The following table presents financial assets and liabilities at fair value as of the dates presented: April 30, 2016 January 30, 2016 May 2, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 (in thousands) Financial assets: Cash and equivalents $ 59,462 $ 59,462 — — $ 32,495 $ 32,495 — — $ 206,868 $ 206,868 — Short-term investments (a) 97,612 5,676 $ 91,936 — 226,027 2,127 $ 223,900 — 128,705 — $ 128,705 Long-term investments (a) 80,456 286 80,170 — 71,953 181 71,772 — 120,724 — 120,724 Cost method investments (b) 7,250 — — $ 7,250 6,000 — — $ 6,000 — — — Note receivable from Town Shoes (c) 43,198 — 43,198 — 33,311 — 33,311 — 46,686 — 46,686 Total financial assets $ 287,978 $ 65,424 $ 215,304 $ 7,250 $ 369,786 $ 34,803 $ 328,983 $ 6,000 $ 502,983 $ 206,868 $ 296,115 Financial liabilities: Stock appreciation rights (d) $ 262 — $ 262 — $ 561 — $ 561 — $ 5,231 — $ 5,231 Contingent consideration (e) 57,445 — — $ 57,445 — — — — — — — Total financial liabilities $ 57,707 $ — $ 262 $ 57,445 $ 561 $ — $ 561 $ — $ 5,231 $ — $ 5,231 (a) Short-term and long-term investments are valued using a market-based approach using Level 2 inputs such as prices of similar assets in active markets. (b) Cost method investments are valued using Level 3 inputs. The fair value approximates the carrying value as there have been no triggering events that would indicate impairment. (c) The Company estimated the fair value of the note receivable based upon current interest rates offered on similar instruments. The reduction in fair value is based on the change in comparable rates on similar instruments. Based on the Company’s intention and ability to hold the note until maturity or the exercise of the put/call option (see Note 2), the carrying value is not other-than-temporarily impaired. (d) Stock appreciation rights are valued using the Black-Scholes model. (e) Included in the Level 3 liabilities is the contingent consideration liability related to the Company's acquisition of Ebuys. The liability is adjusted to fair value each reporting period. The categorization of the framework used to price the liability is considered Level 3 due to the subjective nature of the unobservable inputs used to determine the fair value. Level 3 Measurements- Financial assets and liabilities are considered Level 3 when the fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques and at least one significant model assumption or input is unobservable. The following table presents activity related to Level 3 fair value measurement for cost method investments for the periods presented: Fiscal period ended April 30, 2016 January 30, 2016 (in thousands) Carrying value, beginning of period $ 6,000 — Additional cost method investment 1,250 $ 6,000 Carrying value, end of period $ 7,250 $ 6,000 The following table presents activity related to Level 3 fair value measurements for DSW Inc.'s contingent consideration liability for the period presented: Three months ended April 30, 2016 (in thousands) Balance, acquisition date of contingent consideration $ 56,000 Change in fair value of contingent consideration 1,445 Balance, end of quarter $ 57,445 Non-Financial Assets- The Company periodically evaluates the carrying amount of its long-lived assets, primarily property and equipment, and finite-lived intangible assets when events and circumstances warrant such a review to ascertain if any assets have been impaired. For the three months ended April 30, 2016, there was no impairment. For the three months ended May 2, 2015, there was a full impairment related to one store in the ABG segment of $0.4 million recorded in cost of sales where the future expected cash flows will not recover the carrying amount of its long-lived assets. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations and Warrant Liabilities | DEBT OBLIGATIONS The Company has a $100 million Secured Credit Facility and a $50 million Letter of Credit Agreement, which are described more fully in the Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . The Company paid $26.0 million for capital expenditures for the three months ended April 30, 2016 . As of April 30, 2016 , January 30, 2016 and May 2, 2015 , the Company had no outstanding borrowings or letters of credit under the Credit Facility with availability of $100 million , $100 million and $50 million , respectively. As of April 30, 2016 , January 30, 2016 and May 2, 2015 , the Company had $7.1 million , $7.1 million and $4.4 million , respectively, in outstanding letters of credit under the Letter of Credit Agreement, and $8.1 million , $7.7 million and $6.6 million , respectively, in restricted cash on deposit as collateral under the Letter of Credit Agreement. The restricted cash balance is recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | PROPERTY AND EQUIPMENT, NET The balance sheet caption "Property and equipment, net" was comprised of the following as of the periods presented: April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Land $ 1,110 $ 1,110 $ 1,110 Furniture, fixtures and equipment 392,346 385,780 344,763 Software 125,530 120,567 108,991 Buildings, building and leasehold improvements 391,552 385,861 362,242 Total property and equipment 910,538 893,318 817,106 Accumulated depreciation and amortization (536,559 ) (519,077 ) (470,194 ) Property and equipment, net $ 373,979 $ 374,241 $ 346,912 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Apr. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES The balance sheet caption "Accrued expenses" was comprised of the following as of the periods presented: April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Gift cards and merchandise credits $ 39,385 $ 43,446 $ 36,404 Compensation 18,145 8,042 17,332 Taxes 20,944 17,004 34,312 Customer loyalty program 10,987 10,084 16,009 Other accrued expenses (1) 36,305 29,224 32,317 Total accrued expenses $ 125,766 $ 107,800 $ 136,374 (1) Other accrued expenses is comprised of deferred revenue, sales return allowance, stock appreciation rights and various other accrued expenses, including advertising, professional fees and rent. |
Non-Current Liabilities
Non-Current Liabilities | 3 Months Ended |
Apr. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | NON-CURRENT LIABILITIES The balance sheet caption "Non-current liabilities" was comprised of the following as of the periods presented: April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Construction and tenant allowances $ 87,002 $ 86,777 $ 85,664 Deferred rent 37,931 37,650 38,007 Other non-current liabilities (1) 17,760 16,332 17,722 Total non-current liabilities $ 142,693 $ 140,759 $ 141,393 (1) Other non-current liabilities is comprised of a reserve for a lease of an office facility assumed in the merger with Retail Ventures, Inc. ("RVI"), income tax reserves and deferred compensation. As of April 30, 2016 , the accrual related to the office facility was $9.2 million . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT REPORTING The Company's operating segments are the DSW segment, which includes DSW stores and dsw.com, the ABG segment and Other, which includes Ebuys. The Company has identified such segments based on internal management reporting and responsibilities and measures segment profit as gross profit, which is defined as net sales less cost of sales. All operations are located in the United States and its territories. As of April 30, 2016 , the goodwill balance of $80.7 million is made up of $25.9 million recorded in the DSW segment and $54.8 million recorded in Other related to Ebuys. The goodwill balance of $25.9 million as of January 30, 2016 and May 2, 2015 is recorded in the DSW segment. DSW segment ABG segment Other (1) Total (in thousands) Three months ended April 30, 2016 Net sales $ 623,032 $ 43,139 $ 15,096 $ 681,267 Gross profit 191,419 10,813 2,125 204,357 Capital expenditures 17,350 324 — 17,674 Three months ended May 2, 2015 Net sales $ 612,211 $ 43,275 — $ 655,486 Gross profit 204,062 8,996 — 213,058 Capital expenditures 27,235 107 — 27,342 Total Assets As of April 30, 2016 $ 1,074,766 $ 105,556 $ 276,668 $ 1,456,990 As of January 30, 2016 1,126,179 105,259 137,671 1,369,109 As of May 2, 2015 1,261,342 110,249 150,369 1,521,960 (1) Other includes assets, liabilities and expenses of the former RVI (see Note 15), Town Shoes and Ebuys (see Note 2). |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. The effective tax rate reflects the impact of federal, state and local, and foreign taxes, as well as tax on the income or loss from Town Shoes. The effective tax rate for the three months ended April 30, 2016 and May 2, 2015 is 38.9% and 38.1% , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings- The Company is involved in various legal proceedings that are incidental to the conduct of its business. Although it is not possible to predict with certainty the eventual outcome of any litigation, in the opinion of management, the amount of any potential liability with respect to current legal proceedings will not be material to results of operations or financial condition. As additional information becomes available, the Company will assess the potential liability related to its pending litigation and revise the estimates as needed. Merger with Retail Ventures, Inc. ("the Merger")- As of the effective time of the Merger, a subsidiary of DSW Inc. assumed the obligations under RVI’s guarantees related to discontinued operations. DSW Inc. may become subject to various risks related to guarantees and in certain circumstances may be responsible for certain other liabilities related to these discontinued operations. In the first quarter of fiscal 2015, the Company recorded a $2.0 million benefit from the final distribution from the bankruptcy debtor's estates related to Filene's Basement's bankruptcy in 2011 within the consolidated statement of operations. Contractual Obligations- As of April 30, 2016 , the Company has entered into various construction commitments, including capital items to be purchased for projects that were under construction, or for which a lease has been signed. The Company's obligations under these commitments were $2.7 million as of April 30, 2016 . In addition, the Company has signed lease agreements for 32 new DSW store locations, expected to be opened in fiscal 2016 and 2017 , with total annual rent of $9.1 million . In connection with the new lease agreements, the Company will receive a total of $13.6 million of construction and tenant allowance reimbursements for expenditures at these locations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Dividends - On May 24, 2016 , DSW Inc.'s Board of Directors declared a quarterly cash dividend payment of $0.20 per share. The dividend will be paid on June 30, 2016 to shareholders of record at the close of business on June 16, 2016 . The payment of any future dividends is at the discretion of the Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in taxation laws, general economic condition and any other relevant factors. |
Business Operations and Basis25
Business Operations and Basis of Presentation Business Operations and Basis of Presentation (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Business Operations and Basis of Presentation [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation- The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with DSW Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 24, 2016 (the “2015 Annual Report”). In the opinion of management, the unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the condensed consolidated financial position, results of operations and cash flows for the periods presented. The condensed consolidated interim financial statements include the accounts of DSW Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in United States dollars ("USD"), unless otherwise noted. |
Reclassification, Policy [Policy Text Block] | Prior Period Reclassification- Certain prior period disclosure amounts have been reclassified to conform to current period presentation. Intangible assets are no longer included in other assets and are presented separately in the Company’s balance sheets. Software is no longer included in furniture, fixtures and equipment and is presented separately in the property, plant and equipment footnote (Note 10). |
Acquisition and Equity Method26
Acquisition and Equity Method Investment Acquisition and Equity Method Investment (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Business Combination Policy [Abstract] | |
Business Combinations Policy [Policy Text Block] | Business Combination - In accordance with ASC Topic 805, Business Combinations , the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition. The purchase price allocation process requires management to make significant estimates and assumptions with respect to the fair value of any intangible assets acquired, deferred revenues assumed, or contingent consideration within the arrangement. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions or estimates. |
Commitments and Contingencies, Policy [Policy Text Block] | Contingent Consideration - The Company agreed to pay additional amounts to the seller contingent upon achievement of certain negotiated goals. The Company has recognized a liability for this contingent obligation based on its estimated fair value at the date of acquisition with any differences between the acquisition-date fair value and the ultimate settlement of the obligation being recognized as an adjustment to income from operations. For the three months ended April 30, 2016 , the change in fair value of contingent consideration was $1.4 million and is recognized within the statements of operations. |
Inventory, Policy [Policy Text Block] | Inventories - Merchandise inventories for Ebuys are accounted for using the cost method, where the cost is based on invoice cost. |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") and the International Accounting Standards Board ("IASB") released Accounting Standards Update ("ASU") 2014-09 on the recognition of revenue from contracts with customers that is designed to create greater comparability for financial statement users across industries and jurisdictions. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods. The Company has completed an assessment identifying areas of impact for the business, including the Company's loyalty program and co-branded credit card. The Company is currently assessing and evaluating these results and developing an implementation plan, as well as evaluating the transition methods for adoption of the standard. In April 2015, the FASB released ASU 2015-05 to provide guidance to customers concerning whether a cloud computing arrangement includes a software license. Under this new standard, 1) if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for in a manner consistent with the acquisition of other software licenses, or 2) if the arrangement does not include a software license, the arrangement should be accounted for as a service contract. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. The Company has adopted the new standard and is applying the new guidance prospectively. In January 2016, the FASB released ASU 2016-01, which aims to improve and achieve convergence of standards on the accounting for financial instruments. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In February 2016, the FASB released ASU 2016-02, which will increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities upon issuance of the final standard. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In March 2016, the FASB released ASU 2016-07, which will eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been if effect during all previous periods that the investment had been held. The ASU will be effective for fiscal years beginning after December 15, 2016, including interim reporting periods. The update should be applied prospectively upon effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In March 2016, the FASB released ASU 2016-09, which simplifies the guidance surrounding several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2016, including interim reporting periods. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. |
Earnings per Share and Shareh28
Earnings per Share and Shareholders' Equity Earnings per Share and Shareholders' Equity (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share- Basic earnings per share is based on net income and a simple weighted average of common shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs") calculated using the treasury stock method. |
Stock-based Compensation Stock-
Stock-based Compensation Stock-based Compensation (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block] | The DSW Inc. 2014 Long-Term Incentive Plan ("the 2014 Plan") provides for the issuance of equity awards to purchase up to 8.5 million DSW Inc. Common Shares. The Company began issuing shares under the 2014 Plan after the DSW Inc. 2005 Equity Incentive Plan expired in the second quarter of fiscal 2015. The 2014 Plan covers stock options, RSUs, PSUs, director stock units ("DSUs") and Stock Appreciation Rights ("SARs"). Eligible recipients include key employees of DSW Inc. and affiliates, as well as directors. Options generally vest 20% per year on a cumulative basis. Options granted under the 2014 Plan generally remain exercisable for a period of ten years from the date of grant. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, fair value is a market-based measurement based on assumptions of the market participants. As a basis for these assumptions, the Company classifies its fair value measurements under the following fair value hierarchy: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are publicly accessible. Active markets have frequent transactions with enough volume to provide ongoing pricing information. • Level 2 inputs are other than level 1 inputs that are directly or indirectly observable. These can include unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical assets or liabilities in inactive markets or other observable inputs. • Level 3 inputs are unobservable inputs. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | The Company has identified such segments based on internal management reporting and responsibilities and measures segment profit as gross profit, which is defined as net sales less cost of sales. |
Income Taxes (Policies)
Income Taxes (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. |
Acquisition and Equity Method33
Acquisition and Equity Method Investment (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table represents the estimate of the allocation of the purchase price (in thousands): Preliminary Purchase Price Allocation Accounts and other receivables $ 1,623 Inventory 30,152 Other current assets 191 Property and equipment 1,221 Goodwill 54,785 Other intangible assets 41,301 Accounts payable and other long-term liabilities (12,862 ) Total purchase price $ 116,411 |
Earnings per Share and Shareh34
Earnings per Share and Shareholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Number of Shares Used in the Calculation of Diluted Earnings per Share | The following table is a reconciliation of the number of shares used in the calculation of diluted earnings per share computations for the periods presented: Three months ended April 30, 2016 May 2, 2015 (in thousands) Weighted average shares outstanding 81,953 88,524 Assumed exercise of dilutive stock options 478 860 Assumed exercise of dilutive RSUs and PSUs 274 240 Number of shares for computation of diluted earnings per share 82,705 89,624 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation Expense [Table Text Block] | The following table summarizes stock-based compensation expense: Three months ended April 30, 2016 May 2, 2015 (in thousands) Stock options $ 1,677 $ 1,996 Restricted stock units 1,230 867 Performance-based restricted stock units 682 658 Director stock units 68 42 Total $ 3,657 $ 3,563 |
Stock Option Plan Activity | The following table summarizes all stock-based compensation activity: Three months ended April 30, 2016 Stock Options RSUs PSUs DSUs (in thousands) Outstanding, beginning of period 3,849 372 293 305 Granted 835 171 109 5 Options exercised/units vested (17 ) (81 ) (32 ) (2 ) Forfeited (16 ) (7 ) (2 ) — Outstanding, end of period 4,651 455 368 308 Exercisable, end of period 2,347 — — — |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The following table summarizes the total compensation cost related to nonvested shares not yet recognized and the weighted average expense recognition period remaining (amounts in thousands): Three months ended April 30, 2016 Stock Options RSUs PSUs Unrecognized compensation cost $ 18,126 $ 9,968 $ 6,178 Weighted average expense recognition period 2.4 years 2.2 years 2.3 years |
Weighted-average Assumptions Used for Options Granted | The following table illustrates the weighted average assumptions used in the Black-Scholes pricing model for options granted in each of the periods presented: Three months ended Assumptions: April 30, 2016 May 2, 2015 Risk-free interest rate 1.5% 1.4% Expected volatility of DSW Inc. Common Shares 36.0% 37.9% Expected option term 5.4 years 5.1 years Dividend yield 3.0% 2.1% Other Data: Weighted average grant date fair value $6.59 $10.24 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity [Table Text Block] | The fair value of the SARs was estimated using the Black-Scholes pricing model with the following assumptions in each of the periods presented: As of Assumptions: April 30, 2016 January 30, 2016 May 2, 2015 Risk-free interest rate 0.2% 0.4% 0.2% Expected volatility of DSW Inc. Class A Common Shares 30.7% 33.0% 25.7% Expected term 0.1 years 0.4 years 1.0 year Expected dividend yield 2.5% 2.5% 2.4% |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Investments [Abstract] | |
Investments | The following table discloses the major categories of the Company's investments as of the dates presented: Short-term investments Long-term investments April 30, 2016 January 30, 2016 May 2, 2015 April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Available-for-sale securities: Carrying value $ 97,236 $ 225,985 $ 128,779 $ 80,748 $ 72,153 $ 121,011 Unrealized gains included in accumulated other comprehensive loss 411 477 38 22 22 38 Unrealized losses included in accumulated other comprehensive loss (35 ) (435 ) (112 ) (314 ) (222 ) (325 ) Total investments $ 97,612 $ 226,027 $ 128,705 $ 80,456 $ 71,953 $ 120,724 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents financial assets and liabilities at fair value as of the dates presented: April 30, 2016 January 30, 2016 May 2, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 (in thousands) Financial assets: Cash and equivalents $ 59,462 $ 59,462 — — $ 32,495 $ 32,495 — — $ 206,868 $ 206,868 — Short-term investments (a) 97,612 5,676 $ 91,936 — 226,027 2,127 $ 223,900 — 128,705 — $ 128,705 Long-term investments (a) 80,456 286 80,170 — 71,953 181 71,772 — 120,724 — 120,724 Cost method investments (b) 7,250 — — $ 7,250 6,000 — — $ 6,000 — — — Note receivable from Town Shoes (c) 43,198 — 43,198 — 33,311 — 33,311 — 46,686 — 46,686 Total financial assets $ 287,978 $ 65,424 $ 215,304 $ 7,250 $ 369,786 $ 34,803 $ 328,983 $ 6,000 $ 502,983 $ 206,868 $ 296,115 Financial liabilities: Stock appreciation rights (d) $ 262 — $ 262 — $ 561 — $ 561 — $ 5,231 — $ 5,231 Contingent consideration (e) 57,445 — — $ 57,445 — — — — — — — Total financial liabilities $ 57,707 $ — $ 262 $ 57,445 $ 561 $ — $ 561 $ — $ 5,231 $ — $ 5,231 |
Schedule of Cost Method Investments [Table Text Block] | The following table presents activity related to Level 3 fair value measurement for cost method investments for the periods presented: Fiscal period ended April 30, 2016 January 30, 2016 (in thousands) Carrying value, beginning of period $ 6,000 — Additional cost method investment 1,250 $ 6,000 Carrying value, end of period $ 7,250 $ 6,000 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | The following table presents activity related to Level 3 fair value measurements for DSW Inc.'s contingent consideration liability for the period presented: Three months ended April 30, 2016 (in thousands) Balance, acquisition date of contingent consideration $ 56,000 Change in fair value of contingent consideration 1,445 Balance, end of quarter $ 57,445 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | The balance sheet caption "Property and equipment, net" was comprised of the following as of the periods presented: April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Land $ 1,110 $ 1,110 $ 1,110 Furniture, fixtures and equipment 392,346 385,780 344,763 Software 125,530 120,567 108,991 Buildings, building and leasehold improvements 391,552 385,861 362,242 Total property and equipment 910,538 893,318 817,106 Accumulated depreciation and amortization (536,559 ) (519,077 ) (470,194 ) Property and equipment, net $ 373,979 $ 374,241 $ 346,912 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | The balance sheet caption "Accrued expenses" was comprised of the following as of the periods presented: April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Gift cards and merchandise credits $ 39,385 $ 43,446 $ 36,404 Compensation 18,145 8,042 17,332 Taxes 20,944 17,004 34,312 Customer loyalty program 10,987 10,084 16,009 Other accrued expenses (1) 36,305 29,224 32,317 Total accrued expenses $ 125,766 $ 107,800 $ 136,374 |
Non-Current Liabilities(Tables)
Non-Current Liabilities(Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-current Liabilities | The balance sheet caption "Non-current liabilities" was comprised of the following as of the periods presented: April 30, 2016 January 30, 2016 May 2, 2015 (in thousands) Construction and tenant allowances $ 87,002 $ 86,777 $ 85,664 Deferred rent 37,931 37,650 38,007 Other non-current liabilities (1) 17,760 16,332 17,722 Total non-current liabilities $ 142,693 $ 140,759 $ 141,393 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | DSW segment ABG segment Other (1) Total (in thousands) Three months ended April 30, 2016 Net sales $ 623,032 $ 43,139 $ 15,096 $ 681,267 Gross profit 191,419 10,813 2,125 204,357 Capital expenditures 17,350 324 — 17,674 Three months ended May 2, 2015 Net sales $ 612,211 $ 43,275 — $ 655,486 Gross profit 204,062 8,996 — 213,058 Capital expenditures 27,235 107 — 27,342 Total Assets As of April 30, 2016 $ 1,074,766 $ 105,556 $ 276,668 $ 1,456,990 As of January 30, 2016 1,126,179 105,259 137,671 1,369,109 As of May 2, 2015 1,261,342 110,249 150,369 1,521,960 |
Business Operations Store Data
Business Operations Store Data (Details) | 3 Months Ended |
Apr. 30, 2016 | |
Schedule of Stores Supplied With Merchandise [Line Items] | |
Number of Reportable Segments | 2 |
DSW Segment [Abstract] | |
Number of Stores | 478 |
Number of States in which Entity Operates | 42 |
Number of new stores opened | 10 |
Affiliated Business Group [Abstract] | |
Number of retailers operated as leased departments | 3 |
Number of new leased departments added | 7 |
Number of leased departments ceased | 1 |
Stein Mart Stores [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 281 |
Gordmans Stores [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 103 |
Frugal Fannie's Stores [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 1 |
Town [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 189 |
Town DSW [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 17 |
Acquisition and Equity Method43
Acquisition and Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | May. 09, 2014 | |
Town Shoe Acquisition, Purchase Price for Ownership Interest (CAD) | $ 75,100 | ||
Town Shoe Acquisition, Purchase Price for Ownership Interest (USD) | $ 68,900 | ||
Town Shoe Acquisition, Ownership Interest Acquired | 46.30% | 49.20% | |
Town Shoe Acquisition, Voting Control Interest Acquired | 50.00% | ||
Foreign Currency Purchase (CAD) | $ 100,000 | ||
Foreign Currency Purchase (USD) | 79,000 | ||
Nonoperating Income (Expense) | 164 | $ 3,312 | |
Foreign Currency Transaction Gain (Loss), Unrealized | 8,200 | ||
Business Combination, Consideration Transferred | 62,500 | ||
Business Combination, Contingent Consideration, Liability | 56,000 | 0 | |
Net sales | 681,267 | 655,486 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1,623 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 30,152 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 191 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,221 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 54,785 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 41,301 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | (12,862) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 116,411 | ||
Payments to Acquire Intangible Assets | 41,300 | ||
Non-Compete Agreement | 5,900 | ||
Finite-Lived Customer Relationships, Gross | 24,400 | ||
Finite-Lived Trade Names, Gross | 11,000 | ||
Other [Member] | |||
Net sales | $ 15,096 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) shares in Millions | Apr. 30, 2016shares |
Schottenstein Affiliates [Abstract] | |
Related party transaction Outstanding common shares owned (in hundredths) | 18.00% |
Related party transaction Combined voting power of outstanding common shares (in hundredths) | 51.00% |
Class A Common Shares | |
Schottenstein Affiliates [Abstract] | |
Related Party Transaction, Number of shares owned by related party (in shares) | 7.2 |
Class B Common Shares | |
Schottenstein Affiliates [Abstract] | |
Related Party Transaction, Number of shares owned by related party (in shares) | 7.7 |
Earnings per Share and Shareh45
Earnings per Share and Shareholders' Equity Calculation of Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Reconciliation of the number of shares used in the calculation of diluted earnings (loss) per share [Abstract] | ||
Basic shares | 81,953 | 88,524 |
Assumed exercise of dilutive stock options | 478 | 860 |
Assumed exercise of dilutive RSUs and PSUs | 274 | 240 |
Diluted shares | 82,705 | 89,624 |
Earnings per Share and Shareh46
Earnings per Share and Shareholders' Equity Anti-Dilutive Securities (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Options, RSUs and PSUs [Member] | ||
Diluted earnings per share [Abstract] | ||
Securities outstanding not included in computation of diluted earnings per share | 3.1 | 1.2 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 | |
DSW Stock-Based Compensation Plans [Abstract] | |||
Annual vesting percentage (in hundredths) | 20.00% | ||
Additional Disclosures [Abstract] | |||
Share-based compensation expense | $ 3,657 | $ 3,563 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 18,126 | ||
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 3,849 | ||
Granted | 835 | ||
Exercised | (17) | ||
Forfeited | (16) | ||
Outstanding, end of period (in shares) | 4,651 | 3,849 | |
Exercisable, end of period (in shares) | 2,347 | ||
Additional Disclosures [Abstract] | |||
Share-based compensation expense | $ 1,677 | $ 1,996 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.50% | 1.40% | |
Expected volatility of DSW Inc. Common Shares | 36.00% | 37.90% | |
Expected option term | 5 years 5 months 1 day | 5 years 1 month 4 days | |
Dividend yield | 3.00% | 2.10% | |
Weighted average grant date fair value (in dollars per share) | $ 6.59 | $ 10.24 | |
Equity instruments other than options [Roll forward] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 5 months | ||
Stock Options [Member] | |||
Additional Disclosures [Abstract] | |||
Share-based compensation expense | $ 300 | $ 3,500 | |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 300 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 0.20% | 0.40% | 0.20% |
Expected volatility of DSW Inc. Common Shares | 30.70% | 33.00% | 25.70% |
Expected option term | 1 month 1 day | 5 months 1 day | 12 months |
Dividend yield | 2.50% | 2.50% | 2.40% |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 9,968 | ||
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 372 | ||
Granted | 171 | ||
Exercised | (81) | ||
Forfeited | (7) | ||
Outstanding, end of period (in shares) | 455 | 372 | |
Exercisable, end of period (in shares) | 0 | ||
Additional Disclosures [Abstract] | |||
Share-based compensation expense | $ 1,230 | $ 867 | |
Equity instruments other than options [Roll forward] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 2 days | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 6,178 | ||
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 293 | ||
Granted | 109 | ||
Exercised | (32) | ||
Forfeited | (2) | ||
Outstanding, end of period (in shares) | 368 | 293 | |
Exercisable, end of period (in shares) | 0 | ||
Additional Disclosures [Abstract] | |||
Share-based compensation expense | $ 682 | 658 | |
Equity instruments other than options [Roll forward] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months | ||
Director Stock Units [Member] | |||
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 305 | ||
Granted | 5 | ||
Exercised | (2) | ||
Forfeited | 0 | ||
Outstanding, end of period (in shares) | 308 | 305 | |
Exercisable, end of period (in shares) | 0 | ||
Additional Disclosures [Abstract] | |||
Share-based compensation expense | $ 68 | $ 42 | |
Stock Compensation Plan [Member] | |||
DSW Stock-Based Compensation Plans [Abstract] | |||
Number of shares authorized (in shares) | 8,500 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 | |
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | $ 97,612 | $ 226,027 | $ 128,705 |
Long-term investments | 80,456 | 71,953 | 120,724 |
Current available for sale Securities Unrecognized Holding Gain | 411 | 477 | 38 |
Long-Term Available for Sale Securities Unrecognized Holding Gain | 22 | 22 | 38 |
Current Available for Sale Securities Unrecognized Holding Loss | (35) | (435) | (112) |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | (314) | (222) | (325) |
Investment disclosure [Abstract] | |||
Short-term investments(a) | 97,612 | 226,027 | 128,705 |
Carrying value | Available-for-sale Securities [Member] | |||
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | 97,236 | 225,985 | 128,779 |
Long-term investments | $ 80,748 | $ 72,153 | $ 121,011 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | |
Assets: | |||
Cash and equivalents | $ 59,462,000 | $ 206,868,000 | $ 32,495,000 |
Short-term investments(a) | 97,612,000 | 128,705,000 | 226,027,000 |
Available-for-sale Securities, Noncurrent | 80,456,000 | 120,724,000 | 71,953,000 |
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment | 7,250,000 | 0 | 6,000,000 |
Notes Receivable, Fair Value Disclosure | 43,198,000 | 46,686,000 | 33,311,000 |
Total assets | 287,978,000 | 502,983,000 | 369,786,000 |
Cost Method Investments | 1,250,000 | 6,000,000 | |
Business Combination, Contingent Consideration, Liability | 56,000,000 | 0 | |
Other Liabilities, Fair Value Disclosure | 262,000 | 5,231,000 | 561,000 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 57,707,000 | 5,231,000 | 561,000 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |||
Impairment of Long-Lived Assets Held-for-use | 0 | 418,000 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 1,445,000 | 0 | |
Commitments and Contingencies | 57,445,000 | 0 | 0 |
Level 1 [Member] | |||
Assets: | |||
Cash and equivalents | 59,462,000 | 206,868,000 | 32,495,000 |
Short-term investments(a) | 5,676,000 | 0 | 2,127,000 |
Available-for-sale Securities, Noncurrent | 286,000 | 0 | 181,000 |
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment | 0 | 0 | 0 |
Notes Receivable, Fair Value Disclosure | 0 | 0 | 0 |
Total assets | 65,424,000 | 206,868,000 | 34,803,000 |
Other Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Level 2 [Member] | |||
Assets: | |||
Cash and equivalents | 0 | 0 | 0 |
Short-term investments(a) | 91,936,000 | 128,705,000 | 223,900,000 |
Available-for-sale Securities, Noncurrent | 80,170,000 | 120,724,000 | 71,772,000 |
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment | 0 | 0 | 0 |
Notes Receivable, Fair Value Disclosure | 43,198,000 | 46,686,000 | 33,311,000 |
Total assets | 215,304,000 | 296,115,000 | 328,983,000 |
Other Liabilities, Fair Value Disclosure | 262,000 | 5,231,000 | 561,000 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 262,000 | $ 5,231,000 | 561,000 |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment | 7,250,000 | 6,000,000 | |
Total assets | 7,250,000 | $ 6,000,000 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 57,445,000 | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |||
Commitments and Contingencies | $ 57,445,000 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | |
Credit Facility [Abstract] | |||
Payments to Acquire Property, Plant, and Equipment | $ (26,039) | $ (26,710) | |
Credit Facility, available capacity | 100,000 | $ 50,000 | $ 100,000 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 |
Letter of Credit Agreement (Det
Letter of Credit Agreement (Details) - USD ($) $ in Millions | Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 |
Letter of Credit [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 7.1 | $ 7.1 | $ 4.4 |
Restricted Cash and Investments, Current | 8.1 | $ 7.7 | $ 6.6 |
Letter of Credit Agreement, Maximum Borrowing Capacity | $ 50 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 |
Property and equipment [Abstract]: | |||
Land | $ 1,110 | $ 1,110 | $ 1,110 |
Furniture, fixtures and equipment | 392,346 | 385,780 | 344,763 |
Capitalized Computer Software, Gross | 125,530 | 120,567 | 108,991 |
Buildings, building and leasehold improvements | 391,552 | 385,861 | 362,242 |
Total property and equipment | 910,538 | 893,318 | 817,106 |
Accumulated depreciation and amortization | (536,559) | (519,077) | (470,194) |
Property and equipment, net | $ 373,979 | $ 374,241 | $ 346,912 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 |
Payables and Accruals [Line Items] | |||
Gift cards and merchandise credits | $ 39,385 | $ 43,446 | $ 36,404 |
Compensation | 18,145 | 8,042 | 17,332 |
Taxes | 20,944 | 17,004 | 34,312 |
Customer loyalty program | 10,987 | 10,084 | 16,009 |
Other accrued expenses (1) | 36,305 | 29,224 | 32,317 |
Total accrued expenses | $ 125,766 | $ 107,800 | $ 136,374 |
Non-Current Liabilities (Detail
Non-Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 |
Other Liabilities Disclosure [Abstract] | |||
Construction and tenant allowances | $ 87,002 | $ 86,777 | $ 85,664 |
Deferred rent | 37,931 | 37,650 | 38,007 |
Other non-current liabilities (1) | 17,760 | 16,332 | 17,722 |
Total non-current liabilities | 142,693 | $ 140,759 | $ 141,393 |
Contractual Obligation | $ 9,200 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | |
Segment information [Abstract] | |||
Net sales | $ 681,267 | $ 655,486 | |
Gross profit | 204,357 | 213,058 | |
Capital Expenditures | 17,674 | 27,342 | |
Total assets | 1,456,990 | 1,521,960 | $ 1,369,109 |
Goodwill | 80,684 | 25,899 | 25,899 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 54,785 | ||
Affiliated Business Group segment [Member] | |||
Segment information [Abstract] | |||
Net sales | 43,139 | 43,275 | |
Gross profit | 10,813 | 8,996 | |
Capital Expenditures | 324 | 107 | |
Total assets | 105,556 | 110,249 | 105,259 |
Other [Member] | |||
Segment information [Abstract] | |||
Net sales | 15,096 | 0 | |
Gross profit | 2,125 | 0 | |
Capital Expenditures | 0 | 0 | |
Total assets | 276,668 | 150,369 | 137,671 |
DSW [Member] | |||
Segment information [Abstract] | |||
Net sales | 623,032 | 612,211 | |
Gross profit | 191,419 | 204,062 | |
Capital Expenditures | 17,350 | 27,235 | |
Total assets | 1,074,766 | $ 1,261,342 | $ 1,126,179 |
DSW [Member] | |||
Segment information [Abstract] | |||
Goodwill | $ 25,900 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Effective Income Tax Rate, Continuing Operations | 38.90% | 38.10% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Apr. 30, 2016USD ($) |
Contractual Obligations [Abstract] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 2.7 |
New store locations for which lease agreements signed, number | 32 |
Operating Leases, future minimum payments due, current, new stores | $ 9.1 |
Incentive to Lessee | $ 13.6 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees Related to Discontinued Operations (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2016USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |
Receipt of cash from bankruptcy claim | $ 2 |
Subsequent Events Dividend Decl
Subsequent Events Dividend Declaration (Details) | 3 Months Ended |
Apr. 30, 2016$ / shares | |
Subsequent Events [Abstract] | |
Common Stock, Dividends, Per Share, Declared | $ 0.20 |
Dividends Payable, Date to be Paid | Jun. 30, 2016 |
Dividends Payable, Date of Record | Jun. 16, 2016 |