Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 29, 2017 | Aug. 18, 2017 | |
Class of Stock [Line Items] | ||
Entity Registrant Name | DSW Inc. | |
Entity Central Index Key | 1,319,947 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 29, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 72,616,519 | |
Class B Common Shares | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,732,786 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Net sales | $ 680,409 | $ 658,944 | $ 1,371,511 | $ 1,340,211 |
Cost of sales | (483,437) | (472,083) | (979,310) | (948,993) |
Operating expenses | (149,057) | (145,088) | (302,321) | (299,284) |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (1,168) | (2,166) | (2,252) | (3,611) |
Operating profit | 46,747 | 39,607 | 87,628 | 88,323 |
Interest expense | (47) | (50) | (94) | (99) |
Interest income | 708 | 673 | 1,316 | 1,243 |
Interest income, net | 661 | 623 | 1,222 | 1,144 |
Nonoperating Income (Expense) | (679) | 100 | (2,183) | 264 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 46,729 | 40,330 | 86,667 | 89,731 |
Income tax provision | (18,349) | (15,716) | (34,014) | (34,794) |
Income (loss) from Town Shoes | 219 | 418 | (1,087) | 109 |
Net income | $ 28,599 | $ 25,032 | $ 51,566 | $ 55,046 |
Basic and diluted earnings (loss) per share [Abstract]: | ||||
Basic earnings per share | $ 0.36 | $ 0.31 | $ 0.64 | $ 0.67 |
Diluted earnings per share | $ 0.35 | $ 0.30 | $ 0.64 | $ 0.67 |
Shares used in per share calculations [Abstract]: | ||||
Basic shares | 80,317 | 82,053 | 80,267 | 82,003 |
Diluted shares | 80,714 | 82,655 | 80,729 | 82,691 |
Condensed Consolidated Comprehe
Condensed Consolidated Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,599 | $ 25,032 | $ 51,566 | $ 55,046 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 10,657 | (4,903) | 6,537 | 7,246 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (23) | 150 | 33 | 276 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 527 | 0 | 2,107 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 11,161 | (4,753) | 8,677 | 7,522 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 39,760 | $ 20,279 | $ 60,243 | $ 62,568 |
Condensed Consolidated Compreh4
Condensed Consolidated Comprehensive Income Statement Of Other Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Statement of Comprehensive Income (Parenthetical) [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 55 | $ 14 | $ 0 | $ 130 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 65 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Assets [Abstract]: | |||
Cash and cash equivalents | $ 89,305 | $ 110,657 | $ 62,324 |
Short-term investments | 182,062 | 98,530 | 103,467 |
Accounts receivable | 16,596 | 18,456 | 18,848 |
Accounts receivable from related parties | 1,146 | 550 | 81 |
Inventories | 527,305 | 499,995 | 556,183 |
Prepaid expenses and other current assets | 38,469 | 31,074 | 30,040 |
Prepaid expenses to related parties | 3 | 4 | 12 |
Total current assets | 854,886 | 759,266 | 770,955 |
Property and equipment, net | 364,552 | 375,251 | 379,643 |
Long-term investments | 0 | 77,904 | 77,901 |
Goodwill | 79,689 | 79,689 | 81,043 |
Deferred income taxes | 18,765 | 14,934 | 20,690 |
Prepaid expenses to related parties, non-current | 715 | 768 | 821 |
Equity Method Investments | 10,350 | 15,830 | 17,261 |
Notes Receivable, Related Parties, Noncurrent | 60,094 | 53,121 | 50,200 |
Intangible Assets, Net (Excluding Goodwill) | 33,065 | 35,108 | 39,316 |
Other assets | 17,429 | 16,605 | 21,145 |
Total assets | 1,439,545 | 1,428,476 | 1,458,975 |
Liabilities and Shareholders' equity [Abstract]: | |||
Accounts payable | 164,659 | 185,497 | 198,584 |
Accounts payable to related parties | 718 | 774 | 656 |
Accrued expenses | 121,934 | 130,334 | 115,192 |
Total current liabilities | 287,311 | 316,605 | 314,432 |
Non-current liabilities | 142,499 | 141,179 | 143,562 |
Business Combination, Contingent Consideration, Liability | 36,456 | 33,204 | 59,611 |
Liabilities | 466,266 | 490,988 | 517,605 |
Commitments and Contingencies | 0 | 0 | 0 |
Shareholders’ equity [Abstract]: | |||
Common Stock, Value, Issued | 953,868 | 946,351 | 936,572 |
Preferred shares, no par value; 100,000 authorized; no shares issued or outstanding | 0 | 0 | 0 |
Treasury Stock, Value | (316,531) | (316,531) | (266,531) |
Retained earnings | 366,199 | 346,602 | 309,503 |
Basis Difference Related to Acquisition of Commonly Controlled Entity | (24,993) | (24,993) | (24,993) |
Accumulated other comprehensive loss | (5,264) | (13,941) | (13,181) |
Total shareholders' equity | 973,279 | 937,488 | 941,370 |
Total liabilities and shareholders' equity | $ 1,439,545 | $ 1,428,476 | $ 1,458,975 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands, $ / shares in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
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) | 85,201 | 85,038 | 84,570 |
Common Shares, outstanding (in shares) | 72,610 | 72,447 | 74,359 |
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]: | |||
Treasury Stock, Shares | 12,591 | 12,591 | 10,211 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 51,566 | $ 55,046 |
Adjustments to reconcile net income (loss) to net cash and equivalents provided by operating activities from continuing operations: | ||
Depreciation and amortization | 41,972 | 40,389 |
Share-based Compensation | 7,851 | 7,316 |
Deferred income taxes | (3,831) | 1,125 |
Loss from Town Shoes | 1,087 | (109) |
Accretion Expense | 2,252 | 3,611 |
Loss on disposal of long-lived assets | 217 | 702 |
Foreign Currency Transaction Gain (Loss), before Tax | 2,161 | 0 |
Investment Income, Net, Amortization of Discount and Premium | 314 | 759 |
Change in working capital, other assets and liabilities: | ||
Accounts receivable | 1,264 | (1,842) |
Inventories | (27,310) | (41,795) |
Prepaid expenses and other current assets | (8,061) | 7,946 |
Accounts payable | (18,949) | (17,059) |
Accrued expenses | (9,016) | 3,256 |
Other | 3,120 | 1,799 |
Net Cash Provided by (Used in) Operating Activities | 44,637 | 61,144 |
Cash flows from investing activities: | ||
Cash paid for property and equipment | (28,139) | (51,934) |
Purchases of available-for-sale investments | (83,872) | (57,484) |
Sales of available-for-sale investments | 82,436 | 178,980 |
Origination of Notes Receivable from Related Parties | (5,689) | (6,641) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (60,411) |
Net Cash Provided by (Used in) Investing Activities | (35,264) | 2,510 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 358 | 429 |
Proceeds from (Payments for) Other Financing Activities | 847 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | (692) | (1,104) |
Dividends paid | (31,969) | (32,683) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (31,456) | (33,358) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (22,083) | 30,296 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 115,311 | 40,171 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | 93,228 | 70,467 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for income taxes | 46,092 | 25,685 |
Non-cash operating, investing and financing activities: | ||
Balance of accounts payable and accrued expenses due to property and equipment purchases | 5,711 | 4,944 |
Preliminary Business Combination, Contingent Consideration Liability | $ 0 | $ 56,000 |
Business Operations and Basis o
Business Operations and Basis of Presentation | 6 Months Ended |
Jul. 29, 2017 | |
Business Operations and Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation [Text Block] | BUSINESS OPERATIONS AND BASIS OF PRESENTATION Business Operations- DSW Inc., an Ohio corporation, together with its wholly-owned subsidiaries, is the destination for fabulous footwear brands and accessories at a great value every single day. We offer a wide assortment of brand name dress, casual and athletic footwear and accessories for women, men and kids. We conduct business in two reportable segments: the DSW segment ("DSW"), which includes DSW stores and dsw.com, and the Affiliated Business Group ("ABG") segment. The ABG segment partners with three other retailers to help build and optimize their in-store and online footwear businesses. ABG supplies merchandise for the shoe departments of Stein Mart, Gordmans, and Frugal Fannie's. On March 13, 2017 , Gordmans filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code and announced its plan to liquidate inventory and other assets. Stage Stores, Inc. acquired 58 of the Gordmans' stores and we have signed an agreement to provide services for these stores through the end of fiscal 2017. We also have an equity investment in Town Shoes Limited ("Town Shoes"). Town Shoes is the market leader in Canada for the sale of branded footwear offered in stores and on e-commerce sites under the banners of The Shoe Company, Shoe Warehouse, Town Shoes and DSW. During fiscal 2016, we completed several transactions that supported our efforts to grow market share within footwear and accessories domestically and internationally. On March 4, 2016 , we acquired Ebuys, Inc. ("Ebuys"), a leading off price footwear and accessories retailer operating in digital marketplaces. Ebuys sells products to customers located in North America, Europe, Australia and Asia. On August 2, 2016, we signed an agreement with the Apparel Group as an exclusive franchise partner in the Gulf Coast region of the Middle East. Under this franchise agreement, the first franchise store opened during the second quarter of fiscal 2017, and we plan to expand the DSW banner by up to 40 stores across the territory. Basis of Presentation- The accompanying unaudited, condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The condensed consolidated financial position, results of operations and cash flows for these interim periods are not necessarily indicative of the results that may be expected in future periods. The balance sheet at January 28, 2017 has been derived from the audited financial statements at that date. The financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 , filed with the U.S. Securities and Exchange Commission on March 23, 2017. Fiscal Year- Our fiscal year ends on the Saturday nearest to January 31. References to a fiscal year refer to the calendar year in which the fiscal year begins. |
Acquisition and Equity Method I
Acquisition and Equity Method Investment | 6 Months Ended |
Jul. 29, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ACQUISITION AND EQUITY INVESTMENT Acquisition of Ebuys- On March 4, 2016 , we acquired 100% ownership of Ebuys for cash and future amounts to be paid to the sellers of Ebuys contingent upon achievement of certain milestones. During fiscal 2016 , we had purchase price adjustments based on working capital adjustments and measurement period adjustments of the contingent consideration liability, based on additional information about facts and circumstances that existed at the acquisition date that were obtained after that date. We also made various measurement period adjustments for the assets and liabilities acquired. The preliminary and final purchase price and the allocation of the total consideration to the fair values of the assets and liabilities acquired consisted of the following: Preliminary Purchase Price as of March 4, 2016 Adjustments Final Purchase Price as of January 28, 2017 (in thousands) Purchase price: Cash consideration $ 60,411 $ (635 ) $ 59,776 Contingent consideration 56,000 (2,645 ) 53,355 $ 116,411 $ (3,280 ) $ 113,131 Fair value of assets and liabilities acquired: Accounts and other receivables $ 1,623 $ (287 ) $ 1,336 Inventory 30,152 18 30,170 Other current assets 191 335 526 Property and equipment 1,221 22 1,243 Goodwill 54,785 (995 ) 53,790 Intangible assets 41,301 (2,600 ) 38,701 Accounts payable and other long-term liabilities (12,862 ) 227 (12,635 ) $ 116,411 $ (3,280 ) $ 113,131 The final fair value of intangible assets includes $22.3 million for online retailer and customer relationships based on using the excess earnings method, $11.0 million for tradenames based on using the relief from royalty method, and $5.4 million for non-compete agreements based on using the with-and-without method. The categorization of the fair value framework used for these methods are considered Level 3 due to the subjective nature of the unobservable inputs used to determine the fair value. The goodwill represents the intangible assets that do not qualify for separate recognition and is primarily the result of expected synergies, vertical integration as a market for selling aged inventory, online presence, and the acquired workforce. Goodwill related to this acquisition is deductible for income tax purposes. During fiscal 2016 and 2017, we also made adjustments to the contingent consideration liability based on Ebuys' results of operations and revised projections for the contingent periods and accretion in value. These adjustments were not considered measurement period adjustments and were recognized as an adjustment to income from operations. Equity Investment in Town Shoes- In May 2014, we acquired a 49.2% interest in Town Shoes for $75.1 million Canadian dollars ("CAD") ( $68.9 million United States dollars ("USD")), which included the purchase of an unsecured subordinated note from Town Shoes issued on February 14, 2012 that earns payment-in-kind interest at 12% and matures on February 14, 2022. As of July 29, 2017 , our ownership percentage was 46.3% . The dilution of our ownership is due to Town Shoes' employee exercise of stock options. Our ownership stake provides 50% voting control and board representation equal to the co-investor. Additionally, the Town Shoes co-investor holds a put option to sell the remaining interest in Town Shoes in fiscal 2017 to the Company and for the subsequent two years. We hold a call option to purchase the remaining interest in Town Shoes in fiscal 2018, and for the subsequent two years, if the Town Shoe co-investor has not exercised their put option. During fiscal 2015, we invested $100 million CAD in available-for-sale securities denominated in CAD in anticipation of funding the future purchase of the remaining interest in Town Shoes. As of July 29, 2017 , these available-for-sale securities are classified as short-term investments based on management's intent to exercise the call option to purchase the remaining interest in Town Shoes in the first half of fiscal 2018. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jul. 29, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Accounting Policies - The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 . Principles of Consolidation- The consolidated 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 USD, unless otherwise noted. Use of Estimates- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Significant estimates are required as a part of sales returns, depreciation, amortization, inventory valuation, contingent consideration liability, customer loyalty program reserve, recoverability of long-lived assets and intangible assets, legal reserves, accrual for lease obligations and establishing reserves for self-insurance. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results could differ from these estimates. Cash, Cash Equivalents, and Restricted Cash - Cash and cash equivalents represent cash, money market funds and credit card receivables that generally settle within three days. Restricted cash represents cash that is restricted as to withdrawal or usage and consists of a mandatory cash deposit with the lender for outstanding letters of credit. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Cash and cash equivalents $ 89,305 $ 110,657 $ 62,324 Restricted cash, included in prepaid expenses and other current assets 3,923 4,654 8,143 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 93,228 $ 115,311 $ 70,467 Fair Value- 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. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to the subjectivity associated with the inputs to fair value measurements as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Quoted prices for similar assets or liabilities in active markets or inputs that are observable. • Level 3 - Unobservable inputs in which little or no market activity exists. Accumulated Other Comprehensive Income (Loss)- Changes for the balances of each component of accumulated other comprehensive loss were as follows (all amounts are net of tax): Six months ended July 29, 2017 July 30, 2016 Foreign Currency Translation Available-for-Sale Securities Total Foreign Currency Translation Available-for-Sale Securities Total (in thousands) Accumulated other comprehensive loss - beginning of period $ (13,699 ) $ (242 ) $ (13,941 ) $ (20,530 ) $ (173 ) $ (20,703 ) Other comprehensive income (loss) before reclassifications 6,537 33 6,570 7,246 276 7,522 Amounts reclassified to non-operating income 2,161 (54 ) 2,107 — — — Other comprehensive income (loss) 8,698 (21 ) 8,677 7,246 276 7,522 Accumulated other comprehensive income (loss) - end of period $ (5,001 ) $ (263 ) $ (5,264 ) $ (13,284 ) $ 103 $ (13,181 ) Adopted Accounting Standards- In the first quarter of fiscal 2017, we adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting , which eliminated the requirement to recognize excess tax benefits in common shares paid-in capital and the requirement to evaluate tax deficiencies for common shares paid-in capital or income tax expense classification, and provides for these benefits or deficiencies to be recorded as an income tax expense or benefit on a prospective basis. For the consolidated statements of cash flows, excess tax benefits related to stock-based compensation is no longer presented, on a retroactive basis, as a financing activity cash inflow and as an operating activity cash outflow. As we did not have any excess tax benefits related to stock-based compensation during the six months ended July 30, 2016 , the adoption of ASU 2016-09 did not result in a change in the activity presented in the statements of cash flows. In the first quarter of fiscal 2017, we early adopted ASU 2016-18, Statement of Cash Flows - Restricted Cash, which requires that the consolidated statements of cash flows provides the change in the total of cash, cash equivalents, and restricted cash. As a result of this adoption, we no longer show the changes in restricted cash balances as a component of cash flows from investing activities but instead include the balances of restricted cash together with cash and cash equivalents for the beginning and end of the periods presented. As a result of adopting ASU 2016-18, we adjusted the statements of cash flows on a retroactive basis as follows: Six Months Ended (in thousands) Net cash provided by investing activities, as previously reported $ 2,043 Eliminated the impact of the increase in restricted cash 467 Net cash provided by investing activities, as adjusted $ 2,510 Net increase in cash and cash equivalents, as previously reported $ 29,829 Eliminated the impact of the increase in restricted cash 467 Net increase in cash, cash equivalents, and restricted cash, as adjusted $ 30,296 Cash and cash equivalents, beginning of period, as previously reported $ 32,495 Included restricted cash 7,676 Cash, cash equivalents, and restricted cash, beginning of period, as adjusted $ 40,171 Cash and cash equivalents, end of period, as previously reported $ 62,324 Included restricted cash 8,143 Cash, cash equivalents, and restricted cash, end of period, as adjusted $ 70,467 Recent Accounting Pronouncements- In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current guidance. Under ASU 2014-09, companies will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures and provide more comprehensive guidance for transactions such as service revenue and contract modifications. The standard is effective for us in the first quarter of fiscal 2018, which we plan to adopt using the full retrospective method where each prior period presented is restated. We have completed an assessment identifying areas of impact to our financial statements, including sales returns, licensing arrangements, gift cards, and our loyalty and co-branded credit card programs. The adoption of the new standard will result in changes in classification between net sales, other revenues, cost of sales, and operating expenses. For income from breakage of gift cards, which is currently recognized as a reduction to operating expenses when the redemption of the gift card is deemed remote, the new standard will require classification within net sales recognized proportionately over the expected redemption period. Also upon adoption of the standard, we will no longer use the incremental cost method and record to cost of sales for our loyalty program, rather we will use a deferred revenue model. We do not expect the adoption of ASU 2014-09 will have a material impact to our reported net sales, operating profit, net income, shareholders’ equity or cash flows, with the primary impacts of adopting the new standard relating to changes in classification of amounts shown on the consolidated financial statements and additional disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which will change how lessees account for leases. For most leases, a liability will be recorded on the balance sheet based on the present value of future lease obligations with a corresponding right-of-use asset. Primarily for those leases currently classified by us as operating leases, we will recognize a single lease cost on a straight-line basis based on the combined amortization of the lease obligation and the right-of-use asset. Other leases will be required to be accounted for as financing arrangements similar to current accounting for capital leases. Upon transition, we will recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The standard is effective for us in the first quarter of fiscal 2019 with early adoption permitted. We will not early adopt ASU 2016-02 and we expect the standard will have a material impact to our consolidated balance sheets. We are continuing to assess and evaluate the full impact of the standard on our financial statements and we are developing an implementation plan. In January 2017, the FASB issued ASU 2017-04, Simplifying the Accounting for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating the requirement to determine the implied fair value of goodwill to measure an impairment of goodwill. Rather, goodwill impairment charges will be calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. The standard is effective for us for our annual or any interim goodwill impairment tests during fiscal 2020 and early adoption is permitted. We intend to early adopt ASU 2017-04 for our annual or any interim goodwill impairment tests during fiscal 2017. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 29, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Accounts receivable, accounts payable, and prepaid expenses associated with related parties are separately presented on the consolidated balance sheets. Accounts receivable from and payables to related parties normally settle in the form of cash in 30 to 60 days. Schottenstein Affiliates As of July 29, 2017 , the Schottenstein Affiliates, entities owned or controlled by Jay L. Schottenstein, the executive chairman of our Board of Directors, and members of his family, beneficially owned approximately 19% of the Company's outstanding Common Shares, representing approximately 51% of the combined voting power. As of July 29, 2017 , the Schottenstein Affiliates beneficially owned 7.3 million Class A Common Shares and 7.7 million Class B Common Shares. Leases with Related Parties- We lease our fulfillment center and certain store locations owned by Schottenstein Affiliates. During the three months ended July 29, 2017 and July 30, 2016 , we recorded rent expense from leases with Schottenstein Affiliates of $2.3 million and $2.0 million , respectively. During the six months ended July 29, 2017 and July 30, 2016 , we recorded rent expense from leases with Schottenstein Affiliates of $4.6 million and $4.1 million , respectively. Basis Difference Related to Acquisition of Commonly Controlled Entity- The basis difference related to acquisition of commonly controlled entity balance, as shown on our consolidated balance sheets, relates to a legal entity acquisition in fiscal 2012 from certain Schottenstein Affiliates. The legal entity owned property that was previously leased by us. As this was a transaction between entities under common control, there was no adjustment to the historical cost carrying amounts of assets transferred to the Company. The difference between the historical cost carrying amounts and the consideration transferred was reflected as an equity transaction. Other Purchases and Services- During the three months ended July 29, 2017 and July 30, 2016 , we had other purchases and services from Schottenstein Affiliates of $0.4 million and $0.3 million , respectively. During the six months ended July 29, 2017 and July 30, 2016 , we had other purchases and services from Schottenstein Affiliates of $0.7 million and $0.6 million , respectively. Town Shoes Our ownership percentage in Town Shoes is 46.3% , which provides us a 50% voting control and board representation equal to the co-investor, and is treated as an equity investment. Management Agreement- We have a management agreement with Town Shoes under which we provide certain information technology and management services. During the three and six months ended July 29, 2017 , we recognized income of $0.3 million and $0.6 million , respectively. During the three and six months ended July 30, 2016 , no services were provided. License Agreement- We license the use of our tradename and trademark, DSW Designer Shoe Warehouse, to Town Shoes for a royalty fee based on a percentage of net sales from its Canadian DSW stores, which are included in net sales. The license is exclusive and non-transferable for use in Canada. During the three months ended July 29, 2017 and July 30, 2016 , we recognized royalty income of $0.2 million and $0.1 million , respectively. During the six months ended July 29, 2017 and July 30, 2016 , we recognized royalty income of $0.3 million and $0.2 million , respectively. Other Purchases and Services- During the three and six months ended July 29, 2017 , Town had other purchases and services from us of $0.7 million and $1.6 million , respectively. During the three and six months ended July 30, 2016 , no other purchases and services were provided. David Duong, CEO of Ebuys On March 4, 2016 , we acquired 100% ownership of Ebuys from its co-founders, including David Duong, who continues to serve on the board of directors of Ebuys, for cash and future amounts to be paid to the co-founders contingent upon achievement of certain milestones. See Note 13 , Commitments and Contingencies , for the estimated fair value of the contingent consideration liability and changes recognized. Mr. Duong will receive 50% of any future payments of the contingent consideration. |
Earnings per Share and Sharehol
Earnings per Share and Shareholders' Equity | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share and Shareholders' Equity | EARNINGS PER SHARE Basic earnings per share is based on net income and the weighted average of Class A and Class B Common Shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSUs"), performance-based restricted stock units ("PSUs"), and director stock units ("DSUs") calculated using the treasury stock method. The following is a reconciliation of the number of shares used in the calculation of earnings per share: Three months ended Six months ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 (in thousands) Weighted average shares outstanding - Basic shares 80,317 82,053 80,267 82,003 Dilutive effect of stock-based compensation awards 397 602 462 688 Weighted average shares outstanding - Diluted shares 80,714 82,655 80,729 82,691 For the three months ended July 29, 2017 and July 30, 2016 , the number of potential shares that were not included in the computation of dilutive earnings per share because the effect would be anti-dilutive was approximately 4.6 million and 3.6 million , respectively. For the six months ended July 29, 2017 and July 30, 2016 , the number of potential shares that were not included in the computation of dilutive earnings per share because the effect would be anti-dilutive was approximately 4.3 million and 3.3 million , respectively. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jul. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION Stock-based compensation expense consisted of the following: Three months ended Six months ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 (in thousands) Stock options $ 1,586 $ 1,547 $ 3,337 $ 3,224 Restricted stock units 655 640 1,485 1,870 Performance-based restricted stock units 970 550 1,947 1,232 Director stock units 1,031 922 1,082 990 $ 4,242 $ 3,659 $ 7,851 $ 7,316 The fair value for stock option awards was estimated at the grant date using the Black-Scholes pricing model with the following weighted average assumptions for the options granted: Six months ended July 29, 2017 July 30, 2016 Assumptions: Risk-free interest rate 1.9% 1.5% Expected volatility 34.4% 36.0% Expected option term 5.5 years 5.4 years Dividend yield 3.9% 3.0% Other data: Weighted average grant date fair value $4.17 $6.59 The following table summarizes the stock-based compensation award activity: Six months ended July 29, 2017 Stock Options RSUs PSUs DSUs (in thousands) Outstanding - beginning of period 3,799 351 250 311 Granted 1,756 285 258 71 Exercised / vested (35 ) (58 ) (34 ) (45 ) Forfeited / expired (327 ) (63 ) (3 ) — Outstanding - end of period 5,193 515 471 337 As of July 29, 2017 , 4.7 million shares of Class A Common Shares remain available for future stock-based compensation grants under the 2014 Long-Term Incentive Plan. |
Investments
Investments | 6 Months Ended |
Jul. 29, 2017 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS We hold available-for-sale investments primarily in bonds and term notes. Investments consisted of the following: Short-term Investments Long-term Investments July 29, 2017 January 28, 2017 July 30, 2016 July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Available-for-sale investments: Carrying value $ 182,325 $ 98,793 $ 103,051 $ — $ 77,882 $ 78,068 Unrealized gains included in accumulated other comprehensive loss 99 101 455 — 133 33 Unrealized losses included in accumulated other comprehensive loss (362 ) (364 ) (39 ) — (111 ) (200 ) Total investments $ 182,062 $ 98,530 $ 103,467 $ — $ 77,904 $ 77,901 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial Assets and Liabilities- Financial assets and liabilities measured at fair value on a recurring basis consisted of the following: July 29, 2017 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 89,305 $ 89,305 — — Short-term investments 182,062 2,265 $ 179,797 — $ 271,367 $ 91,570 $ 179,797 $ — Financial liabilities - Contingent consideration liability $ 36,456 — — $ 36,456 $ 36,456 $ — $ — $ 36,456 January 28, 2017 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 110,657 $ 110,657 — — Short-term investments 98,530 2,446 $ 96,084 — Long-term investments 77,904 431 77,473 — $ 287,091 $ 113,534 $ 173,557 $ — Financial liabilities - Contingent consideration liability $ 33,204 — — $ 33,204 $ 33,204 $ — $ — $ 33,204 July 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 62,324 $ 62,324 — Short-term investments 103,467 120 $ 103,347 Long-term investments 77,901 314 77,587 $ 243,692 $ 62,758 $ 180,934 $ — Financial liabilities - Contingent consideration liability $ 59,611 — — $ 59,611 $ 59,611 $ — $ — $ 59,611 The short-term and long-term investments categorized as Level 2 were valued using a market-based approach using inputs such as prices of similar assets in active markets. See Note 13 , Commitments and Contingencies , for the estimated fair value (categorized as Level 3) of the contingent consideration liability and changes recognized. We have financial assets and liabilities not required to be measured at fair value on a recurring basis, which primarily consist of accounts receivables, note receivable from Town Shoes, and accounts payables. The carrying value of accounts receivables and accounts payables approximated their fair values due to their short-term nature. As of July 29, 2017 , January 28, 2017 and July 30, 2016 , the fair value of the note receivable from Town Shoes was $52.5 million , $45.7 million and $43.6 million , respectively, compared to the carrying value of $60.1 million , $53.1 million and $50.2 million , respectively. We estimated the fair value of the note receivable based upon current interest rates offered on similar instruments. The change in fair value is based on the change in comparable rates on similar instruments. Based on our intention and ability to hold the note until maturity or the exercise of the put/call option, the carrying value is not other-than-temporarily impaired. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jul. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Land $ 1,110 $ 1,110 $ 1,110 Buildings 12,485 12,485 12,485 Building and leasehold improvements 398,129 393,505 378,355 Furniture, fixtures and equipment 417,226 408,653 382,687 Software 135,844 123,460 121,848 Construction in progress (1) 28,008 27,456 35,628 Total property and equipment 992,802 966,669 932,113 Accumulated depreciation and amortization (628,250 ) (591,418 ) (552,470 ) Property and equipment, net $ 364,552 $ 375,251 $ 379,643 (1) Construction in progress is comprised primarily of the construction of leasehold improvements and furniture and fixtures related to unopened stores and internal-use software under development. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jul. 29, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses consisted of the following: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Gift cards and merchandise credits $ 40,327 $ 45,743 $ 38,062 Compensation 14,830 17,132 15,184 Taxes 17,182 21,764 18,887 Customer loyalty program 12,410 11,502 11,401 Other (1) 37,185 34,193 31,658 $ 121,934 $ 130,334 $ 115,192 (1) Other is comprised of deferred revenue, sales return allowance, and various other accrued expenses, including amounts owed under our vendor payment program described below. To better facilitate the processing efficiency of certain vendor payments, during fiscal 2016 we entered into a vendor payment program with a payment processing intermediary. Under the vendor payment program, the intermediary makes regularly-scheduled payments to participating vendors and we, in turn, settle monthly with the intermediary. The net change in the outstanding balance is reflected as a financing activity in the consolidated statements of cash flows. |
Non-Current Liabilities
Non-Current Liabilities | 6 Months Ended |
Jul. 29, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | NON-CURRENT LIABILITIES Non-current liabilities consisted of the following: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Construction and tenant allowances $ 84,002 $ 87,886 $ 89,460 Deferred rent 38,187 37,779 37,814 Accrual for lease obligations 7,328 7,283 8,584 Other (1) 12,982 8,231 7,704 $ 142,499 $ 141,179 $ 143,562 (1) Other is comprised of various other accrued expenses that we expect will settle beyond one year from the end of the period. |
Debt Obligations
Debt Obligations | 6 Months Ended |
Jul. 29, 2017 | |
Debt Disclosure [Abstract] | |
Debt Obligations and Warrant Liabilities | DEBT Credit Facility - On August 2, 2013 , we entered into a secured revolving credit agreement (the "Credit Facility") that provides revolving credit up to $100 million . The Credit Facility, together with the Letter of Credit Agreement (defined below), amended and restated the prior credit facility, dated June 30, 2010 . The Credit Facility is secured by a lien on substantially all of DSW Inc.'s personal property assets and its subsidiaries, with certain exclusions, and may be used to provide funds for general corporate purposes, to provide for ongoing working capital requirements and to make permitted acquisitions. Revolving credit loans bear interest under the Credit Facility at our option under: (a) a base rate option at a rate per annum equal to the highest of (i) the Federal Funds Open Rate (as defined in the Credit Facility), plus 0.5%, (ii) the Lender's prime rate, and (iii) the Daily LIBOR Rate (as defined in the Credit Facility) plus 1.0%, plus in each instance an applicable margin, which is between 1.00 and 1.25, based upon revolving credit availability; or (b) a LIBOR option at a rate equal to the LIBOR Rate (as defined in the Credit Facility), plus an applicable margin based upon our revolving credit availability. In addition, the Credit Facility contains restrictive covenants relating to the management and operation of our business. These covenants, among other things, limit or restrict our ability to grant liens on our assets, limit our ability to incur additional indebtedness, limit our ability to enter into transactions with affiliates and limit our ability to merge or consolidate with another entity. Our Credit Facility allows the payment of dividends by us or our subsidiaries, provided that we meet the minimum cash and investments requirement of $125 million , as defined in the Credit Facility. An additional covenant limits payments for capital expenditures to $200 million in any fiscal year. As of July 29, 2017 , we had no outstanding borrowings under the Credit Facility with availability of $100 million and we were in compliance with all covenants. Interest expense related to the Credit Facility includes fees, such as commitment and line of credit fees. Letter of Credit Agreement- Also on August 2, 2013 , we entered into a letter of credit agreement (the "Letter of Credit Agreement"). The Letter of Credit Agreement provides for the issuance of letters of credit up to $50 million . The facility for the issuance of letters of credit is secured by a cash collateral account containing cash in an amount equal to 103% of the face amount of any letter of credit extension ( 105% for extensions denominated in foreign currency) and is used for general corporate purposes. The Letter of Credit Agreement requires compliance with conditions precedent that must be satisfied prior to issuing any letter of credit or extension. In addition, the Letter of Credit Agreement contains restrictive covenants relating to the management and operation of our business. These covenants, among other things, limit or restrict our ability to grant liens on our assets, limit our ability to incur additional indebtedness, limit our ability to enter into transactions with affiliates and limit our ability to merge or consolidate with another entity. An event of default may cause the applicable interest rate and fees to increase by 2% per annum. As of July 29, 2017 , we were in compliance with all covenants. As of July 29, 2017 , January 28, 2017 and July 30, 2016 , we had outstanding letters of credit under the Letter of Credit Agreement of $3.6 million , $3.8 million , and $7.9 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contingent Consideration Liability- The contingent consideration liability resulted from the acquisition of Ebuys and is based on a defined earnings performance measure for fiscal years 2017, 2018 and 2019 with no defined maximum earn-out. The contingent consideration liability is based on our estimated fair value with any differences between the final acquisition-date fair value and the estimated settlement of the obligation, as remeasured each reporting period, being recognized as an adjustment to income from operations. Activity for the contingent consideration liability was as follows: Six months ended July 29, 2017 July 30, 2016 (in thousands) Contingent consideration liability - beginning of period $ 33,204 $ — Preliminary purchase price — 56,000 Accretion in value 2,252 3,611 Other adjustments 1,000 — Contingent consideration liability - end of period $ 36,456 $ 59,611 Legal Proceedings- We are involved in various legal proceedings that are incidental to the conduct of our business. Although it is not possible to predict with certainty the eventual outcome of any litigation, we believe the amount of any potential liability with respect to current legal proceedings will not be material to the results of operations or financial condition. As additional information becomes available, we will assess any potential liability related to pending litigation and revise the estimates as needed. Guarantee- As a result of a previous merger, we provided a guarantee for a lease commitment that is scheduled to expire in 2024 of a location that has been leased to a third party. If the third party does not pay the rent or vacates the premise, we may be required to make full rent payments to the landlord. Contractual Obligations- As of July 29, 2017 , we have 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. Our obligations under these commitments were $0.7 million as of July 29, 2017 . In addition, we have entered into various noncancelable purchase and service agreements. The obligations under these agreements were approximately $13.0 million as of July 29, 2017 . |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT REPORTING Our two reportable segments, which are also operating segments, are the DSW segment, which includes DSW stores and dsw.com, and the ABG segment. Other includes Ebuys and franchise activity with the Apparel Group. The following provides certain financial data by segment reconciled to the consolidated financial statements: DSW segment ABG segment Other Total (in thousands) Three months ended July 29, 2017 Net sales $ 628,379 31,330 20,700 $ 680,409 Gross profit $ 192,538 6,438 (2,004 ) $ 196,972 Three months ended July 30, 2016 Net sales $ 603,927 35,446 19,571 $ 658,944 Gross profit $ 177,885 7,217 1,759 $ 186,861 Six months ended July 29, 2017 Net sales $ 1,253,166 75,318 43,027 $ 1,371,511 Gross profit $ 377,188 16,936 (1,923 ) $ 392,201 Six months ended July 30, 2016 Net sales $ 1,226,959 78,585 34,667 $ 1,340,211 Gross profit $ 369,304 18,030 3,884 $ 391,218 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 29, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On August 17, 2017 , the Board of Directors authorized the repurchase of an additional $500 million of DSW Common Shares under our share repurchase program. On August 22, 2017 , the Board of Directors declared a quarterly cash dividend payment of $0.20 per share for both Class A and Class B Common Shares. The dividend will be paid on September 29, 2017 to shareholders of record at the close of business on September 19, 2017 . On August 25, 2017 , we entered into a new senior unsecured revolving credit agreement (the "New Credit Facility") with a maturity date of August 25, 2022 that provides a revolving line of credit up to $300 million , with sub-limits for the issuance of up to $50 million in letters of credit, swing loan advances of up to $15 million , and the issuance of up to $75 million in foreign currency revolving loans and letters of credit. The New Credit Facility replaces the Credit Facility and the Letter of Credit Agreement dated August 2, 2013 . The New Credit Facility may be further increased by up to $100 million subject to agreed upon terms and conditions. The New Credit Facility may be used to provide funds for ongoing and seasonal working capital, capital expenditures, dividends and share repurchases, other expenditures, and permitted acquisitions (as defined). The interest rates and fees under the New Credit Facility fluctuate based on our leverage ratio. The New Credit Facility allows us to select our interest rate for each borrowing from multiple interest rate options that are generally derived from the prime rate or LIBOR. In addition, the New Credit Facility contains financial and other covenants, including, but not limited to, limitations on indebtedness, liens and investments, as well as the maintenance of a leverage ratio not to exceed 3.25:1 and a fixed charge coverage ratio not to be less than 1.75:1 . A violation of any of the covenants could result in a default under the New Credit Facility that would permit the lenders to restrict our ability to further access the New Credit Facility for loans and letters of credit and require the immediate repayment of any outstanding loans under the New Credit Facility. As of August 25, 2017 , we were in compliance with the covenants of the New Credit Facility. |
Business Operations and Basis23
Business Operations and Basis of Presentation Business Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 29, 2017 | |
Basis of Accounting, Policy [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation- The accompanying unaudited, condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The condensed consolidated financial position, results of operations and cash flows for these interim periods are not necessarily indicative of the results that may be expected in future periods. The balance sheet at January 28, 2017 has been derived from the audited financial statements at that date. The financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 , filed with the U.S. Securities and Exchange Commission on March 23, 2017. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year- Our fiscal year ends on the Saturday nearest to January 31. References to a fiscal year refer to the calendar year in which the fiscal year begins. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 29, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation- The consolidated 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 USD, unless otherwise noted. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Significant estimates are required as a part of sales returns, depreciation, amortization, inventory valuation, contingent consideration liability, customer loyalty program reserve, recoverability of long-lived assets and intangible assets, legal reserves, accrual for lease obligations and establishing reserves for self-insurance. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results could differ from these estimates. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents, and Restricted Cash - Cash and cash equivalents represent cash, money market funds and credit card receivables that generally settle within three days. Restricted cash represents cash that is restricted as to withdrawal or usage and consists of a mandatory cash deposit with the lender for outstanding letters of credit. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Cash and cash equivalents $ 89,305 $ 110,657 $ 62,324 Restricted cash, included in prepaid expenses and other current assets 3,923 4,654 8,143 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 93,228 $ 115,311 $ 70,467 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value- 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. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to the subjectivity associated with the inputs to fair value measurements as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Quoted prices for similar assets or liabilities in active markets or inputs that are observable. • Level 3 - Unobservable inputs in which little or no market activity exists. |
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Income (Loss)- Changes for the balances of each component of accumulated other comprehensive loss were as follows (all amounts are net of tax): Six months ended July 29, 2017 July 30, 2016 Foreign Currency Translation Available-for-Sale Securities Total Foreign Currency Translation Available-for-Sale Securities Total (in thousands) Accumulated other comprehensive loss - beginning of period $ (13,699 ) $ (242 ) $ (13,941 ) $ (20,530 ) $ (173 ) $ (20,703 ) Other comprehensive income (loss) before reclassifications 6,537 33 6,570 7,246 276 7,522 Amounts reclassified to non-operating income 2,161 (54 ) 2,107 — — — Other comprehensive income (loss) 8,698 (21 ) 8,677 7,246 276 7,522 Accumulated other comprehensive income (loss) - end of period $ (5,001 ) $ (263 ) $ (5,264 ) $ (13,284 ) $ 103 $ (13,181 ) |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Adopted Accounting Standards- In the first quarter of fiscal 2017, we adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting , which eliminated the requirement to recognize excess tax benefits in common shares paid-in capital and the requirement to evaluate tax deficiencies for common shares paid-in capital or income tax expense classification, and provides for these benefits or deficiencies to be recorded as an income tax expense or benefit on a prospective basis. For the consolidated statements of cash flows, excess tax benefits related to stock-based compensation is no longer presented, on a retroactive basis, as a financing activity cash inflow and as an operating activity cash outflow. As we did not have any excess tax benefits related to stock-based compensation during the six months ended July 30, 2016 , the adoption of ASU 2016-09 did not result in a change in the activity presented in the statements of cash flows. In the first quarter of fiscal 2017, we early adopted ASU 2016-18, Statement of Cash Flows - Restricted Cash, which requires that the consolidated statements of cash flows provides the change in the total of cash, cash equivalents, and restricted cash. As a result of this adoption, we no longer show the changes in restricted cash balances as a component of cash flows from investing activities but instead include the balances of restricted cash together with cash and cash equivalents for the beginning and end of the periods presented. As a result of adopting ASU 2016-18, we adjusted the statements of cash flows on a retroactive basis as follows: Six Months Ended (in thousands) Net cash provided by investing activities, as previously reported $ 2,043 Eliminated the impact of the increase in restricted cash 467 Net cash provided by investing activities, as adjusted $ 2,510 Net increase in cash and cash equivalents, as previously reported $ 29,829 Eliminated the impact of the increase in restricted cash 467 Net increase in cash, cash equivalents, and restricted cash, as adjusted $ 30,296 Cash and cash equivalents, beginning of period, as previously reported $ 32,495 Included restricted cash 7,676 Cash, cash equivalents, and restricted cash, beginning of period, as adjusted $ 40,171 Cash and cash equivalents, end of period, as previously reported $ 62,324 Included restricted cash 8,143 Cash, cash equivalents, and restricted cash, end of period, as adjusted $ 70,467 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements- In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current guidance. Under ASU 2014-09, companies will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures and provide more comprehensive guidance for transactions such as service revenue and contract modifications. The standard is effective for us in the first quarter of fiscal 2018, which we plan to adopt using the full retrospective method where each prior period presented is restated. We have completed an assessment identifying areas of impact to our financial statements, including sales returns, licensing arrangements, gift cards, and our loyalty and co-branded credit card programs. The adoption of the new standard will result in changes in classification between net sales, other revenues, cost of sales, and operating expenses. For income from breakage of gift cards, which is currently recognized as a reduction to operating expenses when the redemption of the gift card is deemed remote, the new standard will require classification within net sales recognized proportionately over the expected redemption period. Also upon adoption of the standard, we will no longer use the incremental cost method and record to cost of sales for our loyalty program, rather we will use a deferred revenue model. We do not expect the adoption of ASU 2014-09 will have a material impact to our reported net sales, operating profit, net income, shareholders’ equity or cash flows, with the primary impacts of adopting the new standard relating to changes in classification of amounts shown on the consolidated financial statements and additional disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which will change how lessees account for leases. For most leases, a liability will be recorded on the balance sheet based on the present value of future lease obligations with a corresponding right-of-use asset. Primarily for those leases currently classified by us as operating leases, we will recognize a single lease cost on a straight-line basis based on the combined amortization of the lease obligation and the right-of-use asset. Other leases will be required to be accounted for as financing arrangements similar to current accounting for capital leases. Upon transition, we will recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The standard is effective for us in the first quarter of fiscal 2019 with early adoption permitted. We will not early adopt ASU 2016-02 and we expect the standard will have a material impact to our consolidated balance sheets. We are continuing to assess and evaluate the full impact of the standard on our financial statements and we are developing an implementation plan. In January 2017, the FASB issued ASU 2017-04, Simplifying the Accounting for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating the requirement to determine the implied fair value of goodwill to measure an impairment of goodwill. Rather, goodwill impairment charges will be calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. The standard is effective for us for our annual or any interim goodwill impairment tests during fiscal 2020 and early adoption is permitted. We intend to early adopt ASU 2017-04 for our annual or any interim goodwill impairment tests during fiscal 2017. |
Earnings per Share and Shareh25
Earnings per Share and Shareholders' Equity Earnings per Share and Shareholders' Equity (Policies) | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Basic earnings per share is based on net income and the weighted average of Class A and Class B Common Shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSUs"), performance-based restricted stock units ("PSUs"), and director stock units ("DSUs") calculated using the treasury stock method. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | Our two reportable segments, which are also operating segments, are the DSW segment, which includes DSW stores and dsw.com, and the ABG segment. Other includes Ebuys and franchise activity with the Apparel Group. |
Acquisition and Equity Method27
Acquisition and Equity Method Investment (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary and final purchase price and the allocation of the total consideration to the fair values of the assets and liabilities acquired consisted of the following: Preliminary Purchase Price as of March 4, 2016 Adjustments Final Purchase Price as of January 28, 2017 (in thousands) Purchase price: Cash consideration $ 60,411 $ (635 ) $ 59,776 Contingent consideration 56,000 (2,645 ) 53,355 $ 116,411 $ (3,280 ) $ 113,131 Fair value of assets and liabilities acquired: Accounts and other receivables $ 1,623 $ (287 ) $ 1,336 Inventory 30,152 18 30,170 Other current assets 191 335 526 Property and equipment 1,221 22 1,243 Goodwill 54,785 (995 ) 53,790 Intangible assets 41,301 (2,600 ) 38,701 Accounts payable and other long-term liabilities (12,862 ) 227 (12,635 ) $ 116,411 $ (3,280 ) $ 113,131 |
Significant Accounting Polici28
Significant Accounting Policies Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Schedule of Cash, cash equivalents, and restricted cash [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Cash and cash equivalents $ 89,305 $ 110,657 $ 62,324 Restricted cash, included in prepaid expenses and other current assets 3,923 4,654 8,143 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 93,228 $ 115,311 $ 70,467 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes for the balances of each component of accumulated other comprehensive loss were as follows (all amounts are net of tax): Six months ended July 29, 2017 July 30, 2016 Foreign Currency Translation Available-for-Sale Securities Total Foreign Currency Translation Available-for-Sale Securities Total (in thousands) Accumulated other comprehensive loss - beginning of period $ (13,699 ) $ (242 ) $ (13,941 ) $ (20,530 ) $ (173 ) $ (20,703 ) Other comprehensive income (loss) before reclassifications 6,537 33 6,570 7,246 276 7,522 Amounts reclassified to non-operating income 2,161 (54 ) 2,107 — — — Other comprehensive income (loss) 8,698 (21 ) 8,677 7,246 276 7,522 Accumulated other comprehensive income (loss) - end of period $ (5,001 ) $ (263 ) $ (5,264 ) $ (13,284 ) $ 103 $ (13,181 ) |
New Accounting Pronouncement, Early Adoption [Table Text Block] | As a result of adopting ASU 2016-18, we adjusted the statements of cash flows on a retroactive basis as follows: Six Months Ended (in thousands) Net cash provided by investing activities, as previously reported $ 2,043 Eliminated the impact of the increase in restricted cash 467 Net cash provided by investing activities, as adjusted $ 2,510 Net increase in cash and cash equivalents, as previously reported $ 29,829 Eliminated the impact of the increase in restricted cash 467 Net increase in cash, cash equivalents, and restricted cash, as adjusted $ 30,296 Cash and cash equivalents, beginning of period, as previously reported $ 32,495 Included restricted cash 7,676 Cash, cash equivalents, and restricted cash, beginning of period, as adjusted $ 40,171 Cash and cash equivalents, end of period, as previously reported $ 62,324 Included restricted cash 8,143 Cash, cash equivalents, and restricted cash, end of period, as adjusted $ 70,467 |
Earnings per Share and Shareh29
Earnings per Share and Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Number of Shares Used in the Calculation of Diluted Earnings per Share | The following is a reconciliation of the number of shares used in the calculation of earnings per share: Three months ended Six months ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 (in thousands) Weighted average shares outstanding - Basic shares 80,317 82,053 80,267 82,003 Dilutive effect of stock-based compensation awards 397 602 462 688 Weighted average shares outstanding - Diluted shares 80,714 82,655 80,729 82,691 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation Expense [Table Text Block] | Stock-based compensation expense consisted of the following: Three months ended Six months ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 (in thousands) Stock options $ 1,586 $ 1,547 $ 3,337 $ 3,224 Restricted stock units 655 640 1,485 1,870 Performance-based restricted stock units 970 550 1,947 1,232 Director stock units 1,031 922 1,082 990 $ 4,242 $ 3,659 $ 7,851 $ 7,316 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value for stock option awards was estimated at the grant date using the Black-Scholes pricing model with the following weighted average assumptions for the options granted: Six months ended July 29, 2017 July 30, 2016 Assumptions: Risk-free interest rate 1.9% 1.5% Expected volatility 34.4% 36.0% Expected option term 5.5 years 5.4 years Dividend yield 3.9% 3.0% Other data: Weighted average grant date fair value $4.17 $6.59 |
Stock Option Plan Activity | The following table summarizes the stock-based compensation award activity: Six months ended July 29, 2017 Stock Options RSUs PSUs DSUs (in thousands) Outstanding - beginning of period 3,799 351 250 311 Granted 1,756 285 258 71 Exercised / vested (35 ) (58 ) (34 ) (45 ) Forfeited / expired (327 ) (63 ) (3 ) — Outstanding - end of period 5,193 515 471 337 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Investments [Abstract] | |
Marketable Securities [Table Text Block] | We hold available-for-sale investments primarily in bonds and term notes. Investments consisted of the following: Short-term Investments Long-term Investments July 29, 2017 January 28, 2017 July 30, 2016 July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Available-for-sale investments: Carrying value $ 182,325 $ 98,793 $ 103,051 $ — $ 77,882 $ 78,068 Unrealized gains included in accumulated other comprehensive loss 99 101 455 — 133 33 Unrealized losses included in accumulated other comprehensive loss (362 ) (364 ) (39 ) — (111 ) (200 ) Total investments $ 182,062 $ 98,530 $ 103,467 $ — $ 77,904 $ 77,901 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis consisted of the following: July 29, 2017 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 89,305 $ 89,305 — — Short-term investments 182,062 2,265 $ 179,797 — $ 271,367 $ 91,570 $ 179,797 $ — Financial liabilities - Contingent consideration liability $ 36,456 — — $ 36,456 $ 36,456 $ — $ — $ 36,456 January 28, 2017 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 110,657 $ 110,657 — — Short-term investments 98,530 2,446 $ 96,084 — Long-term investments 77,904 431 77,473 — $ 287,091 $ 113,534 $ 173,557 $ — Financial liabilities - Contingent consideration liability $ 33,204 — — $ 33,204 $ 33,204 $ — $ — $ 33,204 July 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 62,324 $ 62,324 — Short-term investments 103,467 120 $ 103,347 Long-term investments 77,901 314 77,587 $ 243,692 $ 62,758 $ 180,934 $ — Financial liabilities - Contingent consideration liability $ 59,611 — — $ 59,611 $ 59,611 $ — $ — $ 59,611 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment consisted of the following: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Land $ 1,110 $ 1,110 $ 1,110 Buildings 12,485 12,485 12,485 Building and leasehold improvements 398,129 393,505 378,355 Furniture, fixtures and equipment 417,226 408,653 382,687 Software 135,844 123,460 121,848 Construction in progress (1) 28,008 27,456 35,628 Total property and equipment 992,802 966,669 932,113 Accumulated depreciation and amortization (628,250 ) (591,418 ) (552,470 ) Property and equipment, net $ 364,552 $ 375,251 $ 379,643 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Gift cards and merchandise credits $ 40,327 $ 45,743 $ 38,062 Compensation 14,830 17,132 15,184 Taxes 17,182 21,764 18,887 Customer loyalty program 12,410 11,502 11,401 Other (1) 37,185 34,193 31,658 $ 121,934 $ 130,334 $ 115,192 |
Non-Current Liabilities(Tables)
Non-Current Liabilities(Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-current Liabilities | Non-current liabilities consisted of the following: July 29, 2017 January 28, 2017 July 30, 2016 (in thousands) Construction and tenant allowances $ 84,002 $ 87,886 $ 89,460 Deferred rent 38,187 37,779 37,814 Accrual for lease obligations 7,328 7,283 8,584 Other (1) 12,982 8,231 7,704 $ 142,499 $ 141,179 $ 143,562 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Business Acquisitions, Contingent Consideration (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Activity for the contingent consideration liability was as follows: Six months ended July 29, 2017 July 30, 2016 (in thousands) Contingent consideration liability - beginning of period $ 33,204 $ — Preliminary purchase price — 56,000 Accretion in value 2,252 3,611 Other adjustments 1,000 — Contingent consideration liability - end of period $ 36,456 $ 59,611 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The following provides certain financial data by segment reconciled to the consolidated financial statements: DSW segment ABG segment Other Total (in thousands) Three months ended July 29, 2017 Net sales $ 628,379 31,330 20,700 $ 680,409 Gross profit $ 192,538 6,438 (2,004 ) $ 196,972 Three months ended July 30, 2016 Net sales $ 603,927 35,446 19,571 $ 658,944 Gross profit $ 177,885 7,217 1,759 $ 186,861 Six months ended July 29, 2017 Net sales $ 1,253,166 75,318 43,027 $ 1,371,511 Gross profit $ 377,188 16,936 (1,923 ) $ 392,201 Six months ended July 30, 2016 Net sales $ 1,226,959 78,585 34,667 $ 1,340,211 Gross profit $ 369,304 18,030 3,884 $ 391,218 |
Business Operations Store Data
Business Operations Store Data (Details) | 6 Months Ended |
Jul. 29, 2017 | |
Schedule of Stores Supplied With Merchandise [Line Items] | |
Number of Reportable Segments | 2 |
Number of retailers operated as leased departments | 3 |
Apparel Group [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 40 |
Gordmans Stores [Member] | |
Affiliated Business Group [Abstract] | |
Stores acquired | 58 |
Acquisition and Equity Method39
Acquisition and Equity Method Investment (Details) - USD ($) $ in Thousands | Mar. 04, 2016 | Jan. 28, 2017 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 30, 2016 | May 09, 2014 |
Business Combination, Consideration Transferred | $ 60,411 | $ 59,776 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | (635) | |||||
Preliminary Business Combination, Contingent Consideration Liability | 56,000 | $ 0 | $ 56,000 | |||
Business Combination, Consideration Transferred, Other | (2,645) | |||||
Contingent Consideration Liability Final Acquisition Date Fair Value | 53,355 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1,623 | 1,336 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | (287) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 30,152 | 30,170 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 18 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 191 | 526 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | 335 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,221 | 1,243 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 22 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 54,785 | 53,790 | ||||
Goodwill, Translation and Purchase Accounting Adjustments | (995) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 41,301 | 38,701 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (2,600) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | (12,862) | (12,635) | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 227 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 116,411 | 113,131 | ||||
Goodwill, Purchase Accounting Adjustments | $ (3,280) | |||||
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% | ||||
Shareholder Note, Interest Rate | 12.00% | |||||
Town Shoe Acquisition, Voting Control Interest Acquired | 50.00% | |||||
Foreign Currency Purchase (CAD) | $ 100,000 | |||||
Online retailer relationships [Member] | ||||||
Finite-Lived Intangible Assets, Gross | $ 22,300 | |||||
Tradename [Member] | ||||||
Finite-Lived Intangible Assets, Gross | 11,000 | |||||
Noncompete Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Gross | $ 5,400 |
Significant Accounting Polici40
Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Schedule of Cash, cash equivalents, and restricted cash [Abstract] | |||
Cash and cash equivalents | $ 89,305 | $ 110,657 | $ 62,324 |
Restricted Cash and Cash Equivalents, Current | 3,923 | 4,654 | 8,143 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 93,228 | $ 115,311 | $ 70,467 |
Significant Accounting Polici41
Significant Accounting Policies Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | Jan. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ 10,657 | $ (4,903) | $ 6,537 | $ 7,246 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 33 | 276 | ||||
Other comprehensive income (loss), before reclassification adjustment | 6,570 | 7,522 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 2,161 | 0 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (54) | 0 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 527 | 0 | 2,107 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 8,698 | 7,246 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (263) | 103 | $ (242) | $ (173) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 973,279 | 941,370 | 973,279 | 941,370 | 937,488 | |
Other Comprehensive Income, Other, Net of Tax | (21) | 276 | ||||
Other Comprehensive Income (Loss), Net of Tax | 8,677 | 7,522 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (5,001) | (13,284) | (13,699) | (20,530) | ||
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (5,264) | $ (13,181) | $ (5,264) | $ (13,181) | $ (13,941) | $ (20,703) |
Significant Accounting Polici42
Significant Accounting Policies Significant accounting policies Accounting changes (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | Jan. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Cash Provided by (Used in) Continuing Operations | $ (22,083) | $ 30,296 | ||
Cash and cash equivalents | 89,305 | 62,324 | $ 110,657 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 93,228 | 70,467 | 115,311 | |
Restricted Cash and Cash Equivalents, Current | $ 3,923 | 8,143 | $ 4,654 | |
Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 2,043 | |||
Net Cash Provided by (Used in) Continuing Operations | 29,829 | |||
Cash and cash equivalents | 62,324 | $ 32,495 | ||
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 2,510 | |||
Net Cash Provided by (Used in) Continuing Operations | 30,296 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 70,467 | 40,171 | ||
Restricted Cash and Cash Equivalents, Current | 8,143 | $ 7,676 | ||
Adjustments for New Accounting Pronouncement [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (Decrease) in Restricted Cash | $ 467 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | May 09, 2014 | |
Schottenstein Affiliates [Abstract] | |||||
Related party transaction Outstanding common shares owned (in hundredths) | 19.00% | 19.00% | |||
Related party transaction Combined voting power of outstanding common shares (in hundredths) | 51.00% | 51.00% | |||
Operating Leases, Rent Expense, Minimum Rentals | $ 2.3 | $ 2 | $ 4.6 | $ 4.1 | |
Related Party Transaction, Purchases from Related Party | $ 0.4 | 0.3 | $ 0.7 | 0.6 | |
Town Shoe Acquisition, Ownership Interest Acquired | 46.30% | 46.30% | 49.20% | ||
Town Shoe Acquisition, Voting Control Interest Acquired | 50.00% | ||||
Management Fees, Base Revenue | $ 0.3 | $ 0.6 | |||
Proceeds from Royalties Received | 0.2 | $ 0.1 | 0.3 | $ 0.2 | |
Due from Other Related Parties | $ 0.7 | $ 1.6 | |||
Class A Common Shares | |||||
Schottenstein Affiliates [Abstract] | |||||
Related Party Transaction, Number of shares owned by related party (in shares) | 7.3 | 7.3 | |||
Class B Common Shares | |||||
Schottenstein Affiliates [Abstract] | |||||
Related Party Transaction, Number of shares owned by related party (in shares) | 7.7 | 7.7 |
Earnings per Share and Shareh44
Earnings per Share and Shareholders' Equity Calculation of Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Reconciliation of the number of shares used in the calculation of diluted earnings (loss) per share [Abstract] | ||||
Basic shares | 80,317 | 82,053 | 80,267 | 82,003 |
Dilutive effect of stock-based compensation awards | 397 | 602 | 462 | 688 |
Diluted shares | 80,714 | 82,655 | 80,729 | 82,691 |
Earnings per Share and Shareh45
Earnings per Share and Shareholders' Equity Anti-Dilutive Securities (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Diluted earnings per share [Abstract] | ||||
Securities outstanding not included in computation of diluted earnings per share | 4.6 | 3.6 | 4.3 | 3.3 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
DSW Stock-Based Compensation Plans [Abstract] | ||||
Share-based compensation expense | $ 4,242 | $ 3,659 | $ 7,851 | $ 7,316 |
Equity instruments other than options [Roll forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,700 | 4,700 | ||
Employee Stock Option [Member] | ||||
DSW Stock-Based Compensation Plans [Abstract] | ||||
Share-based compensation expense | $ 1,586 | 1,547 | $ 3,337 | $ 3,224 |
Stock Option Activity [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 3,799 | |||
Granted | 1,756 | |||
Exercised | (35) | |||
Forfeited | (327) | |||
Outstanding, end of period (in shares) | 5,193 | 5,193 | ||
Equity instruments other than options [Roll forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | 1.50% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 34.40% | 36.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 5 months 30 days | 5 years 4 months 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.90% | 3.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.17 | $ 6.59 | ||
Restricted Stock Units (RSUs) [Member] | ||||
DSW Stock-Based Compensation Plans [Abstract] | ||||
Share-based compensation expense | $ 655 | 640 | $ 1,485 | $ 1,870 |
Stock Option Activity [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 351 | |||
Granted | 285 | |||
Exercised | (58) | |||
Forfeited | (63) | |||
Outstanding, end of period (in shares) | 515 | 515 | ||
Performance Shares [Member] | ||||
DSW Stock-Based Compensation Plans [Abstract] | ||||
Share-based compensation expense | $ 970 | 550 | $ 1,947 | 1,232 |
Stock Option Activity [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 250 | |||
Granted | 258 | |||
Exercised | (34) | |||
Forfeited | (3) | |||
Outstanding, end of period (in shares) | 471 | 471 | ||
Director Stock Units [Member] | ||||
DSW Stock-Based Compensation Plans [Abstract] | ||||
Share-based compensation expense | $ 1,031 | $ 922 | $ 1,082 | $ 990 |
Stock Option Activity [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 311 | |||
Granted | 71 | |||
Exercised | (45) | |||
Forfeited | 0 | |||
Outstanding, end of period (in shares) | 337 | 337 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | |
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | $ 182,062 | $ 103,467 | $ 98,530 |
Long-term investments | 0 | 77,901 | 77,904 |
Current available for sale Securities Unrecognized Holding Gain | 99 | 455 | 101 |
Long-Term Available for Sale Securities Unrecognized Holding Gain | 0 | 33 | 133 |
Current Available for Sale Securities Unrecognized Holding Loss | (362) | (39) | (364) |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | 0 | (200) | (111) |
Carrying value | Available-for-sale Securities [Member] | |||
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | 182,325 | 103,051 | 98,793 |
Long-term investments | $ 0 | $ 78,068 | $ 77,882 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Assets: | |||
Cash and equivalents | $ 89,305 | $ 110,657 | $ 62,324 |
Short Term Investments, Fair Value Disclosure | 182,062 | 98,530 | 103,467 |
Long Term Investments, Fair Value Disclosure | 77,904 | 77,901 | |
Total assets | 271,367 | 287,091 | 243,692 |
Commitments, Fair Value Disclosure | 36,456 | 33,204 | 59,611 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 36,456 | 33,204 | 59,611 |
Notes Receivable, Fair Value Disclosure | 52,500 | 45,700 | 43,600 |
Notes Receivable, Related Parties, Noncurrent | 60,094 | 53,121 | 50,200 |
Level 1 [Member] | |||
Assets: | |||
Cash and equivalents | 89,305 | 110,657 | 62,324 |
Short Term Investments, Fair Value Disclosure | 2,265 | 2,446 | 120 |
Long Term Investments, Fair Value Disclosure | 431 | 314 | |
Total assets | 91,570 | 113,534 | 62,758 |
Commitments, 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, Fair Value Disclosure | 179,797 | 96,084 | 103,347 |
Long Term Investments, Fair Value Disclosure | 77,473 | 77,587 | |
Total assets | 179,797 | 173,557 | 180,934 |
Commitments, Fair Value Disclosure | 0 | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Total assets | 0 | 0 | 0 |
Commitments, Fair Value Disclosure | 36,456 | 33,204 | 59,611 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 36,456 | $ 33,204 | $ 59,611 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Property and equipment [Abstract]: | |||
Land | $ 1,110 | $ 1,110 | $ 1,110 |
Buildings and Improvements, Gross | 12,485 | 12,485 | 12,485 |
Leasehold Improvements, Gross | 398,129 | 393,505 | 378,355 |
Furniture and Fixtures, Gross | 417,226 | 408,653 | 382,687 |
Capitalized Computer Software, Gross | 135,844 | 123,460 | 121,848 |
Construction in Progress, Gross | 28,008 | 27,456 | 35,628 |
Total property and equipment | 992,802 | 966,669 | 932,113 |
Accumulated depreciation and amortization | (628,250) | (591,418) | (552,470) |
Property and equipment, net | $ 364,552 | $ 375,251 | $ 379,643 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Payables and Accruals [Line Items] | |||
Gift cards and merchandise credits | $ 40,327 | $ 45,743 | $ 38,062 |
Compensation | 14,830 | 17,132 | 15,184 |
Taxes | 17,182 | 21,764 | 18,887 |
Customer loyalty program | 12,410 | 11,502 | 11,401 |
Other (1) | 37,185 | 34,193 | 31,658 |
Total accrued expenses | $ 121,934 | $ 130,334 | $ 115,192 |
Non-Current Liabilities (Detail
Non-Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Other Liabilities Disclosure [Abstract] | |||
Construction and tenant allowances | $ 84,002 | $ 87,886 | $ 89,460 |
Deferred rent | 38,187 | 37,779 | 37,814 |
Restructuring Reserve | 7,328 | 7,283 | 8,584 |
Other (1) | 12,982 | 8,231 | 7,704 |
Total non-current liabilities | $ 142,499 | $ 141,179 | $ 143,562 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Millions | Aug. 02, 2013 | Jun. 30, 2010 | Jul. 29, 2017 |
Debt Instrument [Line Items] | |||
Line of Credit Facility, Initiation Date | Aug. 2, 2013 | Jun. 30, 2010 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||
Credit Facility [Abstract] | |||
Credit Facility, Cash and Short Term Investment Requirement | 125 | ||
Limitation of Capital Expenditures | 200 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 100 |
Letter of Credit Agreement (Det
Letter of Credit Agreement (Details) - USD ($) $ in Millions | Aug. 02, 2013 | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Letter of Credit [Line Items] | ||||
Letter of Credit Facility, Initiation Date | Aug. 2, 2013 | |||
Letter of Credit Agreement, Maximum Borrowing Capacity | $ 50 | |||
Collateral Requirement (Domestic) | 103.00% | |||
Letter of Credit Agreement, Cash Collateral Requirement (Foreign Currency) | 105.00% | |||
Letters of Credit Outstanding, Amount | $ 3.6 | $ 3.8 | $ 7.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | Mar. 04, 2016 | Jan. 30, 2016 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Preliminary Business Combination, Contingent Consideration Liability | $ 0 | $ 56,000 | $ 56,000 | ||
Accretion Expense | 2,252 | 3,611 | |||
Contingent Consideration Other Adjustments | 1,000 | 0 | |||
Business Combination, Contingent Consideration, Liability | 36,456 | $ 59,611 | $ 33,204 | $ 0 | |
Contractual Obligations [Abstract] | |||||
Purchase Commitment, Remaining Minimum Amount Committed | 700 | ||||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | $ 13,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | 2 | |||
Segment information [Abstract] | ||||
Net sales | $ 680,409 | $ 658,944 | $ 1,371,511 | $ 1,340,211 |
Gross profit | 196,972 | 186,861 | 392,201 | 391,218 |
Other Segments [Member] | ||||
Segment information [Abstract] | ||||
Net sales | 20,700 | 19,571 | 43,027 | 34,667 |
Gross profit | (2,004) | 1,759 | (1,923) | 3,884 |
Affiliated Business Group segment [Member] | ||||
Segment information [Abstract] | ||||
Net sales | 31,330 | 35,446 | 75,318 | 78,585 |
Gross profit | 6,438 | 7,217 | 16,936 | 18,030 |
DSW [Member] | ||||
Segment information [Abstract] | ||||
Net sales | 628,379 | 603,927 | 1,253,166 | 1,226,959 |
Gross profit | $ 192,538 | $ 177,885 | $ 377,188 | $ 369,304 |
Subsequent Events Dividend Decl
Subsequent Events Dividend Declaration (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 29, 2017 | Sep. 19, 2017 | Aug. 22, 2017 | Aug. 02, 2013 | Jun. 30, 2010 | Aug. 25, 2022 | Aug. 25, 2017 | Aug. 17, 2017 | Jul. 29, 2017 |
Subsequent Event [Line Items] | |||||||||
Line of Credit Facility, Initiation Date | Aug. 2, 2013 | Jun. 30, 2010 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.20 | ||||||||
Dividends Payable, Date to be Paid | Sep. 29, 2017 | ||||||||
Dividends Payable, Date of Record | Sep. 19, 2017 | ||||||||
Line of Credit Facility, Initiation Date | Aug. 25, 2017 | ||||||||
Line of Credit, additional borrowing capacity | $ 100 | ||||||||
Line of Credit Facility, Expiration Date | Aug. 25, 2022 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300 | ||||||||
Letter of Credit Sublimits | 50 | ||||||||
Swing Loan Advances | 15 | ||||||||
foreign currency revolving loan | $ 75 | ||||||||
Maximum [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Supplementary Leverage Ratio | 3.25% | ||||||||
Minimum [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt Instrument, coverage ratio | 1.75% |