Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 15, 2021 | Aug. 01, 2020 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 30, 2021 | ||
Current Fiscal Year End Date | --01-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-32545 | ||
Entity Registrant Name | DESIGNER BRANDS INC. | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-0746639 | ||
Entity Address, Address Line One | 810 DSW Drive, | ||
Entity Address, City or Town | Columbus, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43219 | ||
City Area Code | (614) | ||
Local Phone Number | 237-7100 | ||
Title of 12(b) Security | Class A Common Shares, without par value | ||
Trading Symbol | DBI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 354,868,881 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001319947 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Shares | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 64,669,262 | ||
Class B Common Shares | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7,732,786 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Net sales | $ 2,234,719 | $ 3,492,687 | $ 3,177,918 |
Gross Profit | 311,241 | 999,670 | 938,689 |
Operating expenses | (753,278) | (874,749) | (820,222) |
Income (loss) from equity method investments | 9,329 | 10,149 | (12) |
Impairment charges | (153,606) | (7,771) | (60,760) |
Operating profit (loss) | (586,314) | 127,299 | 59,005 |
Interest expense | (24,032) | (8,914) | (2,433) |
Interest income | 338 | 1,559 | 3,721 |
Interest income (expense), net | (23,694) | (7,355) | 1,288 |
Non-operating income (expenses), net | 1,361 | (170) | (49,616) |
Income (loss) before income taxes and loss from equity investment in TSL | (608,647) | 119,774 | 10,677 |
Income tax benefit (provision) | 119,928 | (25,277) | (29,833) |
Net income (loss) | $ (488,719) | $ 94,497 | $ (20,466) |
Basic and diluted earnings (loss) per share [Abstract]: | |||
Basic earnings (loss) per share | $ (6.77) | $ 1.28 | $ (0.26) |
Diluted earnings (loss) per share | $ (6.77) | $ 1.27 | $ (0.26) |
Shares used in per share calculations [Abstract]: | |||
Basic shares | 72,198 | 73,602 | 80,026 |
Diluted shares | 72,198 | 74,605 | 80,026 |
Product | |||
Net sales | $ 2,234,719 | $ 3,492,687 | $ 3,177,918 |
Cost of sales | (1,923,478) | (2,493,017) | (2,239,229) |
ABG-Camuto, LLC | |||
Income (loss) from equity method investments | 9,329 | 10,149 | 1,298 |
Town Shoes | |||
Income (loss) from equity method investments | $ 0 | $ 0 | $ (1,310) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Net income (loss) | $ (488,719) | $ 94,497 | $ (20,466) |
Other comprehensive income (loss), net of income taxes: | |||
Foreign currency translation loss | (618) | (340) | (7,013) |
Unrealized net gain on debt securities | 195 | 609 | 192 |
Reclassification adjustment for net losses (gains) realized in net income (loss) | (368) | (58) | 14,189 |
Total other comprehensive income (loss), net of income taxes | (791) | 211 | 7,368 |
Total comprehensive income (loss) | $ (489,510) | $ 94,708 | $ (13,098) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
ASSETS [Abstract]: | ||
Cash and cash equivalents | $ 59,581 | $ 86,564 |
Investments | 0 | 24,974 |
Receivables, net | 196,049 | 89,151 |
Inventories | 473,183 | 632,587 |
Prepaid expenses and other current assets | 51,772 | 67,534 |
Total current assets | 780,585 | 900,810 |
Property and equipment, net | 296,469 | 395,009 |
Operating lease assets | 700,481 | 918,801 |
Goodwill | 93,655 | 113,644 |
Intangible assets, net | 15,635 | 22,846 |
Deferred tax assets | 0 | 31,863 |
Equity investment in ABG-Camuto | 58,598 | 57,760 |
Other assets | 31,172 | 24,337 |
Total assets | 1,976,595 | 2,465,070 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 245,071 | 299,072 |
Accrued expenses | 200,326 | 194,264 |
Long-term Debt, Current Maturities | 62,500 | 0 |
Current operating lease liabilities | 244,786 | 186,695 |
Total current liabilities | 752,683 | 680,031 |
Long-term debt | 272,319 | 190,000 |
Non-current operating lease liabilities | 677,735 | 846,584 |
Other non-current liabilities | 30,841 | 27,541 |
Total liabilities | 1,733,578 | 1,744,156 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common shares paid in-capital, no par value | 990,153 | 971,380 |
Treasury shares, at cost | (515,065) | (515,065) |
Retained earnings (deficit) | (228,785) | 267,094 |
Accumulated other comprehensive loss | (3,286) | (2,495) |
Total shareholders' equity | 243,017 | 720,914 |
Total liabilities and shareholders' equity | $ 1,976,595 | $ 2,465,070 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Treasury shares | Retained earnings (deficit) | Retained earnings (deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | Class A Common Shares | Class B Common Shares | Treasury shares | Common shares paid in capital |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common Shares, outstanding (in shares) | 72,294 | 7,733 | 13,091 | |||||||
Balance at Feb. 03, 2018 | $ 955,251 | $ (325,906) | $ 354,979 | $ (10,074) | $ 936,252 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (20,466) | (20,466) | ||||||||
Stock-based compensation activity | 17,549 | 17,549 | ||||||||
Stock-based compensation activity (in shares) | 378 | |||||||||
Payments for Repurchase of Common Stock | (47,530) | (47,530) | ||||||||
Treasury stock, shares, acquired (in shares) | 2,000 | |||||||||
Repurchase of Class A common shares (in shares) | (2,000) | |||||||||
Dividends paid | (79,795) | (79,795) | ||||||||
Other comprehensive loss | 7,368 | 7,368 | ||||||||
Balance at Feb. 02, 2019 | 832,377 | $ (9,556) | (373,436) | 254,718 | $ (9,556) | (2,706) | 953,801 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common Shares, outstanding (in shares) | 70,672 | 7,733 | 15,091 | |||||||
Net income (loss) | 94,497 | 94,497 | ||||||||
Stock-based compensation activity | 17,579 | 17,579 | ||||||||
Stock-based compensation activity (in shares) | 439 | |||||||||
Payments for Repurchase of Common Stock | (141,629) | (141,629) | ||||||||
Treasury stock, shares, acquired (in shares) | 7,078 | |||||||||
Repurchase of Class A common shares (in shares) | (7,078) | |||||||||
Dividends paid | (72,565) | (72,565) | ||||||||
Other comprehensive loss | 211 | 211 | ||||||||
Balance at Feb. 01, 2020 | 720,914 | (515,065) | 267,094 | (2,495) | 971,380 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common Shares, outstanding (in shares) | 64,033 | 7,733 | 22,169 | |||||||
Net income (loss) | (488,719) | (488,719) | ||||||||
Stock-based compensation activity | 18,773 | 18,773 | ||||||||
Stock-based compensation activity (in shares) | 633 | |||||||||
Dividends paid | (7,160) | (7,160) | ||||||||
Other comprehensive loss | (791) | (791) | ||||||||
Balance at Jan. 30, 2021 | $ 243,017 | $ (515,065) | $ (228,785) | $ (3,286) | $ 990,153 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common Shares, outstanding (in shares) | 64,666 | 7,733 | 22,169 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 0.10 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (488,719) | $ 94,497 | $ (20,466) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 88,026 | 86,649 | 79,048 | |
Stock-based compensation expense | 20,236 | 17,059 | 17,393 | |
Deferred income taxes | 34,485 | (2,931) | (11,748) | |
Loss (income) from equity investments | (9,329) | (10,149) | 12 | |
Distributions received from equity investment | 8,491 | 10,514 | 0 | |
Loss on previously held equity investment in TSL and receivables from TSL | 0 | 0 | 33,988 | |
Impairment charges | 153,606 | 7,771 | 60,760 | |
Gain (Loss) Related to Litigation Settlement | (8,990) | 0 | 0 | |
Loss on foreign currency reclassified from accumulated other comprehensive loss | 0 | 0 | 13,963 | |
Other | 695 | 3,957 | 3,780 | |
Change in operating assets and liabilities: | ||||
Accounts receivables | 23,179 | 265 | 36,151 | |
Income tax receivable | (149,824) | 0 | $ 0 | |
Inventories | 160,312 | 9,290 | (4,162) | |
Prepaid expenses and other current assets | 17,166 | (14,994) | (12,310) | |
Accounts payable | (47,014) | 36,995 | (38,059) | |
Accrued expenses | 30,144 | (26,595) | 16,984 | |
Operating lease assets and liabilities, net | 13,743 | (15,621) | 0 | |
Net cash provided by (used in) operating activities | (153,793) | 196,707 | 175,334 | |
Cash flows from investing activities: | ||||
Cash paid for property and equipment | (31,114) | (77,820) | (65,355) | |
Purchases of available-for-sale investments | 0 | (20,973) | (16,735) | |
Sales of available-for-sale investments | 24,755 | 66,389 | 71,136 | |
Additional borrowings by TSL | 0 | 0 | (15,989) | |
Repayments of borrowings by TSL | 0 | 0 | 1,160 | |
Equity investment in ABG-Camuto | 0 | 0 | (56,827) | |
Proceeds from Collection of Other Receivables | 8,990 | 4,965 | 0 | |
Cash paid for business acquisitions, net of cash acquired | 0 | 0 | (199,403) | |
Net cash provided by (used in) investing activities | 2,631 | (27,439) | (282,013) | |
Cash flows from financing activities: | ||||
Borrowing on revolving line of credit | 276,000 | 463,300 | 160,000 | |
Payments on revolving line of credit | (466,000) | (433,300) | 0 | |
Proceeds from Issuance of Secured Debt | 150,000 | 0 | 0 | |
Repayments of Secured Debt | (50,000) | 0 | 0 | |
Proceeds from Issuance of Senior Long-term Debt | 250,000 | 0 | 0 | |
Repayments of Senior Debt | (6,263) | 0 | 0 | |
Payments of Debt Issuance Costs | (21,422) | 0 | 0 | |
Cash paid for treasury shares | 0 | (141,629) | (47,530) | |
Dividends paid | (7,160) | (72,565) | (79,795) | |
Other | (2,201) | 841 | (2,711) | |
Net cash provided by (used in) financing activities | 122,954 | (183,353) | 29,964 | |
Effect of exchange rate changes on cash balances | 1,225 | 81 | 1,351 | |
Net decrease in cash, cash equivalents, and restricted cash | (26,983) | (14,004) | (75,364) | |
Cash, cash equivalents, and restricted cash, beginning of period | 86,564 | 100,568 | 175,932 | |
Cash, cash equivalents, and restricted cash, end of period | 59,581 | 86,564 | 100,568 | $ 175,932 |
Supplemental disclosures of cash flow information: | ||||
Cash paid (received) for income taxes | (11,822) | 39,450 | 41,695 | |
Cash paid for interest on debt | 19,523 | 8,323 | 864 | |
Cash paid for operating lease liabilities | 198,400 | 236,506 | 0 | |
Non-cash investing and financing activities: | ||||
Property and equipment purchases not yet paid | 1,590 | 12,164 | 13,537 | |
Operating lease liabilities arising from lease asset additions | 9,407 | 24,137 | 0 | |
Net increase to operating lease assets and lease liabilities for modifications | $ 36,109 | $ 71,945 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Business Operations- Designer Brands Inc., originally founded as DSW Inc., is one of North America's largest designers, producers and retailers of footwear and accessories. We operate in three reportable segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment. The U.S. Retail segment operates the DSW Designer Shoe Warehouse ("DSW") banner through its U.S. stores and e-commerce site. The Canada Retail segment operates The Shoe Company, Shoe Warehouse, and DSW banners through its Canada stores and e-commerce sites. Together, the U.S. Retail and Canada Retail segments are referred to as the "retail segments." The Brand Portfolio segment earns revenue from the sale of wholesale products to retailers, commission for serving retailers as the design and buying agent for products under private labels (which we refer to as "First Cost"), and the sale of branded products through the direct-to-consumer e-commerce site at www.vincecamuto.com. Our other operating segments are below the quantitative and qualitative thresholds for reportable segments and are aggregated into Other for segment reporting purposes. On May 10, 2018, we acquired the remaining interest in Town Shoes Limited ("TSL") that we did not previously own. Beginning with our second quarter of fiscal 2018, TSL ceased being accounted for under the equity method of accounting and was accounted for as a consolidated wholly owned subsidiary. As a result of this acquisition, we operate a Canadian retailer of branded footwear and accessories. Subsequent to the acquisition, and as a result of our strategic review, we exited the Town Shoes banner in Canada during fiscal 2018. On November 5, 2018, we completed the acquisition of Camuto LLC, doing business as "Camuto Group," a footwear design and brand development organization, from Camuto Group LLC (the "Sellers"). The Camuto Group acquisition provides us a global production, sourcing and design infrastructure, including operations in Brazil and China, footwear licenses of brands, including Jessica Simpson and Lucky Brand, and branded e-commerce sites as reported in the Brand Portfolio segment. Also on November 5, 2018, in partnership with Authentic Brands Group LLC, a global brand management and marketing company, we formed ABG-Camuto LLC ("ABG-Camuto"), a joint venture in which we have a 40% interest. This joint venture acquired several intellectual property rights from the Sellers, including Vince Camuto, Louise et Cie, and others, and will focus on licensing and developing new category extensions to support the global growth of these brands. We have entered into a licensing agreement with ABG-Camuto whereby we pay royalties to ABG-Camuto, with the royalty expense included in our cost of sales, based on the sales of footwear, handbags and jewelry, subject to guaranteed minimums. ABG-Camuto also earns royalties on sales from third parties that license the brand names to produce non-footwear product categories. Given our 40% ownership interest in ABG-Camuto, we recognize earnings under the equity method, which is included within the Brand Portfolio segment as ABG-Camuto and considered an integral part of the Brand Portfolio segment business. 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. This reporting schedule is followed by many national retail companies and typically results in a 52-week fiscal year, but occasionally will contain an additional week resulting in a 53-week fiscal year. The periods presented in these consolidated financial statements each consisted of 52 weeks. Variable Interest Entities- During fiscal 2019, we formed a joint venture with an entity affiliated with performing artist and celebrity Jennifer Lopez. This partnership was formed in order to design, source and sell the JLO JENNIFER LOPEZ collection, a line of footwear and handbags. Our Camuto Group business is responsible for design and sourcing, and DSW is the exclusive retailer of new products. Jennifer Lopez and her team lead the creative directive for marketing and product design, with our technical expertise and guidance. Jennifer Lopez earns fixed licensing fees and also has the opportunity to earn the Company's Class A common shares beginning in fiscal 2021 based on the expansion of our VIP rewards programs from her fan base. Based on certain terms within the joint venture operating agreement, we have determined that we have overall control of the joint venture. In addition, we provide a revolving line of credit to the joint venture and a guarantee for funding in excess of the joint venture's equity. As a result, we are considered the primary beneficiary of the joint venture and it is consolidated within our financial statements. Assets and liabilities of the joint venture are immaterial. We recognize all of the losses of the joint venture up to the amounts guaranteed and share any profits between the partners under the terms of the joint venture operating agreement. Impacts of COVID-19- In March 2020, the World Health Organization declared the coronavirus disease ("COVID-19") outbreak a pandemic. On March 18, 2020, to help control the spread of the virus and protect the health and safety of our customers, associates, and the communities we serve, we temporarily closed all of our stores in the U.S. and Canada. In addition, we took several actions in late March 2020 to reduce costs and operations to levels that were more commensurate with then-current sales, including furloughs and pay reductions. As this continues to be an unprecedented period of uncertainty, we have made and may continue to make adjustments to our operational plans, inventory controls, and liquidity management, as well as reductions to our expense and capital expenditure plans. During the second quarter and into the third quarter of fiscal 2020, we re-opened all of our stores, discontinued the furlough program, and restored pay for our associates that had taken pay reductions. Beginning in July 2020, we initiated an internal reorganization and reduction of our workforce with additional actions taken throughout fiscal 2020, resulting in the elimination of approximately 1,000 associate positions, including over 200 vacant positions that will not be filled. The charges recorded as a result of this reorganization are included in our integration and restructuring costs discussed below. Following the re-opening of stores, we experienced and have continued to experience significantly reduced customer traffic and net sales, which included subsequent store closures and reduced hours in certain areas, primarily in Canada, where government-imposed restrictions were mandated. Our retail customers in the Brand Portfolio segment have had and are having similar experiences. Given the continuation of overall depressed consumer sentiment, customer behavior has been and may continue to be slow to return to pre-COVID-19 patterns and levels, if at all. We have continued to serve our customers through our e-commerce businesses during the period that our stores were closed and beyond, but store closures primarily during the first half of fiscal 2020 and continuing reduced customer traffic resulted in a sharp decline in our net sales and cash flows. As a result of the material reduction in net sales and cash flows during fiscal 2020, we performed impairment analyses for our U.S. Retail and Canada Retail segments at the store-level, which represents the lowest level for which identifiable cash flows are independent of the cash flows of other assets. The carrying amount of the store asset group, primarily made up of operating lease assets, leasehold improvements and fixtures, is considered impaired when the carrying value of the asset group exceeds the expected future cash flows from the asset group. The impairment loss recognized is the excess of the carrying value of the asset or asset group over its fair value (categorized as Level 3 under the fair value hierarchy). Fair value at the store level is typically based on projected discounted cash flows over the remaining lease term. In addition, we evaluated other long-lived assets based on our intent to use such assets going forward. During fiscal 2020, we recorded impairment charges of $127.1 million ($104.2 million and $22.9 million for the U.S. Retail and Canada Retail segments, respectively), including impairment charges during the fourth quarter of fiscal 2020 of $4.2 million ($1.0 million and $3.2 million for the U.S. Retail and Canada Retail segments, respectively). Also during fiscal 2020, we recorded an impairment charge of $6.5 million for the Brand Portfolio segment customer relationship intangible asset resulting in a full impairment due to the lack of projected cash flows over the remaining useful life (categorized as Level 3 under the fair value hierarchy). As a result of the material reduction in net sales and cash flows due to the temporary closure of all of our stores, the decrease in net sales from our retailer customers and the decrease in the Company's market capitalization due to the impact of the COVID-19 outbreak on macroeconomic conditions, we performed our impairment analysis for goodwill and other indefinite-lived intangible assets during the first quarter of fiscal 2020. We calculated the fair value of the reporting units with goodwill primarily based on a discounted cash flow analysis (categorized as Level 3 under the fair value hierarchy). Our analysis concluded that the fair value of the U.S. Retail segment, which is also the reporting unit, and other indefinite-lived intangible assets were in excess of the carrying values, but that the fair value of the First Cost reporting unit within the Brand Portfolio segment did not exceed its carrying value. Accordingly, during fiscal 2020, we recorded an impairment charge of $20.0 million for the First Cost reporting unit in the Brand Portfolio segment, resulting in a full impairment. We updated our impairment analysis for the goodwill within the U.S. Retail segment and other indefinite-lived intangible assets during the fourth quarter of fiscal 2020 as part of our annual evaluation, which resulted in the fair values being in excess of the carrying values. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which, among other things, provided employer payroll tax credits for wages paid to associates who were unable to work during the COVID-19 outbreak and options to defer payroll tax payments. Based on our evaluation of the CARES Act, we qualify for certain employer payroll tax credits that were treated as government subsidies to offset related operating expenses, as well as the deferral of payroll and other tax payments in the future. Similar credits and deferrals were also available in Canada. During fiscal 2020, the qualified government credits reduced our operating expenses by $11.4 million on our consolidated statements of operations. A s of January 30, 2021 , we had $10.0 million of deferred qualified payroll and other tax obligations, half of which is included in accrued expenses on the consolidated balance sheets that we expect to pay at the end of fiscal 2021, with the remaining incl uded in other non-current liabilities on the consolidated balance sheets that we expect to pay at the end of fiscal 2022. We recorded our income tax expense, income tax receivable, and deferred tax assets and related liabilities based on management’s best estimates. Additionally, we assessed the likelihood of realizing the benefits of our deferred tax assets. Our ability to recover these deferred tax assets depends on several factors, including the amount of net operating losses we can carry back and our ability to project future taxable income. One of the provisions of the CARES Act allows net operating losses generated within tax years 2018 through 2020 to be carried back up to five years, including years in which the U.S. federal statutory tax rate was 35%, as opposed to the current rate of 21%. In evaluating future taxable income, significant weight is given to positive and negative evidence that is objectively verifiable. As a result of the losses incurred in fiscal 2020 due to COVID-19, we are in a three-year cumulative loss position as of January 30, 2021, which is significant objective negative evidence in considering whether deferred tax assets are realizable. Such objective evidence limits the ability to consider other subjective evidence, such as the projection of future taxable income. A valuation allowance has been recognized as a reserve on the total deferred tax asset balance due to the uncertainty of realization of our loss carry forwards and other deferred tax assets. Our effective tax rate changed from 21.1% for fiscal 2019 to 19.7% for fiscal 2020. The decrease in the effective tax rate was primarily driven by the recording of an additional valuation allowance of $87.6 million partially offset by the ability to carry back current year losses to a tax year where the U.S. federal statutory tax rate was 35%. In addition, during fiscal 2020, we incurred $10.6 million of incremental costs directly related to COVID-19, including hazard pay for store associates, termination fees, pre-open cleaning services, signs used to encourage customers in social distancing, plexiglass shields used at store registers, and supplies of thermometers, masks, gloves, cleaning agents, and other items. The COVID-19 pandemic remains challenging and unpredictable. The ongoing and prolonged nature of the outbreak has continued to adversely impact our business and may lead to further adjustments to store operations, as well as continue to drive changes in customer behaviors and preferences, including reductions in consumer spending, which may necessitate further shifts in our business model. As such, the ultimate impacts of the COVID-19 outbreak to our businesses remain highly uncertain and will depend on future developments, including the widespread availability, use and effectiveness of vaccines, which are highly uncertain and cannot be predicted. We may have additional write-downs or adjustments to inventories, receivables, long-lived assets, intangibles, goodwill, and the valuation allowance on deferred tax assets. Integration and Restructuring Costs- During fiscal 2020, we incurred restructuring costs, which consisted primarily of severance of $15.2 million ( $5.5 million , $0.8 million and $8.9 million for the U.S. Retail, Canada Retail and Brand Portfolio segments, respectively), including severance charges during the fourth quarter of fiscal 2020 of $5.2 million (primarily related to the Brand Portfolio segment), and professional fees of $2.4 million. During fiscal 2019, we incurred integration and restructuring costs related to our prior year acquisition activity, which consisted primarily of severance of $3.9 million, fees for terminating joint ventures of $7.2 million, and professional fees and other integration costs of $6.6 million. During fiscal 2018, we incurred restructuring costs of $5.6 million in severance, primarily related to changes to our store staffing model. As of January 30, 2021 and February 1, 2020, we had $6.5 million and $1.7 million, respectively, of severance liability included in accrued expenses on the consolidated balance sheets. Gain on Settlement- During fiscal 2020, we collected $9.0 million , net of legal costs incurred, and recorded a gain to operating expenses in the consolidated statements of operations that was due to a settlement with a vendor related to costs incurred on an internal-use software project that was capitalized and then impaired in a previous fiscal year. Principles of Consolidation- The consolidated financial statements include the accounts of Designer Brands Inc. and its subsidiaries, including variable interest entities. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in United States dollars ("USD"), unless otherwise noted. Use of Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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 net sales and expenses during the reporting period. Certain estimates and assumptions use forecasted financial information using information reasonably available to us, along with the estimated, but uncertain, future impacts of the COVID-19 outbreak. Significant estimates and assumptions are required as a part of accounting for sales returns allowances, customer allowances and discounts, gift card breakage income, deferred revenue associated with loyalty programs, valuation of inventories, depreciation and amortization, impairments of long-lived assets, intangibles and goodwill, lease accounting, legal and tax reserves, income taxes, and self-insurance reserves. Although we believe these estimates and assumptions are reasonable, they are based on management's knowledge of current events and actions that we may undertake in the future. Changes in facts and circumstances may result in revised estimates and assumptions, and actual results could differ from these estimates. Revenue Recognition- Sales from the U.S. Retail and Canada Retail segments are recognized upon customer receipt of merchandise, net of estimated returns and exclude sales tax. Customers can purchase products from one of our stores, online or from our mobile application. For products shipped directly to our customers, we recognize the sale upon the estimated customer receipt date based on historical delivery transit times. Revenue from shipping and handling is recorded in net sales while the related costs are included in cost of sales in the consolidated statements of operations. For products shipped directly to our customers from our suppliers (referred to as "drop ship"), we record gross sales upon customer receipt based on the price paid by the customers as we have determined that we are the principal party responsible for the sale transaction. Sales from the Brand Portfolio segment are recognized upon transfer of control. Generally, our wholesale customers arrange their own transportation of merchandise and control is transferred at the time of shipment. Sales are recorded at the transaction price, excluding sales tax, net of estimated reserves for customer returns, allowances and discounts. Direct-to-consumer sales are also recognized upon shipment of merchandise, net of estimated returns and exclude sales tax. First Cost commission income is recognized at the point in time when the customer's freight forwarder takes control of the related merchandise. Gift Cards- Amounts received from the sale of gift cards are recorded as a liability and are recognized as sales when the cards are redeemed for merchandise. Based on historical information, the likelihood of a gift card remaining unredeemed (referred to as "breakage") can be reasonably estimated at the time of gift card issuance. Breakage income is recognized over the estimated average redemption period of redeemed gift cards. Loyalty Programs- We offer loyalty programs to our customers in the U.S. and Canada. Members under the programs earn points based on their level of spending, as well as for various other activities. Upon reaching a specified point threshold, members receive reward certificates that may be redeemed for purchases made within the stated expiration date. We record a reduction of net sales when points are awarded based on an allocation of the initial customer purchase and the stand-alone value of the points earned. We maintain a deferred liability for the outstanding points and certificates based on historical conversion and redemption rates. The deferred liability is reduced and sales are recognized when certificates are redeemed or when points and certificates expire. Cost of Sales- Cost of sales from the U.S. Retail and Canada Retail segments is recognized net of estimated returns. In addition to the cost of merchandise sold, which includes freight and the impact of markdowns, shrink and other inventory valuation adjustments, we include in cost of sales expenses associated with distribution and fulfillment and store occupancy. Distribution and fulfillment expenses comprise of labor costs, rent, depreciation, insurance, utilities, maintenance and other operating costs associated with the operations of the distribution and fulfillment centers. Store occupancy expenses include rent, utilities, repairs, maintenance, insurance, janitorial costs, and occupancy-related taxes, but exclude depreciation. Cost of sales from the Brand Portfolio segment is recognized net of estimated returns. In addition to the cost of merchandise sold, which includes freight and the impact of inventory valuation adjustments, we include in cost of sales royalty expense for licensed brands. Operating Expenses- Operating expenses include expenses related to store management and store payroll costs, advertising, store depreciation, new store costs, design, sourcing and distribution costs associated with the Brand Portfolio segment, and corporate expenses. Corporate expenses include expenses related to buying, information technology, depreciation and amortization expense for corporate assets, marketing, legal, finance, outside professional services, customer service center expenses, and payroll-related costs for associates. Stock-Based Compensation- We recognize compensation expense for awards of stock options, restricted stock units ("RSUs"), and director stock units, based on the fair value on the grant date and on a straight-line basis over the requisite service period for the awards that are expected to vest, with forfeitures estimated based on our historical experience and future expectations. Stock-based compensation is included in operating expenses in the consolidated statements of operations. New Store Opening Costs- Costs associated with the opening of new stores are expensed as incurred. During fiscal 2020, 2019 and 2018, new store opening costs, primarily pre-opening rent and marketing expenses, were $2.7 million, $2.6 million and $2.8 million, respectively. Marketing Expense- The cost of advertising is generally expensed when the advertising first takes place or when mailed. During fiscal 2020, 2019 and 2018, marketing costs were $131.7 million, $123.9 million and $121.4 million, respectively. Non-Operating Income (Expenses), Net- Non-operating income (expenses), net, includes gains and losses from foreign currency revaluation, realized gains and losses related to our investment portfolio, and fair value adjustments of pre-existing assets as a result of the acquisition of the remaining interest in TSL. Income Taxes- We account for income taxes under the asset and liability method. We determine the aggregate amount of income tax expense to accrue and the amount that will be currently payable based upon tax statutes of each jurisdiction in which we do business. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and respective tax bases and operating loss and tax credit carryforwards, as measured using enacted tax rates expected to be in effect in the periods when temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. We review and update our tax positions as necessary to add any new uncertain tax positions taken, or to remove previously identified uncertain positions that have been adequately resolved. Additionally, uncertain positions may be remeasured as warranted by changes in facts or law. Accounting for uncertain tax positions requires estimating the amount, timing and likelihood of ultimate settlement. Although we believe that these estimates are reasonable, 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 represented cash that is restricted as to withdrawal or usage and consisted of a mandatory cash deposit for certain outstanding letters of credit. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (in thousands) January 30, 2021 February 1, 2020 February 2, 2019 Cash and cash equivalents $ 59,581 $ 86,564 $ 99,369 Restricted cash, included in prepaid expenses and other current assets — — 1,199 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 59,581 $ 86,564 $ 100,568 Investments - We determine the balance sheet classification of investments at the time of purchase and evaluate the classification at each balance sheet date. All income generated from these investments is recorded as interest income. For prior period investments, we held securities in bonds and term notes that were classified as available-for-sale, which was based on our intention of the use of the investments. The unrealized holding gains or losses for the available-for-sale securities were reported in other comprehensive income (loss). We account for our purchases and sales of investments on the trade date of the investment. We account for investments using the equity method of accounting when we exercise significant influence over the investment. If we do not exercise significant influence, we account for the investment using the cost method of accounting. Cost method investments are included in other assets on the consolidated balance sheets. We evaluate our investments for impairment and whether impairment is other-than-temporary at each balance sheet date. Receivables, net - Receivables are classified as current assets because the average collection period is generally shorter than one year. We monitor our exposure for credit losses based upon specific receivable balances and we record related allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We utilize an unrelated third-party provider for credit and collection services for receivables from the sale of wholesale products to certain retailers. This third-party provider guarantees payment for the majority of the serviced receivables. Inventories- All of our inventory is made up of finished goods. The U.S. Retail segment inventory is accounted for using the retail inventory method and is stated at the lower of cost or market. Under the retail inventory method, the valuation of inventories at cost and the resulting gross profits are determined by applying a calculated cost-to-retail ratio to the retail value of inventories. The cost basis of inventories reflected on the balance sheet is decreased by charges to cost of sales at the time the retail value of the inventory is lowered by markdowns. As a result, earnings are negatively impacted as the merchandise is marked down prior to sale. The Canada Retail segment and the Brand Portfolio segment inventory is accounted for using the moving average cost method and is stated at the lower of cost or net realizable value. We monitor aged inventory for obsolete and slow-moving inventory that may need to be liquidated in the future at amounts below cost. Reductions to inventory values establish a new cost basis. Favorable changes in facts or circumstances do not result in an increase in the newly established cost basis. We perform physical inventory counts or cycle counts on all inventory on hand throughout the year and adjust the recorded balance to reflect the results. We record estimated shrink between physical inventory counts, based on historical experience and recent results, less amounts realized. Inherent in the calculation of inventories are certain significant judgments and estimates, including setting the original merchandise retail value, markdowns, shrink, and liquidation values. The ultimate amount realized from the sale of inventory and write offs from counts could differ from management estimates. Concentration of Risks- We are subject to risk due to concentration of merchandise coming from China. All of the products we manufacture in the Brand Portfolio segment come from third-party facilities outside of the U.S., with 73% of units sourced from China, whereas our U.S. Retail and Canada Retail merchandise is purchased from both domestic and foreign vendors. Many of our domestic vendors import a large portion of their merchandise from abroad, with the majority manufactured in China. We are also subject to concentration of vendor risk within the U.S. Retail and Canada Retail segments. During fiscal 2020, three key third-party vendors together supplied approximately 22% of our retail merchandise. Financial instruments, which principally subject us to concentration of credit risk, consist of cash and cash equivalents and investments. We invest excess cash when available through financial institutions in money market accounts and investment securities. At times, such amounts invested through banks may be in excess of Federal Deposit Insurance Corporation insurance limits, and we mitigate the risk by utilizing multiple banks. Fair Value- Fair value is defined as the price that would be received in the sale of 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. We measure available-for-sale investments at fair value on a recurring basis. These investments are measured using a market-based approach using inputs such as prices of similar assets in active markets (categorized as Level 2). The carrying value of cash and cash equivalents, receivables and accounts payables approximated their fair values due to their short-term nature. The fair value of borrowings under our senior secured asset-based revolving credit facility ("ABL Revolver") and our previous senior unsecured revolving credit agreement ("Credit Facility") approximated the carrying value. As of January 30, 2021, the fair value of borrowings under our senior secured term loan ("Term Loan") was $254.1 million compared to the carrying value of $243.8 million . The fair value of debt borrowings was estimated based on current interest rates offered for similar instruments (categorized as Level 2). Property and Equipment, net- Property and equipment, net, are stated at cost less accumulated depreciation determined by the straight-line method over the expected useful life of assets. The net book value of property or equipment sold or retired is removed from the asset and related accumulated depreciation accounts with any resulting net gain or loss included in results of operations. The estimated useful lives by class of asset are as follows: Useful Lives Buildings 39 years Building and leasehold improvements 3 to 20 years or the lease term if shorter Furniture, fixtures and equipment 3 to 10 years Software 5 to 10 years Internal Use Software Costs- Costs related to software developed or obtained for internal use are expensed as incurred until the application development stage has been reached. Once the application development stage has been reached, certain qualifying costs are capitalized until the softwa |
Acquisitions and Equity Method
Acquisitions and Equity Method Investment | 12 Months Ended |
Jan. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
ACQUISITIONS AND EQUITY METHOD INVESTMENT | ACQUISITIONS AND EQUITY METHOD INVESTMENT Step Acquisition of TSL- On May 10, 2018, we acquired the remaining interest in TSL for $36.2 million CAD ($28.2 million USD), net of acquired cash of $8.5 million CAD ($6.6 million USD), by exercising our call option. This was accounted for as a step acquisition whereby we remeasured to fair value our previously held assets, which included our equity investment in TSL and receivables from TSL, and included these assets in the determination of the purchase price. During fiscal 2018, as a result of the remeasurement, we recorded a loss of $34.0 million to non-operating expenses, net, in the consolidated statements of operations. During fiscal 2018, our consolidated statements of operations included net sales and net losses for TSL of $220.3 million and $48.9 million, respectively, which included the pre-tax losses from the wind down of operations for the Town Shoes banner, the goodwill impairment charge of $41.8 million, long-lived asset impairment charges of $3.6 million and lease exit charges of $15.5 million. Primarily in fiscal 2018, we incurred $3.1 million of acquisition-related costs as a result of the step acquisition (not included in the TSL net loss disclosed in the previous sentence), which were included in operating expenses in the consolidated statements of operations. Acquisition of Camuto Group- On November 5, 2018, we completed the acquisition of all of the outstanding securities of Camuto Group for $166.3 million, net of acquired cash of $9.7 million and a working capital settlement of $5.0 million received during fiscal 2019. The purchase price of the acquisition, along with the acquired equity investment in ABG-Camuto (discussed below), was funded with available cash and borrowings on the revolving line of credit of $160.0 million. During fiscal 2018, our consolidated statements of operations included net sales from external customers and net losses for Camuto Group of $89.6 million and $16.2 million, respectively. We incurred $22.2 million of acquisition-related costs as a result of the acquisition (not included in the Camuto Group net loss disclosed in the previous sentence), which were included in operating expenses in the consolidated statements of operations. Equity Investment in ABG-Camuto- On November 5, 2018, we acquired a 40% interest in the newly formed ABG-Camuto joint venture for $56.8 million in partnership with Authentic Brands Group LLC. Also on November 5, 2018, ABG-Camuto acquired several intellectual property rights from the Sellers and entered into a licensing agreement with us, through which ABG-Camuto earns royalties from the net sales of Camuto Group under the brands acquired. Activity related to our equity investment in ABG-Camuto was as follows: Fiscal (in thousands) 2020 2019 2018 Balance at beginning of period $ 57,760 $ 58,125 $ — Initial investment in ABG-Camuto — — 56,827 Share of net earnings 9,329 10,149 1,298 Distributions received (8,491) (10,514) — Balance at end of period $ 58,598 $ 57,760 $ 58,125 Combined Results- The following table provides the supplemental unaudited pro forma net sales and net income of the combined entity had the acquisition dates of TSL and Camuto Group and the investment in ABG-Camuto been the first day of our fiscal 2017: (in thousands) Fiscal 2018 Net sales $ 3,562,498 Net income $ 74,367 The amounts in the supplemental pro forma results apply our accounting policies, eliminate intercompany transactions, assume the acquisition-related transaction costs were incurred in fiscal 2017, and reflect adjustments for additional expenses that would have been charged assuming borrowings on the revolving line of credit of $160.0 million and the same fair value adjustments to inventory, property and equipment, and acquired intangibles had been applied on the first day of our fiscal 2017. Related to the TSL acquisition, the supplemental pro forma results also exclude the loss related to the remeasurement of previously held assets, the net loss of foreign currency translation related to the previously held balances from accumulated other comprehensive loss, and the goodwill impairment charge. Because the ABG-Camuto investment was integral to the Camuto Group acquisition, the supplemental pro forma results include royalty expenses that would be due to ABG-Camuto using the guaranteed minimum royalties per the license agreement and the related earnings from our equity investment in ABG-Camuto had the transactions occurred on the first day of our fiscal 2017. Accordingly, these supplemental pro forma results have been prepared for comparative purposes only and are not intended to be indicative of results of operations that would have occurred had the acquisitions actually occurred in the prior year period or indicative of the results of operations for any future period. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Jan. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Net Sales- The following table presents net sales disaggregated by product and service category for each segment: Fiscal (in thousands) 2020 2019 2018 Net sales: U.S. Retail segment: Women's footwear $ 1,161,836 $ 1,853,265 $ 1,866,121 Men's footwear 386,338 539,917 561,722 Kids' footwear 151,121 158,261 118,859 Accessories and other 101,028 193,952 192,287 1,800,323 2,745,395 2,738,989 Canada Retail segment: Women's footwear 92,623 133,762 123,323 Men's footwear 45,665 63,140 57,567 Kids' footwear 37,233 40,995 30,216 Accessories and other 7,138 11,120 9,219 182,659 249,017 220,325 Brand Portfolio segment: Wholesale 197,940 379,698 86,209 Commission income 18,509 26,424 3,894 Direct-to-consumer 32,197 42,163 9,709 248,646 448,285 99,812 Other 62,909 122,090 128,968 Total segment net sales 2,294,537 3,564,787 3,188,094 Elimination of intersegment sales (59,818) (72,100) (10,176) Total net sales $ 2,234,719 $ 3,492,687 $ 3,177,918 Deferred Revenue Liabilities- We record deferred revenue liabilities, included in accrued expenses on the consolidated balance sheets, for remaining obligations we have to our customers. The following table presents the changes and total balances for gift cards and our loyalty programs: Fiscal (in thousands) 2020 2019 2018 Gift cards: Beginning of period $ 35,461 $ 34,998 $ 32,792 Gift cards redeemed and breakage recognized to net sales (59,173) (91,000) (90,569) Gift cards issued 58,154 91,463 92,775 End of period $ 34,442 $ 35,461 $ 34,998 Loyalty programs: Beginning of period $ 16,138 $ 16,151 $ 21,282 Loyalty certificates redeemed and expired and other adjustments recognized to net sales (25,049) (37,311) (41,210) Deferred revenue for loyalty points issued 20,290 37,298 36,079 End of period $ 11,379 $ 16,138 $ 16,151 Customer Allowances- We reduce sales by the amount of actual and remaining expected customer allowances, discounts and returns, and cost of sales by the amount of merchandise we expect to recover. Customer allowances are provided to our wholesale customers for margin assistance, co-op advertising support, and various other deductions. We estimate the reserves needed for margin assistance by reviewing inventory levels held by retailers, expected markdowns, gross margins realized, and other performance indicators. Product returns and other customer deductions are estimated based on anticipated future returns using historical experience and trends. Co-op advertising allowances are estimated based on arrangements with customers. Customer allowance reserves are included in accrued expenses on the consolidated balance sheets. The following table presents the changes and total balances for sales reserves: Fiscal (in thousands) 2020 2019 2018 Sales returns reserve: Beginning of period $ 21,408 $ 17,743 $ 14,130 Net sales reduced for estimated returns 279,923 448,886 402,274 Actual returns during the period (283,998) (445,221) (398,661) End of period $ 17,333 $ 21,408 $ 17,743 Customer allowances and discounts reserve: Beginning of period $ 11,528 $ 13,094 $ — Assumed liability in acquisitions and measurement period adjustments — (3,267) 15,434 Net sales reduced for estimated allowances and discounts 14,363 43,733 10,669 Actual allowances and discounts during the period (21,312) (42,032) (13,009) End of period $ 4,579 $ 11,528 $ 13,094 As of January 30, 2021, February 1, 2020 and February 2, 2019, the asset for recovery of merchandise returns was $8.4 million, $11.9 million and $10.1 million, respectively, and is included in prepaid expenses and other current assets on the consolidated balance sheets. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Schottenstein Affiliates As of January 30, 2021, the Schottenstein Affiliates consisted of entities owned or controlled by Jay L. Schottenstein, the executive chairman of our Board of Directors, and members of his family. As of January 30, 2021, the Schottenstein Affiliates beneficially owned approximately 16% of the Company's outstanding common shares, representing approximately 52% of the combined voting power, consisting of, in the aggregate, 3.9 million Class A common shares and 7.7 million Class B common shares. The following summarizes the related party transactions with Schottenstein Affiliates for the relevant periods: Leases- We lease our fulfillment center and certain store locations owned by Schottenstein Affiliates. See Note 14, Leases , for rent expense and future minimum lease payment requirements associated with the Schottenstein Affiliates. Other Purchases and Services - During fiscal 2020, 2019 and 2018, we had other purchases and services we incurred from the Schottenstein Affiliates of $4.8 million, $6.0 million and $6.5 million, respectively. Due to Related Parties- As of January 30, 2021 and February 1, 2020, we had amounts due to the Schottenstein Affiliates of $1.2 million and $0.9 million, respectively, included in accounts payable on the consolidated balance sheets. ABG-Camuto We have a 40% interest in our equity investment in ABG-Camuto. We entered into a licensing agreement with ABG-Camuto, pursuant to which we pay royalties on the net sales of the brands owned by ABG-Camuto, subject to guaranteed minimums. For both fiscal 2020 and 2019, we recorded $18.2 million of royalty expense payable to ABG-Camuto, respectively. See Note 15, Commitments and Contingencies - Contractual Obligations , for future guaranteed minimum royalty payment requirements to ABG-Camuto. Amounts due to ABG-Camuto for all periods presented were immaterial. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is based on net income (loss) 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 and RSUs calculated using the treasury stock method. The following is a reconciliation of the number of shares used in the calculation of earnings (loss) per share: Fiscal (in thousands) 2020 2019 2018 Weighted average basic shares outstanding 72,198 73,602 80,026 Dilutive effect of stock-based compensation awards — 1,003 — Weighted average diluted shares outstanding 72,198 74,605 80,026 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The DSW Inc. 2014 Long-Term Incentive Plan (the "Plan") provides for the issuance of stock-based compensation awards for eligible recipients. The Plan replaced the DSW Inc. 2005 Equity Incentive Plan but did not affect awards granted under that plan, some of which remain outstanding. Eligible recipients include key associates as well as directors. The maximum number of shares of Class A common shares underlying awards which may be issued over the term of the Plan cannot exceed 11.0 million shares. As of January 30, 2021, 9.2 million shares of Class A common shares remain available for future stock-based compensation grants under the Plan. Stock-based compensation expense consisted of the following: Fiscal (in thousands) 2020 2019 2018 Stock options $ 1,467 $ 2,079 $ 4,900 Restricted and director stock units 18,769 14,980 12,493 $ 20,236 $ 17,059 $ 17,393 Stock Options- Stock options were granted with an exercise price per share equal to the fair market value of our common stock on the grant date. Stock options generally vest 20% per year on a cumulative basis and remain exercisable for a period of 10 years from the date of grant. Stock option activity for the periods presented and unvested options as of January 30, 2021 was immaterial. Restricted Stock Units- Grants of time-based RSUs generally cliff vest over three years and performance-based RSUs generally cliff vest over three years based upon the achievement of pre-established goals as of the end of the first year of the term. RSUs receive dividend equivalents in the form of additional restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. The grant date fair value of RSUs is based on the closing market price of the Class A common shares on the date of the grant. The following table summarizes the stock-based compensation award activity for unvested stock units for fiscal 2020: Time-Based RSUs Performance-Based RSUs (shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding - beginning of period 1,687 $ 21.37 768 $ 21.24 Granted 5,880 $ 6.57 11 $ 5.49 Vested (358) $ 19.58 (226) $ 19.74 Forfeited (764) $ 10.41 (13) $ 21.94 Outstanding - end of period 6,445 $ 9.20 540 $ 21.84 The total fair value of time-based RSUs that vested during fiscal 2020, 2019 and 2018 was $6.5 million, $3.8 million and $1.7 million, respectively. As of January 30, 2021, the total compensation cost related to unvested time-based RSUs not yet recognized was $27.9 million, with a weighted average expense recognition period remaining of 2.1 years. The total fair value of performance-based RSUs that vested during fiscal 2020, 2019 and 2018 was $4.0 million, $3.9 million and $3.2 million, respectively. As of January 30, 2021, the total compensation cost related to unvested performance-based RSUs not yet recognized was approximately $2.3 million, with a weighted average expense recognition period remaining of 1.0 year. Director Stock Units- We issue stock units to directors who are not associates. Stock units are automatically granted to each director on the date of each annual meeting of shareholders based on the closing market price of the Class A common shares. In addition, each director eligible to receive compensation for board service may elect to have the cash portion of such compensation paid in the form of stock units. Stock units granted to directors vest immediately and directors are given the option to settle their units 30 days after the grant date, at a specified date more than 30 days following the grant date, or upon completion of service. Stock units granted to directors not yet settled, which are not subject to forfeiture, are considered to be outstanding for the purposes of computing basic earnings (loss) per share. As of January 30, 2021, we had 0.4 million director stock units not yet settled. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 30, 2021 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Shares- Our Class A common shares are listed for trading under the ticker symbol "DBI" on the New York Stock Exchange. There is currently no public market for the Company's Class B common shares, but the Class B common shares can be exchanged for the Company's Class A common shares at the election of the holder on a share for share basis. Holders of Class A common shares are entitled to one vote per share and holders of Class B common shares are entitled to eight votes per share on matters submitted to shareholders for approval. The following table provides additional information for our common shares: January 30, 2021 February 1, 2020 (in thousands) Class A Class B Class A Class B Authorized shares 250,000 100,000 250,000 100,000 Issued shares 86,835 7,733 86,202 7,733 Outstanding shares 64,666 7,733 64,033 7,733 Treasury shares 22,169 — 22,169 — We have authorized 100 million shares of no-par value preferred shares with no shares issued for any of the periods presented. Share Repurchases - On August 17, 2017, the Board of Directors authorized the repurchase of an additional $500 million of Class A common shares under our share repurchase program, which was added to the $33.5 million remaining from the previous authorization, with $334.9 million of Class A common shares that remain authorized under the program as of January 30, 2021. The share repurchase program is subject to the ABL Revolver and Term Loan restrictions and may be suspended, modified or discontinued at any time, and we have no obligation to repurchase any amount of our common shares under the program. Any share repurchases will be completed in the open market at times and in amounts considered appropriate based on price and market conditions. Accumulated Other Comprehensive Loss- Changes for the balances of each component of accumulated other comprehensive loss were as follows (all amounts are net of tax): (in thousands) Foreign Currency Translation Available-for-Sale Securities Total Balance, February 3, 2018 $ (9,278) $ (796) $ (10,074) Other comprehensive income (loss) before reclassifications (7,013) 192 (6,821) Amounts reclassified to non-operating expenses, net 13,963 226 14,189 Other comprehensive income 6,950 418 7,368 Balance, February 2, 2019 (2,328) (378) (2,706) Other comprehensive income (loss) before reclassifications (340) 609 269 Amounts reclassified to non-operating expenses, net — (58) (58) Other comprehensive income (loss) (340) 551 211 Balance, February 1, 2020 (2,668) 173 (2,495) Other comprehensive income (loss) before reclassifications (618) 195 (423) Amounts reclassified to non-operating income, net — (368) (368) Other comprehensive loss (618) (173) (791) Balance, January 30, 2021 $ (3,286) $ — $ (3,286) |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Jan. 30, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | RECEIVABLES Receivables, net, consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Customer accounts receivables: Serviced by third-party provider with guaranteed payment $ 29,615 $ 54,209 Serviced by third-party provider without guaranteed payment 363 365 Serviced in-house 4,576 7,630 Income tax receivable 149,824 — Other receivables 12,865 28,166 Total receivables 197,243 90,370 Allowance for doubtful accounts (1,194) (1,219) $ 196,049 $ 89,151 The following presents the activity in our balance in the allowance for doubtful accounts: Fiscal (in thousands) 2020 2019 2018 Allowance for doubtful accounts - beginning of period $ (1,219) $ (939) $ — Provision for bad debts (1,041) (1,446) (939) Recoveries and other adjustments 1,066 1,166 — Allowance for doubtful accounts - end of period $ (1,194) $ (1,219) $ (939) |
Investments
Investments | 12 Months Ended |
Jan. 30, 2021 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investments in available-for-sale securities consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Carrying value of investments $ — $ 24,831 Unrealized gains included in accumulated other comprehensive loss — 143 Fair value $ — $ 24,974 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net, consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Land $ 1,110 $ 1,110 Buildings 12,485 12,485 Building and leasehold improvements 446,937 449,958 Furniture, fixtures and equipment 471,586 482,573 Software 194,064 189,291 Construction in progress 10,659 32,645 Total property and equipment 1,136,841 1,168,062 Accumulated depreciation and amortization (840,372) (773,053) $ 296,469 $ 395,009 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill- Activity related to our goodwill was as follows: January 30, 2021 February 1, 2020 (in thousands) Goodwill Accumulated Impairments Net Goodwill Accumulated Impairments Net Beginning of period by segment: U.S. Retail $ 93,655 $ — $ 93,655 $ 25,899 $ — $ 25,899 Canada Retail 41,610 (41,610) — 42,048 (42,048) — Brand Portfolio 19,989 — 19,989 63,614 — 63,614 155,254 (41,610) 113,644 131,561 (42,048) 89,513 Activity by segment: U.S. Retail - Allocation of goodwill from Brand Portfolio — — — 67,756 — 67,756 Canada Retail - Currency translation adjustment 1,476 (1,476) — (438) 438 — Brand Portfolio: Impairment charges — (19,989) (19,989) — — — Purchase price and allocation adjustments — — — 24,131 — 24,131 Allocation of goodwill to U.S. Retail — — — (67,756) — (67,756) 1,476 (21,465) (19,989) 23,693 438 24,131 End of period by segment: U.S. Retail 93,655 — 93,655 93,655 — 93,655 Canada Retail 43,086 (43,086) — 41,610 (41,610) — Brand Portfolio 19,989 (19,989) — 19,989 — 19,989 $ 156,730 $ (63,075) $ 93,655 $ 155,254 $ (41,610) $ 113,644 Intangible Assets- Intangible assets consisted of the following: January 30, 2021 February 1, 2020 (in thousands) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Definite-lived customer relationships $ 2,909 $ (2,791) $ 118 $ 9,360 $ (2,044) $ 7,316 Indefinite-lived trademarks and tradenames 15,517 — 15,517 15,530 — 15,530 $ 18,426 $ (2,791) $ 15,635 $ 24,890 $ (2,044) $ 22,846 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Gift cards $ 34,442 $ 35,461 Accrued compensation and related expenses 49,864 26,768 Accrued taxes 24,206 19,399 Loyalty programs deferred revenue 11,379 16,138 Sales returns 17,333 21,408 Customer allowances and discounts 4,579 11,528 Other 58,523 63,562 $ 200,326 $ 194,264 |
Debt
Debt | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following: (in thousands) January 30, 2021 February 1, 2020 ABL Revolver $ 100,000 $ — Term Loan 243,750 — Credit Facility — 190,000 Total debt 343,750 190,000 Less unamortized Term Loan debt issuance costs (8,931) — Less current maturities of long-term debt (62,500) — Long-term debt $ 272,319 $ 190,000 As of January 30, 2021, future maturities of debt are as follows: (in thousands) Fiscal 2021 $ 62,500 Fiscal 2022 12,500 Fiscal 2023 12,500 Fiscal 2024 12,500 Fiscal 2025 243,750 Total $ 343,750 ABL Revolver- On August 7, 2020, we replaced our Credit Facility with the ABL Revolver, which provides a revolving line of credit of up to $400.0 million, including a Canadian sub-limit of up to $20.0 million, a $50.0 million sub-limit for the issuance of letters of credit, a $40.0 million sub-limit for swing loan advances for U.S. borrowings, and a $2.0 million sub-limit for swing loan advances for Canadian borrowings. Our ABL Revolver matures in August 2025 and is secured by substantially all of our personal property assets, including a first priority lien on credit card receivables and inventory and a second priority lien on personal property assets that constitute first priority collateral for the Term Loan. The amount of credit available is limited to a borrowing base based on, among other things, a percentage of the book value of eligible inventory and credit card receivables, as reduced by certain reserves. As of January 30, 2021, the ABL Revolver had a borrowing base of $400.0 million, with $100.0 million outstanding and $5.3 million in letters of credit issued, resulting in $294.7 million available for borrowings. Borrowings and letters of credit issued under the ABL Revolver accrue interest, at our option, at a rate equal to: (A) a base rate per annum equal to the greatest of (i) the prime rate, (ii) the overnight bank funding rate plus 0.5%, and (iii) the adjusted one-month London Interbank Offered Rate ("LIBOR") (as defined) plus 1.0%; or (B) an adjusted LIBOR per annum (subject to a floor of 0.75%), plus, in each instance, an applicable rate to be determined based on average availability, with an interest rate of 3.25% as of January 30, 2021. Commitment fees are based on the unused portion of the ABL Revolver. Interest expense related to the ABL Revolver includes interest on borrowings and letters of credit, commitment fees and the amortization of debt issuance costs. Term Loan- On August 7, 2020, we also entered into a $250.0 million Term Loan. The Term Loan requires minimum quarterly principal payments with the remaining outstanding balance due in August 2025. The Term Loan has limited prepayment requirements under certain conditions. The Term Loan is collateralized by a first priority lien on substantially all of our personal and real property (subject to certain exceptions), including investment property and intellectual property, and by a second priority lien on certain other personal property, primarily credit card receivables and inventory, that constitute first priority collateral for the ABL Revolver. Borrowings under the Term Loan accrue interest, at our option, at a rate equal to: (A) a base rate per annum equal to the greater of (i) 3.25%, (ii) the prime rate, (iii) the overnight bank funding rate plus 0.5%, and (iv) the adjusted one-month LIBOR plus 1.0%, plus, in each instance, 7.5%; or (B) an adjusted LIBOR per annum (subject to a floor of 1.25%), plus 8.5%, with an interest rate of 9.75% (effective interest rate of 11.81% when including the amortization of debt issuance costs) as of January 30, 2021. Debt Covenants- The ABL Revolver contains a minimum availability covenant where an event of default shall occur if availability is less than the greater of $30.0 million or 10.0% of the maximum credit amount. The Term Loan includes a springing covenant imposing a minimum earnings before interest, taxes, depreciation, and amortization covenant, which arises when liquidity is less than $150.0 million. In addition, the ABL Revolver and the Term Loan each contain customary covenants restricting our activities, including limitations on the ability to sell assets, engage in acquisitions, enter into transactions involving related parties, incur additional debt, grant liens on assets, pay dividends or repurchase stock, and make certain other changes. There are specific exceptions to these covenants including, in some cases, upon satisfying specified payment conditions. We are restricted from paying dividends or repurchasing stock until the third quarter of fiscal 2021 at the earliest, after which certain limitations apply. Both the ABL Revolver and the Term Loan contain customary events of default with cross-default provisions. Upon an event of default that is not cured or waived within the cure periods, in addition to other remedies that may be available to the lenders, the obligations may be accelerated, outstanding letters of credit may be required to be cash collateralized and remedies may be exercised against the collateral. As of January 30, 2021, we were in compliance with all financial covenants. |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES We lease our stores, fulfillment center and other facilities under operating lease arrangements with unrelated parties and related parties owned by the Schottenstein Affiliates. We pay variable amounts for certain lease and non-lease components as well as for contingent rent based on sales for certain leases where the sales are in excess of specified levels and for leases that have certain contingent triggering events that are in effect. We also lease equipment under operating leases. We receive operating sublease income from unrelated third parties for leasing portions or all of certain properties. Operating sublease income and operating expenses for these properties are included in operating expenses in our consolidated statements of operations. Lease income and lease expense consisted of the following: Fiscal (in thousands) 2020 2019 2018 Operating sublease income $ 12,219 $ 9,601 $ 4,659 Operating lease expense: Lease expense to unrelated parties $ 199,729 $ 213,156 $ 204,873 Lease expense to related parties 9,239 9,486 9,220 Variable lease expense to unrelated parties 63,881 53,239 23,822 Variable lease expense to related parties 1,341 1,283 — $ 274,190 $ 277,164 $ 237,915 Fiscal 2020 Other operating lease information: Weighted-average remaining lease term 5.3 years Weighted-average discount rate 4.0 % As of January 30, 2021, our future fixed minimum lease payments are as follows: (in thousands) Unrelated Parties Related Parties Total Fiscal 2021 $ 267,251 $ 9,085 $ 276,336 Fiscal 2022 202,431 7,118 209,549 Fiscal 2023 159,705 4,573 164,278 Fiscal 2024 117,648 4,139 121,787 Fiscal 2025 83,705 3,919 87,624 Future fiscal years thereafter 156,796 7,434 164,230 987,536 36,268 1,023,804 Less discounting impact on operating leases (97,539) (3,744) (101,283) Total operating lease liabilities 889,997 32,524 922,521 Less current operating lease liabilities (236,813) (7,973) (244,786) Non-current operating lease liabilities $ 653,184 $ 24,551 $ 677,735 As of January 30, 2021, we have entered into lease commitments for nine new store locations and one store relocation where the leases have not yet commenced, and therefore the lease liabilities have not yet been recorded. We expect the lease commencement to begin over the next three fiscal quarters for these locations and we will record additional operating lease liabilities of approximately $14.0 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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. Insurance Recoveries- During fiscal 2020, we experienced lost sales and the related margins and recognized incremental losses due to an incident at a third-party vendor that resulted in a shutdown of services to us that impacted our ability to fulfill orders from customers for a limited period of time. This incident is covered under an insurance policy that provides for reimbursement of lost profits and recognized losses as a result of the outage. During fiscal 2020, we recognized insurance recovery gains of $3.0 million, recorded to cost of sales on the consolidated statements of operations, for recognized losses that we believe are probable of being reimbursed through the insurance policy. Reimbursement for lost profits and any additional recoveries in excess of recognized losses are treated as gain contingencies and will be recognized when realized or realizable. We will continue to work with the insurance carrier to reach an agreement on the total amount to be recovered. Guarantee- We provide guarantees for lease obligations that are scheduled to expire in fiscal 2023 for locations that have been leased to third parties. If a third party does not pay the rent or vacates the premise, we may be required to make full rent payments to the landlord. As of January 30, 2021, the total future minimum lease payment requirements for these guarantees were approximately $15.9 million. Contractual Obligations- As of January 30, 2021, we have entered into various noncancelable purchase and service agreements, including construction commitments for capital items to be purchased for projects that were under construction or for which a lease has been signed. In addition, we have license agreements that allow us to use third-party owned brands, including a license agreement with ABG-Camuto (a related party), that have guaranteed minimum royalty payments. As of January 30, 2021, our noncancelable purchase obligations and future guaranteed minimum royalty payments are as follows: Guaranteed Minimum Royalties (in thousands) Noncancelable Purchase Obligations Unrelated Parties Related Party Total Fiscal 2021 $ 5,449 $ 19,253 $ 18,350 $ 37,603 Fiscal 2022 1,922 16,309 18,350 34,659 Fiscal 2023 1,521 15,309 18,350 33,659 Fiscal 2024 — 15,309 19,650 34,959 Fiscal 2025 — 6,984 19,650 26,634 Future fiscal years thereafter — 20,952 58,950 79,902 $ 8,892 $ 94,116 $ 153,300 $ 247,416 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income (loss) before income taxes and loss from equity investment in TSL consisted of the following: Fiscal (in thousands) 2020 2019 2018 Domestic income (loss) $ (559,120) $ 111,021 $ 123,172 Foreign income (loss), including loss from equity investment in TSL (49,527) 8,753 (113,805) Income (loss) before income taxes and loss from equity investment in TSL $ (608,647) $ 119,774 $ 9,367 Income tax provision (benefit) consisted of the following: Fiscal (in thousands) 2020 2019 2018 Current: Federal $ (151,931) $ 21,196 $ 29,073 Foreign 1,451 205 188 State and local (3,840) 6,596 12,268 (154,320) 27,997 41,529 Deferred: Federal 23,601 (620) (2,234) Foreign 1,504 (1,241) (9,273) State and local 9,287 (859) (189) 34,392 (2,720) (11,696) Income tax provision (benefit) $ (119,928) $ 25,277 $ 29,833 The following presents a reconciliation of the income tax provision (benefit) based on the U.S. federal statutory tax rate to the total tax provision (benefit): Fiscal (in thousands) 2020 2019 2018 Income tax provision (benefit) at federal statutory rate $ (127,816) $ 25,152 $ 1,966 State and local taxes, net of federal benefit (provision) (23,678) 4,809 5,688 Foreign tax rate differential (3,000) 546 (3,270) Foreign impairment charges — — 11,196 Change in valuation allowance 87,579 (3,949) 8,157 Non-deductible compensation 3,617 344 2,219 CARES Act rate differential (57,894) — — Change in uncertain tax positions (290) (527) 2,611 Net impact of implementing tax reform — — 2,144 Other 1,554 (1,098) (878) Income tax provision (benefit) $ (119,928) $ 25,277 $ 29,833 See Note 1, Significant Accounting Policies - Impacts of COVID-19 , for discussion of CARES Act rate differential and the change in valuation allowance. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: (in thousands) January 30, 2021 February 1, 2020 Deferred tax assets: Operating lease liabilities $ 232,910 $ 259,846 Net operating losses 34,917 9,251 Stock-based compensation 11,782 10,987 Inventories 9,103 11,669 Accrued expenses 5,567 4,193 Intangible assets 5,031 442 State bonus depreciation 4,654 3,342 Loyalty programs deferred revenue 2,406 3,405 Gift cards 2,153 3,801 Other 3,824 4,459 312,347 311,395 Less: valuation allowance (101,185) (9,472) Total deferred tax assets, net of valuation allowance 211,162 301,923 Deferred tax liabilities: Operating lease assets (187,398) (242,733) Property and equipment (23,306) (25,359) Other (5,065) (3,977) (215,769) (272,069) Net deferred tax assets (liabilities) $ (4,607) $ 29,854 Deferred income taxes are reported within the consolidated balance sheets as follows: (in thousands) January 30, 2021 February 1, 2020 Deferred tax assets $ — $ 31,863 Deferred tax liabilities included in other non-current liabilities (4,607) (2,009) Net deferred tax assets (liabilities) as shown above $ (4,607) $ 29,854 As of January 30, 2021, the valuation allowance is primarily related to federal, state and foreign deferred tax assets. Additionally, there are state and foreign net operating losses, which, if not utilized, a portion of the carryovers will begin to expire in fiscal 2025 and 2034, respectively . The following presents the changes in valuation allowance: Fiscal (in thousands) 2020 2019 2018 Valuation allowance - beginning of period $ 9,472 $ 14,097 $ 2,736 Additions charged to income tax provision (benefit) 87,579 — 8,157 Additions related to acquisitions — — 6,124 Allowances taken or written off — (3,949) (2,920) Other adjustments 4,134 (676) — Valuation allowance - end of period $ 101,185 $ 9,472 $ 14,097 We intend to continue to invest all of the earnings of foreign subsidiaries, as well as our capital in these subsidiaries, indefinitely outside of the U.S. and we do not expect to incur any significant, additional taxes related to such amounts. Changes in gross unrecognized tax benefits were as follows: Fiscal (in thousands) 2020 2019 2018 Unrecognized tax benefits - beginning of period $ 10,764 $ 11,608 $ 7,925 Additions for tax positions taken in the current year 603 1,692 4,105 Reductions for tax positions taken in prior years: Changes in estimates — (340) — Settlements (1,280) (2,196) (422) Unrecognized tax benefits - end of period $ 10,087 $ 10,764 $ 11,608 Of the total unrecognized tax benefits at January 30, 2021, February 1, 2020 and February 2, 2019, approximate ly $8.7 million, $9.2 million and $10.2 million, respectively, represent the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in future periods. While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, any changes are not expected to have a material impact on our financial position, results of operations or cash flows. We recognize interest and penalties related to unrecognized tax benefits as a component of the income tax provision (benefit). As of January 30, 2021, February 1, 2020 and February 2, 2019, interest and penalties were $2.6 million, $2.3 million and $1.8 million, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The following provides certain financial data by segment reconciled to the consolidated financial statements: (in thousands) U.S. Retail Canada Retail Brand Portfolio Other Corporate / Eliminations Total Fiscal 2020 Net sales: External customer sales $ 1,800,323 $ 182,659 $ 188,828 $ 62,909 $ — $ 2,234,719 Intersegment sales — — 59,818 — (59,818) — Total net sales $ 1,800,323 $ 182,659 $ 248,646 $ 62,909 $ (59,818) $ 2,234,719 Gross profit $ 242,786 $ 28,651 $ 36,393 $ 962 $ 2,449 $ 311,241 Income from equity investment in ABG-Camuto $ — $ — $ 9,329 $ — $ — $ 9,329 Cash paid for property and equipment $ 9,997 $ 3,420 $ 1,194 $ 67 $ 16,436 $ 31,114 Depreciation and amortization $ 47,083 $ 7,817 $ 5,433 $ 42 $ 27,651 $ 88,026 Fiscal 2019 Net sales: External customer sales $ 2,745,395 $ 249,017 $ 376,185 $ 122,090 $ — $ 3,492,687 Intersegment sales — — 72,100 — (72,100) — Total net sales $ 2,745,395 $ 249,017 $ 448,285 $ 122,090 $ (72,100) $ 3,492,687 Gross profit (loss) $ 786,976 $ 79,850 $ 114,170 $ 26,065 $ (7,391) $ 999,670 Income from equity investment in ABG-Camuto $ — $ — $ 10,149 $ — $ — $ 10,149 Cash paid for property and equipment $ 36,302 $ 7,600 $ 3,574 $ 178 $ 30,166 $ 77,820 Depreciation and amortization $ 47,282 $ 9,583 $ 5,644 $ 372 $ 23,768 $ 86,649 Fiscal 2018 Net sales: External customer sales $ 2,738,989 $ 220,325 $ 89,636 $ 128,968 $ — $ 3,177,918 Intersegment sales — — 10,176 — (10,176) — Total net sales $ 2,738,989 $ 220,325 $ 99,812 $ 128,968 $ (10,176) $ 3,177,918 Gross profit (loss) $ 840,174 $ 55,937 $ 18,920 $ 25,252 $ (1,594) $ 938,689 Income from equity investment in ABG-Camuto $ — $ — $ 1,298 $ — $ — $ 1,298 Cash paid for property and equipment $ 32,544 $ 6,396 $ 447 $ 147 $ 25,821 $ 65,355 Depreciation and amortization $ 49,552 $ 6,951 $ 1,971 $ 604 $ 19,970 $ 79,048 The U.S. Retail and Brand Portfolio segments and Other net sales recognized are primarily based on sales to customers in the U.S., and Canada Retail segment net sales recognized are based on sales to customers in Canada. Net sales realized from geographic markets outside of the U.S. and Canada have collectively been immaterial. As of January 30, 2021 and February 1, 2020, long-lived assets, consisting of property and equipment and operating lease assets, included $0.9 billion and $1.2 billion, respectively, in the U.S. and $78.9 million and $114.5 million, respectively, in Canada, with only an immaterial amount in other countries. No single customer accounts for 10% or more of consolidated total net sales. However, the Brand Portfolio segment has four customers that make up approximately 50% of its total net sales, excluding intersegment net sales, and the loss of any or all of these customers could have a material adverse effect on the Brand Portfolio segment. |
Significant Accounting Polici_2
Significant Accounting Policies Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. This reporting schedule is followed by many national retail companies and typically results in a 52-week fiscal year, but occasionally will contain an additional week resulting in a 53-week fiscal year. The periods presented in these consolidated financial statements each consisted of 52 weeks. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities- During fiscal 2019, we formed a joint venture with an entity affiliated with performing artist and celebrity Jennifer Lopez. This partnership was formed in order to design, source and sell the JLO JENNIFER LOPEZ collection, a line of footwear and handbags. Our Camuto Group business is responsible for design and sourcing, and DSW is the exclusive retailer of new products. Jennifer Lopez and her team lead the creative directive for marketing and product design, with our technical expertise and guidance. Jennifer Lopez earns fixed licensing fees and also has the opportunity to earn the Company's Class A common shares beginning in fiscal 2021 based on the expansion of our VIP rewards programs from her fan base. Based on certain terms within the joint venture operating agreement, we have determined that we have overall control of the joint venture. In addition, we provide a revolving line of credit to the joint venture and a guarantee for funding in excess of the joint venture's equity. As a result, we are considered the primary beneficiary of the joint venture and it is consolidated within our financial statements. Assets and liabilities of the joint venture are immaterial. We recognize all of the losses of the joint venture up to the amounts guaranteed and share any profits between the partners under the terms of the joint venture operating agreement. |
Impact of COVID-19, Policy [Policy Text Block] | Impacts of COVID-19- In March 2020, the World Health Organization declared the coronavirus disease ("COVID-19") outbreak a pandemic. On March 18, 2020, to help control the spread of the virus and protect the health and safety of our customers, associates, and the communities we serve, we temporarily closed all of our stores in the U.S. and Canada. In addition, we took several actions in late March 2020 to reduce costs and operations to levels that were more commensurate with then-current sales, including furloughs and pay reductions. As this continues to be an unprecedented period of uncertainty, we have made and may continue to make adjustments to our operational plans, inventory controls, and liquidity management, as well as reductions to our expense and capital expenditure plans. During the second quarter and into the third quarter of fiscal 2020, we re-opened all of our stores, discontinued the furlough program, and restored pay for our associates that had taken pay reductions. Beginning in July 2020, we initiated an internal reorganization and reduction of our workforce with additional actions taken throughout fiscal 2020, resulting in the elimination of approximately 1,000 associate positions, including over 200 vacant positions that will not be filled. The charges recorded as a result of this reorganization are included in our integration and restructuring costs discussed below. Following the re-opening of stores, we experienced and have continued to experience significantly reduced customer traffic and net sales, which included subsequent store closures and reduced hours in certain areas, primarily in Canada, where government-imposed restrictions were mandated. Our retail customers in the Brand Portfolio segment have had and are having similar experiences. Given the continuation of overall depressed consumer sentiment, customer behavior has been and may continue to be slow to return to pre-COVID-19 patterns and levels, if at all. We have continued to serve our customers through our e-commerce businesses during the period that our stores were closed and beyond, but store closures primarily during the first half of fiscal 2020 and continuing reduced customer traffic resulted in a sharp decline in our net sales and cash flows. As a result of the material reduction in net sales and cash flows during fiscal 2020, we performed impairment analyses for our U.S. Retail and Canada Retail segments at the store-level, which represents the lowest level for which identifiable cash flows are independent of the cash flows of other assets. The carrying amount of the store asset group, primarily made up of operating lease assets, leasehold improvements and fixtures, is considered impaired when the carrying value of the asset group exceeds the expected future cash flows from the asset group. The impairment loss recognized is the excess of the carrying value of the asset or asset group over its fair value (categorized as Level 3 under the fair value hierarchy). Fair value at the store level is typically based on projected discounted cash flows over the remaining lease term. In addition, we evaluated other long-lived assets based on our intent to use such assets going forward. During fiscal 2020, we recorded impairment charges of $127.1 million ($104.2 million and $22.9 million for the U.S. Retail and Canada Retail segments, respectively), including impairment charges during the fourth quarter of fiscal 2020 of $4.2 million ($1.0 million and $3.2 million for the U.S. Retail and Canada Retail segments, respectively). Also during fiscal 2020, we recorded an impairment charge of $6.5 million for the Brand Portfolio segment customer relationship intangible asset resulting in a full impairment due to the lack of projected cash flows over the remaining useful life (categorized as Level 3 under the fair value hierarchy). As a result of the material reduction in net sales and cash flows due to the temporary closure of all of our stores, the decrease in net sales from our retailer customers and the decrease in the Company's market capitalization due to the impact of the COVID-19 outbreak on macroeconomic conditions, we performed our impairment analysis for goodwill and other indefinite-lived intangible assets during the first quarter of fiscal 2020. We calculated the fair value of the reporting units with goodwill primarily based on a discounted cash flow analysis (categorized as Level 3 under the fair value hierarchy). Our analysis concluded that the fair value of the U.S. Retail segment, which is also the reporting unit, and other indefinite-lived intangible assets were in excess of the carrying values, but that the fair value of the First Cost reporting unit within the Brand Portfolio segment did not exceed its carrying value. Accordingly, during fiscal 2020, we recorded an impairment charge of $20.0 million for the First Cost reporting unit in the Brand Portfolio segment, resulting in a full impairment. We updated our impairment analysis for the goodwill within the U.S. Retail segment and other indefinite-lived intangible assets during the fourth quarter of fiscal 2020 as part of our annual evaluation, which resulted in the fair values being in excess of the carrying values. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which, among other things, provided employer payroll tax credits for wages paid to associates who were unable to work during the COVID-19 outbreak and options to defer payroll tax payments. Based on our evaluation of the CARES Act, we qualify for certain employer payroll tax credits that were treated as government subsidies to offset related operating expenses, as well as the deferral of payroll and other tax payments in the future. Similar credits and deferrals were also available in Canada. During fiscal 2020, the qualified government credits reduced our operating expenses by $11.4 million on our consolidated statements of operations. A s of January 30, 2021 , we had $10.0 million of deferred qualified payroll and other tax obligations, half of which is included in accrued expenses on the consolidated balance sheets that we expect to pay at the end of fiscal 2021, with the remaining incl uded in other non-current liabilities on the consolidated balance sheets that we expect to pay at the end of fiscal 2022. We recorded our income tax expense, income tax receivable, and deferred tax assets and related liabilities based on management’s best estimates. Additionally, we assessed the likelihood of realizing the benefits of our deferred tax assets. Our ability to recover these deferred tax assets depends on several factors, including the amount of net operating losses we can carry back and our ability to project future taxable income. One of the provisions of the CARES Act allows net operating losses generated within tax years 2018 through 2020 to be carried back up to five years, including years in which the U.S. federal statutory tax rate was 35%, as opposed to the current rate of 21%. In evaluating future taxable income, significant weight is given to positive and negative evidence that is objectively verifiable. As a result of the losses incurred in fiscal 2020 due to COVID-19, we are in a three-year cumulative loss position as of January 30, 2021, which is significant objective negative evidence in considering whether deferred tax assets are realizable. Such objective evidence limits the ability to consider other subjective evidence, such as the projection of future taxable income. A valuation allowance has been recognized as a reserve on the total deferred tax asset balance due to the uncertainty of realization of our loss carry forwards and other deferred tax assets. Our effective tax rate changed from 21.1% for fiscal 2019 to 19.7% for fiscal 2020. The decrease in the effective tax rate was primarily driven by the recording of an additional valuation allowance of $87.6 million partially offset by the ability to carry back current year losses to a tax year where the U.S. federal statutory tax rate was 35%. In addition, during fiscal 2020, we incurred $10.6 million of incremental costs directly related to COVID-19, including hazard pay for store associates, termination fees, pre-open cleaning services, signs used to encourage customers in social distancing, plexiglass shields used at store registers, and supplies of thermometers, masks, gloves, cleaning agents, and other items. The COVID-19 pandemic remains challenging and unpredictable. The ongoing and prolonged nature of the outbreak has continued to adversely impact our business and may lead to further adjustments to store operations, as well as continue to drive changes in customer behaviors and preferences, including reductions in consumer spending, which may necessitate further shifts in our business model. As such, the ultimate impacts of the COVID-19 outbreak to our businesses remain highly uncertain and will depend on future developments, including the widespread availability, use and effectiveness of vaccines, which are highly uncertain and cannot be predicted. We may have additional write-downs or adjustments to inventories, receivables, long-lived assets, intangibles, goodwill, and the valuation allowance on deferred tax assets. |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | Integration and Restructuring Costs- During fiscal 2020, we incurred restructuring costs, which consisted primarily of severance of $15.2 million ( $5.5 million , $0.8 million and $8.9 million for the U.S. Retail, Canada Retail and Brand Portfolio segments, respectively), including severance charges during the fourth quarter of fiscal 2020 of $5.2 million (primarily related to the Brand Portfolio segment), and professional fees of $2.4 million. During fiscal 2019, we incurred integration and restructuring costs related to our prior year acquisition activity, which consisted primarily of severance of $3.9 million, fees for terminating joint ventures of $7.2 million, and professional fees and other integration costs of $6.6 million. During fiscal 2018, we incurred restructuring costs of $5.6 million in severance, primarily related to changes to our store staffing model. As of January 30, 2021 and February 1, 2020, we had $6.5 million and $1.7 million, respectively, of severance liability included in accrued expenses on the consolidated balance sheets. |
Gain on Settlement, Policy [Policy Text Block] | Gain on Settlement- During fiscal 2020, we collected $9.0 million , net of legal costs incurred, and recorded a gain to operating expenses in the consolidated statements of operations that was due to a settlement with a vendor related to costs incurred on an internal-use software project that was capitalized and then impaired in a previous fiscal year. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation- The consolidated financial statements include the accounts of Designer Brands Inc. and its subsidiaries, including variable interest entities. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in United States dollars ("USD"), unless otherwise noted. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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 net sales and expenses during the reporting period. Certain estimates and assumptions use forecasted financial information using information reasonably available to us, along with the estimated, but uncertain, future impacts of the COVID-19 outbreak. Significant estimates and assumptions are required as a part of accounting for sales returns allowances, customer allowances and discounts, gift card breakage income, deferred revenue associated with loyalty programs, valuation of inventories, depreciation and amortization, impairments of long-lived assets, intangibles and goodwill, lease accounting, legal and tax reserves, income taxes, and self-insurance reserves. Although we believe these estimates and assumptions are reasonable, they are based on management's knowledge of current events and actions that we may undertake in the future. Changes in facts and circumstances may result in revised estimates and assumptions, and actual results could differ from these estimates. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition- Sales from the U.S. Retail and Canada Retail segments are recognized upon customer receipt of merchandise, net of estimated returns and exclude sales tax. Customers can purchase products from one of our stores, online or from our mobile application. For products shipped directly to our customers, we recognize the sale upon the estimated customer receipt date based on historical delivery transit times. Revenue from shipping and handling is recorded in net sales while the related costs are included in cost of sales in the consolidated statements of operations. For products shipped directly to our customers from our suppliers (referred to as "drop ship"), we record gross sales upon customer receipt based on the price paid by the customers as we have determined that we are the principal party responsible for the sale transaction. Sales from the Brand Portfolio segment are recognized upon transfer of control. Generally, our wholesale customers arrange their own transportation of merchandise and control is transferred at the time of shipment. Sales are recorded at the transaction price, excluding sales tax, net of estimated reserves for customer returns, allowances and discounts. Direct-to-consumer sales are also recognized upon shipment of merchandise, net of estimated returns and exclude sales tax. First Cost commission income is recognized at the point in time when the customer's freight forwarder takes control of the related merchandise. Gift Cards- Amounts received from the sale of gift cards are recorded as a liability and are recognized as sales when the cards are redeemed for merchandise. Based on historical information, the likelihood of a gift card remaining unredeemed (referred to as "breakage") can be reasonably estimated at the time of gift card issuance. Breakage income is recognized over the estimated average redemption period of redeemed gift cards. Loyalty Programs- We offer loyalty programs to our customers in the U.S. and Canada. Members under the programs earn points based on their level of spending, as well as for various other activities. Upon reaching a specified point threshold, members receive reward certificates that may be redeemed for purchases made within the stated expiration date. We record a reduction of net sales when points are awarded based on an allocation of the initial customer purchase and the stand-alone value of the points earned. We maintain a deferred liability for the outstanding points and certificates based on historical conversion and redemption rates. The deferred liability is reduced and sales are recognized when certificates are redeemed or when points and certificates expire. Customer Allowances- We reduce sales by the amount of actual and remaining expected customer allowances, discounts and returns, and cost of sales by the amount of merchandise we expect to recover. Customer allowances are provided to our wholesale customers for margin assistance, co-op advertising support, and various other deductions. We estimate the reserves needed for margin assistance by reviewing inventory levels held by retailers, expected markdowns, gross margins realized, and other performance indicators. Product returns and other customer deductions are estimated based on anticipated future returns using historical experience and trends. Co-op advertising allowances are estimated based on arrangements with customers. Customer allowance reserves are included in accrued expenses on the consolidated balance sheets. |
Cost of Goods and Service [Policy Text Block] | Cost of Sales- Cost of sales from the U.S. Retail and Canada Retail segments is recognized net of estimated returns. In addition to the cost of merchandise sold, which includes freight and the impact of markdowns, shrink and other inventory valuation adjustments, we include in cost of sales expenses associated with distribution and fulfillment and store occupancy. Distribution and fulfillment expenses comprise of labor costs, rent, depreciation, insurance, utilities, maintenance and other operating costs associated with the operations of the distribution and fulfillment centers. Store occupancy expenses include rent, utilities, repairs, maintenance, insurance, janitorial costs, and occupancy-related taxes, but exclude depreciation. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Operating Expenses- Operating expenses include expenses related to store management and store payroll costs, advertising, store depreciation, new store costs, design, sourcing and distribution costs associated with the Brand Portfolio segment, and corporate expenses. Corporate expenses include expenses related to buying, information technology, depreciation and amortization expense for corporate assets, marketing, legal, finance, outside professional services, customer service center expenses, and payroll-related costs for associates. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation- We recognize compensation expense for awards of stock options, restricted stock units ("RSUs"), and director stock units, based on the fair value on the grant date and on a straight-line basis over the requisite service period for the awards that are expected to vest, with forfeitures estimated based on our historical experience and future expectations. Stock-based compensation is included in operating expenses in the consolidated statements of operations. |
Start-up Activities, Cost Policy [Policy Text Block] | New Store Opening Costs- Costs associated with the opening of new stores are expensed as incurred. |
Advertising Cost [Policy Text Block] | Marketing Expense- The cost of advertising is generally expensed when the advertising first takes place or when mailed. |
Other Nonoperating Income and Expense [Text Block] | Non-Operating Income (Expenses), Net- Non-operating income (expenses), net, includes gains and losses from foreign currency revaluation, realized gains and losses related to our investment portfolio, and fair value adjustments of pre-existing assets as a result of the acquisition of the remaining interest in TSL. |
Income Tax, Policy [Policy Text Block] | Income Taxes- We account for income taxes under the asset and liability method. We determine the aggregate amount of income tax expense to accrue and the amount that will be currently payable based upon tax statutes of each jurisdiction in which we do business. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and respective tax bases and operating loss and tax credit carryforwards, as measured using enacted tax rates expected to be in effect in the periods when temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. We review and update our tax positions as necessary to add any new uncertain tax positions taken, or to remove previously identified uncertain positions that have been adequately resolved. Additionally, uncertain positions may be remeasured as warranted by changes in facts or law. Accounting for uncertain tax positions requires estimating the amount, timing and likelihood of ultimate settlement. Although we believe that these estimates are reasonable, 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 represented cash that is restricted as to withdrawal or usage and consisted of a mandatory cash deposit for certain outstanding letters of credit. |
Investment, Policy [Policy Text Block] | Investments - |
Accounts Receivable [Policy Text Block] | Receivables, net - |
Inventory, Policy [Policy Text Block] | Inventories- All of our inventory is made up of finished goods. The U.S. Retail segment inventory is accounted for using the retail inventory method and is stated at the lower of cost or market. Under the retail inventory method, the valuation of inventories at cost and the resulting gross profits are determined by applying a calculated cost-to-retail ratio to the retail value of inventories. The cost basis of inventories reflected on the balance sheet is decreased by charges to cost of sales at the time the retail value of the inventory is lowered by markdowns. As a result, earnings are negatively impacted as the merchandise is marked down prior to sale. The Canada Retail segment and the Brand Portfolio segment inventory is accounted for using the moving average cost method and is stated at the lower of cost or net realizable value. We monitor aged inventory for obsolete and slow-moving inventory that may need to be liquidated in the future at amounts below cost. Reductions to inventory values establish a new cost basis. Favorable changes in facts or circumstances do not result in an increase in the newly established cost basis. We perform physical inventory counts or cycle counts on all inventory on hand throughout the year and adjust the recorded balance to reflect the results. We record estimated shrink between physical inventory counts, based on historical experience and recent results, less amounts realized. Inherent in the calculation of inventories are certain significant judgments and estimates, including setting the original merchandise retail value, markdowns, shrink, and liquidation values. The ultimate amount realized from the sale of inventory and write offs from counts could differ from management estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risks- We are subject to risk due to concentration of merchandise coming from China. All of the products we manufacture in the Brand Portfolio segment come from third-party facilities outside of the U.S., with 73% of units sourced from China, whereas our U.S. Retail and Canada Retail merchandise is purchased from both domestic and foreign vendors. Many of our domestic vendors import a large portion of their merchandise from abroad, with the majority manufactured in China. We are also subject to concentration of vendor risk within the U.S. Retail and Canada Retail segments. During fiscal 2020, three key third-party vendors together supplied approximately 22% of our retail merchandise. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value- Fair value is defined as the price that would be received in the sale of 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. We measure available-for-sale investments at fair value on a recurring basis. These investments are measured using a market-based approach using inputs such as prices of similar assets in active markets (categorized as Level 2). The carrying value of cash and cash equivalents, receivables and accounts payables approximated their fair values due to their short-term nature. The fair value of borrowings under our senior secured asset-based revolving credit facility ("ABL Revolver") and our previous senior unsecured revolving credit agreement ("Credit Facility") approximated the carrying value. As of January 30, 2021, the fair value of borrowings under our senior secured term loan ("Term Loan") was $254.1 million compared to the carrying value of $243.8 million . The fair value of debt borrowings was estimated based on current interest rates offered for similar instruments (categorized as Level 2). |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment, net- Property and equipment, net, are stated at cost less accumulated depreciation determined by the straight-line method over the expected useful life of assets. The net book value of property or equipment sold or retired is removed from the asset and related accumulated depreciation accounts with any resulting net gain or loss included in results of operations. The estimated useful lives by class of asset are as follows: Useful Lives Buildings 39 years Building and leasehold improvements 3 to 20 years or the lease term if shorter Furniture, fixtures and equipment 3 to 10 years Software 5 to 10 years |
Internal Use Software, Policy [Policy Text Block] | Internal Use Software Costs- Costs related to software developed or obtained for internal use are expensed as incurred until the application development stage has been reached. Once the application development stage has been reached, certain qualifying costs are capitalized until the software is ready for its intended use. If a cloud computing arrangement includes a software |
Lessee, Leases | Leases- A lease liability for new leases is recorded based on the present value of future fixed lease commitments with a corresponding lease asset. For leases classified as operating leases, we recognize a single lease cost on a straight-line basis based on the combined amortization of the lease liability and the lease asset. Other leases will be accounted for as finance arrangements. For real estate leases, we are generally required to pay base rent, real estate taxes, and insurance, which are considered lease components, and maintenance, which is a non-lease component. We have elected to not separate non-lease payment components from the associated lease component for all new real estate leases. We determine the discount rate for each lease by estimating the rate that we would be required to pay on a secured borrowing for an amount equal to the lease payments over the lease term. The majority of our real estate leases provide for renewal options, which are typically not included in the lease term used for measuring the lease assets and lease liabilities as it is not reasonably certain we will exercise renewal options. We monitor for events or changes in circumstances that may require a reassessment of our leases and determine if a remeasurement is required. In response to the COVID-19 outbreak, we negotiated deferrals of lease payments to be repaid over various periods, with no substantive changes to the total consideration without a change in the terms. We have elected to treat these changes as modifications to our leases, resulting in remeasuring the related lease assets and liabilities and including non-lease components per our policy. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets- We periodically evaluate the carrying amount of our long-lived assets, primarily operating lease assets, property and equipment and definite-lived intangible assets, when events and circumstances warrant such a review to ascertain if any assets have been impaired. The reviews are conducted at the lowest identifiable level. The carrying amount of a long-lived asset or asset group is considered impaired when the carrying value of the asset or asset group exceeds the expected future cash flows from the asset or asset group. The impairment loss recognized is the excess of the carrying value of the asset or asset group over its fair value (categorized as Level 3 under the fair value hierarchy). Fair value at the store level is typically based on projected discounted cash flows over the remaining lease term. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Indefinite Lived Intangible Assets- We evaluate goodwill and other indefinite lived intangible assets for impairment annually during our fourth quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. When evaluating for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that there is an impairment. If we do not perform a qualitative assessment, or if we determine that it is more likely than not that the carrying value exceeds its fair value, we will calculate the estimated fair value. Fair value is typically calculated using a discounted cash flow analysis. Where deemed appropriate, we may also utilize a market approach for estimating fair value. Impairment charges are calculated as the amount by which the carrying amount exceeds its fair value, but not to exceed the carrying value for goodwill. |
Liability Reserve Estimate, Policy [Policy Text Block] | Self-Insurance Reserves- We record estimates for certain health and welfare, workers' compensation and casualty insurance costs that are self-insured programs. Self-insurance reserves include actuarial estimates of both claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. The liability represents an estimate of the ultimate cost of claims incurred as of the balance sheet date. Estimates for self-insurance reserves are calculated utilizing claims development estimates based on historical experience and other factors. We have purchased stop loss insurance to limit our exposure on a per person basis for health and welfare and on a per claim basis for workers' compensation and general liability, as well as on an aggregate annual basis. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions- Prior to our acquisition of the remaining interest in TSL, our equity investment in TSL and receivable from TSL, along with certain investments, were denominated in Canadian dollars ("CAD") and translated into USD at exchange rates in effect at the balance sheet date. Each quarter, the income or loss from TSL was recorded in USD at the average exchange rate for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss. During fiscal 2018, as a result of the acquisition of TSL, we reclassified a net loss of $12.2 million of foreign currency translation related to the previously held balances from accumulated other comprehensive loss to non-operating expenses, net. During fiscal 2018, TSL became a wholly owned subsidiary with CAD as its functional currency. Assets and liabilities of the Canadian business are translated into USD at exchange rates in effect at the balance sheet date or historical rates as appropriate. Each quarter, amounts included in our consolidated statements of operations from the Canadian business are translated at the average exchange rate for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss. Transaction gains and losses are included in the consolidated statements of operations. |
Compensation and Employee Benefit Plans [Text Block] | Deferred Compensation Plans - |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of ASU 2016-13 , Measurement of Credit Losses on Financial Instruments - During the first quarter of fiscal 2020, we adopted Accounting Standards Update ("ASU") 2016-13, which replaces the previous incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. |
Earnings Per Share, Policy [Policy Text Block] | Basic earnings (loss) per share is based on net income (loss) 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 and RSUs calculated using the treasury stock method. |
Stockholders' Equity, Policy [Policy Text Block] | Shares- Our Class A common shares are listed for trading under the ticker symbol "DBI" on the New York Stock Exchange. There is currently no public market for the Company's Class B common shares, but the Class B common shares can be exchanged for the Company's Class A common shares at the election of the holder on a share for share basis. Holders of Class A common shares are entitled to one vote per share and holders of Class B common shares are entitled to eight votes per share on matters submitted to shareholders for approval. |
Repurchase and Resale Agreements Policy [Policy Text Block] | Share Repurchases - On August 17, 2017, the Board of Directors authorized the repurchase of an additional $500 million of Class A common shares under our share repurchase program, which was added to the $33.5 million remaining from the previous authorization, with $334.9 million |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (in thousands) January 30, 2021 February 1, 2020 February 2, 2019 Cash and cash equivalents $ 59,581 $ 86,564 $ 99,369 Restricted cash, included in prepaid expenses and other current assets — — 1,199 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 59,581 $ 86,564 $ 100,568 |
Estimated Useful Lives PPE | The estimated useful lives by class of asset are as follows: Useful Lives Buildings 39 years Building and leasehold improvements 3 to 20 years or the lease term if shorter Furniture, fixtures and equipment 3 to 10 years Software 5 to 10 years |
Acquisitions and Equity Metho_2
Acquisitions and Equity Method Investments (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Activity related to our equity investment in ABG-Camuto was as follows: Fiscal (in thousands) 2020 2019 2018 Balance at beginning of period $ 57,760 $ 58,125 $ — Initial investment in ABG-Camuto — — 56,827 Share of net earnings 9,329 10,149 1,298 Distributions received (8,491) (10,514) — Balance at end of period $ 58,598 $ 57,760 $ 58,125 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides the supplemental unaudited pro forma net sales and net income of the combined entity had the acquisition dates of TSL and Camuto Group and the investment in ABG-Camuto been the first day of our fiscal 2017: (in thousands) Fiscal 2018 Net sales $ 3,562,498 Net income $ 74,367 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Revenue From Contract With Customer [Line Items] | |
Contract with Customer, Asset and Liability | The following table presents the changes and total balances for gift cards and our loyalty programs: Fiscal (in thousands) 2020 2019 2018 Gift cards: Beginning of period $ 35,461 $ 34,998 $ 32,792 Gift cards redeemed and breakage recognized to net sales (59,173) (91,000) (90,569) Gift cards issued 58,154 91,463 92,775 End of period $ 34,442 $ 35,461 $ 34,998 Loyalty programs: Beginning of period $ 16,138 $ 16,151 $ 21,282 Loyalty certificates redeemed and expired and other adjustments recognized to net sales (25,049) (37,311) (41,210) Deferred revenue for loyalty points issued 20,290 37,298 36,079 End of period $ 11,379 $ 16,138 $ 16,151 Fiscal (in thousands) 2020 2019 2018 Sales returns reserve: Beginning of period $ 21,408 $ 17,743 $ 14,130 Net sales reduced for estimated returns 279,923 448,886 402,274 Actual returns during the period (283,998) (445,221) (398,661) End of period $ 17,333 $ 21,408 $ 17,743 Customer allowances and discounts reserve: Beginning of period $ 11,528 $ 13,094 $ — Assumed liability in acquisitions and measurement period adjustments — (3,267) 15,434 Net sales reduced for estimated allowances and discounts 14,363 43,733 10,669 Actual allowances and discounts during the period (21,312) (42,032) (13,009) End of period $ 4,579 $ 11,528 $ 13,094 |
Merchandise Category | |
Revenue From Contract With Customer [Line Items] | |
Disaggregation of Revenue | The following table presents net sales disaggregated by product and service category for each segment: Fiscal (in thousands) 2020 2019 2018 Net sales: U.S. Retail segment: Women's footwear $ 1,161,836 $ 1,853,265 $ 1,866,121 Men's footwear 386,338 539,917 561,722 Kids' footwear 151,121 158,261 118,859 Accessories and other 101,028 193,952 192,287 1,800,323 2,745,395 2,738,989 Canada Retail segment: Women's footwear 92,623 133,762 123,323 Men's footwear 45,665 63,140 57,567 Kids' footwear 37,233 40,995 30,216 Accessories and other 7,138 11,120 9,219 182,659 249,017 220,325 Brand Portfolio segment: Wholesale 197,940 379,698 86,209 Commission income 18,509 26,424 3,894 Direct-to-consumer 32,197 42,163 9,709 248,646 448,285 99,812 Other 62,909 122,090 128,968 Total segment net sales 2,294,537 3,564,787 3,188,094 Elimination of intersegment sales (59,818) (72,100) (10,176) Total net sales $ 2,234,719 $ 3,492,687 $ 3,177,918 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the number of shares used in the calculation of earnings (loss) per share: Fiscal (in thousands) 2020 2019 2018 Weighted average basic shares outstanding 72,198 73,602 80,026 Dilutive effect of stock-based compensation awards — 1,003 — Weighted average diluted shares outstanding 72,198 74,605 80,026 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Cost by Plan | Stock-based compensation expense consisted of the following: Fiscal (in thousands) 2020 2019 2018 Stock options $ 1,467 $ 2,079 $ 4,900 Restricted and director stock units 18,769 14,980 12,493 $ 20,236 $ 17,059 $ 17,393 |
Restricted Stock Unit Activity | The following table summarizes the stock-based compensation award activity for unvested stock units for fiscal 2020: Time-Based RSUs Performance-Based RSUs (shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding - beginning of period 1,687 $ 21.37 768 $ 21.24 Granted 5,880 $ 6.57 11 $ 5.49 Vested (358) $ 19.58 (226) $ 19.74 Forfeited (764) $ 10.41 (13) $ 21.94 Outstanding - end of period 6,445 $ 9.20 540 $ 21.84 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Shareholders' Equity [Abstract] | |
Schedule of Stock by Class | The following table provides additional information for our common shares: January 30, 2021 February 1, 2020 (in thousands) Class A Class B Class A Class B Authorized shares 250,000 100,000 250,000 100,000 Issued shares 86,835 7,733 86,202 7,733 Outstanding shares 64,666 7,733 64,033 7,733 Treasury shares 22,169 — 22,169 — |
Schedule of 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): (in thousands) Foreign Currency Translation Available-for-Sale Securities Total Balance, February 3, 2018 $ (9,278) $ (796) $ (10,074) Other comprehensive income (loss) before reclassifications (7,013) 192 (6,821) Amounts reclassified to non-operating expenses, net 13,963 226 14,189 Other comprehensive income 6,950 418 7,368 Balance, February 2, 2019 (2,328) (378) (2,706) Other comprehensive income (loss) before reclassifications (340) 609 269 Amounts reclassified to non-operating expenses, net — (58) (58) Other comprehensive income (loss) (340) 551 211 Balance, February 1, 2020 (2,668) 173 (2,495) Other comprehensive income (loss) before reclassifications (618) 195 (423) Amounts reclassified to non-operating income, net — (368) (368) Other comprehensive loss (618) (173) (791) Balance, January 30, 2021 $ (3,286) $ — $ (3,286) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables, net, consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Customer accounts receivables: Serviced by third-party provider with guaranteed payment $ 29,615 $ 54,209 Serviced by third-party provider without guaranteed payment 363 365 Serviced in-house 4,576 7,630 Income tax receivable 149,824 — Other receivables 12,865 28,166 Total receivables 197,243 90,370 Allowance for doubtful accounts (1,194) (1,219) $ 196,049 $ 89,151 The following presents the activity in our balance in the allowance for doubtful accounts: Fiscal (in thousands) 2020 2019 2018 Allowance for doubtful accounts - beginning of period $ (1,219) $ (939) $ — Provision for bad debts (1,041) (1,446) (939) Recoveries and other adjustments 1,066 1,166 — Allowance for doubtful accounts - end of period $ (1,194) $ (1,219) $ (939) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Investments [Abstract] | |
Marketable Securities | Investments in available-for-sale securities consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Carrying value of investments $ — $ 24,831 Unrealized gains included in accumulated other comprehensive loss — 143 Fair value $ — $ 24,974 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Land $ 1,110 $ 1,110 Buildings 12,485 12,485 Building and leasehold improvements 446,937 449,958 Furniture, fixtures and equipment 471,586 482,573 Software 194,064 189,291 Construction in progress 10,659 32,645 Total property and equipment 1,136,841 1,168,062 Accumulated depreciation and amortization (840,372) (773,053) $ 296,469 $ 395,009 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Activity related to our goodwill was as follows: January 30, 2021 February 1, 2020 (in thousands) Goodwill Accumulated Impairments Net Goodwill Accumulated Impairments Net Beginning of period by segment: U.S. Retail $ 93,655 $ — $ 93,655 $ 25,899 $ — $ 25,899 Canada Retail 41,610 (41,610) — 42,048 (42,048) — Brand Portfolio 19,989 — 19,989 63,614 — 63,614 155,254 (41,610) 113,644 131,561 (42,048) 89,513 Activity by segment: U.S. Retail - Allocation of goodwill from Brand Portfolio — — — 67,756 — 67,756 Canada Retail - Currency translation adjustment 1,476 (1,476) — (438) 438 — Brand Portfolio: Impairment charges — (19,989) (19,989) — — — Purchase price and allocation adjustments — — — 24,131 — 24,131 Allocation of goodwill to U.S. Retail — — — (67,756) — (67,756) 1,476 (21,465) (19,989) 23,693 438 24,131 End of period by segment: U.S. Retail 93,655 — 93,655 93,655 — 93,655 Canada Retail 43,086 (43,086) — 41,610 (41,610) — Brand Portfolio 19,989 (19,989) — 19,989 — 19,989 $ 156,730 $ (63,075) $ 93,655 $ 155,254 $ (41,610) $ 113,644 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: January 30, 2021 February 1, 2020 (in thousands) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Definite-lived customer relationships $ 2,909 $ (2,791) $ 118 $ 9,360 $ (2,044) $ 7,316 Indefinite-lived trademarks and tradenames 15,517 — 15,517 15,530 — 15,530 $ 18,426 $ (2,791) $ 15,635 $ 24,890 $ (2,044) $ 22,846 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: (in thousands) January 30, 2021 February 1, 2020 Gift cards $ 34,442 $ 35,461 Accrued compensation and related expenses 49,864 26,768 Accrued taxes 24,206 19,399 Loyalty programs deferred revenue 11,379 16,138 Sales returns 17,333 21,408 Customer allowances and discounts 4,579 11,528 Other 58,523 63,562 $ 200,326 $ 194,264 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: (in thousands) January 30, 2021 February 1, 2020 ABL Revolver $ 100,000 $ — Term Loan 243,750 — Credit Facility — 190,000 Total debt 343,750 190,000 Less unamortized Term Loan debt issuance costs (8,931) — Less current maturities of long-term debt (62,500) — Long-term debt $ 272,319 $ 190,000 |
Schedule of Maturities of Long-term Debt | As of January 30, 2021, future maturities of debt are as follows: (in thousands) Fiscal 2021 $ 62,500 Fiscal 2022 12,500 Fiscal 2023 12,500 Fiscal 2024 12,500 Fiscal 2025 243,750 Total $ 343,750 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost | Lease income and lease expense consisted of the following: Fiscal (in thousands) 2020 2019 2018 Operating sublease income $ 12,219 $ 9,601 $ 4,659 Operating lease expense: Lease expense to unrelated parties $ 199,729 $ 213,156 $ 204,873 Lease expense to related parties 9,239 9,486 9,220 Variable lease expense to unrelated parties 63,881 53,239 23,822 Variable lease expense to related parties 1,341 1,283 — $ 274,190 $ 277,164 $ 237,915 Fiscal 2020 Other operating lease information: Weighted-average remaining lease term 5.3 years Weighted-average discount rate 4.0 % |
Schedule of Future Fixed Minimum Lease Payments | As of January 30, 2021, our future fixed minimum lease payments are as follows: (in thousands) Unrelated Parties Related Parties Total Fiscal 2021 $ 267,251 $ 9,085 $ 276,336 Fiscal 2022 202,431 7,118 209,549 Fiscal 2023 159,705 4,573 164,278 Fiscal 2024 117,648 4,139 121,787 Fiscal 2025 83,705 3,919 87,624 Future fiscal years thereafter 156,796 7,434 164,230 987,536 36,268 1,023,804 Less discounting impact on operating leases (97,539) (3,744) (101,283) Total operating lease liabilities 889,997 32,524 922,521 Less current operating lease liabilities (236,813) (7,973) (244,786) Non-current operating lease liabilities $ 653,184 $ 24,551 $ 677,735 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | As of January 30, 2021, our noncancelable purchase obligations and future guaranteed minimum royalty payments are as follows: Guaranteed Minimum Royalties (in thousands) Noncancelable Purchase Obligations Unrelated Parties Related Party Total Fiscal 2021 $ 5,449 $ 19,253 $ 18,350 $ 37,603 Fiscal 2022 1,922 16,309 18,350 34,659 Fiscal 2023 1,521 15,309 18,350 33,659 Fiscal 2024 — 15,309 19,650 34,959 Fiscal 2025 — 6,984 19,650 26,634 Future fiscal years thereafter — 20,952 58,950 79,902 $ 8,892 $ 94,116 $ 153,300 $ 247,416 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before income taxes and loss from equity investment in TSL consisted of the following: Fiscal (in thousands) 2020 2019 2018 Domestic income (loss) $ (559,120) $ 111,021 $ 123,172 Foreign income (loss), including loss from equity investment in TSL (49,527) 8,753 (113,805) Income (loss) before income taxes and loss from equity investment in TSL $ (608,647) $ 119,774 $ 9,367 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax provision (benefit) consisted of the following: Fiscal (in thousands) 2020 2019 2018 Current: Federal $ (151,931) $ 21,196 $ 29,073 Foreign 1,451 205 188 State and local (3,840) 6,596 12,268 (154,320) 27,997 41,529 Deferred: Federal 23,601 (620) (2,234) Foreign 1,504 (1,241) (9,273) State and local 9,287 (859) (189) 34,392 (2,720) (11,696) Income tax provision (benefit) $ (119,928) $ 25,277 $ 29,833 |
Schedule of Effective Income Tax Rate Reconciliation | The following presents a reconciliation of the income tax provision (benefit) based on the U.S. federal statutory tax rate to the total tax provision (benefit): Fiscal (in thousands) 2020 2019 2018 Income tax provision (benefit) at federal statutory rate $ (127,816) $ 25,152 $ 1,966 State and local taxes, net of federal benefit (provision) (23,678) 4,809 5,688 Foreign tax rate differential (3,000) 546 (3,270) Foreign impairment charges — — 11,196 Change in valuation allowance 87,579 (3,949) 8,157 Non-deductible compensation 3,617 344 2,219 CARES Act rate differential (57,894) — — Change in uncertain tax positions (290) (527) 2,611 Net impact of implementing tax reform — — 2,144 Other 1,554 (1,098) (878) Income tax provision (benefit) $ (119,928) $ 25,277 $ 29,833 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: (in thousands) January 30, 2021 February 1, 2020 Deferred tax assets: Operating lease liabilities $ 232,910 $ 259,846 Net operating losses 34,917 9,251 Stock-based compensation 11,782 10,987 Inventories 9,103 11,669 Accrued expenses 5,567 4,193 Intangible assets 5,031 442 State bonus depreciation 4,654 3,342 Loyalty programs deferred revenue 2,406 3,405 Gift cards 2,153 3,801 Other 3,824 4,459 312,347 311,395 Less: valuation allowance (101,185) (9,472) Total deferred tax assets, net of valuation allowance 211,162 301,923 Deferred tax liabilities: Operating lease assets (187,398) (242,733) Property and equipment (23,306) (25,359) Other (5,065) (3,977) (215,769) (272,069) Net deferred tax assets (liabilities) $ (4,607) $ 29,854 Deferred income taxes are reported within the consolidated balance sheets as follows: (in thousands) January 30, 2021 February 1, 2020 Deferred tax assets $ — $ 31,863 Deferred tax liabilities included in other non-current liabilities (4,607) (2,009) Net deferred tax assets (liabilities) as shown above $ (4,607) $ 29,854 |
Summary of Valuation Allowance | The following presents the changes in valuation allowance: Fiscal (in thousands) 2020 2019 2018 Valuation allowance - beginning of period $ 9,472 $ 14,097 $ 2,736 Additions charged to income tax provision (benefit) 87,579 — 8,157 Additions related to acquisitions — — 6,124 Allowances taken or written off — (3,949) (2,920) Other adjustments 4,134 (676) — Valuation allowance - end of period $ 101,185 $ 9,472 $ 14,097 |
Schedule of Unrecognized Tax Benefits Roll Forward | Changes in gross unrecognized tax benefits were as follows: Fiscal (in thousands) 2020 2019 2018 Unrecognized tax benefits - beginning of period $ 10,764 $ 11,608 $ 7,925 Additions for tax positions taken in the current year 603 1,692 4,105 Reductions for tax positions taken in prior years: Changes in estimates — (340) — Settlements (1,280) (2,196) (422) Unrecognized tax benefits - end of period $ 10,087 $ 10,764 $ 11,608 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | The following provides certain financial data by segment reconciled to the consolidated financial statements: (in thousands) U.S. Retail Canada Retail Brand Portfolio Other Corporate / Eliminations Total Fiscal 2020 Net sales: External customer sales $ 1,800,323 $ 182,659 $ 188,828 $ 62,909 $ — $ 2,234,719 Intersegment sales — — 59,818 — (59,818) — Total net sales $ 1,800,323 $ 182,659 $ 248,646 $ 62,909 $ (59,818) $ 2,234,719 Gross profit $ 242,786 $ 28,651 $ 36,393 $ 962 $ 2,449 $ 311,241 Income from equity investment in ABG-Camuto $ — $ — $ 9,329 $ — $ — $ 9,329 Cash paid for property and equipment $ 9,997 $ 3,420 $ 1,194 $ 67 $ 16,436 $ 31,114 Depreciation and amortization $ 47,083 $ 7,817 $ 5,433 $ 42 $ 27,651 $ 88,026 Fiscal 2019 Net sales: External customer sales $ 2,745,395 $ 249,017 $ 376,185 $ 122,090 $ — $ 3,492,687 Intersegment sales — — 72,100 — (72,100) — Total net sales $ 2,745,395 $ 249,017 $ 448,285 $ 122,090 $ (72,100) $ 3,492,687 Gross profit (loss) $ 786,976 $ 79,850 $ 114,170 $ 26,065 $ (7,391) $ 999,670 Income from equity investment in ABG-Camuto $ — $ — $ 10,149 $ — $ — $ 10,149 Cash paid for property and equipment $ 36,302 $ 7,600 $ 3,574 $ 178 $ 30,166 $ 77,820 Depreciation and amortization $ 47,282 $ 9,583 $ 5,644 $ 372 $ 23,768 $ 86,649 Fiscal 2018 Net sales: External customer sales $ 2,738,989 $ 220,325 $ 89,636 $ 128,968 $ — $ 3,177,918 Intersegment sales — — 10,176 — (10,176) — Total net sales $ 2,738,989 $ 220,325 $ 99,812 $ 128,968 $ (10,176) $ 3,177,918 Gross profit (loss) $ 840,174 $ 55,937 $ 18,920 $ 25,252 $ (1,594) $ 938,689 Income from equity investment in ABG-Camuto $ — $ — $ 1,298 $ — $ — $ 1,298 Cash paid for property and equipment $ 32,544 $ 6,396 $ 447 $ 147 $ 25,821 $ 65,355 Depreciation and amortization $ 49,552 $ 6,951 $ 1,971 $ 604 $ 19,970 $ 79,048 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jan. 30, 2021USD ($) | Jan. 30, 2021USD ($)segmentnumberOfPositions | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Aug. 07, 2020USD ($) | Nov. 05, 2018 | Feb. 03, 2018USD ($) | |
Entity Information [Line Items] | |||||||
Number of reportable segments | segment | 3 | ||||||
Impairment of Long-Lived Assets Held-for-use | $ 7,800 | ||||||
Employee-related Liabilities | $ 10,000 | $ 10,000 | |||||
Effective Income Tax Rate Reconciliation, Percent | 19.70% | 21.10% | |||||
Deferred Tax Assets, Net | 87,600 | $ 87,600 | $ 29,854 | ||||
Additions charged to income tax provision (benefit) | 87,579 | 0 | $ 8,157 | ||||
Severance Costs | 5,200 | 15,200 | 3,900 | 5,600 | |||
Loss on Contract Termination | 7,200 | ||||||
Business Combination, Integration Related Costs | 2,400 | 6,600 | |||||
Supplemental Unemployment Benefits, Severance Benefits | 6,500 | 6,500 | 1,700 | ||||
Gain (Loss) Related to Litigation Settlement | 8,990 | 0 | 0 | ||||
Pre-Opening Costs | 2,700 | 2,600 | 2,800 | ||||
Marketing Expense | 131,700 | 123,900 | 121,400 | ||||
Cash and cash equivalents | 59,581 | 59,581 | 86,564 | 99,369 | |||
Restricted cash, included in prepaid expenses and other current assets | 0 | 0 | 0 | 1,199 | |||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | 59,581 | 59,581 | 86,564 | 100,568 | $ 175,932 | ||
Long-term Debt, Gross | 343,750 | 343,750 | 190,000 | ||||
Impairment of Intangible Assets, Finite-lived | 13,900 | ||||||
Defined Contribution Plan, Cost | 5,300 | 5,900 | 5,200 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 243,017 | 243,017 | 720,914 | 832,377 | 955,251 | ||
Retained earnings (deficit) | |||||||
Entity Information [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (228,785) | (228,785) | 267,094 | 254,718 | $ 354,979 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Entity Information [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (9,556) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings (deficit) | |||||||
Entity Information [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (9,556) | ||||||
Term Loan | |||||||
Entity Information [Line Items] | |||||||
Long-term Debt, Fair Value | 254,100 | 254,100 | |||||
Long-term Debt, Gross | 243,750 | $ 243,750 | 0 | $ 250,000 | |||
Building | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 39 years | ||||||
COVID Pandemic | |||||||
Entity Information [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | numberOfPositions | 1,000 | ||||||
Restructuring and Related Cost, Number of Vacant Positions Not Filled | numberOfPositions | 200 | ||||||
Government Grant Received | $ 11,400 | ||||||
Unusual or Infrequent Item, or Both, Incremental Costs | $ 10,600 | ||||||
Minimum | Building and Building Improvements | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Minimum | Furniture and Fixtures | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Minimum | Software and Software Development Costs | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
Maximum | Building and Building Improvements | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 20 years | ||||||
Maximum | Furniture and Fixtures | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||
Maximum | Software and Software Development Costs | |||||||
Entity Information [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||
Brand Portfolio | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | 4,800 | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 6,500 | ||||||
Goodwill, Impairment Loss | 19,989 | 0 | |||||
Severance Costs | $ 8,900 | ||||||
Concentration risk, percentage | 73.00% | ||||||
U.S. Retail | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | 1,000 | $ 104,200 | |||||
Severance Costs | $ 5,500 | ||||||
Concentration risk, percentage | 22.00% | ||||||
Canada Retail | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | 3,200 | $ 22,900 | 3,600 | ||||
Goodwill, Impairment Loss | 41,800 | ||||||
Severance Costs | 800 | ||||||
Town Shoes | |||||||
Entity Information [Line Items] | |||||||
Foreign currency translation adjustments | (12,200) | ||||||
Operating Lease Assets | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | $ 4,200 | $ 127,100 | 3,000 | ||||
Operating Lease Assets | U.S. Retail | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | 2,300 | ||||||
Operating Lease Assets | Canada Retail | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | $ 700 | ||||||
Leasehold Improvements | |||||||
Entity Information [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | $ 5,100 | ||||||
Designer Brands Inc. | ABG-Camuto, LLC | |||||||
Entity Information [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent | 40.00% |
Acquisitions and Equity Metho_3
Acquisitions and Equity Method Investment - Narrative (Details) $ in Thousands, $ in Millions | Nov. 05, 2018USD ($) | May 10, 2018USD ($) | May 10, 2018CAD ($) | Jan. 30, 2021USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, net of cash acquired | $ 0 | $ 0 | $ 199,403 | ||||
Foreign currency translation loss | (618) | (340) | (7,013) | ||||
Net sales | 2,234,719 | 3,492,687 | 3,177,918 | ||||
Net income (loss) | (488,719) | 94,497 | (20,466) | ||||
Impairment charges | 153,606 | 7,771 | 60,760 | ||||
Impairment of long-lived assets held-for-use | 7,800 | ||||||
Camuto LLC | |||||||
Business Acquisition [Line Items] | |||||||
Cash acquired from acquisition | $ 9,700 | ||||||
Consideration transferred | 166,300 | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, consideration transferred | (5,000) | ||||||
Proceeds from unsecured lines of credit | 160,000 | ||||||
Town Shoes | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, net of cash acquired | $ 28,200 | $ 36.2 | |||||
Cash acquired from acquisition | $ 6,600 | $ 8.5 | |||||
Impairment charges | 41,800 | ||||||
Town Shoes | Nonoperating Income (Expense) | |||||||
Business Acquisition [Line Items] | |||||||
Foreign currency translation loss | (34,000) | ||||||
ABG-Camuto, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire interest in subsidiaries and affiliates | $ 56,800 | ||||||
Canada Retail | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | 182,659 | 249,017 | 220,325 | ||||
Impairment of long-lived assets held-for-use | $ 3,200 | 22,900 | 3,600 | ||||
Canada Retail | Contract Termination | |||||||
Business Acquisition [Line Items] | |||||||
Business exit costs | 15,500 | ||||||
Canada Retail | Operating Expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 3,100 | ||||||
Canada Retail | Town Shoes | |||||||
Business Acquisition [Line Items] | |||||||
Net income (loss) | 48,900 | ||||||
Camuto LLC | Operating Expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 22,200 | ||||||
Product | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | 2,234,719 | 3,492,687 | 3,177,918 | ||||
Product | Canada Retail | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | $ 182,659 | $ 249,017 | 220,325 | ||||
Product | Canada | Camuto LLC | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | 89,600 | ||||||
Net income (loss) | $ 16,200 | ||||||
Designer Brands Inc. | ABG-Camuto, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent | 40.00% |
Acquisitions and Equity Metho_4
Acquisitions and Equity Method Investment - Activity Related to Equity Investment in ABG-Camuto (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill [Roll Forward] | |||
Equity investment - beginning of period | $ 57,760 | ||
Distributions received | (8,491) | $ (10,514) | $ 0 |
Equity investment - end of period | 58,598 | 57,760 | |
ABG-Camuto, LLC | |||
Goodwill [Roll Forward] | |||
Equity investment - beginning of period | 57,760 | 58,125 | 0 |
Initial investment in ABG-Camuto | 0 | 0 | 56,827 |
Share of net earnings | 9,329 | 10,149 | 1,298 |
Distributions received | (8,491) | (10,514) | 0 |
Equity investment - end of period | $ 58,598 | $ 57,760 | $ 58,125 |
Acquisitions and Equity Metho_5
Acquisitions and Equity Method Investment - Schedule of Combined Results (Details) $ in Thousands | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Business Combinations [Abstract] | |
Net sales | $ 3,562,498 |
Net income | $ 74,367 |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,234,719 | $ 3,492,687 | $ 3,177,918 |
Intersegment Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (59,818) | (72,100) | (10,176) |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,234,719 | 3,492,687 | 3,177,918 |
Product | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,294,537 | 3,564,787 | 3,188,094 |
U.S. Retail Segment | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,800,323 | 2,745,395 | 2,738,989 |
U.S. Retail Segment | Women's footwear | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,161,836 | 1,853,265 | 1,866,121 |
U.S. Retail Segment | Men's footwear | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 386,338 | 539,917 | 561,722 |
U.S. Retail Segment | Kids' footwear | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 151,121 | 158,261 | 118,859 |
U.S. Retail Segment | Accessories and other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 101,028 | 193,952 | 192,287 |
Canada Retail | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 182,659 | 249,017 | 220,325 |
Canada Retail | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 182,659 | 249,017 | 220,325 |
Canada Retail | Women's footwear | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 92,623 | 133,762 | 123,323 |
Canada Retail | Men's footwear | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 45,665 | 63,140 | 57,567 |
Canada Retail | Kids' footwear | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 37,233 | 40,995 | 30,216 |
Canada Retail | Accessories and other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 7,138 | 11,120 | 9,219 |
Canada Retail | Product | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 182,659 | 249,017 | 220,325 |
Brand Portfolio | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 248,646 | 448,285 | 99,812 |
Brand Portfolio | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 248,646 | 448,285 | 99,812 |
Brand Portfolio | Intersegment Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 59,818 | 72,100 | 10,176 |
Brand Portfolio | Wholesale | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 197,940 | 379,698 | 86,209 |
Brand Portfolio | Commission income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 18,509 | 26,424 | 3,894 |
Brand Portfolio | Direct-to-consumer | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 32,197 | 42,163 | 9,709 |
Brand Portfolio | Product | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 188,828 | 376,185 | 89,636 |
Total Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 62,909 | 122,090 | 128,968 |
Total Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 62,909 | 122,090 | 128,968 |
Total Other | Product | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 62,909 | $ 122,090 | $ 128,968 |
Revenue - Deferred Revenue Liab
Revenue - Deferred Revenue Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Contract With Customer Liability [Roll Forward] | |||
Gift cards and merchandise credits, beginning balance | $ 35,461 | $ 34,998 | $ 32,792 |
Gift cards and merchandise credits, ending balance | 34,442 | 35,461 | 34,998 |
Loyalty programs deferred revenue, beginning balance | 16,138 | 16,151 | 21,282 |
Loyalty programs deferred revenue, ending balance | 11,379 | 16,138 | 16,151 |
Certificates Redeemed | |||
Contract With Customer Liability [Roll Forward] | |||
Increase (decrease) in contract with customer, liability | (25,049) | (37,311) | (41,210) |
Points Issued | |||
Contract With Customer Liability [Roll Forward] | |||
Increase (decrease) in contract with customer, liability | 20,290 | 37,298 | 36,079 |
Gift cards redeemed and breakage recognized to net sales | |||
Contract With Customer Liability [Roll Forward] | |||
Increase (decrease) in contract with customer, liability | (59,173) | (91,000) | (90,569) |
Gift cards issued | |||
Contract With Customer Liability [Roll Forward] | |||
Increase (decrease) in contract with customer, liability | $ 58,154 | $ 91,463 | $ 92,775 |
Revenue - Sales Reserves (Detai
Revenue - Sales Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Sales returns reserve: | |||
Beginning of period | $ 11,528 | ||
End of period | 4,579 | $ 11,528 | |
Customer allowances and discounts reserve: | |||
Beginning of period | 1,219 | 939 | $ 0 |
End of period | 1,194 | 1,219 | 939 |
Sales Returns Reserve | |||
Sales returns reserve: | |||
Beginning of period | 21,408 | 17,743 | 14,130 |
Net sales reduced for estimated returns | 279,923 | 448,886 | 402,274 |
Actual returns during the period | (283,998) | (445,221) | (398,661) |
End of period | 17,333 | 21,408 | 17,743 |
Customer Allowances And Discount Reserve | |||
Customer allowances and discounts reserve: | |||
Beginning of period | 11,528 | 13,094 | 0 |
Assumed liability in acquisitions and measurement period adjustments | 0 | (3,267) | 15,434 |
Net sales reduced for estimated allowances and discounts | 14,363 | 43,733 | 10,669 |
Actual allowances and discounts during the period | (21,312) | (42,032) | (13,009) |
End of period | $ 4,579 | $ 11,528 | $ 13,094 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Asset for recovery of merchandise returns | $ 8,400 | $ 11,900 | $ 10,100 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Nov. 05, 2018 | |
Schottenstein Affiliates [Abstract] | ||||
Outstanding common shares owned (in hundredths) | 16.00% | |||
Combined voting power of outstanding common shares (in hundredths) | 52.00% | |||
Number of Class A Common Shares owned by Schottenstein Affiliates (in shares) | 3.9 | |||
Number of Class B Common Shares owned by Schottenstein Affiliates (in shares) | 7.7 | |||
Other Related Party Transactions [Abstract] | ||||
Due to related parties, current | $ 1.2 | $ 0.9 | ||
Management Service | ||||
Other Related Party Transactions [Abstract] | ||||
Royalty expense | 18.2 | 18.2 | ||
Schottenstein Affiliates | ||||
Other Related Party Transactions [Abstract] | ||||
Other purchases and services | $ 4.8 | $ 6 | $ 6.5 | |
Designer Brands Inc. | ABG-Camuto, LLC | ||||
Other Related Party Transactions [Abstract] | ||||
Noncontrolling interest, ownership percentage by parent | 40.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |||
Basic shares | 72,198 | 73,602 | 80,026 |
Dilutive effect of stock-based compensation awards | 0 | 1,003 | 0 |
Diluted shares | 72,198 | 74,605 | 80,026 |
Earnings (Loss) Per Share - Ant
Earnings (Loss) Per Share - Anti-Dilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 5.9 | 3.2 | 3.2 |
Stock-based Compensation - Opti
Stock-based Compensation - Options (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
DSW Stock-Based Compensation Plans [Abstract] | |||
Number of shares authorized (in shares) | 11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 9.2 | ||
Share-based Payment Arrangement, Expense | $ 20,236 | $ 17,059 | $ 17,393 |
Stock Options | |||
DSW Stock-Based Compensation Plans [Abstract] | |||
Share-based Payment Arrangement, Expense | $ 1,467 | $ 2,079 | $ 4,900 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units, Performance Based Restricted Stock Units and Director Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 20,236 | $ 17,059 | $ 17,393 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 18,769 | $ 14,980 | 12,493 |
Time-Based Restricted Stock Units | |||
Equity instruments other than options [Roll forward] | |||
Outstanding, beginning of period (in units) | 1,687 | ||
Granted (in units) | 5,880 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (358) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (764) | ||
Outstanding, end of period (in units) | 6,445 | 1,687 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.20 | $ 21.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 6.57 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 19.58 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 10.41 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 6,500 | $ 3,800 | 1,700 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 27,900 | ||
Weighted average expense recognition period (in years) | 2 years 1 month 6 days | ||
Performance Shares | |||
Equity instruments other than options [Roll forward] | |||
Outstanding, beginning of period (in units) | 768 | ||
Granted (in units) | 11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (226) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (13) | ||
Outstanding, end of period (in units) | 540 | 768 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 21.84 | $ 21.24 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 5.49 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 19.74 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 21.94 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 4,000 | $ 3,900 | $ 3,200 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2,300 | ||
Weighted average expense recognition period (in years) | 1 year | ||
Director | |||
Equity instruments other than options [Roll forward] | |||
Outstanding, end of period (in units) | 400 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ in Millions | Jan. 30, 2021USD ($)$ / sharesshares | Feb. 01, 2020shares | Feb. 02, 2019shares | Feb. 03, 2018shares | Aug. 17, 2017USD ($) |
Class of Stock [Line Items] | |||||
Preferred Stock, Shares Authorized | 100,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0 | ||||
Preferred Stock, Shares Issued | 0 | ||||
Stock Repurchase Program, Authorized Amount | $ | $ 500 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 334.9 | $ 33.5 | |||
Class A Common Shares | |||||
Class of Stock [Line Items] | |||||
Common Stock, Voting Rights, Number Of Votes | $ / shares | 1 | ||||
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | |||
Common Stock, Shares, Issued | 86,835,000 | 86,202,000 | |||
Common Shares, outstanding (in shares) | 64,666,000 | 64,033,000 | 70,672,000 | 72,294,000 | |
Treasury Stock, Common, Shares | 22,169,000 | 22,169,000 | |||
Class B Common Shares | |||||
Class of Stock [Line Items] | |||||
Common Stock, Voting Rights, Number Of Votes | $ / shares | 8 | ||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |||
Common Stock, Shares, Issued | 7,733,000 | 7,733,000 | |||
Common Shares, outstanding (in shares) | 7,733,000 | 7,733,000 | 7,733,000 | 7,733,000 | |
Treasury Stock, Common, Shares | 0 | 0 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shareholders' equity, beginning of period | $ (2,495) | $ (2,706) | $ (10,074) |
Other comprehensive income (loss) before reclassifications | (423) | 269 | (6,821) |
Amounts reclassified to non-operating income, net | (368) | (58) | 14,189 |
Other comprehensive loss | (791) | 211 | 7,368 |
Shareholders' equity, end of period | (3,286) | (2,495) | (2,706) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shareholders' equity, beginning of period | (2,668) | (2,328) | (9,278) |
Other comprehensive income (loss) before reclassifications | (618) | (340) | (7,013) |
Amounts reclassified to non-operating income, net | 0 | 0 | 13,963 |
Other comprehensive loss | (618) | (340) | 6,950 |
Shareholders' equity, end of period | (3,286) | (2,668) | (2,328) |
Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shareholders' equity, beginning of period | 173 | (378) | (796) |
Other comprehensive income (loss) before reclassifications | 195 | 609 | 192 |
Amounts reclassified to non-operating income, net | (368) | (58) | 226 |
Other comprehensive loss | (173) | 551 | 418 |
Shareholders' equity, end of period | $ 0 | $ 173 | $ (378) |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | |
Receivables [Abstract] | |||||
Serviced by third-party provider with guaranteed payment | $ 29,615 | $ 54,209 | |||
Serviced by third-party provider without guaranteed payment | 363 | 365 | |||
Serviced in-house | 4,576 | 7,630 | |||
Income tax receivable | 149,824 | 0 | |||
Other receivables | 12,865 | 28,166 | |||
Total receivables | 197,243 | 90,370 | |||
Allowance for doubtful accounts | $ (1,194) | $ (939) | $ 0 | (1,194) | (1,219) |
Receivables, net | $ 196,049 | $ 89,151 | |||
Beginning of period | 1,219 | 939 | 0 | ||
Provision for bad debts | (1,041) | (1,446) | (939) | ||
Recoveries and other adjustments | 1,066 | 1,166 | 0 | ||
End of period | $ 1,194 | $ 1,219 | $ 939 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Schedule of Investments, Reported Amounts, by Category [Line Items] | ||
Investments | $ 0 | $ 24,974 |
Available-for-sale Securities | Carrying value of investments | ||
Schedule of Investments, Reported Amounts, by Category [Line Items] | ||
Investments | 0 | 24,831 |
Short-term Investments | ||
Schedule of Investments, Reported Amounts, by Category [Line Items] | ||
Unrealized gains included in accumulated other comprehensive loss | $ 0 | $ 143 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Property and equipment [Abstract]: | ||
Land | $ 1,110 | $ 1,110 |
Buildings | 12,485 | 12,485 |
Building and leasehold improvements | 446,937 | 449,958 |
Furniture, fixtures and equipment | 471,586 | 482,573 |
Software | 194,064 | 189,291 |
Construction in progress | 10,659 | 32,645 |
Total property and equipment | 1,136,841 | 1,168,062 |
Accumulated depreciation and amortization | (840,372) | (773,053) |
Property, Plant and Equipment, Net, Total | $ 296,469 | $ 395,009 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Activity Related to Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill [Line Items] | |||
Goodwill, Gross | $ 156,730 | $ 155,254 | $ 131,561 |
Goodwill, Impaired, Accumulated Impairment Loss | (63,075) | (41,610) | (42,048) |
Goodwill | 93,655 | 113,644 | 89,513 |
Goodwill, period increase (decrease) | 1,476 | 23,693 | |
Goodwill, Other Increase (Decrease) | (19,989) | 24,131 | |
Goodwill, Impaired, Accumulated Impairment Loss, Period Increase (Decrease) | (21,465) | 438 | |
U.S. Retail | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 93,655 | 93,655 | 25,899 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | 0 |
Goodwill | 93,655 | 93,655 | 25,899 |
Goodwill, period increase (decrease) | 0 | 67,756 | |
Canada Retail | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 43,086 | 41,610 | 42,048 |
Goodwill, Impaired, Accumulated Impairment Loss | (43,086) | (41,610) | (42,048) |
Goodwill | 0 | 0 | 0 |
Goodwill, Impairment Loss | (41,800) | ||
Goodwill, Foreign Currency Translation Gain (Loss) | 1,476 | (438) | |
Goodwill, Impaired, Accumulated Impairment Loss, Foreign Currency Translation Gain (Loss) | (1,476) | 438 | |
Goodwill, Foreign Currency Translation Gain (Loss), Net | 0 | 0 | |
Brand Portfolio | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 19,989 | 19,989 | 63,614 |
Goodwill, Impaired, Accumulated Impairment Loss | (19,989) | 0 | 0 |
Goodwill | 0 | 19,989 | $ 63,614 |
Goodwill, period increase (decrease) | 0 | (67,756) | |
Goodwill, Impairment Loss | (19,989) | 0 | |
Goodwill, Purchase Accounting Adjustments | 0 | 24,131 | |
Goodwill, Purchase Accounting Adjustments, Accumulated Impairment | 0 | 0 | |
Goodwill, Purchase Accounting Adjustments, Net | $ 0 | $ 24,131 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ (2,791) | $ (2,044) |
Intangible Assets, Current | 15,635 | 22,846 |
Indefinite-Lived Trademarks | 15,517 | 15,530 |
Intangible Assets, Gross (Excluding Goodwill) | 18,426 | 24,890 |
Online retailer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,909 | 9,360 |
Finite-Lived Intangible Assets, Period Increase (Decrease) | (2,791) | (2,044) |
Finite-Lived Intangible Assets, Net | $ 118 | $ 7,316 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Payables and Accruals [Abstract] | ||||
Gift cards | $ 34,442 | $ 35,461 | $ 34,998 | $ 32,792 |
Accrued compensation and related expenses | 49,864 | 26,768 | ||
Accrued taxes | 24,206 | 19,399 | ||
Loyalty programs deferred revenue | 11,379 | 16,138 | $ 16,151 | $ 21,282 |
Sales returns | 17,333 | 21,408 | ||
Customer allowances and discounts | 4,579 | 11,528 | ||
Other | 58,523 | 63,562 | ||
Total accrued expenses | $ 200,326 | $ 194,264 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Aug. 07, 2020 | Feb. 01, 2020 |
Debt Instrument [Line Items] | |||
Total | $ 343,750 | $ 190,000 | |
Credit Facility | 0 | 190,000 | |
Less unamortized Term Loan debt issuance costs | (8,931) | 0 | |
Less current maturities of long-term debt | (62,500) | 0 | |
Long-term debt | 272,319 | 190,000 | |
ABL Revolver | |||
Debt Instrument [Line Items] | |||
Total | 100,000 | $ 400,000 | 0 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Total | $ 243,750 | $ 250,000 | $ 0 |
Debt - Maturity (Details)
Debt - Maturity (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fiscal 2021 | $ 62,500 | |
Fiscal 2022 | 12,500 | |
Fiscal 2023 | 12,500 | |
Fiscal 2024 | 12,500 | |
Fiscal 2025 | 243,750 | |
Total | $ 343,750 | $ 190,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Aug. 07, 2020 | Jan. 30, 2021 | Feb. 01, 2020 |
Credit Facility [Abstract] | |||
Long-term Debt, Gross | $ 343,750 | $ 190,000 | |
Line of Credit Facility, Current Borrowing Capacity | 400,000 | ||
Letters of Credit Outstanding, Amount | 5,300 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 294,700 | ||
ABL Revolver | |||
Credit Facility [Abstract] | |||
Long-term Debt, Gross | $ 400,000 | $ 100,000 | 0 |
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
ABL Revolver | Overnight Bank Funding Rate | |||
Credit Facility [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
ABL Revolver | London Interbank Offered Rate (LIBOR) | |||
Credit Facility [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
ABL Revolver | London Interbank Offered Rate (LIBOR) | Interest Rate Floor | |||
Credit Facility [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
ABL Revolver | Geographic Distribution, Foreign | |||
Credit Facility [Abstract] | |||
Long-term Debt, Gross | $ 20,000 | ||
Letter of Credit | |||
Credit Facility [Abstract] | |||
Long-term Debt, Gross | 50,000 | ||
Domestic Line of Credit | UNITED STATES | |||
Credit Facility [Abstract] | |||
Long-term Debt, Gross | 40,000 | ||
Foreign Line of Credit | Non-US | |||
Credit Facility [Abstract] | |||
Long-term Debt, Gross | 2,000 | ||
Term Loan | |||
Credit Facility [Abstract] | |||
Long-term Debt, Gross | $ 250,000 | $ 243,750 | $ 0 |
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 9.75% | ||
Debt Instrument, Interest Rate, Effective Percentage | 11.81% | ||
Debt Instrument, Covenant, Availability Covenant, Minimum, Amount | $ 30,000 | ||
Debt Instrument, Covenant, Availability Covenant, Minimum, Percent | 10.00% | ||
Debt Instrument, Covenant, Minimum EBITDA Covenant, Liquidity Minimum, Amount | $ 150,000 | ||
Term Loan | Overnight Bank Funding Rate | |||
Credit Facility [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Term Loan | London Interbank Offered Rate (LIBOR) | |||
Credit Facility [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 7.50% | ||
Term Loan | London Interbank Offered Rate (LIBOR) | Interest Rate Floor | |||
Credit Facility [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 8.50% |
Leases - Lease Income and Lease
Leases - Lease Income and Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease income | $ 12,219 | $ 9,601 | $ 4,659 |
Operating lease expense: | |||
Operating lease expense | $ 274,190 | 277,164 | 237,915 |
Other operating lease information: | |||
Weighted-average remaining lease term | 5 years 3 months 18 days | ||
Weighted-average discount rate | 4.00% | ||
Unrelated Parties | |||
Operating lease expense: | |||
Lease expense | $ 199,729 | 213,156 | 204,873 |
Variable lease cost | 63,881 | 53,239 | 23,822 |
Related Party | |||
Operating lease expense: | |||
Lease expense | 9,239 | 9,486 | 9,220 |
Variable lease cost | $ 1,341 | $ 1,283 | $ 0 |
Leases - Future Fixed Minimum L
Leases - Future Fixed Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Lessee, Lease, Description [Line Items] | ||
Fiscal 2021 | $ 276,336 | |
Fiscal 2022 | 209,549 | |
Fiscal 2023 | 164,278 | |
Fiscal 2024 | 121,787 | |
Fiscal 2025 | 87,624 | |
Future fiscal years thereafter | 164,230 | |
Future fixed minimum lease payments | 1,023,804 | |
Less discounting impact on operating leases | (101,283) | |
Total operating lease liabilities | 922,521 | |
Less current operating lease liabilities | (244,786) | $ (186,695) |
Non-current operating lease liabilities | 677,735 | $ 846,584 |
Unrelated Parties | ||
Lessee, Lease, Description [Line Items] | ||
Fiscal 2021 | 267,251 | |
Fiscal 2022 | 202,431 | |
Fiscal 2023 | 159,705 | |
Fiscal 2024 | 117,648 | |
Fiscal 2025 | 83,705 | |
Future fiscal years thereafter | 156,796 | |
Future fixed minimum lease payments | 987,536 | |
Less discounting impact on operating leases | (97,539) | |
Total operating lease liabilities | 889,997 | |
Less current operating lease liabilities | (236,813) | |
Non-current operating lease liabilities | 653,184 | |
Related Party | ||
Lessee, Lease, Description [Line Items] | ||
Fiscal 2021 | 9,085 | |
Fiscal 2022 | 7,118 | |
Fiscal 2023 | 4,573 | |
Fiscal 2024 | 4,139 | |
Fiscal 2025 | 3,919 | |
Future fiscal years thereafter | 7,434 | |
Future fixed minimum lease payments | 36,268 | |
Less discounting impact on operating leases | (3,744) | |
Total operating lease liabilities | 32,524 | |
Less current operating lease liabilities | (7,973) | |
Non-current operating lease liabilities | $ 24,551 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jan. 30, 2021USD ($)store |
Leases [Abstract] | |
Number of new stores | 9 |
Number of store relocations | 1 |
Operating lease liability, not yet commenced | $ | $ 14 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Insurance Recoveries | $ 3,000 |
Guarantees, Fair Value Disclosure | $ 15,900 |
Commitments and Contingencies L
Commitments and Contingencies Long Term Purchase Commitment (Details) $ in Thousands | Jan. 30, 2021USD ($) |
Noncancelable Purchase Obligations | |
Fiscal 2021 | $ 5,449 |
Fiscal 2022 | 1,922 |
Fiscal 2023 | 1,521 |
Fiscal 2024 | 0 |
Fiscal 2025 | 0 |
Future fiscal years thereafter | 0 |
Total purchase obligation | 8,892 |
Guaranteed Minimum Royalties | |
Fiscal 2021 | 37,603 |
Fiscal 2022 | 34,659 |
Fiscal 2023 | 33,659 |
Fiscal 2024 | 34,959 |
Fiscal 2025 | 26,634 |
Future fiscal years thereafter | 79,902 |
Total other commitment | 247,416 |
Unrelated Parties | |
Guaranteed Minimum Royalties | |
Fiscal 2021 | 19,253 |
Fiscal 2022 | 16,309 |
Fiscal 2023 | 15,309 |
Fiscal 2024 | 15,309 |
Fiscal 2025 | 6,984 |
Future fiscal years thereafter | 20,952 |
Total other commitment | 94,116 |
Related Party | |
Guaranteed Minimum Royalties | |
Fiscal 2021 | 18,350 |
Fiscal 2022 | 18,350 |
Fiscal 2023 | 18,350 |
Fiscal 2024 | 19,650 |
Fiscal 2025 | 19,650 |
Future fiscal years thereafter | 58,950 |
Total other commitment | $ 153,300 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Domestic income (loss) | $ (559,120) | $ 111,021 | $ 123,172 | |
Foreign income (loss), including loss from equity investment in TSL | (49,527) | 8,753 | (113,805) | |
Income (loss) before income taxes and loss from equity investment in TSL | (608,647) | 119,774 | 9,367 | |
Current: | ||||
Federal | (151,931) | 21,196 | 29,073 | |
Foreign | 1,451 | 205 | 188 | |
State and local | (3,840) | 6,596 | 12,268 | |
Current Income Tax Expense (Benefit), Total | (154,320) | 27,997 | 41,529 | |
Deferred: | ||||
Federal | 23,601 | (620) | (2,234) | |
Foreign | 1,504 | (1,241) | (9,273) | |
State and local | 9,287 | (859) | (189) | |
Deferred Income Tax Expense (Benefit), Total | 34,392 | (2,720) | (11,696) | |
Income tax provision (benefit) | (119,928) | 25,277 | 29,833 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Income tax provision (benefit) at federal statutory rate | (127,816) | 25,152 | 1,966 | |
State and local taxes, net of federal benefit (provision) | (23,678) | 4,809 | 5,688 | |
Foreign tax rate differential | (3,000) | 546 | (3,270) | |
Foreign impairment charges | 0 | 0 | 11,196 | |
Change in valuation allowance | 87,579 | (3,949) | 8,157 | |
Non-deductible compensation | 3,617 | 344 | 2,219 | |
CARES Act rate differential | (57,894) | 0 | 0 | |
Change in uncertain tax positions | (290) | (527) | 2,611 | |
Net impact of implementing tax reform | 0 | 0 | 2,144 | |
Other | 1,554 | (1,098) | (878) | |
Income tax provision (benefit) | (119,928) | 25,277 | 29,833 | |
Deferred tax assets: | ||||
Operating lease liabilities | 232,910 | 259,846 | ||
Net operating losses | 34,917 | 9,251 | ||
Stock-based compensation | 11,782 | 10,987 | ||
Inventories | 9,103 | 11,669 | ||
Accrued expenses | 5,567 | 4,193 | ||
Intangible assets | 5,031 | 442 | ||
State bonus depreciation | 4,654 | 3,342 | ||
Loyalty programs deferred revenue | 2,406 | 3,405 | ||
Gift cards | 2,153 | 3,801 | ||
Other | 3,824 | 4,459 | ||
Deferred tax assets, gross, total | 312,347 | 311,395 | ||
Less: valuation allowance | (101,185) | (9,472) | (14,097) | $ (2,736) |
Total deferred tax assets, net of valuation allowance | 211,162 | 301,923 | ||
Deferred tax liabilities: | ||||
Operating lease assets | (187,398) | (242,733) | ||
Property and equipment | (23,306) | (25,359) | ||
Other | (5,065) | (3,977) | ||
Deferred tax liabilities, net | (215,769) | (272,069) | ||
Net deferred tax assets (liabilities) | (4,607) | |||
Net deferred tax assets (liabilities) | 87,600 | 29,854 | ||
Deferred tax assets | 0 | 31,863 | ||
Deferred tax liabilities included in other non-current liabilities | (4,607) | (2,009) | ||
Additions charged to income tax provision (benefit) | 87,579 | 0 | 8,157 | |
Additions related to acquisitions | 0 | 0 | 6,124 | |
Allowances taken or written off | 0 | (3,949) | (2,920) | |
Other adjustments | $ 4,134 | $ (676) | $ 0 |
Income Taxes Income Tax Conting
Income Taxes Income Tax Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 8,700 | $ 9,200 | $ 10,200 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - beginning of period | 10,764 | 11,608 | 7,925 |
Additions for tax positions taken in the current year | 603 | 1,692 | 4,105 |
Changes in estimates | 0 | (340) | 0 |
Settlements | (1,280) | (2,196) | (422) |
Unrecognized tax benefits - end of period | 10,087 | 10,764 | 11,608 |
Unrecognized tax benefits, income tax penalties and interest expense | $ 2,600 | $ 2,300 | $ 1,800 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021USD ($)customer | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | |
Segment information [Abstract] | |||
Net sales | $ 2,234,719 | $ 3,492,687 | $ 3,177,918 |
Gross Profit | 311,241 | 999,670 | 938,689 |
Income (loss) from equity method investments | 9,329 | 10,149 | (12) |
Cash paid for property and equipment | 31,114 | 77,820 | 65,355 |
Depreciation and amortization | 88,026 | 86,649 | 79,048 |
Property and equipment, net | 296,469 | 395,009 | |
U.S. Retail | |||
Segment information [Abstract] | |||
Net sales | 1,800,323 | 2,745,395 | 2,738,989 |
Gross Profit | 242,786 | 786,976 | 840,174 |
Cash paid for property and equipment | 9,997 | 36,302 | 32,544 |
Depreciation and amortization | 47,083 | 47,282 | 49,552 |
Property and equipment, net | $ 900,000 | 1,200,000 | |
Concentration risk, percentage | 22.00% | ||
Canada Retail | |||
Segment information [Abstract] | |||
Net sales | $ 182,659 | 249,017 | 220,325 |
Gross Profit | 28,651 | 79,850 | 55,937 |
Cash paid for property and equipment | 3,420 | 7,600 | 6,396 |
Depreciation and amortization | 7,817 | 9,583 | 6,951 |
Property and equipment, net | 78,900 | 114,500 | |
Brand Portfolio | |||
Segment information [Abstract] | |||
Net sales | 248,646 | 448,285 | 99,812 |
Gross Profit | 36,393 | 114,170 | 18,920 |
Cash paid for property and equipment | 1,194 | 3,574 | 447 |
Depreciation and amortization | $ 5,433 | 5,644 | 1,971 |
Concentration risk, percentage | 73.00% | ||
Total Other | |||
Segment information [Abstract] | |||
Net sales | $ 62,909 | 122,090 | 128,968 |
Gross Profit | 962 | 26,065 | 25,252 |
Cash paid for property and equipment | 67 | 178 | 147 |
Depreciation and amortization | 42 | 372 | 604 |
Corporate Segment | |||
Segment information [Abstract] | |||
Net sales | (59,818) | (72,100) | (10,176) |
Gross Profit | 2,449 | (7,391) | (1,594) |
Cash paid for property and equipment | 16,436 | 30,166 | 25,821 |
Depreciation and amortization | 27,651 | 23,768 | 19,970 |
Product | |||
Segment information [Abstract] | |||
Net sales | 2,234,719 | 3,492,687 | 3,177,918 |
Product | U.S. Retail | |||
Segment information [Abstract] | |||
Net sales | 1,800,323 | 2,745,395 | 2,738,989 |
Product | Canada Retail | |||
Segment information [Abstract] | |||
Net sales | 182,659 | 249,017 | 220,325 |
Product | Brand Portfolio | |||
Segment information [Abstract] | |||
Net sales | 188,828 | 376,185 | 89,636 |
Product | Total Other | |||
Segment information [Abstract] | |||
Net sales | 62,909 | 122,090 | 128,968 |
Product | Corporate Segment | |||
Segment information [Abstract] | |||
Net sales | 0 | 0 | 0 |
ABG-Camuto, LLC | |||
Segment information [Abstract] | |||
Income (loss) from equity method investments | 9,329 | 10,149 | 1,298 |
ABG-Camuto, LLC | U.S. Retail | |||
Segment information [Abstract] | |||
Income (loss) from equity method investments | 0 | 0 | 0 |
ABG-Camuto, LLC | Canada Retail | |||
Segment information [Abstract] | |||
Income (loss) from equity method investments | 0 | 0 | 0 |
ABG-Camuto, LLC | Brand Portfolio | |||
Segment information [Abstract] | |||
Income (loss) from equity method investments | 9,329 | 10,149 | 1,298 |
ABG-Camuto, LLC | Total Other | |||
Segment information [Abstract] | |||
Income (loss) from equity method investments | 0 | 0 | 0 |
ABG-Camuto, LLC | Corporate Segment | |||
Segment information [Abstract] | |||
Income (loss) from equity method investments | $ 0 | 0 | 0 |
Sales Revenue, Net | |||
Segment information [Abstract] | |||
Concentration risk, number of customers | customer | 4 | ||
Concentration risk, percentage | 50.00% | ||
Intersegment Eliminations | |||
Segment information [Abstract] | |||
Net sales | $ (59,818) | (72,100) | (10,176) |
Intersegment Eliminations | Brand Portfolio | |||
Segment information [Abstract] | |||
Net sales | 59,818 | 72,100 | 10,176 |
Intersegment Eliminations | Corporate Segment | |||
Segment information [Abstract] | |||
Net sales | $ (59,818) | $ (72,100) | $ (10,176) |