Cover Page
Cover Page - shares | 3 Months Ended | |
May 03, 2020 | Jun. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 3, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33608 | |
Entity Registrant Name | lululemon athletica inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3842867 | |
Entity Address, Address Line One | 1818 Cornwall Avenue | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Postal Zip Code | V6J 1C7 | |
City Area Code | 604 | |
Local Phone Number | 732-6124 | |
Title of 12(b) Security | Common Stock, par value $0.005 per share | |
Trading Symbol | LULU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 124,814,503 | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001397187 | |
Current Fiscal Year End Date | --01-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 03, 2020 | Feb. 02, 2020 |
Current assets | ||
Cash and cash equivalents | $ 823,006 | $ 1,093,505 |
Accounts receivable | 48,684 | 40,219 |
Inventories | 625,849 | 518,513 |
Prepaid and receivable income taxes | 89,316 | 85,159 |
Other prepaid expenses and other current assets | 107,690 | 70,542 |
Total current assets | 1,694,545 | 1,807,938 |
Property and equipment, net | 659,265 | 671,693 |
Right-of-use lease assets | 731,883 | 689,664 |
Goodwill and intangible assets, net | 24,044 | 24,423 |
Deferred income tax assets | 31,190 | 31,435 |
Other non-current assets | 60,859 | 56,201 |
Total assets | 3,201,786 | 3,281,354 |
Current liabilities | ||
Accounts payable | 78,940 | 79,997 |
Accrued inventory liabilities | 9,860 | 6,344 |
Accrued compensation and related expenses | 69,455 | 133,688 |
Current lease liabilities | 144,646 | 128,497 |
Current income taxes payable | 28,729 | 26,436 |
Unredeemed gift card liability | 105,286 | 120,413 |
Other current liabilities | 194,580 | 125,043 |
Total current liabilities | 631,496 | 620,418 |
Non-current lease liabilities | 639,242 | 611,464 |
Non-current income taxes payable | 48,226 | 48,226 |
Deferred income tax liabilities | 40,764 | 43,432 |
Other non-current liabilities | 6,271 | 5,596 |
Total liabilities | 1,365,999 | 1,329,136 |
Commitments and contingencies | ||
Stockholders' equity | ||
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding | 0 | 0 |
Exchangeable stock, no par value: 60,000 shares authorized; 5,482 and 6,227 issued and outstanding | 0 | 0 |
Special voting stock, $0.000005 par value: 60,000 shares authorized; 5,482 and 6,227 issued and outstanding | 0 | 0 |
Common stock, $0.005 par value: 400,000 shares authorized; 124,717 and 124,122 issued and outstanding | 624 | 621 |
Additional paid-in capital | 334,201 | 355,541 |
Retained earnings | 1,786,147 | 1,820,637 |
Accumulated other comprehensive loss | (285,185) | (224,581) |
Total stockholders' equity | 1,835,787 | 1,952,218 |
Total liabilities and stockholders' equity | $ 3,201,786 | $ 3,281,354 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | May 03, 2020 | Feb. 02, 2020 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Undesignated preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Undesignated preferred stock, shares issued (in shares) | 0 | 0 |
Undesignated preferred stock, shares outstanding (in shares) | 0 | 0 |
Exchangeable stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Exchangeable stock, shares issued (in shares) | 5,482,000 | 6,227,000 |
Exchangeable stock, shares outstanding (in shares) | 5,482,000 | 6,227,000 |
Special voting stock, par value (in dollars per share) | $ 0.000005 | $ 0.000005 |
Special voting stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Special voting stock, shares issued (in shares) | 5,482,000 | 6,227,000 |
Special voting stock, shares outstanding (in shares) | 5,482,000 | 6,227,000 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 124,717,000 | 124,122,000 |
Common stock, shares outstanding (in shares) | 124,717,000 | 124,122,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 03, 2020 | May 05, 2019 | |
Income Statement [Abstract] | ||
Net revenue | $ 651,962 | $ 782,315 |
Cost of goods sold | 317,560 | 360,595 |
Gross profit | 334,402 | 421,720 |
Selling, general and administrative expenses | 301,651 | 292,908 |
Income from operations | 32,751 | 128,812 |
Other income (expense), net | 1,174 | 2,379 |
Income before income tax expense | 33,925 | 131,191 |
Income tax expense | 5,293 | 34,588 |
Net income | 28,632 | 96,603 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (60,604) | (15,723) |
Comprehensive (loss) income | $ (31,972) | $ 80,880 |
Basic earnings per share (in dollars per share) | $ 0.22 | $ 0.74 |
Diluted earnings per share (in dollars per share) | $ 0.22 | $ 0.74 |
Basic weighted-average number of shares outstanding (in shares) | 130,251 | 130,694 |
Diluted weighted-average number of shares outstanding (in shares) | 130,803 | 131,337 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Exchangeable Stock | Special Voting Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Feb. 03, 2019 | 9,332 | 9,332 | 121,600 | ||||
Beginning balance at Feb. 03, 2019 | $ 1,445,975 | $ 0 | $ 608 | $ 315,285 | $ 1,346,890 | $ (216,808) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 96,603 | 96,603 | |||||
Foreign currency translation adjustment | (15,723) | (15,723) | |||||
Common stock issued upon exchange of exchangeable shares (in shares) | (1,951) | (1,951) | 1,951 | ||||
Common stock issued upon exchange of exchangeable shares | $ 10 | (10) | |||||
Stock-based compensation expense | 10,157 | 10,157 | |||||
Common stock issued upon settlement of stock-based compensation (in shares) | 464 | ||||||
Common stock issued upon settlement of stock-based compensation | 12,177 | $ 2 | 12,175 | ||||
Shares withheld related to net share settlement of stock-based compensation (in shares) | (115) | ||||||
Shares withheld related to net share settlement of stock-based compensation | $ (18,939) | $ (1) | (18,938) | ||||
Repurchase of common stock (in shares) | (1,000) | (1,000) | |||||
Repurchase of common stock | $ (163,530) | $ (4) | (1,465) | (162,061) | |||
Ending balance (in shares) at May. 05, 2019 | 7,381 | 7,381 | 122,900 | ||||
Ending balance at May. 05, 2019 | 1,366,720 | $ 0 | $ 615 | 317,204 | 1,281,432 | (232,531) | |
Beginning balance (in shares) at Feb. 02, 2020 | 6,227 | 6,227 | 124,122 | ||||
Beginning balance at Feb. 02, 2020 | 1,952,218 | $ 0 | $ 621 | 355,541 | 1,820,637 | (224,581) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 28,632 | 28,632 | |||||
Foreign currency translation adjustment | (60,604) | (60,604) | |||||
Common stock issued upon exchange of exchangeable shares (in shares) | (745) | (745) | 745 | ||||
Common stock issued upon exchange of exchangeable shares | $ 4 | (4) | |||||
Stock-based compensation expense | 6,128 | 6,128 | |||||
Common stock issued upon settlement of stock-based compensation (in shares) | 371 | ||||||
Common stock issued upon settlement of stock-based compensation | 3,135 | $ 2 | 3,133 | ||||
Shares withheld related to net share settlement of stock-based compensation (in shares) | (152) | ||||||
Shares withheld related to net share settlement of stock-based compensation | $ (30,059) | $ (1) | (30,058) | ||||
Repurchase of common stock (in shares) | (400) | (369) | |||||
Repurchase of common stock | $ (63,663) | $ (2) | (539) | (63,122) | |||
Ending balance (in shares) at May. 03, 2020 | 5,482 | 5,482 | 124,717 | ||||
Ending balance at May. 03, 2020 | $ 1,835,787 | $ 0 | $ 624 | $ 334,201 | $ 1,786,147 | $ (285,185) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2020 | May 05, 2019 | |
Cash flows from operating activities | ||
Net income | $ 28,632 | $ 96,603 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 43,532 | 32,823 |
Stock-based compensation expense | 6,128 | 10,157 |
Settlement of derivatives not designated in a hedging relationship | (5,669) | (4,983) |
Changes in operating assets and liabilities: | ||
Inventories | (122,810) | (42,856) |
Prepaid and receivable income taxes | (4,157) | (32,816) |
Other prepaid expenses and other current and non-current assets | (53,358) | (16,164) |
Accounts payable | 2,222 | (5,420) |
Accrued inventory liabilities | 4,016 | (6,894) |
Accrued compensation and related expenses | (60,137) | (32,498) |
Current and non-current income taxes payable | 3,711 | (60,533) |
Unredeemed gift card liability | (13,640) | (13,641) |
Right-of-use lease assets and current and non-current lease liabilities | (16,868) | 8,185 |
Other current and non-current liabilities | 67,155 | 5,234 |
Net cash used in operating activities | (121,243) | (62,803) |
Cash flows from investing activities | ||
Purchase of property and equipment | (52,101) | (68,434) |
Settlement of net investment hedges | 6,475 | 4,657 |
Other investing activities | 0 | (131) |
Net cash used in investing activities | (45,626) | (63,908) |
Cash flows from financing activities | ||
Proceeds from settlement of stock-based compensation | 3,135 | 12,177 |
Taxes paid related to net share settlement of stock-based compensation | (30,059) | (18,939) |
Repurchase of common stock | (63,663) | (163,530) |
Net cash used in financing activities | (90,587) | (170,292) |
Effect of exchange rate changes on cash and cash equivalents | (13,043) | (8,076) |
Decrease in cash and cash equivalents | (270,499) | (305,079) |
Cash and cash equivalents, beginning of period | 1,093,505 | 881,320 |
Cash and cash equivalents, end of period | $ 823,006 | $ 576,241 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
May 03, 2020 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of operations lululemon athletica inc., a Delaware corporation ("lululemon" and, together with its subsidiaries unless the context otherwise requires, the "Company") is engaged in the design, distribution, and retail of healthy lifestyle inspired athletic apparel and accessories. The Company primarily conducts its business through company-operated stores and direct to consumer through e-commerce. It also generates net revenue from outlets, sales from temporary locations, sales to wholesale accounts, license and supply arrangements, and warehouse sales. The Company operates stores in the United States, Canada, the People's Republic of China ("PRC"), Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. There were 489 and 491 company-operated stores in operation as of May 3, 2020 and February 2, 2020 , respectively. COVID-19 Pandemic The outbreak of a novel strain of coronavirus ("COVID-19") was declared a global pandemic by the World Health Organization in March 2020. In line with recommendations by public health officials and in accordance with governmental authority orders, the Company took actions to close the majority of its retail locations and to reduce operating hours. In February 2020, the Company temporarily closed all of its retail locations in Mainland China. All of these locations have since reopened. In March 2020, the Company temporarily closed all of its retail locations in North America, Europe, and certain countries in Asia Pacific. Its distribution centers in Columbus, Ohio and Sumner, Washington were temporarily closed for one and two weeks, respectively, during the first quarter of fiscal 2020 due to COVID-19. Subsequent to May 3, 2020 , the Company began reopening stores in certain markets in accordance with local government and public health authority guidelines. These stores are operating with precautionary measures in place such as reduced operating hours and maximum occupancy levels. As of June 10, 2020 , 295 of its company-operated stores were open. As of June 10, 2020 , all of its distribution centers were open. In response to COVID-19, various government programs have been announced to provide financial relief for affected businesses. The most significant relief measures which the Company qualifies for are the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in the United States, and the Canada Emergency Wage Subsidy ("CEWS") under the COVID-19 Economic Response Plan in Canada. During the first quarter of fiscal 2020 , the Company recognized payroll subsidies totaling $14.3 million under these wage subsidy programs and similar plans in other jurisdictions. These subsidies were recorded as a reduction in the associated wage costs which the Company incurred, and were recognized in selling, general and administrative expenses. The Company also qualifies for and has deferred certain corporate income tax payments and employer payroll tax payments. The most significant is the deferral of $56.8 million of Canadian corporate income tax payments which would otherwise have been paid during the first quarter of fiscal 2020 to the third quarter of fiscal 2020. The Financial Accounting Standards Board ("FASB") staff issued guidance in April 2020 in relation to accounting for lease concessions made in connection with the effects of COVID-19. In accordance with this guidance, the Company has elected to treat COVID-19-related lease concessions as variable lease payments. The Company is actively negotiating commercially reasonable lease concessions. No significant lease concessions have yet been confirmed. The temporary store closures as a result of COVID-19 and associated reduction in operating income during the first quarter of fiscal 2020 are considered to be an indicator of impairment and the Company performed an assessment of recoverability for the long-lived assets and right-of-use assets associated with its closed retail locations. The Company recognized an insignificant impairment charge as a result of this analysis. Inventory is valued at the lower of cost and net realizable value. The Company periodically reviews its inventories and makes provisions as necessary to appropriately value goods that are obsolete, have quality issues, or are damaged. The amount of the provision is equal to the difference between the cost of the inventory and its net realizable value based upon assumptions about product quality, damages, future demand, selling prices, and market conditions. The Company did not recognize any significant additional inventory provisions in the first quarter of fiscal 2020 as a result of this analysis. Revenue is presented net of an allowance for expected returns, which is estimated based on historic return rates, trends, and future expectations. In light of the store closures, the Company has extended its return policy and the increase in the sales return allowances reflects an anticipated delay in returns as a result of retail location closures. The COVID-19 pandemic has materially impacted the Company's statement of operations. The extent to which COVID-19 continues to impacts the Company's results and financial position will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and the actions taken to contain it or treat its impact. Continued proliferation of the virus, or resurgence, may result in further or prolonged closures of its retail locations and distribution centers, reduce operating hours, interrupt the Company's supply chain, cause changes in guest behavior, and reduce discretionary spending. Such factors could result in the impairment of long-lived assets and right-of-use assets and the need for an increased provision against the carrying value of the Company's inventories. Basis of presentation The unaudited interim consolidated financial statements as of May 3, 2020 and for the quarters ended May 3, 2020 and May 5, 2019 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of February 2, 2020 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended February 2, 2020 , which are included in Item 8 in the Company's fiscal 2019 Annual Report on Form 10-K filed with the SEC on March 26, 2020 . These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2019 Annual Report on Form 10-K. Except as disclosed in Note 2 pertaining to the adoption of new accounting pronouncements, there have been no significant changes to the Company's significant accounting policies as described in the Company's fiscal 2019 Annual Report on Form 10-K. The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2020 will end on January 31, 2021 and will be a 52-week year. Fiscal 2019 was a 52-week year. The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased net revenue during the holiday season. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
May 03, 2020 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting pronouncements In June 2016, the FASB issued guidance on ASC 326 "Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments". This guidance changes the impairment model for most financial assets and requires the use of a forward-looking expected loss model rather than incurred losses for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted this update during the first quarter of fiscal 2020 and it did not have a material impact on the Company's consolidated financial statements. Recently issued accounting pronouncements In December 2019, the FASB issued guidance on ASC 740, "Income Taxes" . The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application and simplify GAAP for other areas of this topic by clarifying and amending existing guidance. This guidance is effective for the Company beginning in its first quarter of fiscal 2021 and early adoption is permitted. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements but does not believe it will have a material impact. In March 2020, the FASB released guidance on ASC 848, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting" . This update provides optional expedients and exceptions to the current guidance on contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements but does not believe it will have a material impact. |
CREDIT FACILITIES
CREDIT FACILITIES | 3 Months Ended |
May 03, 2020 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | CREDIT FACILITIES North America revolving credit facility On June 6, 2018, the Company entered into Amendment No. 1 to its credit agreement. This amended the credit agreement to provide for (i) an increase in the aggregate commitments under the unsecured five -year revolving credit facility to $400.0 million , with an increase of the sub-limits for the issuance of letters of credit and extensions of swing line loans to $50.0 million for each, (ii) an increase in the option, subject to certain conditions as set forth in the credit agreement, to request increases in commitments under the revolving facility from $400.0 million to $600.0 million , and (iii) an extension in the maturity of the revolving facility from December 15, 2021 to June 6, 2023. In addition, this amendment decreased the applicable margins for LIBOR loans from 1.00% - 1.75% to 1.00% - 1.50% and for alternate base rate loans from 0.00% - 0.75% to 0.00% - 0.50% , reduced the commitment fee on average daily unused amounts under the revolving facility from 0.125% - 0.200% to 0.10% - 0.20% , and reduced fees for unused letters of credit from 1.00% - 1.75% to 1.00% - 1.50% . The Company is required to follow certain covenants. As of May 3, 2020 , the Company was in compliance with these covenants. The Company had no borrowings outstanding under this credit facility as of May 3, 2020 and February 2, 2020 . As of May 3, 2020 , the Company had letters of credit of $1.8 million outstanding. Mainland China revolving credit facility In December 2019, the Company entered into an uncommitted and unsecured 130.0 million Chinese Yuan revolving credit facility. The terms are reviewed on an annual basis. The facility includes a revolving loan of up to 100.0 million Chinese Yuan as well as a financial bank guarantee facility of up to 30.0 million Chinese Yuan, or its equivalent in another currency. In U.S. dollars, the uncommitted and unsecured revolving credit facility is equivalent to $18.4 million , the revolving loan is equivalent of up to $14.2 million , and the financial bank guarantee facility is equivalent of up to $4.2 million . Loans are available in Chinese Yuan for a period not to exceed 12 months , and interest accrues on them at a rate equal to 105% of the applicable PBOC Benchmark Lending Rate. Guarantees have a commission equal to 1% per annum of the outstanding amount. The Company is required to follow certain covenants. As of May 3, 2020 , the Company was in compliance with these covenants. As of May 3, 2020 , there were immaterial borrowings outstanding under this credit facility. |
STOCK-BASED COMPENSATION AND BE
STOCK-BASED COMPENSATION AND BENEFIT PLANS | 3 Months Ended |
May 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND BENEFIT PLANS | STOCK-BASED COMPENSATION AND BENEFIT PLANS Stock-based compensation plans The Company's eligible employees participate in various stock-based compensation plans, which are provided by the Company directly. Stock-based compensation expense charged to income for the plans was $6.6 million and $11.0 million for the quarters ended May 3, 2020 and May 5, 2019 , respectively. Total unrecognized compensation cost for all stock-based compensation plans was $89.9 million at May 3, 2020 , which is expected to be recognized over a weighted-average period of 2.4 years . A summary of the balances of the Company's stock-based compensation plans as of May 3, 2020 , and changes during the first quarter then ended, is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Restricted Stock Units (Liability Accounting) Number Weighted-Average Exercise Price Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Fair Value (In thousands, except per share amounts) Balance at February 2, 2020 776 $ 113.41 238 $ 103.52 7 $ 175.82 333 $ 108.44 29 $ 239.39 Granted 214 188.84 137 115.58 — — 112 189.30 — — Exercised/released 42 75.26 171 63.03 — — 159 86.02 — — Forfeited/expired — — — — — — 1 137.74 — — Balance at May 3, 2020 948 $ 132.05 204 $ 145.55 7 $ 175.82 285 $ 152.27 29 $ 218.69 Exercisable at May 3, 2020 270 $ 96.67 The grant date fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model. The assumptions used to calculate the fair value of the options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience. The expected term of the options is based upon the historical experience of similar awards, giving consideration to expectations of future employee behavior. Expected volatility is based upon the historical volatility of the Company's common stock for the period corresponding with the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve for the period corresponding with the expected term of the options. The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted during the first quarter of fiscal 2020 : Quarter Ended Expected term 3.75 years Expected volatility 39.62 % Risk-free interest rate 0.34 % Dividend yield — % The Company's performance-based restricted stock units are awarded to eligible employees and entitle the grantee to receive a maximum of two shares of common stock per performance-based restricted stock unit if the Company achieves specified performance goals and the grantee remains employed during the vesting period. The fair value of performance-based restricted stock units is based on the closing price of the Company's common stock on the award date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved. The grant date fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the award date. Restricted stock units that are settled in cash or common stock at the election of the employee are remeasured to fair value at the end of each reporting period until settlement. This fair value is based on the closing price of the Company's common stock on the last business day before each period end. Employee share purchase plan The Company's board of directors and stockholders approved the Company's Employee Share Purchase Plan ("ESPP") in September 2007. Contributions are made by eligible employees, subject to certain limits defined in the ESPP, and the Company matches one-third of the contribution. The maximum number of shares authorized to be purchased under the ESPP is 6.0 million shares. All shares purchased under the ESPP are purchased in the open market. During the quarter ended May 3, 2020 , there were 22.1 thousand shares purchased. Defined contribution pension plans The Company offers defined contribution pension plans to its eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. The Company matches 50% to 75% of the contribution depending on the participant's length of service, and the contribution is subject to a two year vesting period. The Company's net expense for the defined contribution plans was $2.3 million and $2.3 million in the first quarter of fiscal 2020 and fiscal 2019 , respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
May 03, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: • Level 1 - defined as observable inputs such as quoted prices in active markets; • Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. As of May 3, 2020 and February 2, 2020 , the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis: May 3, 2020 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 476,607 $ 476,607 $ — $ — Cash and cash equivalents Term deposits 132,222 — 132,222 — Cash and cash equivalents Forward currency contract assets 23,511 — 23,511 — Other prepaid expenses and other current assets Forward currency contract liabilities 23,766 — 23,766 — Other current liabilities February 2, 2020 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 610,800 $ 610,800 $ — $ — Cash and cash equivalents Term deposits 203,360 — 203,360 — Cash and cash equivalents Forward currency contract assets 1,735 — 1,735 — Other prepaid expenses and other current assets Forward currency contract liabilities 1,920 — 1,920 — Other current liabilities The Company records accounts receivable, accounts payable, and accrued liabilities at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities. The Company has short-term, highly liquid investments classified as cash equivalents, which are invested in money market funds, Treasury bills, and term deposits. The Company records cash equivalents at their original purchase prices plus interest that has accrued at the stated rate. The fair values of the forward currency contract assets and liabilities are determined using observable Level 2 inputs, including foreign currency spot exchange rates, forward pricing curves, and interest rates. The fair values consider the credit risk of the Company and its counterparties. The Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. However, the Company records all derivatives on its consolidated balance sheets at fair value and does not offset derivative assets and liabilities. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
May 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Foreign exchange risk The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative financial instruments to manage its exposure to certain of these foreign currency exchange rate risks. The Company does not enter into derivative contracts for speculative or trading purposes. The Company currently hedges against changes in the Canadian dollar to U.S. dollar exchange rate and changes in the Chinese Yuan to U.S. dollar exchange rate using forward currency contracts. Net investment hedges The Company is exposed to foreign exchange gains and losses which arise on translation of its foreign subsidiaries' balance sheets into U.S. dollars. These gains and losses are recorded as a foreign currency translation adjustment in accumulated other comprehensive income or loss within stockholders' equity. The Company holds a significant portion of its assets in Canada and enters into forward currency contracts designed to hedge a portion of the foreign currency exposure that arises on translation of a Canadian subsidiary into U.S. dollars. These forward currency contracts are designated as net investment hedges. The effective portions of the hedges are reported in accumulated other comprehensive income or loss and will subsequently be reclassified to net earnings in the period in which the hedged investment is either sold or substantially liquidated. Hedge effectiveness is measured using a method based on changes in forward exchange rates. The Company recorded no ineffectiveness from net investment hedges during the first quarter of fiscal 2020 . The Company classifies the cash flows at settlement of its net investment hedges within investing activities in the consolidated statements of cash flows. Derivatives not designated as hedging instruments The Company is exposed to gains and losses arising from changes in foreign exchange rates associated with transactions which are undertaken by its subsidiaries in currencies other than their functional currency. Such transactions include intercompany transactions and inventory purchases. These transactions result in the recognition of certain foreign currency denominated monetary assets and liabilities which are remeasured to the quarter-end or settlement date exchange rate. The resulting foreign currency gains and losses are recorded in selling, general and administrative expenses. During the first quarter of fiscal 2020 , the Company entered into certain forward currency contracts designed to economically hedge the foreign exchange revaluation gains and losses that are recognized by its Canadian and Chinese subsidiaries on U.S. dollar denominated monetary assets and liabilities. The Company has not applied hedge accounting to these instruments and the change in fair value of these derivatives is recorded within selling, general and administrative expenses. The Company classifies the cash flows at settlement of its forward currency contracts which are not designated in hedging relationships within operating activities in the consolidated statements of cash flows. Quantitative disclosures about derivative financial instruments The Company presents its derivative assets and derivative liabilities at their gross fair values within other prepaid expenses and other current assets and other current liabilities on the consolidated balance sheets. However, the Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. As of May 3, 2020 , there were derivative assets of $23.5 million and derivative liabilities of $23.8 million subject to enforceable netting arrangements. The notional amounts and fair values of forward currency contracts were as follows: May 3, 2020 February 2, 2020 Gross Notional Assets Liabilities Gross Notional Assets Liabilities (In thousands) Derivatives designated as net investment hedges: Forward currency contracts $ 461,000 $ 23,364 $ — $ 417,000 $ 1,583 $ — Derivatives not designated in a hedging relationship: Forward currency contracts 505,000 147 23,766 460,000 152 1,920 Net derivatives recognized on consolidated balance sheets: Forward currency contracts $ 23,511 $ 23,766 $ 1,735 $ 1,920 The forward currency contracts designated as net investment hedges outstanding as of May 3, 2020 mature on different dates between May 2020 and October 2020. The forward currency contracts not designated in a hedging relationship outstanding as of May 3, 2020 mature on different dates between May 2020 and October 2020. The pre-tax gains and losses on foreign exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows: Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Gains (losses) recognized in foreign currency translation adjustment: Derivatives designated as net investment hedges $ 28,256 $ 6,764 No gains or losses have been reclassified from accumulated other comprehensive income or loss into net income for derivative financial instruments in a net investment hedging relationship, as the Company has not sold or liquidated (or substantially liquidated) its hedged subsidiary. The pre-tax net foreign exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows: Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Gains (losses) recognized in selling, general and administrative expenses: Foreign exchange gains $ 27,742 $ 5,697 Derivatives not designated in a hedging relationship (27,520 ) (6,631 ) Net foreign exchange and derivative gains (losses) $ 222 $ (934 ) Credit risk The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to the forward currency contracts. The credit risk amount is the Company's unrealized gains on its derivative instruments, based on foreign currency rates at the time of nonperformance. The Company's forward currency contracts are entered into with large, reputable financial institutions that are monitored by the Company for counterparty risk. The Company's derivative contracts contain certain credit risk-related contingent features. Under certain circumstances, including an event of default, bankruptcy, termination, and cross default under the Company's revolving credit facility, the Company may be required to make immediate payment for outstanding liabilities under its derivative contracts. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
May 03, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The details of the computation of basic and diluted earnings per share are as follows: Quarter Ended May 3, 2020 May 5, 2019 (In thousands, except per share amounts) Net income $ 28,632 $ 96,603 Basic weighted-average number of shares outstanding 130,251 130,694 Assumed conversion of dilutive stock options and awards 552 643 Diluted weighted-average number of shares outstanding 130,803 131,337 Basic earnings per share $ 0.22 $ 0.74 Diluted earnings per share $ 0.22 $ 0.74 The Company's calculation of weighted-average shares includes the common stock of the Company as well as the exchangeable shares. Exchangeable shares are the equivalent of common shares in all material respects. All classes of stock have, in effect, the same rights and share equally in undistributed net income. For the quarters ended May 3, 2020 and May 5, 2019 , 97.5 thousand and 75.7 thousand stock options and awards, respectively, were anti-dilutive to earnings per share and therefore have been excluded from the computation of diluted earnings per share. On January 31, 2019, the Company's board of directors approved a stock repurchase program for up to $500.0 million of the Company's common shares on the open market or in privately negotiated transactions. Common shares repurchased on the open market are at prevailing market prices, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. The timing and actual number of common shares to be repurchased will depend upon market conditions, eligibility to trade, and other factors, in accordance with Securities and Exchange Commission requirements. As of March 31, 2020, the Company temporarily paused its share repurchase program. As of May 3, 2020 , the remaining aggregate value of shares available to be repurchased under this program was $263.6 million . During the quarters ended May 3, 2020 and May 5, 2019 , 0.4 million and 1.0 million shares, respectively, were repurchased under the program at a total cost of $63.7 million and $163.5 million , respectively. Subsequent to May 3, 2020 , and up to June 5, 2020 , no shares were repurchased. |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION | 3 Months Ended |
May 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION | SUPPLEMENTARY FINANCIAL INFORMATION A summary of certain consolidated balance sheet accounts is as follows: May 3, February 2, (In thousands) Inventories: Finished goods $ 648,909 $ 540,580 Provision to reduce inventories to net realizable value (23,060 ) (22,067 ) $ 625,849 $ 518,513 May 3, February 2, (In thousands) Other prepaid expenses and other current assets: Other prepaid expenses $ 60,333 $ 64,568 Forward currency contract assets 23,511 1,735 Government payroll subsidy receivables 13,442 — Other current assets 10,404 4,239 $ 107,690 $ 70,542 Property and equipment, net: Land $ 67,545 $ 71,829 Buildings 28,984 30,187 Leasehold improvements 490,010 489,202 Furniture and fixtures 108,786 109,533 Computer hardware 95,250 95,399 Computer software 339,827 336,768 Equipment and vehicles 19,302 19,521 Work in progress 51,445 40,930 Property and equipment, gross 1,201,149 1,193,369 Accumulated depreciation (541,884 ) (521,676 ) $ 659,265 $ 671,693 Other non-current assets: Cloud computing arrangement implementation costs $ 31,929 $ 24,648 Security deposits 19,949 19,901 Other 8,981 11,652 $ 60,859 $ 56,201 Other current liabilities: Accrued duty, freight, and other operating expenses $ 76,679 $ 59,403 Sales return allowances 33,962 12,897 Deferred revenue 27,775 12,705 Forward currency contract liabilities 23,766 1,920 Accrued capital expenditures 10,747 5,457 Sales tax collected 9,485 17,370 Accrued rent 5,129 8,356 Other 7,037 6,935 $ 194,580 $ 125,043 |
SEGMENTED INFORMATION AND DISAG
SEGMENTED INFORMATION AND DISAGGREGATED NET REVENUE | 3 Months Ended |
May 03, 2020 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION AND DISAGGREGATED NET REVENUE | SEGMENTED INFORMATION AND DISAGGREGATED NET REVENUE The Company applies ASC Topic 280, Segment Reporting ("ASC 280"), in determining reportable segments for its financial statement disclosure. The Company reports segments based on the financial information it uses in managing its business. The Company's reportable segments are comprised of company-operated stores and direct to consumer. Direct to consumer represents sales from the Company's e-commerce websites and mobile apps. Outlets, temporary locations, sales to wholesale accounts, license and supply arrangements, and warehouse sale net revenue have been combined into other. During the first quarter of fiscal 2020, the Company reviewed its segment and general corporate expenses and determined certain costs that are more appropriately classified in different categories. Accordingly, comparative figures have been reclassified to conform to the financial presentation adopted for the current year. Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Net revenue: Company-operated stores $ 259,970 $ 506,422 Direct to consumer 352,039 209,844 Other 39,953 66,049 $ 651,962 $ 782,315 Segmented income (loss) from operations: Company-operated stores $ (30,154 ) $ 120,911 Direct to consumer 156,947 79,337 Other (269 ) 12,623 126,524 212,871 General corporate expense 93,773 84,059 Income from operations 32,751 128,812 Other income (expense), net 1,174 2,379 Income before income tax expense $ 33,925 $ 131,191 Capital expenditures: Company-operated stores $ 33,819 $ 38,710 Direct to consumer 2,298 6,226 Corporate and other 15,984 23,498 $ 52,101 $ 68,434 Depreciation and amortization: Company-operated stores $ 25,628 $ 21,060 Direct to consumer 2,684 2,462 Corporate and other 15,220 9,301 $ 43,532 $ 32,823 The following table disaggregates the Company's net revenue by geographic area. Quarter Ended May 3, 2020 May 5, 2019 (In thousands) United States $ 459,352 $ 553,647 Canada 99,497 123,645 Outside of North America 93,113 105,023 $ 651,962 $ 782,315 The following table disaggregates the Company's net revenue by category. Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Women's product $ 480,313 $ 562,983 Men's product 129,129 170,219 Other categories 42,520 49,113 $ 651,962 $ 782,315 |
LEGAL PROCEEDINGS AND OTHER CON
LEGAL PROCEEDINGS AND OTHER CONTINGENCIES | 3 Months Ended |
May 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND OTHER CONTINGENCIES | LEGAL PROCEEDINGS AND OTHER CONTINGENCIES In addition to the legal proceedings described below, the Company is, from time to time, involved in routine legal matters, and audits and inspections by governmental agencies and other third parties which are incidental to the conduct of its business. This includes legal matters such as initiation and defense of proceedings to protect intellectual property rights, personal injury claims, product liability claims, employment claims, and similar matters. The Company believes the ultimate resolution of any such legal proceedings, audits, and inspections will not have a material adverse effect on its consolidated balance sheets, results of operations or cash flows. On October 9, 2015, certain current and former hourly employees of the Company filed a class action lawsuit in the Supreme Court of New York entitled Rebecca Gathmann-Landini et al v. lululemon USA inc. On December 2, 2015, the case was moved to the United States District Court for the Eastern District of New York. The lawsuit alleges that the Company violated various New York labor codes by failing to pay all earned wages, including overtime compensation. The plaintiffs are seeking an unspecified amount of damages. The Company intends to vigorously defend this matter. On November 21, 2018, plaintiff David Shabbouei filed in the Delaware Court of Chancery a derivative lawsuit on behalf of the Company against certain of the Company's current and former directors and officers, captioned David Shabbouei v. Laurent Potdevin, et al., 2018-0847-JRS. Plaintiff claims that the defendants breached their fiduciary duties to the Company by allegedly failing to address alleged sexual harassment, gender discrimination, and related conduct at the Company. Plaintiff also claims that the defendants breached their fiduciary duties to the Company and wasted corporate assets with respect to the separation agreement entered into by the Company and Laurent Potdevin in connection with his departure from the Company in February 2018. Plaintiff also further brings an unjust enrichment claim against Mr. Potdevin with respect to the separation agreement. Plaintiff seeks unspecified money damages for the Company for the defendants' alleged breaches of fiduciary duty, waste and unjust enrichment, disgorgement of all profits, benefits and other compensation Mr. Potdevin received as a result of defendants' alleged conduct for the Company, an order directing the Company to implement corporate governance and internal procedures, and an award of plaintiff's attorneys' fees, costs and expenses. On April 2, 2020, the Court granted the motion of the defendants and the Company to dismiss the lawsuit with prejudice. On March 23, 2020, a former retail employee filed a representative action in the Los Angeles Superior Court alleging violation of the Private Attorney General Act ("PAGA") based on purported California labor code violations including failure to pay wages, failure to pay overtime, failure to provide accurate itemized statements, and failure to provide meal and rest periods. The plaintiff is seeking to recover civil penalties under PAGA. The Company intends to vigorously defend this matter. On April 9, 2020, Aliign Activation Wear, LLC filed a lawsuit in the United States District Court for the Central District of California alleging federal trademark infringement, false designation of original and unfair competition. The plaintiff is seeking injunctive relief, monetary damages and declaratory relief. The Company intends to vigorously defend this matter. |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
May 03, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The unaudited interim consolidated financial statements as of May 3, 2020 and for the quarters ended May 3, 2020 and May 5, 2019 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of February 2, 2020 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended February 2, 2020 , which are included in Item 8 in the Company's fiscal 2019 Annual Report on Form 10-K filed with the SEC on March 26, 2020 . These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2019 |
Fiscal period | The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2020 will end on January 31, 2021 and will be a 52-week year. Fiscal 2019 was a 52-week year. The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased net revenue during the holiday season. |
Reclassification | Certain comparative figures have been reclassified to conform to the financial presentation adopted for the current year. |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In June 2016, the FASB issued guidance on ASC 326 "Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments". This guidance changes the impairment model for most financial assets and requires the use of a forward-looking expected loss model rather than incurred losses for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted this update during the first quarter of fiscal 2020 and it did not have a material impact on the Company's consolidated financial statements. Recently issued accounting pronouncements In December 2019, the FASB issued guidance on ASC 740, "Income Taxes" . The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application and simplify GAAP for other areas of this topic by clarifying and amending existing guidance. This guidance is effective for the Company beginning in its first quarter of fiscal 2021 and early adoption is permitted. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements but does not believe it will have a material impact. In March 2020, the FASB released guidance on ASC 848, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting" . This update provides optional expedients and exceptions to the current guidance on contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements but does not believe it will have a material impact. |
Fair value measurement | The Company records accounts receivable, accounts payable, and accrued liabilities at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities. The Company has short-term, highly liquid investments classified as cash equivalents, which are invested in money market funds, Treasury bills, and term deposits. The Company records cash equivalents at their original purchase prices plus interest that has accrued at the stated rate. The fair values of the forward currency contract assets and liabilities are determined using observable Level 2 inputs, including foreign currency spot exchange rates, forward pricing curves, and interest rates. The fair values consider the credit risk of the Company and its counterparties. The Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. However, the Company records all derivatives on its consolidated balance sheets at fair value and does not offset derivative assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: • Level 1 - defined as observable inputs such as quoted prices in active markets; • Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND BENEFIT PLANS (Tables) | 3 Months Ended |
May 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity | A summary of the balances of the Company's stock-based compensation plans as of May 3, 2020 , and changes during the first quarter then ended, is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Restricted Stock Units (Liability Accounting) Number Weighted-Average Exercise Price Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Fair Value (In thousands, except per share amounts) Balance at February 2, 2020 776 $ 113.41 238 $ 103.52 7 $ 175.82 333 $ 108.44 29 $ 239.39 Granted 214 188.84 137 115.58 — — 112 189.30 — — Exercised/released 42 75.26 171 63.03 — — 159 86.02 — — Forfeited/expired — — — — — — 1 137.74 — — Balance at May 3, 2020 948 $ 132.05 204 $ 145.55 7 $ 175.82 285 $ 152.27 29 $ 218.69 Exercisable at May 3, 2020 270 $ 96.67 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted during the first quarter of fiscal 2020 : Quarter Ended Expected term 3.75 years Expected volatility 39.62 % Risk-free interest rate 0.34 % Dividend yield — % |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
May 03, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | As of May 3, 2020 and February 2, 2020 , the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis: May 3, 2020 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 476,607 $ 476,607 $ — $ — Cash and cash equivalents Term deposits 132,222 — 132,222 — Cash and cash equivalents Forward currency contract assets 23,511 — 23,511 — Other prepaid expenses and other current assets Forward currency contract liabilities 23,766 — 23,766 — Other current liabilities February 2, 2020 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 610,800 $ 610,800 $ — $ — Cash and cash equivalents Term deposits 203,360 — 203,360 — Cash and cash equivalents Forward currency contract assets 1,735 — 1,735 — Other prepaid expenses and other current assets Forward currency contract liabilities 1,920 — 1,920 — Other current liabilities |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
May 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Forward Currency Contracts, Statement of Financial Position | The notional amounts and fair values of forward currency contracts were as follows: May 3, 2020 February 2, 2020 Gross Notional Assets Liabilities Gross Notional Assets Liabilities (In thousands) Derivatives designated as net investment hedges: Forward currency contracts $ 461,000 $ 23,364 $ — $ 417,000 $ 1,583 $ — Derivatives not designated in a hedging relationship: Forward currency contracts 505,000 147 23,766 460,000 152 1,920 Net derivatives recognized on consolidated balance sheets: Forward currency contracts $ 23,511 $ 23,766 $ 1,735 $ 1,920 |
Schedule of Pre-tax Gains (Losses) on Derivatives in Accumulated Other Comprehensive Income (Loss) | The pre-tax gains and losses on foreign exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows: Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Gains (losses) recognized in foreign currency translation adjustment: Derivatives designated as net investment hedges $ 28,256 $ 6,764 |
Schedule of Derivative Gains and Losses | The pre-tax net foreign exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows: Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Gains (losses) recognized in selling, general and administrative expenses: Foreign exchange gains $ 27,742 $ 5,697 Derivatives not designated in a hedging relationship (27,520 ) (6,631 ) Net foreign exchange and derivative gains (losses) $ 222 $ (934 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
May 03, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earning Per Share | The details of the computation of basic and diluted earnings per share are as follows: Quarter Ended May 3, 2020 May 5, 2019 (In thousands, except per share amounts) Net income $ 28,632 $ 96,603 Basic weighted-average number of shares outstanding 130,251 130,694 Assumed conversion of dilutive stock options and awards 552 643 Diluted weighted-average number of shares outstanding 130,803 131,337 Basic earnings per share $ 0.22 $ 0.74 Diluted earnings per share $ 0.22 $ 0.74 |
SUPPLEMENTARY FINANCIAL INFOR_2
SUPPLEMENTARY FINANCIAL INFORMATION (Tables) | 3 Months Ended |
May 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Certain Balance Sheet Accounts | A summary of certain consolidated balance sheet accounts is as follows: May 3, February 2, (In thousands) Inventories: Finished goods $ 648,909 $ 540,580 Provision to reduce inventories to net realizable value (23,060 ) (22,067 ) $ 625,849 $ 518,513 May 3, February 2, (In thousands) Other prepaid expenses and other current assets: Other prepaid expenses $ 60,333 $ 64,568 Forward currency contract assets 23,511 1,735 Government payroll subsidy receivables 13,442 — Other current assets 10,404 4,239 $ 107,690 $ 70,542 Property and equipment, net: Land $ 67,545 $ 71,829 Buildings 28,984 30,187 Leasehold improvements 490,010 489,202 Furniture and fixtures 108,786 109,533 Computer hardware 95,250 95,399 Computer software 339,827 336,768 Equipment and vehicles 19,302 19,521 Work in progress 51,445 40,930 Property and equipment, gross 1,201,149 1,193,369 Accumulated depreciation (541,884 ) (521,676 ) $ 659,265 $ 671,693 Other non-current assets: Cloud computing arrangement implementation costs $ 31,929 $ 24,648 Security deposits 19,949 19,901 Other 8,981 11,652 $ 60,859 $ 56,201 Other current liabilities: Accrued duty, freight, and other operating expenses $ 76,679 $ 59,403 Sales return allowances 33,962 12,897 Deferred revenue 27,775 12,705 Forward currency contract liabilities 23,766 1,920 Accrued capital expenditures 10,747 5,457 Sales tax collected 9,485 17,370 Accrued rent 5,129 8,356 Other 7,037 6,935 $ 194,580 $ 125,043 |
SEGMENTED INFORMATION AND DIS_2
SEGMENTED INFORMATION AND DISAGGREGATED NET REVENUE (Tables) | 3 Months Ended |
May 03, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Net revenue: Company-operated stores $ 259,970 $ 506,422 Direct to consumer 352,039 209,844 Other 39,953 66,049 $ 651,962 $ 782,315 Segmented income (loss) from operations: Company-operated stores $ (30,154 ) $ 120,911 Direct to consumer 156,947 79,337 Other (269 ) 12,623 126,524 212,871 General corporate expense 93,773 84,059 Income from operations 32,751 128,812 Other income (expense), net 1,174 2,379 Income before income tax expense $ 33,925 $ 131,191 Capital expenditures: Company-operated stores $ 33,819 $ 38,710 Direct to consumer 2,298 6,226 Corporate and other 15,984 23,498 $ 52,101 $ 68,434 Depreciation and amortization: Company-operated stores $ 25,628 $ 21,060 Direct to consumer 2,684 2,462 Corporate and other 15,220 9,301 $ 43,532 $ 32,823 The following table disaggregates the Company's net revenue by geographic area. Quarter Ended May 3, 2020 May 5, 2019 (In thousands) United States $ 459,352 $ 553,647 Canada 99,497 123,645 Outside of North America 93,113 105,023 $ 651,962 $ 782,315 The following table disaggregates the Company's net revenue by category. Quarter Ended May 3, 2020 May 5, 2019 (In thousands) Women's product $ 480,313 $ 562,983 Men's product 129,129 170,219 Other categories 42,520 49,113 $ 651,962 $ 782,315 |
NATURE OF OPERATIONS AND BASI_3
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2020 | May 03, 2020USD ($)store | Jun. 10, 2020store | Feb. 02, 2020store | |
Income Tax Contingency [Line Items] | ||||
Number of company-operated stores in operation | store | 489 | 491 | ||
Government payroll subsidy recognized | $ | $ 14.3 | |||
Canada Revenue Agency | ||||
Income Tax Contingency [Line Items] | ||||
Deferred corporate income tax | $ | $ 56.8 | |||
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Period of closure of distribution centers | 7 days | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Period of closure of distribution centers | 14 days | |||
Subsequent Event | ||||
Income Tax Contingency [Line Items] | ||||
Number of company-operated stores in operation | store | 295 |
CREDIT FACILITIES (Details)
CREDIT FACILITIES (Details) | Jun. 06, 2018USD ($) | Dec. 31, 2019 | May 03, 2020USD ($) | Feb. 02, 2020USD ($) | Feb. 02, 2020CNY (Â¥) |
Line of Credit Facility [Line Items] | |||||
Short-term debt | $ 0 | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, term | 12 months | ||||
Maximum borrowing capacity | $ 18,400,000 | ¥ 130,000,000 | |||
Interest accrued rate as percentage of PBOC benchmark lending rate | 105.00% | ||||
Guarantees commission rate per annum of outstanding amount | 1.00% | 1.00% | |||
Revolving Loan | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 14,200,000 | ¥ 100,000,000 | |||
Financial Bank Guarantee Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 4,200,000 | ¥ 30,000,000 | |||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Long-term line of credit | $ 0 | $ 0 | |||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Maximum borrowing capacity | $ 400,000,000 | $ 600,000,000 | |||
Line of Credit | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 50,000,000 | ||||
Long-term line of credit | $ 1,800,000 | ||||
Line of Credit | Swing Line Loan | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 50,000,000 | ||||
Line of Credit | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.125% | 0.10% | |||
Line of Credit | Minimum | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 1.00% | 1.00% | |||
Line of Credit | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.20% | 0.20% | |||
Line of Credit | Maximum | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 1.75% | 1.50% | |||
Line of Credit | LIBOR | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.00% | 1.00% | |||
Line of Credit | LIBOR | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | 1.50% | |||
Line of Credit | Base Rate | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.00% | 0.00% | |||
Line of Credit | Base Rate | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% | 0.50% |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND BENEFIT PLANS - Additional Information (Detail) $ in Millions | 3 Months Ended | |
May 03, 2020USD ($)shares | May 05, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 6.6 | $ 11 |
Total unrecognized compensation cost | $ 89.9 | |
Expected weighted-average period of compensation cost | 2 years 4 months 24 days | |
Common stock per performance share unit (shares) | 2 | |
Company match contribution | 33.33% | |
Vesting period | 2 years | |
Company contributions | $ 2.3 | $ 2.3 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Participant contribution, company match percent | 50.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Participant contribution, company match percent | 75.00% | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum shares available under ESPP (shares) | shares | 6,000,000 | |
Shares purchased under ESPP (shares) | shares | 22,100 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND BENEFIT PLANS - Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity (Detail) shares in Thousands | 3 Months Ended |
May 03, 2020$ / sharesshares | |
Stock Options | |
Number of Stock Options | |
Number of Stock Options, Beginning Balance (in shares) | shares | 776 |
Number of Stock Options, Granted (in shares) | shares | 214 |
Number of Stock Options, Exercised/released (in shares) | shares | 42 |
Number of Stock Options, Forfeited/expired (in shares) | shares | 0 |
Number of Stock Options, Ending Balance (in shares) | shares | 948 |
Number of Stock Options, Exercisable at End of Period (in shares) | shares | 270 |
Weighted-Average Exercise Price of Stock Options | |
Weighted-Average Exercise Price, Options, Beginning Balance (in dollars per share) | $ / shares | $ 113.41 |
Weighted-Average Exercise Price, Options, Granted (in dollars per share) | $ / shares | 188.84 |
Weighted-Average Exercise Price, Options, Exercised/released (in dollars per share) | $ / shares | 75.26 |
Weighted-Average Exercise Price, Options, Forfeited/expired (in dollars per share) | $ / shares | 0 |
Weighted-Average Exercise Price, Options, Ending Balance (in dollars per share) | $ / shares | 132.05 |
Weighted-Average Exercise Price, Options, Exercisable (in dollars per share) | $ / shares | $ 96.67 |
Performance-Based Restricted Stock Units | |
Number of Performance-Based Restricted Stock Units and Restricted Shares | |
Number of Units/Shares, Beginning Balance (in shares) | shares | 238 |
Number of Units/Shares, Granted (in shares) | shares | 137 |
Number of Units/Shares, Exercised/released (in shares) | shares | 171 |
Number of Units/Shares, Forfeited/expired (in shares) | shares | 0 |
Number of Units/Shares, Ending Balance (in shares) | shares | 204 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 103.52 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 115.58 |
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares | 63.03 |
Weighted-Average Grant Date Fair Value, Forfeited/expired (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 145.55 |
Restricted Shares | |
Number of Performance-Based Restricted Stock Units and Restricted Shares | |
Number of Units/Shares, Beginning Balance (in shares) | shares | 7 |
Number of Units/Shares, Granted (in shares) | shares | 0 |
Number of Units/Shares, Exercised/released (in shares) | shares | 0 |
Number of Units/Shares, Forfeited/expired (in shares) | shares | 0 |
Number of Units/Shares, Ending Balance (in shares) | shares | 7 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 175.82 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited/expired (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 175.82 |
Restricted Stock Units | |
Number of Performance-Based Restricted Stock Units and Restricted Shares | |
Number of Units/Shares, Beginning Balance (in shares) | shares | 333 |
Number of Units/Shares, Granted (in shares) | shares | 112 |
Number of Units/Shares, Exercised/released (in shares) | shares | 159 |
Number of Units/Shares, Forfeited/expired (in shares) | shares | 1 |
Number of Units/Shares, Ending Balance (in shares) | shares | 285 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 108.44 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 189.30 |
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares | 86.02 |
Weighted-Average Grant Date Fair Value, Forfeited/expired (in dollars per share) | $ / shares | 137.74 |
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 152.27 |
Restricted Stock Units (Liability Accounting) | |
Number of Performance-Based Restricted Stock Units and Restricted Shares | |
Number of Units/Shares, Beginning Balance (in shares) | shares | 29 |
Number of Units/Shares, Granted (in shares) | shares | 0 |
Number of Units/Shares, Exercised/released (in shares) | shares | 0 |
Number of Units/Shares, Forfeited/expired (in shares) | shares | 0 |
Number of Units/Shares, Ending Balance (in shares) | shares | 29 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 239.39 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited/expired (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 218.69 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND BENEFIT PLANS - Fair Value Assumptions (Detail) | 3 Months Ended |
May 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Expected term | 3 years 9 months |
Expected volatility | 39.62% |
Risk-free interest rate | 0.34% |
Dividend yield | 0.00% |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) | May 03, 2020 | Feb. 02, 2020 |
Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 476,607,000 | $ 610,800,000 |
Cash and cash equivalents | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 476,607,000 | 610,800,000 |
Cash and cash equivalents | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | Term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 132,222,000 | 203,360,000 |
Cash and cash equivalents | Term deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | Term deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 132,222,000 | 203,360,000 |
Cash and cash equivalents | Term deposits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Other prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 23,511,000 | 1,735,000 |
Other prepaid expenses and other current assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 0 | 0 |
Other prepaid expenses and other current assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 23,511,000 | 1,735,000 |
Other prepaid expenses and other current assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 0 | 0 |
Other current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract liabilities | 23,766,000 | 1,920,000 |
Other current liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract liabilities | 0 | 0 |
Other current liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract liabilities | 23,766,000 | 1,920,000 |
Other current liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract liabilities | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Quantitative Disclosures about Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 03, 2020 | May 05, 2019 | Feb. 02, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivative assets subject to enforceable netting arrangements | $ 23,500 | ||
Derivative liabilities subject to enforceable netting arrangements | 23,800 | ||
Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Assets | 23,511 | $ 1,735 | |
Liabilities | 23,766 | 1,920 | |
Gains (losses) recognized in selling, general and administrative expenses: | |||
Net foreign exchange and derivative gains (losses) | 222 | $ (934) | |
Foreign Exchange Forward | Derivatives designated as net investment hedges | |||
Derivatives, Fair Value [Line Items] | |||
Gross Notional | 461,000 | 417,000 | |
Assets | 23,364 | 1,583 | |
Liabilities | 0 | 0 | |
Gains (losses) recognized in foreign currency translation adjustment: | |||
Derivatives designated as net investment hedges | 28,256 | 6,764 | |
Gains (losses) recognized in selling, general and administrative expenses: | |||
Net foreign exchange and derivative gains (losses) | 27,742 | 5,697 | |
Foreign Exchange Forward | Derivatives not designated in a hedging relationship | |||
Derivatives, Fair Value [Line Items] | |||
Gross Notional | 505,000 | 460,000 | |
Assets | 147 | 152 | |
Liabilities | 23,766 | $ 1,920 | |
Gains (losses) recognized in selling, general and administrative expenses: | |||
Net foreign exchange and derivative gains (losses) | $ (27,520) | $ (6,631) |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
May 03, 2020 | May 05, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 28,632 | $ 96,603 |
Basic weighted-average number of shares outstanding (in shares) | 130,251 | 130,694 |
Assumed conversion of dilutive stock options and awards (in shares) | 552 | 643 |
Diluted weighted-average number of shares outstanding (in shares) | 130,803 | 131,337 |
Basic earnings per share (in dollars per share) | $ 0.22 | $ 0.74 |
Diluted earnings per share (in dollars per share) | $ 0.22 | $ 0.74 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 05, 2020 | May 03, 2020 | May 05, 2019 | Jan. 31, 2019 | |
Subsequent Event [Line Items] | ||||
Anti-dilutive stock options (in shares) | 97,500 | 75,700 | ||
Aggregate amount authorized for stock repurchase (up to) | $ 500,000,000 | |||
Remaining authorized repurchase amount | $ 263,600,000 | |||
Repurchase of common stock (in shares) | 400,000 | 1,000,000 | ||
Repurchase of common stock | $ 63,663,000 | $ 163,530,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Repurchase of common stock (in shares) | 0 |
SUPPLEMENTARY FINANCIAL INFOR_3
SUPPLEMENTARY FINANCIAL INFORMATION - Summary of Certain Balance Sheet Accounts (Detail) - USD ($) $ in Thousands | May 03, 2020 | Feb. 02, 2020 |
Inventories: | ||
Finished goods | $ 648,909 | $ 540,580 |
Provision to reduce inventories to net realizable value | (23,060) | (22,067) |
Total inventories | 625,849 | 518,513 |
Other prepaid expenses and other current assets: | ||
Other prepaid expenses | 60,333 | 64,568 |
Forward currency contract assets | 23,511 | 1,735 |
Government payroll subsidy receivables | 13,442 | 0 |
Other current assets | 10,404 | 4,239 |
Other prepaid expenses and other current assets | 107,690 | 70,542 |
Property and equipment, net: | ||
Land | 67,545 | 71,829 |
Buildings | 28,984 | 30,187 |
Leasehold improvements | 490,010 | 489,202 |
Furniture and fixtures | 108,786 | 109,533 |
Computer hardware | 95,250 | 95,399 |
Computer software | 339,827 | 336,768 |
Equipment and vehicles | 19,302 | 19,521 |
Work in progress | 51,445 | 40,930 |
Property and equipment, gross | 1,201,149 | 1,193,369 |
Accumulated depreciation | (541,884) | (521,676) |
Total property and equipment | 659,265 | 671,693 |
Other non-current assets: | ||
Cloud computing arrangement implementation costs | 31,929 | 24,648 |
Security deposits | 19,949 | 19,901 |
Other | 8,981 | 11,652 |
Total other non-current assets | 60,859 | 56,201 |
Other current liabilities: | ||
Accrued duty, freight, and other operating expenses | 76,679 | 59,403 |
Sales return allowances | 33,962 | 12,897 |
Deferred revenue | 27,775 | 12,705 |
Forward currency contract liabilities | 23,766 | 1,920 |
Accrued capital expenditures | 10,747 | 5,457 |
Sales tax collected | 9,485 | 17,370 |
Accrued rent | 5,129 | 8,356 |
Other | 7,037 | 6,935 |
Total other current liabilities | $ 194,580 | $ 125,043 |
SEGMENTED INFORMATION AND DIS_3
SEGMENTED INFORMATION AND DISAGGREGATED NET REVENUE (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2020 | May 05, 2019 | |
Net revenue: | ||
Net revenue | $ 651,962 | $ 782,315 |
Segmented income (loss) from operations: | ||
Segmented income from operations | 126,524 | 212,871 |
General corporate expense | 93,773 | 84,059 |
Income from operations | 32,751 | 128,812 |
Other income (expense), net | 1,174 | 2,379 |
Income before income tax expense | 33,925 | 131,191 |
Capital expenditures: | ||
Capital expenditures | 52,101 | 68,434 |
Depreciation and amortization: | ||
Depreciation and amortization | 43,532 | 32,823 |
Women's product | ||
Net revenue: | ||
Net revenue | 480,313 | 562,983 |
Men's product | ||
Net revenue: | ||
Net revenue | 129,129 | 170,219 |
Other categories | ||
Net revenue: | ||
Net revenue | 42,520 | 49,113 |
United States | ||
Net revenue: | ||
Net revenue | 459,352 | 553,647 |
Canada | ||
Net revenue: | ||
Net revenue | 99,497 | 123,645 |
Outside of North America | ||
Net revenue: | ||
Net revenue | 93,113 | 105,023 |
Company-operated stores | ||
Net revenue: | ||
Net revenue | 259,970 | 506,422 |
Segmented income (loss) from operations: | ||
Segmented income from operations | (30,154) | 120,911 |
Direct to consumer | ||
Net revenue: | ||
Net revenue | 352,039 | 209,844 |
Segmented income (loss) from operations: | ||
Segmented income from operations | 156,947 | 79,337 |
Other | ||
Net revenue: | ||
Net revenue | 39,953 | 66,049 |
Segmented income (loss) from operations: | ||
Segmented income from operations | (269) | 12,623 |
Operating segments | Company-operated stores | ||
Capital expenditures: | ||
Capital expenditures | 33,819 | 38,710 |
Depreciation and amortization: | ||
Depreciation and amortization | 25,628 | 21,060 |
Operating segments | Direct to consumer | ||
Capital expenditures: | ||
Capital expenditures | 2,298 | 6,226 |
Depreciation and amortization: | ||
Depreciation and amortization | 2,684 | 2,462 |
Corporate and other | ||
Capital expenditures: | ||
Capital expenditures | 15,984 | 23,498 |
Depreciation and amortization: | ||
Depreciation and amortization | $ 15,220 | $ 9,301 |