Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 18, 2016 | Jul. 31, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | Francesca's Holdings CORP | ||
Entity Central Index Key | 1,399,935 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | FRAN | ||
Entity Common Stock, Shares Outstanding | 40,481,200 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 512.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 56,224 | $ 39,071 |
Accounts receivable | 9,580 | 12,279 |
Inventories | 31,541 | 23,801 |
Deferred income taxes | 6,411 | 4,858 |
Prepaid expenses and other current assets | 7,013 | 5,890 |
Total current assets | 110,769 | 85,899 |
Property and equipment, net | 77,894 | 74,095 |
Deferred income taxes | 3,847 | 3,642 |
Other assets, net | 1,067 | 1,909 |
TOTAL ASSETS | 193,577 | 165,545 |
Current liabilities: | ||
Accounts payable | 14,305 | 11,550 |
Accrued liabilities | 16,328 | 11,904 |
Total current liabilities | 30,633 | 23,454 |
Landlord incentives and deferred rent | 36,552 | 32,877 |
Total liabilities | $ 67,185 | $ 56,331 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock-$.01 par value, 80.0 million shares authorized, 45.9 million and 45.5 million shares issued as of January 30, 2016 and January 31, 2015, respectively. | $ 459 | $ 455 |
Additional paid-in capital | 107,693 | 105,498 |
Retained earnings | 101,556 | 63,404 |
Treasury stock, at cost - 4.8 million and 3.2 million shares held at January 30, 2016 and January 31, 2015, respectively. | (83,316) | (60,143) |
Total stockholders’ equity | 126,392 | 109,214 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 193,577 | $ 165,545 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80 | 80 |
Common stock, shares issued | 45.9 | 45.5 |
Treasury stock, shares | 4.8 | 3.2 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net sales | $ 439,377 | $ 377,497 | $ 340,325 |
Cost of goods sold and occupancy costs | 229,673 | 199,919 | 164,260 |
Gross profit | 209,704 | 177,578 | 176,065 |
Selling, general and administrative expenses | 147,387 | 124,804 | 101,795 |
Income from operations | 62,317 | 52,774 | 74,270 |
Interest expense | (457) | (623) | (588) |
Other income (expense) | (151) | 88 | 208 |
Income before income tax expense | 61,709 | 52,239 | 73,890 |
Income tax expense | 23,557 | 20,131 | 29,051 |
Net income | $ 38,152 | $ 32,108 | $ 44,839 |
Basic earnings per common share (in dollars per share) | $ 0.91 | $ 0.76 | $ 1.03 |
Diluted earnings per common share (in dollars per share) | $ 0.91 | $ 0.76 | $ 1.02 |
Weighted average shares outstanding: | |||
Basic shares (in shares) | 42,013 | 42,259 | 43,372 |
Diluted shares (in shares) | 42,117 | 42,380 | 44,123 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Outstanding | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Treasury Stock, at cost |
Balance at Feb. 02, 2013 | $ 72,057 | $ 439 | $ 85,161 | $ (13,543) | $ 0 | |
Balance (in shares) at Feb. 02, 2013 | 43,880 | |||||
Net income | 44,839 | 0 | 0 | 44,839 | 0 | |
Stock-based compensation | 3,781 | 3,781 | 0 | 0 | ||
Restricted stocks issued, net of forfeitures | 0 | 0 | 0 | 0 | 0 | |
Restricted stocks issued, net of forfeitures (in Shares) | 2 | |||||
Stock options exercised | 8,697 | 13 | 8,684 | 0 | 0 | |
Stock options exercised (in shares) | 1,361 | |||||
Tax effect of stock-based compensation | 3,566 | 3,566 | 0 | 0 | ||
Repurchases of common stock | $ (54,873) | 0 | 0 | 0 | (54,873) | |
Repurchases of common stock (in shares) | (2,900) | (2,894) | ||||
Balance at Feb. 01, 2014 | $ 78,067 | 452 | 101,192 | 31,296 | (54,873) | |
Balance (in shares) at Feb. 01, 2014 | 42,349 | |||||
Net income | 32,108 | 0 | 0 | 32,108 | 0 | |
Stock-based compensation | 2,668 | 0 | 2,668 | 0 | 0 | |
Restricted stocks issued, net of forfeitures | 0 | 0 | 0 | 0 | 0 | |
Restricted stocks issued, net of forfeitures (in Shares) | 2 | |||||
Stock options exercised | 1,332 | 3 | 1,329 | 0 | 0 | |
Stock options exercised (in shares) | 232 | |||||
Tax effect of stock-based compensation | 309 | 0 | 309 | 0 | 0 | |
Repurchases of common stock | $ (5,270) | 0 | 0 | 0 | (5,270) | |
Repurchases of common stock (in shares) | (300) | (285) | ||||
Balance at Jan. 31, 2015 | $ 109,214 | 455 | 105,498 | 63,404 | (60,143) | |
Balance (in shares) at Jan. 31, 2015 | 42,298 | |||||
Net income | 38,152 | 0 | 0 | 38,152 | 0 | |
Stock-based compensation | 2,932 | 0 | 2,932 | 0 | 0 | |
Restricted stocks issued, net of forfeitures | 0 | 3 | (3) | 0 | 0 | |
Restricted stocks issued, net of forfeitures (in Shares) | 273 | |||||
Stock options exercised | $ 499 | 1 | 498 | 0 | 0 | |
Stock options exercised (in shares) | 100 | 100 | ||||
Tax effect of stock-based compensation | $ (1,232) | 0 | (1,232) | 0 | 0 | |
Repurchases of common stock | $ (23,173) | 0 | 0 | 0 | (23,173) | |
Repurchases of common stock (in shares) | (1,600) | (1,576) | ||||
Balance at Jan. 30, 2016 | $ 126,392 | $ 459 | $ 107,693 | $ 101,556 | $ (83,316) | |
Balance (in shares) at Jan. 30, 2016 | 41,095 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Cash Flows Provided By Operating Activities: | |||
Net income | $ 38,152 | $ 32,108 | $ 44,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16,816 | 13,151 | 10,054 |
Stock-based compensation expense | 2,932 | 2,668 | 3,781 |
Excess tax benefit from stock-based compensation | (236) | (309) | (5,846) |
Impairment charges | 790 | 2,470 | 0 |
Loss on disposal of assets | 487 | 364 | 343 |
Amortization of debt issuance costs | 245 | 245 | 278 |
Deferred income taxes | (3,226) | (1,600) | (1,014) |
Changes in assets and liabilities: | |||
Accounts receivable | 2,935 | (2,986) | (634) |
Inventories | (7,740) | 813 | (5,565) |
Prepaid expenses and other assets | (524) | 373 | (2,021) |
Accounts payable | 4,137 | (363) | 551 |
Accrued liabilities | 4,424 | 2,081 | (844) |
Landlord incentives and deferred rent | 3,675 | 5,429 | 5,356 |
Net cash provided by operating activities | 62,867 | 54,444 | 49,278 |
Cash Flows Used in Investing Activities: | |||
Purchase of property and equipment | (24,276) | (24,255) | (24,633) |
Other | 12 | 13 | 98 |
Net cash used in investing activities | (24,264) | (24,242) | (24,535) |
Cash Flows Used in Financing Activities: | |||
Repurchases of common stock | (22,185) | (5,270) | (54,009) |
Proceeds from the exercise of stock options | 499 | 1,332 | 8,697 |
Excess tax benefit from stock-based compensation | 236 | 309 | 5,846 |
Taxes paid related to net settlement of equity awards | 0 | 0 | (2,280) |
Repayment of borrowings under the revolving credit facility | 0 | (25,000) | 0 |
Proceeds from borrowings under the revolving credit facility | 0 | 0 | 25,000 |
Payment of debt issuance costs | 0 | 0 | (376) |
Net cash used in financing activities | (21,450) | (28,629) | (17,122) |
Net increase in cash and cash equivalents | 17,153 | 1,573 | 7,621 |
Cash and cash equivalents, beginning of year | 39,071 | 37,498 | 29,877 |
Cash and cash equivalents, end of year | 56,224 | 39,071 | 37,498 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for income taxes | 23,958 | 24,088 | 32,401 |
Interest paid | $ 190 | $ 388 | $ 293 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Business Francesca’s Holdings Corporation (the “Company” or “Holdings”) is a holding company incorporated in 2007 under the laws of Delaware. The Company’s business operations are conducted through its subsidiaries. The Company operates a nationwide-chain of boutiques providing customers a unique, fun and differentiated shopping experience. The Company offers a diverse and balanced mix of apparel, jewelry, accessories and gifts at attractive values. At January 30, 2016, the Company operated 616 boutiques, which are located in 47 states throughout the United States and the District of Columbia, and its direct-to-consumer website. Fiscal Year The Company maintains its accounts on a 52- to 53- week year ending on the Saturday closest to January 31. All references herein to fiscal year “2015” represents the 52-week period ended January 30, 2016, fiscal year “2014” represents the 52-week period ended January 31, 2015, and fiscal year “2013” represents the 52-week period ended February 1, 2014. Principles of Consolidation and Presentation The accompanying consolidated financial statements include the accounts of the Company and all its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Management Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the reported amounts of revenues, net of estimated sales return, and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain prior year amounts in the consolidated statements of changes in stockholders’ equity and the consolidated statements of cash flows have been reclassified to facilitate comparability with the current year’s presentation. These reclassifications do not materially impact the consolidated financial statements for the prior periods presented. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date. ⋅ Level 1 - Quoted prices in active markets for identical assets or liabilities. ⋅ Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. ⋅ Level 3 - Unobservable inputs based on the Company’s own assumptions. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Financial assets and liabilities with carrying amounts approximating fair value include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. Non-financial assets and liabilities, including long-lived assets, are measured at fair value on a non-recurring basis. The fair value of those assets is determined using Level 3 inputs which generally requires that the company to make estimates of future cash flows based on historical experience, current trends, market conditions and other relevant factors deemed material. Cash and Cash Equivalents The Company considers all interest-bearing deposits and investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains cash balances at financial institutions that may from time to time exceed the Federal Deposit Insurance Corporation’s insurance limits. The Company mitigates this concentration of credit risk by monitoring the credit worthiness of the financial institutions. Accounts Receivable Accounts receivable consist of amounts due from credit card companies, tenant allowances due from landlords and income tax refund receivable. The Company’s management has reviewed accounts receivable for collectability and has determined that an allowance for doubtful accounts is not necessary at January 30, 2016 and January 31, 2015. Inventory The Company values merchandise inventory at the lower of cost or market on a weighted-average cost basis. Inventory costs include freight costs. The Company records merchandise receipts at the time they are delivered to the distribution center or to its boutiques directly from vendors. The Company reviews its inventory levels to identify slow-moving merchandise. In order to clear slow-moving merchandise, the Company uses promotional markdowns or marks certain items out-of-stock and disposes of such inventory at a pace suitable for its merchandising strategy. Each period, the Company evaluates recent selling trends and the related promotional events or pricing strategies in place to sell through the current inventory levels. The Company also estimates a shrinkage reserve for the period of time between the last physical count and the balance sheet date. The estimate for shrinkage reserve can be affected by changes in merchandise mix and changes in actual shrinkage trends. Property and Equipment Assets Estimated Useful Lives Equipment 3 - 5 years Furniture and fixtures 5 years Software, including software developed for internal use 3 - 9 years Signage and leasehold improvements the lesser of 5 - 10 years or lease term Assets under construction are not depreciated until the asset is placed in service and / or ready for use. When a decision is made to dispose of property and equipment prior to the end of its previously estimated useful life, the Company accelerates depreciation to reflect the use of the asset over the shortened estimated useful life. Maintenance and repairs of property and equipment are expensed as incurred, and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts, and any gain or loss is reflected in current earnings. Impairment of Long-lived Assets The Company evaluates long-lived assets held for use and held for sale whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. Assets are grouped and evaluated for impairment at the lowest level for which there are identifiable cash flows, which is generally at the boutique level. Long-lived assets are reviewed for impairment using factors including, but not limited to, the Company’s current and future operating plans and projected cash flows. The determination of whether impairment has occurred is based on an estimate of undiscounted future cash flows directly related to the assets compared to its carrying value. If the carrying value of the asset is greater than the sum of the undiscounted future cash flows, an impairment loss is recognized for the difference between the carrying value and the estimated fair value of the asset; provided, however, that no other facts or circumstances indicate that recognition of such loss is premature. Fair value is determined using Level 3 inputs based on discounted future cash flows associated with the asset using a discount rate commensurate with the risk. In addition, at the time a decision is made to close a boutique, the Company accelerates depreciation over the revised useful life of the asset. The Company recognized a non-cash impairment charge of $0.6 million and $2.5 million in fiscal years 2015 and 2014, respectively, in connection with the abandonment of previously capitalized expenditures related to the development of the Company’s e-commerce website. No impairment charge was recognized in fiscal year 2013. The impairment charge is included in selling, general and administrative expenses. Operating Leases The Company leases boutiques and its distribution center and office space under operating leases. The majority of the Company’s lease agreements provide for tenant improvement allowances, rent escalation clauses and/or contingent rent provisions. Landlord incentives, such as tenant improvement allowances, are deferred and amortized on a straight-line basis over the lease term as a reduction of rent expense. The unamortized portion of landlord incentives totaled $25.1 million and $23.0 million at January 30, 2016 and January 31, 2015, respectively. The Company records straight-line rent expense beginning on the possession date. Certain leases provide for contingent rents, in addition to a basic fixed rent, which are determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. Revenue Recognition The Company recognizes revenue upon purchase of merchandise by customers, net of estimated merchandise returns and sales tax collected. Revenue is recognized for boutique sales at the point at which the customer receives and pays for the merchandise at the register. For direct-to-consumer sales, revenue is recognized upon delivery and includes shipping charges. Management estimates future returns on previously sold merchandise based on return history and current sales levels. Estimated sales returns are periodically compared to actual sales returns and adjusted, if appropriate. Gift Cards and Gift Card Breakage The Company accounts for the sale of gift cards as a liability at the time a gift card is sold. The liability is relieved and revenue is recognized upon redemption of the gift card. The gift cards issued by the Company are owned by an unrelated third party. The Company’s gift cards do not have an expiration date. Income from gift card breakage is recognized when the likelihood of redemption is deemed to be remote based on historical redemption patterns. The Company recognized $0.2 million, $0.1 million and $0.4 million of gift card breakage income in fiscal years 2015, 2014 and 2013, respectively. The gift card breakage income is included in net sales. Cost of Goods Sold and Occupancy Costs Cost of goods sold and occupancy costs include the cost of purchased merchandise, freight costs from the Company’s suppliers to its distribution centers and freight costs for merchandise shipped directly from its vendors to its boutiques, allowances for inventory shrinkage and obsolescence, boutique occupancy costs including rent, utilities, common area maintenance, property taxes, boutique assets depreciation, boutique repair and maintenance costs, and shipping costs related to direct-to-consumer sales. Selling, General and Administrative Expenses Selling, general and administrative expenses include boutique and headquarters payroll (including buying department), employee benefits, freight from distribution centers to boutiques, boutique pre-opening expense, credit card merchant fees, costs of maintaining and operating the Company’s direct-to-consumer business, travel and administration costs, corporate asset depreciation, stock-based compensation and other expenses related to operations at the corporate headquarters. Freight costs included in selling, general and administrative expenses amounted to $5.0 million, $3.8 million and $2.8 million in fiscal years 2015, 2014 and 2013, respectively. Advertising Advertising costs are charged to expense as incurred or, in the case of media production costs (such as television or print), when advertising first takes place. Advertising costs were $1.1 million, $1.1 million and $0.7 million in fiscal years 2015, 2014 and 2013, respectively. Stock-Based Compensation Stock-based compensation is measured at the grant date fair value and recognized as expense over the requisite service period (generally the vesting period of the award) for awards that are expected to vest. Please refer to Note 7 for additional information. Income Taxes The Company accounts for income taxes using the liability method. Under this method, the amount of taxes currently payable or refundable is accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of the Company’s assets and liabilities. Valuation allowances are established against deferred tax assets when it is more-likely-than-not that the realization of those deferred tax assets will not occur. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company’s judgment changes as a result of the evaluation of new information not previously available. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. The Company has no uncertain tax positions requiring accrual at January 30, 2016 and January 31, 2015. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-4 “Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products.” The new guidance addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. ASU 2016-4 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. T In February 2016, the FASB issued ASU 2016-2, “Leases (Topic 842).” The new guidance, among other things, requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. ASU 2016-2 will be effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes Balance Sheet Classification of Deferred Taxes.” The new guidance simplifies the presentation of deferred income taxes by permitting classification of all deferred tax assets and liabilities as noncurrent on the consolidated balance sheet. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that fiscal year, with early adoption permitted. The amended standard may be adopted on either a prospective or a retrospective basis. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. In May 2014 the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 2. Earnings per Share Fiscal Years Ended January 30, January 31, February 1, 2016 2015 2014 (In thousands, except per share data) Numerator: Net income $ 38,152 $ 32,108 $ 44,839 Denominator: Weighted-average common shares outstanding-basic 42,013 42,259 43,372 Options and other dilutive securities 104 121 751 Weighted-average common shares outstanding-diluted 42,117 42,380 44,123 Per common share: Basic earnings per common share $ 0.91 $ 0.76 $ 1.03 Diluted earnings per common share $ 0.91 $ 0.76 $ 1.02 Potentially issuable shares under the Company’s stock-based compensation plan amounting to approximately 0.5 0.8 0.8 1.0 1.1 0 |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Jan. 30, 2016 | |
Detail Of Certain Balance Sheet Accounts [Abstract] | |
Detail of Certain Balance Sheet Accounts | 3. Detail of Certain Balance Sheet Accounts As of Fiscal Year Ended January 30, January 31, 2016 2015 (in thousands) Accounts receivable: Credit card receivables $ 3,241 $ 2,533 Tenant allowances 548 841 Income tax receivable 5,627 8,284 Others 164 621 $ 9,580 $ 12,279 Property and equipment, net: Signage and leasehold improvements $ 90,051 $ 73,694 Furniture and fixtures 18,094 15,009 Equipment 5,234 4,485 Software 7,368 6,371 Construction in progress 7,371 11,331 Total 128,118 110,890 Less accumulated depreciation (50,224) (36,795) $ 77,894 $ 74,095 As of Fiscal Year Ended January 30, January 31, 2016 2015 (in thousands) Accrued liabilities: Gift cards $ 8,435 $ 6,906 Accrued payroll, benefits and bonuses 6,622 4,014 Accrued sales tax 1,256 968 Accrued interest 15 16 $ 16,328 $ 11,904 Landlord incentives and deferred rent: Landlord incentives $ 25,161 $ 23,013 Deferred rent 11,391 9,864 $ 36,552 $ 32,877 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes Fiscal Years Ended January 30, January 31, February 1, 2016 2015 2014 (in thousands) Current: Federal $ 23,472 $ 18,498 $ 25,363 State 3,311 3,345 4,702 Total 26,783 21,843 30,065 Deferred: Federal (2,684) (1,069) (747) State (542) (643) (267) Total (3,226) (1,712) (1,014) Income tax expense $ 23,557 $ 20,131 $ 29,051 Fiscal Years Ended January 30, January 31, February 1, 2016 2015 2014 Income tax expense at statutory rate 35.0 % 35.0 % 35.0 % Nondeductible expenses 0.1 0.1 0.3 State tax, net of federal benefit 3.1 2.9 4.1 Other 0.0 0.5 (0.1) Effective tax rate 38.2 % 38.5 % 39.3 % Deferred tax assets and liabilities are recorded due to different carrying amounts for financial and income tax reporting purposes arising from cumulative temporary differences as measured by enacted tax rates, which will be in effect when these temporary differences reverse. As of Fiscal Year Ended January 30, January 31, 2016 2015 (in thousands) Deferred tax assets: Inventories $ 1,058 $ 1,005 Accrued liabilities 5,201 3,853 Landlord incentives and deferred rents 14,032 12,514 Equity based compensation 2,114 2,662 Other 53 57 Total deferred tax assets 22,458 20,091 Deferred tax liabilities Property and equipment (12,200) (11,591) Total deferred tax liabilities (12,200) (11,591) Net deferred tax assets $ 10,258 $ 8,500 The Company’s tax years are subject to examination by federal authorities from 2012 2011 |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | 5. Revolving Credit Facility On August 30, 2013 75.0 10.0 August 30, 2018 25.0 All obligations under the Second Amended and Restated Credit Agreement are unconditionally guaranteed by, subject to certain exceptions, the Parent and each of Francesca’s Collections’ existing and future direct and indirect wholly-owned domestic subsidiaries. There are currently no subsidiary guarantors for the Second Amended and Restated Credit Agreement because Francesca’s Collections does not currently have any subsidiaries. All obligations under the Second Amended and Restated Credit Agreement, and the guarantees of those obligations (as well as cash management obligations and any interest rate hedging or other swap agreements), are secured by substantially all of Francesca’s Collections’ assets as well as the assets of any subsidiary guarantor. Additionally, the Second Amended and Restated Credit Agreement contains customary events of default and requires Francesca’s Collections to comply with certain financial covenants. Francesca’s Collections is permitted to pay dividends to the extent it has available capacity in its available investment basket (as defined in the Second Amended and Restated Credit Agreement), no default or event of default is continuing, certain procedural requirements have been satisfied and Francesca’s Collections is in pro forma compliance with a maximum secured leverage ratio. As of January 30, 2016, Francesca’s Collections was in compliance with all covenants under the Second Amended and Restated Credit Agreement. At January 30, 2016, Francesca’s Collections would have met the conditions for paying dividends out of the available investment basket, including compliance with the required total secured leverage ratio. The borrowings under the Second Amended and Restated Credit Agreement bear interest at a rate equal to an applicable margin plus, at the option of Francesca’s Collection’s, either (a) in the case of base rate borrowings, a rate equal to the highest of (1) the prime rate of Royal Bank of Canada, (2) the federal funds rate plus 1/2 of 1%, and (3) the LIBOR for an interest period of one month plus 1.00 0.75 1.25 1.75 2.25 0.25 0.38 |
Share Repurchases
Share Repurchases | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchases | 6. Share Repurchases On September 3, 2013, the Company’s Board of Directors authorized a $ 100.0 1.6 23.2 14.70 0.3 5.3 18.49 2.9 54.9 18.95 16.8 On March 15, 2016, the Company’s Board of Directors authorized an additional $ 100.0 Subsequent to year-end and through March 18, 2016, the Company repurchased 0.6 million shares of common stock for approximately $ 11.1 million or an average price (including brokers’ commission) of $ 18.05 per share and had a remaining balance available for future purchases of approximately $ 5.7 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation Stock-based compensation expense for fiscal years 2015, 2014 and 2013 totaled approximately $ 2.9 2.7 3.8 Stock Incentive Plans 2010 Stock Incentive Plan On February 27, 2010, the Company adopted the Francesca’s Holdings Corporation 2010 Stock Incentive Plan (the “2010 Plan”) to be administered by the Board or a Committee. Under the 2010 Plan, awards may be in the form of stock options, stock or restricted stock and may be granted to any officers, directors, eligible employees and consultants of the Company. Exercise prices shall not be less than the fair market value of the Company’s common stock at the date of grant as determined by the Board. The awards generally vest over four five ten 2011 Stock Incentive Plan On July 14, 2011, the 2011 Equity Incentive Plan (the “2011 Plan”) was approved by the stockholders and became immediately effective. Under the 2011 Plan, awards may be in the form of nonqualified stock options, stock appreciation rights, stock bonuses, restricted stock, performance stock and other stock-based awards which can be granted to any officers, directors, employees and consultants of the Company. A total of 3,175,365 three five ten 2015 Stock Incentive Plan On June 9, 2015, the 2015 Equity Incentive Plan (the “2015 Plan”) was approved by the stockholders and became immediately effective. Under the 2015 Plan, awards may be in the form of nonqualified stock options, stock appreciation rights, stock bonuses, restricted stock, stock units, performance stock and other stock-based awards which can be granted to any officers, directors, employees and consultants of the Company. A total of 1,247,589 three five ten 1.3 Stock Options Weighted Average Weighted Remaining Number of Average Contractual Aggregate Options Exercise Price Life Intrinsic Value (in thousands) (Per share data) (in Years) (In thousands) Stock options outstanding as of January 31, 2015 1,873 $ 15.83 Granted 81 $ 14.76 Exercised (100) $ 4.98 Forfeited (82) $ 24.73 Expired (253) $ 30.62 Stock options outstanding as of January 30, 2016 1,519 $ 13.55 8 $ 8,892 Stock options exercisable as of January 30, 2016 303 $ 16.15 6 $ 1,767 During fiscal years 2015, 2014 and 2013 stock options were granted at a weighted-average grant date fair value of $ 8.44 6.04 14.15 1.2 2.8 20.8 On December 4, 2014, Michael Barnes was appointed as Chairman of the Board of Directors, President and Chief Executive Officer of the Company. In connection with such appointment, the Board awarded him stock options to purchase up to 1,000,000 5.9 Other than the service and market-based options granted to Mr. Barnes during fiscal year 2014 described above, all other option grants are subject to service condition only. Fiscal Year 2015 2014 2013 Expected volatility (1) 54.0% 57.0% - 60.3% 59.7% - 61.3% Expected term (in years) (2) 6.5 6.0 7.5 6.0 - 6.5 Risk-free interest rate (3) 1.9% 1.9% - 2.0% 1.0% - 2.0% Expected dividend yield (4) - - - 1) Prior to fiscal year 2015, expected volatility is estimated using historical and implied volatilities of similar entities whose share prices are publicly available, including Company specific data. Beginning in fiscal year 2015, volatility was estimated using the historical volatility of the Company’s own common stock. 2) Due to lack of sufficient historical data, the expected term was determined using the “simplified method” as allowed by SEC Staff Accounting Bulletin Topic 14D2. 3) The risk-free interest rate was determined based on the rate of Treasury instruments with maturities similar to those of the expected term of the award being valued. 4) The expected dividend yield was based on the Company’s expectations of not paying dividends on its common stock for the foreseeable future. As of January 30, 2016, there was approximately $ 6.1 3 Restricted Stocks Weighted Number of Average Grant Shares Date Fair Value (in thousands) (Per share data) Non-vested restricted stocks as of January 31, 2015 40 $ 14.99 Granted 145 $ 15.48 Forfeited (68) $ 15.42 Non-vested restricted stocks as of January 30, 2016 117 $ 15.35 During fiscal year 2015, the Company established performance goals applicable to performance-based restricted stock awards originally granted by the Compensation Committee of the Board of Directors in fiscal years 2015 and 2014 to certain executives and other key employees. A portion of each of these awards was eligible to vest based on the Company’s performance in fiscal year 2015 against established performance goals. The target number of shares subject to awards granted in fiscal year 2015 that related to fiscal year 2015 performance was approximately 85,000 30,000 0 150 The fair value of restricted stock awards is determined based on the closing price of the Company’s common stock on the award date. For awards subject to performance conditions, compensation expense is recognized over the requisite service period when it is probable that the specified performance goals will be achieved. The Company recognized compensation expense of approximately $ 0.5 0.1 0 As of January 30, 2016, there was approximately $ 1.5 2 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | 8. Employee Benefits The Company has adopted Francesca’s Collections, Inc. 401(k) Retirement Plan (the “401(k) Plan”) under which full-time and part-time employees who are at least 21 4 0.5 0.5 0.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Operating leases The Company leases boutique space and office space under operating leases expiring in various years through the fiscal year ending 2027 Fiscal Year Amount (in thousands) 2016 $ 40,321 2017 40,184 2018 38,714 2019 36,013 2020 30,149 Thereafter 69,888 $ 255,269 During fiscal years 2015, 2014 and 2013, rent expense totaled $ 35.3 30.1 26.3 Legal Proceedings On September 27, 2013 and November 4, 2013, two purported class action lawsuits entitled Ortuzar v. Francesca’s Holdings Corp., et al. and West Palm Beach Police Pension Fund v. Francesca’s Holdings Corp., et al. were filed in the United States District Court for the Southern District of New York against the Company and certain of its current and former directors and officers for alleged violations of the federal securities laws. On December 19, 2013, the Court consolidated these actions. On March 14, 2014, lead plaintiff filed a consolidated class action complaint. The consolidated complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 for allegedly false and misleading statements in the Company’s public disclosures. On May 13, 2014 the defendants moved to dismiss the consolidated complaint. By Order and Judgment entered April 1, 2015, the Court granted defendants’ motion to dismiss and dismissed the consolidated complaint in its entirety with prejudice and closed the case. On April 29, 2015, the lead plaintiff filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit of the Court’s judgment dismissing the consolidated complaint. On June 12, 2015, the U.S. Court of Appeals for the Second Circuit granted the parties’ stipulation of voluntary dismissal, which withdrew the appeal with prejudice. On each of May 28, 2014 and July 8, 2014, a purported shareholder derivative action entitled Daniell v. De Merritt, et al. and Murphy v. Davis, et al., respectively, purportedly on behalf of the Company, was filed in the Delaware Court of Chancery, naming certain of the Company’s current and former officers, directors, and shareholders as defendants and naming the Company as a nominal defendant. On September 3, 2014, the Court of Chancery consolidated the Daniell and Murphy cases. Plaintiffs filed a consolidated amended complaint on September 23, 2014 alleging claims of breach of fiduciary duty and unjust enrichment. The consolidated amended complaint sought damages in an unspecified amount, an order directing the Company “to reform and improve” corporate governance and internal controls, equitable and/or injunctive relief, restitution and disgorgement from the defendants, and costs and attorneys’ fees. On October 23, 2014, defendants filed a motion to dismiss the consolidated amended complaint, which was fully briefed. On June 12, 2015, the plaintiff voluntary dismissed the action with prejudice as to the named plaintiffs, and the Court entered an order dismissing the action with each party bearing its own fees and costs. The Company, from time to time, is subject to various claims and legal proceedings arising in the ordinary course of business. While the outcome of any such claim cannot be predicted with certainty, in the opinion of management, the outcome of these matters will not have a material adverse effect on the Company’s business, results of operations or financial condition. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 10. The Company determined that it has one operating and reportable segment, which includes the operation of boutiques and its direct-to-consumer website. The single segment was identified based on how the Company internally manages and evaluates its business. The Company also considered the similarity of merchandise offered, the customers served in boutiques and through the direct-to-consumer business and materiality. All of the Company’s identifiable assets are located in the United States. Fiscal Year Ended January 30, January 31, February 1, 2016 2015 2014 (in thousands) Apparel $ 212,371 $ 180,736 $ 163,946 Jewelry 96,337 81,751 81,186 Accessories 71,252 65,270 56,516 Gifts 58,387 48,981 37,875 Merchandise sales 438,347 376,738 339,523 Others (1) 1,030 759 802 Net sales $ 439,377 $ 377,497 $ 340,325 1) Includes gift card breakage income, shipping and change in return reserve. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 11. Quarterly Financial Data (Unaudited) Fiscal Year 2015 Fourth Third Second First Quarter Quarter Quarter Quarter (in thousands, except per share data) Net sales $ 134,605 $ 103,728 $ 106,033 $ 95,011 Gross profit 66,137 48,366 50,308 44,893 Income from operations 24,172 11,080 15,175 11,890 Net income 14,656 6,951 9,304 7,241 Basic earnings per common share 0.36 0.16 0.22 0.17 Diluted earnings per common share 0.35 0.16 0.22 0.17 Fiscal Year 2014 Fourth Third Second First Quarter Quarter Quarter Quarter (in thousands, except per share data) Net sales $ 107,644 $ 87,110 $ 97,319 $ 85,424 Gross profit 49,246 41,185 45,315 41,832 Income from operations 10,717 11,375 16,662 14,020 Net income 5,971 7,270 10,307 8,560 Basic earnings per common share 0.14 0.17 0.24 0.20 Diluted earnings per common share 0.14 0.17 0.24 0.20 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company maintains its accounts on a 52- to 53- week year ending on the Saturday closest to January 31. All references herein to fiscal year “2015” represents the 52-week period ended January 30, 2016, fiscal year “2014” represents the 52-week period ended January 31, 2015, and fiscal year “2013” represents the 52-week period ended February 1, 2014. |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation The accompanying consolidated financial statements include the accounts of the Company and all its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Management Estimates and Assumptions | Management Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the reported amounts of revenues, net of estimated sales return, and expenses during the reporting periods. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior year amounts in the consolidated statements of changes in stockholders’ equity and the consolidated statements of cash flows have been reclassified to facilitate comparability with the current year’s presentation. These reclassifications do not materially impact the consolidated financial statements for the prior periods presented. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date. ⋅ Level 1 - Quoted prices in active markets for identical assets or liabilities. ⋅ Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. ⋅ Level 3 - Unobservable inputs based on the Company’s own assumptions. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Financial assets and liabilities with carrying amounts approximating fair value include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. Non-financial assets and liabilities, including long-lived assets, are measured at fair value on a non-recurring basis. The fair value of those assets is determined using Level 3 inputs which generally requires that the company to make estimates of future cash flows based on historical experience, current trends, market conditions and other relevant factors deemed material. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all interest-bearing deposits and investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains cash balances at financial institutions that may from time to time exceed the Federal Deposit Insurance Corporation’s insurance limits. The Company mitigates this concentration of credit risk by monitoring the credit worthiness of the financial institutions. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of amounts due from credit card companies, tenant allowances due from landlords and income tax refund receivable. The Company’s management has reviewed accounts receivable for collectability and has determined that an allowance for doubtful accounts is not necessary at January 30, 2016 and January 31, 2015. |
Inventory | Inventory The Company values merchandise inventory at the lower of cost or market on a weighted-average cost basis. Inventory costs include freight costs. The Company records merchandise receipts at the time they are delivered to the distribution center or to its boutiques directly from vendors. The Company reviews its inventory levels to identify slow-moving merchandise. In order to clear slow-moving merchandise, the Company uses promotional markdowns or marks certain items out-of-stock and disposes of such inventory at a pace suitable for its merchandising strategy. Each period, the Company evaluates recent selling trends and the related promotional events or pricing strategies in place to sell through the current inventory levels. The Company also estimates a shrinkage reserve for the period of time between the last physical count and the balance sheet date. The estimate for shrinkage reserve can be affected by changes in merchandise mix and changes in actual shrinkage trends. |
Property and Equipment | Property and Equipment Assets Estimated Useful Lives Equipment 3 - 5 years Furniture and fixtures 5 years Software, including software developed for internal use 3 - 9 years Signage and leasehold improvements the lesser of 5 - 10 years or lease term Assets under construction are not depreciated until the asset is placed in service and / or ready for use. When a decision is made to dispose of property and equipment prior to the end of its previously estimated useful life, the Company accelerates depreciation to reflect the use of the asset over the shortened estimated useful life. Maintenance and repairs of property and equipment are expensed as incurred, and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts, and any gain or loss is reflected in current earnings. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company evaluates long-lived assets held for use and held for sale whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. Assets are grouped and evaluated for impairment at the lowest level for which there are identifiable cash flows, which is generally at the boutique level. Long-lived assets are reviewed for impairment using factors including, but not limited to, the Company’s current and future operating plans and projected cash flows. The determination of whether impairment has occurred is based on an estimate of undiscounted future cash flows directly related to the assets compared to its carrying value. If the carrying value of the asset is greater than the sum of the undiscounted future cash flows, an impairment loss is recognized for the difference between the carrying value and the estimated fair value of the asset; provided, however, that no other facts or circumstances indicate that recognition of such loss is premature. Fair value is determined using Level 3 inputs based on discounted future cash flows associated with the asset using a discount rate commensurate with the risk. In addition, at the time a decision is made to close a boutique, the Company accelerates depreciation over the revised useful life of the asset. The Company recognized a non-cash impairment charge of $ 0.6 2.5 |
Operating Leases | Operating Leases The Company leases boutiques and its distribution center and office space under operating leases. The majority of the Company’s lease agreements provide for tenant improvement allowances, rent escalation clauses and/or contingent rent provisions. Landlord incentives, such as tenant improvement allowances, are deferred and amortized on a straight-line basis over the lease term as a reduction of rent expense. The unamortized portion of landlord incentives totaled $ 25.1 23.0 The Company records straight-line rent expense beginning on the possession date. Certain leases provide for contingent rents, in addition to a basic fixed rent, which are determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue upon purchase of merchandise by customers, net of estimated merchandise returns and sales tax collected. Revenue is recognized for boutique sales at the point at which the customer receives and pays for the merchandise at the register. For direct-to-consumer sales, revenue is recognized upon delivery and includes shipping charges. Management estimates future returns on previously sold merchandise based on return history and current sales levels. Estimated sales returns are periodically compared to actual sales returns and adjusted, if appropriate. |
Gift Cards and Gift Card Breakage | Gift Cards and Gift Card Breakage The Company accounts for the sale of gift cards as a liability at the time a gift card is sold. The liability is relieved and revenue is recognized upon redemption of the gift card. The gift cards issued by the Company are owned by an unrelated third party. The Company’s gift cards do not have an expiration date. Income from gift card breakage is recognized when the likelihood of redemption is deemed to be remote based on historical redemption patterns. The Company recognized $ 0.2 0.1 0.4 |
Cost of Goods Sold and Occupancy Costs | Cost of Goods Sold and Occupancy Costs Cost of goods sold and occupancy costs include the cost of purchased merchandise, freight costs from the Company’s suppliers to its distribution centers and freight costs for merchandise shipped directly from its vendors to its boutiques, allowances for inventory shrinkage and obsolescence, boutique occupancy costs including rent, utilities, common area maintenance, property taxes, boutique assets depreciation, boutique repair and maintenance costs, and shipping costs related to direct-to-consumer sales. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include boutique and headquarters payroll (including buying department), employee benefits, freight from distribution centers to boutiques, boutique pre-opening expense, credit card merchant fees, costs of maintaining and operating the Company’s direct-to-consumer business, travel and administration costs, corporate asset depreciation, stock-based compensation and other expenses related to operations at the corporate headquarters. Freight costs included in selling, general and administrative expenses amounted to $ 5.0 3.8 2.8 |
Advertising | Advertising Advertising costs are charged to expense as incurred or, in the case of media production costs (such as television or print), when advertising first takes place. Advertising costs were $ 1.1 1.1 0.7 |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is measured at the grant date fair value and recognized as expense over the requisite service period (generally the vesting period of the award) for awards that are expected to vest. Please refer to Note 7 for additional information. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method. Under this method, the amount of taxes currently payable or refundable is accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of the Company’s assets and liabilities. Valuation allowances are established against deferred tax assets when it is more-likely-than-not that the realization of those deferred tax assets will not occur. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company’s judgment changes as a result of the evaluation of new information not previously available. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. The Company has no uncertain tax positions requiring accrual at January 30, 2016 and January 31, 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-4 “Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products.” The new guidance addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. ASU 2016-4 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The amended standard may be adopted on either a modified retrospective or a retrospective basis. In February 2016, the FASB issued ASU 2016-2, “Leases (Topic 842).” The new guidance, among other things, requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. ASU 2016-2 will be effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes Balance Sheet Classification of Deferred Taxes.” The new guidance simplifies the presentation of deferred income taxes by permitting classification of all deferred tax assets and liabilities as noncurrent on the consolidated balance sheet. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that fiscal year, with early adoption permitted. The amended standard may be adopted on either a prospective or a retrospective basis. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. In May 2014 the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers |
Earnings Per Share | Earnings per Share Basic earnings per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted-average number of common shares outstanding for the period and include the dilutive impact of stock options and restricted stock using the treasury stock method. |
Segment Reporting | Segment Reporting The Company determined that it has one operating and reportable segment, which includes the operation of boutiques and its direct-to-consumer website. The single segment was identified based on how the Company internally manages and evaluates its business. The Company also considered the similarity of merchandise offered, the customers served in boutiques and through the direct-to-consumer business and materiality. All of the Company’s identifiable assets are located in the United States. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Property and Equipment Estimated Useful Lives | Property and equipment is stated at cost. Depreciation of property and equipment is provided on a straight-line basis for financial reporting purposes using the following useful lives: Assets Estimated Useful Lives Equipment 3 - 5 years Furniture and fixtures 5 years Software, including software developed for internal use 3 - 9 years Signage and leasehold improvements the lesser of 5 - 10 years or lease term |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | The following table summarizes the potential dilutive impact that could occur if outstanding options to acquire common stock were exercised or if outstanding restricted stocks have fully vested, and reconciles the weighted-average common shares outstanding used in the computation of basic and diluted earnings per share. Fiscal Years Ended January 30, January 31, February 1, 2016 2015 2014 (In thousands, except per share data) Numerator: Net income $ 38,152 $ 32,108 $ 44,839 Denominator: Weighted-average common shares outstanding-basic 42,013 42,259 43,372 Options and other dilutive securities 104 121 751 Weighted-average common shares outstanding-diluted 42,117 42,380 44,123 Per common share: Basic earnings per common share $ 0.91 $ 0.76 $ 1.03 Diluted earnings per common share $ 0.91 $ 0.76 $ 1.02 |
Detail of Certain Balance She21
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Detail Of Certain Balance Sheet Accounts [Abstract] | |
Accounts receivable | As of Fiscal Year Ended January 30, January 31, 2016 2015 (in thousands) Accounts receivable: Credit card receivables $ 3,241 $ 2,533 Tenant allowances 548 841 Income tax receivable 5,627 8,284 Others 164 621 $ 9,580 $ 12,279 |
Property, plant and equipment, net | Property and equipment, net: Signage and leasehold improvements $ 90,051 $ 73,694 Furniture and fixtures 18,094 15,009 Equipment 5,234 4,485 Software 7,368 6,371 Construction in progress 7,371 11,331 Total 128,118 110,890 Less accumulated depreciation (50,224 ) (36,795 ) $ 77,894 $ 74,095 |
Accrued liabilities | Gift cards $ 8,435 $ 6,906 Accrued payroll, benefits and bonuses 6,622 4,014 Accrued sales tax 1,256 968 Accrued interest 15 16 $ 16,328 $ 11,904 |
Landlord incentives and deferred rent | Landlord incentives and deferred rent: Landlord incentives $ 25,161 $ 23,013 Deferred rent 11,391 9,864 $ 36,552 $ 32,877 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for income tax expense | The provision for income tax expense for fiscal years 2015, 2014 and 2013 is as follows: Fiscal Years Ended January 30, January 31, February 1, 2016 2015 2014 (in thousands) Current: Federal $ 23,472 $ 18,498 $ 25,363 State 3,311 3,345 4,702 Total 26,783 21,843 30,065 Deferred: Federal (2,684) (1,069) (747) State (542) (643) (267) Total (3,226) (1,712) (1,014) Income tax expense $ 23,557 $ 20,131 $ 29,051 |
Effective tax rate reconciliation | The reconciliation of the statutory federal income tax rate to the effective tax rate follows: Fiscal Years Ended January 30, January 31, February 1, 2016 2015 2014 Income tax expense at statutory rate 35.0 % 35.0 % 35.0 % Nondeductible expenses 0.1 0.1 0.3 State tax, net of federal benefit 3.1 2.9 4.1 Other 0.0 0.5 (0.1) Effective tax rate 38.2 % 38.5 % 39.3 % |
Schedule of Deferred Tax Assets and Liabilities | These differences consist of the following as of the dates indicated: As of Fiscal Year Ended January 30, January 31, 2016 2015 (in thousands) Deferred tax assets: Inventories $ 1,058 $ 1,005 Accrued liabilities 5,201 3,853 Landlord incentives and deferred rents 14,032 12,514 Equity based compensation 2,114 2,662 Other 53 57 Total deferred tax assets 22,458 20,091 Deferred tax liabilities Property and equipment (12,200) (11,591) Total deferred tax liabilities (12,200) (11,591) Net deferred tax assets $ 10,258 $ 8,500 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options Activity | The following table summarizes stock option activity during fiscal year 2015. The intrinsic value of the stock options was calculated based the closing price of the Company’s common stock on the last trading day closest to January 30, 2016. Weighted Average Weighted Remaining Number of Average Contractual Aggregate Options Exercise Price Life Intrinsic Value (in thousands) (Per share data) (in Years) (In thousands) Stock options outstanding as of January 31, 2015 1,873 $ 15.83 Granted 81 $ 14.76 Exercised (100) $ 4.98 Forfeited (82) $ 24.73 Expired (253) $ 30.62 Stock options outstanding as of January 30, 2016 1,519 $ 13.55 8 $ 8,892 Stock options exercisable as of January 30, 2016 303 $ 16.15 6 $ 1,767 |
Schedule of Assumptions Used to Estimate the Fair Value of Stock-based Awards | The fair value of stock options with a service condition was estimated using the Black Scholes option pricing model. The fair value of stock options subject to a service and a market condition was estimated using a Monte-Carlo simulation method. Each model considers the following significant assumptions in determining the fair value of awards. Fiscal Year 2015 2014 2013 Expected volatility (1) 54.0% 57.0% - 60.3% 59.7% - 61.3% Expected term (in years) (2) 6.5 6.0 7.5 6.0 - 6.5 Risk-free interest rate (3) 1.9% 1.9% - 2.0% 1.0% - 2.0% Expected dividend yield (4) - - - 1) Prior to fiscal year 2015, expected volatility is estimated using historical and implied volatilities of similar entities whose share prices are publicly available, including Company specific data. Beginning in fiscal year 2015, volatility was estimated using the historical volatility of the Company’s own common stock. 2) Due to lack of sufficient historical data, the expected term was determined using the “simplified method” as allowed by SEC Staff Accounting Bulletin Topic 14D2. 3) The risk-free interest rate was determined based on the rate of Treasury instruments with maturities similar to those of the expected term of the award being valued. 4) The expected dividend yield was based on the Company’s expectations of not paying dividends on its common stock for the foreseeable future. |
Summary of Nonvested Restricted Stock Activity | The following table summarizes restricted stock activity during fiscal year 2015. Weighted Number of Average Grant Shares Date Fair Value (in thousands) (Per share data) Non-vested restricted stocks as of January 31, 2015 40 $ 14.99 Granted 145 $ 15.48 Forfeited (68) $ 15.42 Non-vested restricted stocks as of January 30, 2016 117 $ 15.35 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum future rental payments under non-cancellable operating leases as of January 30, 2016 are approximately as follows: Fiscal Year Amount (in thousands) 2016 $ 40,321 2017 40,184 2018 38,714 2019 36,013 2020 30,149 Thereafter 69,888 $ 255,269 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Major Merchandise Categories | The following is net sales information regarding the Company’s major merchandise categories. Fiscal Year Ended January 30, January 31, February 1, 2016 2015 2014 (in thousands) Apparel $ 212,371 $ 180,736 $ 163,946 Jewelry 96,337 81,751 81,186 Accessories 71,252 65,270 56,516 Gifts 58,387 48,981 37,875 Merchandise sales 438,347 376,738 339,523 Others (1) 1,030 759 802 Net sales $ 439,377 $ 377,497 $ 340,325 1) Includes gift card breakage income, shipping and change in return reserve. |
Quarterly Financial Data (Una26
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal Year 2015 Fourth Third Second First Quarter Quarter Quarter Quarter (in thousands, except per share data) Net sales $ 134,605 $ 103,728 $ 106,033 $ 95,011 Gross profit 66,137 48,366 50,308 44,893 Income from operations 24,172 11,080 15,175 11,890 Net income 14,656 6,951 9,304 7,241 Basic earnings per common share 0.36 0.16 0.22 0.17 Diluted earnings per common share 0.35 0.16 0.22 0.17 Fiscal Year 2014 Fourth Third Second First Quarter Quarter Quarter Quarter (in thousands, except per share data) Net sales $ 107,644 $ 87,110 $ 97,319 $ 85,424 Gross profit 49,246 41,185 45,315 41,832 Income from operations 10,717 11,375 16,662 14,020 Net income 5,971 7,270 10,307 8,560 Basic earnings per common share 0.14 0.17 0.24 0.20 Diluted earnings per common share 0.14 0.17 0.24 0.20 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Software, including software developed for internal use [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 9 years |
Software, including software developed for internal use [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Signage and leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Signage and leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Company Information and Summary of Significant Accounting Policies [Line Items] | |||
Year of Incorporation | 2,007 | ||
State of Incorporation | Delaware | ||
Number of Boutiques in Operation | 616 | ||
Number of States in which Entity Operates | 47 | ||
Landlord incentives | $ 25,161 | $ 23,013 | |
Advertising Expense | $ 1,100 | $ 1,100 | $ 700 |
Length of Fiscal Period | 364 days | 364 days | 364 days |
Allowance for Doubtful Accounts Receivable, Current | $ 0 | $ 0 | |
Liability for Uncertain Tax Positions, Current | 0 | 0 | |
Selling, General and Administrative Expenses [Member] | |||
Company Information and Summary of Significant Accounting Policies [Line Items] | |||
Impairment of Website Development Costs | 600 | 2,500 | $ 0 |
Freight Costs | 5,000 | 3,800 | 2,800 |
Sales [Member] | |||
Company Information and Summary of Significant Accounting Policies [Line Items] | |||
Gift card breakage income | $ 200 | $ 100 | $ 400 |
Minimum [Member] | |||
Company Information and Summary of Significant Accounting Policies [Line Items] | |||
Length of Fiscal Period | 364 days | ||
Maximum [Member] | |||
Company Information and Summary of Significant Accounting Policies [Line Items] | |||
Length of Fiscal Period | 371 days |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Table) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Numerator: | |||||||||||
Net income | $ 14,656 | $ 6,951 | $ 9,304 | $ 7,241 | $ 5,971 | $ 7,270 | $ 10,307 | $ 8,560 | $ 38,152 | $ 32,108 | $ 44,839 |
Denominator: | |||||||||||
Weighted-average common shares outstanding - basic (in shares) | 42,013 | 42,259 | 43,372 | ||||||||
Options and other dilutive securities (in shares) | 104 | 121 | 751 | ||||||||
Weighted-average common shares outstanding - diluted (in shares) | 42,117 | 42,380 | 44,123 | ||||||||
Per common share: | |||||||||||
Basic earnings per common share (in dollars per share) | $ 0.36 | $ 0.16 | $ 0.22 | $ 0.17 | $ 0.14 | $ 0.17 | $ 0.24 | $ 0.20 | $ 0.91 | $ 0.76 | $ 1.03 |
Diluted earnings per common share (in dollars per share) | $ 0.35 | $ 0.16 | $ 0.22 | $ 0.17 | $ 0.14 | $ 0.17 | $ 0.24 | $ 0.20 | $ 0.91 | $ 0.76 | $ 1.02 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares shares in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Securities Excluded from Computation of Diluted Weighted Average Common Stock Outstanding | 0.5 | 0.8 | 0.8 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Securities Excluded from Computation of Diluted Weighted Average Common Stock Outstanding | 1 | 1.1 | 0 |
Detail of Certain Balance She31
Detail of Certain Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Accounts receivable: | ||
Credit card receivables | $ 3,241 | $ 2,533 |
Tenant allowances | 548 | 841 |
Income tax receivable | 5,627 | 8,284 |
Others | 164 | 621 |
Accounts receivable | 9,580 | 12,279 |
Property and equipment, net: | ||
Signage and leasehold improvements | 90,051 | 73,694 |
Furniture and fixtures | 18,094 | 15,009 |
Equipment | 5,234 | 4,485 |
Software | 7,368 | 6,371 |
Construction in progress | 7,371 | 11,331 |
Total | 128,118 | 110,890 |
Less accumulated depreciation | (50,224) | (36,795) |
Property and equipment, net | 77,894 | 74,095 |
Accrued liabilities: | ||
Gift cards | 8,435 | 6,906 |
Accrued payroll, benefits and bonuses | 6,622 | 4,014 |
Accrued sales tax | 1,256 | 968 |
Accrued interest | 15 | 16 |
Accrued liabilities | 16,328 | 11,904 |
Landlord incentives and deferred rent: | ||
Landlord incentives | 25,161 | 23,013 |
Deferred rent | 11,391 | 9,864 |
Landlord incentives and deferred rent | $ 36,552 | $ 32,877 |
Income Taxes Details (Income Ta
Income Taxes Details (Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current: | |||
Federal | $ 23,472 | $ 18,498 | $ 25,363 |
State | 3,311 | 3,345 | 4,702 |
Total | 26,783 | 21,843 | 30,065 |
Deferred: | |||
Federal | (2,684) | (1,069) | (747) |
State | (542) | (643) | (267) |
Total | (3,226) | (1,712) | (1,014) |
Income tax expense | $ 23,557 | $ 20,131 | $ 29,051 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate | |||
Income tax expense at statutory rate | 35.00% | 35.00% | 35.00% |
Nondeductible expenses | 0.10% | 0.10% | 0.30% |
State tax, net of federal benefit | 3.10% | 2.90% | 4.10% |
Other | 0.00% | 0.50% | (0.10%) |
Effective tax rate | 38.20% | 38.50% | 39.30% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Asset and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Inventories | $ 1,058 | $ 1,005 |
Accrued liabilities | 5,201 | 3,853 |
Landlord incentives and deferred rents | 14,032 | 12,514 |
Equity based compensation | 2,114 | 2,662 |
Other | 53 | 57 |
Total deferred tax assets | 22,458 | 20,091 |
Deferred tax liabilities | ||
Property and equipment | (12,200) | (11,591) |
Total deferred tax liabilities | (12,200) | (11,591) |
Net deferred tax assets | $ 10,258 | $ 8,500 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Jan. 30, 2016 | |
Domestic Tax Authority [Member] | |
Income Tax Contingency [Line Items] | |
Tax Years Subject to Examination | 2,012 |
State and Local Jurisdiction [Member] | |
Income Tax Contingency [Line Items] | |
Tax Years Subject to Examination | 2,011 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details Textual) | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Revolving Credit Facility Details | |
Initiation Date | Aug. 30, 2013 |
Maximum Borrowing Capacity | $ 75,000,000 |
Line Of Credit Availability For Letters Of Credit | $ 10,000,000 |
Maturity Date | Aug. 30, 2018 |
Line Of Credit Facility Optional Additional Borrowing Capacity | $ 25,000,000 |
Amount Outstanding under the Revolving Credit Facility | $ 0 |
Minimum [Member] | |
Revolving Credit Facility Details | |
Unused Commitment Fee Rate | 0.25% |
Maximum [Member] | |
Revolving Credit Facility Details | |
Unused Commitment Fee Rate | 0.38% |
Base Rate [Member] | |
Revolving Credit Facility Details | |
Percentage Added To Federal Funds Rate | 0.50% |
Percentage Added to One Month LIBOR Rate | 1.00% |
Base Rate [Member] | Minimum [Member] | |
Revolving Credit Facility Details | |
Applicable Margin Rate | 0.75% |
Base Rate [Member] | Maximum [Member] | |
Revolving Credit Facility Details | |
Applicable Margin Rate | 1.25% |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |
Revolving Credit Facility Details | |
Applicable Margin Rate | 1.75% |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |
Revolving Credit Facility Details | |
Applicable Margin Rate | 2.25% |
Share Repurchases (Details Text
Share Repurchases (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 2 Months Ended | 12 Months Ended | ||||
Mar. 18, 2016 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Mar. 15, 2016 | Sep. 03, 2013 | |
Treasury Stock Disclosure [Line Items] | ||||||
Amount Authorized Under the Stock Repurchase Program | $ 100,000 | |||||
Average Cost Per Share of Treasury Stock Acquired | $ 14.70 | $ 18.49 | $ 18.95 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 16,800 | |||||
Treasury Stock, Shares, Acquired | 1.6 | 0.3 | 2.9 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 23,173 | $ 5,270 | $ 54,873 | |||
Subsequent Event [Member] | Previous Repurchase Plan [Member] | ||||||
Treasury Stock Disclosure [Line Items] | ||||||
Average Cost Per Share of Treasury Stock Acquired | $ 18.05 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 5,700 | |||||
Treasury Stock, Shares, Acquired | 0.6 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 11,100 | |||||
Subsequent Event [Member] | New Repurchase Plan [Member] | ||||||
Treasury Stock Disclosure [Line Items] | ||||||
Amount Authorized Under the Stock Repurchase Program | $ 100,000 | |||||
Treasury Stock, Shares, Acquired | 0 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Roll forward) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jan. 30, 2016USD ($)$ / sharesshares | |
Stock options rollfoward | |
Stock options outstanding (in shares) as of January 31, 2015 | shares | 1,873 |
Granted (in shares) | shares | 81 |
Exercised (in shares) | shares | (100) |
Forfeited (in shares) | shares | (82) |
Expired (in shares) | shares | (253) |
Stock options outstanding (in shares) as of January 30, 2016 | shares | 1,519 |
Stock options exercisable (in shares) at January 30, 2016 | shares | 303 |
Weighted Average Exercise Price of Stock Options | |
Weighted average exercise price, options outstanding as of January 31, 2015 | $ / shares | $ 15.83 |
Weighted average exercise price, options granted | $ / shares | 14.76 |
Weighted average exercise price, options exercised | $ / shares | 4.98 |
Weighted average exercise price, options forfeited | $ / shares | 24.73 |
Weighted average exercise price, options expired | $ / shares | 30.62 |
Weighted average exercise price, options outstanding as of January 30, 2016 | $ / shares | 13.55 |
Weighted average exercise price, options exercisable as of January 30, 2016 | $ / shares | $ 16.15 |
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | |
Weighted average remaining contractual life of stock options outstanding as of January 30, 2016 | 8 years |
Weighted average remaining contractual life of stock options exercisable as of January 30, 2016 | 6 years |
Intrinsic value of stock options outstanding as of January 30, 2016 | $ | $ 8,892 |
Intrinsic value of stock options exercisable as of January 30, 2016 | $ | $ 1,767 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions) (Details) | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 54.00% | ||
Expected term (in years) | [2] | 6 years 6 months | ||
Risk-free interest rate | [3] | 1.90% | ||
Expected dividend yield | [4] | 0.00% | 0.00% | 0.00% |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 60.30% | 61.30% | |
Expected term (in years) | [2] | 7 years 6 months | 6 years 6 months | |
Risk-free interest rate | [3] | 2.00% | 2.00% | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 57.00% | 59.70% | |
Expected term (in years) | [2] | 6 years | 6 years | |
Risk-free interest rate | [3] | 1.90% | 1.00% | |
[1] | Prior to fiscal year 2015, expected volatility is estimated using historical and implied volatilities of similar entities whose share prices are publicly available, including Company specific data. Beginning in fiscal year 2015, volatility was estimated using the historical volatility of the Company’s own common stock. | |||
[2] | Due to lack of sufficient historical data, the expected term was determined using the “simplified method” as allowed by SEC Staff Accounting Bulletin Topic 14D2. | |||
[3] | The risk-free interest rate was determined based on the rate of Treasury instruments with maturities similar to those of the expected term of the award being valued. | |||
[4] | The expected dividend yield was based on the Company’s expectations of not paying dividends on its common stock for the foreseeable future. |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stocks Roll forward) (Details) shares in Thousands | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Restricted Stock Rollfoward | |
Non-vested restricted stocks as of January 31, 2015 | shares | 40 |
Granted | shares | 145 |
Forfeited | shares | (68) |
Non-vested restricted stocks as of January 30, 2016 | shares | 117 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, non-vested restricted stocks as of January 31, 2015 | $ / shares | $ 14.99 |
Weighted average grant date fair value, restricted stock granted | $ / shares | 15.48 |
Weighted average grant date fair value, restricted stock forfeited | $ / shares | 15.42 |
Weighted average grant date fair value, non-vested restricted stocks as of January 30, 2016 | $ / shares | $ 15.35 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Stock-based Compensation Disclosures | |||
Stock-based Compensation | $ 2.9 | $ 2.7 | $ 3.8 |
Number of options granted | 81,000 | ||
Number of restricted stock granted | 145,000 | ||
Employee Stock Option [Member] | |||
Stock-based Compensation Disclosures | |||
Aggregate Intrinsic Value of Options Exercised | $ 1.2 | $ 2.8 | $ 20.8 |
Unrecognized Compensation Cost Related to Stock Options | $ 6.1 | ||
Weighted Average Period Over Which Unrecognized Compensation Costs Related to Non-vested Awards will be Recognized (in years) | 3 years | ||
Weighted-average Grant date fair value of Stock Options, Granted | $ 8.44 | $ 6.04 | $ 14.15 |
Employee Stock Option [Member] | Chief Executive Officer [Member] | |||
Stock-based Compensation Disclosures | |||
Total Grant Date Fair Value Options Granted | $ 5.9 | ||
Number of options granted | 1,000,000 | ||
Restricted Stock [Member] | |||
Stock-based Compensation Disclosures | |||
Weighted Average Period Over Which Unrecognized Compensation Costs Related to Non-vested Awards will be Recognized (in years) | 2 years | ||
Stock-based Compensation | $ 0.5 | $ 0.1 | $ 0 |
Unrecognized compensation cost related to restricted stocks | $ 1.5 | ||
Restricted Stock [Member] | March 2015 Grant [Member] | |||
Stock-based Compensation Disclosures | |||
Number of restricted stock granted | 85,000 | ||
Restricted Stock [Member] | April 2014 Grants [Member] | |||
Stock-based Compensation Disclosures | |||
Number of restricted stock granted | 30,000 | ||
Restricted Stock [Member] | Performance Conditions [Member] | Minimum [Member] | |||
Stock-based Compensation Disclosures | |||
Percent of Target Shares that May Vest | 0.00% | ||
Restricted Stock [Member] | Performance Conditions [Member] | Maximum [Member] | |||
Stock-based Compensation Disclosures | |||
Percent of Target Shares that May Vest | 150.00% | ||
Restricted Stock [Member] | Service condition [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 3 years | ||
Stock Incentive Plan 2010 [Member] | |||
Stock-based Compensation Disclosures | |||
Contractual Term | 10 years | ||
Stock Incentive Plan 2010 [Member] | Minimum [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 4 years | ||
Stock Incentive Plan 2010 [Member] | Maximum [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 5 years | ||
Stock Incentive Plan 2011 [Member] | |||
Stock-based Compensation Disclosures | |||
Shares Authorized for Issuance | 3,175,365 | ||
Contractual Term | 10 years | ||
Stock Incentive Plan 2011 [Member] | Minimum [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 3 years | ||
Stock Incentive Plan 2011 [Member] | Maximum [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 5 years | ||
Stock Incentive Plan 2015 [Member] | |||
Stock-based Compensation Disclosures | |||
Shares Authorized for Issuance | 1,247,589 | ||
Remaining Shares Available for Grant | 1,300,000 | ||
Contractual Term | 10 years | ||
Stock Incentive Plan 2015 [Member] | Minimum [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 3 years | ||
Stock Incentive Plan 2015 [Member] | Maximum [Member] | |||
Stock-based Compensation Disclosures | |||
Vesting Term | 5 years |
Employee Benefits (Details Text
Employee Benefits (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2013 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Minimum Age Requirement to Participate in the Plan | 21 years | |||
Minimum Period of Service Required to Participate in the Plan | 12 months | 6 months | ||
Company's Matching Contribution | $ 0.5 | $ 0.5 | $ 0.3 | |
Profit Sharing Contribution | $ 0 | $ 0 | $ 0 | |
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Maximum Employer Contribution (Percentage) | 4.00% |
Commitments and Contingencies43
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Jan. 30, 2016USD ($) |
Future Minimum Payments [Abstract] | |
2,016 | $ 40,321 |
2,017 | 40,184 |
2,018 | 38,714 |
2,019 | 36,013 |
2,020 | 30,149 |
Thereafter | 69,888 |
Total | $ 255,269 |
Commitments and Contingencies44
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Leases, Operating [Abstract] | |||
Lease Expiration Year | 2,027 | ||
Rent expense | $ 35.3 | $ 30.1 | $ 26.3 |
Minimum [Member] | |||
Leases, Operating [Abstract] | |||
Lease renewal term option | 3 years | ||
Maximum [Member] | |||
Leases, Operating [Abstract] | |||
Lease renewal term option | 5 years |
Segment Reporting (Sales by Mer
Segment Reporting (Sales by Merchandise Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Merchandise sales | $ 438,347 | $ 376,738 | $ 339,523 | |||||||||
Others | [1] | 1,030 | 759 | 802 | ||||||||
Net sales | $ 134,605 | $ 103,728 | $ 106,033 | $ 95,011 | $ 107,644 | $ 87,110 | $ 97,319 | $ 85,424 | 439,377 | 377,497 | 340,325 | |
Apparel [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Merchandise sales | 212,371 | 180,736 | 163,946 | |||||||||
Jewelry [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Merchandise sales | 96,337 | 81,751 | 81,186 | |||||||||
Accessories [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Merchandise sales | 71,252 | 65,270 | 56,516 | |||||||||
Gifts [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Merchandise sales | $ 58,387 | $ 48,981 | $ 37,875 | |||||||||
[1] | Includes gift card breakage income, shipping and change in return reserve. |
Quarterly Financial Data (Una46
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net sales | $ 134,605 | $ 103,728 | $ 106,033 | $ 95,011 | $ 107,644 | $ 87,110 | $ 97,319 | $ 85,424 | $ 439,377 | $ 377,497 | $ 340,325 |
Gross profit | 66,137 | 48,366 | 50,308 | 44,893 | 49,246 | 41,185 | 45,315 | 41,832 | 209,704 | 177,578 | 176,065 |
Income from operations | 24,172 | 11,080 | 15,175 | 11,890 | 10,717 | 11,375 | 16,662 | 14,020 | 62,317 | 52,774 | 74,270 |
Net income | $ 14,656 | $ 6,951 | $ 9,304 | $ 7,241 | $ 5,971 | $ 7,270 | $ 10,307 | $ 8,560 | $ 38,152 | $ 32,108 | $ 44,839 |
Basic earnings per common share (in dollars per share) | $ 0.36 | $ 0.16 | $ 0.22 | $ 0.17 | $ 0.14 | $ 0.17 | $ 0.24 | $ 0.20 | $ 0.91 | $ 0.76 | $ 1.03 |
Diluted earnings per common share (in dollars per share) | $ 0.35 | $ 0.16 | $ 0.22 | $ 0.17 | $ 0.14 | $ 0.17 | $ 0.24 | $ 0.20 | $ 0.91 | $ 0.76 | $ 1.02 |