Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 29, 2016 | Nov. 15, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 29, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Francesca's Holdings CORP | |
Entity Central Index Key | 1,399,935 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | FRAN | |
Entity Common Stock, Shares Outstanding | 37,781,704 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 24,725 | $ 56,224 | $ 42,015 |
Accounts receivable | 8,218 | 9,580 | 8,683 |
Inventories | 42,774 | 31,541 | 43,885 |
Deferred income taxes | 5,709 | 6,411 | 5,737 |
Prepaid expenses and other current assets | 7,745 | 7,013 | 6,023 |
Total current assets | 89,171 | 110,769 | 106,343 |
Property and equipment, net | 82,992 | 77,894 | 79,017 |
Deferred income taxes | 4,425 | 3,847 | 6,659 |
Other assets, net | 1,370 | 1,067 | 1,656 |
TOTAL ASSETS | 177,958 | 193,577 | 193,675 |
Current liabilities: | |||
Accounts payable | 16,550 | 14,305 | 15,933 |
Accrued liabilities | 16,629 | 16,328 | 14,817 |
Total current liabilities | 33,179 | 30,633 | 30,750 |
Landlord incentives and deferred rent | 38,821 | 36,552 | 37,540 |
Total liabilities | 72,000 | 67,185 | 68,290 |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock - $.01 par value, 80.0 million shares authorized; 46.1 million, 45.9 million and 45.5 million shares issued at October 29, 2016, January 30, 2016 and October 31, 2015, respectively. | 461 | 459 | 455 |
Additional paid-in capital | 107,908 | 107,693 | 106,722 |
Retained earnings | 128,922 | 101,556 | 86,900 |
Treasury stock, at cost - 8.3 million, 4.8 million and 3.8 million shares held at October 29, 2016, January 30, 2016 and October 31, 2015, respectively. | (131,333) | (83,316) | (68,692) |
Total stockholders’ equity | 105,958 | 126,392 | 125,385 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 177,958 | $ 193,577 | $ 193,675 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Oct. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80 | 80 | 80 |
Common stock, shares issued | 46.1 | 45.9 | 45.5 |
Treasury stock, shares | 8.3 | 4.8 | 3.8 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Net sales | $ 119,470 | $ 103,728 | $ 340,843 | $ 304,772 |
Cost of goods sold and occupancy costs | 61,843 | 55,362 | 180,149 | 161,205 |
Gross profit | 57,627 | 48,366 | 160,694 | 143,567 |
Selling, general and administrative expenses | 41,872 | 37,286 | 116,353 | 105,422 |
Income from operations | 15,755 | 11,080 | 44,341 | 38,145 |
Interest expense | (131) | (122) | (353) | (344) |
Other income (expense) | 79 | 29 | 118 | (91) |
Income before income tax expense | 15,703 | 10,987 | 44,106 | 37,710 |
Income tax expense | 6,009 | 4,036 | 16,740 | 14,214 |
Net income | $ 9,694 | $ 6,951 | $ 27,366 | $ 23,496 |
Basic earnings per common share (in dollars per share) | $ 0.26 | $ 0.16 | $ 0.7 | $ 0.55 |
Diluted earnings per common share (in dollars per share) | $ 0.26 | $ 0.16 | $ 0.7 | $ 0.55 |
Weighted average shares outstanding: | ||||
Basic shares (in shares) | 37,552 | 42,148 | 38,831 | 42,262 |
Diluted shares (in shares) | 37,675 | 42,246 | 38,945 | 42,365 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Oct. 29, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Outstanding | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at cost |
Balance at Jan. 30, 2016 | $ 126,392 | $ 459 | $ 107,693 | $ 101,556 | $ (83,316) | |
Balance (in shares) at Jan. 30, 2016 | 41,095 | |||||
Net income | 27,366 | 0 | 0 | 27,366 | 0 | |
Stock-based compensation | 18 | 18 | 0 | 0 | ||
Restricted stocks issued, net of forfeitures | 2 | 2 | 0 | 0 | 0 | |
Restricted stocks issued, net of forfeitures (in shares) | 202 | |||||
Stock options exercised | 403 | 0 | 403 | 0 | 0 | |
Stock options exercised (in shares) | 40 | |||||
Tax effect of stock-based compensation | (206) | (206) | 0 | 0 | ||
Repurchases of common stock | $ (48,017) | 0 | 0 | 0 | (48,017) | |
Repurchases of common stock (in shares) | (3,506) | (3,506) | ||||
Balance at Oct. 29, 2016 | $ 105,958 | $ 461 | $ 107,908 | $ 128,922 | $ (131,333) | |
Balance (in shares) at Oct. 29, 2016 | 37,831 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Cash Flows Provided by Operating Activities: | ||
Net income | $ 27,366 | $ 23,496 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,415 | 12,361 |
Stock-based compensation expense | 18 | 2,416 |
Excess tax benefit from stock-based compensation | (2) | (81) |
Impairment charges | 66 | 0 |
Loss on sale of assets | 265 | 360 |
Deferred income taxes | (81) | (5,374) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,364 | 3,677 |
Inventories | (11,233) | (20,084) |
Prepaid expenses and other assets | (1,294) | (66) |
Accounts payable | 2,015 | 6,086 |
Accrued liabilities | 301 | 2,913 |
Landlord incentives and deferred rent | 2,269 | 4,663 |
Net cash provided by operating activities | 35,469 | 30,367 |
Cash Flows Used in Investing Activities: | ||
Purchases of property and equipment | (18,666) | (19,850) |
Other | 8 | 12 |
Net cash used in investing activities | (18,658) | (19,838) |
Cash Flows Used in Financing Activities: | ||
Repurchases of common stock | (48,715) | (7,872) |
Proceeds from the exercise of stock options | 403 | 206 |
Excess tax benefit from stock-based compensation | 2 | 81 |
Net cash used in financing activities | (48,310) | (7,585) |
Net (decrease) increase in cash and cash equivalents | (31,499) | 2,944 |
Cash and cash equivalents, beginning of year | 56,224 | 39,071 |
Cash and cash equivalents, end of period | 24,725 | 42,015 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for income taxes | 13,014 | 14,909 |
Interest paid | $ 143 | $ 142 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Business Francesca’s Holdings Corporation is a holding company incorporated in 2007 669 48 The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position, results of operations, changes in equity, and cash flows at the dates and for the periods presented. The financial information as of January 30, 2016 was derived from the Company’s audited consolidated financial statements and notes thereto as of and for the fiscal year ended January 30, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 25, 2016. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the fiscal year ended January 30, 2016 included in the Company’s Annual Report on Form 10-K. Due to seasonal variations in the retail industry, interim results are not necessarily indicative of results that may be expected for any other interim period or for a full year. The accompanying unaudited consolidated financial statements include the accounts of the Company and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company maintains its accounts on a 52- or 53-week year ending on the Saturday closest to January 31st. Fiscal years 2016 and 2015 each include 52 weeks of operations. The fiscal quarters ended October 29, 2016 and October 31, 2015 refer to the thirteen week periods ended as of those dates. The year-to-date periods ended October 29, 2016 and October 31, 2015 refer to the thirty-nine week periods ended as of those dates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, net of estimated sales returns, and expenses during the reporting periods. Actual results could differ materially from those estimates. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-9, “Improvements to Employee Share-Based Payment Arrangements”, which amends Accounting Standards Codification (“ASC”) Topic 718, Stock Compensation. The new guidance intends to simplify several aspects of the accounting for share-based payments, including income tax consequences, classification of awards as either equity or liabilities, forfeitures and classification on the statement of cash flows. ASU 2016-9 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early adoption permitted. The new guidance includes the following adoption methods depending on the provision being adopted: (1) amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method, (2) amendments related to the presentation of employee taxes paid on the statement of cash flows should be applied retrospectively, (3) amendments requiring recognition of excess tax benefits and deficiencies in the income statement should be applied prospectively, and (4) amendments related to the presentation of excess tax benefits on the statement of cash flows should be applied either prospectively or retrospectively. The potential impact that the adoption of ASU 2016-9 will have on the Company’s financial statements during and after the period of adoption are dependent, in part, upon factors that are not fully controllable or predictable by the Company, including future vesting of stock-based awards, market price of the Company’s common stock, timing of employee exercises of vested stock options and achievement of performance criteria that affect the vesting of performance-based awards. However, based on the market price of the Company’s common stock, its outstanding restricted stock awards and unexercised stock options as of November 2, 2016, the Company anticipates that the adoption of this pronouncement will result in lower income tax expense in fiscal year 2017 and this anticipated income tax benefit will be reported as a component of cash flows from operating activities. Additionally, the Company will elect to recognize forfeitures as they occur which will result in approximately $ 0.1 In March 2016, the FASB issued ASU 2016-4 “Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products.” The new guidance allows a company to derecognize amounts related to expected breakage to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. 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. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. 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.” This pronouncement requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods and services. In August 2015, the FASB deferred the effective date of ASU 2014-09. Accordingly, this standard is effective for reporting periods beginning on or after December 15, 2017, including interim periods within that fiscal year, with early adoption permitted for interim and annual periods beginning on or after December 15, 2016. Since the original issuance of ASU 2014-09, the FASB has issued several amendments and updates to this guidance, and additional amendments and updates are currently being considered by the FASB. The Company is currently evaluating the impact of adopting the new guidance, along with the related amendments and updates, on the consolidated financial statements. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Oct. 29, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. 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 grants using the treasury stock method. Thirteen Weeks Ended Thirty-Nine Weeks Ended October 29, October 31, October 29, October 31, (in thousands, except per share data) Numerator: Net income $ 9,694 $ 6,951 $ 27,366 $ 23,496 Denominator: Weighted-average common shares outstanding - basic 37,552 42,148 38,831 42,262 Options and other dilutive securities 123 98 114 103 Weighted-average common shares outstanding - diluted 37,675 42,246 38,945 42,365 Per common share: Basic earnings per common share $ 0.26 $ 0.16 $ 0.70 $ 0.55 Diluted earnings per common share $ 0.26 $ 0.16 $ 0.70 $ 0.55 Potentially issuable shares under the Company’s stock-based compensation plans amounting to 0.3 0.4 0.3 1.1 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 29, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. 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. The carrying amount reflected in the consolidated balance sheets of financial assets and liabilities, which includes cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximated their fair values due to the short term nature of these financial assets and liabilities. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes The provision for income taxes is based on the Company’s current estimate of the annual effective tax rate. The effective income tax rates for the thirteen and thirty-nine weeks ended October 29, 2016 were 38.3 38.0 36.7 37.7 |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Oct. 29, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | 5. Revolving Credit Facility On August 30, 2013 75.0 10.0 August 30, 2018 25.0 The credit facility contains customary events of default and requires the Borrower to comply with certain financial covenants. As of October 29, 2016, the Borrower was in compliance with all covenants under the credit facility. The credit facility restricts the amount of dividends the Borrower can pay; provided that the Borrower 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 the Borrower is in pro forma compliance with a maximum secured leverage ratio. At October 29, 2016, the Borrower would have met the conditions for paying dividends out of the available investment basket. All obligations under the credit facility are secured by substantially all the assets of the Borrower and any subsidiary guarantor, if any. All obligations under the facility are unconditionally guaranteed by, subject to certain exceptions, Francesca’s LLC and each of the Borrower’s existing and future direct and indirect wholly-owned domestic subsidiaries. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Oct. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. 0.9 0.8 2.4 Resignation of the Chairman, President and Chief Executive Officer On May 15, 2016, Michael W. Barnes resigned from his positions as Chairman, President and CEO of the Company. As a result of such resignation, the following outstanding and unvested stock-based awards previously granted to him were forfeited. · Market- and service-based employee stock options providing Mr. Barnes with the right to purchase 1.0 · Performance-and service-based restricted stock awards providing Mr. Barnes with the contingent right to receive 0.3 The resignation of Mr. Barnes resulted in the reversal of $2.6 million of previously accrued stock-based compensation expense related to these unvested awards. This reversal was recorded during the thirteen weeks ended July 30, 2016. Performance-based restricted stock awards The Company granted approximately 358,000 115,000 0 150 In connection with the performance-based restricted stock awards, the Company recognized $ 0.4 0.6 0.2 0.3 |
Share Repurchases
Share Repurchases | 9 Months Ended |
Oct. 29, 2016 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchases | 7. Share Repurchases On September 3, 2013, the Company’s Board of Directors authorized a $ 100.0 On March 15, 2016, the Company’s Board of Directors authorized an additional $ 100.0 Thirteen Weeks Ended Thirty-Nine Weeks Ended October 29, October 31, October 29, October 31, (in thousands, except per share data) Number of shares repurchased 263 666 3,506 666 Total cost of shares repurchased $ 4,194 $ 8,549 $ 48,017 $ 8,549 Average price per share (including brokers’ commission) $ 15.94 $ 12.83 $ 13.70 $ 12.83 At October 29, 2016, there was $ 68.8 Subsequent to October 29, 2016 through December 2, 2016, the Company repurchased 144,000 shares of common stock for approximately $2.4 million or an average price (including brokers’ commission) of $16.41 per share. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. 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 2028 three five Fiscal year Amount (In thousands) Remainder of 2016 $ 10,891 2017 43,263 2018 42,136 2019 39,339 2020 33,631 Thereafter 88,360 $ 257,620 Legal Proceedings The Company, from time to time, is subject to various claims and legal proceedings, including employment claims, wage and hour claims, intellectual property claims, contractual and commercial disputes and other matters that arise in the ordinary course of business. While the outcome of any such claim cannot be predicted with certainty, the Company does not believe that the outcome of these matters will have a material adverse effect on the Company’s business, results of operations or financial condition. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position, results of operations, changes in equity, and cash flows at the dates and for the periods presented. The financial information as of January 30, 2016 was derived from the Company’s audited consolidated financial statements and notes thereto as of and for the fiscal year ended January 30, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 25, 2016. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the fiscal year ended January 30, 2016 included in the Company’s Annual Report on Form 10-K. Due to seasonal variations in the retail industry, interim results are not necessarily indicative of results that may be expected for any other interim period or for a full year. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year The Company maintains its accounts on a 52- or 53-week year ending on the Saturday closest to January 31st. Fiscal years 2016 and 2015 each include 52 weeks of operations. The fiscal quarters ended October 29, 2016 and October 31, 2015 refer to the thirteen week periods ended as of those dates. The year-to-date periods ended October 29, 2016 and October 31, 2015 refer to the thirty-nine week periods ended as of those dates. |
Management Estimates and Assumptions | Management Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, net of estimated sales returns, and expenses during the reporting periods. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-9, “Improvements to Employee Share-Based Payment Arrangements”, which amends Accounting Standards Codification (“ASC”) Topic 718, Stock Compensation. The new guidance intends to simplify several aspects of the accounting for share-based payments, including income tax consequences, classification of awards as either equity or liabilities, forfeitures and classification on the statement of cash flows. ASU 2016-9 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early adoption permitted. The new guidance includes the following adoption methods depending on the provision being adopted: (1) amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method, (2) amendments related to the presentation of employee taxes paid on the statement of cash flows should be applied retrospectively, (3) amendments requiring recognition of excess tax benefits and deficiencies in the income statement should be applied prospectively, and (4) amendments related to the presentation of excess tax benefits on the statement of cash flows should be applied either prospectively or retrospectively. The potential impact that the adoption of ASU 2016-9 will have on the Company’s financial statements during and after the period of adoption are dependent, in part, upon factors that are not fully controllable or predictable by the Company, including future vesting of stock-based awards, market price of the Company’s common stock, timing of employee exercises of vested stock options and achievement of performance criteria that affect the vesting of performance-based awards. However, based on the market price of the Company’s common stock, its outstanding restricted stock awards and unexercised stock options as of November 2, 2016, the Company anticipates that the adoption of this pronouncement will result in lower income tax expense in fiscal year 2017 and this anticipated income tax benefit will be reported as a component of cash flows from operating activities. Additionally, the Company will elect to recognize forfeitures as they occur which will result in approximately $ 0.1 In March 2016, the FASB issued ASU 2016-4 “Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products.” The new guidance allows a company to derecognize amounts related to expected breakage to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. 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. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. 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.” This pronouncement requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods and services. In August 2015, the FASB deferred the effective date of ASU 2014-09. Accordingly, this standard is effective for reporting periods beginning on or after December 15, 2017, including interim periods within that fiscal year, with early adoption permitted for interim and annual periods beginning on or after December 15, 2016. Since the original issuance of ASU 2014-09, the FASB has issued several amendments and updates to this guidance, and additional amendments and updates are currently being considered by the FASB. The Company is currently evaluating the impact of adopting the new guidance, along with the related amendments and updates, on the consolidated financial statements. |
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 grants using the treasury stock method. |
Stock-Based Compensation | Stock-based Compensation |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table summarizes the potential dilution that could occur if options to acquire common stock were exercised or if restricted stock grants were fully vested and reconciles the weighted-average common shares outstanding used in the computation of basic and diluted earnings per share. Thirteen Weeks Ended Thirty-Nine Weeks Ended October 29, October 31, October 29, October 31, (in thousands, except per share data) Numerator: Net income $ 9,694 $ 6,951 $ 27,366 $ 23,496 Denominator: Weighted-average common shares outstanding - basic 37,552 42,148 38,831 42,262 Options and other dilutive securities 123 98 114 103 Weighted-average common shares outstanding - diluted 37,675 42,246 38,945 42,365 Per common share: Basic earnings per common share $ 0.26 $ 0.16 $ 0.70 $ 0.55 Diluted earnings per common share $ 0.26 $ 0.16 $ 0.70 $ 0.55 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shares Repurchased | Thirteen Weeks Ended Thirty-Nine Weeks Ended October 29, October 31, October 29, October 31, (in thousands, except per share data) Number of shares repurchased 263 666 3,506 666 Total cost of shares repurchased $ 4,194 $ 8,549 $ 48,017 $ 8,549 Average price per share (including brokers’ commission) $ 15.94 $ 12.83 $ 13.70 $ 12.83 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 29, 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 October 29, 2016, are as follows: Fiscal year Amount (In thousands) Remainder of 2016 $ 10,891 2017 43,263 2018 42,136 2019 39,339 2020 33,631 Thereafter 88,360 $ 257,620 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Details Textual) $ in Millions | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2017USD ($) | |
Year of Incorporation | 2,007 | ||
State of Incorporation | Delaware | ||
Number of Boutiques in Operation | 669 | ||
Number of States in which Entity Operates | 48 | ||
Accounting Standards Update 2016-09 [Member] | Scenario, Forecast [Member] | |||
Cumulative-effect adjustment to the beginning balance of retained earnings upon adoption of ASU 2016-09 | $ 0.1 | ||
Fiscal Year [Member] | |||
Length of Fiscal Period | 364 days | 364 days | |
Fiscal Year [Member] | Minimum [Member] | |||
Length of Fiscal Period | 364 days | ||
Fiscal Year [Member] | Maximum [Member] | |||
Length of Fiscal Period | 371 days | ||
Year-to-Date [Member] | |||
Length of Fiscal Period | 273 days | 273 days | |
Third Quarter [Member] | |||
Length of Fiscal Period | 91 days | 91 days |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation Table) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Numerator: | ||||
Net income | $ 9,694 | $ 6,951 | $ 27,366 | $ 23,496 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 37,552 | 42,148 | 38,831 | 42,262 |
Options and other dilutive securities (in shares) | 123 | 98 | 114 | 103 |
Weighted-average common shares outstanding - diluted (in shares) | 37,675 | 42,246 | 38,945 | 42,365 |
Per common share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.26 | $ 0.16 | $ 0.7 | $ 0.55 |
Diluted earnings per common share (in dollars per share) | $ 0.26 | $ 0.16 | $ 0.7 | $ 0.55 |
Earnings per Share (Details Tex
Earnings per Share (Details Textual) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Securities Excluded from Computation of Diluted Weighted Average Common Stock Outstanding | 0.3 | 0.4 | 0.3 | 0.4 |
Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Securities Excluded from Computation of Diluted Weighted Average Common Stock Outstanding | 0.3 | 1.1 | 0.3 | 1.1 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Effective Income Tax Rate | 38.30% | 36.70% | 38.00% | 37.70% |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details Textual) $ in Millions | 9 Months Ended |
Oct. 29, 2016USD ($) | |
Revolving Credit Facility Details | |
Initiation Date | Aug. 30, 2013 |
Maximum Borrowing Capacity | $ 75 |
Line Of Credit Availability For Letters Of Credit | $ 10 |
Maturity Date | Aug. 30, 2018 |
Line Of Credit Facility Optional Additional Borrowing Capacity | $ 25 |
Amount Outstanding under the Revolving Credit Facility | $ 0 |
Stock-based Compensation (Detai
Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
May 15, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Oct. 29, 2016 | Jul. 30, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Stock-based Compensation Disclosures | ||||||||
Share-based Compensation | $ 900 | $ 800 | $ 18 | $ 2,416 | ||||
Performance Shares [Member] | ||||||||
Stock-based Compensation Disclosures | ||||||||
Number of performance-based restricted stocks granted | 358,000 | 115,000 | ||||||
Share-based Compensation | $ 400 | $ 200 | $ 600 | $ 300 | ||||
Performance Shares [Member] | Performance Conditions [Member] | Minimum [Member] | ||||||||
Stock-based Compensation Disclosures | ||||||||
Percent of Target Shares that May Vest | 0.00% | |||||||
Performance Shares [Member] | Performance Conditions [Member] | Maximum [Member] | ||||||||
Stock-based Compensation Disclosures | ||||||||
Percent of Target Shares that May Vest | 150.00% | |||||||
Chief Executive Officer [Member] | ||||||||
Stock-based Compensation Disclosures | ||||||||
Share-based Compensation | $ (2,600) | $ (2,600) | ||||||
Chief Executive Officer [Member] | Performance Shares [Member] | ||||||||
Stock-based Compensation Disclosures | ||||||||
Number of unvested performance-based restricted stock forfeited due to resignation of CEO | 300,000 | |||||||
Chief Executive Officer [Member] | Employee Stock Option [Member] | ||||||||
Stock-based Compensation Disclosures | ||||||||
Number of unvested stock options forfeited due to resignation of CEO | 1,000,000 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 02, 2016 | Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Treasury Stock Disclosure [Line Items] | |||||
Number of shares repurchased | 263,000 | 666,000 | 3,506,000 | 666,000 | |
Total cost of treasury stock acquired | $ 4,194 | $ 8,549 | $ 48,017 | $ 8,549 | |
Average price per share (including brokers’ commission) | $ 15.94 | $ 12.83 | $ 13.70 | $ 12.83 | |
Remaining amount for future repurchases | $ 68,800 | $ 68,800 | |||
Subsequent Event [Member] | |||||
Treasury Stock Disclosure [Line Items] | |||||
Number of shares repurchased | 144,000 | ||||
Total cost of treasury stock acquired | $ 2,400 | ||||
Average price per share (including brokers’ commission) | $ 16.41 | ||||
Previous Repurchase Plan [Member] | |||||
Treasury Stock Disclosure [Line Items] | |||||
Amount Authorized Under the Stock Repurchase Program | 100,000 | 100,000 | |||
New Repurchase Plan [Member] | |||||
Treasury Stock Disclosure [Line Items] | |||||
Amount Authorized Under the Stock Repurchase Program | $ 100,000 | $ 100,000 |
Commitments and Contingencies26
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Oct. 29, 2016USD ($) |
Future Minimum Payments [Abstract] | |
Remainder of 2016 | $ 10,891 |
2,017 | 43,263 |
2,018 | 42,136 |
2,019 | 39,339 |
2,020 | 33,631 |
Thereafter | 88,360 |
Total | $ 257,620 |
Commitments and Contingencies27
Commitments and Contingencies (Details Textual) | 9 Months Ended |
Oct. 29, 2016 | |
Operating Leased Assets [Line Items] | |
Lease Expiration Year | 2,028 |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lease renewal term option | 3 years |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease renewal term option | 5 years |