FHC (FRAN) 10-Q 6 Jun 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	May 05, 2018	May 15, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 5, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	Francesca's Holdings CORP
Entity Central Index Key	1,399,935
Current Fiscal Year End Date	--02-02
Entity Filer Category	Accelerated Filer
Trading Symbol	FRAN
Entity Common Stock, Shares Outstanding		36,066,853

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 05, 2018	Feb. 03, 2018	Apr. 29, 2017
Current assets:
Cash and cash equivalents	$ 21,833	$ 31,331	$ 48,101
Accounts receivable	20,488	16,642	8,145
Inventories	32,728	26,816	31,365
Prepaid expenses and other current assets	10,326	9,714	9,479
Total current assets	85,375	84,503	97,090
Property and equipment, net	89,321	87,702	81,577
Deferred income taxes	7,726	9,413	15,859
Other assets, net	4,222	3,622	2,896
TOTAL ASSETS	186,644	185,240	197,422
Current liabilities:
Accounts payable	24,827	17,801	21,305
Accrued liabilities	14,634	14,654	25,085
Total current liabilities	39,461	32,455	46,390
Landlord incentives and deferred rent	37,616	38,337	38,261
Total liabilities	77,077	70,792	84,651
Commitments and contingencies
Stockholders’ equity:
Common stock - $0.01 par value, 80.0 million shares authorized; 47.1 million, 46.3 million and 46.3 million shares issued at May 5, 2018, February 3, 2018 and April 29, 2017, respectively.	471	463	463
Additional paid-in capital	111,823	111,439	110,267
Retained earnings	157,294	159,045	147,817
Treasury stock, at cost - 11.1 million, 10.3 million and 9.2 million shares at May 5, 2018, February 3, 2018 and April 29, 2017, respectively.	(160,021)	(156,499)	(145,776)
Total stockholders’ equity	109,567	114,448	112,771
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 186,644	$ 185,240	$ 197,422

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	May 05, 2018	Feb. 03, 2018	Apr. 29, 2017
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	47.1	46.3	46.3
Treasury stock, shares	11.1	10.3	9.2

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 05, 2018	Apr. 29, 2017
Net sales	$ 100,405	$ 107,689
Cost of goods sold and occupancy costs	62,042	59,006
Gross profit	38,363	48,683
Selling, general and administrative expenses	42,883	41,281
(Loss) income from operations	(4,520)	7,402
Interest expense	(117)	(113)
Other income (expense)	150	(25)
(Loss) income before income tax (benefit) expense	(4,487)	7,264
Income tax (benefit) expense	(602)	2,931
Net (loss) income	$ (3,885)	$ 4,333
Basic (loss) earnings per common share	$ (0.11)	$ 0.12
Diluted (loss) earnings per common share	$ (0.11)	$ 0.12
Weighted average shares outstanding:
Basic shares	34,836	36,943
Diluted shares	34,836	37,149

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders’ Equity - 3 months ended May 05, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Outstanding	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock, at cost
Balance at Feb. 03, 2018	$ 114,448		$ 463	$ 111,439	$ 159,045	$ (156,499)
Balance (in shares) at Feb. 03, 2018		35,875
Net loss	(3,885)		0	0	(3,885)	0
Stock-based compensation	418		0	418	0	0
Restricted stocks issued, net of forfeitures	0		8	(8)	0	0
Restricted stocks issued, net of forfeitures (in shares)		856
Shares withheld related to net settlement of equity awards	(26)		0	(26)	0	0
Shares withheld related to net settlement of equity awards (in shares)		(5)
Cumulative effect adjustment on adoption of new accounting standards, net of tax	2,134		0	0	2,134	0
Repurchases of common stock	$ (3,522)		0	0	0	(3,522)
Repurchases of common stock (in shares)	(659)	(659)
Balance at May. 05, 2018	$ 109,567		$ 471	$ 111,823	$ 157,294	$ (160,021)
Balance (in shares) at May. 05, 2018		36,067

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 05, 2018	Apr. 29, 2017
Cash Flows Provided by Operating Activities:
Net (loss) income	$ (3,885)	$ 4,333
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	5,912	5,101
Stock-based compensation expense	418	1,254
Loss on sale of assets	61	110
Deferred income taxes	980	(347)
Impairment charges	27	0
Changes in operating assets and liabilities:
Accounts receivable	(3,846)	(2,540)
Inventories	(5,912)	(7,407)
Prepaid expenses and other assets	(1,276)	(1,638)
Accounts payable	8,721	10,341
Accrued liabilities	2,728	(676)
Landlord incentives and deferred rent	(721)	169
Net cash provided by operating activities	3,207	8,700
Cash Flows Used in Investing Activities:
Purchases of property and equipment	(8,725)	(4,634)
Net cash used in investing activities	(8,725)	(4,634)
Cash Flows Used in Financing Activities:
Repurchases of common stock	(3,980)	(9,054)
Taxes paid related to net settlement of equity awards	0	(113)
Net cash used in financing activities	(3,980)	(9,167)
Net decrease in cash and cash equivalents	(9,498)	(5,101)
Cash and cash equivalents, beginning of year	31,331	53,202
Cash and cash equivalents, end of period	21,833	48,101
Supplemental Disclosures of Cash Flow Information:
Cash paid for income taxes	24	73
Interest paid	$ 47	$ 49

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	May 05, 2018
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 Delaware 744 47 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 February 3, 2018 was derived from the Company’s audited consolidated financial statements and notes thereto as of and for the fiscal year ended February 3, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2018. 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 February 3, 2018 included in the Company’s Annual Report on Form 10-K. Due to seasonal variations in the Company’s business, 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 year 2018 includes 52 weeks of operations while fiscal year 2017 includes 53 weeks of operations. The fiscal quarters ended May 5, 2018 and April 29, 2017 refer to the thirteen 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. The Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” on February 4, 2018 using the modified retrospective approach. Prior period amounts were not adjusted and continue to be reported in accordance with ASC 605, “Revenue Recognition.” As a result of adoption of ASC 606, the Company recorded an adjustment of $2.0 million, net of $ 0.7 Disaggregated revenue Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands) Apparel $ 49,534 $ 60,012 Jewelry 23,858 23,771 Accessories 15,484 13,981 Gifts 11,105 11,115 99,981 108,879 Others (1) 424 (1,190) $ 100,405 $ 107,689 (1) Includes gift card breakage income, shipping revenue and change in return reserve. Contract liability Contract liability consists of gift card liability. 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 Company’s gift cards do not have an expiration date. Income from gift card breakage is estimated based on historical redemption patterns and recognized over the historical redemption period. Unredeemed gift cards at the end of the prior fiscal year recognized in revenues during the thirteen weeks ended May 5, 2018 and April 29, 2017 totaled $ 1.7 2.0 0.2 0.1 Recently Adopted Accounting Pronouncements In May 2014 the FASB issued ASU 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. 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. This guidance may be adopted on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the guidance recognized at the date of initial application. Revenue Recognition Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, “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 2016-02 will be effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all public business entities upon issuance. The guidance is required to be adopted using the modified retrospective approach. The Company has selected its leasing software solution and is in the process of identifying changes to its business processes, systems and controls to support the adoption in fiscal year 2019. While the Company is still evaluating the impact of this new guidance on its consolidated financial statements, it expects that the adoption of this guidance will not have a material impact on its results of operations; however, it will result in a significant increase in total assets and total liabilities on the Company’s balance sheet given that the Company has a significant number of leases.

(Loss) Earnings per Share

(Loss) Earnings per Share	3 Months Ended
	May 05, 2018
Earnings Per Share [Abstract]
Earnings Per Share	2. (Loss) Earnings per Share Basic (loss) earnings per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted (loss) 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 restricted stock and stock option grants using the treasury stock method. The following table summarizes the potential dilution that could occur if stock options to acquire common stock were exercised or if the restricted stock grants were fully vested and reconciles the weighted-average common shares outstanding used in the computation of basic and diluted (loss) earnings per share. Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands, except per share data) Numerator: Net (loss) income $ (3,885) $ 4,333 Denominator: Weighted-average common shares outstanding - basic 34,836 36,943 Restricted stocks and stock options - (1) 206 Weighted-average common shares outstanding - diluted 34,836 37,149 Per common share: Basic (loss) earnings per common share $ (0.11) $ 0.12 Diluted (loss) earnings per common share $ (0.11) $ 0.12 (1) Due to the Company being in a net loss position in the thirteen weeks ended May 5, 2018, no restricted stocks and stock options were included in the computation of diluted loss per share as their effect would have been anti-dilutive. Potentially issuable shares under the Company’s stock-based compensation plans amounting to 0.8 0.3 0.7 0.4

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	May 05, 2018
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	3 Months Ended
	May 05, 2018
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 weeks ended May 5, 2018 and April 29, 2017 were 13.4 40.3 11.4 9.3 The Company has not recorded any adjustment to its estimates at the end of fiscal year 2017 as a result of the enactment of the Tax Act. As the Company continues to refine and update its analysis of the Tax Act and interprets any additional guidance, it may make adjustments to the amounts that have been previously recorded. Any such adjustment will be reflected in income tax expense or benefit in fiscal year 2018.

Revolving Credit Facility

Revolving Credit Facility	3 Months Ended
	May 05, 2018
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 Francesca’s Collections to comply with certain financial covenants. As of May 5, 2018, Francesca’s Collections was in compliance with all covenants under the credit facility. The credit facility restricts the amount of dividends Francesca’s Collections can pay; provided that 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. At May 5, 2018, Francesca’s Collections 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 Francesca’s Collections and any subsidiary guarantor, if any. All obligations under the facility are unconditionally guaranteed, subject to certain exceptions, by Francesca’s LLC and each of Francesca’s Collections’ existing and future direct and indirect wholly-owned domestic subsidiaries. The Second Amended and Restated Credit Agreement was terminated in connection with the Company’s entry into a new asset based revolving credit facility on May 25, 2018. See Note 9, Subsequent Events, for additional information.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	May 05, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	6. Stock-based Compensation Stock-based compensation cost is measured at the grant date fair value and is recognized as an expense on a straight-line basis over the employee’s requisite service period. The Company recognized $ 0.4 1.3 Management Awards In March 2018 and 2017, the Company granted 0.9 0.2 50 50 65 35 0 150

Share Repurchases

Share Repurchases	3 Months Ended
	May 05, 2018
Stockholders' Equity Note [Abstract]
Share Repurchases	7. Share Repurchases On March 15, 2016, the Company’s Board of Directors authorized a $ 100.0 Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands, except per share data) Number of shares repurchased 659 609 Total cost of shares repurchased $ 3,522 $ 9,285 Average price per share (including brokers' commission) $ 5.34 $ 15.24 At May 5, 2018, there was $ 40.2

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May 05, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Operating Leases The Company leases boutique space, office space, and its distribution center under operating leases expiring in various years through the fiscal year ending 2029 Fiscal year Amount (in thousands) Remainder of 2018 $ 37,750 2019 48,373 2020 42,901 2021 36,039 2022 30,195 Thereafter 80,342 $ 275,600 Legal Proceedings On January 27, 2017, a purported collective action lawsuit entitled Meghan Magee, et al. v. Francesca’s Holdings Corp., et al. was filed in New Jersey Federal District Court against the Company for alleged violations of federal and state wage and hour laws. The Company believes that the allegations contained in the lawsuit are without merit and intends to vigorously defend itself against all claims asserted therein. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time and, as such, the Company has not recorded an accrual for any possible loss. 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.

Subsequent Events

Subsequent Events	3 Months Ended
	May 05, 2018
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events On May 25, 2018, Francesca’s Holdings Corporation (the “Holdings”), as a guarantor, certain of its subsidiaries, as borrowers (the “Borrowers”), and certain of its subsidiaries as guarantors (together with Holdings and the Borrowers, the “Loan Parties”), entered into an asset based revolving Credit Agreement (“Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and the lenders party thereto. The Credit Agreement provides for revolving commitments of $ 50.0 10.0 25.0 All obligations of each other Loan Party under the Credit Agreement are unconditionally guaranteed by Holdings and each of Holdings’ existing and future direct and indirect wholly owned domestic subsidiaries, including the Borrowers. All obligations under the Credit Agreement, and the guarantees of those obligations (as well as banking services obligations and any interest rate hedging or other swap agreements), are secured by substantially all of the assets of Holdings and each of Holdings’ existing and future direct and indirect wholly owned domestic subsidiaries. In addition, the Credit Agreement requires the Loan Parties to maintain a minimum ratio of (i) EBITDAR (as defined in the Credit Agreement) minus unfinanced capital expenditures (as defined in the Credit Agreement), to (ii) fixed charges of 1.00 to 1.00 The borrowings under the Credit Agreement bear interest at a rate equal to an applicable margin plus, at the option of the Borrowers, either (a) in the case of base rate borrowings, a rate equal to the highest of (1) the prime rate of JPMorgan Chase Bank, N.A., (2) the federal funds rate plus 1/2 of 1.00 1.50 0.50 1.25 1.75 0.20 Concurrent with entering into the Credit Agreement, the existing Second Amended and Restated Credit Agreement, as described in Note 5 to the Notes to Unaudited Consolidated Financial Statements, terminated.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May 05, 2018
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 February 3, 2018 was derived from the Company’s audited consolidated financial statements and notes thereto as of and for the fiscal year ended February 3, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2018. 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 February 3, 2018 included in the Company’s Annual Report on Form 10-K. Due to seasonal variations in the Company’s business, 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 year 2018 includes 52 weeks of operations while fiscal year 2017 includes 53 weeks of operations. The fiscal quarters ended May 5, 2018 and April 29, 2017 refer to the thirteen 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.
Revenue Recognition	Revenue Recognition The Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” on February 4, 2018 using the modified retrospective approach. Prior period amounts were not adjusted and continue to be reported in accordance with ASC 605, “Revenue Recognition.” As a result of adoption of ASC 606, the Company recorded an adjustment of $2.0 million, net of $ 0.7 Disaggregated revenue Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands) Apparel $ 49,534 $ 60,012 Jewelry 23,858 23,771 Accessories 15,484 13,981 Gifts 11,105 11,115 99,981 108,879 Others (1) 424 (1,190) $ 100,405 $ 107,689 (1) Includes gift card breakage income, shipping revenue and change in return reserve. Contract liability Contract liability consists of gift card liability. 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 Company’s gift cards do not have an expiration date. Income from gift card breakage is estimated based on historical redemption patterns and recognized over the historical redemption period. Unredeemed gift cards at the end of the prior fiscal year recognized in revenues during the thirteen weeks ended May 5, 2018 and April 29, 2017 totaled $ 1.7 2.0 0.2 0.1
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014 the FASB issued ASU 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. 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. This guidance may be adopted on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the guidance recognized at the date of initial application. Revenue Recognition Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, “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 2016-02 will be effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all public business entities upon issuance. The guidance is required to be adopted using the modified retrospective approach. The Company has selected its leasing software solution and is in the process of identifying changes to its business processes, systems and controls to support the adoption in fiscal year 2019. While the Company is still evaluating the impact of this new guidance on its consolidated financial statements, it expects that the adoption of this guidance will not have a material impact on its results of operations; however, it will result in a significant increase in total assets and total liabilities on the Company’s balance sheet given that the Company has a significant number of leases.
Earnings Per Share	(Loss) Earnings per Share Basic (loss) earnings per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted (loss) 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 restricted stock and stock option grants using the treasury stock method.
Stock-Based Compensation	Stock-based Compensation Stock-based compensation cost is measured at the grant date fair value and is recognized as an expense on a straight-line basis over the employee’s requisite service period. The Company recognized $0.4 million and $1.3 million of stock-based compensation expense in the thirteen weeks ended May 5, 2018 and April 29, 2017, respectively.

Disaggregated Revenues (Table)

Disaggregated Revenues (Table)	3 Months Ended
	May 05, 2018
Accounting Policies [Abstract]
Schedule of Sales by Major Merchandise Categories	Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands) Apparel $ 49,534 $ 60,012 Jewelry 23,858 23,771 Accessories 15,484 13,981 Gifts 11,105 11,115 99,981 108,879 Others (1) 424 (1,190) $ 100,405 $ 107,689 (1) Includes gift card breakage income, shipping revenue and change in return reserve.

(Loss) Earnings per Share (Tabl

(Loss) Earnings per Share (Tables)	3 Months Ended
	May 05, 2018
Earnings Per Share [Abstract]
Earnings Per Share	The following table summarizes the potential dilution that could occur if stock options to acquire common stock were exercised or if the restricted stock grants were fully vested and reconciles the weighted-average common shares outstanding used in the computation of basic and diluted (loss) earnings per share. Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands, except per share data) Numerator: Net (loss) income $ (3,885) $ 4,333 Denominator: Weighted-average common shares outstanding - basic 34,836 36,943 Restricted stocks and stock options - (1) 206 Weighted-average common shares outstanding - diluted 34,836 37,149 Per common share: Basic (loss) earnings per common share $ (0.11) $ 0.12 Diluted (loss) earnings per common share $ (0.11) $ 0.12 (1) Due to the Company being in a net loss position in the thirteen weeks ended May 5, 2018, no restricted stocks and stock options were included in the computation of diluted loss per share as their effect would have been anti-dilutive.

Share Repurchases (Tables)

Share Repurchases (Tables)	3 Months Ended
	May 05, 2018
Stockholders' Equity Note [Abstract]
Schedule of Shares Repurchased	The following table summarizes the Company’s repurchase activity for the periods presented. The cost of repurchased shares is presented as treasury stock in the unaudited consolidated balance sheets. Thirteen Weeks Ended May 5, 2018 April 29, 2017 (in thousands, except per share data) Number of shares repurchased 659 609 Total cost of shares repurchased $ 3,522 $ 9,285 Average price per share (including brokers' commission) $ 5.34 $ 15.24

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	May 05, 2018
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 May 5, 2018, are as follows: Fiscal year Amount (in thousands) Remainder of 2018 $ 37,750 2019 48,373 2020 42,901 2021 36,039 2022 30,195 Thereafter 80,342 $ 275,600

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Sales by Merchandise Category) (Details) - USD ($) $ in Thousands		3 Months Ended
		May 05, 2018	Apr. 29, 2017
Revenue from External Customer [Line Items]
Merchandise sales		$ 99,981	$ 108,879
Others	[1]	424	(1,190)
Net sales		100,405	107,689
Apparel [Member]
Revenue from External Customer [Line Items]
Merchandise sales		49,534	60,012
Jewelry [Member]
Revenue from External Customer [Line Items]
Merchandise sales		23,858	23,771
Accessories [Member]
Revenue from External Customer [Line Items]
Merchandise sales		15,484	13,981
Gifts [Member]
Revenue from External Customer [Line Items]
Merchandise sales		$ 11,105	$ 11,115
[1]	Includes gift card breakage income, shipping revenue and change in return reserve.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details Textual) $ in Thousands	3 Months Ended
	May 05, 2018USD ($)	Apr. 29, 2017USD ($)
Summary of Significant Accounting Policies [Line Items]
Year of Incorporation	2,007
State of Incorporation	Delaware
Number of Boutiques in Operation	744
Number of States in which Entity Operates	47
Gift card breakage income	$ 200	$ 100
Cumulative effect on adoption of new accounting standards, net of tax	2,134
Unredeemed gift card as of the prior year end recognized in revenues	1,700	$ 2,000
Accounting Standards Update 2016-04 [Member]
Summary of Significant Accounting Policies [Line Items]
Cumulative effect on adoption of new accounting standards, net of tax	2,000
Cumulative effect adjustment, income tax impact	$ 700
Fiscal Year [Member]
Summary of Significant Accounting Policies [Line Items]
Length of Fiscal Period	364 days	371 days
Fiscal Quarter [Member]
Summary of Significant Accounting Policies [Line Items]
Length of Fiscal Period	91 days	91 days
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Length of Fiscal Period	364 days
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Length of Fiscal Period	371 days

(Loss) Earnings per Share (Reco

(Loss) Earnings per Share (Reconciliation Table) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 05, 2018		Apr. 29, 2017
Numerator:
Net (loss) income	$ (3,885)		$ 4,333
Denominator:
Weighted-average common shares outstanding - basic	34,836		36,943
Restricted stocks and stock options	0	[1]	206
Weighted-average common shares outstanding - diluted	34,836		37,149
Per common share:
Basic (loss) earnings per common share	$ (0.11)		$ 0.12
Diluted (loss) earnings per common share	$ (0.11)		$ 0.12
[1]	Due to the Company being in a net loss position in the thirteen weeks ended May 5, 2018, no restricted stocks and stock options were included in the computation of diluted loss per share as their effect would have been anti-dilutive.

(Loss) Earnings per Share (Deta

(Loss) Earnings per Share (Details Textual) - shares shares in Millions	3 Months Ended
	May 05, 2018	Apr. 29, 2017
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share
Securities Excluded from Computation of Diluted Weighted Average Common Stock Outstanding	0.8	0.3
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share
Securities Excluded from Computation of Diluted Weighted Average Common Stock Outstanding	0.7	0.4

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended
	May 05, 2018	Apr. 29, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate	13.40%	40.30%
Income Taxes Receivable	$ 11.4
Income Taxes Payable		$ 9.3

Revolving Credit Facility (Deta

Revolving Credit Facility (Details Textual) - Revolving Credit Facility [Member] $ in Millions	3 Months Ended
	May 05, 2018USD ($)
Revolving Credit Facility Details
Initiation Date	Aug. 30, 2013
Maximum Borrowing Capacity	$ 75
Maturity Date	Aug. 30, 2018
Line Of Credit Facility Optional Additional Borrowing Capacity	$ 25
Amount Outstanding under the Revolving Credit Facility	0
Line Of Credit Availability For Letters Of Credit	$ 10

Stock-based Compensation (Detai

Stock-based Compensation (Details Textual) - USD ($) shares in Millions, $ in Millions	1 Months Ended		3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	May 05, 2018	Apr. 29, 2017
Stock-based Compensation Disclosures
Stock-based compensation expense			$ 0.4	$ 1.3
Management [Member]
Stock-based Compensation Disclosures
Number of shares granted (shares)	0.9	0.2
Restricted Stock [Member] | Management [Member]
Stock-based Compensation Disclosures
Vesting term			3 years	3 years
Percent of shares awarded			50.00%	35.00%
Performance Shares [Member] | Management [Member]
Stock-based Compensation Disclosures
Vesting term			3 years	3 years
Percent of shares awarded			50.00%	65.00%
Performance Shares [Member] | Management [Member] | Minimum [Member]
Stock-based Compensation Disclosures
Percent of Target Shares that May Vest			0.00%	0.00%
Performance Shares [Member] | Management [Member] | Maximum [Member]
Stock-based Compensation Disclosures
Percent of Target Shares that May Vest			150.00%	150.00%

Share Repurchases (Details)

Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 05, 2018	Apr. 29, 2017
Treasury Stock Disclosure [Line Items]
Number of shares repurchased	659	609
Total cost of shares repurchased	$ 3,522	$ 9,285
Average price per share (including brokers' commission)	$ 5.34	$ 15.24

Share Repurchases (Details Text

Share Repurchases (Details Textual) - New Repurchase Plan [Member] - USD ($) $ in Millions	May 05, 2018	Mar. 15, 2016
Amount Authorized Under the Stock Repurchase Program		$ 100
Remaining amount for future repurchases	$ 40.2

Commitments and Contingencies30

Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands	May 05, 2018USD ($)
Future Minimum Payments [Abstract]
Remainder of 2018	$ 37,750
2,019	48,373
2,020	42,901
2,021	36,039
2,022	30,195
Thereafter	80,342
Total	$ 275,600

Commitments and Contingencies31

Commitments and Contingencies (Details Textual)	3 Months Ended
	May 05, 2018
Operating Leased Assets [Line Items]
Lease Expiration Year	2,029
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

Subsequent Events (Details Text

Subsequent Events (Details Textual) - Subsequent Event [Member] - ABL Credit Facility [Member] $ in Millions	1 Months Ended
	May 25, 2018USD ($)
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 50
Unused Commitment Fee	0.20%
Line Of Credit Availability For Letters Of Credit	$ 10
Initiation Date	May 25, 2018
Expiration Date	May 25, 2023
Line Of Credit Facility Optional Additional Borrowing Capacity	$ 25
Required Fixed Charge Coverage Ratio	1
Minimum Availability to Trigger Minimum Fixed Charge Coverage Ratio	$ 6
LIBOR Floor	0.00%
Base rate [Member]
Subsequent Event [Line Items]
Percentage added to one month LIBOR	1.00%
Percentage Added To Federal Funds Rate	0.50%
Base rate [Member] | Maximum [Member]
Subsequent Event [Line Items]
Applicable margin rate	0.00%
Base rate [Member] | Minimum [Member]
Subsequent Event [Line Items]
Interest rate	1.50%
Applicable margin rate	(0.50%)
LIBOR [Member] | Maximum [Member]
Subsequent Event [Line Items]
Applicable margin rate	1.75%
LIBOR [Member] | Minimum [Member]
Subsequent Event [Line Items]
Applicable margin rate	1.25%