Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2022 | Feb. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36161 | |
Entity Registrant Name | Container Store Group, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0565401 | |
Entity Address, Address Line One | 500 Freeport Parkway | |
Entity Address, City or Town | Coppell | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75019 | |
City Area Code | 972 | |
Local Phone Number | 538-6000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock Outstanding | 50,628,656 | |
Entity Central Index Key | 0001411688 | |
Current Fiscal Year End Date | --04-01 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 |
Current assets: | |||
Cash | $ 5,760 | $ 14,252 | $ 19,008 |
Accounts receivable, net | 30,790 | 30,225 | 32,565 |
Inventory | 190,307 | 192,783 | 196,641 |
Prepaid expenses | 15,596 | 11,628 | 13,076 |
Income taxes receivable | 1,357 | 1,687 | 1,055 |
Other current assets | 9,941 | 9,836 | 9,997 |
Total current assets | 253,751 | 260,411 | 272,342 |
Noncurrent assets: | |||
Property and equipment, net | 152,282 | 140,198 | 134,810 |
Noncurrent operating lease right-of-use assets | 357,607 | 347,519 | 342,980 |
Goodwill | 221,159 | 221,159 | 221,183 |
Trade names | 221,046 | 224,938 | 226,182 |
Deferred financing costs, net | 163 | 203 | 216 |
Noncurrent deferred tax assets, net | 690 | 865 | 796 |
Other assets | 2,323 | 2,284 | 2,576 |
Total noncurrent assets | 955,270 | 937,166 | 928,743 |
Total assets | 1,209,021 | 1,197,577 | 1,201,085 |
Current liabilities: | |||
Accounts payable | 57,704 | 84,059 | 70,983 |
Accrued liabilities | 75,338 | 89,004 | 98,273 |
Current borrowings on revolving lines of credit | 8,131 | 1,790 | |
Current portion of long-term debt | 2,061 | 2,096 | 2,117 |
Current operating lease liabilities | 58,309 | 52,540 | 52,486 |
Income taxes payable | 276 | 6,026 | 416 |
Total current liabilities | 201,819 | 235,515 | 224,275 |
Noncurrent liabilities: | |||
Long-term debt | 178,416 | 158,564 | 196,626 |
Noncurrent operating lease liabilities | 322,243 | 317,345 | 313,414 |
Noncurrent deferred tax liabilities, net | 50,050 | 50,493 | 50,925 |
Other long-term liabilities | 6,983 | 7,564 | 9,208 |
Total noncurrent liabilities | 557,692 | 533,966 | 570,173 |
Total liabilities | 759,511 | 769,481 | 794,448 |
Commitments and contingencies (Note 7) | |||
Shareholders' equity: | |||
Common stock, $0.01 par value, 250,000,000 shares authorized; 49,164,862 shares issued at December 31, 2022; 49,635,447 shares issued at April 2, 2022; 49,618,747 shares issued at January 1, 2022 | 492 | 496 | 496 |
Additional paid-in capital | 871,384 | 874,190 | 873,088 |
Accumulated other comprehensive loss | (33,614) | (27,444) | (24,643) |
Retained deficit | (388,752) | (419,146) | (442,304) |
Total shareholders' equity | 449,510 | 428,096 | 406,637 |
Total liabilities and shareholders' equity | $ 1,209,021 | $ 1,197,577 | $ 1,201,085 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 |
Consolidated balance sheets | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 49,164,862 | 49,635,447 | 49,618,747 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated statements of operations | ||||
Net sales | $ 252,236 | $ 267,304 | $ 787,542 | $ 788,573 |
Cost of sales (excluding depreciation and amortization) | 108,795 | 114,956 | 339,583 | 326,363 |
Gross profit | 143,441 | 152,348 | 447,959 | 462,210 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 121,540 | 120,268 | 362,104 | 344,478 |
Stock-based compensation | 825 | 1,204 | 2,562 | 3,159 |
Pre-opening costs | 430 | 20 | 1,049 | 686 |
Depreciation and amortization | 9,952 | 8,667 | 28,507 | 25,412 |
Loss (gain) on disposal of assets | 10 | (9) | 91 | (14) |
Income from operations | 10,684 | 22,198 | 53,646 | 88,489 |
Interest expense, net | 4,389 | 3,213 | 11,395 | 9,584 |
Income before taxes | 6,295 | 18,985 | 42,251 | 78,905 |
Provision for income taxes | 2,127 | 5,292 | 11,857 | 20,345 |
Net income | $ 4,168 | $ 13,693 | $ 30,394 | $ 58,560 |
Net income per common share - basic | $ 0.08 | $ 0.28 | $ 0.61 | $ 1.19 |
Net income per common share - diluted | $ 0.08 | $ 0.27 | $ 0.61 | $ 1.16 |
Weighted-average common shares - basic | 49,263,122 | 49,611,468 | 49,661,209 | 49,386,897 |
Weighted-average common shares - diluted | 49,452,980 | 50,298,101 | 50,024,589 | 50,310,320 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated statements of comprehensive income | ||||
Net income | $ 4,168 | $ 13,693 | $ 30,394 | $ 58,560 |
Unrealized loss on financial instruments, net of tax benefit of $6, $385, $25 and $732 | (18) | (1,087) | (51) | (2,105) |
Pension liability adjustment | (140) | 99 | 252 | 114 |
Foreign currency translation adjustment | 4,995 | (2,330) | (6,371) | (3,649) |
Comprehensive income | $ 9,005 | $ 10,375 | $ 24,224 | $ 52,920 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated statements of comprehensive income | ||||||||
Unrealized loss on financial instruments, net of tax benefit of $6, $385, $25 and $732 | $ 6 | $ (20) | $ 39 | $ 385 | $ 398 | $ (51) | $ 25 | $ 732 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Operating activities | ||
Net income | $ 30,394 | $ 58,560 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,507 | 25,412 |
Stock-based compensation | 2,562 | 3,159 |
Loss (gain) on disposal of assets | 91 | (14) |
Deferred tax (benefit) expense | (1,018) | 4,459 |
Non-cash interest | 1,413 | 1,412 |
Other | 855 | (264) |
Changes in operating assets and liabilities (exclusive of effects of acquisition): | ||
Accounts receivable | (2,955) | (3,729) |
Inventory | 511 | (64,945) |
Prepaid expenses and other assets | (3,303) | (3,105) |
Accounts payable and accrued liabilities | (33,126) | 11,161 |
Net change in lease assets and liabilities | 607 | (5,680) |
Income taxes | (5,539) | (8,221) |
Other noncurrent liabilities | (143) | (2,614) |
Net cash provided by operating activities | 18,856 | 15,591 |
Investing activities | ||
Additions to property and equipment | (46,558) | (24,029) |
Closet Works acquisition, net of cash acquired | (19,445) | |
Investments in non-qualified plan trust | (1,049) | (267) |
Proceeds from non-qualified plan trust redemptions | 811 | 2,605 |
Proceeds from sale of property and equipment | 36 | 17 |
Net cash used in investing activities | (46,760) | (41,119) |
Financing activities | ||
Borrowings on revolving lines of credit | 64,790 | 48,913 |
Payments on revolving lines of credit | (58,243) | (48,913) |
Borrowings on long-term debt | 35,000 | 38,000 |
Payments on long-term debt | (16,572) | (6,633) |
Repurchases of common stock | (5,000) | |
Payment of taxes with shares withheld upon restricted stock vesting | (712) | (4,677) |
Proceeds from the exercise of stock options | 340 | 566 |
Net cash provided by financing activities | 19,603 | 27,256 |
Effect of exchange rate changes on cash | (191) | (407) |
Net (decrease) increase in cash | (8,492) | 1,321 |
Cash at beginning of fiscal period | 14,252 | 17,687 |
Cash at end of fiscal period | 5,760 | 19,008 |
Supplemental information: | ||
Purchases of property and equipment (included in accounts payable) | 4,873 | 3,978 |
Cash paid for amounts included in the measurement of operating lease liabilities | 67,625 | 71,949 |
Additions to right-of-use assets | $ 49,056 | $ 68,934 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained deficit | Total |
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning of period at Apr. 03, 2021 | $ 488 | $ 873,048 | $ (19,003) | $ (500,864) | $ 353,669 |
Balance (in shares) at Apr. 03, 2021 | 48,838,261 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 17,672 | 17,672 | |||
Stock-based compensation | 869 | 869 | |||
Stock options exercises | $ 1 | 225 | 226 | ||
Stock option exercises (in shares) | 52,183 | ||||
Vesting of restricted stock awards | $ 5 | (5) | |||
Vesting of restricted stock awards (in shares) | 526,771 | ||||
Taxes related to net share settlement of restricted stock awards | (3,677) | (3,677) | |||
Foreign currency translation adjustment | 703 | 703 | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | 143 | 143 | |||
Pension liability adjustment | (57) | (57) | |||
Balance at the end of period at Jul. 03, 2021 | $ 494 | 870,460 | (18,214) | (483,192) | 369,548 |
Balance (in shares) at Jul. 03, 2021 | 49,417,215 | ||||
Balance at the beginning of period at Apr. 03, 2021 | $ 488 | 873,048 | (19,003) | (500,864) | 353,669 |
Balance (in shares) at Apr. 03, 2021 | 48,838,261 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 58,560 | ||||
Foreign currency translation adjustment | (3,649) | ||||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | (2,105) | ||||
Pension liability adjustment | 114 | ||||
Balance at the end of period at Jan. 01, 2022 | $ 496 | 873,088 | (24,643) | (442,304) | 406,637 |
Balance (in shares) at Jan. 01, 2022 | 49,618,747 | ||||
Balance at the beginning of period at Jul. 03, 2021 | $ 494 | 870,460 | (18,214) | (483,192) | 369,548 |
Balance (in shares) at Jul. 03, 2021 | 49,417,215 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 27,195 | 27,195 | |||
Stock-based compensation | 1,086 | 1,086 | |||
Vesting of restricted stock awards | $ 1 | (1) | |||
Vesting of restricted stock awards (in shares) | 127,938 | ||||
Foreign currency translation adjustment | (2,022) | (2,022) | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | (1,161) | (1,161) | |||
Pension liability adjustment | 72 | 72 | |||
Balance at the end of period at Oct. 02, 2021 | $ 495 | 871,545 | (21,325) | (455,997) | $ 394,718 |
Balance (in shares) at Oct. 02, 2021 | 49,545,153 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 13,693 | $ 13,693 | |||
Stock-based compensation | 1,204 | 1,204 | |||
Stock options exercises | $ 1 | 339 | 340 | ||
Stock option exercises (in shares) | 73,594 | ||||
Foreign currency translation adjustment | (2,330) | (2,330) | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | (1,087) | (1,087) | |||
Pension liability adjustment | 99 | 99 | |||
Balance at the end of period at Jan. 01, 2022 | $ 496 | 873,088 | (24,643) | (442,304) | $ 406,637 |
Balance (in shares) at Jan. 01, 2022 | 49,618,747 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning of period at Apr. 02, 2022 | $ 496 | 874,190 | (27,444) | (419,146) | $ 428,096 |
Balance (in shares) at Apr. 02, 2022 | 49,635,447 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 10,479 | 10,479 | |||
Stock-based compensation | 1,201 | 1,201 | |||
Stock options exercises | $ 1 | 339 | 340 | ||
Stock option exercises (in shares) | 73,594 | ||||
Vesting of restricted stock awards | $ 2 | (2) | |||
Vesting of restricted stock awards (in shares) | 232,295 | ||||
Taxes related to net share settlement of restricted stock awards | (712) | (712) | |||
Foreign currency translation adjustment | (5,898) | (5,898) | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | (113) | (113) | |||
Pension liability adjustment | 214 | 214 | |||
Balance at the end of period at Jul. 02, 2022 | $ 499 | 875,016 | (33,241) | (408,667) | 433,607 |
Balance (in shares) at Jul. 02, 2022 | 49,941,336 | ||||
Balance at the beginning of period at Apr. 02, 2022 | $ 496 | 874,190 | (27,444) | (419,146) | 428,096 |
Balance (in shares) at Apr. 02, 2022 | 49,635,447 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 30,394 | ||||
Foreign currency translation adjustment | (6,371) | ||||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | (51) | ||||
Pension liability adjustment | 252 | ||||
Balance at the end of period at Dec. 31, 2022 | $ 492 | 871,384 | (33,614) | (388,752) | $ 449,510 |
Balance (in shares) at Dec. 31, 2022 | 49,164,862 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning of period at Jul. 02, 2022 | $ 499 | 875,016 | (33,241) | (408,667) | $ 433,607 |
Balance (in shares) at Jul. 02, 2022 | 49,941,336 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 15,747 | 15,747 | |||
Stock-based compensation | 536 | 536 | |||
Vesting of restricted stock awards | $ 2 | (2) | |||
Vesting of restricted stock awards (in shares) | 163,493 | ||||
Foreign currency translation adjustment | (5,468) | (5,468) | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | 80 | 80 | |||
Pension liability adjustment | 178 | 178 | |||
Balance at the end of period at Oct. 01, 2022 | $ 501 | 875,550 | (38,451) | (392,920) | $ 444,680 |
Balance (in shares) at Oct. 01, 2022 | 50,104,829 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 4,168 | $ 4,168 | |||
Stock-based compensation | 825 | 825 | |||
Foreign currency translation adjustment | 4,995 | 4,995 | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) | (18) | (18) | |||
Pension liability adjustment | (140) | (140) | |||
Repurchases of common stock | $ (9) | (4,991) | (5,000) | ||
Repurchases of common stock (in shares) | (939,967) | ||||
Balance at the end of period at Dec. 31, 2022 | $ 492 | $ 871,384 | $ (33,614) | $ (388,752) | $ 449,510 |
Balance (in shares) at Dec. 31, 2022 | 49,164,862 | ||||
Common stock, par value (in dollars per share) | $ 0.01 |
Consolidated statements of sh_2
Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Apr. 02, 2022 | Apr. 03, 2021 | |
Consolidated statements of shareholders' equity | ||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Unrealized (gain) loss on financial instruments, net of tax benefit | $ 6 | $ (20) | $ 39 | $ 385 | $ 398 | $ (51) | $ 25 | $ 732 |
Description of business and bas
Description of business and basis of presentation | 9 Months Ended |
Dec. 31, 2022 | |
Description of business and basis of presentation | |
Description of business and basis of presentation | The Container Store Group, Inc. Notes to consolidated financial statements (unaudited) (In thousands, except share amounts and unless otherwise stated) December 31, 2022 1. Description of business and basis of presentation These financial statements should be read in conjunction with the financial statement disclosures in our Annual Report on Form 10-K for the fiscal year ended April 2, 2022, filed with the Securities and Exchange Commission (“SEC”) on June 2, 2022 (the “2021 Annual Report on Form 10-K”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. Consistent with our disclosures in the 2021 Annual Report on Form 10-K, the Company has revised the fiscal 2021 interim period presentation of the purchases and sales of the underlying investments held in the rabbi trust related to the nonqualified retirement plan in the Consolidated statement of cash flows from operating activities to investing activities. See “Note 1. Nature of business and summary of significant accounting policies” of the Notes to consolidated financial statements in our 2021 Annual Report on Form 10-K for additional information. The following table presents the effects of the changes in presentation of these cash flows, compared to the previously reported Consolidated statements of cash flows: Thirty-Nine Weeks Ended January 1, 2022 (In thousands)(unaudited) As Reported Adjustment As Corrected Prepaid expenses and other assets $ (767) $ (2,338) $ (3,105) Net cash provided by operating activities 17,929 (2,338) 15,591 Investments in non-qualified plan trust — (267) (267) Proceeds from non-qualified plan trust redemptions — 2,605 2,605 Net cash used in investing activities $ (43,457) $ 2,338 $ (41,119) All references herein to “fiscal 2022” refer to the 52-week fiscal year ending April 1, 2023, “fiscal 2021” refer to the 52-week fiscal year ended April 2, 2022, and “fiscal 2020” refer to the 53-week fiscal year ended April 3, 2021. Description of business Our operations consist of two reportable segments: The Container Store, Inc. (“TCS”) Today, TCS includes The Container Store Custom Spaces (“Custom Spaces”) consisting of our elfa® Classic, elfa® Décor, Avera® and Preston TM deepen our relationship with our customers, expand our reach and strengthen our capabilities, all while transforming lives through the power of organization. The Container Store, Inc. consists of our retail stores, website and call center (which includes business sales), as well as our in-home services business. As of December 31, 2022, we operated 95 stores with an average size of approximately 25,000 square feet (19,000 selling square feet) in 33 states and the District of Columbia. The Container Store, Inc. also offers all of its products directly to its customers, through its website, responsive mobile site and app, call center, and in-home design specialists and in-home design organizers. On December 30, 2021, the Company completed the acquisition of Closet Parent Company, Inc. (“Closet Works”), which designs and manufactures the Company’s premium wood-based custom space product offering, and is included in the TCS reportable segment. Elfa ® Seasonality The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the thirty-nine weeks ended December 31, 2022 are not necessarily indicative of the operating results for the full year. Our unique offering of organizing solutions, custom spaces, and in-home services makes us less susceptible to holiday season shopping patterns than many retailers. In fiscal 2021 and the first thirty-nine weeks of fiscal 2022, sales and profitability did not follow historical patterns due to various factors, including changes in promotional strategy and cadence and macroeconomic factors. Recent accounting pronouncements In July 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Detail of certain balance sheet
Detail of certain balance sheet accounts | 9 Months Ended |
Dec. 31, 2022 | |
Detail of certain balance sheet accounts | |
Detail of certain balance sheet accounts | 2. Detail of certain balance sheet accounts December 31, April 2, January 1, 2022 2022 2022 Accounts receivable, net: Trade receivables, net $ 16,656 $ 19,170 $ 17,056 Credit card receivables 11,309 9,308 13,009 Other receivables 2,825 1,747 2,500 $ 30,790 $ 30,225 $ 32,565 Inventory: Finished goods $ 179,984 $ 186,025 $ 188,780 Raw materials 9,120 5,769 6,809 Work in progress 1,203 989 1,052 $ 190,307 $ 192,783 $ 196,641 Accrued liabilities: Accrued payroll, benefits and bonuses $ 17,979 $ 32,316 $ 27,160 Unearned revenue 18,830 22,603 32,110 Accrued transaction and property tax 15,346 15,056 15,944 Gift cards and store credits outstanding 13,924 11,921 12,735 Accrued sales returns 4,302 3,197 3,534 Accrued interest 348 121 151 Other accrued liabilities 4,609 3,790 6,639 $ 75,338 $ 89,004 $ 98,273 Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, Unearned revenue included in Accrued liabilities, and Gift cards and store credits outstanding included in Accrued liabilities in the Company’s Consolidated balance sheets. Unearned revenue was $22,603 as of April 2, 2022, and $20,259 was subsequently recognized into revenue for the thirty-nine weeks ended December 31, 2022. Gift cards and store credits outstanding was $11,921 as of April 2, 2022, and $3,273 was subsequently recognized into revenue for the thirty-nine weeks ended December 31, 2022. See Note 11 for disaggregated revenue disclosures. |
Leases
Leases | 9 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 3. Leases We conduct all of our U.S. operations from leased facilities that include our corporate headquarters, distribution centers, manufacturing facilities, and 95 store locations. The corporate headquarters, distribution centers, manufacturing facilities, and stores are leased under operating leases that generally expire over the next 1 to 15 years. We also lease computer hardware under operating leases that generally expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company also has finance leases at our Elfa segment which are immaterial. Lease expense on operating leases is recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property and is recorded in selling, general and administrative expenses (“SG&A”). We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include lease payments that are based on a percentage of sales. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate applied to present value the future lease payments and the exercise of renewal options. Many of our leases contain renewal options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of lease costs for the thirteen and thirty-nine weeks ended December 31, 2022 and January 1, 2022 were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Operating lease costs $ 22,868 $ 21,873 $ 68,043 $ 65,562 Variable lease costs 335 373 1,084 1,191 Total lease costs $ 23,203 $ 22,246 $ 69,127 $ 66,753 We do not have sublease income and do not recognize lease assets or liabilities for short-term leases, defined as operating leases with initial terms of less than 12 months. Our short-term lease costs were not material for the thirteen and thirty-nine weeks ended December 31, 2022 and January 1, 2022. Weighted average remaining operating lease term and incremental borrowing rate as of December 31, 2022 and January 1, 2022 were as follows: Thirty-Nine Weeks Ended December 31, 2022 January 1, 2022 Weighted average remaining lease term (years) 6.6 7.1 Weighted average incremental borrowing rate 10.6 % 11.5 % As of December 31, 2022, future minimum lease payments under our operating lease liabilities were as follows: Operating leases (1) Within 1 year (remaining) $ 23,168 2 years 93,057 3 years 84,677 4 years 76,423 5 years 66,537 Thereafter 186,178 Total lease payments $ 530,040 Less amount representing interest 149,488 Total lease liability $ 380,552 Less current lease liability 58,309 Total noncurrent lease liability $ 322,243 (1) Operating lease payments exclude approximately $33,849 of legally binding minimum lease payments for four leases signed but not yet commenced. |
Net income per common share
Net income per common share | 9 Months Ended |
Dec. 31, 2022 | |
Net income per common share | |
Net income per common share | 4. Net income per common share Basic net income per common share is computed as net income divided by the weighted-average number of common shares for the period. Net income per common share - diluted is computed as net income divided by the weighted-average number of common shares for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potentially dilutive securities are excluded from the computation of net income per common share - diluted if their effect is anti-dilutive. The following is a reconciliation of net income and the number of shares used in the basic and diluted net income per common share calculations: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 31, January 1, December 31, January 1, 2022 2022 2022 2022 Numerator: Net income $ 4,168 $ 13,693 $ 30,394 $ 58,560 Denominator: Weighted-average common shares — basic 49,263,122 49,611,468 49,661,209 49,386,897 Nonvested restricted stock awards and other dilutive securities 189,858 686,633 363,380 923,423 Weighted-average common shares — diluted 49,452,980 50,298,101 50,024,589 50,310,320 Net income per common share — basic $ 0.08 $ 0.28 $ 0.61 $ 1.19 Net income per common share — diluted $ 0.08 $ 0.27 $ 0.61 $ 1.16 Antidilutive securities not included: Stock options outstanding 1,555,286 1,654,260 1,481,921 1,714,940 Nonvested restricted stock awards 432,344 97,831 405,011 125,239 |
Acquisition
Acquisition | 9 Months Ended |
Dec. 31, 2022 | |
Acquisition | |
Acquisition | 5. Closet Works Acquisition On December 30, 2021, the Company acquired 100% of the voting equity interest in Closet Works, which designs and manufactures the Company’s premium wood-based custom space offering. The acquisition date fair value of the consideration transferred totaled $21,438 of cash (subject to working capital and certain other adjustments as set forth in the purchase agreement for the acquisition). The Closet Works acquisition has been accounted for as a business combination in accordance with the requirements of ASC 805. The acquisition price has been allocated among assets acquired and liabilities assumed at fair value based on information currently available, with the excess recorded as goodwill. The allocation of consideration to the net tangible assets December 30, December 30, 2021 2021 (as reported at April 2, 2022) Adjustments (as reported at December 31, 2022) Cash $ 1,993 $ (3) $ 1,990 Accounts receivable 389 3 392 Inventory 1,300 - 1,300 Prepaid expenses 177 - 177 Property and equipment, net 2,988 - 2,988 Operating lease right-of-use assets 1,638 - 1,638 Goodwill 18,344 - 18,344 Other assets 40 - 40 Total identifiable assets acquired 26,869 - 26,869 Accounts payable (989) 20 (969) Accrued liabilities (2,269) (20) (2,289) Current operating lease liabilities (446) - (446) Noncurrent operating lease liabilities (1,092) - (1,092) Noncurrent deferred tax liabilities, net (635) - (635) Total liabilities (5,431) - (5,431) Total purchase price $ 21,438 $ - $ 21,438 The goodwill recorded in connection with the acquisition, which is not expected to be deductible for tax purposes, was included in our TCS segment. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Closet Works. The Company began consolidating Closet Works upon completion of the acquisition effective December 30, 2021. |
Income taxes
Income taxes | 9 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Income taxes | 6. Income taxes The provision for income taxes in the thirteen weeks ended December 31, 2022 was $2,127 as compared to a provision of $5,292 in the thirteen weeks ended January 1, 2022. The effective tax rate for the thirteen weeks ended December 31, 2022 was 33.8%, as compared to 27.9% in the thirteen weeks ended January 1, 2022. During the thirteen weeks ended December 31, 2022, the effective tax rate rose above the U.S. statutory rate of 21%, primarily due to U.S. state income taxes, and the impact of the global intangible low-taxed income (“GILTI”) provision. The provision for income taxes in the thirty-nine weeks ended December 31, 2022 was $11,857 as compared to a provision of $20,345 in the thirty-nine weeks ended January 1, 2022. The effective tax rate for the thirty-nine weeks ended December 31, 2022 was 28.1%, as compared to 25.8% in the thirty-nine weeks ended January 1, 2022. During the thirty-nine weeks ended December 31, 2022 , the effective tax rate rose above the U.S. statutory rate of 21% , primarily due to U.S. state income taxes, and the impact of the GILTI provision. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 7. Commitments and contingencies In connection with insurance policies and other contracts, the Company has outstanding standby letters of credit totaling $3,851 as of December 31, 2022. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business, none of which is expected to have a material adverse effect on the Company’s consolidated financial statements on an individual basis or in the aggregate. |
Accumulated other comprehensive
Accumulated other comprehensive income | 9 Months Ended |
Dec. 31, 2022 | |
Accumulated other comprehensive income | |
Accumulated other comprehensive income | 8. Accumulated other comprehensive loss Accumulated other comprehensive loss (“AOCL”) consists of changes in our foreign currency forward contracts, pension liability adjustment, and foreign currency translation. The components of AOCL, net of tax, are shown below for the thirty-nine weeks ended December 31, 2022: Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at April 2, 2022 $ 51 $ (1,909) $ (25,586) $ (27,444) Other comprehensive income (loss) before reclassifications, net of tax 70 252 (6,371) (6,049) Amounts reclassified to earnings, net of tax (121) — — (121) Net current period other comprehensive (loss) income (51) 252 (6,371) (6,170) Balance at December 31, 2022 $ — $ (1,657) $ (31,957) $ (33,614) Amounts reclassified from AOCL to earnings for the foreign currency forward contracts category are generally included in cost of sales in the Company’s consolidated statements of operations. For a description of the Company’s use of foreign currency forward contracts, refer to Note 9. |
Foreign currency forward contra
Foreign currency forward contracts | 9 Months Ended |
Dec. 31, 2022 | |
Foreign currency forward contracts. | |
Foreign currency forward contracts | 9. Foreign currency forward contracts The Company’s international operations and purchases of its significant product lines from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815, Derivatives and Hedging During the thirty-nine weeks ended December 31, 2022 and January 1, 2022, the TCS segment used forward contracts for 1% and 96% of inventory purchases in Swedish krona, respectively. Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company accounts for its foreign currency hedging instruments in the TCS segment as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedging instruments that are considered to be effective, as defined, are recorded as other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company assessed the effectiveness of the foreign currency hedge instruments and determined the foreign currency hedge instruments were highly effective during the thirty-nine weeks ended December 31, 2022 and January 1, 2022. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as SG&A on the consolidated statements of operations; however, during the thirty-nine weeks ended December 31, 2022, the Company did not The Company had a zero net impact in AOCL related to foreign currency hedge instruments at December 31, 2022. There was zero net impact for unrealized gain/loss for settled foreign currency hedge instruments related to inventory on hand as of December 31, 2022. The change in fair value of the Company’s foreign currency hedge instruments that qualify as cash flow hedges is included in AOCL, net of taxes, presented in Note 8 of these financial statements. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Dec. 31, 2022 | |
Fair value measurements | |
Fair value measurements | 10. Fair value measurements Under GAAP, the Company is required to a) measure certain assets and liabilities at fair value and b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: ● Level 1—Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. ● Level 2—Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. As of December 31, 2022, April 2, 2022 and January 1, 2022, the Company held certain items that are required to be measured at fair value on a recurring basis. These items included foreign currency forward contracts which the Company uses to stabilize its retail gross margins and to protect its operations from downward currency exposure. These items are also included in the The following items are measured at fair value on a recurring basis, subject to the requirements of ASC 820, Fair Value Measurements December 31, April 2, January 1, Description Balance Sheet Location 2022 2022 2022 Assets Nonqualified retirement plan N/A Other current assets $ 3,526 $ 3,747 $ 4,027 Foreign currency forward contracts Level 2 Other current assets — — 173 Total assets $ 3,526 $ 3,747 $ 4,200 The fair value of long-term debt was estimated using quoted prices as well as recent transactions for similar types of borrowing arrangements (Level 2 valuations). As of December 31, 2022, April 2, 2022 and January 1, 2022, the estimated fair value of the Company’s long-term debt, including current maturities, was as follows: December 31, April 2, January 1, 2022 2022 2022 Senior secured term loan facility $ 153,135 $ 166,663 $ 173,865 2019 Elfa revolving facilities 8,131 1,790 — Obligations under finance leases 123 179 220 Revolving credit facility 20,000 — 33,000 Total fair value of debt $ 181,389 $ 168,632 $ 207,085 |
Segment reporting
Segment reporting | 9 Months Ended |
Dec. 31, 2022 | |
Segment reporting | |
Segment reporting | 11. Segment reporting The Company’s reportable segments were determined on the same basis as how management evaluates performance internally by the Chief Operating Decision Maker (“CODM”). The Company has determined that the Chief Executive Officer is the CODM and the Company’s two reportable segments consist of TCS and Elfa. The TCS segment includes the Company’s retail stores, website and call center, as well as in-home services. On December 30, 2021, the Company completed the acquisition of Closet Works, which designs and manufactures the Company’s premium wood-based custom space product offering. We determined that TCS and Closet Works have similar economic characteristics and meet the aggregation criteria set forth in ASC 280, Segment Reporting The Elfa segment includes the manufacturing business that produces elfa ® brand products that are sold domestically exclusively through the TCS segment, as well as on a wholesale basis in approximately 30 countries around the world, with a concentration in the Nordic region of Europe. The intersegment sales in the Elfa column represent elfa ® product sales to the TCS segment. These sales and the related gross margin on merchandise recorded in TCS inventory balances at the end of the period are eliminated for consolidation purposes in the Eliminations column. The net sales to third parties in the Elfa column represent sales to customers outside of the United States. The Company has determined that adjusted earnings before interest, tax, depreciation, and amortization (“Adjusted EBITDA”) is the profit or loss measure that the CODM uses to make resource allocation decisions and evaluate segment performance. Adjusted EBITDA assists management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations and, therefore, are not included in measuring segment performance. Adjusted EBITDA is calculated in accordance with the Senior Secured Term Loan Facility and the Revolving Credit Facility and we define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments that we do not consider in our evaluation of ongoing operating performance from period to period. Thirteen Weeks Ended December 31, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 239,271 $ 12,965 $ — $ 252,236 Intersegment sales — 19,083 (19,083) — Adjusted EBITDA 22,086 3,970 (3,895) 22,161 Interest expense, net 4,265 124 — 4,389 Assets (1) 1,261,798 119,176 (171,953) 1,209,021 Thirteen Weeks Ended January 1, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 248,618 $ 18,686 $ — $ 267,304 Intersegment sales — 21,852 (21,852) — Adjusted EBITDA 28,762 3,690 (1,055) 31,397 Interest expense, net 3,147 66 — 3,213 Assets (1) 1,095,409 111,330 (5,654) 1,201,085 Thirty-Nine Weeks Ended December 31, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 745,914 $ 41,628 $ — $ 787,542 Intersegment sales — 50,792 (50,792) — Adjusted EBITDA 82,071 10,123 (5,934) 86,260 Interest expense, net 11,025 370 — 11,395 Assets (1) 1,261,798 119,176 (171,953) 1,209,021 Thirty-Nine Weeks Ended January 1, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 736,726 $ 51,847 $ — $ 788,573 Intersegment sales — 54,958 (54,958) — Adjusted EBITDA 98,406 11,900 2,341 112,647 Interest expense, net 9,368 216 — 9,584 Assets (1) 1,095,409 111,330 (5,654) 1,201,085 (1) Tangible assets in the Elfa column are located outside of the United States. A reconciliation of income before taxes to Adjusted EBITDA is set forth below: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 31, January 1, December 31, January 1, 2022 2022 2022 2022 Income before taxes $ 6,295 $ 18,985 $ 42,251 $ 78,905 Add: Depreciation and amortization 9,952 8,667 28,507 25,412 Interest expense, net 4,389 3,213 11,395 9,584 Pre-opening costs (a) 430 20 1,049 686 Non-cash lease expense (b) 232 (1,345) 403 (6,422) Stock-based compensation (c) 825 1,204 2,562 3,159 Management transition costs (d) — — — 473 Foreign exchange losses (gains) (e) 38 (39) 30 (34) Acquisition-related costs (f) — 692 63 692 COVID-19 costs (g) — — — 192 Adjusted EBITDA $ 22,161 $ 31,397 $ 86,260 $ 112,647 (a) Non-capital expenditures associated with opening new stores and relocating stores, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Costs related to the transition of key executives including severance and signing bonus recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Includes legal costs incurred in the third quarter of fiscal 2021 and the second quarter of fiscal 2022 associated with the acquisition of Closet Works, all of which are recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (g) Includes incremental costs attributable to the COVID-19 pandemic, which primarily consist of sanitization costs in the first quarter of fiscal 2021, all of which were recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance . |
Share repurchase program
Share repurchase program | 9 Months Ended |
Dec. 31, 2022 | |
Share repurchase program | |
Share repurchase program | 12. Share repurchase program On August 1, 2022, the Board of Directors of the Company approved a share repurchase program with authorization to purchase up to $30,000 of the Company’s common stock. Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of its board of directors. The Company expects to fund repurchases with existing cash on hand. As of December 31, 2022 |
Description of business and b_2
Description of business and basis of presentation (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
Description of business and basis of presentation | |
Seasonality | Seasonality The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the thirty-nine weeks ended December 31, 2022 are not necessarily indicative of the operating results for the full year. Our unique offering of organizing solutions, custom spaces, and in-home services makes us less susceptible to holiday season shopping patterns than many retailers. In fiscal 2021 and the first thirty-nine weeks of fiscal 2022, sales and profitability did not follow historical patterns due to various factors, including changes in promotional strategy and cadence and macroeconomic factors. |
Recent accounting pronouncements | Recent accounting pronouncements In July 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Description of business and b_3
Description of business and basis of presentation (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Description of business and basis of presentation | |
Schedule of effects of the changes in presentation of these cash flows, compared to the previously reported Consolidated statements of cash flows | Thirty-Nine Weeks Ended January 1, 2022 (In thousands)(unaudited) As Reported Adjustment As Corrected Prepaid expenses and other assets $ (767) $ (2,338) $ (3,105) Net cash provided by operating activities 17,929 (2,338) 15,591 Investments in non-qualified plan trust — (267) (267) Proceeds from non-qualified plan trust redemptions — 2,605 2,605 Net cash used in investing activities $ (43,457) $ 2,338 $ (41,119) |
Detail of certain balance she_2
Detail of certain balance sheet accounts (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Detail of certain balance sheet accounts | |
Schedule of detail of certain balance sheet accounts | December 31, April 2, January 1, 2022 2022 2022 Accounts receivable, net: Trade receivables, net $ 16,656 $ 19,170 $ 17,056 Credit card receivables 11,309 9,308 13,009 Other receivables 2,825 1,747 2,500 $ 30,790 $ 30,225 $ 32,565 Inventory: Finished goods $ 179,984 $ 186,025 $ 188,780 Raw materials 9,120 5,769 6,809 Work in progress 1,203 989 1,052 $ 190,307 $ 192,783 $ 196,641 Accrued liabilities: Accrued payroll, benefits and bonuses $ 17,979 $ 32,316 $ 27,160 Unearned revenue 18,830 22,603 32,110 Accrued transaction and property tax 15,346 15,056 15,944 Gift cards and store credits outstanding 13,924 11,921 12,735 Accrued sales returns 4,302 3,197 3,534 Accrued interest 348 121 151 Other accrued liabilities 4,609 3,790 6,639 $ 75,338 $ 89,004 $ 98,273 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of components of lease costs | The components of lease costs for the thirteen and thirty-nine weeks ended December 31, 2022 and January 1, 2022 were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Operating lease costs $ 22,868 $ 21,873 $ 68,043 $ 65,562 Variable lease costs 335 373 1,084 1,191 Total lease costs $ 23,203 $ 22,246 $ 69,127 $ 66,753 |
Schedule of weighted average remaining operating lease term and incremental borrowing rate | Weighted average remaining operating lease term and incremental borrowing rate as of December 31, 2022 and January 1, 2022 were as follows: Thirty-Nine Weeks Ended December 31, 2022 January 1, 2022 Weighted average remaining lease term (years) 6.6 7.1 Weighted average incremental borrowing rate 10.6 % 11.5 % |
Schedule of future minimum lease payments under our operating lease liabilities | Operating leases (1) Within 1 year (remaining) $ 23,168 2 years 93,057 3 years 84,677 4 years 76,423 5 years 66,537 Thereafter 186,178 Total lease payments $ 530,040 Less amount representing interest 149,488 Total lease liability $ 380,552 Less current lease liability 58,309 Total noncurrent lease liability $ 322,243 (1) Operating lease payments exclude approximately $33,849 of legally binding minimum lease payments for four leases signed but not yet commenced. |
Net income per common share (Ta
Net income per common share (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Net income per common share | |
Schedule of reconciliation of net income and the number of shares used in the basic and diluted net income per common share calculations: | Thirteen Weeks Ended Thirty-Nine Weeks Ended December 31, January 1, December 31, January 1, 2022 2022 2022 2022 Numerator: Net income $ 4,168 $ 13,693 $ 30,394 $ 58,560 Denominator: Weighted-average common shares — basic 49,263,122 49,611,468 49,661,209 49,386,897 Nonvested restricted stock awards and other dilutive securities 189,858 686,633 363,380 923,423 Weighted-average common shares — diluted 49,452,980 50,298,101 50,024,589 50,310,320 Net income per common share — basic $ 0.08 $ 0.28 $ 0.61 $ 1.19 Net income per common share — diluted $ 0.08 $ 0.27 $ 0.61 $ 1.16 Antidilutive securities not included: Stock options outstanding 1,555,286 1,654,260 1,481,921 1,714,940 Nonvested restricted stock awards 432,344 97,831 405,011 125,239 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Acquisition | |
Summary of Closet Works Acquisitions | December 30, December 30, 2021 2021 (as reported at April 2, 2022) Adjustments (as reported at December 31, 2022) Cash $ 1,993 $ (3) $ 1,990 Accounts receivable 389 3 392 Inventory 1,300 - 1,300 Prepaid expenses 177 - 177 Property and equipment, net 2,988 - 2,988 Operating lease right-of-use assets 1,638 - 1,638 Goodwill 18,344 - 18,344 Other assets 40 - 40 Total identifiable assets acquired 26,869 - 26,869 Accounts payable (989) 20 (969) Accrued liabilities (2,269) (20) (2,289) Current operating lease liabilities (446) - (446) Noncurrent operating lease liabilities (1,092) - (1,092) Noncurrent deferred tax liabilities, net (635) - (635) Total liabilities (5,431) - (5,431) Total purchase price $ 21,438 $ - $ 21,438 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Accumulated other comprehensive income | |
Schedule of components of AOCL, net of tax | Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at April 2, 2022 $ 51 $ (1,909) $ (25,586) $ (27,444) Other comprehensive income (loss) before reclassifications, net of tax 70 252 (6,371) (6,049) Amounts reclassified to earnings, net of tax (121) — — (121) Net current period other comprehensive (loss) income (51) 252 (6,371) (6,170) Balance at December 31, 2022 $ — $ (1,657) $ (31,957) $ (33,614) |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Fair value measurements | |
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820 | December 31, April 2, January 1, Description Balance Sheet Location 2022 2022 2022 Assets Nonqualified retirement plan N/A Other current assets $ 3,526 $ 3,747 $ 4,027 Foreign currency forward contracts Level 2 Other current assets — — 173 Total assets $ 3,526 $ 3,747 $ 4,200 |
Schedule of estimated fair values of the Company's long-term debt, including current maturities | December 31, April 2, January 1, 2022 2022 2022 Senior secured term loan facility $ 153,135 $ 166,663 $ 173,865 2019 Elfa revolving facilities 8,131 1,790 — Obligations under finance leases 123 179 220 Revolving credit facility 20,000 — 33,000 Total fair value of debt $ 181,389 $ 168,632 $ 207,085 |
Segment reporting (Tables)
Segment reporting (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Segment reporting | |
Schedule of segment reporting | Thirteen Weeks Ended December 31, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 239,271 $ 12,965 $ — $ 252,236 Intersegment sales — 19,083 (19,083) — Adjusted EBITDA 22,086 3,970 (3,895) 22,161 Interest expense, net 4,265 124 — 4,389 Assets (1) 1,261,798 119,176 (171,953) 1,209,021 Thirteen Weeks Ended January 1, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 248,618 $ 18,686 $ — $ 267,304 Intersegment sales — 21,852 (21,852) — Adjusted EBITDA 28,762 3,690 (1,055) 31,397 Interest expense, net 3,147 66 — 3,213 Assets (1) 1,095,409 111,330 (5,654) 1,201,085 Thirty-Nine Weeks Ended December 31, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 745,914 $ 41,628 $ — $ 787,542 Intersegment sales — 50,792 (50,792) — Adjusted EBITDA 82,071 10,123 (5,934) 86,260 Interest expense, net 11,025 370 — 11,395 Assets (1) 1,261,798 119,176 (171,953) 1,209,021 Thirty-Nine Weeks Ended January 1, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 736,726 $ 51,847 $ — $ 788,573 Intersegment sales — 54,958 (54,958) — Adjusted EBITDA 98,406 11,900 2,341 112,647 Interest expense, net 9,368 216 — 9,584 Assets (1) 1,095,409 111,330 (5,654) 1,201,085 (1) Tangible assets in the Elfa column are located outside of the United States. |
Summary of reconciliation of Adjusted EBITDA by segment to income before taxes | A reconciliation of income before taxes to Adjusted EBITDA is set forth below: Thirteen Weeks Ended Thirty-Nine Weeks Ended December 31, January 1, December 31, January 1, 2022 2022 2022 2022 Income before taxes $ 6,295 $ 18,985 $ 42,251 $ 78,905 Add: Depreciation and amortization 9,952 8,667 28,507 25,412 Interest expense, net 4,389 3,213 11,395 9,584 Pre-opening costs (a) 430 20 1,049 686 Non-cash lease expense (b) 232 (1,345) 403 (6,422) Stock-based compensation (c) 825 1,204 2,562 3,159 Management transition costs (d) — — — 473 Foreign exchange losses (gains) (e) 38 (39) 30 (34) Acquisition-related costs (f) — 692 63 692 COVID-19 costs (g) — — — 192 Adjusted EBITDA $ 22,161 $ 31,397 $ 86,260 $ 112,647 (a) Non-capital expenditures associated with opening new stores and relocating stores, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Costs related to the transition of key executives including severance and signing bonus recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Includes legal costs incurred in the third quarter of fiscal 2021 and the second quarter of fiscal 2022 associated with the acquisition of Closet Works, all of which are recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (g) Includes incremental costs attributable to the COVID-19 pandemic, which primarily consist of sanitization costs in the first quarter of fiscal 2021, all of which were recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance . |
Description of business and b_4
Description of business and basis of presentation - Description of business (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Basis of presentation | ||
Prepaid expenses and other assets | $ (3,303) | $ (3,105) |
Net cash provided by operating activities | 18,856 | 15,591 |
Investments in non-qualified plan trust | (1,049) | (267) |
Proceeds from non-qualified plan trust redemptions | 811 | 2,605 |
Net cash used in investing activities | $ (46,760) | (41,119) |
Previously Reported | ||
Basis of presentation | ||
Prepaid expenses and other assets | (767) | |
Net cash provided by operating activities | 17,929 | |
Net cash used in investing activities | (43,457) | |
Adjustment | ||
Basis of presentation | ||
Prepaid expenses and other assets | (2,338) | |
Net cash provided by operating activities | (2,338) | |
Investments in non-qualified plan trust | (267) | |
Proceeds from non-qualified plan trust redemptions | 2,605 | |
Net cash used in investing activities | $ 2,338 |
Description of business and b_5
Description of business and basis of presentation (Details) | Dec. 31, 2022 ft² store state country | Apr. 03, 2021 |
Description of business and basis of presentation | ||
Number of stores | store | 95 | |
Average size of stores (in square feet) | 25,000 | |
Average selling square feet in stores (in square feet) | 19,000 | |
Number of states | state | 33 | |
LGP | Maximum | ||
Description of business and basis of presentation | ||
Ownership percentage | 50% | |
Elfa | ||
Description of business and basis of presentation | ||
Number of countries in which products are sold on wholesale basis | country | 30 |
Description of business and b_6
Description of business and basis of presentation - Fiscal year (Details) - segment | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Apr. 03, 2021 | |
Description of business and basis of presentation | ||||
Number of Reportable Segments | 2 | |||
Fiscal year | ||||
Length of fiscal year | 364 days | 364 days | 371 days |
Detail of certain balance she_3
Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | |
Detail of certain balance sheet accounts | |||
Revenue recognized included in unearned revenue | $ 20,259 | ||
Revenue recognized included in Gift cards and store credits outstanding | 3,273 | ||
Accounts receivable, net: | |||
Trade receivables, net | 16,656 | $ 19,170 | $ 17,056 |
Credit card receivables | 11,309 | 9,308 | 13,009 |
Other receivables | 2,825 | 1,747 | 2,500 |
Accounts receivable, net | 30,790 | 30,225 | 32,565 |
Inventory: | |||
Finished goods | 179,984 | 186,025 | 188,780 |
Raw materials | 9,120 | 5,769 | 6,809 |
Work in progress | 1,203 | 989 | 1,052 |
Inventory | 190,307 | 192,783 | 196,641 |
Accrued Liabilities: | |||
Accrued payroll, benefits and bonuses | 17,979 | 32,316 | 27,160 |
Unearned revenue | 18,830 | 22,603 | 32,110 |
Accrued transaction and property tax | 15,346 | 15,056 | 15,944 |
Gift cards and store credits outstanding | 13,924 | 11,921 | 12,735 |
Accrued sales returns | 4,302 | 3,197 | 3,534 |
Accrued interest | 348 | 121 | 151 |
Other accrued liabilities | 4,609 | 3,790 | 6,639 |
Accrued liabilities | $ 75,338 | $ 89,004 | $ 98,273 |
Leases (Details)
Leases (Details) | Dec. 31, 2022 store |
Leases | |
Number of store locations | 95 |
Minimum | |
Leases | |
Expiration term | 1 year |
Maximum | |
Leases | |
Expiration term | 15 years |
Leases - Components of lease co
Leases - Components of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Lease costs | ||||
Operating lease costs | $ 22,868 | $ 21,873 | $ 68,043 | $ 65,562 |
Variable lease costs | 335 | 373 | 1,084 | 1,191 |
Total lease costs | $ 23,203 | $ 22,246 | $ 69,127 | $ 66,753 |
Leases - Weighted average remai
Leases - Weighted average remaining operating lease term and incremental borrowing rate (Details) | Dec. 31, 2022 | Jan. 01, 2022 |
Leases | ||
Weighted average remaining lease term (years) | 6 years 7 months 6 days | 7 years 1 month 6 days |
Weighted average incremental borrowing rate | 10.60% | 11.50% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Dec. 30, 2021 |
Operating leases | ||||
Within 1 year (remaining) | $ 23,168 | |||
2 years | 93,057 | |||
3 years | 84,677 | |||
4 years | 76,423 | |||
5 years | 66,537 | |||
Thereafter | 186,178 | |||
Total lease payments | 530,040 | |||
Less amount representing interest | 149,488 | |||
Total lease liability | 380,552 | |||
Current operating lease liabilities | 58,309 | $ 52,540 | $ 52,486 | $ 446 |
Total non-current lease liability | 322,243 | $ 317,345 | $ 313,414 | $ 1,092 |
Amount of minimum lease payments for leases signed but not yet commenced | $ 33,849 |
Net income per common share (De
Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | |
Numerator: | ||||||||
Net income | $ 4,168 | $ 15,747 | $ 10,479 | $ 13,693 | $ 27,195 | $ 17,672 | $ 30,394 | $ 58,560 |
Denominator: | ||||||||
Weighted-average common shares - diluted | 49,452,980 | 50,298,101 | 50,024,589 | 50,310,320 | ||||
Nonvested restricted stock awards and other dilutive securities | 189,858 | 686,633 | 363,380 | 923,423 | ||||
Weighted-average common shares - basic | 49,263,122 | 49,611,468 | 49,661,209 | 49,386,897 | ||||
Net income per common share - basic | $ 0.08 | $ 0.28 | $ 0.61 | $ 1.19 | ||||
Net income per common share - diluted | $ 0.08 | $ 0.27 | $ 0.61 | $ 1.16 | ||||
Stock Options | ||||||||
Antidilutive securities not included: | ||||||||
Antidilutive securities | 1,555,286 | 1,654,260 | 1,481,921 | 1,714,940 | ||||
Nonvested restricted stock awards | ||||||||
Antidilutive securities not included: | ||||||||
Antidilutive securities | 432,344 | 97,831 | 405,011 | 125,239 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Dec. 30, 2021 | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 |
Closet Works Acquisition | ||||
Cash | $ 1,990 | |||
Accounts receivable | 392 | |||
Inventory | 1,300 | |||
Prepaid expenses | 177 | |||
Property and equipment, net | 2,988 | |||
Operating lease right of use assets | 1,638 | $ 357,607 | $ 347,519 | $ 342,980 |
Goodwill | 18,344 | 221,159 | 221,159 | 221,183 |
Other assets | 40 | |||
Total identifiable assets acquired | 26,869 | |||
Accounts payable | (969) | |||
Accrued liabilities | (2,289) | |||
Current operating lease liabilities | (446) | (58,309) | (52,540) | (52,486) |
Noncurrent operating lease liabilities | (1,092) | $ (322,243) | $ (317,345) | $ (313,414) |
Noncurrent deferred tax liabilities, net | (635) | |||
Total liabilities | (5,431) | |||
Total purchase price | 21,438 | |||
Closet Works | ||||
Acquisition | ||||
Consideration transferred | $ 21,438 | |||
Percentage of voting equity interest acquired | 100% | |||
Closet Works | Previously Reported | ||||
Closet Works Acquisition | ||||
Cash | $ 1,993 | |||
Accounts receivable | 389 | |||
Inventory | 1,300 | |||
Prepaid expenses | 177 | |||
Property and equipment, net | 2,988 | |||
Operating lease right of use assets | 1,638 | |||
Goodwill | 18,344 | |||
Other assets | 40 | |||
Total identifiable assets acquired | 26,869 | |||
Accounts payable | (989) | |||
Accrued liabilities | (2,269) | |||
Current operating lease liabilities | (446) | |||
Noncurrent operating lease liabilities | (1,092) | |||
Noncurrent deferred tax liabilities, net | (635) | |||
Total liabilities | (5,431) | |||
Total purchase price | 21,438 | |||
Closet Works | Adjustment | ||||
Closet Works Acquisition | ||||
Cash | (3) | |||
Accounts receivable | 3 | |||
Accounts payable | 20 | |||
Accrued liabilities | $ (20) |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income taxes | ||||
Provision for income taxes | $ 2,127 | $ 5,292 | $ 11,857 | $ 20,345 |
Effective income tax rate (as a percent) | 33.80% | 27.90% | 28.10% | 25.80% |
U.S. federal corporate tax rate | 21% | 21% |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Standby letters of credit | |
Commitments and contingencies | |
Amount outstanding | $ 3,851 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2022 USD ($) | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | $ (27,444) |
Other comprehensive income (loss) before reclassifications, net of tax | (6,049) |
Amounts reclassified to earnings, net of tax | (121) |
Net current period other comprehensive (loss) income | (6,170) |
Balance end of period | (33,614) |
Minimum pension liability | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | (1,909) |
Other comprehensive income (loss) before reclassifications, net of tax | 252 |
Net current period other comprehensive (loss) income | 252 |
Balance end of period | (1,657) |
Foreign currency translation | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | (25,586) |
Other comprehensive income (loss) before reclassifications, net of tax | (6,371) |
Net current period other comprehensive (loss) income | (6,371) |
Balance end of period | (31,957) |
Foreign currency hedge instruments | |
Rollforward of the amounts included in AOCI, net of taxes | |
Balance beginning of period | 51 |
Other comprehensive income (loss) before reclassifications, net of tax | 70 |
Amounts reclassified to earnings, net of tax | (121) |
Net current period other comprehensive (loss) income | $ (51) |
Foreign currency forward cont_2
Foreign currency forward contracts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 1% | 96% |
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Amount associated with forward contracts not designated as hedge instruments | $ 0 | |
Foreign currency hedge instruments | Designated as Hedging Instrument | Cash Flow Hedging | ||
Net impact for unrealized gain/loss for settled foreign currency hedge instruments related to inventory on hand | 0 | |
Net impact in AOCL related to foreign currency hedge instruments | $ 0 | |
Minimum | Foreign currency forward contracts | ||
Term of contract | 1 month | |
Maximum | Foreign currency forward contracts | ||
Term of contract | 12 months |
Fair value measurements (Detail
Fair value measurements (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 |
Assets | |||
Total assets | $ 3,526 | $ 3,747 | $ 4,200 |
Other current assets | |||
Assets | |||
Nonqualified retirement plan | $ 3,526 | $ 3,747 | 4,027 |
Level 2 | Other current assets | |||
Assets | |||
Foreign currency forward contracts | $ 173 |
Fair value measurements - Estim
Fair value measurements - Estimated fair value of long-term debt, including current maturities (Details) - Level 2 - USD ($) $ in Thousands | Dec. 31, 2022 | Apr. 02, 2022 | Jan. 01, 2022 |
Fair value measurements | |||
Total fair value of debt | $ 181,389 | $ 168,632 | $ 207,085 |
The 2019 Elfa Revolving Credit Facility | |||
Fair value measurements | |||
Total fair value of debt | 8,131 | 1,790 | |
Revolving credit facility | |||
Fair value measurements | |||
Total fair value of debt | 20,000 | 33,000 | |
Senior secured term loan facility | |||
Fair value measurements | |||
Total fair value of debt | 153,135 | 166,663 | 173,865 |
Obligations under finance leases | |||
Fair value measurements | |||
Total fair value of debt | $ 123 | $ 179 | $ 220 |
Segment reporting (Details)
Segment reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 USD ($) country | Jan. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) segment country | Jan. 01, 2022 USD ($) | Apr. 02, 2022 USD ($) | |
Segment reporting | |||||
Number of reportable segments | segment | 2 | ||||
Segment reporting | |||||
Sales | $ 252,236 | $ 267,304 | $ 787,542 | $ 788,573 | |
Adjusted EBITDA | 22,161 | 31,397 | 86,260 | 112,647 | |
Interest expense, net | 4,389 | 3,213 | 11,395 | 9,584 | |
Assets | $ 1,209,021 | 1,201,085 | $ 1,209,021 | 1,201,085 | $ 1,197,577 |
Elfa | |||||
Segment reporting | |||||
Number of countries in which products are sold on wholesale basis | country | 30 | 30 | |||
Operating segments | TCS | |||||
Segment reporting | |||||
Sales | $ 239,271 | 248,618 | $ 745,914 | 736,726 | |
Adjusted EBITDA | 22,086 | 28,762 | 82,071 | 98,406 | |
Interest expense, net | 4,265 | 3,147 | 11,025 | 9,368 | |
Assets | 1,261,798 | 1,095,409 | 1,261,798 | 1,095,409 | |
Operating segments | Elfa | |||||
Segment reporting | |||||
Sales | 12,965 | 18,686 | 41,628 | 51,847 | |
Adjusted EBITDA | 3,970 | 3,690 | 10,123 | 11,900 | |
Interest expense, net | 124 | 66 | 370 | 216 | |
Assets | 119,176 | 111,330 | 119,176 | 111,330 | |
lntersegment | |||||
Segment reporting | |||||
Sales | (19,083) | (21,852) | (50,792) | (54,958) | |
Adjusted EBITDA | (3,895) | (1,055) | (5,934) | 2,341 | |
Assets | (171,953) | (5,654) | (171,953) | (5,654) | |
lntersegment | Elfa | |||||
Segment reporting | |||||
Sales | $ 19,083 | $ 21,852 | $ 50,792 | $ 54,958 |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of Adjusted EBITDA by segment to income before taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment reporting | ||||
Income before taxes | $ 6,295 | $ 18,985 | $ 42,251 | $ 78,905 |
Depreciation and amortization | 9,952 | 8,667 | 28,507 | 25,412 |
Interest expense, net | 4,389 | 3,213 | 11,395 | 9,584 |
Pre-opening costs | 430 | 20 | 1,049 | 686 |
Non-cash lease expense | 232 | (1,345) | 403 | (6,422) |
Stock-based compensation | 825 | 1,204 | 2,562 | 3,159 |
Management transition costs | 473 | |||
Foreign exchange losses (gains) | 38 | (39) | 30 | (34) |
Acquisition-related costs | 692 | 63 | 692 | |
COVID-19 costs | 192 | |||
Adjusted EBITDA | $ 22,161 | $ 31,397 | $ 86,260 | $ 112,647 |
Share repurchase program (Detai
Share repurchase program (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2022 | Aug. 01, 2022 | |
Maximum | ||
Share repurchase program | ||
Amount of stock repurchases | $ 30,000,000 | |
Common stock | ||
Share repurchase program | ||
Amount of stock repurchases | $ 5,000,000 | |
Amount of stock repurchased (in shares) | 939,967 | |
Average price of the common stock purchased (in dollars per share) | $ 5.30 | |
Remaining shares available for repurchase | $ 25,000,000 |