DEI_Information_Document
DEI Information Document (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 20, 2015 | Aug. 02, 2014 | |
Document Information [Abstract] | |||
Entity Registrant Name | EXPRESS, INC. | ||
Entity Central Index Key | 1483510 | ||
Current Fiscal Year End Date | -30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 84,386,783 | ||
Entity Public Float | $1,315,451,381 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $346,159 | $311,884 |
Receivables, net | 23,272 | 17,384 |
Inventories | 241,063 | 212,510 |
Prepaid minimum rent | 29,465 | 28,554 |
Other | 14,277 | 13,129 |
Total current assets | 654,236 | 583,461 |
PROPERTY AND EQUIPMENT | 840,340 | 767,661 |
Less: accumulated depreciation | -432,733 | -391,539 |
Property and equipment, net | 407,607 | 376,122 |
TRADENAMES/DOMAIN NAMES | 197,562 | 197,812 |
DEFERRED TAX ASSETS | 12,371 | 17,558 |
OTHER ASSETS | 6,374 | 7,717 |
Total assets | 1,278,150 | 1,182,670 |
CURRENT LIABILITIES: | ||
Accounts payable | 153,745 | 154,736 |
Deferred revenue | 28,575 | 28,436 |
Accrued expenses | 105,139 | 116,035 |
Total current liabilities | 287,459 | 299,207 |
LONG-TERM DEBT | 199,527 | 199,170 |
DEFERRED LEASE CREDITS | 128,450 | 114,509 |
OTHER LONG-TERM LIABILITIES | 106,375 | 95,215 |
Total liabilities | 721,811 | 708,101 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock – $0.01 par value; 500,000 shares authorized; 90,400 shares and 89,859 shares issued at January 31, 2015 and February 1, 2014, respectively, and 84,298 shares and 83,966 shares outstanding at January 31, 2015 and February 1, 2014, respectively | 904 | 899 |
Additional paid-in capital | 149,789 | 130,511 |
Accumulated other comprehensive loss | -3,057 | -728 |
Retained earnings | 516,785 | 448,460 |
Treasury stock – at average cost; 6,102 shares and 5,893 shares at January 31, 2015 and February 1, 2014, respectively | -108,082 | -104,573 |
Total stockholders’ equity | 556,339 | 474,569 |
Total liabilities and stockholders’ equity | $1,278,150 | $1,182,670 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 90,400,000 | 89,859,000 |
Common stock, shares outstanding | 84,298,000 | 83,966,000 |
Treasury stock, shares at average cost | 6,102,000 | 5,893,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Statement [Abstract] | |||
NET SALES | $2,165,481 | $2,219,125 | $2,157,227 |
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS | 1,504,527 | 1,501,418 | 1,414,588 |
Gross profit | 660,954 | 717,707 | 742,639 |
OPERATING EXPENSES: | |||
Selling, general, and administrative expenses | 524,041 | 504,277 | 491,599 |
Other operating expense (income), net | 316 | -829 | -523 |
Total operating expenses | 524,357 | 503,448 | 491,076 |
OPERATING INCOME | 136,597 | 214,259 | 251,563 |
INTEREST EXPENSE, NET | 23,896 | 19,522 | 19,552 |
OTHER EXPENSE, NET | 1,145 | 1,571 | 40 |
INCOME BEFORE INCOME TAXES | 111,556 | 193,166 | 231,971 |
INCOME TAX EXPENSE | 43,231 | 76,627 | 92,704 |
NET INCOME | 68,325 | 116,539 | 139,267 |
OTHER COMPREHENSIVE LOSS: | |||
Foreign currency translation | -2,329 | -708 | -13 |
COMPREHENSIVE INCOME | $65,996 | $115,831 | $139,254 |
EARNINGS PER SHARE: | |||
Basic (USD per share) | $0.81 | $1.38 | $1.60 |
Diluted (USD per share) | $0.81 | $1.37 | $1.60 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (shares) | 84,144 | 84,466 | 86,852 |
Diluted (shares) | 84,554 | 85,068 | 87,206 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at start of period at Jan. 28, 2012 | $281,147 | $890 | $87,713 | $192,654 | ($7) | ($103) |
Balance at start of period, treasury stock (shares) at Jan. 28, 2012 | 59 | |||||
Balance, at start of period (shares) at Jan. 28, 2012 | 88,887 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 139,267 | 139,267 | ||||
Issuance of common stock (shares) | 376 | |||||
Issuance of common stock | 623 | 3 | 620 | |||
Share-based compensation | 16,308 | 16,308 | ||||
Tax benefit from share-based compensation | 371 | 371 | ||||
Repurchase of common stock (shares) | -4,000 | -4,039 | -4,039 | |||
Repurchase of common stock | -66,541 | -66,541 | ||||
Foreign currency translation | -13 | -13 | ||||
Balance at end of period at Feb. 02, 2013 | 371,162 | 893 | 105,012 | 331,921 | -20 | -66,644 |
Balance at end of period, treasury stock (shares) at Feb. 02, 2013 | 4,098 | |||||
Balance, at end of period (shares) at Feb. 02, 2013 | 85,224 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 116,539 | 116,539 | ||||
Issuance of common stock (shares) | 537 | |||||
Issuance of common stock | 4,701 | 6 | 4,695 | |||
Share-based compensation | 21,174 | |||||
Tax benefit from share-based compensation | -370 | -370 | ||||
Repurchase of common stock (shares) | -1,600 | -1,795 | -1,795 | |||
Repurchase of common stock | -37,929 | -37,929 | ||||
Foreign currency translation | -708 | -708 | ||||
Balance at end of period at Feb. 01, 2014 | 474,569 | 899 | 130,511 | 448,460 | -728 | -104,573 |
Balance at end of period, treasury stock (shares) at Feb. 01, 2014 | 5,893 | 5,893 | ||||
Balance, at end of period (shares) at Feb. 01, 2014 | 89,859 | 83,966 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 68,325 | 68,325 | ||||
Issuance of common stock (shares) | 541 | |||||
Issuance of common stock | 0 | 5 | -5 | |||
Share-based compensation | 19,283 | 19,283 | ||||
Tax benefit from share-based compensation | 0 | |||||
Repurchase of common stock (shares) | -209 | -209 | ||||
Repurchase of common stock | -3,509 | -3,509 | ||||
Foreign currency translation | -2,329 | -2,329 | ||||
Balance at end of period at Jan. 31, 2015 | $556,339 | $904 | $149,789 | $516,785 | ($3,057) | ($108,082) |
Balance at end of period, treasury stock (shares) at Jan. 31, 2015 | 6,102 | 6,102 | ||||
Balance, at end of period (shares) at Jan. 31, 2015 | 90,400 | 84,298 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $68,325 | $116,539 | $139,267 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 76,437 | 69,810 | 67,727 |
Loss on disposal of property and equipment | 1,530 | 670 | 124 |
Impairment charge | 10,527 | 26 | 6 |
Excess tax benefit from share-based compensation | -49 | -210 | -422 |
Share-based compensation | 19,326 | 21,174 | 16,308 |
Deferred taxes | 6,291 | -807 | 3,937 |
Landlord allowance amortization | -11,369 | -9,342 | -8,166 |
Changes in operating assets and liabilities: | |||
Receivables, net | -5,724 | -6,508 | -1,991 |
Inventories | -28,989 | 2,133 | -1,997 |
Accounts payable, deferred revenue, and accrued expenses | -886 | -29,870 | 17,564 |
Other assets and liabilities | 21,151 | 31,460 | 37,007 |
Net cash provided by operating activities | 156,570 | 195,075 | 269,364 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -115,088 | -105,368 | -99,674 |
Purchase of intangible assets | -1,010 | -94 | -210 |
Net cash used in investing activities | -116,098 | -105,462 | -99,884 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments on capital lease obligations | -1,478 | -313 | -55 |
Excess tax benefit from share-based compensation | 49 | 210 | 422 |
Proceeds from share-based compensation | 0 | 4,701 | 623 |
Repurchase of common stock | -3,509 | -37,929 | -66,541 |
Net cash used in financing activities | -4,938 | -33,331 | -65,551 |
EFFECT OF EXCHANGE RATE ON CASH | -1,259 | -695 | 6 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 34,275 | 55,587 | 103,935 |
CASH AND CASH EQUIVALENTS, Beginning of period | 311,884 | 256,297 | 152,362 |
CASH AND CASH EQUIVALENTS, End of period | 346,159 | 311,884 | 256,297 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 17,574 | 17,574 | 17,574 |
Cash paid to taxing authorities | $43,171 | $75,591 | $99,647 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2015 | |
Description of Business and Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation |
Business Description | |
Express, Inc., together with its subsidiaries ("Express" or the "Company"), is a specialty apparel and accessories retailer of women's and men's merchandise, targeting the 20 to 30 year old customer. Express merchandise is sold through retail stores and the Company's website, www.express.com. As of January 31, 2015, Express operated 641 primarily mall-based stores in the United States, Canada, and Puerto Rico, including 41 factory outlet stores. Additionally, the Company earned revenue from 34 franchise locations. These franchise locations are operated by franchisees pursuant to franchise agreements covering the Middle East, Mexico, certain other Latin American countries, and South Africa. Under the franchise agreements, the franchisees operate stores and shop-in-shops that sell Express-branded apparel and accessories purchased directly from the Company. | |
Fiscal Year | |
The Company's fiscal year ends on the Saturday closest to January 31. Fiscal years are referred to by the calendar year in which the fiscal year commences. References herein to "2014," "2013," and "2012" represent the 52-week period ended January 31, 2015, the 52-week period ended February 1, 2014, and the 53-week period ended February 2, 2013. | |
Basis of Presentation | |
Express, Inc., a holding company, owns all of the outstanding equity interests in Express Topco LLC, a holding company, which owns all of the outstanding equity interests in Express Holding, LLC ("Express Holding"). Express Holding owns all of the outstanding equity interests in Express, LLC and Express Finance Corp. ("Express Finance"). Express, LLC, together with its subsidiaries, including Express Fashion Operations, LLC, conducts the operations of the Company. Express, LLC was a division of L Brands, Inc. ("L Brands") until it was acquired by an affiliate of Golden Gate Private Equity, Inc. ("Golden Gate") in 2007 (the "Golden Gate Acquisition"). Express Finance was formed on January 28, 2010, solely for the purpose of serving as co-issuer of the 8 3/4% Senior Notes ("Senior Notes") issued on March 5, 2010 and described in Note 8. | |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||
Use of Estimates in the Preparation of Financial Statements | ||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements. Actual results may differ from those estimates. The Company revises its estimates and assumptions as new information becomes available. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents include investments in U.S. treasury money market funds, payments due from banks for third-party credit and debit card transactions for up to 5 days of sales, cash on hand, and deposits with financial institutions. As of January 31, 2015 and February 1, 2014, amounts due from banks for credit and debit card transactions totaled approximately $11.9 million and $10.3 million, respectively. | ||||||||||||
Outstanding checks not yet presented for payment amounted to $14.6 million and $38.3 million as of January 31, 2015 and February 1, 2014, respectively, and are included in accounts payable on the Consolidated Balance Sheets. | ||||||||||||
Fair Value Measurements | ||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. | ||||||||||||
Level 1- Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||
Level 2- Valuation is based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||
Level 3- Valuation is based upon other unobservable inputs that are significant to the fair value measurement. | ||||||||||||
Financial Assets | ||||||||||||
The following table presents the Company's financial assets measured at fair value on a recurring basis as of January 31, 2015 and February 1, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall. | ||||||||||||
January 31, 2015 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(in thousands) | ||||||||||||
U.S. treasury securities money market funds | $ | 166,602 | $ | — | $ | — | ||||||
February 1, 2014 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(in thousands) | ||||||||||||
U.S. treasury securities money market funds | $ | 290,361 | $ | — | $ | — | ||||||
Non-Financial Assets | ||||||||||||
The Company's non-financial assets, which include fixtures, equipment, improvements, and intangible assets, are not required to be measured at fair value on a recurring basis. However, the Company tests for impairment, if certain triggering events occur indicating the carrying value of these assets may not be recoverable or annually in the case of indefinite lived intangibles. See additional discussion under the heading "Property and Equipment, Net" in this note below for additional section that follows. | ||||||||||||
The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables, prepaid expenses, and payables as of January 31, 2015 and February 1, 2014 approximated their fair values. | ||||||||||||
Receivables, Net | ||||||||||||
Receivables, net consist primarily of receivables from our franchisees and third-party resellers of our gift cards, as well as other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability. The Company's allowance for doubtful accounts was not significant as of January 31, 2015 or February 1, 2014. | ||||||||||||
Inventories | ||||||||||||
Inventories are principally valued at the lower of cost or market on a weighted-average cost basis. The Company writes down inventory, the impact of which is reflected in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount the Company expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. The lower of cost or market adjustment to inventory as of January 31, 2015 and February 1, 2014 was $11.4 million and $11.5 million, respectively. | ||||||||||||
The Company also records an inventory shrink reserve calculated as a percentage of cost of goods sold for estimated merchandise inventory losses for the period between the last physical inventory count and the balance sheet date. This estimate is based on management's analysis of historical results. | ||||||||||||
Advertising | ||||||||||||
Advertising production costs are expensed at the time the promotion first appears in media, stores, or on the website, except for direct response advertising costs that relate primarily to the production and distribution of the Company's catalogs. Direct response advertising costs are amortized over the expected future revenue stream, which is typically 1 to 3 months from the date materials are mailed. Total advertising expense totaled $104.6 million, $85.9 million, and $85.8 million in 2014, 2013, and 2012, respectively. Advertising costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. | ||||||||||||
Private Label Credit Card | ||||||||||||
The Company has an agreement with a third party to provide customers with private label credit cards (the “Card Agreement”). Each private label credit card bears the logo of the Express brand and can only be used at the Company's retail store locations and website. A third-party financing company is the sole owner of the accounts issued under the private label credit card program and absorbs the losses associated with non-payment by the private label card holders and a portion of any fraudulent usage of the accounts. Pursuant to the Card Agreement, the Company receives reimbursement funds from the third-party financing company for expenses the Company incurs based on usage of the private label credit cards. These reimbursement funds are used by the Company to fund marketing programs associated with the private label credit card and are recognized when the amounts are fixed or determinable and collectability is reasonably assured, which is generally at the time the private label credit cards are used or specified transactions occur. The funds received related to these private label credit cards are classified in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. | ||||||||||||
Loyalty Program | ||||||||||||
The Company maintains a customer loyalty program (“Loyalty Program”) in which customers earn points towards rewards for qualifying purchases and other marketing programs. The Loyalty Program was previously restricted to holders of the Company's private label credit cards. However, beginning in 2011, a tender agnostic program was piloted that opened the Loyalty Program to non-private label credit card holders. The Company rolled this program out in the United States in the first quarter of 2012. Upon reaching specified point values, customers are issued a reward, which they may redeem for purchases at the Company's U.S. stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company accrues for the anticipated costs related to redemptions of the certificates as points are earned. To calculate this expense, the Company estimates margin rates and makes assumptions related to card holder redemption rates, which are both based on historical experience. This expense is included within cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. The loyalty liability is included in accrued expenses on the Consolidated Balance Sheets. | ||||||||||||
Property and Equipment, Net | ||||||||||||
Property and equipment are stated at cost. Depreciation of property and equipment is computed on a straight-line basis, using the following useful lives: | ||||||||||||
Category | Depreciable Life | |||||||||||
Software, including software developed for internal use | 3 - 7 years | |||||||||||
Store related assets and other property and equipment | 3 - 10 years | |||||||||||
Furniture, fixtures and equipment | 5 - 7 years | |||||||||||
Leasehold improvements | Shorter of lease term or useful life of the asset, typically no longer than 15 years | |||||||||||
Building improvements | 6 - 30 years | |||||||||||
When a decision is made to dispose of property and equipment prior to the end of its previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in other operating expense (income), net, in the Consolidated Statements of Income and Comprehensive Income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. | ||||||||||||
Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The reviews are conducted at the store level, the lowest identifiable level of cash flow. The impairment test requires the Company to estimate the fair value of the assets and compare this to their carrying value. If the fair value of the assets are less than the carrying value, then an impairment charge is recognized and the non-financial assets are recorded at fair value. The Company estimates the fair value using a discounted cash flow model. Factors used in the evaluation include, but are not limited to, management's plans for future operations, recent operating results, and projected cash flows. In 2014, as a result of decreased performance in certain stores, the Company recognized impairment charges of $10.5 million related to 14 stores. The impairment charges related to store leasehold improvements in 2013 and 2012 were minimal. Impairment charges are recorded in cost of goods sold, buying, and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. | ||||||||||||
Intangible Assets | ||||||||||||
The Company has intangible assets, which consist primarily of the Express and related tradenames and its Internet domain names. Intangible assets with indefinite lives are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present. The impairment review is performed by assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. The consideration of indefinite lived intangible assets for impairment requires judgments surrounding future operating performance, economic conditions, and business plans, among other factors. | ||||||||||||
Intangible assets with finite lives are amortized on a basis reflecting when the economic benefits of the assets are consumed or otherwise used up over their respective estimated useful lives. Intangible assets with finite lives are reviewed for impairment when events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. | ||||||||||||
The Company did not incur any impairment charges on intangible assets in 2014, 2013, or 2012. | ||||||||||||
Leases and Leasehold Improvements | ||||||||||||
The Company has leases that contain pre-determined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The rent expense is recognized on a straight-line basis commencing upon possession date. The Company records the difference between the recognized rent expense and amounts payable under the leases as deferred lease credits. The Company also has leases that contain contingent rent provisions, such as overage rent. For these leases, the Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets and the corresponding rent expense in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income when specified financial levels have been achieved or when management determines that achieving the specified financial levels during the year is probable. | ||||||||||||
The Company receives allowances for leasehold improvements from landlords related to its retail stores. These allowances are generally comprised of cash amounts received from landlords as part of negotiated lease terms. The Company records a receivable and a landlord allowance upon execution of the corresponding lease. The landlord allowance is recorded as deferred lease credits on the Consolidated Balance Sheets. The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease, including the pre-opening build-out period. The receivable is reduced as allowance amounts are received from landlords. | ||||||||||||
The Company has leasehold improvements which are depreciated over the shorter of the initial lease term, including renewal periods if reasonably assured, or their estimated useful lives. | ||||||||||||
Debt Issuance Costs and Discount | ||||||||||||
Fees incurred in connection with the Company's borrowings, referred to as debt issuance costs, are capitalized and included in other assets on the Consolidated Balance Sheets. Debt discounts are reflected as a reduction of debt on the Consolidated Balance Sheets. Debt issuance costs and debt discounts are amortized to interest expense over the term of the respective debt agreements. As of January 31, 2015 and February 1, 2014, debt issuance costs totaled $4.7 million and $6.2 million, respectively. The Company recorded amortization expense related to debt issuance costs of $1.5 million, $1.4 million, and $1.3 million in 2014, 2013, and 2012, respectively. The Company recorded amortization expense for debt discounts of $0.4 million, $0.3 million, and $0.3 million in 2014, 2013, and 2012, respectively. | ||||||||||||
Income Taxes | ||||||||||||
The Company accounts for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company's assets and liabilities. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. | ||||||||||||
Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. | ||||||||||||
A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. | ||||||||||||
The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company's judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available. | ||||||||||||
Interest and penalties related to unrecognized tax benefits are recognized within income tax expense in the Consolidated Statements of Income and Comprehensive Income. Accrued interest and penalties are included within accrued expenses on the Consolidated Balance Sheets. | ||||||||||||
The income tax liability was $16.4 million and $19.2 million as of January 31, 2015 and February 1, 2014, respectively, and was included in accrued liabilities on the Consolidated Balance Sheets. | ||||||||||||
The Company may be subject to periodic audits by the Internal Revenue Service ("IRS") and other taxing authorities. These audits may challenge certain of the Company's tax positions, such as the timing and amount of deductions and allocation of taxable income to various jurisdictions. | ||||||||||||
Self Insurance | ||||||||||||
The Company is generally self-insured in the United States for medical, workers' compensation, and general liability benefits up to certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self insurance is included in accrued expenses on the Consolidated Balance Sheets. | ||||||||||||
Foreign Currency Translation | ||||||||||||
The Canadian dollar is the functional currency for the Company's Canadian business. Assets and liabilities denominated in foreign currencies were translated into U.S. dollars (the reporting currency) at the exchange rate prevailing at the applicable balance sheet date. Revenues and expenses denominated in foreign currencies were translated into U.S. dollars at the monthly average exchange rate for the period. Gains or losses resulting from foreign currency transactions are included in other expense (income), net whereas related translation adjustments are reported as an element of other comprehensive income, both of which are included in the Consolidated Statements of Income and Comprehensive Income. The Company may, in certain situations, designate certain foreign currency denominated, long-term intercompany financing transactions as being of a long-term investment nature and therefore record gains and losses on the transactions arising from changes in exchange rates as translation adjustments. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company recognizes sales at the time the customer takes possession of the merchandise which, for e-commerce revenues, requires an estimate of shipments that have not yet been received by the customer. The estimate of these shipments is based on shipping terms and historical delivery times. Amounts related to shipping and handling revenues billed to customers in an e-commerce sale transaction are recorded in net sales, and the related shipping and handling costs are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. The Company's shipping and handling revenues were $11.3 million, $14.5 million, and $17.4 million in 2014, 2013, and 2012, respectively. Associate discounts are classified as a reduction of net sales. Net sales exclude sales tax collected from customers and remitted to governmental authorities. | ||||||||||||
The Company also sells merchandise to multiple franchisees pursuant to different franchise agreements. Revenues may consist of sales of product and/or royalties. Revenues from products sold to franchisees are recorded at the time title transfers to the franchisees. Royalty revenue is based upon a percentage of the franchisee’s net sales to third parties and is earned when such sales to third parties occur. | ||||||||||||
The Company provides a reserve for projected merchandise returns based on prior experience. Merchandise returns are often resalable merchandise and are refunded by issuing the same payment tender as the original purchase. Merchandise exchanges of the same product and price, typically due to size or color preferences, are not considered merchandise returns. The sales returns reserve was $9.7 million and $11.0 million as of January 31, 2015 and February 1, 2014, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. | ||||||||||||
The Company sells gift cards in its stores, on its e-commerce website, and through third parties. These gift cards do not expire or lose value over periods of inactivity. The Company accounts for gift cards by recognizing a liability at the time a gift card is sold. The gift card liability balance was $26.0 million and $25.2 million, as of January 31, 2015 and February 1, 2014, respectively, and is included in deferred revenue on the Consolidated Balance Sheets. The Company recognizes revenue from gift cards when they are redeemed by the customer. The Company also recognizes income on unredeemed gift cards, which is recognized proportionately using a time-based attribution method from issuance of the gift card to the time when it can be determined that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions, referred to as "gift card breakage". The gift card breakage rate is based on historical redemption patterns and totaled $2.7 million, $3.0 million, and $2.3 million in 2014, 2013, and 2012, respectively. Gift card breakage is included in net sales in the Consolidated Statements of Income and Comprehensive Income. | ||||||||||||
Cost of Goods Sold, Buying and Occupancy Costs | ||||||||||||
Cost of goods sold, buying and occupancy costs, include merchandise costs, freight, inventory shrinkage, and other gross margin related expenses. Buying and occupancy expenses primarily include payroll, benefit costs, and other operating expenses for the buying departments (merchandising, design, manufacturing, and planning and allocation), distribution, fulfillment, rent, common area maintenance, real estate taxes, utilities, maintenance, and depreciation for stores. | ||||||||||||
Selling, General, and Administrative Expenses | ||||||||||||
Selling, general, and administrative expenses include all operating costs not included in cost of goods sold, buying and occupancy costs, with the exception of proceeds received from insurance claims and gain/loss on disposal of assets, which are included in other operating expense, net. These costs include payroll and other expenses related to operations at our corporate home office, store expenses other than occupancy, and marketing expenses, which include production, mailing, and print advertising costs. | ||||||||||||
Other Operating Income, Net | ||||||||||||
Other operating income, net primarily consists of gains/losses on disposal of assets and excess proceeds from the settlement of insurance claims. | ||||||||||||
Other Expense (Income), Net | ||||||||||||
Other expense (income), net, primarily consists of foreign currency transaction gains/losses. | ||||||||||||
Segment Reporting | ||||||||||||
The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The Company has determined that, together, its President and Chief Executive Officer and its Chief Operating Officer are the Chief Operating Decision Maker, and that there is one operating segment. Therefore, the Company reports results as a single segment, which includes the operation of its Express brick-and-mortar retail and outlet stores, e-commerce operations, and franchise operations. | ||||||||||||
The following is information regarding the Company's major product and sales channels: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Apparel | $ | 1,883,641 | $ | 1,922,868 | $ | 1,872,844 | ||||||
Accessories and other | 240,052 | 254,426 | 250,180 | |||||||||
Other revenue | 41,788 | 41,831 | 34,203 | |||||||||
Total net sales | $ | 2,165,481 | $ | 2,219,125 | $ | 2,157,227 | ||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Stores | $ | 1,769,478 | $ | 1,836,704 | $ | 1,851,527 | ||||||
E-commerce | 354,215 | 340,590 | 271,497 | |||||||||
Other revenue | 41,788 | 41,831 | 34,203 | |||||||||
Total net sales | $ | 2,165,481 | $ | 2,219,125 | $ | 2,157,227 | ||||||
Other revenue consists primarily of revenue from franchise agreements, sell-off revenue related to marked-out-of-stock inventory sales to third parties, and shipping and handling revenue related to e-commerce activity. | ||||||||||||
Revenues and long-lived assets relating to the Company's international operations for 2014, 2013, and 2012, and as of January 31, 2015 and February 1, 2014, respectively, were not material and, therefore, not reported separately from domestic revenues and long-lived assets. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property and Equipment [Abstract] | ||||||||
Property and Equipment, Net | Property and Equipment, Net | |||||||
Property and equipment, net, consisted of: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
(in thousands) | ||||||||
Building improvements | $ | 86,487 | $ | 13,955 | ||||
Furniture, fixtures and equipment, software | 341,272 | 315,462 | ||||||
Leasehold improvements | 371,462 | 344,369 | ||||||
Construction in process | 40,291 | 93,560 | ||||||
Other | 828 | 315 | ||||||
Total | 840,340 | 767,661 | ||||||
Less: accumulated depreciation | (432,733 | ) | (391,539 | ) | ||||
Property and equipment, net | $ | 407,607 | $ | 376,122 | ||||
Depreciation expense totaled $73.5 million, $66.7 million, and $64.6 million in 2014, 2013, and 2012, respectively, excluding impairment charges discussed in Note 2. |
Leased_Facilities_and_Commitme
Leased Facilities and Commitments | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Leased Facilities and Commitments [Abstract] | ||||||||||
Leased Facilities and Commitments | Leased Facilities and Commitments | |||||||||
Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. | ||||||||||
Rent expense is summarized as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Store rent: | (in thousands) | |||||||||
Fixed minimum | $ | 209,323 | $ | 201,477 | $ | 180,577 | ||||
Contingent | 6,398 | 5,942 | 8,180 | |||||||
Total store rent | 215,721 | 207,419 | 188,757 | |||||||
Home office, distribution center, other | 5,609 | 5,400 | 4,859 | |||||||
Total rent expense | $ | 221,330 | $ | 212,819 | $ | 193,616 | ||||
As of January 31, 2015, the Company was committed to noncancelable leases with remaining terms from 1 to 15 years. A substantial portion of these commitments consist of store leases, generally with an initial term of 10 years. Store lease terms typically require additional payments covering real estate taxes, common area maintenance costs, and certain other landlord charges, which are excluded from the following table. | ||||||||||
Minimum rent commitments under noncancelable operating leases are as follows (in thousands): | ||||||||||
2015 | $ | 222,562 | ||||||||
2016 | 176,521 | |||||||||
2017 | 161,606 | |||||||||
2018 | 148,011 | |||||||||
2019 | 132,948 | |||||||||
Thereafter | 566,285 | |||||||||
Total | $ | 1,407,933 | ||||||||
Lease_Financing_Obligations
Lease Financing Obligations | 12 Months Ended |
Jan. 31, 2015 | |
Lease Financing Obligations [Abstract] | |
Lease Financing Obligations | Lease Financing Obligations |
In certain lease arrangements, the Company is involved in the construction of the building. To the extent the Company is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease, it is deemed the owner of the project for accounting purposes. Therefore, the Company records an asset in property and equipment on the Consolidated Balance Sheets, including any capitalized interest costs, and related liabilities in accrued interest and lease financing obligations in other long-term liabilities on the Consolidated Balance Sheets, for the replacement cost of the Company's portion of the pre-existing building plus the amount of construction costs incurred by the landlord as of the balance sheet date. Once construction is complete, the Company considers the requirements for sale-leaseback treatment, including the transfer of all risks of ownership back to the landlord, and whether the Company has any continuing involvement in the leased property. If the arrangement does not qualify for sale-leaseback treatment, the building assets subject to these obligations remain on the Company's Consolidated Balance Sheets at their historical cost, and such assets are depreciated over their remaining useful lives. The replacement cost of the pre-existing building, as well as the costs of construction paid by the landlord, are recorded as lease financing obligations, and a portion of the lease payments are applied as payments of principal and interest. The interest rate selected for lease financing obligations is evaluated at lease inception based on the Company's incremental borrowing rate. At the end of the initial lease term, should the Company decide not to renew the lease, the Company would reverse equal amounts of the remaining net book value of the assets and the corresponding lease financing obligations. | |
The initial lease terms related to these lease arrangements are expected to expire in 2023 and 2030. As of January 31, 2015 and February 1, 2014 there was $71.0 million and $63.2 million, respectively, of landlord funded construction, the replacement cost of pre-existing property, and capitalized interest in Property and Equipment on the Consolidated Balance Sheets. There was also $70.9 million and $63.0 million of lease financing obligations as of January 31, 2015 and February 1, 2014, respectively, in Other Long Term Liabilities on the Consolidated Balance Sheets. The transactions involving the initial recording of these assets and liabilities are classified as non-cash items for purposes of the Consolidated Statements of Cash Flows. | |
Rent expense relating to the land is recognized on a straight-line basis once construction begins. Once the store opens, the Company will not report rent expense for the portion of the rent payment determined to be related to the lease obligations which are owned for accounting purposes. Rather, this portion of rent payment under the lease is recognized as a reduction of the lease financing obligations and interest expense. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Intangible Assets [Abstract] | ||||||||||||
Intangible Assets | Intangible Assets | |||||||||||
The following table provides the significant components of intangible assets: | ||||||||||||
January 31, 2015 | ||||||||||||
Cost | Accumulated | Ending Net Balance | ||||||||||
Amortization | ||||||||||||
(in thousands) | ||||||||||||
Tradenames | $ | 196,144 | $ | — | $ | 196,144 | ||||||
Internet domain names/trademarks | 1,418 | — | 1,418 | |||||||||
Net favorable lease obligations/other | 21,175 | 19,906 | 1,269 | |||||||||
$ | 218,737 | $ | 19,906 | $ | 198,831 | |||||||
February 1, 2014 | ||||||||||||
Cost | Accumulated | Ending Net Balance | ||||||||||
Amortization | ||||||||||||
(in thousands) | ||||||||||||
Tradenames | $ | 196,144 | $ | — | $ | 196,144 | ||||||
Internet domain names/trademarks | 1,668 | — | 1,668 | |||||||||
Net favorable lease obligations/other | 20,175 | 19,106 | 1,069 | |||||||||
$ | 217,987 | $ | 19,106 | $ | 198,881 | |||||||
The Company's tradenames, Internet domain names, and trademarks have indefinite lives. Net favorable lease obligations and other intangibles are amortized over a period between five and ten years and are included in other assets on the Consolidated Balance Sheets. The net favorable lease assets were fully amortized as of January 31, 2015. Amortization expense totaled $0.8 million, $1.3 million, and $1.5 million during 2014, 2013, and 2012, respectively. | ||||||||||||
Future amortization expense is expected to approximate the following (in thousands): | ||||||||||||
2015 | $ | 149 | ||||||||||
2016 | 149 | |||||||||||
2017 | 149 | |||||||||||
2018 | 149 | |||||||||||
2019 | 149 | |||||||||||
Thereafter | 524 | |||||||||||
Total | $ | 1,269 | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The provision for income taxes consists of the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | (in thousands) | |||||||||||
U.S. federal | $ | 29,884 | $ | 64,071 | $ | 74,306 | ||||||
U.S. state and local | 6,491 | 12,815 | 14,296 | |||||||||
Foreign | 565 | 548 | 165 | |||||||||
Total | 36,940 | 77,434 | 88,767 | |||||||||
Deferred: | ||||||||||||
U.S. federal | 6,884 | 757 | 3,346 | |||||||||
U.S. state and local | (558 | ) | (1,541 | ) | 615 | |||||||
Foreign | (35 | ) | (23 | ) | (24 | ) | ||||||
Total | 6,291 | (807 | ) | 3,937 | ||||||||
Provision for income taxes | $ | 43,231 | $ | 76,627 | $ | 92,704 | ||||||
The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal income tax effect | 4.1 | % | 3.8 | % | 4.3 | % | ||||||
Other items, net | (0.3 | )% | 0.9 | % | 0.7 | % | ||||||
Effective tax rate | 38.8 | % | 39.7 | % | 40 | % | ||||||
The following table provides the effect of temporary differences that created deferred income taxes as of January 31, 2015 and February 1, 2014. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carry-forwards at the end of the respective periods. | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses and deferred compensation | $ | 30,667 | $ | 27,554 | ||||||||
Rent | 25,605 | 21,854 | ||||||||||
Lease financing obligations | 29,072 | 5,972 | ||||||||||
Other | 2,104 | 1,515 | ||||||||||
Tax credits/carryforwards | — | 214 | ||||||||||
Valuation allowance | (1,668 | ) | (1,366 | ) | ||||||||
Total deferred tax assets | 85,780 | 55,743 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Inventory | 5,915 | 2,532 | ||||||||||
Prepaid expenses | 3,762 | 4,827 | ||||||||||
Intangible assets | 13,844 | 9,530 | ||||||||||
Property and equipment | 51,732 | 22,036 | ||||||||||
Total deferred tax liabilities | 75,253 | 38,925 | ||||||||||
Net deferred tax asset | $ | 10,527 | $ | 16,818 | ||||||||
The net deferred tax asset at February 1, 2014 shown above excludes a foreign deferred tax asset of $0.4 million and a corresponding valuation allowance of $0.4 million attributable to other comprehensive income for the period ended February 1, 2014. | ||||||||||||
The net increase in the total valuation allowance attributable to foreign operations for the years ended January 31, 2015, and February 1, 2014 was $0.3 million and $0.4 million, respectively. The foreign capital loss carryforward as of January 31, 2015 and February 1, 2014 was $0.4 million. The Company has established a full valuation allowance related to the foreign capital loss carryforward. The foreign capital loss carryforward period is indefinite. | ||||||||||||
The foreign tax credit carryforward as of February 1, 2014 was $0.2 million and was offset by a full valuation allowance. As of January 31, 2015, the Company fully utilized its foreign tax credit carryforward. | ||||||||||||
No other valuation allowances have been provided for deferred tax assets because management believes that it is more likely than not that the full amount of the net deferred tax assets will be realized in the future. | ||||||||||||
Current net deferred tax assets are included in other current assets within the Consolidated Balance Sheets and non-current net deferred tax assets are separately identified. Current net deferred tax liabilities are included in accrued expenses within the Consolidated Balance Sheets and non-current net deferred tax liabilities are included in other long-term liabilities. The following table summarizes net deferred tax assets: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
(in thousands) | ||||||||||||
Current deferred tax liability | $ | (1,844 | ) | $ | (740 | ) | ||||||
Non-current deferred taxes | 12,371 | 17,558 | ||||||||||
Net deferred tax assets | $ | 10,527 | $ | 16,818 | ||||||||
Uncertain Tax Positions | ||||||||||||
The Company evaluates tax positions using a more likely than not recognition criterion. | ||||||||||||
A reconciliation of the beginning to ending unrecognized tax benefits are as follows: | ||||||||||||
January 31, 2015 | February 1, 2014 | 28-Jan-12 | ||||||||||
(in thousands) | ||||||||||||
Unrecognized tax benefits, beginning of year | $ | 4,091 | $ | 2,313 | $ | 1,416 | ||||||
Gross addition for tax positions of the current year | 346 | 1,469 | 852 | |||||||||
Gross addition for tax positions of the prior year | 129 | 309 | 225 | |||||||||
Settlements | (2,137 | ) | — | (180 | ) | |||||||
Reduction for tax positions of prior years | (628 | ) | — | — | ||||||||
Lapse of statute of limitations | (150 | ) | — | — | ||||||||
Unrecognized tax benefits, end of year | $ | 1,651 | $ | 4,091 | $ | 2,313 | ||||||
The amount of the above unrecognized tax benefits as of January 31, 2015, February 1, 2014, and February 2, 2013 that would impact the Company's effective tax rate, if recognized, is $1.7 million, $4.1 million, and $2.3 million, respectively. | ||||||||||||
During the second quarter of 2014, the Internal Revenue Service (IRS) completed its examination of the Company’s 2012, 2011, and 2010 income tax returns. The Company released gross uncertain tax positions of $2.1 million and the related accrued interest of $0.1 million as a result of the conclusion of this examination. | ||||||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. The total amount of net interest in tax expense related to interest and penalties included in the consolidated statements of comprehensive income for 2014, 2013, and 2012 was immaterial. As of January 31, 2015 and February 1, 2014, the Company had accrued interest of $0.1 million and $0.2 million, respectively. | ||||||||||||
The Company is subject to examination by the IRS for years subsequent to 2012. The Company is also generally subject to various U.S. state and local income tax and non-U.S. tax jurisdictions for the years subsequent to 2010. | ||||||||||||
Over the next twelve months, it is reasonably possible that the resolution of state tax examinations could reduce the Company's unrecognized tax benefits by $0.1 million. Final settlement of these audits may result in payments that are more or less than this amount, but the Company does not anticipate the resolution of these matters will result in a material change to its consolidated financial position or results of operations. | ||||||||||||
The Company's Canadian subsidiary has an accumulated deficit, thus we have not provided for income taxes in the United States on undistributed earnings. |
Debt
Debt | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Borrowings outstanding consisted of the following: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
(in thousands) | ||||||||
8 3/4% Senior Notes | $ | 200,850 | $ | 200,850 | ||||
Debt discount on Senior Notes | (1,323 | ) | (1,680 | ) | ||||
Total long-term debt | $ | 199,527 | $ | 199,170 | ||||
Revolving Credit Facility | ||||||||
On July 29, 2011, Express Holding, a wholly-owned subsidiary, and its subsidiaries entered into an Amended and Restated $200.0 million secured Asset-Based Credit Facility ("Revolving Credit Facility"). As of January 31, 2015, there were no borrowings outstanding and approximately $197.5 million available under the Revolving Credit Facility. | ||||||||
The Revolving Credit Facility is scheduled to expire on July 29, 2016 and allows for up to $30.0 million of swing line advances and up to $45.0 million to be available in the form of letters of credit. Borrowings under the Revolving Credit Facility bear interest at a rate equal to either the rate appearing on Bloomberg L.P.'s Page BBAM1/(Official BBA USD Dollar Libor Fixings) (the “Eurodollar Rate”) plus an applicable margin rate or the highest of (1) the prime lending rate, (2) 0.50% per annum above the federal funds rate, and (3) 1% above the Eurodollar Rate, in each case plus an applicable margin rate. The applicable margin rate is determined based on excess availability as determined by reference to the borrowing base. The applicable margin for Eurodollar Rate-based advances is between 1.50% and 2.00% based on the borrowing base. The unused line fee payable under the Revolving Credit Facility is incurred at 0.375% per annum of the average daily unused revolving commitment during each quarter, payable quarterly in arrears on the first day of each May, August, November, and February. In the event that (1) an event of default has occurred or (2) excess availability plus eligible cash collateral is less than 12.5% of the borrowing base for 5 consecutive days, such unused line fees are payable on the first day of each month. | ||||||||
Interest payments under the Revolving Credit Facility are due quarterly on the first day of each May, August, November, and February for base rate-based advances, provided, however, in the event that (1) an event of default has occurred or (2) excess availability plus eligible cash collateral is less than 12.5% of the borrowing base for 5 consecutive days, interest payments are due on the first day of each month. Interest payments under the Revolving Credit Facility are due on the last day of the interest period for Eurodollar Rate-based advances for interest periods of 1, 2, and 3 months, and additionally every 3 months after the first day of the interest period for Eurodollar Rate-based advances for interest periods of greater than 3 months. | ||||||||
The Revolving Credit Facility requires Express Holding and its subsidiaries to maintain a fixed charge coverage ratio of at least 1.0:1.0 if excess availability plus eligible cash collateral is less than 10% of the borrowing base for 15 consecutive days. In addition, the Revolving Credit Facility contains customary covenants and restrictions on Express Holding and its subsidiaries' activities, including, but not limited to, limitations on the incurrence of additional indebtedness; liens, negative pledges, guarantees, investments, loans, asset sales, mergers, acquisitions, and prepayment of other debt; distributions, dividends, and the repurchase of capital stock; transactions with affiliates; and the ability to change the nature of its business or its fiscal year. All obligations under the Revolving Credit Facility are guaranteed by Express Holding and its domestic subsidiaries (that are not borrowers) and secured by a lien on substantially all of the assets of Express Holding and its domestic subsidiaries. | ||||||||
Senior Notes | ||||||||
On March 5, 2010, Express, LLC and Express Finance, wholly-owned subsidiaries of the Company, co-issued, in a private placement, $250.0 million of 8 3/4% Senior Notes due in 2018 at an offering price of 98.6% of the face value. | ||||||||
On March 1, 2015, the outstanding notes in the amount of $200.9 million were redeemed at 102.19% of the principal amount. | ||||||||
Fair Value of Debt | ||||||||
The fair value of the Senior Notes was estimated using a number of factors, such as recent trade activity, size, timing, and yields of comparable bonds and is, therefore, within Level 2 of the fair value hierarchy. As of January 31, 2015, the estimated fair value of the Senior Notes was $206.4 million. | ||||||||
Letters of Credit | ||||||||
The Company may enter into various trade letters of credit ("trade LCs") in favor of certain vendors to secure merchandise. These trade LCs are issued for a defined period of time, for specific shipments, and generally expire 3 weeks after the merchandise shipment date. As of January 31, 2015 and February 1, 2014, there were no outstanding trade LCs. Additionally, the Company enters into stand-by letters of credit ("stand-by LCs") on an as-need basis to secure merchandise and fund other general and administrative costs. As of January 31, 2015 and February 1, 2014, outstanding stand-by LCs totaled $2.5 million and $2.0 million, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity |
Share Repurchase Programs | |
On May 28, 2014, the Company's Board of Directors (the "Board") authorized the repurchase of up to $100.0 million of common stock (the "2014 Repurchase Program"). The 2014 Repurchase Program will be funded using available cash. No purchases were made under the 2014 Repurchase Program. | |
On May 24, 2012, the Board authorized the Company to repurchase up to $100.0 million of the Company's common stock from time to time in open market or privately negotiated transactions (the "2012 Repurchase Program"). The 2012 Repurchase Program was completed during the third quarter of 2013 following the repurchase of 5.6 million shares of the Company's common stock for approximately $100.0 million. During 2013, the Company repurchased 1.6 million shares of its common stock for a total of $35.1 million, including commissions. During 2012, the Company repurchased 4.0 million shares of its common stock for a total of $65.1 million, including commissions. | |
Stockholder Rights Plan | |
On June 12, 2014, the Board adopted a Stockholder Rights Plan (the “Rights Plan”). Under the Rights Plan, one right was distributed for each share of common stock outstanding at the close of business on June 23, 2014 and one right will be issued for each new share of common stock issued thereafter. If any person or group acquires 10% or more of the Company’s outstanding common stock without the approval of the Board, there would be a triggering event entitling a registered holder to purchase from the Company one one-hundredth of a share of Participating Preferred Stock, par value $0.01 per share, for $70.00, subject to adjustment. Existing 10% or greater stockholders are grandfathered to the extent of their June 12, 2014 ownership levels. The Rights Plan will expire one year after it was adopted, on June 12, 2015, unless it is ratified by a majority vote of the Company’s stockholders on or prior to such date (in which case the Rights Plan will expire on June 12, 2017) or unless earlier redeemed or terminated by the Company, as provided in the Rights Plan. The rights have no voting or dividend privileges, and, unless and until they become exercisable, have no dilutive effect on the earnings of the Company. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||||
The Company records the fair value of share-based payments to employees in the Consolidated Statements of Income and Comprehensive Income as compensation expense, net of forfeitures, over the requisite service period. | |||||||||||||
Share-based Compensation Plans | |||||||||||||
In 2010, the Board approved, and the Company implemented, the Express, Inc. 2010 Incentive Compensation Plan (as amended, the "2010 Plan"). The 2010 Plan authorizes the Compensation Committee (the "Committee") of the Board and its designees to offer eligible employees and directors cash and stock-based incentives as deemed appropriate in order to attract, retain, and reward such individuals. Effective April 3, 2012, the Board amended the 2010 Plan to, among other things, reduce the number of shares available for issuance under the 2010 Plan. As of January 31, 2015, 15.2 million shares were authorized to be granted under the 2010 Plan and 8.2 million remained available for future issuance. | |||||||||||||
The following summarizes our share-based compensation expense: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Stock options | $ | 7,556 | $ | 8,883 | $ | 8,123 | |||||||
Restricted stock units and restricted stock | 11,770 | 12,291 | 8,185 | ||||||||||
Total share-based compensation | $ | 19,326 | $ | 21,174 | $ | 16,308 | |||||||
The stock compensation related income tax benefit recognized by the Company in 2014, 2013, and 2012 was $3.9 million, $3.5 million, and $1.7 million, respectively. | |||||||||||||
Stock Options | |||||||||||||
During 2014, the Company granted stock options under the 2010 Plan. The fair value of the stock options is determined using the Black-Scholes-Merton option-pricing model as described later in this note. Stock options granted in 2014 under the 2010 Plan generally vest 25% per year over four years or upon reaching retirement eligibility as defined by the 2010 Plan. These options have a ten year contractual life. Options granted to the former Chief Executive Officer in prior years vest ratably over three years. The expense for stock options is recognized using the straight-line attribution method. | |||||||||||||
The Company's activity with respect to stock options during 2014 was as follows: | |||||||||||||
Number of | Grant Date | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||
Shares | Weighted Average | ||||||||||||
Exercise Price | |||||||||||||
(in thousands, except per share amounts and years) | |||||||||||||
Outstanding, February 1, 2014 | 3,234 | $ | 18.85 | ||||||||||
Granted | 388 | $ | 15.84 | ||||||||||
Exercised | — | $ | — | ||||||||||
Forfeited or expired | (152 | ) | $ | 20.1 | |||||||||
Outstanding, January 31, 2015 | 3,470 | $ | 18.45 | 6.7 | $ | 97 | |||||||
Expected to vest at January 31, 2015 | 1,132 | $ | 18.35 | 8.1 | $ | 47 | |||||||
Exercisable at January 31, 2015 | 2,310 | $ | 18.52 | 6.1 | $ | 49 | |||||||
The following provides additional information regarding the Company's stock options: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Weighted average grant date fair value of options granted | $8.49 | $9.50 | $12.75 | ||||||||||
Total intrinsic value of options exercised | $— | $1,001 | $270 | ||||||||||
As of January 31, 2015, there was approximately $5.3 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.5 years. | |||||||||||||
The Company uses the Black-Scholes-Merton option-pricing model to value stock options granted to employees and directors. The Company's determination of the fair value of stock options is affected by the Company's stock price as well as a number of subjective and complex assumptions. These assumptions include the risk-free interest rate, the Company's expected stock price volatility over the term of the awards, expected term of the award, and dividend yield. | |||||||||||||
The fair value of stock options was estimated at the grant date using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate (1) | 1.86 | % | 1.14 | % | 1.12 | % | |||||||
Price Volatility (2) | 53.7 | % | 55.9 | % | 55.9 | % | |||||||
Expected term (years) (3) | 6.25 | 6.2 | 6.17 | ||||||||||
Dividend yield (4) | — | — | — | ||||||||||
-1 | Represents the yield on U.S. Treasury securities with a term consistent with the expected term of the stock options. | ||||||||||||
-2 | For the first two years following the initial public offering of the Company's common stock, this was based on the historical volatility of selected comparable companies over a period consistent with the expected term of the stock options because the Company had a limited history of being publicly traded. Comparable companies were selected primarily based on industry, stage of life cycle, and size. Beginning with the second anniversary of the IPO in May 2012, the Company began using its own volatility as an additional input in the determination of expected volatility. | ||||||||||||
-3 | Calculated utilizing the “simplified” methodology prescribed by SAB No. 107 due to the lack of historical exercise data necessary to provide a reasonable basis upon which to estimate the term. | ||||||||||||
-4 | The Company does not currently plan on paying regular dividends. | ||||||||||||
Restricted Stock Units and Restricted Stock | |||||||||||||
During 2014, the Company granted restricted stock units ("RSUs") under the 2010 Plan, including 0.5 million RSUs with performance conditions.The fair value of the RSUs is determined based on the Company's closing stock price on the day prior to the grant date in accordance with the 2010 Plan. The expense for RSUs without performance conditions is recognized using the straight-line attribution method. The expense for RSUs with performance conditions is recognized using the graded vesting method based on the expected achievement of the performance conditions. The RSUs with performance conditions are also subject to time-based vesting. One-half of these RSUs that are earned based on the achievement of performance criteria will vest on the second anniversary of the date of the grant and the remainder will vest on the third anniversary of the date of the grant. RSUs without performance conditions vest ratably over four years. | |||||||||||||
The Company's activity with respect to RSUs and restricted stock, including awards with performance conditions, for 2014 was as follows: | |||||||||||||
Number of | Grant Date | ||||||||||||
Shares | Weighted Average | ||||||||||||
Fair Value | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Unvested, February 1, 2014 | 1,487 | $ | 19.29 | ||||||||||
Granted* | 778 | $ | 15.68 | ||||||||||
Vested | (718 | ) | $ | 18.66 | |||||||||
Forfeited | (112 | ) | $ | 18.08 | |||||||||
Unvested, January 31, 2015 | 1,435 | $ | 17.75 | ||||||||||
*Number of awards granted includes approximately 0.5 million RSUs with two-year performance conditions. The amount granted reflects the current estimate against target; however, the number of performance based RSUs that are ultimately earned may vary from 0% - 125% of target depending on the achievement of predefined operating targets. | |||||||||||||
The total fair value of RSUs and restricted stock that vested was $13.4 million, $8.5 million, and $3.2 million, during 2014, 2013, and 2012, respectively. As of January 31, 2015, there was approximately $13.8 million of total unrecognized compensation expense related to unvested RSUs and restricted stock, which is expected to be recognized over a weighted-average period of approximately 1.7 years. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings Per Share | ||||||||
The following table provides a reconciliation between basic and diluted weighted-average shares used to calculate basic and diluted earnings per share: | |||||||||
2014 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Weighted-average shares - basic | 84,144 | 84,466 | 86,852 | ||||||
Dilutive effect of stock options, restricted stock units, and restricted stock | 410 | 602 | 354 | ||||||
Weighted-average shares - diluted | 84,554 | 85,068 | 87,206 | ||||||
Equity awards representing 4.2 million, 2.0 million, and 3.1 million shares of common stock were excluded from the computation of diluted earnings per share for 2014, 2013, and 2012, respectively, as the effects of the awards would have been anti-dilutive. | |||||||||
Additionally, for 2014, there were 0.5 million shares excluded from the computation of diluted weighted average shares because the number of shares that will ultimately be issued is contingent on the Company's performance compared to pre-established performance goals which have not been achieved as of January 31, 2015. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Retirement Benefits [Abstract] | ||||||||
Retirement Benefits | Retirement Benefits | |||||||
The employees of the Company, if eligible, participate in a qualified defined contribution retirement plan (the “Qualified Plan”) and a non-qualified supplemental retirement plan (the “Non-Qualified Plan”) sponsored by the Company. | ||||||||
Participation in the Company's Qualified Plan is available to employees who meet certain age and service requirements. The Qualified Plan permits employees to elect contributions up to the maximum limits allowable under the Internal Revenue Code ("IRC"). The Company matches employee contributions according to a pre-determined formula. Prior to 2014, the Company contributed additional discretionary amounts based on a percentage of the employees' eligible annual compensation and years of service. This discretionary contribution was discontinued effective for the 2014 plan year. Employee contributions and Company matching contributions vest immediately. Additional discretionary Company contributions and the related investment earnings are subject to vesting based on years of service. | ||||||||
Total expense recognized related to the Qualified Plan employer match was $3.1 million, $3.1 million, and $2.7 million in 2014, 2013, and 2012, respectively. In addition, the Company recognized expense of $4.8 million and $5.4 million, related to discretionary contributions to the Qualified Plan, in 2013 and 2012, respectively. | ||||||||
Participation in the Non-Qualified Plan is made available to employees who meet certain age, service, job level, and compensation requirements. The Non-Qualified Plan is an unfunded plan which provides benefits beyond the IRC limits for qualified defined contribution plans. The plan permits employees to elect contributions up to a maximum percentage of eligible compensation. The Company matches employee contributions according to a pre-determined formula. The Non-Qualified Plan also previously credited additional amounts based on a percentage of the employees' eligible compensation and years of service, but this portion of the plan was discontinued effective for the 2014 plan year. In addition, the Non-Qualified Plan permits employees to defer additional compensation up to a maximum amount. The Company does not match the contributions for additional deferred compensation. Employees' accounts are credited with interest using a rate determined annually by the Retirement Plan Committee based on a methodology consistent with historical practices. Employee contributions and the related interest vest immediately. Company contributions and the related interest are subject to vesting based on years of service. Employees may elect an in-service distribution for the additional deferred compensation component only. Employees are not permitted to take a withdrawal from any other portion of the Non-Qualified Plan while actively employed with the Company. The remaining vested portion of employees' accounts in the Non-Qualified Plan will be distributed upon termination of employment in either a lump sum or in equal annual installments over a specified period of up to 10 years. Total expense recognized related to the Non-Qualified Plan was $1.5 million, $2.6 million, and $3.5 million in 2014, 2013, and 2012, respectively. | ||||||||
The Company elected to account for this cash balance plan based on the participant account balances, excluding actuarial considerations, as permitted by the applicable authoritative guidance. | ||||||||
The annual activity for the Company's Non-Qualified Plan, was as follows: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
(in thousands) | ||||||||
Balance, beginning of period | $ | 25,753 | $ | 24,089 | ||||
Contributions: | ||||||||
Employee | 1,273 | 1,460 | ||||||
Company | 836 | 1,758 | ||||||
Interest | 1,387 | 1,307 | ||||||
Distributions | (1,904 | ) | (2,861 | ) | ||||
Forfeitures | (89 | ) | — | |||||
Balance, end of period | $ | 27,256 | $ | 25,753 | ||||
In addition, as of February 1, 2014, the Company accrued $0.8 million of contributions related to 2013 that were credited to employee accounts in 2014. These amounts along with the above-mentioned amounts of $27.3 million and $25.8 million for the period ended January 31, 2015 and February 1, 2014, total $27.3 million and $26.6 million, respectively, and are included in other long-term liabilities on the Consolidated Balance Sheets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
During 2013 and 2014, the Company received letters from two individuals claiming that the Company unlawfully collected their zip codes in connection with a retail purchase made at a Massachusetts Express store and thereafter used that information to send them unwanted marketing materials. These letters indicate that the individuals may file suit on behalf of a class of customers whose zip codes were collected and recorded at Company stores in Massachusetts in connection with credit card purchases, and claims that the Company used the collected zip code data to obtain customers’ addresses for purposes of mailing them unwanted advertising material. These letters further seek monetary damages pursuant to a claim under Chapter 93A of the General Laws of Massachusetts. In the first quarter of 2014, after providing the claimants with information about the Company's collection practices, the Company received notice that one of the claimants will not pursue the claims previously alleged against the Company. The other claimant has not had any further communications with the Company and has not filed a claim against the Company. The Company believes the allegations in the letters are without merit and intends to vigorously defend itself against any claims that are filed in court. Due to the uncertainties of litigation, it is reasonably possible that the Company may incur a loss related to these claims. However, the amount of such loss, if any, cannot be estimated as of the date these financial statements are issued. | |
From time to time the Company is subject to other various claims and contingencies arising out of the normal course of business. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company's results of operations, financial condition, or cash flows. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||
Summarized unaudited quarterly financial results for 2014 and 2013 follows: | |||||||||||||||||
2014 Quarter | First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net sales | $ | 460,652 | $ | 481,420 | $ | 497,608 | $ | 725,801 | |||||||||
Gross profit | $ | 137,373 | $ | 136,025 | $ | 157,558 | $ | 229,998 | |||||||||
Net income | $ | 5,083 | $ | 6,867 | $ | 14,585 | $ | 41,790 | |||||||||
Earnings per basic share | $ | 0.06 | $ | 0.08 | $ | 0.17 | $ | 0.5 | |||||||||
Earnings per diluted share | $ | 0.06 | $ | 0.08 | $ | 0.17 | $ | 0.49 | |||||||||
2013 Quarter | First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net sales | $ | 509,362 | $ | 490,075 | $ | 503,808 | $ | 715,880 | |||||||||
Gross profit | $ | 170,777 | $ | 152,547 | $ | 165,265 | $ | 229,118 | |||||||||
Net income | $ | 32,437 | $ | 16,909 | $ | 19,267 | $ | 47,926 | |||||||||
Earnings per basic share | $ | 0.38 | $ | 0.2 | $ | 0.23 | $ | 0.57 | |||||||||
Earnings per diluted share | $ | 0.38 | $ | 0.2 | $ | 0.23 | $ | 0.57 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Jan. 31, 2015 | ||
Summary of Significant Accounting Policies [Abstract] | ||
Use of Estimates in the Preparation of Financial Statements, Policy | Use of Estimates in the Preparation of Financial Statements | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements. Actual results may differ from those estimates. The Company revises its estimates and assumptions as new information becomes available. | ||
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents | |
Cash and cash equivalents include investments in U.S. treasury money market funds, payments due from banks for third-party credit and debit card transactions for up to 5 days of sales, cash on hand, and deposits with financial institutions. | ||
Fair Value Measurements, Policy | Fair Value Measurements | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. | ||
Level 1- Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||
Level 2- Valuation is based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||
Level 3- Valuation is based upon other unobservable inputs that are significant to the fair value measurement. | ||
Receivables, Net, Policy | Receivables, Net | |
Receivables, net consist primarily of receivables from our franchisees and third-party resellers of our gift cards, as well as other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability. The Company's allowance for doubtful accounts was not significant as of January 31, 2015 or February 1, 2014. | ||
Inventories, Policy | Inventories | |
Inventories are principally valued at the lower of cost or market on a weighted-average cost basis. The Company writes down inventory, the impact of which is reflected in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount the Company expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. The lower of cost or market adjustment to inventory as of January 31, 2015 and February 1, 2014 was $11.4 million and $11.5 million, respectively. | ||
The Company also records an inventory shrink reserve calculated as a percentage of cost of goods sold for estimated merchandise inventory losses for the period between the last physical inventory count and the balance sheet date. This estimate is based on management's analysis of historical results. | ||
Advertising, Policy | Advertising | |
Advertising production costs are expensed at the time the promotion first appears in media, stores, or on the website, except for direct response advertising costs that relate primarily to the production and distribution of the Company's catalogs. Direct response advertising costs are amortized over the expected future revenue stream, which is typically 1 to 3 months from the date materials are mailed. Total advertising expense totaled $104.6 million, $85.9 million, and $85.8 million in 2014, 2013, and 2012, respectively. Advertising costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. | ||
Private Label Credit Card, Policy | Private Label Credit Card | |
The Company has an agreement with a third party to provide customers with private label credit cards (the “Card Agreement”). Each private label credit card bears the logo of the Express brand and can only be used at the Company's retail store locations and website. A third-party financing company is the sole owner of the accounts issued under the private label credit card program and absorbs the losses associated with non-payment by the private label card holders and a portion of any fraudulent usage of the accounts. Pursuant to the Card Agreement, the Company receives reimbursement funds from the third-party financing company for expenses the Company incurs based on usage of the private label credit cards. These reimbursement funds are used by the Company to fund marketing programs associated with the private label credit card and are recognized when the amounts are fixed or determinable and collectability is reasonably assured, which is generally at the time the private label credit cards are used or specified transactions occur. The funds received related to these private label credit cards are classified in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. | ||
Loyalty Program, Policy | Loyalty Program | |
The Company maintains a customer loyalty program (“Loyalty Program”) in which customers earn points towards rewards for qualifying purchases and other marketing programs. The Loyalty Program was previously restricted to holders of the Company's private label credit cards. However, beginning in 2011, a tender agnostic program was piloted that opened the Loyalty Program to non-private label credit card holders. The Company rolled this program out in the United States in the first quarter of 2012. Upon reaching specified point values, customers are issued a reward, which they may redeem for purchases at the Company's U.S. stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company accrues for the anticipated costs related to redemptions of the certificates as points are earned. To calculate this expense, the Company estimates margin rates and makes assumptions related to card holder redemption rates, which are both based on historical experience. This expense is included within cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. The loyalty liability is included in accrued expenses on the Consolidated Balance Sheets. | ||
Property and Equipment, Net, Policy | Property and Equipment, Net | |
Property and equipment are stated at cost. Depreciation of property and equipment is computed on a straight-line basis, using the following useful lives: | ||
Category | Depreciable Life | |
Software, including software developed for internal use | 3 - 7 years | |
Store related assets and other property and equipment | 3 - 10 years | |
Furniture, fixtures and equipment | 5 - 7 years | |
Leasehold improvements | Shorter of lease term or useful life of the asset, typically no longer than 15 years | |
Building improvements | 6 - 30 years | |
When a decision is made to dispose of property and equipment prior to the end of its previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in other operating expense (income), net, in the Consolidated Statements of Income and Comprehensive Income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. | ||
Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The reviews are conducted at the store level, the lowest identifiable level of cash flow. The impairment test requires the Company to estimate the fair value of the assets and compare this to their carrying value. If the fair value of the assets are less than the carrying value, then an impairment charge is recognized and the non-financial assets are recorded at fair value. The Company estimates the fair value using a discounted cash flow model. Factors used in the evaluation include, but are not limited to, management's plans for future operations, recent operating results, and projected cash flows. In 2014, as a result of decreased performance in certain stores, the Company recognized impairment charges of $10.5 million related to 14 stores. The impairment charges related to store leasehold improvements in 2013 and 2012 were minimal. Impairment charges are recorded in cost of goods sold, buying, and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. | ||
Intangible Assets, Policy | Intangible Assets | |
The Company has intangible assets, which consist primarily of the Express and related tradenames and its Internet domain names. Intangible assets with indefinite lives are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present. The impairment review is performed by assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. The consideration of indefinite lived intangible assets for impairment requires judgments surrounding future operating performance, economic conditions, and business plans, among other factors. | ||
Intangible assets with finite lives are amortized on a basis reflecting when the economic benefits of the assets are consumed or otherwise used up over their respective estimated useful lives. Intangible assets with finite lives are reviewed for impairment when events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. | ||
The Company did not incur any impairment charges on intangible assets in 2014, 2013, or 2012. | ||
Lease and Leasehold Improvements, Policy | Leases and Leasehold Improvements | |
The Company has leases that contain pre-determined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The rent expense is recognized on a straight-line basis commencing upon possession date. The Company records the difference between the recognized rent expense and amounts payable under the leases as deferred lease credits. The Company also has leases that contain contingent rent provisions, such as overage rent. For these leases, the Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets and the corresponding rent expense in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income when specified financial levels have been achieved or when management determines that achieving the specified financial levels during the year is probable. | ||
The Company receives allowances for leasehold improvements from landlords related to its retail stores. These allowances are generally comprised of cash amounts received from landlords as part of negotiated lease terms. The Company records a receivable and a landlord allowance upon execution of the corresponding lease. The landlord allowance is recorded as deferred lease credits on the Consolidated Balance Sheets. The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease, including the pre-opening build-out period. The receivable is reduced as allowance amounts are received from landlords. | ||
The Company has leasehold improvements which are depreciated over the shorter of the initial lease term, including renewal periods if reasonably assured, or their estimated useful lives | ||
Debt Issuance Costs and Discount, Policy | Debt Issuance Costs and Discount | |
Fees incurred in connection with the Company's borrowings, referred to as debt issuance costs, are capitalized and included in other assets on the Consolidated Balance Sheets. Debt discounts are reflected as a reduction of debt on the Consolidated Balance Sheets. Debt issuance costs and debt discounts are amortized to interest expense over the term of the respective debt agreements. | ||
Income Taxes, Policy | Income Taxes | |
The Company accounts for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company's assets and liabilities. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. | ||
Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. | ||
A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. | ||
The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company's judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available. | ||
Interest and penalties related to unrecognized tax benefits are recognized within income tax expense in the Consolidated Statements of Income and Comprehensive Income. Accrued interest and penalties are included within accrued expenses on the Consolidated Balance Sheets. | ||
The income tax liability was $16.4 million and $19.2 million as of January 31, 2015 and February 1, 2014, respectively, and was included in accrued liabilities on the Consolidated Balance Sheets. | ||
The Company may be subject to periodic audits by the Internal Revenue Service ("IRS") and other taxing authorities. These audits may challenge certain of the Company's tax positions, such as the timing and amount of deductions and allocation of taxable income to various jurisdictions. | ||
Self Insurance, Policy | Self Insurance | |
The Company is generally self-insured in the United States for medical, workers' compensation, and general liability benefits up to certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self insurance is included in accrued expenses on the Consolidated Balance Sheets. | ||
Foreign Currency Translation, Policy | Foreign Currency Translation | |
The Canadian dollar is the functional currency for the Company's Canadian business. Assets and liabilities denominated in foreign currencies were translated into U.S. dollars (the reporting currency) at the exchange rate prevailing at the applicable balance sheet date. Revenues and expenses denominated in foreign currencies were translated into U.S. dollars at the monthly average exchange rate for the period. Gains or losses resulting from foreign currency transactions are included in other expense (income), net whereas related translation adjustments are reported as an element of other comprehensive income, both of which are included in the Consolidated Statements of Income and Comprehensive Income. The Company may, in certain situations, designate certain foreign currency denominated, long-term intercompany financing transactions as being of a long-term investment nature and therefore record gains and losses on the transactions arising from changes in exchange rates as translation adjustments. | ||
Revenue Recognition, Policy | Revenue Recognition | |
The Company recognizes sales at the time the customer takes possession of the merchandise which, for e-commerce revenues, requires an estimate of shipments that have not yet been received by the customer. The estimate of these shipments is based on shipping terms and historical delivery times. Amounts related to shipping and handling revenues billed to customers in an e-commerce sale transaction are recorded in net sales, and the related shipping and handling costs are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. The Company's shipping and handling revenues were $11.3 million, $14.5 million, and $17.4 million in 2014, 2013, and 2012, respectively. Associate discounts are classified as a reduction of net sales. Net sales exclude sales tax collected from customers and remitted to governmental authorities. | ||
The Company also sells merchandise to multiple franchisees pursuant to different franchise agreements. Revenues may consist of sales of product and/or royalties. Revenues from products sold to franchisees are recorded at the time title transfers to the franchisees. Royalty revenue is based upon a percentage of the franchisee’s net sales to third parties and is earned when such sales to third parties occur. | ||
The Company provides a reserve for projected merchandise returns based on prior experience. Merchandise returns are often resalable merchandise and are refunded by issuing the same payment tender as the original purchase. Merchandise exchanges of the same product and price, typically due to size or color preferences, are not considered merchandise returns. The sales returns reserve was $9.7 million and $11.0 million as of January 31, 2015 and February 1, 2014, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. | ||
The Company sells gift cards in its stores, on its e-commerce website, and through third parties. These gift cards do not expire or lose value over periods of inactivity. The Company accounts for gift cards by recognizing a liability at the time a gift card is sold. The gift card liability balance was $26.0 million and $25.2 million, as of January 31, 2015 and February 1, 2014, respectively, and is included in deferred revenue on the Consolidated Balance Sheets. The Company recognizes revenue from gift cards when they are redeemed by the customer. The Company also recognizes income on unredeemed gift cards, which is recognized proportionately using a time-based attribution method from issuance of the gift card to the time when it can be determined that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions, referred to as "gift card breakage". The gift card breakage rate is based on historical redemption patterns and totaled $2.7 million, $3.0 million, and $2.3 million in 2014, 2013, and 2012, respectively. Gift card breakage is included in net sales in the Consolidated Statements of Income and Comprehensive Income. | ||
Cost of Goods Sold, Buying and Occupancy Costs, Policy | Cost of Goods Sold, Buying and Occupancy Costs | |
Cost of goods sold, buying and occupancy costs, include merchandise costs, freight, inventory shrinkage, and other gross margin related expenses. Buying and occupancy expenses primarily include payroll, benefit costs, and other operating expenses for the buying departments (merchandising, design, manufacturing, and planning and allocation), distribution, fulfillment, rent, common area maintenance, real estate taxes, utilities, maintenance, and depreciation for stores. | ||
Selling, General and Administrative Expenses, Policy | Selling, General, and Administrative Expenses | |
Selling, general, and administrative expenses include all operating costs not included in cost of goods sold, buying and occupancy costs, with the exception of proceeds received from insurance claims and gain/loss on disposal of assets, which are included in other operating expense, net. These costs include payroll and other expenses related to operations at our corporate home office, store expenses other than occupancy, and marketing expenses, which include production, mailing, and print advertising costs. | ||
Other Operating Income, Net, Policy | Other Operating Income, Net | |
Other operating income, net primarily consists of gains/losses on disposal of assets and excess proceeds from the settlement of insurance claims. | ||
Other Expense (Income), Net, Policy | Other Expense (Income), Net | |
Other expense (income), net, primarily consists of foreign currency transaction gains/losses. | ||
Segment Reporting, Policy | Segment Reporting | |
The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The Company has determined that, together, its President and Chief Executive Officer and its Chief Operating Officer are the Chief Operating Decision Maker, and that there is one operating segment. Therefore, the Company reports results as a single segment, which includes the operation of its Express brick-and-mortar retail and outlet stores, e-commerce operations, and franchise operations. | ||
Share-based Compensation, Option and Incentive Plans, Policy | The Company uses the Black-Scholes-Merton option-pricing model to value stock options granted to employees and directors. The Company's determination of the fair value of stock options is affected by the Company's stock price as well as a number of subjective and complex assumptions. These assumptions include the risk-free interest rate, the Company's expected stock price volatility over the term of the awards, expected term of the award, and dividend yield. | |
During 2014, the Company granted restricted stock units ("RSUs") under the 2010 Plan, including 0.5 million RSUs with performance conditions.The fair value of the RSUs is determined based on the Company's closing stock price on the day prior to the grant date in accordance with the 2010 Plan. | ||
The Company records the fair value of share-based payments to employees in the Consolidated Statements of Income and Comprehensive Income as compensation expense, net of forfeitures, over the requisite service period. | ||
Share-based Compensation Plans | ||
In 2010, the Board approved, and the Company implemented, the Express, Inc. 2010 Incentive Compensation Plan (as amended, the "2010 Plan"). The 2010 Plan authorizes the Compensation Committee (the "Committee") of the Board and its designees to offer eligible employees and directors cash and stock-based incentives as deemed appropriate in order to attract, retain, and reward such individuals. Effective April 3, 2012, the Board amended the 2010 Plan to, among other things, reduce the number of shares available for issuance under the 2010 Plan | ||
Pension and Other Postretirement Plans, Policy | Retirement Benefits | |
The employees of the Company, if eligible, participate in a qualified defined contribution retirement plan (the “Qualified Plan”) and a non-qualified supplemental retirement plan (the “Non-Qualified Plan”) sponsored by the Company. | ||
Participation in the Company's Qualified Plan is available to employees who meet certain age and service requirements. The Qualified Plan permits employees to elect contributions up to the maximum limits allowable under the Internal Revenue Code ("IRC"). The Company matches employee contributions according to a pre-determined formula. Prior to 2014, the Company contributed additional discretionary amounts based on a percentage of the employees' eligible annual compensation and years of service. This discretionary contribution was discontinued effective for the 2014 plan year. Employee contributions and Company matching contributions vest immediately. Additional discretionary Company contributions and the related investment earnings are subject to vesting based on years of service. | ||
Total expense recognized related to the Qualified Plan employer match was $3.1 million, $3.1 million, and $2.7 million in 2014, 2013, and 2012, respectively. In addition, the Company recognized expense of $4.8 million and $5.4 million, related to discretionary contributions to the Qualified Plan, in 2013 and 2012, respectively. | ||
Participation in the Non-Qualified Plan is made available to employees who meet certain age, service, job level, and compensation requirements. The Non-Qualified Plan is an unfunded plan which provides benefits beyond the IRC limits for qualified defined contribution plans. The plan permits employees to elect contributions up to a maximum percentage of eligible compensation. The Company matches employee contributions according to a pre-determined formula. The Non-Qualified Plan also previously credited additional amounts based on a percentage of the employees' eligible compensation and years of service, but this portion of the plan was discontinued effective for the 2014 plan year. In addition, the Non-Qualified Plan permits employees to defer additional compensation up to a maximum amount. The Company does not match the contributions for additional deferred compensation. Employees' accounts are credited with interest using a rate determined annually by the Retirement Plan Committee based on a methodology consistent with historical practices. Employee contributions and the related interest vest immediately. Company contributions and the related interest are subject to vesting based on years of service. Employees may elect an in-service distribution for the additional deferred compensation component only. Employees are not permitted to take a withdrawal from any other portion of the Non-Qualified Plan while actively employed with the Company. The remaining vested portion of employees' accounts in the Non-Qualified Plan will be distributed upon termination of employment in either a lump sum or in equal annual installments over a specified period of up to 10 years. Total expense recognized related to the Non-Qualified Plan was $1.5 million, $2.6 million, and $3.5 million in 2014, 2013, and 2012, respectively. | ||
The Company elected to account for this cash balance plan based on the participant account balances, excluding actuarial considerations, as permitted by the applicable authoritative guidance. |
Summary_of_Significant_Account2
Summary of Significant Accountin Policies (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's financial assets measured at fair value on a recurring basis as of January 31, 2015 and February 1, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall. | |||||||||||
January 31, 2015 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(in thousands) | ||||||||||||
U.S. treasury securities money market funds | $ | 166,602 | $ | — | $ | — | ||||||
February 1, 2014 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
(in thousands) | ||||||||||||
U.S. treasury securities money market funds | $ | 290,361 | $ | — | $ | — | ||||||
Schedule of Depreciable Lives | Property and equipment are stated at cost. Depreciation of property and equipment is computed on a straight-line basis, using the following useful lives: | |||||||||||
Category | Depreciable Life | |||||||||||
Software, including software developed for internal use | 3 - 7 years | |||||||||||
Store related assets and other property and equipment | 3 - 10 years | |||||||||||
Furniture, fixtures and equipment | 5 - 7 years | |||||||||||
Leasehold improvements | Shorter of lease term or useful life of the asset, typically no longer than 15 years | |||||||||||
Building improvements | 6 - 30 years | |||||||||||
Schedule of Revenue from External Customers by Channel | The following is information regarding the Company's major product and sales channels: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Apparel | $ | 1,883,641 | $ | 1,922,868 | $ | 1,872,844 | ||||||
Accessories and other | 240,052 | 254,426 | 250,180 | |||||||||
Other revenue | 41,788 | 41,831 | 34,203 | |||||||||
Total net sales | $ | 2,165,481 | $ | 2,219,125 | $ | 2,157,227 | ||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Stores | $ | 1,769,478 | $ | 1,836,704 | $ | 1,851,527 | ||||||
E-commerce | 354,215 | 340,590 | 271,497 | |||||||||
Other revenue | 41,788 | 41,831 | 34,203 | |||||||||
Total net sales | $ | 2,165,481 | $ | 2,219,125 | $ | 2,157,227 | ||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property and Equipment [Abstract] | ||||||||
Property and Equipment, Net | Property and equipment, net, consisted of: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
(in thousands) | ||||||||
Building improvements | $ | 86,487 | $ | 13,955 | ||||
Furniture, fixtures and equipment, software | 341,272 | 315,462 | ||||||
Leasehold improvements | 371,462 | 344,369 | ||||||
Construction in process | 40,291 | 93,560 | ||||||
Other | 828 | 315 | ||||||
Total | 840,340 | 767,661 | ||||||
Less: accumulated depreciation | (432,733 | ) | (391,539 | ) | ||||
Property and equipment, net | $ | 407,607 | $ | 376,122 | ||||
Leased_Facilities_and_Commitme1
Leased Facilities and Commitments (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Leased Facilities and Commitments [Abstract] | ||||||||||
Schedule of Rent Expense | Rent expense is summarized as follows: | |||||||||
2014 | 2013 | 2012 | ||||||||
Store rent: | (in thousands) | |||||||||
Fixed minimum | $ | 209,323 | $ | 201,477 | $ | 180,577 | ||||
Contingent | 6,398 | 5,942 | 8,180 | |||||||
Total store rent | 215,721 | 207,419 | 188,757 | |||||||
Home office, distribution center, other | 5,609 | 5,400 | 4,859 | |||||||
Total rent expense | $ | 221,330 | $ | 212,819 | $ | 193,616 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rent commitments under noncancelable operating leases are as follows (in thousands): | |||||||||
2015 | $ | 222,562 | ||||||||
2016 | 176,521 | |||||||||
2017 | 161,606 | |||||||||
2018 | 148,011 | |||||||||
2019 | 132,948 | |||||||||
Thereafter | 566,285 | |||||||||
Total | $ | 1,407,933 | ||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Intangible Assets [Abstract] | ||||||||||||
Schedule of Intangible Assets | The following table provides the significant components of intangible assets: | |||||||||||
January 31, 2015 | ||||||||||||
Cost | Accumulated | Ending Net Balance | ||||||||||
Amortization | ||||||||||||
(in thousands) | ||||||||||||
Tradenames | $ | 196,144 | $ | — | $ | 196,144 | ||||||
Internet domain names/trademarks | 1,418 | — | 1,418 | |||||||||
Net favorable lease obligations/other | 21,175 | 19,906 | 1,269 | |||||||||
$ | 218,737 | $ | 19,906 | $ | 198,831 | |||||||
February 1, 2014 | ||||||||||||
Cost | Accumulated | Ending Net Balance | ||||||||||
Amortization | ||||||||||||
(in thousands) | ||||||||||||
Tradenames | $ | 196,144 | $ | — | $ | 196,144 | ||||||
Internet domain names/trademarks | 1,668 | — | 1,668 | |||||||||
Net favorable lease obligations/other | 20,175 | 19,106 | 1,069 | |||||||||
$ | 217,987 | $ | 19,106 | $ | 198,881 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense is expected to approximate the following (in thousands): | |||||||||||
2015 | $ | 149 | ||||||||||
2016 | 149 | |||||||||||
2017 | 149 | |||||||||||
2018 | 149 | |||||||||||
2019 | 149 | |||||||||||
Thereafter | 524 | |||||||||||
Total | $ | 1,269 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | (in thousands) | |||||||||||
U.S. federal | $ | 29,884 | $ | 64,071 | $ | 74,306 | ||||||
U.S. state and local | 6,491 | 12,815 | 14,296 | |||||||||
Foreign | 565 | 548 | 165 | |||||||||
Total | 36,940 | 77,434 | 88,767 | |||||||||
Deferred: | ||||||||||||
U.S. federal | 6,884 | 757 | 3,346 | |||||||||
U.S. state and local | (558 | ) | (1,541 | ) | 615 | |||||||
Foreign | (35 | ) | (23 | ) | (24 | ) | ||||||
Total | 6,291 | (807 | ) | 3,937 | ||||||||
Provision for income taxes | $ | 43,231 | $ | 76,627 | $ | 92,704 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal income tax effect | 4.1 | % | 3.8 | % | 4.3 | % | ||||||
Other items, net | (0.3 | )% | 0.9 | % | 0.7 | % | ||||||
Effective tax rate | 38.8 | % | 39.7 | % | 40 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carry-forwards at the end of the respective periods. | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses and deferred compensation | $ | 30,667 | $ | 27,554 | ||||||||
Rent | 25,605 | 21,854 | ||||||||||
Lease financing obligations | 29,072 | 5,972 | ||||||||||
Other | 2,104 | 1,515 | ||||||||||
Tax credits/carryforwards | — | 214 | ||||||||||
Valuation allowance | (1,668 | ) | (1,366 | ) | ||||||||
Total deferred tax assets | 85,780 | 55,743 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Inventory | 5,915 | 2,532 | ||||||||||
Prepaid expenses | 3,762 | 4,827 | ||||||||||
Intangible assets | 13,844 | 9,530 | ||||||||||
Property and equipment | 51,732 | 22,036 | ||||||||||
Total deferred tax liabilities | 75,253 | 38,925 | ||||||||||
Net deferred tax asset | $ | 10,527 | $ | 16,818 | ||||||||
Deferred Tax Assets, Net Classification | The following table summarizes net deferred tax assets: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
(in thousands) | ||||||||||||
Current deferred tax liability | $ | (1,844 | ) | $ | (740 | ) | ||||||
Non-current deferred taxes | 12,371 | 17,558 | ||||||||||
Net deferred tax assets | $ | 10,527 | $ | 16,818 | ||||||||
Unrecognized Tax Benefits Rollforward | A reconciliation of the beginning to ending unrecognized tax benefits are as follows: | |||||||||||
January 31, 2015 | February 1, 2014 | 28-Jan-12 | ||||||||||
(in thousands) | ||||||||||||
Unrecognized tax benefits, beginning of year | $ | 4,091 | $ | 2,313 | $ | 1,416 | ||||||
Gross addition for tax positions of the current year | 346 | 1,469 | 852 | |||||||||
Gross addition for tax positions of the prior year | 129 | 309 | 225 | |||||||||
Settlements | (2,137 | ) | — | (180 | ) | |||||||
Reduction for tax positions of prior years | (628 | ) | — | — | ||||||||
Lapse of statute of limitations | (150 | ) | — | — | ||||||||
Unrecognized tax benefits, end of year | $ | 1,651 | $ | 4,091 | $ | 2,313 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | Borrowings outstanding consisted of the following: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
(in thousands) | ||||||||
8 3/4% Senior Notes | $ | 200,850 | $ | 200,850 | ||||
Debt discount on Senior Notes | (1,323 | ) | (1,680 | ) | ||||
Total long-term debt | $ | 199,527 | $ | 199,170 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Shared-based Compensation Expense | The following summarizes our share-based compensation expense: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Stock options | $ | 7,556 | $ | 8,883 | $ | 8,123 | |||||||
Restricted stock units and restricted stock | 11,770 | 12,291 | 8,185 | ||||||||||
Total share-based compensation | $ | 19,326 | $ | 21,174 | $ | 16,308 | |||||||
Schedule of Share-based Compensation, Activity | The Company's activity with respect to stock options during 2014 was as follows: | ||||||||||||
Number of | Grant Date | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||
Shares | Weighted Average | ||||||||||||
Exercise Price | |||||||||||||
(in thousands, except per share amounts and years) | |||||||||||||
Outstanding, February 1, 2014 | 3,234 | $ | 18.85 | ||||||||||
Granted | 388 | $ | 15.84 | ||||||||||
Exercised | — | $ | — | ||||||||||
Forfeited or expired | (152 | ) | $ | 20.1 | |||||||||
Outstanding, January 31, 2015 | 3,470 | $ | 18.45 | 6.7 | $ | 97 | |||||||
Expected to vest at January 31, 2015 | 1,132 | $ | 18.35 | 8.1 | $ | 47 | |||||||
Exercisable at January 31, 2015 | 2,310 | $ | 18.52 | 6.1 | $ | 49 | |||||||
Supplemental Options Data | The following provides additional information regarding the Company's stock options: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Weighted average grant date fair value of options granted | $8.49 | $9.50 | $12.75 | ||||||||||
Total intrinsic value of options exercised | $— | $1,001 | $270 | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options was estimated at the grant date using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate (1) | 1.86 | % | 1.14 | % | 1.12 | % | |||||||
Price Volatility (2) | 53.7 | % | 55.9 | % | 55.9 | % | |||||||
Expected term (years) (3) | 6.25 | 6.2 | 6.17 | ||||||||||
Dividend yield (4) | — | — | — | ||||||||||
-1 | Represents the yield on U.S. Treasury securities with a term consistent with the expected term of the stock options. | ||||||||||||
-2 | For the first two years following the initial public offering of the Company's common stock, this was based on the historical volatility of selected comparable companies over a period consistent with the expected term of the stock options because the Company had a limited history of being publicly traded. Comparable companies were selected primarily based on industry, stage of life cycle, and size. Beginning with the second anniversary of the IPO in May 2012, the Company began using its own volatility as an additional input in the determination of expected volatility. | ||||||||||||
-3 | Calculated utilizing the “simplified” methodology prescribed by SAB No. 107 due to the lack of historical exercise data necessary to provide a reasonable basis upon which to estimate the term. | ||||||||||||
-4 | The Company does not currently plan on paying regular dividends. | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The Company's activity with respect to RSUs and restricted stock, including awards with performance conditions, for 2014 was as follows: | ||||||||||||
Number of | Grant Date | ||||||||||||
Shares | Weighted Average | ||||||||||||
Fair Value | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Unvested, February 1, 2014 | 1,487 | $ | 19.29 | ||||||||||
Granted* | 778 | $ | 15.68 | ||||||||||
Vested | (718 | ) | $ | 18.66 | |||||||||
Forfeited | (112 | ) | $ | 18.08 | |||||||||
Unvested, January 31, 2015 | 1,435 | $ | 17.75 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table provides a reconciliation between basic and diluted weighted-average shares used to calculate basic and diluted earnings per share: | ||||||||
2014 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Weighted-average shares - basic | 84,144 | 84,466 | 86,852 | ||||||
Dilutive effect of stock options, restricted stock units, and restricted stock | 410 | 602 | 354 | ||||||
Weighted-average shares - diluted | 84,554 | 85,068 | 87,206 | ||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Retirement Benefits [Abstract] | ||||||||
Schedule of Changes in Cash Balance Liability | The annual activity for the Company's Non-Qualified Plan, was as follows: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
(in thousands) | ||||||||
Balance, beginning of period | $ | 25,753 | $ | 24,089 | ||||
Contributions: | ||||||||
Employee | 1,273 | 1,460 | ||||||
Company | 836 | 1,758 | ||||||
Interest | 1,387 | 1,307 | ||||||
Distributions | (1,904 | ) | (2,861 | ) | ||||
Forfeitures | (89 | ) | — | |||||
Balance, end of period | $ | 27,256 | $ | 25,753 | ||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | Summarized unaudited quarterly financial results for 2014 and 2013 follows: | ||||||||||||||||
2014 Quarter | First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net sales | $ | 460,652 | $ | 481,420 | $ | 497,608 | $ | 725,801 | |||||||||
Gross profit | $ | 137,373 | $ | 136,025 | $ | 157,558 | $ | 229,998 | |||||||||
Net income | $ | 5,083 | $ | 6,867 | $ | 14,585 | $ | 41,790 | |||||||||
Earnings per basic share | $ | 0.06 | $ | 0.08 | $ | 0.17 | $ | 0.5 | |||||||||
Earnings per diluted share | $ | 0.06 | $ | 0.08 | $ | 0.17 | $ | 0.49 | |||||||||
2013 Quarter | First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net sales | $ | 509,362 | $ | 490,075 | $ | 503,808 | $ | 715,880 | |||||||||
Gross profit | $ | 170,777 | $ | 152,547 | $ | 165,265 | $ | 229,118 | |||||||||
Net income | $ | 32,437 | $ | 16,909 | $ | 19,267 | $ | 47,926 | |||||||||
Earnings per basic share | $ | 0.38 | $ | 0.2 | $ | 0.23 | $ | 0.57 | |||||||||
Earnings per diluted share | $ | 0.38 | $ | 0.2 | $ | 0.23 | $ | 0.57 | |||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Details) | 12 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 05, 2010 | |
stores | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores | 641 | |||
Stores under franchise agreements | 34 | |||
Fiscal period | 364 days | 364 days | 371 days | |
Stated interest rate | 8.75% | |||
Outlet [Member] | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores | 41 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Summary of Significant Accounting Policies [Abstract] | ||
Number of Days of Payments Due From Bank Included in Balance | 5 days | |
Credit Card Receivables | $11.90 | $10.30 |
Bank Overdrafts | $14.60 | $38.30 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Fair Value Information (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. treasury securities money market funds | $166,602 | $290,361 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. treasury securities money market funds | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. treasury securities money market funds | $0 | $0 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Inventories (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ||
Inventory, Lower of Cost or Market Value Adjustment | $11.40 | $11.50 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Advertising (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Advertising [Line Items] | |||
Advertising Expense | $104.60 | $85.90 | $85.80 |
Minimum [Member] | |||
Advertising [Line Items] | |||
Expected Future Revenue Stream | 1 month | ||
Maximum [Member] | |||
Advertising [Line Items] | |||
Expected Future Revenue Stream | 3 months |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Loyalty Program (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Redemption Period For Rewards Earned | 60 days |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
stores | |||
Asset Impairment Charges [Abstract] | |||
Impairment charge | $10,527 | $26 | $6 |
Number of stores impacted by asset impairment charge | 14 | ||
Software and Software Development Costs [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 3 years | ||
Software and Software Development Costs [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 7 years | ||
PP&E, Store Assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 3 years | ||
PP&E, Store Assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 5 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 7 years | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 15 years | ||
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 6 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (in years) | 30 years |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Debt Issuance Costs and Discount (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Summary of Significant Accounting Policies [Abstract] | |||
Unamortized Debt Issuance Expense | $4.70 | $6.20 | |
Amortization of Financing Costs | 1.5 | 1.4 | 1.3 |
Amortization of Debt Discount (Premium) | $0.40 | $0.30 | $0.30 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Income Taxes (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ||
Accrued Income Taxes, Current | $16.40 | $19.20 |
Recovered_Sheet2
Summary of Significant Accounting Policies - Revenue Recognition (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Summary of Significant Accounting Policies [Abstract] | |||
Shipping and Handling Revenue | $11.30 | $14.50 | $17.40 |
Sales Return Reserve | 9.7 | 11 | |
Gift Card Liability, Current | 26 | 25.2 | |
Revenue Recognition, Gift Cards, Breakage | $2.70 | $3 | $2.30 |
Recovered_Sheet3
Summary of Significant Accounting Policies - Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Revenue from External Customers [Line Items] | |||||||||||
NET SALES | $725,801 | $497,608 | $481,420 | $460,652 | $715,880 | $503,808 | $490,075 | $509,362 | $2,165,481 | $2,219,125 | $2,157,227 |
Other Revenue [Member] | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
NET SALES | 41,788 | 41,831 | 34,203 | ||||||||
Sales Revenue, Apparel [Member] | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
NET SALES | 1,883,641 | 1,922,868 | 1,872,844 | ||||||||
Sales Revenue, Accessories [Member] | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
NET SALES | 240,052 | 254,426 | 250,180 | ||||||||
Sales Revenue, Stores [Member] | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
NET SALES | 1,769,478 | 1,836,704 | 1,851,527 | ||||||||
Sales Revenue, E-commerce [Member] | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
NET SALES | $354,215 | $340,590 | $271,497 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Property and Equipment [Abstract] | |||
Building improvements | $86,487,000 | $13,955,000 | |
Furniture, fixtures and equipment, software | 341,272,000 | 315,462,000 | |
Leasehold improvements | 371,462,000 | 344,369,000 | |
Construction in process | 40,291,000 | 93,560,000 | |
Other | 828,000 | 315,000 | |
Total | 840,340,000 | 767,661,000 | |
Less: accumulated depreciation | -432,733,000 | -391,539,000 | |
Property and equipment, net | 407,607,000 | 376,122,000 | |
Depreciation | $73,500,000 | $66,700,000 | $64,600,000 |
Leased_Facilities_and_Commitme2
Leased Facilities and Commitments - Schedule of Rent Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Leased Facilities and Commitments [Abstract] | |||
Fixed minimum | $209,323 | $201,477 | $180,577 |
Contingent | 6,398 | 5,942 | 8,180 |
Total store rent | 215,721 | 207,419 | 188,757 |
Home office, distribution center, other | 5,609 | 5,400 | 4,859 |
Total rent expense | $221,330 | $212,819 | $193,616 |
Leased_Facilities_and_Commitme3
Leased Facilities and Commitments - Schedule of Future Minimum Rent Commitments (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Operating Leased Assets [Line Items] | |
Initial lease term | 10 years |
2015 | $222,562 |
2016 | 176,521 |
2017 | 161,606 |
2018 | 148,011 |
2019 | 132,948 |
Thereafter | 566,285 |
Total | $1,407,933 |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Remaining lease term, operating leases | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Remaining lease term, operating leases | 15 years |
Lease_Financing_Obligations_De
Lease Financing Obligations (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Lease Financing Obligations [Abstract] | ||
Capital Leased Assets, Net | $71 | $63.20 |
Capital Lease Obligations | $70.90 | $63 |
Intangible_Assets_Intangible_A
Intangible Assets - Intangible Assets Table (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Intangible Assets by Major Class [Line Items] | |||
Cost, indefinite-lived | $197,562,000 | $197,812,000 | |
Cost, Intangible assets | 218,737,000 | 217,987,000 | |
Accumulated Amortization | 19,906,000 | 19,106,000 | |
Ending balance net, finite-lived | 198,831,000 | 198,881,000 | |
Amortization of intangible assets | 800,000 | 1,300,000 | 1,500,000 |
Trade Names [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Cost, indefinite-lived | 196,144,000 | 196,144,000 | |
Ending balance net, indefinite-lived | 196,144,000 | 196,144,000 | |
Internet Domain Names [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Cost, indefinite-lived | 1,418,000 | 1,668,000 | |
Ending balance net, indefinite-lived | 1,418,000 | 1,668,000 | |
Net Favorable Lease Obligations/Other [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Cost, finite-lived | 21,175,000 | 20,175,000 | |
Accumulated Amortization | 19,906,000 | 19,106,000 | |
Ending balance net, finite-lived | $1,269,000 | $1,069,000 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Intangible Assets [Abstract] | |
2015 | $149 |
2016 | 149 |
2017 | 149 |
2018 | 149 |
2019 | 149 |
Thereafter | 524 |
Total | $1,269 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Tax Disclosure [Abstract] | |||
Current U.S. federal | $29,884 | $64,071 | $74,306 |
Current U.S. state and local | 6,491 | 12,815 | 14,296 |
Current Foreign | 565 | 548 | 165 |
Current Income Tax Expense (Benefit) | 36,940 | 77,434 | 88,767 |
Deferred U.S. federal | 6,884 | 757 | 3,346 |
Deferred U.S. state and local | -558 | -1,541 | 615 |
Deferred Foreign | -35 | -23 | -24 |
Deferred Income Tax Expense (Benefit) | 6,291 | -807 | 3,937 |
INCOME TAX EXPENSE | $43,231 | $76,627 | $92,704 |
Income_Taxes_Effective_Tax_Rat
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax effect | 4.10% | 3.80% | 4.30% |
Other items, net | -0.30% | 0.90% | 0.70% |
Effective tax rate | 38.80% | 39.70% | 40.00% |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets Liabilities (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Accrued expenses and deferred compensation | $30,667 | $27,554 |
Rent | 25,605 | 21,854 |
Lease financing obligations | 29,072 | 5,972 |
Other | 2,104 | 1,515 |
Tax credits/carryforwards | 0 | 214 |
Valuation allowance | -1,668 | -1,366 |
Total deferred tax assets | 85,780 | 55,743 |
Deferred tax liabilities: | ||
Inventory | 5,915 | 2,532 |
Prepaid expenses | 3,762 | 4,827 |
Intangible assets | 13,844 | 9,530 |
Property and equipment | 51,732 | 22,036 |
Total deferred tax liabilities | 75,253 | 38,925 |
Net deferred tax asset | $10,527 | $16,818 |
Income_Taxes_Classification_of
Income Taxes - Classification of Deferred Tax Assets and Liabilities (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred tax liability | ($1,844) | ($740) |
Non-current deferred taxes | 12,371 | 17,558 |
Net deferred tax asset | $10,527 | $16,818 |
Income_Taxes_Uncertain_Tax_Pos
Income Taxes - Uncertain Tax Positions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $4,091 | $2,313 | $1,416 |
Gross addition for tax positions of the current year | 346 | 1,469 | 852 |
Gross addition for tax positions of the prior year | 129 | 309 | 225 |
Settlements | -2,137 | 0 | -180 |
Reduction for tax positions of prior years | -628 | 0 | 0 |
Lapse of statute of limitations | -150 | 0 | 0 |
Unrecognized tax benefits, end of year | $1,651 | $4,091 | $2,313 |
Income_Taxes_Narrative_Details
Income Taxes - (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Aug. 02, 2014 | Feb. 02, 2013 |
Operating Loss Carryforwards [Line Items] | ||||
Foreign deferred tax asset | $0.40 | $0.40 | ||
Valuation allowance | 0.4 | |||
Change in valuation allowance | 0.3 | 0.4 | ||
Tax credit carryforward | 0.2 | |||
Unrecognized tax benefits that would impact effective tax rate | 1.7 | 4.1 | 2.3 | |
Accrued interest on unrecognized benefits | 0.1 | 0.2 | ||
Resolution of federal and state tax examinations could reduce the Company's unrecognized tax benefits | 0.1 | |||
IRS [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Uncertain tax positions | 2.1 | |||
Interest accrued | $0.10 |
Debt_Debt_by_Instrument_Table_
Debt - Debt by Instrument Table (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $199,527 | $199,170 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 200,850 | 200,850 |
Debt discount on Senior Notes | ($1,323) | ($1,680) |
Debt_Revolving_Credit_Facility
Debt - Revolving Credit Facility (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jul. 29, 2011 | |
Debt Instrument [Line Items] | ||
Number of days in excess availability restriction | 5 days | |
Number of days in fixed charge coverage ratio restriction | 15 days | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $200,000,000 | |
Amount outstanding | 0 | |
Remaining borrowing capacity | 197,500,000 | |
Swingline advance | 30,000,000 | |
Letter of credit availability | $45,000,000 | |
Percent per annum above federal funds rate | 0.50% | |
Percent above Eurodollar rate | 1.00% | |
Minimum margin for Eurodollar rate-based advances | 1.50% | |
Maximum margin for Eurodollar rate-based advances | 2.00% | |
Commitment fee percentage | 0.38% | |
Less than the percent of borrowing base restriction | 12.50% | |
Fixed charge ratio, numerator | 1 | |
Fixed charge ratio, demonimator | 1 | |
Less than percent of borrowing base in fixed charge coverage ratio restriction | 10.00% |
Debt_Senior_Notes_Details
Debt - Senior Notes (Details) (USD $) | 0 Months Ended | ||
Mar. 01, 2015 | Mar. 05, 2010 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | |||
Stated interest rate | 8.75% | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount | 250,000,000 | ||
Stated interest rate | 8.75% | ||
Offering price percent | 98.60% | ||
Long-term debt, fair value | 206,400,000 | ||
Senior Notes [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $200,900,000 | ||
Debt Instrument, Redemption Price, Percentage | 102.19% |
Debt_Letters_of_Credit_Details
Debt - Letters of Credit (Details) (Letter of Credit [Member], USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $2.50 | $2 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Nov. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Jun. 12, 2014 | 28-May-14 | 24-May-12 | |
Class of Warrant or Right [Line Items] | ||||||
Authorized amount | $100,000,000 | $100,000,000 | ||||
Purchase of treasury shares (shares) | 5,600,000 | 1,600,000 | 4,000,000 | |||
Treasury stock acquired under repurchase program | $100,000,000 | $35,100,000 | $65,100,000 | |||
Par value (USD per share) | $0.01 | |||||
Stockholder Rights Plan [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Percent of outstanding stock acquired | 10.00% | |||||
Number of securities called by each warrant or right | 0.01 | |||||
Exercise price of warrants or rights (usd per warrant) | $70 |
ShareBased_Compensation_Cost_b
Share-Based Compensation - Cost by Award Type (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Authorized under the Equity Incentive Plan | 15.2 | ||
Shares Available under the Equity Incentive Plan | 8.2 | ||
Share-based compensation | $19,326,000 | $21,174,000 | $16,308,000 |
Tax Benefit from Share-based Compensation Expense | 3,900,000 | 3,500,000 | 1,700,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 7,556,000 | 8,883,000 | 8,123,000 |
Restricted Stock and Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $11,770,000 | $12,291,000 | $8,185,000 |
ShareBased_Compensation_Other_
Share-Based Compensation - Other Stock Options Details (Details) (Stock Options [Member]) | 12 Months Ended |
Jan. 31, 2015 | |
Stock Options [Member] | |
Vesting Details [Line Items] | |
Annual Award Vesting Percentage | 25.00% |
Award Contractual Life | 4 years |
Award Vesting Period | 10 years |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of Stock Options (Details) (Stock Options [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
Stock Options [Member] | |
Number of Shares | |
Stock Options Outstanding at beginning of period (shares) | 3,234 |
Stock Options Granted (shares) | 388 |
Stock Options Exercised (shares) | 0 |
Stock Options Forfeited or expired (shares) | -152 |
Stock Options Outstanding at end of period (shares) | 3,470 |
Stock Options Expected to Vest at end of period (shares) | 1,132 |
Stock Options Exercisable at end of period (shares) | 2,310 |
Grant Date Weighted Average Exercise Price | |
Grant Date Weighted Average Exercise Price of Options Outstanding at beginning of period (usd per share) | $18.85 |
Grant Date Weighted Average Exercise Price of Options Granted (usd per share) | $15.84 |
Grant Date Weighted Average Exercise Price of Options Exercised (usd per share) | $0 |
Grant Date Weighted Average Exercise Price of Options Forfeited or expired (usd per share) | $20.10 |
Grant Date Weighted Average Exercise Price of Options Outstanding at end of period (usd per share) | $18.45 |
Grant Date Weighted Average Exercise Price of Options Expected to Vest at end of period (usd per share) | $18.35 |
Grant Date Weighted Average Exercise Price of Options Exercisable at end of period (usd per share) | $18.52 |
Weighted-Average Remaining Contractual Life | |
Weighted Average Remaining Contractual Life of Options Outstanding (in years) | 6 years 8 months 12 days |
Weighted Average Remaining Contractual Life of Options Expected to Vest at end of period (in years) | 8 years 1 month 6 days |
Weighted Average Remaining Contractual Life of Options Exercisable at end of period (in years) | 6 years 1 month 6 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value of Options Outstanding at end of period | $97 |
Aggregate Intrinsic Value of Options Expected to Vest at end of period | 47 |
Aggregate Intrinsic Value of Options Exercisable at end of period | $49 |
ShareBased_Compensation_Unreco
Share-Based Compensation - Unrecognized Compensation Expense and Period for Recognition (Details) (Stock Options [Member], USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Stock Options [Member] | |||
Unrecognized Compensation Expense and Period for Recognition [Line Items] | |||
Weighted average grant date fair value of options granted (USD per share) | $8.49 | $9.50 | $12.75 |
Total intrinsic value of options exercised | $0 | $1,001,000 | $270,000 |
Unrecognized Share-based Compensation Expense | $5,300,000 | ||
Unrecognized Share-based Compensation Expense, Period for Recognition | 1 year 6 months |
ShareBased_Compensation_Valuat
Share-Based Compensation - Valuation Assumptions (Details) (Stock Option [Member]) | 12 Months Ended | |||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||
Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 1.86% | [1] | 1.14% | [1] | 1.12% | [1] |
Price volatility | 53.70% | [2] | 55.90% | [2] | 55.90% | [2] |
Expected Term | 6 years 3 months | [3] | 6 years 2 months 13 days | [3] | 6 years 2 months 1 day | [3] |
Equity dividend yield | 0.00% | [4] | 0.00% | [4] | 0.00% | [4] |
[1] | Represents the yield on U.S. Treasury securities with a term consistent with the expected term of the stock options. | |||||
[2] | For the first two years following the initial public offering of the Company's common stock, this was based on the historical volatility of selected comparable companies over a period consistent with the expected term of the stock options because the Company had a limited history of being publicly traded. Comparable companies were selected primarily based on industry, stage of life cycle, and size. Beginning with the second anniversary of the IPO in May 2012, the Company began using its own volatility as an additional input in the determination of expected volatility. | |||||
[3] | Calculated utilizing the “simplified†methodology prescribed by SAB No. 107 due to the lack of historical exercise data necessary to provide a reasonable basis upon which to estimate the term. | |||||
[4] | The Company does not currently plan on paying regular dividends. |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of Restricted Stock and Restricted Stock Units (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
Performance-based Restricted Stock Units [Member] | |
Number of Shares | |
Awards Granted (in shares) | 500 |
Grant Date Weighted Average Fair Value | |
Performance condition period | 2 years |
Restricted Stock Units And Restricted Stock Awards [Member] | |
Number of Shares | |
Awards Unvested at beginning of period (in shares) | 1,487 |
Awards Granted (in shares) | 778 |
Awards Vested (in shares) | -718 |
Awards Forfeited (in shares) | -112 |
Awards Unvested at end of period (in shares) | 1,435 |
Grant Date Weighted Average Fair Value | |
Awards, grant date weighted average fair value at beginning of period (usd per share) | 19.29 |
Awards, grant date weighted average fair value, shares granted (usd per share) | 15.68 |
Awards, grant date weighted average fair value, shares vested (usd per share) | 18.66 |
Awards, grant date weighted average fair value, shares forfeited (usd per share) | 18.08 |
Awards, grant date weighted average fair value at end of period (usd per share) | 17.75 |
Minimum [Member] | Performance-based Restricted Stock Units [Member] | |
Grant Date Weighted Average Fair Value | |
Target percentage of equity awards earned over two-year performance period | 0.00% |
Maximum [Member] | Performance-based Restricted Stock Units [Member] | |
Grant Date Weighted Average Fair Value | |
Target percentage of equity awards earned over two-year performance period | 125.00% |
ShareBased_Compensation_Restri
Share-Based Compensation - Restricted Stock Units and Restricted Stock Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, Total Fair Value of Vested In Period | $13.40 | $8.50 | $3.20 |
Performance-based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Granted (in shares) | 500 | ||
Award Vesting Period | 4 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Share-based Compensation Expense | $13.80 | ||
Unrecognized Share-based Compensation Expense, Period for Recognition | 1 year 8 months 18 days |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average shares - basic | 84,144,000 | 84,466,000 | 86,852,000 |
Dilutive effect of stock options, restricted stock units, and restricted stock (in shares) | 410,000 | 602,000 | 354,000 |
Weighted average shares - diluted | 84,554,000 | 85,068,000 | 87,206,000 |
Potentially dilutive securities (in shares) | 4,200,000 | 2,000,000 | 3,100,000 |
Performance-based Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Awards Granted (in shares) | 500,000 |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Retirement Benefits [Abstract] | |||
Employer match | $3,100,000 | $3,100,000 | $2,700,000 |
Discretionary contribution | 4,800,000 | 5,400,000 | |
Maximum number of years for non qualified plan payout | 10 years | ||
Total expense recognized related to the Non-Qualified Plan | 1,500,000 | 2,600,000 | 3,500,000 |
Accrued contributions | 800,000 | ||
Unallocated contributions | 26,600,000 | ||
Defined Benefit Plan Liability [Roll Forward] | |||
Balance, beginning of period | 25,753,000 | 24,089,000 | |
Employee contributions | 1,273,000 | 1,460,000 | |
Company contributions | 836,000 | 1,758,000 | |
Interest | 1,387,000 | 1,307,000 | |
Distributions | -1,904,000 | -2,861,000 | |
Forfeitures | -89,000 | 0 | |
Balance, end of period | $27,256,000 | $25,753,000 | $24,089,000 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $725,801 | $497,608 | $481,420 | $460,652 | $715,880 | $503,808 | $490,075 | $509,362 | $2,165,481 | $2,219,125 | $2,157,227 |
Gross profit | 229,998 | 157,558 | 136,025 | 137,373 | 229,118 | 165,265 | 152,547 | 170,777 | 660,954 | 717,707 | 742,639 |
Net income | $41,790 | $14,585 | $6,867 | $5,083 | $47,926 | $19,267 | $16,909 | $32,437 | $68,325 | $116,539 | $139,267 |
Earnings per basic share (USD per share) | $0.50 | $0.17 | $0.08 | $0.06 | $0.57 | $0.23 | $0.20 | $0.38 | $0.81 | $1.38 | $1.60 |
Earnings per diluted share (USD per share) | $0.49 | $0.17 | $0.08 | $0.06 | $0.57 | $0.23 | $0.20 | $0.38 | $0.81 | $1.37 | $1.60 |