DEI Information
DEI Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 02, 2019 | Aug. 04, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | EXPRESS, INC. | ||
Entity Central Index Key | 0001483510 | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 66,506,657 | ||
Entity Public Float | $ 696,370,328 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 171,670 | $ 236,222 |
Receivables, net | 17,369 | 12,084 |
Inventories | 267,766 | 260,728 |
Prepaid minimum rent | 30,047 | 30,779 |
Other | 25,176 | 24,319 |
Total current assets | 512,028 | 564,132 |
PROPERTY AND EQUIPMENT | 1,083,347 | 1,047,447 |
Less: accumulated depreciation | (719,068) | (642,434) |
Property and equipment, net | 364,279 | 405,013 |
TRADENAME/DOMAIN NAMES/TRADEMARKS | 197,618 | 197,618 |
DEFERRED TAX ASSETS | 5,442 | 7,346 |
OTHER ASSETS | 7,260 | 12,815 |
Total assets | 1,086,627 | 1,186,924 |
CURRENT LIABILITIES: | ||
Accounts payable | 155,913 | 145,589 |
Deferred revenue | 40,466 | 41,240 |
Accrued expenses | 78,313 | 110,563 |
Total current liabilities | 274,692 | 297,392 |
DEFERRED LEASE CREDITS | 129,505 | 137,618 |
OTHER LONG-TERM LIABILITIES | 97,252 | 103,600 |
Total liabilities | 501,449 | 538,610 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock – $0.01 par value; 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock – $0.01 par value; 500,000 shares authorized; 93,632 shares and 92,647 shares issued at February 2, 2019 and February 3, 2018, respectively, and 67,424 shares and 76,724 shares outstanding at February 2, 2019 and February 3, 2018, respectively | 936 | 926 |
Additional paid-in capital | 211,981 | 199,099 |
Accumulated other comprehensive loss | 0 | 0 |
Retained earnings | 713,864 | 704,395 |
Treasury stock – at average cost; 26,208 shares and 15,923 shares at February 2, 2019 and February 3, 2018, respectively | (341,603) | (256,106) |
Total stockholders’ equity | 585,178 | 648,314 |
Total liabilities and stockholders’ equity | $ 1,086,627 | $ 1,186,924 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 | 93,632,000 | 92,647,000 |
Common stock, shares outstanding | 67,424,000 | 76,724,000 |
Treasury stock, shares at average cost | 26,208,000 | 15,923,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Statement [Abstract] | |||
NET SALES | $ 2,116,344 | $ 2,158,502 | $ 2,204,417 |
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS | 1,501,433 | 1,530,991 | 1,529,728 |
Gross profit | 614,911 | 627,511 | 674,689 |
OPERATING EXPENSES: | |||
Selling, general, and administrative expenses | 587,348 | 573,550 | 569,546 |
Restructuring costs | 166 | 22,869 | 0 |
Other operating (income)/expense, net | (818) | 536 | 62 |
Total operating expenses | 586,696 | 596,955 | 569,608 |
OPERATING INCOME | 28,215 | 30,556 | 105,081 |
INTEREST EXPENSE, NET | 25 | 2,242 | 13,468 |
OTHER EXPENSE/(INCOME), NET | 7,900 | (537) | (484) |
INCOME BEFORE INCOME TAXES | 20,290 | 28,851 | 92,097 |
INCOME TAX EXPENSE | 10,660 | 9,978 | 33,757 |
NET INCOME | 9,630 | 18,873 | 58,340 |
OTHER COMPREHENSIVE INCOME: | |||
Foreign currency translation gain (loss) | 0 | (402) | 862 |
Amount reclassified to earnings | 0 | 4,205 | 0 |
COMPREHENSIVE INCOME | $ 9,630 | $ 22,676 | $ 59,202 |
EARNINGS PER SHARE: | |||
Basic (usd per share) | $ 0.13 | $ 0.24 | $ 0.74 |
Diluted (usd per share) | $ 0.13 | $ 0.24 | $ 0.74 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 72,518 | 78,592 | 78,669 |
Diluted (in shares) | 73,239 | 78,870 | 79,049 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance, at start of period (in shares) at Jan. 30, 2016 | 80,914 | |||||
Balance, at start of period at Jan. 30, 2016 | $ 617,953 | $ 911 | $ 169,515 | $ 633,298 | $ (4,665) | $ (181,106) |
Balance, at start of period, treasury stock (in shares) at Jan. 30, 2016 | 10,213 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 58,340 | 58,340 | ||||
Exercise of stock options and restricted stock (in shares) | 936 | |||||
Exercise of stock options and restricted stock | 2,734 | $ 10 | 2,724 | |||
Share-based compensation | 12,858 | 12,858 | ||||
Repurchase of common stock (in shares) | (3,428) | (3,428) | ||||
Repurchase of common stock | (56,137) | $ (56,137) | ||||
Foreign currency translation | 862 | 862 | ||||
Amount reclassified to earnings | 0 | |||||
Balance, at end of period (in shares) at Jan. 28, 2017 | 78,422 | |||||
Balance, at end of period at Jan. 28, 2017 | 630,494 | $ 921 | 185,097 | 685,522 | (3,803) | $ (237,243) |
Balance, at end of period, treasury stock (in shares) at Jan. 28, 2017 | 13,641 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 18,873 | 18,873 | ||||
Exercise of stock options and restricted stock (in shares) | 584 | |||||
Exercise of stock options and restricted stock | (1) | $ 5 | (6) | |||
Share-based compensation | 14,008 | 14,008 | ||||
Repurchase of common stock (in shares) | (2,282) | (2,282) | ||||
Repurchase of common stock | (18,863) | $ (18,863) | ||||
Foreign currency translation | (402) | (402) | ||||
Amount reclassified to earnings | $ 4,205 | 4,205 | ||||
Balance, at end of period (in shares) at Feb. 03, 2018 | 92,647 | 76,724 | ||||
Balance, at end of period at Feb. 03, 2018 | $ 648,314 | $ 926 | 199,099 | 704,395 | 0 | $ (256,106) |
Balance, at end of period, treasury stock (in shares) at Feb. 03, 2018 | 15,923 | 15,923 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 9,630 | 9,630 | ||||
Exercise of stock options and restricted stock (in shares) | 1,013 | 28 | ||||
Exercise of stock options and restricted stock | 1 | $ 10 | (232) | (161) | $ 384 | |
Share-based compensation | 13,114 | 13,114 | ||||
Repurchase of common stock (in shares) | (10,313) | (10,313) | ||||
Repurchase of common stock | (85,881) | $ (85,881) | ||||
Foreign currency translation | 0 | |||||
Amount reclassified to earnings | $ 0 | |||||
Balance, at end of period (in shares) at Feb. 02, 2019 | 93,632 | 67,424 | ||||
Balance, at end of period at Feb. 02, 2019 | $ 585,178 | $ 936 | $ 211,981 | $ 713,864 | $ 0 | $ (341,603) |
Balance, at end of period, treasury stock (in shares) at Feb. 02, 2019 | 26,208 | 26,208 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 9,630 | $ 18,873 | $ 58,340 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 85,853 | 90,221 | 82,144 |
Loss on disposal of property and equipment | 368 | 2,891 | 942 |
Impairment charge | 818 | 9,850 | 5,108 |
Equity method investment impairment | 8,400 | 0 | 0 |
Loss on deconsolidation of Canada | 0 | 10,672 | 0 |
Amortization of lease financing obligation discount | 0 | 0 | 11,354 |
Share-based compensation | 13,114 | 14,008 | 12,858 |
Deferred taxes | 536 | 396 | 20,622 |
Landlord allowance amortization | (11,606) | (13,183) | (11,280) |
Other non-cash adjustments | (500) | (500) | 0 |
Changes in operating assets and liabilities: | |||
Receivables, net | (5,284) | 3,279 | 6,371 |
Inventories | (7,038) | (28,279) | 18,297 |
Accounts payable, deferred revenue, and accrued expenses | (21,097) | (14,166) | (17,138) |
Other assets and liabilities | 523 | 24,505 | (910) |
Net cash provided by operating activities | 73,717 | 118,567 | 186,708 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (49,778) | (57,435) | (98,712) |
Decrease in cash and cash equivalents resulting from deconsolidation of Canada | 0 | (9,232) | 0 |
Purchase of intangible assets | 0 | 0 | (21) |
Investment in equity interests | 0 | 0 | (10,133) |
Net cash used in investing activities | (49,778) | (66,667) | (108,866) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments on lease financing obligations | (1,860) | (1,710) | (1,595) |
Repayments of financing arrangements | (750) | (2,040) | (3,274) |
Proceeds from exercise of stock options | 0 | 0 | 2,735 |
Repurchase of common stock under share repurchase programs (see Note 9) | (83,172) | (17,264) | (51,538) |
Repurchase of common stock for tax withholding obligations | (2,709) | (1,599) | (4,599) |
Net cash used in financing activities | (88,491) | (22,613) | (58,271) |
EFFECT OF EXCHANGE RATE ON CASH | 0 | (438) | 899 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (64,552) | 28,849 | 20,470 |
CASH AND CASH EQUIVALENTS, Beginning of period | 236,222 | 207,373 | 186,903 |
CASH AND CASH EQUIVALENTS, End of period | 171,670 | 236,222 | 207,373 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid to taxing authorities | $ 11,642 | $ 6,142 | $ 40,413 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Feb. 02, 2019 | |
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 leading fashion destination and apparel brand for both women and men. Since 1980, Express has provided the latest apparel and accessories for work, casual, jeanswear, and going-out, offering a distinct combination of fashion and quality at an attractive value. As of February 2, 2019 , Express operated 447 primarily mall-based retail stores in the United States and Puerto Rico as well as 184 factory outlet stores. Additionally, as of February 2, 2019 , the Company earned revenue from 16 franchise stores in Latin America. These franchise stores are operated by franchisees pursuant to franchise agreements. Under the franchise agreements, the franchisees operate stand-alone Express stores that sell Express-branded apparel and accessories purchased directly from the Company. On May 4, 2017, Express announced its intention to exit the Canadian market and Express Fashion Apparel Canada Inc. and one of its wholly-owned subsidiaries filed for protection in Canada under the Companies' Creditors Arrangement Act (CCAA) with the Ontario Superior Court of Justice in Toronto. As of May 4, 2017, Canadian retail operations were deconsolidated from the Company's financial statements. Canadian financial results prior to May 4, 2017 are included in the Company's consolidated financial statements. See Note 14 for additional information. CEO Transition The Board of Directors (the “Board”) of Express, Inc. (the “Company”) appointed Matthew Moellering as Interim President and Interim Chief Executive Officer of the Company to succeed David Kornberg, effective January 22, 2019. In connection with his employment termination, Mr. Kornberg will be entitled to the severance payments and benefits as set forth in his employment agreement. As a result of this departure, the Company recorded expense of $5.4 million in the fourth quarter of 2018 within selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. 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. All references herein to " 2018 ", " 2017 ", and " 2016 " refer to the 52-week period ended February 2, 2019 , the 53-week period ended February 3, 2018 , and the 52-week period ended January 28, 2017 , respectively. 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. 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. until it was acquired by Golden Gate Capital in 2007. 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. Segment Reporting The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The Company has determined that, its interim Chief Executive Officer and interim President is 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. 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 revenue and expense 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. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”). ASC 606 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 in the first quarter of fiscal 2018 under the full retrospective method, which required the adjustment of each prior period presented. The primary impact of ASC 606 relates to the accounting for points earned under the Company’s customer loyalty program, the timing of revenue recognition for e-commerce sales, and the classification on the income statement of funds received and certain costs incurred related to our private label credit card program. Upon the adoption of ASC 606, the Company recognized a cumulative effect of a change in accounting principle through a reduction to retained earnings on January 31, 2016, the first day of fiscal 2016, in the amount of $6.1 million . The impact of the adoption of ASC 606 on previously issued financial statements included in this report are as follows: CONSOLIDATED BALANCE SHEET (in thousands except per share amounts) February 3, 2018 ASSETS As Reported Adjustments for adoption of ASC 606 As Adjusted CURRENT ASSETS: Cash and cash equivalents $ 236,222 $ — $ 236,222 Receivables, net 12,084 — 12,084 Inventories 266,271 (5,543 ) 260,728 Prepaid minimum rent 30,779 — 30,779 Other 19,780 4,539 24,319 Total current assets 565,136 (1,004 ) 564,132 PROPERTY AND EQUIPMENT 1,047,447 — 1,047,447 Less: accumulated depreciation (642,434 ) — (642,434 ) Property and equipment, net 405,013 — 405,013 TRADENAME/DOMAIN NAMES/TRADEMARKS 197,618 — 197,618 DEFERRED TAX ASSETS 7,025 321 7,346 OTHER ASSETS 12,815 — 12,815 Total assets $ 1,187,607 $ (683 ) $ 1,186,924 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 145,589 $ — $ 145,589 Deferred revenue 28,920 12,320 41,240 Accrued expenses 116,355 (5,792 ) 110,563 Total current liabilities 290,864 6,528 297,392 DEFERRED LEASE CREDITS 137,618 — 137,618 OTHER LONG-TERM LIABILITIES 105,125 (1,525 ) 103,600 Total liabilities 533,607 5,003 538,610 STOCKHOLDERS’ EQUITY: Common stock 926 — 926 Additional paid-in capital 199,099 — 199,099 Retained earnings 710,081 (5,686 ) 704,395 Treasury stock (256,106 ) — (256,106 ) Total stockholders’ equity 654,000 (5,686 ) 648,314 Total liabilities and stockholders’ equity $ 1,187,607 $ (683 ) $ 1,186,924 CONSOLIDATED STATEMENTS OF INCOME Fifty-Three Weeks Ended February 3, 2018 (in thousands, except per share amounts) As Reported Adjustments for adoption of ASC 606 As Adjusted NET SALES $ 2,138,030 $ 20,472 $ 2,158,502 COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS 1,522,797 8,194 1,530,991 Gross profit 615,233 12,278 627,511 OPERATING EXPENSES: Selling, general and administrative expenses 562,088 11,462 573,550 Restructuring costs 22,869 — 22,869 Other operating expense, net 536 — 536 Total operating expenses 585,493 11,462 596,955 OPERATING INCOME/(LOSS) 29,740 816 30,556 INTEREST EXPENSE, NET 2,242 — 2,242 OTHER INCOME, NET (537 ) — (537 ) INCOME/(LOSS) BEFORE INCOME TAXES 28,035 816 28,851 INCOME TAX (BENEFIT) EXPENSE 8,669 1,309 9,978 NET INCOME/(LOSS) $ 19,366 $ (493 ) $ 18,873 EARNINGS PER SHARE: Basic $ 0.25 $ (0.01 ) $ 0.24 Diluted $ 0.25 $ (0.01 ) $ 0.24 CONSOLIDATED STATEMENTS OF INCOME Fifty-Two Weeks Ended January 28, 2017 (in thousands, except per share amounts) As Reported Adjustments for adoption of ASC 606 As Adjusted NET SALES $ 2,192,547 $ 11,870 $ 2,204,417 COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS 1,529,343 385 1,529,728 Gross profit 663,204 11,485 674,689 OPERATING EXPENSES: Selling, general and administrative expenses 559,541 10,005 569,546 Restructuring costs — — — Other operating expense, net 62 — 62 Total operating expenses 559,603 10,005 569,608 OPERATING INCOME/(LOSS) 103,601 1,480 105,081 INTEREST EXPENSE, NET 13,468 — 13,468 OTHER INCOME, NET (484 ) — (484 ) INCOME/(LOSS) BEFORE INCOME TAXES 90,617 1,480 92,097 INCOME TAX (BENEFIT) EXPENSE 33,200 557 33,757 NET INCOME/(LOSS) $ 57,417 $ 923 $ 58,340 EARNINGS PER SHARE: Basic $ 0.73 $ 0.01 $ 0.74 Diluted $ 0.73 $ 0.01 $ 0.74 CONSOLIDATED STATEMENT OF CASH FLOWS Fifty-Three Weeks Ended February 3, 2018 (in thousands) As Reported Adjustments for adoption of ASC 606 As Adjusted CASH FLOWS FROM OPERATING ACTIVITIES: Net income/(loss) $ 19,366 $ (493 ) $ 18,873 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Depreciation and amortization 90,221 — 90,221 Loss on disposal of property and equipment 2,891 — 2,891 Impairment charge 9,850 — 9,850 Loss on deconsolidation of Canada 10,672 — 10,672 Share-based compensation 14,008 — 14,008 Deferred taxes (912 ) 1,308 396 Landlord allowance amortization (13,183 ) — (13,183 ) Other non-cash adjustments (500 ) — (500 ) Changes in operating assets and liabilities: Receivables, net 3,279 — 3,279 Inventories (28,954 ) 675 (28,279 ) Accounts payable, deferred revenue, and accrued expenses (12,862 ) (1,304 ) (14,166 ) Other assets and liabilities 24,691 (186 ) 24,505 Net cash provided by operating activities 118,567 — 118,567 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (57,435 ) — (57,435 ) Decrease in cash and cash equivalents resulting from deconsolidation of Canada (9,232 ) — (9,232 ) Net cash used in investing activities (66,667 ) — (66,667 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on lease financing obligations (1,710 ) — (1,710 ) Repayments of financing arrangements (2,040 ) — (2,040 ) Repurchase of common stock under share repurchase program (17,264 ) — (17,264 ) Repurchase of common stock for tax withholding obligations (1,599 ) — (1,599 ) Net cash used in financing activities (22,613 ) — (22,613 ) EFFECT OF EXCHANGE RATE ON CASH (438 ) — (438 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 28,849 — 28,849 CASH AND CASH EQUIVALENTS, Beginning of period 207,373 — 207,373 CASH AND CASH EQUIVALENTS, End of period $ 236,222 $ — $ 236,222 CONSOLIDATED STATEMENT OF CASH FLOWS Fifty-Two Weeks Ended January 28, 2017 (in thousands) As Reported Adjustments for adoption of ASC 606 As Adjusted CASH FLOWS FROM OPERATING ACTIVITIES: Net income/(loss) $ 57,417 $ 923 $ 58,340 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Depreciation and amortization 82,144 — 82,144 Loss on disposal of property and equipment 942 — 942 Impairment charge 5,108 — 5,108 Amortization of lease financing obligation 11,354 — 11,354 Share-based compensation 12,858 — 12,858 Deferred taxes 20,065 557 20,622 Landlord allowance amortization (11,280 ) — (11,280 ) Changes in operating assets and liabilities: Receivables, net 6,371 — 6,371 Inventories 14,144 4,153 18,297 Accounts payable, deferred revenue, and accrued expenses (15,857 ) (1,281 ) (17,138 ) Other assets and liabilities 3,442 (4,352 ) (910 ) Net cash provided by operating activities 186,708 — 186,708 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (98,712 ) — (98,712 ) Decrease in cash and cash equivalents resulting from deconsolidation of Canada — — — Purchase of intangible assets (21 ) — (21 ) Investment in equity interests (10,133 ) — (10,133 ) Net cash used in investing activities (108,866 ) — (108,866 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on lease financing obligations (1,595 ) — (1,595 ) Repayments of financing arrangements (3,274 ) — (3,274 ) Proceeds from exercise of stock options 2,735 — 2,735 Repurchase of common stock under share repurchase program (51,538 ) — (51,538 ) Repurchase of common stock for tax withholding obligations (4,599 ) — (4,599 ) Net cash used in financing activities (58,271 ) — (58,271 ) EFFECT OF EXCHANGE RATE ON CASH 899 — 899 NET DECREASE IN CASH AND CASH EQUIVALENTS 20,470 — 20,470 CASH AND CASH EQUIVALENTS, Beginning of period 186,903 — 186,903 CASH AND CASH EQUIVALENTS, End of period $ 207,373 $ — $ 207,373 Recently Issued Accounting Pronouncements - Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” ASU 2016-02 requires entities to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. Under ASU 2016-02, a lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on its balance sheet. The new standard is effective for annual and interim periods beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018-11, “Leases: Targeted Improvements,” as an amendment to ASU 2016-02, which provides entities with an additional transition method to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt the new leasing standard in the first quarter of 2019. Upon adoption, the Company will provide expanded disclosures in the consolidated financial statements and expects to recognize right of use assets and lease liabilities of approximately $1.1 billion to $1.4 billion . The Company does not anticipate the standard having a material impact on the income statement, however it continues to evaluate this potential impact and the internal control implications. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include investments in money market funds, commercial paper with a maturity at the time of purchase of less than 90 days, payments due from banks for third-party credit and debit card transactions for up to five days of sales, cash on hand, and deposits with financial institutions. As of February 2, 2019 and February 3, 2018 , amounts due from banks for credit and debit card transactions totaled approximately $12.5 million and $11.3 million , respectively. Outstanding checks not yet presented for payment amounted to $8.0 million and $9.1 million as of February 2, 2019 and February 3, 2018 , 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 February 2, 2019 and February 3, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall. February 2, 2019 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 155,014 $ — $ — February 3, 2018 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 139,920 $ — $ — Commercial Paper — 79,908 — $ 139,920 $ 79,908 $ — The money market funds are valued using quoted market prices in active markets. The commercial paper is valued using other observable inputs for those securities based on information provided by an independent third party entity. 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. The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables, prepaid expenses, and payables as of February 2, 2019 and February 3, 2018 approximated their fair values. Receivables, Net Receivables, net consist primarily of construction allowances, receivables from the Bank related to the Card Agreement, our franchisees, and third-party resellers of our gift cards, and other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability. The Company's allowance for doubtful accounts was not significant as of February 2, 2019 or February 3, 2018 . Inventories Inventories are principally valued at the lower of cost or net realizable value 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 net realizable value adjustment to inventory as of February 2, 2019 and February 3, 2018 was $16.0 million and $12.1 million , respectively. The Company also records an inventory shrink reserve for estimated merchandise inventory losses 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. Total advertising expense totaled $123.1 million , $112.8 million , and $113.2 million in 2018, 2017, and 2016 , respectively. Advertising costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. 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 2018 , as a result of decreased performance in certain stores, the Company recognized impairment charges of $0.8 million related to 3 stores. In 2017 , the Company recognized impairment charges of $4.4 million related to 12 stores. In addition, during 2017 , the Company recognized $5.5 million related to its 17 Canadian stores, all of which were fully impaired and are now closed. In 2016 , the Company recognized impairment charges of $5.1 million related to 11 stores. With the exception of the Canadian impairment, impairment charges are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. The Canadian impairment was recorded in restructuring costs in the Consolidated Statements of Income and Comprehensive Income. See Note 14 for further discussion of the exit of the Canadian operations. 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 quantitative and/or 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. The Company did not incur any impairment charges on indefinite lived intangible assets in 2018, 2017, or 2016 . Investment in Equity Interests In 2016, the Company made a $10.1 million investment in Homage, LLC, a privately held retail company based in Columbus, Ohio. The non-controlling investment in the entity is being accounted for under the equity method. Under the terms of the agreement governing the investment, the Company's investment was increased by $0.5 million during 2017 and 2018 as the result of an accrual of a non-cash preferred yield. This investment is assessed for impairment whenever factors indicate an other than temporary loss in value. Factors providing evidence of such a loss include the fair value of an investment that is less than its carrying value, absence of an ability to recover the carrying value or the investee’s inability to generate income sufficient to justify the carrying value. As a result of this assessment in 2018, the Company determined the carrying value exceeded the fair value and recognized an $8.4 million impairment charge in 2018 within other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. The remaining $2.7 million investment, inclusive of the $1.0 million preferred yield, is included in other assets on the Consolidated Balance Sheets. The fair value of the equity method investment was determined based on applying income and market approaches. The income approach relied on the discounted cash flow method and the market approach relied on a market multiple approach considering historical and projected financial results. Leases and Landlord Allowances 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 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 a deferred lease credit 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. 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. On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted into law. See Note 7 for further discussion of the TCJA. 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 other long-term liabilities on the Consolidated Balance Sheets. The income tax liability was $8.2 million and $9.3 million as of February 2, 2019 and February 3, 2018 , respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The income tax receivable was $1.5 million and $1.8 million as of February 2, 2019 and February 3, 2018 , respectively, and is included in other current assets 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 was the functional currency for the Company's Canadian business, prior to the deconsolidation of the Canadian subsidiary. See Note 14 for additional information. 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 (income) expense, 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. Revenue Recognition The following is information regarding the Company's major product and sales channels: 2018 2017 2016 (in thousands) Apparel $ 1,828,836 $ 1,873,376 $ 1,916,891 Accessories and other 222,611 228,317 236,194 Other revenue 64,897 56,809 51,332 Total net sales $ 2,116,344 $ 2,158,502 $ 2,204,417 2018 2017 2016 (in thousands) Stores $ 1,442,601 $ 1,592,222 $ 1,740,160 E-commerce 608,846 509,471 412,925 Other revenue 64,897 56,809 51,332 Total net sales $ 2,116,344 $ 2,158,502 $ 2,204,417 E-commerce sales processed through the stores are included in e-commerce revenue. Merchandise returns are reflected in the accounting records of the channel where they are physically returned. Other revenue consists primarily of sell-off revenue related to mark-out-of-stock inventory sales to third parties, shipping and handling revenue related to e-commerce activity, revenue earned from the Card Agreement, revenue from gift card breakage, and revenue from franchise agreements. Revenues and long-lived assets relating to the Company's international operations for 2018, 2017, and 2016 , respectively, were not material and, therefore, not reported separately from domestic revenues and long-lived assets. Merchandise Sales The Company recognizes sales for in-store purchases at the point-of-sale. Revenue related to e-commerce transactions is recognized upon shipment based on the fact that control transfers to the customer at that time. The Company has made a policy election to treat shipping and handling as costs to fulfill the contract, and as a result any amounts received from customers included in the transaction price are allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income for amounts paid to applicable carriers. Associate discounts on merchandise purchases are classified as a reduction of net sales. Net sales excludes 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 merchandise and/or royalties. Revenues from merchandise 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. Loyalty Program The Company maintains a customer loyalty program in which customers earn points toward rewards for qualifying purchases and other marketing activities. Upon reaching specified point values, customers are issued a reward, which they may redeem on merchandise purchased at the Company’s stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company defers a portion of merchandise sales based on the estimated standalone selling price of the points earned. This deferred revenue is recognized as certificates are redeemed or expire. To calculate this deferral, the Company makes assumptions related to card holder redemption rates based on historical experience. The loyalty liability is included in deferred revenue on the Consolidated Balance Sheets. 2018 2017 (in thousands) Beginning balance loyalty deferred revenue $ 14,186 $ 15,662 Reduction in revenue/(revenue recognized) 1,133 (1,476 ) Ending balance loyalty deferred revenue $ 15,319 $ 14,186 Sales Returns Reserve The Company reduces net sales and 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 $9.9 million and $10.6 million as of February 2, 2019 and February 3, 2018 , respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The asset related to projected returned merchandise is included in other assets on the Consolidated Balance Sheets. Gift Cards 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 $25.1 million , and $26.7 million as of February 2, 2019 and February 3, 2018 , 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, referred to as "gift card breakage." Gift card breakage 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. The gift card breakage rate is based on historical redemption patterns. Gift card breakage is included in net sales in the Consolidated Statements of Income and Comprehensive Income. 2018 2017 (in thousands) Beginning gift card liability $ 26,737 $ 27,498 Issuances 46,977 49,526 Redemptions (45,076 ) (46,943 ) Gift card breakage (3,505 ) (3,344 ) Ending gift card liability $ 25,133 $ 26,737 Private Label Credit Card The Company's Card Agreement was amended on August 28, 2017 to extend the term of the arrangement through December 31, 2024. Each private label credit card bears the logo of the Express brand and can only be used at the Company’s store locations and e-commerce channel. The Bank 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 amounts from the Bank during the term based on a percentage of private label credit card sales, and is also eligible to receive incentive payments for the achievement of certain performance targets. These funds are recorded as net sales in the Consolidated Statements of Income and Comprehensive Income. The Company also receives reimbursement funds from the Bank for expenses the Company incurs. These reimbursement funds are used by the Company to fund marketing and other programs associated with the private label credit card. The reimbursement funds received related to these private label credit cards are recorded as net sales in the Consolidated Statements of Income and Comprehensive Income. In connection with the Card Agreement, the Bank agreed to pay the Company a $20.0 million refundable payment which the Company recognized upon receipt as deferred revenue within other long-term liabilities in the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January of calendar year 2018. The remaining deferred revenue balance of $17.0 million will be recognized over the term of the amended Card Agreement within the other revenue component of net sales. In addition, the Company received $7.1 million in non-refundable payments during 2017 which were recognized in the other revenue component of net sales on the Consolidated Statements of Income and Comprehensive Income with the related expenses classified as cost of goods sold, buying and occupancy. 2018 2017 (in thousands) Beginning balance refundable payment liability $ 19,906 $ 347 Refundable Payment Received — 20,000 Recognized in revenue (2,878 ) (441 ) Ending balance refundable payment liability $ 17,028 $ 19,906 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, e-commerce 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. Other Operating Expense, Net Other operating income, net primarily consists of gains/losses on disposal of assets and excess proceeds from the settlement of insurance claims. Other (Income) Expense, Net Other (income) expense, net primarily consists of currency transaction gains/losses and activity related to our equity method investment in Homage. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consisted of: February 2, 2019 February 3, 2018 (in thousands) Building improvements $ 86,487 $ 86,487 Furniture, fixtures and equipment, and software 535,256 503,276 Leasehold improvements 444,906 437,323 Construction in process 15,911 19,550 Other 787 811 Total 1,083,347 1,047,447 Less: accumulated depreciation (719,068 ) (642,434 ) Property and equipment, net $ 364,279 $ 405,013 Depreciation expense totaled $88.2 million , $89.8 million , and $81.5 million in 2018, 2017, and 2016 , respectively, excluding impairment charges discussed in Note 14. |
Leased Facilities and Commitmen
Leased Facilities and Commitments | 12 Months Ended |
Feb. 02, 2019 | |
Leases [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: 2018 2017 2016 Store rent: (in thousands) Fixed minimum $ 200,378 $ 208,058 $ 214,696 Contingent 5,165 4,002 4,927 Total store rent 205,543 212,060 219,623 Home office, distribution center, other 7,556 7,468 5,945 Total rent expense $ 213,099 $ 219,528 $ 225,568 As of February 2, 2019 , the Company was committed to noncancelable leases with remaining terms from 1 to 10 years. A substantial portion of these commitments consist of store leases. 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 payment commitments under non-cancelable operating leases are as follows (in thousands): 2019 $ 221,816 2020 189,285 2021 163,748 2022 151,718 2023 135,345 Thereafter 290,790 Total $ 1,152,702 |
Lease Financing Obligations
Lease Financing Obligations | 12 Months Ended |
Feb. 02, 2019 | |
Leases [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 2029. The net book value of landlord funded construction, replacement cost of pre-existing property, and capitalized interest in property and equipment on the Consolidated Balance Sheets was $56.6 million and $60.2 million , as of February 2, 2019 and February 3, 2018 , respectively. There was also $65.1 million and $66.7 million of lease financing obligations as of February 2, 2019 and February 3, 2018 , respectively, in other long-term liabilities on the Consolidated Balance Sheets. Rent expense relating to the land is recognized on a straight-line basis over the lease term. The Company does not report rent expense for the portion of the rent payment determined to be related to the buildings which are owned for accounting purposes. Rather, this portion of rent payment under the lease is recognized as interest expense and a reduction of the lease financing obligations. In February 2016, the Company amended its lease arrangement with the landlord of the Times Square Flagship store. The Company had previously determined it was the owner of the store for accounting purposes based on an assessment of the lease arrangement at inception as described above. The amendment provided the landlord with the option to cancel the lease upon sufficient notice through December 31, 2016. The amendment expired unexercised on December 31, 2016. In conjunction with amending the lease, the Company recognized an $11.4 million put option liability and a related offset as a discount on the lease financing obligation. The discount was amortized over the shortest period under which the landlord was able to exercise this option ( 60 days). This resulted in the full amortization of the $11.4 million discount during the first quarter of 2016. The amortization of the discount was recorded as interest expense. As of February 2, 2019 and February 3, 2018 , the put option was $7.5 million and $8.3 million , respectively, of which $6.7 million and $7.5 million , respectively, are included within other long-term liabilities on the Consolidated Balance Sheets. This amount will be amortized through interest expense over the remaining lease term. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table provides the significant components of intangible assets: February 2, 2019 Cost Accumulated Amortization Ending Net Balance (in thousands) Tradename/domain names/trademarks $ 197,618 $ — $ 197,618 Licensing arrangements 425 319 106 $ 198,043 $ 319 $ 197,724 February 3, 2018 Cost Accumulated Amortization Ending Net Balance (in thousands) Tradename/domain names/trademarks $ 197,618 $ — $ 197,618 Licensing arrangements 425 270 155 $ 198,043 $ 270 $ 197,773 The Company's tradename, Internet domain names, and trademarks have indefinite lives. Licensing arrangements are amortized over a period of ten years and are included in other assets on the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: 2018 2017 2016 Current: (in thousands) U.S. federal $ 7,644 $ 8,415 $ 7,600 U.S. state and local 2,480 1,167 4,721 Foreign — — 814 Total 10,124 9,582 13,135 Deferred: U.S. federal 371 (513 ) 19,828 U.S. state and local 165 909 928 Foreign — — (134 ) Total 536 396 20,622 Provision for income taxes $ 10,660 $ 9,978 $ 33,757 The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: 2018 2017 2016 Federal income tax rate 21.0 % 33.7 % 35.0 % State income taxes, net of federal income tax effect 13.2 % 5.6 % 4.4 % (Benefit)/Expense for uncertain tax positions (1.5 )% (1.0 )% (7.0 )% Share-based compensation 5.5 % 7.8 % 4.0 % Non-deductible executive compensation 13.8 % 6.9 % 0.3 % Excess tax over book basis on investment in Express Canada — % (17.5 )% — % Write-off of Express Canada deferred tax assets — % 15.7 % — % (Decrease)/Increase in valuation allowance 6.3 % (8.4 )% 1.3 % Impact of Tax Cuts and Jobs Act on deferred taxes (1.0 )% (7.1 )% — % Tax credits (5.0 )% (2.3 )% (1.0 )% Other items, net 0.2 % 1.2 % (0.3 )% Effective tax rate 52.5 % 34.6 % 36.7 % The increase in the tax rate in 2018 compared to 2017 is primarily attributable to non-deductible executive compensation due to income tax reform and the CEO transition and the valuation allowance recorded on the equity method investment impairment. The increase in the effective tax rate was partially offset by a lower federal corporate income tax rate in 2018 compared to 2017 due to income tax reform. The decrease in the tax rate in 2017 compared to 2016 is primarily attributable to the exit from Canada and the impact of the U.S. tax law change, discussed further below, partially offset by the impact on the tax rate of the share-based compensation and non-deductible executive compensation. On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted into law. The TCJA impacted the Company through the reduction in the federal corporate income tax rate from 35% to 21% and the one-time re-measurement of the Company's deferred taxes using this new lower tax rate. As a result of the reduction of the federal corporate income tax rate under TCJA, the Company remeasured its net deferred tax liabilities and recorded an income tax benefit of approximately $2.1 million in 2017. The Company completed its assessment of the final impact of the TCJA in November 2018. The following table provides the effect of temporary differences that created deferred income taxes as of February 2, 2019 and February 3, 2018 . 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. February 2, 2019 February 3, 2018 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 12,163 $ 17,774 Rent 20,768 21,110 Lease financing obligations 20,043 20,643 Inventory 5,312 1,195 Deferred revenue 9,920 3,799 Tax credits/carryforwards 239 463 Valuation allowance (2,108 ) (832 ) Total deferred tax assets 66,337 64,152 Deferred tax liabilities: Prepaid expenses 3,967 3,340 Other 701 82 Intangible assets 20,694 17,443 Property and equipment 37,592 39,368 Total deferred tax liabilities 62,954 60,233 Net deferred tax asset $ 3,383 $ 3,919 As a result of the equity method investment impairment, a valuation allowance was established in the current year on the deferred tax asset of the investment in the amount of $2.1 million . 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. The following table summarizes the presentation of the Company’s net deferred tax assets in the Consolidated Balance Sheets: February 2, 2019 February 3, 2018 (in thousands) Deferred tax assets $ 5,442 $ 7,346 Other long-term liabilities (2,059 ) (3,427 ) Net deferred tax assets $ 3,383 $ 3,919 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 is as follows: February 2, 2019 February 3, 2018 January 28, 2017 (in thousands) Unrecognized tax benefits, beginning of year $ 2,398 $ 3,104 $ 9,506 Gross addition for tax positions of the current year 42 118 296 Gross addition for tax positions of the prior year — 30 527 Settlements — (147 ) — Reduction for tax positions of prior years (28 ) (46 ) (23 ) Lapse of statute of limitations (484 ) (661 ) (7,202 ) Unrecognized tax benefits, end of year $ 1,928 $ 2,398 $ 3,104 The amount of the above unrecognized tax benefits as of February 2, 2019 , February 3, 2018 , and January 28, 2017 that would impact the Company's effective tax rate, if recognized, is $1.9 million , $2.4 million , and $3.1 million , respectively. During 2018 and 2017, the Company released gross uncertain tax positions of $0.5 million and $0.7 million, respectively, and the related accrued interest of $0.1 million and $0.2 million, respectively, as a result of the expiration of associated statutes of limitation. 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 Income and Comprehensive Income was less than $0.1 million for 2018, $0.1 million for 2017, and $(0.3) million for 2016. As of February 2, 2019 and February 3, 2018 , the Company had accrued interest of $0.6 million and $0.5 million , respectively. The Company is subject to examination by the IRS for years subsequent to 2014. The Company is also generally subject to examination by various U.S. state and local and non-U.S. tax jurisdictions for the years subsequent to 2013. There are ongoing U.S. state and local audits covering tax years 2010 through 2017. The Company does not expect the results from any income tax audit to have a material impact on the Company’s financial statements. The Company believes that over the next twelve months, it is reasonably possible that up to $0.9 million of unrecognized tax benefits could be resolved as the result of settlements of audits and the expiration of statutes of limitation. Final settlement of these issues may result in payments that are more or less than this amount, but the Company does not anticipate that the resolution of these matters will result in a material change to its consolidated financial position or results of operations. |
Debt
Debt | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of the Company's financing activities are as follows: Revolving Credit Facility On May 20, 2015, Express Holding, a wholly-owned subsidiary, and its subsidiaries entered into an Amended and Restated $250 million secured Asset-Based Credit Facility ("Revolving Credit Facility"). The expiration date of the facility is May 20, 2020. As of February 2, 2019 , there were no borrowings outstanding and approximately $247.0 million available under the Revolving Credit Facility. Under the Revolving Credit Facility, revolving loans may be borrowed, repaid, and reborrowed until May 20, 2020, at which time all amounts borrowed must be repaid. The Revolving Credit Facility allows for a swingline sublimit of up to $30.0 million and for the issuance of letters of credit in the face amount of up to $45.0 million . Borrowings under the Revolving Credit Facility bear interest at a rate equal to either the rate appearing on Reuters Screen LIBOR01 page (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 0.250% 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 and is continuing 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 and is continuing 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's 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, prepayment of other debt, distributions, dividends, the repurchase of capital stock, transactions with affiliates, the ability to change the nature of its business or fiscal year, and permitted business activities. 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, among other assets, substantially all working capital assets, including cash, accounts receivable, and inventory, of Express Holding and its domestic subsidiaries. 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 three weeks after the merchandise shipment date. As of February 2, 2019 and February 3, 2018 , there were no outstanding trade LCs. Additionally, the Company enters into stand-by letters of credit ("stand-by LCs") on an as-needed basis to secure payment obligations for merchandise purchases and other general and administrative expenses. As of February 2, 2019 and February 3, 2018 , outstanding stand-by LCs totaled $3.0 million and $3.3 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchase Programs On November 28, 2017, the Company's Board of Directors ("Board") approved a new share repurchase program that authorizes the Company to repurchase up to $150 million of the Company’s outstanding common stock using available cash (the "2017 Repurchase Program"). The Company may repurchase shares on the open market, including through Rule 10b5-1 plans, in privately negotiated transactions, through block purchases, or otherwise in compliance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and amount of stock repurchases will depend on a variety of factors, including business and market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified, or discontinued at any time and the Company has no obligation to repurchase any amount of its common stock under the program. In 2017, the Company repurchased 2.1 million shares of its common stock under the 2017 Repurchase Program for an aggregate amount equal to $17.3 million , including commissions. In 2018, the Company repurchased 10.0 million shares of its common stock under the 2017 Repurchase Program for an aggregate amount equal to $83.2 million , including commissions. In addition, subsequent to February 2, 2019 , the Company repurchased an additional 0.9 million shares of its common stock under the 2017 Repurchase Program for an aggregate amount equal to $4.9 million , including commissions. On December 9, 2015, the Board approved a share repurchase program which authorized the Company to repurchase up to $100 million of the Company's common stock (the "2015 Repurchase Program"). The 2015 Repurchase Program expired on December 9, 2016, 12 months after its adoption. In total, the Company repurchased 4.9 million shares of its common stock under the 2015 Repurchase Program for an aggregate amount equal to $80.1 million , including commissions. During 2016, the Company repurchased 3.2 million shares of its common stock for a total of $51.5 million including commissions. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 02, 2019 | |
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 authorized 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. On April 30, 2018, upon the recommendation of the Committee, the Board unanimously approved and adopted, subject to stockholder approval, the Express, Inc. 2018 Incentive Compensation Plan (the “2018 Plan”) to replace the 2010 Plan. On June 13, 2018, stockholders of the Company approved the 2018 Plan and all grants made subsequent to that approval will be made under the 2018 Plan. The primary change made by the 2018 Plan was to increase the number of shares of common stock available for equity-based awards by 2.4 million shares. In addition to increasing the number of shares, the Company also made several enhancements to the 2010 Plan to reflect best practices in corporate governance. The 2018 Plan incorporates these concepts and also includes several other enhancements which are practices the Company already follows but were not explicitly stated in the 2010 Plan. None of these changes will have a significant impact on the accounting for awards made under the 2018 Plan. The following summarizes share-based compensation expense: 2018 2017 2016 (in thousands) Restricted stock units and restricted stock $ 10,982 $ 12,050 $ 10,394 Stock options 1,564 1,958 2,464 Performance-based restricted stock units 568 — — Total share-based compensation $ 13,114 $ 14,008 $ 12,858 The stock compensation related income tax benefit recognized by the Company in 2018, 2017, and 2016 was $2.6 million , $2.1 million , and $6.2 million , respectively. Restricted Stock Units During 2018 , the Company granted restricted stock units ("RSUs") under the 2010 Plan and the 2018 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 and 2018 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. Any of the RSUs granted during 2018 that are earned based on the achievement of performance criteria will vest on April 15, 2020. 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 2018 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, February 3, 2018 2,902 $ 11.06 Granted 2,105 $ 7.06 Performance Shares Adjustment (1) (599 ) Vested (1,013 ) $ 13.60 Forfeited (331 ) $ 9.97 Unvested, February 2, 2019 3,064 $ 8.95 (1) Relates to a change in estimate of RSUs with performance conditions granted in 2017 . As of year-end 2018, it is estimated that none of the shares granted in 2017 will vest based on the performance against predefined financial targets to date. The total fair value of RSUs and restricted stock that vested was $13.8 million , $8.5 million , and $14.0 million , during 2018, 2017, and 2016 , respectively. As of February 2, 2019 , there was approximately $19.4 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 1.8 years. Stock Options During 2018 , the Company did no t grant stock options. The expense for stock options is recognized using the straight-line attribution method. The Company's activity with respect to stock options during 2018 was as follows: Number of Shares Grant Date Weighted Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding, February 3, 2018 2,609 $ 16.43 Granted — $ — Exercised — $ — Forfeited or expired (230 ) $ 16.73 Outstanding, February 2, 2019 2,379 $ 16.40 4.7 $ — Expected to vest at February 2, 2019 475 $ 12.37 7.7 $ — Exercisable at February 2, 2019 1,892 $ 17.45 3.9 $ — The following provides additional information regarding the Company's stock options: 2017 2016 (in thousands, except per share amounts) Weighted average grant date fair value of options granted $ 4.35 $ 9.32 Total intrinsic value of options exercised $ — $ 547 As of February 2, 2019 , there was approximately $0.8 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.4 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 following are the weighted-average assumptions used in the determination of the fair value of the Company's stock options: 2017 2016 Risk-free interest rate (1) 2.27 % 1.62 % Price Volatility (2) 45.58 % 43.23 % Expected term (years) (3) 6.10 6.52 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) Primarily based on the historical volatility of the Company's common stock over a period consistent with the expected term of the stock options. (3) The Company calculated the expected term assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data for outstanding options. The Company believes this data currently represents the best estimate of the expected term of new employee options. (4) The Company does not currently plan on paying regular dividends. Performance-based Restricted Stock Units In the first quarter of 2018, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company’s common stock upon vesting. The number of shares earned could range between 0% and 200% of the target amount depending upon performance achieved over the three year vesting period. The performance conditions of the award include adjusted diluted earnings per share (EPS) targets and total shareholder return (TSR) of the Company’s common stock relative to a select group of peer companies. A Monte Carlo valuation model was used to determine the fair value of the awards. The TSR performance metric is a market condition. Therefore, fair value of the awards is fixed at the measurement date and is not revised based on actual performance. The number of shares that will ultimately vest will change based on estimates of the Company’s adjusted EPS performance in relation to the pre-established targets. The 2018 target grant currently corresponds to approximately 0.5 million shares, with a grant date fair value of $7.54 per share. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 02, 2019 | |
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: 2018 2017 2016 (in thousands) Weighted-average shares - basic 72,518 78,592 78,669 Dilutive effect of stock options, restricted stock units, and restricted stock 721 278 380 Weighted-average shares - diluted 73,239 78,870 79,049 Equity awards representing 3.4 million , 3.8 million , and 3.7 million shares of common stock were excluded from the computation of diluted earnings per share for 2018, 2017, and 2016 , respectively, as the inclusion of these awards would have been anti-dilutive. Additionally, for 2018 , 1.5 million shares were 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 February 2, 2019 . |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Feb. 02, 2019 | |
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”) 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 lesser of 15% of their compensation or the maximum limits allowable under the Internal Revenue Code ("IRC"). The Company matches employee contributions according to a pre-determined formula. Employee contributions and Company matching contributions vest immediately. Total expense recognized related to the Qualified Plan employer match was $4.1 million , $4.0 million , and $3.8 million in 2018, 2017, and 2016 , respectively. In addition to the Qualified Plan, participation in a non-qualified supplemental retirement plan (the "Non-Qualified Plan") was previously made available to employees who met certain age, service, job level, and compensation requirements. The Non-Qualified Plan was an unfunded plan which provided benefits beyond the IRC limits for qualified defined contribution plans. In the first quarter of 2017, the Company elected to terminate the Non-Qualified Plan effective March 31, 2017. Outstanding participant balances were distributed via lump sum in the first quarter of 2018 in the amount of $25.6 million . The Company had no further liability under the non-qualified plan as of February 2, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In a complaint filed in January 2017 by Mr. Jorge Chacon in the Superior Court for the State of California for the County of Orange, certain subsidiaries of the Company were named as defendants in a representative action alleging violations of California state wage and hour statutes and other labor standards. In a complaint filed in December 2017 by Mr. Robert Jaurigue in the Superior Court for the State of California for the County of Los Angeles, a subsidiary of the Company was named as a defendant in a representative action alleging violations of California state wage and hour statutes and other labor standards. Both lawsuits seek unspecified monetary damages and attorneys’ fees. The case filed by Mr. Jaurigue was settled in principle on January 8, 2019. In July 2018, former associate Ms. Christie Carr filed suit in Alameda County Superior Court for the State of California naming certain subsidiaries of the Company in a representative action alleging violations of California State wage and hour statutes and other labor standards. The lawsuit seeks unspecified monetary damages and attorneys’ fees. On January 28, 2019, Jorge Chacon filed a second representative action in the Superior Court for the State of California for the County of Orange alleging violations of California state wages and hour statutes and other labor standards. The lawsuit seeks unspecified monetary damages and attorneys' fees. The Company is vigorously defending itself against these claims and, as of February 2, 2019 , has established an estimated liability based on its best estimate of the outcome of the matters. The Company is subject to various other 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. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Feb. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In April of 2017, Express made the decision to close all 17 of its retail stores in Canada and discontinue all operations through its Canadian subsidiary, Express Fashion Apparel Canada Inc. ("Express Canada"). In connection with the plan to close all of its Canadian stores, on May 4, 2017, certain of Express, Inc.’s Canadian subsidiaries filed an application with the Ontario Superior Court of Justice (Commercial List) in Toronto (the "Court") seeking protection for Express, Inc.’s Canadian subsidiaries under the Companies’ Creditors Arrangement Act in Canada (the "Filing") and the appointment of a monitor to oversee the liquidation and wind-down process. Express Canada began conducting store closing liquidation sales in the middle of May and closed all of its Canadian stores in June of 2017. On September 27, 2017, a Joint Plan of Compromise and Arrangement (the “Plan”) which sets forth the amounts to be distributed to creditors and others in connection with the liquidation of Express Canada was sanctioned and approved by the Court and the creditors of Express Canada. The Plan is complete and all creditor distributions under the Plan have been made. Asset Impairment As a result of the decision to close the Canadian stores, Express determined that it was more likely than not that the fixed assets associated with the Canadian stores would be sold or otherwise disposed of prior to the end of their useful lives and therefore evaluated these assets for impairment in the first quarter of 2017. As a result of this evaluation, the Company recognized an impairment charge of $5.5 million on the fixed assets in the first quarter of 2017, which is included in restructuring costs in the Consolidated Statements of Income and Comprehensive Income. Exit Costs During 2017, in addition to the impairment charges noted above, the Company incurred a $6.4 million write off of the investment in Express Canada, $5.5 million in lease related accruals, $4.2 million related to the reclassification into earnings of the cumulative translation loss, and approximately $1.3 million in professional fees. During the third quarter of 2018, the Company incurred $0.2 million in lease related expenses. See Note 7 for the income tax impact of the discontinuation of Canadian operations. In addition in 2017, the Company incurred a cash loss in the amount of $9.2 million . This amount reflected the cash and cash equivalents balance held by Express Canada at the time of deconsolidation and is a component of the write-off of the investment in Express Canada. A $1.2 million lease related accrual as of February 3, 2018 was settled during the third quarter of 2018, at which time an additional expense of $0.2 million was recognized. The Company does not expect to incur significant additional restructuring costs and does not have any remaining liabilities related to the Canada exit. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized unaudited quarterly financial results for 2018 and 2017 follows: 2018 Quarter First Second Third Fourth (in thousands, except per share amounts) Net sales $ 479,352 $ 493,605 $ 514,961 $ 628,426 Gross profit $ 143,162 $ 140,403 $ 158,149 $ 173,197 Net income/(loss) $ 517 $ 2,234 $ 7,967 $ (1,088 ) Earnings per basic share $ 0.01 $ 0.03 $ 0.11 $ (0.02 ) Earnings per diluted share $ 0.01 $ 0.03 $ 0.11 $ (0.02 ) 2017 Quarter First Second Third Fourth (in thousands, except per share amounts) Net sales $ 474,192 $ 481,209 $ 503,419 $ 699,682 Gross profit $ 132,281 $ 133,757 $ 151,192 $ 210,281 Net income $ (2,668 ) $ (11,891 ) $ 6,031 $ 27,401 Earnings per basic share $ (0.03 ) $ (0.15 ) $ 0.08 $ 0.35 Earnings per diluted share $ (0.03 ) $ (0.15 ) $ 0.08 $ 0.35 2017 results have been adjusted for the adoption of ASC 606. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | 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. |
Basis of Presentation | 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. 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. until it was acquired by Golden Gate Capital in 2007. |
Principles of Consolidation | 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. |
Segment Reporting | Segment Reporting The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The Company has determined that, its interim Chief Executive Officer and interim President is 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. |
Use of Estimates in the Preparation of Financial Statements | 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 revenue and expense 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements - Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” ASU 2016-02 requires entities to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. Under ASU 2016-02, a lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on its balance sheet. The new standard is effective for annual and interim periods beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018-11, “Leases: Targeted Improvements,” as an amendment to ASU 2016-02, which provides entities with an additional transition method to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt the new leasing standard in the first quarter of 2019. Upon adoption, the Company will provide expanded disclosures in the consolidated financial statements and expects to recognize right of use assets and lease liabilities of approximately $1.1 billion to $1.4 billion . The Company does not anticipate the standard having a material impact on the income statement, however it continues to evaluate this potential impact and the internal control implications. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”). ASC 606 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 in the first quarter of fiscal 2018 under the full retrospective method, which required the adjustment of each prior period presented. The primary impact of ASC 606 relates to the accounting for points earned under the Company’s customer loyalty program, the timing of revenue recognition for e-commerce sales, and the classification on the income statement of funds received and certain costs incurred related to our private label credit card program. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include investments in money market funds, commercial paper with a maturity at the time of purchase of less than 90 days, payments due from banks for third-party credit and debit card transactions for up to five days of sales, cash on hand, and deposits with financial institutions. |
Fair Value Measurements | The money market funds are valued using quoted market prices in active markets. The commercial paper is valued using other observable inputs for those securities based on information provided by an independent third party entity. 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. The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables, prepaid expenses, and payables as of February 2, 2019 and February 3, 2018 approximated their fair values. 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 | Receivables, Net Receivables, net consist primarily of construction allowances, receivables from the Bank related to the Card Agreement, our franchisees, and third-party resellers of our gift cards, and other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability. |
Inventories | Inventories Inventories are principally valued at the lower of cost or net realizable value 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 net realizable value adjustment to inventory as of February 2, 2019 and February 3, 2018 was $16.0 million and $12.1 million , respectively. The Company also records an inventory shrink reserve for estimated merchandise inventory losses between the last physical inventory count and the balance sheet date. This estimate is based on management's analysis of historical results. |
Advertising | Advertising Advertising production costs are expensed at the time the promotion first appears in media, stores, or on the website. Total advertising expense totaled $123.1 million , $112.8 million , and $113.2 million in 2018, 2017, and 2016 , respectively. Advertising costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. |
Property and Equipment, Net | 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 2018 , as a result of decreased performance in certain stores, the Company recognized impairment charges of $0.8 million related to 3 stores. In 2017 , the Company recognized impairment charges of $4.4 million related to 12 stores. In addition, during 2017 , the Company recognized $5.5 million related to its 17 Canadian stores, all of which were fully impaired and are now closed. In 2016 , the Company recognized impairment charges of $5.1 million related to 11 stores. With the exception of the Canadian impairment, impairment charges are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. The Canadian impairment was recorded in restructuring costs in the Consolidated Statements of Income and Comprehensive Income. |
Intangible Assets | 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 quantitative and/or 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. |
Investment in Equity Interests | Investment in Equity Interests In 2016, the Company made a $10.1 million investment in Homage, LLC, a privately held retail company based in Columbus, Ohio. The non-controlling investment in the entity is being accounted for under the equity method. Under the terms of the agreement governing the investment, the Company's investment was increased by $0.5 million during 2017 and 2018 as the result of an accrual of a non-cash preferred yield. This investment is assessed for impairment whenever factors indicate an other than temporary loss in value. Factors providing evidence of such a loss include the fair value of an investment that is less than its carrying value, absence of an ability to recover the carrying value or the investee’s inability to generate income sufficient to justify the carrying value. As a result of this assessment in 2018, the Company determined the carrying value exceeded the fair value and recognized an $8.4 million impairment charge in 2018 within other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. The remaining $2.7 million investment, inclusive of the $1.0 million preferred yield, is included in other assets on the Consolidated Balance Sheets. The fair value of the equity method investment was determined based on applying income and market approaches. The income approach relied on the discounted cash flow method and the market approach relied on a market multiple approach considering historical and projected financial results. |
Lease and Landlord Allowances | Leases and Landlord Allowances 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 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 a deferred lease credit 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. |
Income Taxes | 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. On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted into law. See Note 7 for further discussion of the TCJA. 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 other long-term liabilities on the Consolidated Balance Sheets. The income tax liability was $8.2 million and $9.3 million as of February 2, 2019 and February 3, 2018 , respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The income tax receivable was $1.5 million and $1.8 million as of February 2, 2019 and February 3, 2018 , respectively, and is included in other current assets 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 | 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 | Foreign Currency Translation The Canadian dollar was the functional currency for the Company's Canadian business, prior to the deconsolidation of the Canadian subsidiary. See Note 14 for additional information. 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 (income) expense, 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. |
Revenue Recognition | Revenue Recognition The following is information regarding the Company's major product and sales channels: 2018 2017 2016 (in thousands) Apparel $ 1,828,836 $ 1,873,376 $ 1,916,891 Accessories and other 222,611 228,317 236,194 Other revenue 64,897 56,809 51,332 Total net sales $ 2,116,344 $ 2,158,502 $ 2,204,417 2018 2017 2016 (in thousands) Stores $ 1,442,601 $ 1,592,222 $ 1,740,160 E-commerce 608,846 509,471 412,925 Other revenue 64,897 56,809 51,332 Total net sales $ 2,116,344 $ 2,158,502 $ 2,204,417 E-commerce sales processed through the stores are included in e-commerce revenue. Merchandise returns are reflected in the accounting records of the channel where they are physically returned. Other revenue consists primarily of sell-off revenue related to mark-out-of-stock inventory sales to third parties, shipping and handling revenue related to e-commerce activity, revenue earned from the Card Agreement, revenue from gift card breakage, and revenue from franchise agreements. Revenues and long-lived assets relating to the Company's international operations for 2018, 2017, and 2016 , respectively, were not material and, therefore, not reported separately from domestic revenues and long-lived assets. Merchandise Sales The Company recognizes sales for in-store purchases at the point-of-sale. Revenue related to e-commerce transactions is recognized upon shipment based on the fact that control transfers to the customer at that time. The Company has made a policy election to treat shipping and handling as costs to fulfill the contract, and as a result any amounts received from customers included in the transaction price are allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income for amounts paid to applicable carriers. Associate discounts on merchandise purchases are classified as a reduction of net sales. Net sales excludes 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 merchandise and/or royalties. Revenues from merchandise 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. Loyalty Program The Company maintains a customer loyalty program in which customers earn points toward rewards for qualifying purchases and other marketing activities. Upon reaching specified point values, customers are issued a reward, which they may redeem on merchandise purchased at the Company’s stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company defers a portion of merchandise sales based on the estimated standalone selling price of the points earned. This deferred revenue is recognized as certificates are redeemed or expire. To calculate this deferral, the Company makes assumptions related to card holder redemption rates based on historical experience. The loyalty liability is included in deferred revenue on the Consolidated Balance Sheets. 2018 2017 (in thousands) Beginning balance loyalty deferred revenue $ 14,186 $ 15,662 Reduction in revenue/(revenue recognized) 1,133 (1,476 ) Ending balance loyalty deferred revenue $ 15,319 $ 14,186 Sales Returns Reserve The Company reduces net sales and 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 $9.9 million and $10.6 million as of February 2, 2019 and February 3, 2018 , respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The asset related to projected returned merchandise is included in other assets on the Consolidated Balance Sheets. Gift Cards 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 $25.1 million , and $26.7 million as of February 2, 2019 and February 3, 2018 , 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, referred to as "gift card breakage." Gift card breakage 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. The gift card breakage rate is based on historical redemption patterns. Gift card breakage is included in net sales in the Consolidated Statements of Income and Comprehensive Income. 2018 2017 (in thousands) Beginning gift card liability $ 26,737 $ 27,498 Issuances 46,977 49,526 Redemptions (45,076 ) (46,943 ) Gift card breakage (3,505 ) (3,344 ) Ending gift card liability $ 25,133 $ 26,737 Private Label Credit Card The Company's Card Agreement was amended on August 28, 2017 to extend the term of the arrangement through December 31, 2024. Each private label credit card bears the logo of the Express brand and can only be used at the Company’s store locations and e-commerce channel. The Bank 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 amounts from the Bank during the term based on a percentage of private label credit card sales, and is also eligible to receive incentive payments for the achievement of certain performance targets. These funds are recorded as net sales in the Consolidated Statements of Income and Comprehensive Income. The Company also receives reimbursement funds from the Bank for expenses the Company incurs. These reimbursement funds are used by the Company to fund marketing and other programs associated with the private label credit card. The reimbursement funds received related to these private label credit cards are recorded as net sales in the Consolidated Statements of Income and Comprehensive Income. In connection with the Card Agreement, the Bank agreed to pay the Company a $20.0 million refundable payment which the Company recognized upon receipt as deferred revenue within other long-term liabilities in the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January of calendar year 2018. The remaining deferred revenue balance of $17.0 million will be recognized over the term of the amended Card Agreement within the other revenue component of net sales. In addition, the Company received $7.1 million in non-refundable payments during 2017 which were recognized in the other revenue component of net sales on the Consolidated Statements of Income and Comprehensive Income with the related expenses classified as cost of goods sold, buying and occupancy. 2018 2017 (in thousands) Beginning balance refundable payment liability $ 19,906 $ 347 Refundable Payment Received — 20,000 Recognized in revenue (2,878 ) (441 ) Ending balance refundable payment liability $ 17,028 $ 19,906 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, e-commerce fulfillment, rent, common area maintenance, real estate taxes, utilities, maintenance, and depreciation for stores. |
Selling, General and Administrative Expenses | 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 |
Other Operating Expense, Net | Other Operating Expense, Net Other operating income, net primarily consists of gains/losses on disposal of assets and excess proceeds from the settlement of insurance claims. |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net primarily consists of currency transaction gains/losses and activity related to our equity method investment in Homage. |
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. |
Share-Based Compensation | 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. 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. 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 and 2018 Plan. |
Retirement Benefits | Retirement Benefits The employees of the Company, if eligible, participate in a qualified defined contribution retirement plan (the “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 lesser of 15% of their compensation or the maximum limits allowable under the Internal Revenue Code ("IRC"). The Company matches employee contributions according to a pre-determined formula. Employee contributions and Company matching contributions vest immediately. Total expense recognized related to the Qualified Plan employer match was $4.1 million , $4.0 million , and $3.8 million in 2018, 2017, and 2016 , respectively. In addition to the Qualified Plan, participation in a non-qualified supplemental retirement plan (the "Non-Qualified Plan") was previously made available to employees who met certain age, service, job level, and compensation requirements. The Non-Qualified Plan was an unfunded plan which provided benefits beyond the IRC limits for qualified defined contribution plans. |
Description of Business and B_2
Description of Business and Basis of Presentation (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Description of Business and Basis of Presentation [Abstract] | |
Schedule of Effect of New Accounting Pronouncements | The impact of the adoption of ASC 606 on previously issued financial statements included in this report are as follows: CONSOLIDATED BALANCE SHEET (in thousands except per share amounts) February 3, 2018 ASSETS As Reported Adjustments for adoption of ASC 606 As Adjusted CURRENT ASSETS: Cash and cash equivalents $ 236,222 $ — $ 236,222 Receivables, net 12,084 — 12,084 Inventories 266,271 (5,543 ) 260,728 Prepaid minimum rent 30,779 — 30,779 Other 19,780 4,539 24,319 Total current assets 565,136 (1,004 ) 564,132 PROPERTY AND EQUIPMENT 1,047,447 — 1,047,447 Less: accumulated depreciation (642,434 ) — (642,434 ) Property and equipment, net 405,013 — 405,013 TRADENAME/DOMAIN NAMES/TRADEMARKS 197,618 — 197,618 DEFERRED TAX ASSETS 7,025 321 7,346 OTHER ASSETS 12,815 — 12,815 Total assets $ 1,187,607 $ (683 ) $ 1,186,924 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 145,589 $ — $ 145,589 Deferred revenue 28,920 12,320 41,240 Accrued expenses 116,355 (5,792 ) 110,563 Total current liabilities 290,864 6,528 297,392 DEFERRED LEASE CREDITS 137,618 — 137,618 OTHER LONG-TERM LIABILITIES 105,125 (1,525 ) 103,600 Total liabilities 533,607 5,003 538,610 STOCKHOLDERS’ EQUITY: Common stock 926 — 926 Additional paid-in capital 199,099 — 199,099 Retained earnings 710,081 (5,686 ) 704,395 Treasury stock (256,106 ) — (256,106 ) Total stockholders’ equity 654,000 (5,686 ) 648,314 Total liabilities and stockholders’ equity $ 1,187,607 $ (683 ) $ 1,186,924 CONSOLIDATED STATEMENTS OF INCOME Fifty-Three Weeks Ended February 3, 2018 (in thousands, except per share amounts) As Reported Adjustments for adoption of ASC 606 As Adjusted NET SALES $ 2,138,030 $ 20,472 $ 2,158,502 COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS 1,522,797 8,194 1,530,991 Gross profit 615,233 12,278 627,511 OPERATING EXPENSES: Selling, general and administrative expenses 562,088 11,462 573,550 Restructuring costs 22,869 — 22,869 Other operating expense, net 536 — 536 Total operating expenses 585,493 11,462 596,955 OPERATING INCOME/(LOSS) 29,740 816 30,556 INTEREST EXPENSE, NET 2,242 — 2,242 OTHER INCOME, NET (537 ) — (537 ) INCOME/(LOSS) BEFORE INCOME TAXES 28,035 816 28,851 INCOME TAX (BENEFIT) EXPENSE 8,669 1,309 9,978 NET INCOME/(LOSS) $ 19,366 $ (493 ) $ 18,873 EARNINGS PER SHARE: Basic $ 0.25 $ (0.01 ) $ 0.24 Diluted $ 0.25 $ (0.01 ) $ 0.24 CONSOLIDATED STATEMENTS OF INCOME Fifty-Two Weeks Ended January 28, 2017 (in thousands, except per share amounts) As Reported Adjustments for adoption of ASC 606 As Adjusted NET SALES $ 2,192,547 $ 11,870 $ 2,204,417 COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS 1,529,343 385 1,529,728 Gross profit 663,204 11,485 674,689 OPERATING EXPENSES: Selling, general and administrative expenses 559,541 10,005 569,546 Restructuring costs — — — Other operating expense, net 62 — 62 Total operating expenses 559,603 10,005 569,608 OPERATING INCOME/(LOSS) 103,601 1,480 105,081 INTEREST EXPENSE, NET 13,468 — 13,468 OTHER INCOME, NET (484 ) — (484 ) INCOME/(LOSS) BEFORE INCOME TAXES 90,617 1,480 92,097 INCOME TAX (BENEFIT) EXPENSE 33,200 557 33,757 NET INCOME/(LOSS) $ 57,417 $ 923 $ 58,340 EARNINGS PER SHARE: Basic $ 0.73 $ 0.01 $ 0.74 Diluted $ 0.73 $ 0.01 $ 0.74 CONSOLIDATED STATEMENT OF CASH FLOWS Fifty-Three Weeks Ended February 3, 2018 (in thousands) As Reported Adjustments for adoption of ASC 606 As Adjusted CASH FLOWS FROM OPERATING ACTIVITIES: Net income/(loss) $ 19,366 $ (493 ) $ 18,873 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Depreciation and amortization 90,221 — 90,221 Loss on disposal of property and equipment 2,891 — 2,891 Impairment charge 9,850 — 9,850 Loss on deconsolidation of Canada 10,672 — 10,672 Share-based compensation 14,008 — 14,008 Deferred taxes (912 ) 1,308 396 Landlord allowance amortization (13,183 ) — (13,183 ) Other non-cash adjustments (500 ) — (500 ) Changes in operating assets and liabilities: Receivables, net 3,279 — 3,279 Inventories (28,954 ) 675 (28,279 ) Accounts payable, deferred revenue, and accrued expenses (12,862 ) (1,304 ) (14,166 ) Other assets and liabilities 24,691 (186 ) 24,505 Net cash provided by operating activities 118,567 — 118,567 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (57,435 ) — (57,435 ) Decrease in cash and cash equivalents resulting from deconsolidation of Canada (9,232 ) — (9,232 ) Net cash used in investing activities (66,667 ) — (66,667 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on lease financing obligations (1,710 ) — (1,710 ) Repayments of financing arrangements (2,040 ) — (2,040 ) Repurchase of common stock under share repurchase program (17,264 ) — (17,264 ) Repurchase of common stock for tax withholding obligations (1,599 ) — (1,599 ) Net cash used in financing activities (22,613 ) — (22,613 ) EFFECT OF EXCHANGE RATE ON CASH (438 ) — (438 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 28,849 — 28,849 CASH AND CASH EQUIVALENTS, Beginning of period 207,373 — 207,373 CASH AND CASH EQUIVALENTS, End of period $ 236,222 $ — $ 236,222 CONSOLIDATED STATEMENT OF CASH FLOWS Fifty-Two Weeks Ended January 28, 2017 (in thousands) As Reported Adjustments for adoption of ASC 606 As Adjusted CASH FLOWS FROM OPERATING ACTIVITIES: Net income/(loss) $ 57,417 $ 923 $ 58,340 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Depreciation and amortization 82,144 — 82,144 Loss on disposal of property and equipment 942 — 942 Impairment charge 5,108 — 5,108 Amortization of lease financing obligation 11,354 — 11,354 Share-based compensation 12,858 — 12,858 Deferred taxes 20,065 557 20,622 Landlord allowance amortization (11,280 ) — (11,280 ) Changes in operating assets and liabilities: Receivables, net 6,371 — 6,371 Inventories 14,144 4,153 18,297 Accounts payable, deferred revenue, and accrued expenses (15,857 ) (1,281 ) (17,138 ) Other assets and liabilities 3,442 (4,352 ) (910 ) Net cash provided by operating activities 186,708 — 186,708 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (98,712 ) — (98,712 ) Decrease in cash and cash equivalents resulting from deconsolidation of Canada — — — Purchase of intangible assets (21 ) — (21 ) Investment in equity interests (10,133 ) — (10,133 ) Net cash used in investing activities (108,866 ) — (108,866 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on lease financing obligations (1,595 ) — (1,595 ) Repayments of financing arrangements (3,274 ) — (3,274 ) Proceeds from exercise of stock options 2,735 — 2,735 Repurchase of common stock under share repurchase program (51,538 ) — (51,538 ) Repurchase of common stock for tax withholding obligations (4,599 ) — (4,599 ) Net cash used in financing activities (58,271 ) — (58,271 ) EFFECT OF EXCHANGE RATE ON CASH 899 — 899 NET DECREASE IN CASH AND CASH EQUIVALENTS 20,470 — 20,470 CASH AND CASH EQUIVALENTS, Beginning of period 186,903 — 186,903 CASH AND CASH EQUIVALENTS, End of period $ 207,373 $ — $ 207,373 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets, Measured on Recurring Basis | The following table presents the Company's financial assets measured at fair value on a recurring basis as of February 2, 2019 and February 3, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall. February 2, 2019 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 155,014 $ — $ — February 3, 2018 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 139,920 $ — $ — Commercial Paper — 79,908 — $ 139,920 $ 79,908 $ — |
Schedule of Depreciable Lives | 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 by Major Product Categories and Sales Channels | The following is information regarding the Company's major product and sales channels: 2018 2017 2016 (in thousands) Apparel $ 1,828,836 $ 1,873,376 $ 1,916,891 Accessories and other 222,611 228,317 236,194 Other revenue 64,897 56,809 51,332 Total net sales $ 2,116,344 $ 2,158,502 $ 2,204,417 2018 2017 2016 (in thousands) Stores $ 1,442,601 $ 1,592,222 $ 1,740,160 E-commerce 608,846 509,471 412,925 Other revenue 64,897 56,809 51,332 Total net sales $ 2,116,344 $ 2,158,502 $ 2,204,417 |
Schedule of Contract with Customer, Liability | 2018 2017 (in thousands) Beginning gift card liability $ 26,737 $ 27,498 Issuances 46,977 49,526 Redemptions (45,076 ) (46,943 ) Gift card breakage (3,505 ) (3,344 ) Ending gift card liability $ 25,133 $ 26,737 2018 2017 (in thousands) Beginning balance loyalty deferred revenue $ 14,186 $ 15,662 Reduction in revenue/(revenue recognized) 1,133 (1,476 ) Ending balance loyalty deferred revenue $ 15,319 $ 14,186 2018 2017 (in thousands) Beginning balance refundable payment liability $ 19,906 $ 347 Refundable Payment Received — 20,000 Recognized in revenue (2,878 ) (441 ) Ending balance refundable payment liability $ 17,028 $ 19,906 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of: February 2, 2019 February 3, 2018 (in thousands) Building improvements $ 86,487 $ 86,487 Furniture, fixtures and equipment, and software 535,256 503,276 Leasehold improvements 444,906 437,323 Construction in process 15,911 19,550 Other 787 811 Total 1,083,347 1,047,447 Less: accumulated depreciation (719,068 ) (642,434 ) Property and equipment, net $ 364,279 $ 405,013 |
Leased Facilities and Commitm_2
Leased Facilities and Commitments (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense is summarized as follows: 2018 2017 2016 Store rent: (in thousands) Fixed minimum $ 200,378 $ 208,058 $ 214,696 Contingent 5,165 4,002 4,927 Total store rent 205,543 212,060 219,623 Home office, distribution center, other 7,556 7,468 5,945 Total rent expense $ 213,099 $ 219,528 $ 225,568 |
Schedule of Minimum Rent Payment Commitments under Non-Cancelable Operating Leases | Minimum rent payment commitments under non-cancelable operating leases are as follows (in thousands): 2019 $ 221,816 2020 189,285 2021 163,748 2022 151,718 2023 135,345 Thereafter 290,790 Total $ 1,152,702 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table provides the significant components of intangible assets: February 2, 2019 Cost Accumulated Amortization Ending Net Balance (in thousands) Tradename/domain names/trademarks $ 197,618 $ — $ 197,618 Licensing arrangements 425 319 106 $ 198,043 $ 319 $ 197,724 February 3, 2018 Cost Accumulated Amortization Ending Net Balance (in thousands) Tradename/domain names/trademarks $ 197,618 $ — $ 197,618 Licensing arrangements 425 270 155 $ 198,043 $ 270 $ 197,773 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: 2018 2017 2016 Current: (in thousands) U.S. federal $ 7,644 $ 8,415 $ 7,600 U.S. state and local 2,480 1,167 4,721 Foreign — — 814 Total 10,124 9,582 13,135 Deferred: U.S. federal 371 (513 ) 19,828 U.S. state and local 165 909 928 Foreign — — (134 ) Total 536 396 20,622 Provision for income taxes $ 10,660 $ 9,978 $ 33,757 |
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: 2018 2017 2016 Federal income tax rate 21.0 % 33.7 % 35.0 % State income taxes, net of federal income tax effect 13.2 % 5.6 % 4.4 % (Benefit)/Expense for uncertain tax positions (1.5 )% (1.0 )% (7.0 )% Share-based compensation 5.5 % 7.8 % 4.0 % Non-deductible executive compensation 13.8 % 6.9 % 0.3 % Excess tax over book basis on investment in Express Canada — % (17.5 )% — % Write-off of Express Canada deferred tax assets — % 15.7 % — % (Decrease)/Increase in valuation allowance 6.3 % (8.4 )% 1.3 % Impact of Tax Cuts and Jobs Act on deferred taxes (1.0 )% (7.1 )% — % Tax credits (5.0 )% (2.3 )% (1.0 )% Other items, net 0.2 % 1.2 % (0.3 )% Effective tax rate 52.5 % 34.6 % 36.7 % |
Schedule of Deferred Tax Assets and Liabilities | The following table provides the effect of temporary differences that created deferred income taxes as of February 2, 2019 and February 3, 2018 . 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. February 2, 2019 February 3, 2018 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 12,163 $ 17,774 Rent 20,768 21,110 Lease financing obligations 20,043 20,643 Inventory 5,312 1,195 Deferred revenue 9,920 3,799 Tax credits/carryforwards 239 463 Valuation allowance (2,108 ) (832 ) Total deferred tax assets 66,337 64,152 Deferred tax liabilities: Prepaid expenses 3,967 3,340 Other 701 82 Intangible assets 20,694 17,443 Property and equipment 37,592 39,368 Total deferred tax liabilities 62,954 60,233 Net deferred tax asset $ 3,383 $ 3,919 |
Deferred Tax Assets, Net Classification | The following table summarizes the presentation of the Company’s net deferred tax assets in the Consolidated Balance Sheets: February 2, 2019 February 3, 2018 (in thousands) Deferred tax assets $ 5,442 $ 7,346 Other long-term liabilities (2,059 ) (3,427 ) Net deferred tax assets $ 3,383 $ 3,919 |
Unrecognized Tax Benefits Rollforward | A reconciliation of the beginning to ending unrecognized tax benefits is as follows: February 2, 2019 February 3, 2018 January 28, 2017 (in thousands) Unrecognized tax benefits, beginning of year $ 2,398 $ 3,104 $ 9,506 Gross addition for tax positions of the current year 42 118 296 Gross addition for tax positions of the prior year — 30 527 Settlements — (147 ) — Reduction for tax positions of prior years (28 ) (46 ) (23 ) Lapse of statute of limitations (484 ) (661 ) (7,202 ) Unrecognized tax benefits, end of year $ 1,928 $ 2,398 $ 3,104 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Shared-based Compensation Expense | The following summarizes share-based compensation expense: 2018 2017 2016 (in thousands) Restricted stock units and restricted stock $ 10,982 $ 12,050 $ 10,394 Stock options 1,564 1,958 2,464 Performance-based restricted stock units 568 — — Total share-based compensation $ 13,114 $ 14,008 $ 12,858 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The Company's activity with respect to RSUs and restricted stock, including awards with performance conditions, for 2018 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, February 3, 2018 2,902 $ 11.06 Granted 2,105 $ 7.06 Performance Shares Adjustment (1) (599 ) Vested (1,013 ) $ 13.60 Forfeited (331 ) $ 9.97 Unvested, February 2, 2019 3,064 $ 8.95 (1) Relates to a change in estimate of RSUs with performance conditions granted in 2017 . As of year-end 2018, it is estimated that none of the shares granted in 2017 will vest based on the performance against predefined financial targets to date. |
Schedule of Stock Options Activity | The Company's activity with respect to stock options during 2018 was as follows: Number of Shares Grant Date Weighted Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding, February 3, 2018 2,609 $ 16.43 Granted — $ — Exercised — $ — Forfeited or expired (230 ) $ 16.73 Outstanding, February 2, 2019 2,379 $ 16.40 4.7 $ — Expected to vest at February 2, 2019 475 $ 12.37 7.7 $ — Exercisable at February 2, 2019 1,892 $ 17.45 3.9 $ — |
Supplemental Stock Options Information | The following provides additional information regarding the Company's stock options: 2017 2016 (in thousands, except per share amounts) Weighted average grant date fair value of options granted $ 4.35 $ 9.32 Total intrinsic value of options exercised $ — $ 547 |
Schedule of Weighted-Average Assumptions, Stock Options | The following are the weighted-average assumptions used in the determination of the fair value of the Company's stock options: 2017 2016 Risk-free interest rate (1) 2.27 % 1.62 % Price Volatility (2) 45.58 % 43.23 % Expected term (years) (3) 6.10 6.52 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) Primarily based on the historical volatility of the Company's common stock over a period consistent with the expected term of the stock options. (3) The Company calculated the expected term assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data for outstanding options. The Company believes this data currently represents the best estimate of the expected term of new employee options. (4) The Company does not currently plan on paying regular dividends. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Weighted-Average Shares | The following table provides a reconciliation between basic and diluted weighted-average shares used to calculate basic and diluted earnings per share: 2018 2017 2016 (in thousands) Weighted-average shares - basic 72,518 78,592 78,669 Dilutive effect of stock options, restricted stock units, and restricted stock 721 278 380 Weighted-average shares - diluted 73,239 78,870 79,049 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized unaudited quarterly financial results for 2018 and 2017 follows: 2018 Quarter First Second Third Fourth (in thousands, except per share amounts) Net sales $ 479,352 $ 493,605 $ 514,961 $ 628,426 Gross profit $ 143,162 $ 140,403 $ 158,149 $ 173,197 Net income/(loss) $ 517 $ 2,234 $ 7,967 $ (1,088 ) Earnings per basic share $ 0.01 $ 0.03 $ 0.11 $ (0.02 ) Earnings per diluted share $ 0.01 $ 0.03 $ 0.11 $ (0.02 ) 2017 Quarter First Second Third Fourth (in thousands, except per share amounts) Net sales $ 474,192 $ 481,209 $ 503,419 $ 699,682 Gross profit $ 132,281 $ 133,757 $ 151,192 $ 210,281 Net income $ (2,668 ) $ (11,891 ) $ 6,031 $ 27,401 Earnings per basic share $ (0.03 ) $ (0.15 ) $ 0.08 $ 0.35 Earnings per diluted share $ (0.03 ) $ (0.15 ) $ 0.08 $ 0.35 2017 results have been adjusted for the adoption of ASC 606. |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) $ in Thousands | May 04, 2017subsidiary | Feb. 02, 2019USD ($)store | Feb. 02, 2019USD ($)segmentstore | Apr. 27, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 31, 2016USD ($) |
Description of Business and Basis of Presentation [Line Items] | ||||||
Number of stores under franchise agreements | store | 16 | 16 | ||||
Number of subsidiaries under the companies creditors arrangement act | subsidiary | 1 | |||||
Severance costs | $ 5,400 | |||||
Number of operating segments | segment | 1 | |||||
Reduction to retained earnings | $ (713,864) | $ (713,864) | $ (704,395) | |||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Description of Business and Basis of Presentation [Line Items] | ||||||
Reduction to retained earnings | $ 5,686 | $ 6,100 | ||||
Retail [Member] | ||||||
Description of Business and Basis of Presentation [Line Items] | ||||||
Number of stores | store | 447 | 447 | ||||
Outlet [Member] | ||||||
Description of Business and Basis of Presentation [Line Items] | ||||||
Number of stores | store | 184 | 184 | ||||
Minimum [Member] | Scenario, Forecast [Member] | Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
Description of Business and Basis of Presentation [Line Items] | ||||||
Operating lease, right-of-use asset | $ 1,100,000 | |||||
Operating lease, liability | 1,100,000 | |||||
Maximum [Member] | Scenario, Forecast [Member] | Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
Description of Business and Basis of Presentation [Line Items] | ||||||
Operating lease, right-of-use asset | 1,400,000 | |||||
Operating lease, liability | $ 1,400,000 |
Description of Business and B_4
Description of Business and Basis of Presentation - Impact of ASC 606 on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 31, 2016 | Jan. 30, 2016 |
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ 171,670 | $ 236,222 | $ 207,373 | $ 186,903 | |
Receivables, net | 17,369 | 12,084 | |||
Inventories | 267,766 | 260,728 | |||
Prepaid minimum rent | 30,047 | 30,779 | |||
Other | 25,176 | 24,319 | |||
Total current assets | 512,028 | 564,132 | |||
PROPERTY AND EQUIPMENT | 1,083,347 | 1,047,447 | |||
Less: accumulated depreciation | (719,068) | (642,434) | |||
Property and equipment, net | 364,279 | 405,013 | |||
TRADENAME/DOMAIN NAMES/TRADEMARKS | 197,618 | 197,618 | |||
DEFERRED TAX ASSETS | 5,442 | 7,346 | |||
OTHER ASSETS | 7,260 | 12,815 | |||
Total assets | 1,086,627 | 1,186,924 | |||
CURRENT LIABILITIES: | |||||
Accounts payable | 155,913 | 145,589 | |||
Deferred revenue | 40,466 | 41,240 | |||
Accrued expenses | 78,313 | 110,563 | |||
Total current liabilities | 274,692 | 297,392 | |||
DEFERRED LEASE CREDITS | 129,505 | 137,618 | |||
OTHER LONG-TERM LIABILITIES | 97,252 | 103,600 | |||
Total liabilities | 501,449 | 538,610 | |||
STOCKHOLDERS’ EQUITY: | |||||
Common stock | 936 | 926 | |||
Additional paid-in capital | 211,981 | 199,099 | |||
Retained earnings | 713,864 | 704,395 | |||
Treasury stock | (341,603) | (256,106) | |||
Total stockholders’ equity | 585,178 | 648,314 | 630,494 | 617,953 | |
Total liabilities and stockholders’ equity | $ 1,086,627 | 1,186,924 | |||
Previously Reported [Member] | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 236,222 | 207,373 | 186,903 | ||
Receivables, net | 12,084 | ||||
Inventories | 266,271 | ||||
Prepaid minimum rent | 30,779 | ||||
Other | 19,780 | ||||
Total current assets | 565,136 | ||||
PROPERTY AND EQUIPMENT | 1,047,447 | ||||
Less: accumulated depreciation | (642,434) | ||||
Property and equipment, net | 405,013 | ||||
TRADENAME/DOMAIN NAMES/TRADEMARKS | 197,618 | ||||
DEFERRED TAX ASSETS | 7,025 | ||||
OTHER ASSETS | 12,815 | ||||
Total assets | 1,187,607 | ||||
CURRENT LIABILITIES: | |||||
Accounts payable | 145,589 | ||||
Deferred revenue | 28,920 | ||||
Accrued expenses | 116,355 | ||||
Total current liabilities | 290,864 | ||||
DEFERRED LEASE CREDITS | 137,618 | ||||
OTHER LONG-TERM LIABILITIES | 105,125 | ||||
Total liabilities | 533,607 | ||||
STOCKHOLDERS’ EQUITY: | |||||
Common stock | 926 | ||||
Additional paid-in capital | 199,099 | ||||
Retained earnings | 710,081 | ||||
Treasury stock | (256,106) | ||||
Total stockholders’ equity | 654,000 | ||||
Total liabilities and stockholders’ equity | 1,187,607 | ||||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 0 | $ 0 | $ 0 | ||
Receivables, net | 0 | ||||
Inventories | (5,543) | ||||
Prepaid minimum rent | 0 | ||||
Other | 4,539 | ||||
Total current assets | (1,004) | ||||
PROPERTY AND EQUIPMENT | 0 | ||||
Less: accumulated depreciation | 0 | ||||
Property and equipment, net | 0 | ||||
TRADENAME/DOMAIN NAMES/TRADEMARKS | 0 | ||||
DEFERRED TAX ASSETS | 321 | ||||
OTHER ASSETS | 0 | ||||
Total assets | (683) | ||||
CURRENT LIABILITIES: | |||||
Accounts payable | 0 | ||||
Deferred revenue | 12,320 | ||||
Accrued expenses | (5,792) | ||||
Total current liabilities | 6,528 | ||||
DEFERRED LEASE CREDITS | 0 | ||||
OTHER LONG-TERM LIABILITIES | (1,525) | ||||
Total liabilities | 5,003 | ||||
STOCKHOLDERS’ EQUITY: | |||||
Common stock | 0 | ||||
Additional paid-in capital | 0 | ||||
Retained earnings | (5,686) | $ (6,100) | |||
Treasury stock | 0 | ||||
Total stockholders’ equity | (5,686) | ||||
Total liabilities and stockholders’ equity | $ (683) |
Description of Business and B_5
Description of Business and Basis of Presentation - Impact of ASC 606 on Consolidated Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
NET SALES | $ 628,426 | $ 514,961 | $ 493,605 | $ 479,352 | $ 699,682 | $ 503,419 | $ 481,209 | $ 474,192 | $ 2,116,344 | $ 2,158,502 | $ 2,204,417 |
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS | 1,501,433 | 1,530,991 | 1,529,728 | ||||||||
Gross profit | 173,197 | 158,149 | 140,403 | 143,162 | 210,281 | 151,192 | 133,757 | 132,281 | 614,911 | 627,511 | 674,689 |
OPERATING EXPENSES: | |||||||||||
Selling, general, and administrative expenses | 587,348 | 573,550 | 569,546 | ||||||||
Restructuring costs | 166 | 22,869 | 0 | ||||||||
Other operating expense, net | (818) | 536 | 62 | ||||||||
Total operating expenses | 586,696 | 596,955 | 569,608 | ||||||||
OPERATING INCOME | 28,215 | 30,556 | 105,081 | ||||||||
INTEREST EXPENSE, NET | 25 | 2,242 | 13,468 | ||||||||
OTHER INCOME, NET | 7,900 | (537) | (484) | ||||||||
INCOME BEFORE INCOME TAXES | 20,290 | 28,851 | 92,097 | ||||||||
INCOME TAX (BENEFIT) EXPENSE | 10,660 | 9,978 | 33,757 | ||||||||
NET INCOME | $ (1,088) | $ 7,967 | $ 2,234 | $ 517 | $ 27,401 | $ 6,031 | $ (11,891) | $ (2,668) | $ 9,630 | $ 18,873 | $ 58,340 |
EARNINGS PER SHARE: | |||||||||||
Basic (usd per share) | $ (0.02) | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.35 | $ 0.08 | $ (0.15) | $ (0.03) | $ 0.13 | $ 0.24 | $ 0.74 |
Diluted (usd per share) | $ (0.02) | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.35 | $ 0.08 | $ (0.15) | $ (0.03) | $ 0.13 | $ 0.24 | $ 0.74 |
Previously Reported [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
NET SALES | $ 2,138,030 | $ 2,192,547 | |||||||||
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS | 1,522,797 | 1,529,343 | |||||||||
Gross profit | 615,233 | 663,204 | |||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general, and administrative expenses | 562,088 | 559,541 | |||||||||
Restructuring costs | 22,869 | 0 | |||||||||
Other operating expense, net | 536 | 62 | |||||||||
Total operating expenses | 585,493 | 559,603 | |||||||||
OPERATING INCOME | 29,740 | 103,601 | |||||||||
INTEREST EXPENSE, NET | 2,242 | 13,468 | |||||||||
OTHER INCOME, NET | (537) | (484) | |||||||||
INCOME BEFORE INCOME TAXES | 28,035 | 90,617 | |||||||||
INCOME TAX (BENEFIT) EXPENSE | 8,669 | 33,200 | |||||||||
NET INCOME | $ 19,366 | $ 57,417 | |||||||||
EARNINGS PER SHARE: | |||||||||||
Basic (usd per share) | $ 0.25 | $ 0.73 | |||||||||
Diluted (usd per share) | $ 0.25 | $ 0.73 | |||||||||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
NET SALES | $ 20,472 | $ 11,870 | |||||||||
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS | 8,194 | 385 | |||||||||
Gross profit | 12,278 | 11,485 | |||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general, and administrative expenses | 11,462 | 10,005 | |||||||||
Restructuring costs | 0 | 0 | |||||||||
Other operating expense, net | 0 | 0 | |||||||||
Total operating expenses | 11,462 | 10,005 | |||||||||
OPERATING INCOME | 816 | 1,480 | |||||||||
INTEREST EXPENSE, NET | 0 | 0 | |||||||||
OTHER INCOME, NET | 0 | 0 | |||||||||
INCOME BEFORE INCOME TAXES | 816 | 1,480 | |||||||||
INCOME TAX (BENEFIT) EXPENSE | 1,309 | 557 | |||||||||
NET INCOME | $ (493) | $ 923 | |||||||||
EARNINGS PER SHARE: | |||||||||||
Basic (usd per share) | $ (0.01) | $ 0.01 | |||||||||
Diluted (usd per share) | $ (0.01) | $ 0.01 |
Description of Business and B_6
Description of Business and Basis of Presentation - Impact of ASC 606 on Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Apr. 30, 2016 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ (1,088) | $ 7,967 | $ 2,234 | $ 517 | $ 27,401 | $ 6,031 | $ (11,891) | $ (2,668) | $ 9,630 | $ 18,873 | $ 58,340 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 85,853 | 90,221 | 82,144 | |||||||||
Loss on disposal of property and equipment | 368 | 2,891 | 942 | |||||||||
Impairment charge | 5,500 | 818 | 9,850 | 5,108 | ||||||||
Amortization of lease financing obligation discount | $ 11,400 | 0 | 0 | 11,354 | ||||||||
Loss on deconsolidation of Canada | 0 | 10,672 | 0 | |||||||||
Share-based compensation | 13,114 | 14,008 | 12,858 | |||||||||
Deferred taxes | 536 | 396 | 20,622 | |||||||||
Landlord allowance amortization | (11,606) | (13,183) | (11,280) | |||||||||
Other non-cash adjustments | (500) | (500) | 0 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables, net | (5,284) | 3,279 | 6,371 | |||||||||
Inventories | (7,038) | (28,279) | 18,297 | |||||||||
Accounts payable, deferred revenue, and accrued expenses | (21,097) | (14,166) | (17,138) | |||||||||
Other assets and liabilities | 523 | 24,505 | (910) | |||||||||
Net cash provided by operating activities | 73,717 | 118,567 | 186,708 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Capital expenditures | (49,778) | (57,435) | (98,712) | |||||||||
Decrease in cash and cash equivalents resulting from deconsolidation of Canada | 0 | (9,232) | 0 | |||||||||
Purchase of intangible assets | 0 | 0 | (21) | |||||||||
Investment in equity interests | 0 | 0 | (10,133) | |||||||||
Net cash used in investing activities | (49,778) | (66,667) | (108,866) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Payments on lease financing obligations | (1,860) | (1,710) | (1,595) | |||||||||
Repayments of financing arrangements | (750) | (2,040) | (3,274) | |||||||||
Proceeds from exercise of stock options | 0 | 0 | 2,735 | |||||||||
Repurchase of common stock under share repurchase programs (see Note 9) | (83,172) | (17,264) | (51,538) | |||||||||
Repurchase of common stock for tax withholding obligations | (2,709) | (1,599) | (4,599) | |||||||||
Net cash used in financing activities | (88,491) | (22,613) | (58,271) | |||||||||
EFFECT OF EXCHANGE RATE ON CASH | 0 | (438) | 899 | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (64,552) | 28,849 | 20,470 | |||||||||
CASH AND CASH EQUIVALENTS, Beginning of period | 236,222 | 207,373 | 186,903 | 236,222 | 207,373 | 186,903 | ||||||
CASH AND CASH EQUIVALENTS, End of period | $ 171,670 | 236,222 | 171,670 | 236,222 | 207,373 | |||||||
Previously Reported [Member] | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | 19,366 | 57,417 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 90,221 | 82,144 | ||||||||||
Loss on disposal of property and equipment | 2,891 | 942 | ||||||||||
Impairment charge | 9,850 | 5,108 | ||||||||||
Amortization of lease financing obligation discount | 11,354 | |||||||||||
Loss on deconsolidation of Canada | 10,672 | |||||||||||
Share-based compensation | 14,008 | 12,858 | ||||||||||
Deferred taxes | (912) | 20,065 | ||||||||||
Landlord allowance amortization | (13,183) | (11,280) | ||||||||||
Other non-cash adjustments | (500) | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables, net | 3,279 | 6,371 | ||||||||||
Inventories | (28,954) | 14,144 | ||||||||||
Accounts payable, deferred revenue, and accrued expenses | (12,862) | (15,857) | ||||||||||
Other assets and liabilities | 24,691 | 3,442 | ||||||||||
Net cash provided by operating activities | 118,567 | 186,708 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Capital expenditures | (57,435) | (98,712) | ||||||||||
Decrease in cash and cash equivalents resulting from deconsolidation of Canada | (9,232) | 0 | ||||||||||
Purchase of intangible assets | (21) | |||||||||||
Investment in equity interests | (10,133) | |||||||||||
Net cash used in investing activities | (66,667) | (108,866) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Payments on lease financing obligations | (1,710) | (1,595) | ||||||||||
Repayments of financing arrangements | (2,040) | (3,274) | ||||||||||
Proceeds from exercise of stock options | 2,735 | |||||||||||
Repurchase of common stock under share repurchase programs (see Note 9) | (17,264) | (51,538) | ||||||||||
Repurchase of common stock for tax withholding obligations | (1,599) | (4,599) | ||||||||||
Net cash used in financing activities | (22,613) | (58,271) | ||||||||||
EFFECT OF EXCHANGE RATE ON CASH | (438) | 899 | ||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 28,849 | 20,470 | ||||||||||
CASH AND CASH EQUIVALENTS, Beginning of period | 236,222 | 207,373 | 186,903 | 236,222 | 207,373 | 186,903 | ||||||
CASH AND CASH EQUIVALENTS, End of period | 236,222 | 236,222 | 207,373 | |||||||||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | (493) | 923 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 0 | 0 | ||||||||||
Loss on disposal of property and equipment | 0 | 0 | ||||||||||
Impairment charge | 0 | 0 | ||||||||||
Amortization of lease financing obligation discount | 0 | |||||||||||
Loss on deconsolidation of Canada | 0 | |||||||||||
Share-based compensation | 0 | 0 | ||||||||||
Deferred taxes | 1,308 | 557 | ||||||||||
Landlord allowance amortization | 0 | 0 | ||||||||||
Other non-cash adjustments | 0 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables, net | 0 | 0 | ||||||||||
Inventories | 675 | 4,153 | ||||||||||
Accounts payable, deferred revenue, and accrued expenses | (1,304) | (1,281) | ||||||||||
Other assets and liabilities | (186) | (4,352) | ||||||||||
Net cash provided by operating activities | 0 | 0 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Capital expenditures | 0 | 0 | ||||||||||
Decrease in cash and cash equivalents resulting from deconsolidation of Canada | 0 | 0 | ||||||||||
Purchase of intangible assets | 0 | |||||||||||
Investment in equity interests | 0 | |||||||||||
Net cash used in investing activities | 0 | 0 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Payments on lease financing obligations | 0 | 0 | ||||||||||
Repayments of financing arrangements | 0 | 0 | ||||||||||
Proceeds from exercise of stock options | 0 | |||||||||||
Repurchase of common stock under share repurchase programs (see Note 9) | 0 | 0 | ||||||||||
Repurchase of common stock for tax withholding obligations | 0 | 0 | ||||||||||
Net cash used in financing activities | 0 | 0 | ||||||||||
EFFECT OF EXCHANGE RATE ON CASH | 0 | 0 | ||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | ||||||||||
CASH AND CASH EQUIVALENTS, Beginning of period | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||||
CASH AND CASH EQUIVALENTS, End of period | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | ||
Payments due from banks for third-party credit and debit card transactions | 5 days | |
Amounts due from banks for credit and debit card transactions | $ 12.5 | $ 11.3 |
Outstanding checks not yet presented for payment | $ 8 | $ 9.1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 139,920 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 79,908 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 155,014 | 139,920 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 | 0 |
Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 79,908 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Accounting Policies [Abstract] | ||
Lower of cost or market adjustment to inventory | $ 16 | $ 12.1 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 123.1 | $ 112.8 | $ 113.2 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 29, 2017store | Apr. 29, 2017USD ($) | Feb. 02, 2019USD ($)store | Feb. 03, 2018USD ($)store | Jan. 28, 2017USD ($)store | |
Property, Plant and Equipment [Line Items] | |||||
Impairment charge | $ | $ 5,500 | $ 818 | $ 9,850 | $ 5,108 | |
Number of stores impaired during the period | store | 3 | ||||
Number of stores closed | store | 17 | 17 | |||
Software, including Software Developed For Internal [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 3 years | ||||
Software, including Software Developed For Internal [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 7 years | ||||
Store Related Assets and Other Property and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 3 years | ||||
Store Related Assets and Other Property and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 10 years | ||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 7 years | ||||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 15 years | ||||
Impairment charge | $ | $ 4,400 | $ 5,100 | |||
Number of stores impaired during the period | store | 12 | 11 | |||
Building Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 6 years | ||||
Building Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 30 years | ||||
CANADA | Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment charge | $ | $ 5,500 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Accounting Policies [Abstract] | |||
Impairment charges on indefinite lived intangible assets | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Investment in Equity Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Accounting Policies [Abstract] | |||
Investment in Homage, LLC | $ 2,700 | $ 10,100 | |
Increase in equity method investment during period | 500 | $ 500 | |
Equity method investment impairment | 8,400 | $ 0 | $ 0 |
Equity method investment preferred yield | $ 1,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Accounting Policies [Abstract] | ||
Income tax liability | $ 8.2 | $ 9.3 |
Income taxes receivable, current | $ 1.5 | $ 1.8 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Revenue Recognition and Loyalty Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 628,426 | $ 514,961 | $ 493,605 | $ 479,352 | $ 699,682 | $ 503,419 | $ 481,209 | $ 474,192 | $ 2,116,344 | $ 2,158,502 | $ 2,204,417 |
Redemption period for rewards earned | 60 days | ||||||||||
Contract With Customer, Liability [Roll Forward] | |||||||||||
Beginning balance | 41,240 | $ 41,240 | |||||||||
Ending balance | 40,466 | 41,240 | 40,466 | 41,240 | |||||||
Apparel [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,828,836 | 1,873,376 | 1,916,891 | ||||||||
Accessories And Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 222,611 | 228,317 | 236,194 | ||||||||
Other Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 64,897 | 56,809 | 51,332 | ||||||||
Stores [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,442,601 | 1,592,222 | 1,740,160 | ||||||||
E-commerce [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 608,846 | 509,471 | 412,925 | ||||||||
Loyalty Program [Member] | |||||||||||
Contract With Customer, Liability [Roll Forward] | |||||||||||
Beginning balance | $ 14,186 | $ 15,662 | 14,186 | 15,662 | |||||||
Reduction in revenue/(revenue recognized) | 1,133 | (1,476) | |||||||||
Ending balance | $ 15,319 | $ 14,186 | $ 15,319 | $ 14,186 | $ 15,662 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Sales Returns Reserve and Gift Cards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Sales returns reserve | $ 9,900 | $ 10,600 |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 41,240 | |
Ending balance | 40,466 | 41,240 |
Gift Card Liability [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 26,737 | 27,498 |
Ending balance | 25,133 | 26,737 |
Gift Card Issuances [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | 46,977 | 49,526 |
Gift Card Redemptions [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | (45,076) | (46,943) |
Gift Card Breakage [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | $ (3,505) | $ (3,344) |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Private Label Credit Card - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Aug. 28, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Net sales | $ 628,426 | $ 514,961 | $ 493,605 | $ 479,352 | $ 699,682 | $ 503,419 | $ 481,209 | $ 474,192 | $ 2,116,344 | $ 2,158,502 | $ 2,204,417 | |
Comenity Bank [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Deferred revenue | $ 17,028 | 19,906 | $ 17,028 | 19,906 | $ 347 | |||||||
Comenity Bank [Member] | Credit Card [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Deferred revenue | $ 17,000 | 17,000 | $ 20,000 | |||||||||
Net sales | $ 7,100 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Private Label Credit Card (Details) - Comenity Bank [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Beginning balance refundable payment liability | $ 19,906 | $ 347 |
Recognized in revenue | (2,878) | (441) |
Ending balance refundable payment liability | 17,028 | 19,906 |
Credit Card [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Beginning balance refundable payment liability | 17,000 | |
Refundable Payment Received | $ 0 | 20,000 |
Ending balance refundable payment liability | $ 17,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,083,347 | $ 1,047,447 | |
Less: accumulated depreciation | (719,068) | (642,434) | |
Property and equipment, net | 364,279 | 405,013 | |
Depreciation | 88,200 | 89,800 | $ 81,500 |
Building improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 86,487 | 86,487 | |
Furniture, fixtures and equipment, and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 535,256 | 503,276 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 444,906 | 437,323 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 15,911 | 19,550 | |
Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 787 | $ 811 |
Leased Facilities and Commitm_3
Leased Facilities and Commitments - Schedule of Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Leases [Abstract] | |||
Fixed minimum | $ 200,378 | $ 208,058 | $ 214,696 |
Contingent | 5,165 | 4,002 | 4,927 |
Total store rent | 205,543 | 212,060 | 219,623 |
Home office, distribution center, other | 7,556 | 7,468 | 5,945 |
Total rent expense | $ 213,099 | $ 219,528 | $ 225,568 |
Leased Facilities and Commitm_4
Leased Facilities and Commitments - Schedule of Future Minimum Rent Commitments (Details) $ in Thousands | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Operating Leased Assets [Line Items] | |
2019 | $ 221,816 |
2020 | 189,285 |
2021 | 163,748 |
2022 | 151,718 |
2023 | 135,345 |
Thereafter | 290,790 |
Total | $ 1,152,702 |
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 | 10 years |
Lease Financing Obligations (De
Lease Financing Obligations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Apr. 30, 2016 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Leases [Abstract] | |||||
Landlord funded construction, replacement cost of pre-existing property, and capitalized interest | $ 56,600 | $ 60,200 | |||
Lease financing obligations | 65,100 | 66,700 | |||
Operating Leased Assets [Line Items] | |||||
Put option liability | $ 11,400 | 7,500 | 8,300 | ||
Shortest period for landlord to exercise option | 60 days | ||||
Full amortization of discount | $ 11,400 | 0 | 0 | $ 11,354 | |
Other Noncurrent Liabilities [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Put option liability | $ 6,700 | $ 7,500 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ 319 | $ 270 |
Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 197,618 | 197,618 |
Cost | 198,043 | 198,043 |
Ending Net Balance | 197,724 | 197,773 |
Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 197,618 | 197,618 |
Licensing arrangements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 425 | 425 |
Accumulated Amortization | 319 | 270 |
Ending Net Balance | $ 106 | $ 155 |
Finite-lived intangible assets, useful life | 10 years |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current: | |||
U.S. federal | $ 7,644 | $ 8,415 | $ 7,600 |
U.S. state and local | 2,480 | 1,167 | 4,721 |
Foreign | 0 | 0 | 814 |
Total | 10,124 | 9,582 | 13,135 |
Deferred: | |||
U.S. federal | 371 | (513) | 19,828 |
U.S. state and local | 165 | 909 | 928 |
Foreign | 0 | 0 | (134) |
Total | 536 | 396 | 20,622 |
Provision for income taxes | $ 10,660 | $ 9,978 | $ 33,757 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 33.70% | 35.00% |
State income taxes, net of federal income tax effect | 13.20% | 5.60% | 4.40% |
(Benefit)/Expense for uncertain tax positions | (1.50%) | (1.00%) | (7.00%) |
Share-based compensation | 5.50% | 7.80% | 4.00% |
Non-deductible executive compensation | 13.80% | 6.90% | 0.30% |
Excess tax over book basis on investment in Express Canada | 0.00% | (17.50%) | 0.00% |
Write-off of Express Canada deferred tax assets | 0.00% | 15.70% | 0.00% |
(Decrease)/Increase in valuation allowance | 6.30% | (8.40%) | 1.30% |
Impact of Tax Cuts and Jobs Act on deferred taxes | (1.00%) | (7.10%) | 0.00% |
Tax credits | (5.00%) | (2.30%) | (1.00%) |
Other items, net | 0.20% | 1.20% | (0.30%) |
Effective tax rate | 52.50% | 34.60% | 36.70% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Tax cuts and jobs act, income tax benefit | $ 2,100 | ||
Deferred tax assets, valuation allowance | $ 2,108 | 832 | |
Unrecognized tax benefits that would impact effective tax rate | 1,900 | 2,400 | $ 3,100 |
Net interest in tax expense related to interest and penalties | 100 | 100 | $ (300) |
Accrued interest on unrecognized benefits | 600 | 500 | |
Resolution of federal and state tax examinations could reduce the Company's unrecognized tax benefits | 900 | ||
IRS [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Uncertain tax positions | 500 | 700 | |
Interest accrued | $ 100 | $ 200 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets: | ||
Accrued expenses and deferred compensation | $ 12,163 | $ 17,774 |
Rent | 20,768 | 21,110 |
Lease financing obligations | 20,043 | 20,643 |
Inventory | 5,312 | 1,195 |
Deferred revenue | 9,920 | 3,799 |
Tax credits/carryforwards | 239 | 463 |
Valuation allowance | (2,108) | (832) |
Total deferred tax assets | 66,337 | 64,152 |
Deferred tax liabilities: | ||
Prepaid expenses | 3,967 | 3,340 |
Other | 701 | 82 |
Intangible assets | 20,694 | 17,443 |
Property and equipment | 37,592 | 39,368 |
Total deferred tax liabilities | 62,954 | 60,233 |
Net deferred tax asset | $ 3,383 | $ 3,919 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 5,442 | $ 7,346 |
Other long-term liabilities | (2,059) | (3,427) |
Net deferred tax asset | $ 3,383 | $ 3,919 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 2,398 | $ 3,104 | $ 9,506 |
Gross addition for tax positions of the current year | 42 | 118 | 296 |
Gross addition for tax positions of the prior year | 0 | 30 | 527 |
Settlements | 0 | (147) | 0 |
Reduction for tax positions of prior years | (28) | (46) | (23) |
Lapse of statute of limitations | (484) | (661) | (7,202) |
Unrecognized tax benefits, end of year | $ 1,928 | $ 2,398 | $ 3,104 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Line of Credit [Member] | May 20, 2015USD ($) | Feb. 02, 2019USD ($) |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Amount outstanding | $ 0 | |
Remaining borrowing capacity | $ 247,000,000 | |
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 percentage margin for Eurodollar rate-based advances | 1.50% | |
Maximum percentage margin for Eurodollar rate-based advances | 2.00% | |
Commitment fee percentage | 0.25% | |
Percent of borrowing base restriction (less than) | 12.50% | |
Number of days in excess availability restriction | 5 days | |
Fixed charge ratio, numerator | 1 | |
Fixed charge ratio, denominator | 1 | |
Percent of borrowing base in fixed charge coverage ratio restriction | 10.00% | |
Number of days in fixed charge coverage ratio restriction | 15 days |
Debt - Letters of Credit (Detai
Debt - Letters of Credit (Details) - Letter of Credit [Member] - USD ($) | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Trade LCs [Member] | ||
Debt Instrument [Line Items] | ||
Expiration term for trade letters of credit | 21 days | |
Letters of credit outstanding | $ 0 | $ 0 |
Stand-By LCs [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 3,000,000 | $ 3,300,000 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Programs (Details) - USD ($) shares in Millions | 2 Months Ended | 12 Months Ended | |||||
Mar. 19, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Dec. 09, 2016 | Nov. 28, 2017 | Dec. 09, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Treasury stock, value, acquired | $ 85,881,000 | $ 18,863,000 | $ 56,137,000 | ||||
2017 Share Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 150,000,000 | ||||||
Treasury stock, acquired (in shares) | 10 | 2.1 | |||||
Treasury stock, value, acquired | $ 83,200,000 | $ 17,300,000 | |||||
2015 Share Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||||
Treasury stock, acquired (in shares) | 3.2 | 4.9 | |||||
Treasury stock, value, acquired | $ 51,500,000 | $ 80,100,000 | |||||
Stock repurchase program, period in force | 12 months | ||||||
Subsequent Event [Member] | 2017 Share Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Treasury stock, acquired (in shares) | 0.9 | ||||||
Treasury stock, value, acquired | $ 4,900,000 |
Share-Based Compensation - Cost
Share-Based Compensation - Cost by Award Type (Details) - USD ($) $ in Thousands, shares in Millions | Jun. 13, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in shares available for equity-based awards (in shares) | 2.4 | |||
Share-based compensation | $ 13,114 | $ 14,008 | $ 12,858 | |
Tax benefit from share-based compensation expense | 2,600 | 2,100 | 6,200 | |
Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 10,982 | 12,050 | 10,394 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 1,564 | 1,958 | 2,464 | |
Performance-based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 568 | $ 0 | $ 0 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 05, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Performance-based Restricted Stock Units [Member] | ||||
Restricted Stock and Restricted Stock Units [Line Items] | ||||
Award vesting period | 3 years | |||
Number of Shares | ||||
Awards Granted (in shares) | 500,000 | |||
Grant Date Weighted Average Fair Value | ||||
Awards, grant date weighted average fair value, shares granted (usd per share) | $ 7.54 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Restricted Stock and Restricted Stock Units [Line Items] | ||||
Award vesting period | 4 years | |||
Restricted Stock and Restricted Stock Units [Member] | ||||
Number of Shares | ||||
Awards Unvested at beginning of period (in shares) | 2,902,000 | 2,902,000 | ||
Awards Granted (in shares) | 2,105,000 | |||
Performance Shares Adjustment (in shares) | (599,000) | |||
Awards Vested (in shares) | (1,013,000) | |||
Awards Forfeited (in shares) | (331,000) | |||
Awards Unvested at end of period (in shares) | 3,064,000 | 2,902,000 | ||
Grant Date Weighted Average Fair Value | ||||
Awards, grant date weighted average fair value at beginning of period (usd per share) | $ 11.06 | $ 11.06 | ||
Awards, grant date weighted average fair value, shares granted (usd per share) | 7.06 | |||
Awards, grant date weighted average fair value, change in performance shares adjustment (usd per share) | ||||
Awards, grant date weighted average fair value, shares vested (usd per share) | 13.60 | |||
Awards, grant date weighted average fair value, shares forfeited (usd per share) | 9.97 | |||
Awards, grant date weighted average fair value at end of period (usd per share) | $ 8.95 | $ 11.06 | ||
Prior period grants, vesting in current period (in shares) | 0 | |||
Fair value of options vested | $ 13.8 | $ 8.5 | $ 14 | |
Unrecognized share-based compensation expense | $ 19.4 | |||
Weighted-average period | 1 year 10 months | |||
2010 Plan and 2018 Plan [Member] | Performance-based Restricted Stock Units [Member] | ||||
Number of Shares | ||||
Awards Granted (in shares) | 500,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Number of Shares | |||
Stock Options Outstanding at beginning of period (in shares) | 2,609,000 | ||
Stock Options Granted (in shares) | 0 | ||
Stock Options Exercised (in shares) | 0 | ||
Stock Options Forfeited or expired (in shares) | (230,000) | ||
Stock Options Outstanding at end of period (in shares) | 2,379,000 | 2,609,000 | |
Stock Options Expected to vest at end of period (in shares) | 475,000 | ||
Stock Options Exercisable at end of period (in shares) | 1,892,000 | ||
Grant Date Weighted Average Exercise Price | |||
Grant Date Weighted Average Exercise Price of Options Outstanding at beginning of period (usd per share) | $ 16.43 | ||
Grant Date Weighted Average Exercise Price of Options Granted (usd per share) | 0 | ||
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) | 16.73 | ||
Grant Date Weighted Average Exercise Price of Options Outstanding at end of period (usd per share) | 16.40 | $ 16.43 | |
Grant Date Weighted Average Exercise Price of Options Expected to vest at end of period (usd per share) | 12.37 | ||
Grant Date Weighted Average Exercise Price of Options Exercisable at end of period (usd per share) | $ 17.45 | ||
Weighted-Average Remaining Contractual Life (in years) | |||
Weighted Average Remaining Contractual Life of Options Outstanding | 4 years 8 months | ||
Weighted Average Remaining Contractual Life of Options Expected to vest at end of period | 7 years 8 months | ||
Weighted Average Remaining Contractual Life of Options Exercisable at end of period | 3 years 11 months | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value of Options Outstanding at end of period | $ 0 | ||
Aggregate Intrinsic Value of Options Expected to vest at end of period | 0 | ||
Aggregate Intrinsic Value of Options Exercisable at end of period | $ 0 | ||
Company's Stock Options | |||
Weighted average grant date fair value of options granted (usd per share) | $ 4.35 | $ 9.32 | |
Total intrinsic value of options exercised | $ 0 | $ 547 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense and Period for Recognition (Details) - Stock Options [Member] $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Unrecognized Compensation Expense and Period for Recognition [Line Items] | |
Unrecognized share-based compensation expense | $ 0.8 |
Period for recognition | 1 year 5 months |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted-Average Assumptions (Details) - Stock Option [Member] | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.27% | 1.62% |
Price volatility | 45.58% | 43.23% |
Expected term | 6 years 1 month 6 days | 6 years 6 months 8 days |
Dividend yield | 0.00% | 0.00% |
Share-Based Compensation - Perf
Share-Based Compensation - Performance-based Restricted Stock Units (Details) - Performance-based Restricted Stock Units [Member] - $ / shares shares in Millions | 3 Months Ended | 12 Months Ended |
May 05, 2018 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Granted (in shares) | 0.5 | |
Awards, grant date weighted average fair value, shares granted (usd per share) | $ 7.54 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target percentage of performance-based restricted stock units which can be earned | 0.00% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target percentage of performance-based restricted stock units which can be earned | 200.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average shares - basic | 72,518 | 78,592 | 78,669 |
Dilutive effect of stock options, restricted stock units, and restricted stock (in shares) | 721 | 278 | 380 |
Weighted-average shares - diluted | 73,239 | 78,870 | 79,049 |
Potentially dilutive securities (in shares) | 3,400 | 3,800 | 3,700 |
Performance-based Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 1,500 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 05, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Retirement Benefits [Abstract] | ||||
Employee contributions percentage (up to) | 15.00% | |||
Employer match | $ 4.1 | $ 4 | $ 3.8 | |
Outstanding participant balances paid | $ 25.6 |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 29, 2017store | Apr. 29, 2017USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($)store | Jan. 28, 2017USD ($) | Nov. 03, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Number of stores closed | store | 17 | 17 | ||||
Impairment charge | $ 5,500 | $ 818 | $ 9,850 | $ 5,108 | ||
Cash loss | $ 0 | 9,232 | $ 0 | |||
Lease related accrual | 1,200 | $ 200 | ||||
Write Off Of Investment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 6,400 | |||||
Contract Termination [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 5,500 | |||||
Foreign Currency Translation Loss [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 4,200 | |||||
Professional Fees [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,300 | |||||
Lease Expenses [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | $ 200 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 628,426 | $ 514,961 | $ 493,605 | $ 479,352 | $ 699,682 | $ 503,419 | $ 481,209 | $ 474,192 | $ 2,116,344 | $ 2,158,502 | $ 2,204,417 |
Gross profit | 173,197 | 158,149 | 140,403 | 143,162 | 210,281 | 151,192 | 133,757 | 132,281 | 614,911 | 627,511 | 674,689 |
Net income/(loss) | $ (1,088) | $ 7,967 | $ 2,234 | $ 517 | $ 27,401 | $ 6,031 | $ (11,891) | $ (2,668) | $ 9,630 | $ 18,873 | $ 58,340 |
Earnings per basic share (usd per share) | $ (0.02) | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.35 | $ 0.08 | $ (0.15) | $ (0.03) | $ 0.13 | $ 0.24 | $ 0.74 |
Earnings per diluted share (usd per share) | $ (0.02) | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.35 | $ 0.08 | $ (0.15) | $ (0.03) | $ 0.13 | $ 0.24 | $ 0.74 |
Uncategorized Items - expr-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,116,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,116,000) |