Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 29, 2020 | Aug. 03, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-34742 | ||
Entity Registrant Name | EXPRESS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-2828128 | ||
Entity Address, Address Line One | 1 Express Drive | ||
Entity Address, City or Town | Columbus | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43230 | ||
City Area Code | 614 | ||
Local Phone Number | 474-4001 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | EXPR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 141,035,896 | ||
Entity Common Stock, Outstanding (in shares) | 63,924,618 | ||
Documents Incorporated by Reference | Certain portions of the registrant's definitive Proxy Statement for its 2020 Annual Meeting of Stockholders, which is expected to be filed with the Commission within 120 days after the end of the registrant's 2019 fiscal year ("Proxy Statement for our 2020 Annual Meeting of Stockholders"), to be held on June 10, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001483510 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 207,139 | $ 171,670 |
Receivables, net | 10,824 | 17,369 |
Inventories | 220,303 | 267,766 |
Prepaid rent | 6,850 | 30,047 |
Other | 25,573 | 25,176 |
Total current assets | 470,689 | 512,028 |
RIGHT OF USE ASSET, NET | 1,010,216 | |
PROPERTY AND EQUIPMENT | 979,639 | 1,083,347 |
Less: accumulated depreciation | (731,309) | (719,068) |
Property and equipment, net | 248,330 | 364,279 |
TRADENAME/DOMAIN NAMES/TRADEMARKS | 0 | 197,618 |
DEFERRED TAX ASSETS | 54,973 | 5,442 |
OTHER ASSETS | 6,531 | 7,260 |
Total assets | 1,790,739 | 1,086,627 |
CURRENT LIABILITIES: | ||
Less: current obligations under leases | 226,174 | |
Accounts payable | 126,863 | 155,913 |
Deferred revenue | 38,227 | 40,466 |
Accrued expenses | 76,211 | 78,313 |
Total current liabilities | 467,475 | 274,692 |
Long-term lease obligations | 897,304 | |
DEFERRED LEASE CREDITS | 1,835 | 129,505 |
OTHER LONG-TERM LIABILITIES | 17,823 | 97,252 |
Total liabilities | 1,384,437 | 501,449 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
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 93,632 shares issued at February 1, 2020 and February 2, 2019, respectively, and 63,922 shares and 67,424 shares outstanding at February 1, 2020 and February 2, 2019, respectively | 936 | 936 |
Additional paid-in capital | 215,207 | 211,981 |
Retained earnings | 533,690 | 713,864 |
Treasury stock – at average cost; 29,710 shares and 26,208 shares at February 1, 2020 and February 2, 2019, respectively | (343,531) | (341,603) |
Total stockholders’ equity | 406,302 | 585,178 |
Total liabilities and stockholders’ equity | $ 1,790,739 | $ 1,086,627 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares, issued (in shares) | 93,632,000 | 93,632,000 |
Common stock, shares, outstanding (in shares) | 63,922,000 | 67,424,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
NET SALES | $ 2,019,194 | $ 2,116,344 | $ 2,158,502 |
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS | 1,468,619 | 1,501,433 | 1,530,991 |
Gross profit | 550,575 | 614,911 | 627,511 |
OPERATING EXPENSES: | |||
Selling, general, and administrative expenses | 564,332 | 587,348 | 573,550 |
Impairment of intangible assets | 197,618 | 0 | 0 |
Restructuring costs | 7,337 | 166 | 22,869 |
Other operating (income)/expense, net | (847) | (818) | 536 |
Total operating expenses | 768,440 | 586,696 | 596,955 |
OPERATING (LOSS)/INCOME | (217,865) | 28,215 | 30,556 |
INTEREST (INCOME)/EXPENSE, NET | (2,981) | 25 | 2,242 |
OTHER EXPENSE/(INCOME), NET | 0 | 7,900 | (537) |
(LOSS)/INCOME BEFORE INCOME TAXES | (214,884) | 20,290 | 28,851 |
INCOME TAX (BENEFIT)/EXPENSE | (50,526) | 10,660 | 9,978 |
NET (LOSS)/INCOME | (164,358) | 9,630 | 18,873 |
OTHER COMPREHENSIVE INCOME: | |||
Foreign currency translation | 0 | 0 | (402) |
Amount reclassified to earnings | 0 | 0 | 4,205 |
COMPREHENSIVE (LOSS)/ INCOME | $ (164,358) | $ 9,630 | $ 22,676 |
EARNINGS PER SHARE: | |||
Basic (in USD per share) | $ (2.49) | $ 0.13 | $ 0.24 |
Diluted (in USD per share) | $ (2.49) | $ 0.13 | $ 0.24 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 66,133 | 72,518 | 78,592 |
Diluted (in shares) | 66,133 | 73,239 | 78,870 |
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. 28, 2017 | 78,422 | |||||
Balance, at start of period at Jan. 28, 2017 | $ 630,494 | $ 921 | $ 185,097 | $ 685,522 | $ (3,803) | $ (237,243) |
Balance, at start of period, treasury stock (in shares) at Jan. 28, 2017 | 13,641 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income/(loss) | 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 | 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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income/(loss) | 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 | 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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income/(loss) | (164,358) | (164,358) | ||||
Exercise of stock options and restricted stock (in shares) | 1,204 | 1,204 | ||||
Exercise of stock options and restricted stock | 0 | (4,951) | (10,334) | $ 15,285 | ||
Share-based compensation | 8,177 | 8,177 | ||||
Repurchase of common stock (in shares) | (4,706) | (4,706) | ||||
Repurchase of common stock | (17,213) | $ (17,213) | ||||
Foreign currency translation | 0 | |||||
Amount reclassified to earnings | $ 0 | |||||
Balance, at end of period (in shares) at Feb. 01, 2020 | 63,922 | |||||
Balance, at end of period at Feb. 01, 2020 | $ 406,302 | $ 936 | $ 215,207 | 533,690 | $ 0 | $ (343,531) |
Balance, at end of period, treasury stock (in shares) at Feb. 01, 2020 | 29,710 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASC Topic 842 | Accounting Standards Update 2016-02 [Member] | $ (5,482) | $ (5,482) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss)/income | $ (164,358) | $ 9,630 | $ 18,873 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | |||
Depreciation and amortization | 85,383 | 85,853 | 90,221 |
Loss on disposal of property and equipment | 916 | 368 | 2,891 |
Impairment of property, equipment, and lease assets | 4,430 | 818 | 9,850 |
Impairment of intangible assets | 197,618 | 0 | 0 |
Equity method investment impairment | 500 | 8,400 | 0 |
Loss on deconsolidation of Canada | 0 | 0 | 10,672 |
Share-based compensation | 8,177 | 13,114 | 14,008 |
Deferred taxes | (49,561) | 536 | 396 |
Landlord allowance amortization | (2,205) | (11,606) | (13,183) |
Other non-cash adjustments | (500) | (500) | (500) |
Changes in operating assets and liabilities: | |||
Receivables, net | 6,545 | (5,284) | 3,279 |
Inventories | 47,463 | (7,038) | (28,279) |
Accounts payable, deferred revenue, and accrued expenses | (32,339) | (21,097) | (14,166) |
Other assets and liabilities | (11,359) | 523 | 24,505 |
Net cash provided by operating activities | 90,710 | 73,717 | 118,567 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (37,039) | (49,778) | (57,435) |
Decrease in cash and cash equivalents resulting from deconsolidation of Canada | 0 | 0 | (9,232) |
Net cash used in investing activities | (37,039) | (49,778) | (66,667) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Costs incurred in connection with debt arrangements | (899) | 0 | 0 |
Payments on lease financing obligations | (90) | (1,860) | (1,710) |
Repayments of financing arrangements | 0 | (750) | (2,040) |
Repurchase of common stock under share repurchase programs (see Note 8) | (15,610) | (83,172) | (17,264) |
Repurchase of common stock for tax withholding obligations | (1,603) | (2,709) | (1,599) |
Net cash used in financing activities | (18,202) | (88,491) | (22,613) |
EFFECT OF EXCHANGE RATE ON CASH | 0 | 0 | (438) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 35,469 | (64,552) | 28,849 |
CASH AND CASH EQUIVALENTS, Beginning of period | 171,670 | 236,222 | 207,373 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 207,139 | 171,670 | 236,222 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid to taxing authorities | $ 9,406 | $ 11,642 | $ 6,142 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Feb. 01, 2020 | |
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 is a leading fashion brand for women and men. Since 1980, Express has provided the latest apparel and accessories to help customers build a wardrobe for every occasion, offering fashion and quality at an attractive value. The Company operates nearly 600 retail and factory outlet stores in the United States and Puerto Rico, as well as an online destination. As of February 1, 2020, Express operated 381 primarily mall-based retail stores in the United States and Puerto Rico as well as 214 factory outlet stores. Additionally, as of February 1, 2020, the Company earned revenue from 12 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. Subsequent to year-end, one of the franchise agreements covering six franchise stores will not renew, with closures scheduled during the first quarter of 2020. 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 13 for additional information. 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 "2019", "2018", and "2017" refer to the 52-week period ended February 1, 2020, the 52-week period ended February 2, 2019, and the 53-week period ended February 3, 2018, 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. 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, together, its Chief Executive Officer and its President and Chief Operating Officer are the Chief Operating Decision Maker, and that there is one operating segment. Therefore, the Company reports results as a single segment, which includes the operation of its Express brick-and-mortar retail and outlet stores, e-commerce operations, and franchise operations. 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 Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASC 842”). This ASU is a comprehensive new standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It requires lessees to recognize lease assets and lease liabilities for most leases, including those leases previously classified as operating leases. ASC 842 requires a modified retrospective transition for leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company adopted ASC 842 on February 3, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for the respective periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which permitted companies not to reassess prior conclusions on lease identification, lease classification and initial direct costs. The Company did not elect the hindsight practical expedient. On February 3, 2019, the Company recognized leases, primarily related to its stores and corporate headquarters, on its Consolidated Balance Sheet, as right-of-use assets of $1.2 billion with corresponding lease liabilities of $1.3 billion and eliminated certain existing lease-related assets and liabilities as a net adjustment to the right-of-use assets. The Company’s right-of-use assets represent a right to use underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. In connection with this adoption, the Company recorded a transition adjustment, which was a net reduction of retained earnings of $5.5 million. This adjustment primarily reflects the difference between the right-of-use assets and lease liabilities recorded upon adoption, the elimination of the lease financing obligations and related assets described in Note 4, including the related put option, and the recognition of the impairment, upon adoption, of certain right-of-use assets totaling $1.2 million. The adoption of the new standard had no material impact on the Consolidated Statements of Income and Comprehensive Income, or the Consolidated Statements of Cash Flows, and did not impact the Company's compliance with debt covenants. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
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, 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 1, 2020 and February 2, 2019, amounts due from banks for credit and debit card transactions totaled approximately $10.9 million and $12.5 million, respectively. Outstanding checks not yet presented for payment amounted to $7.0 million and $8.0 million as of February 1, 2020 and February 2, 2019, 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 1, 2020 and February 2, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall. February 1, 2020 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 188,182 $ — $ — February 2, 2019 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 155,014 $ — $ — The money market funds are valued using quoted market prices in active markets. Non-Financial Assets The Company's non-financial assets, which include fixtures, equipment, improvements, right of use assets, and intangible assets, are not required to be measured at fair value on a recurring basis. However, 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, an impairment test is required. See additional discussion under the heading "Property and Equipment, Net" and "Intangible Assets" 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 1, 2020 and February 2, 2019 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 1, 2020 or February 2, 2019. 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 1, 2020 and February 2, 2019 was $10.4 million and $16.0 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 $114.7 million, $123.1 million, and $112.8 million in 2019, 2018, and 2017, 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 10 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, including the right of use assets, 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 2019, as a result of decreased performance in certain stores, the Company recognized impairment charges of $4.4 million related to 8 stores. In 2018, 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. 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 13 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. In the fourth quarter of 2019, the Company performed an impairment test of its indefinite-lived intangible assets. As a result of this impairment test, the Company recognized an impairment charge totaling $197.6 million related to its indefinite lived intangible assets. There are no remaining indefinite lived intangible assets as a result of the impairment charge. See Note 5 for further discussion. The Company did not incur any impairment charges on indefinite lived intangible assets in 2018 or 2017. 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 2018 and 2019 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. In addition, during 2019, the Company recognized an additional $0.5 million impairment charge within other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. The remaining $2.7 million investment, inclusive of the $1.5 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. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company's assets and liabilities. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company's judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense in the Consolidated Statements of Income and Comprehensive Income. Accrued interest and penalties are included within other long-term liabilities on the Consolidated Balance Sheets. The income tax liability was $0.8 million and $8.2 million as of February 1, 2020 and February 2, 2019, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The income tax receivable was $3.0 million and $1.5 million as of February 1, 2020 and February 2, 2019, 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 13 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 categories and sales channels: 2019 2018 2017 (in thousands) Apparel $ 1,736,700 $ 1,828,836 $ 1,873,376 Accessories and other 216,152 222,611 228,317 Other revenue 66,342 64,897 56,809 Total net sales $ 2,019,194 $ 2,116,344 $ 2,158,502 2019 2018 2017 (in thousands) Retail $ 1,467,261 $ 1,616,123 $ 1,736,516 Outlet 485,591 435,324 365,177 Other revenue 66,342 64,897 56,809 Total net sales $ 2,019,194 $ 2,116,344 $ 2,158,502 In light of the progress made in transforming into an omni-channel business model and the growth of the outlet channel, during the first quarter of 2019, the Company began providing sales channel information for retail, which includes retail store and e-commerce sales, outlets, and other revenue. Historically, the Company provided sales data for stores, which included both retail and outlet stores, and e-commerce. Other revenue is unchanged from the Company’s prior classification. 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 marked-out-of-stock inventory sales to third parties, shipping and handling revenue related to e-commerce activity, revenue earned from our private label credit card agreement, revenue from gift card breakage, and revenue from franchise agreements. Revenue related to the Company’s international franchise operations was not material for any period presented and, therefore, is not reported separately from domestic revenue. 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 are included in the transaction price 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 purchases 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. 2019 2018 (in thousands) Beginning balance loyalty deferred revenue $ 15,319 $ 14,186 Reduction in revenue/(revenue recognized) (1,256) 1,133 Ending balance loyalty deferred revenue $ 14,063 $ 15,319 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 $9.1 million and $9.9 million as of February 1, 2020 and February 2, 2019, 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 $24.1 million, and $25.1 million as of February 1, 2020 and February 2, 2019, 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. 2019 2018 (in thousands) Beginning gift card liability $ 25,133 $ 26,737 Issuances 43,028 46,977 Redemptions (40,527) (45,076) Gift card breakage (3,492) (3,505) Ending gift card liability $ 24,142 $ 25,133 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 on the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January of calendar year 2018. As of February 1, 2020, the deferred revenue balance of $14.2 million will be recognized over the term of the amended Card Agreement within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2019 2018 (in thousands) Beginning balance refundable payment liability $ 17,028 $ 19,906 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 14,150 $ 17,028 Cost of Goods Sold, Buying and Occupancy Costs Cost of goods sold, buying and occupancy costs, includes 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 Expense, Net Other 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. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consisted of: February 1, 2020 February 2, 2019 (in thousands) Building improvements $ 16,206 $ 86,487 Furniture, fixtures and equipment, and software 525,720 535,256 Leasehold improvements 406,183 444,906 Construction in process 30,719 15,911 Other 811 787 Total 979,639 1,083,347 Less: accumulated depreciation (731,309) (719,068) Property and equipment, net $ 248,330 $ 364,279 |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically have initial terms of 5 to 10 years. The current lease term for the corporate headquarters expires in 2026, with one optional five other landlord costs, including common area maintenance charges, relating to its leases. If these charges are fixed, they are combined with lease payments in determining the lease liability; however, if such charges are not fixed, they are considered variable lease costs and are expensed as incurred. The variable payments are not included in the measurement of the lease liability or asset. The Company’s finance leases are immaterial. Certain lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table is a summary of the Company’s components of net lease cost, which is included in cost of goods sold, buying and occupancy costs, in the Consolidated Statements of Income and Comprehensive Income: 2019 (in thousands) Operating lease costs $ 280,166 Variable and short-term lease costs 65,535 Total lease costs $ 345,701 Supplemental cash flow information related to leases is as follows: 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 279,092 Right-of-use assets obtained in exchange for operating lease liabilities $ 39,851 Supplemental balance sheet information related to leases as of February 1, 2020 is as follows: 2019 Operating leases: Weighted average remaining lease term (in years) 5.7 Weighted average discount rate 4.8 % The Company’s lease agreements do not provide an implicit rate, so the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease. The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheets as of February 1, 2020: February 1, 2020 (in thousands) 2020 $ 255,308 2021 238,197 2022 217,658 2023 204,465 2024 147,228 Thereafter 223,930 Total minimum lease payments 1,286,786 Less: amount of lease payments representing interest 163,308 Present value of future minimum lease payments 1,123,478 Less: current obligations under leases 226,174 Long-term lease obligations $ 897,304 Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. Lease Financing Obligations Prior to the adoption of ASC 842, in certain lease arrangements, the Company was involved in the construction of the building. To the extent the Company was involved in the construction of structural improvements or took construction risk prior to commencement of a lease, it was deemed the owner of the project for accounting purposes. Therefore, the Company recorded 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. The initial terms of the lease arrangements for which the Company was considered the owner 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 as of February 2, 2019. There was also $65.1 million of lease financing obligations as of February 2, 2019 in other long-term liabilities on the Consolidated Balance Sheets. These amounts were eliminated as part of the adoption of ASC 842. Rent expense relating to the land was recognized on a straight-line basis. The Company did not report rent expense for the portion of the rent payment determined to be related to the buildings which were owned for accounting purposes. Rather, this portion of the rent payment under the lease was recognized as interest expense and a reduction of the lease financing obligations. This treatment was discontinued as part of the adoption of ASC 842. In February 2016, the Company amended its lease arrangement with the landlord of the Times Square Flagship store. The amendment provided the landlord with the option to cancel the lease upon sufficient notice through December 31, 2016. The option was never exercised and therefore expired on December 31, 2016. In conjunction with amending the lease, the Company recognized an $11.4 million put option liability that was being amortized through interest expense over the remaining lease term. As of February 2, 2019, the remaining balance related to the put option was $7.5 million of which $6.7 million was included within other long-term liabilities on the Consolidated Balance Sheets. These amounts were eliminated as part of the adoption of ASC 842. |
Leases | LeasesThe Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically have initial terms of 5 to 10 years. The current lease term for the corporate headquarters expires in 2026, with one optional five other landlord costs, including common area maintenance charges, relating to its leases. If these charges are fixed, they are combined with lease payments in determining the lease liability; however, if such charges are not fixed, they are considered variable lease costs and are expensed as incurred. The variable payments are not included in the measurement of the lease liability or asset. The Company’s finance leases are immaterial. Certain lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table is a summary of the Company’s components of net lease cost, which is included in cost of goods sold, buying and occupancy costs, in the Consolidated Statements of Income and Comprehensive Income: 2019 (in thousands) Operating lease costs $ 280,166 Variable and short-term lease costs 65,535 Total lease costs $ 345,701 Supplemental cash flow information related to leases is as follows: 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 279,092 Right-of-use assets obtained in exchange for operating lease liabilities $ 39,851 Supplemental balance sheet information related to leases as of February 1, 2020 is as follows: 2019 Operating leases: Weighted average remaining lease term (in years) 5.7 Weighted average discount rate 4.8 % The Company’s lease agreements do not provide an implicit rate, so the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease. The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheets as of February 1, 2020: February 1, 2020 (in thousands) 2020 $ 255,308 2021 238,197 2022 217,658 2023 204,465 2024 147,228 Thereafter 223,930 Total minimum lease payments 1,286,786 Less: amount of lease payments representing interest 163,308 Present value of future minimum lease payments 1,123,478 Less: current obligations under leases 226,174 Long-term lease obligations $ 897,304 Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. Lease Financing Obligations Prior to the adoption of ASC 842, in certain lease arrangements, the Company was involved in the construction of the building. To the extent the Company was involved in the construction of structural improvements or took construction risk prior to commencement of a lease, it was deemed the owner of the project for accounting purposes. Therefore, the Company recorded 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. The initial terms of the lease arrangements for which the Company was considered the owner 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 as of February 2, 2019. There was also $65.1 million of lease financing obligations as of February 2, 2019 in other long-term liabilities on the Consolidated Balance Sheets. These amounts were eliminated as part of the adoption of ASC 842. Rent expense relating to the land was recognized on a straight-line basis. The Company did not report rent expense for the portion of the rent payment determined to be related to the buildings which were owned for accounting purposes. Rather, this portion of the rent payment under the lease was recognized as interest expense and a reduction of the lease financing obligations. This treatment was discontinued as part of the adoption of ASC 842. In February 2016, the Company amended its lease arrangement with the landlord of the Times Square Flagship store. The amendment provided the landlord with the option to cancel the lease upon sufficient notice through December 31, 2016. The option was never exercised and therefore expired on December 31, 2016. In conjunction with amending the lease, the Company recognized an $11.4 million put option liability that was being amortized through interest expense over the remaining lease term. As of February 2, 2019, the remaining balance related to the put option was $7.5 million of which $6.7 million was included within other long-term liabilities on the Consolidated Balance Sheets. These amounts were eliminated as part of the adoption of ASC 842. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table provides the significant components of intangible assets: February 1, 2020 Cost Impairment Accumulated Amortization Ending Net Balance (in thousands) Tradename/domain names/trademarks $ 197,618 $ 197,618 $ — $ — Licensing arrangements 425 — 368 57 $ 198,043 $ 197,618 $ 368 $ 57 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 The Company's tradename, Internet domain names, and trademarks had 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. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes consists of the following: 2019 2018 2017 Current: (in thousands) U.S. federal $ (602) $ 7,644 $ 8,415 U.S. state and local (363) 2,480 1,167 Total (965) 10,124 9,582 Deferred: U.S. federal (39,272) 371 (513) U.S. state and local (10,289) 165 909 Total (49,561) 536 396 Income tax (benefit)/expense $ (50,526) $ 10,660 $ 9,978 The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: 2019 2018 2017 Federal income tax rate 21.0 % 21.0 % 33.7 % State income taxes, net of federal income tax effect 3.4 % 13.2 % 5.6 % Change in uncertain tax positions 0.4 % (1.5) % (1.0) % Share-based compensation (1.3) % 5.5 % 7.8 % Non-deductible executive compensation (0.4) % 13.8 % 6.9 % Excess tax over book basis on investment in Express Canada — % — % (17.5) % Write-off of Express Canada deferred tax assets — % — % 15.7 % Change in valuation allowance (0.1) % 6.3 % (8.4) % Impact of Tax Cuts and Jobs Act on deferred taxes — % (1.0) % (7.1) % Tax credits 0.3 % (5.0) % (2.3) % Other items, net 0.2 % 0.2 % 1.2 % Effective tax rate 23.5 % 52.5 % 34.6 % The decrease in the tax rate in 2019 compared to 2018 is primarily attributable to the large pre-tax loss from the impairment of intangible assets, partially offset by the impact on the tax rate of the share-based compensation, non-deductible executive compensation, and valuation allowance recorded in 2018. The increase in the tax rate in 2018 compared to 2017 is primarily attributable to non-deductible executive compensation due to income tax reform, 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. 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 1, 2020 and February 2, 2019. 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 1, 2020 February 2, 2019 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 9,984 $ 12,163 Lease liability 304,942 — Intangible assets 26,059 — Rent — 20,768 Lease financing obligations — 20,043 Inventory 1,974 5,312 Deferred revenue 9,040 9,920 Net operating loss and tax credit carryforwards 2,265 239 Valuation allowance (2,313) (2,108) Total deferred tax assets 351,951 66,337 Deferred tax liabilities: Prepaid expenses 3,702 3,967 Right of use asset 268,779 — Other 464 701 Intangible assets — 20,694 Property and equipment 24,039 37,592 Total deferred tax liabilities 296,984 62,954 Net deferred tax asset $ 54,967 $ 3,383 As of February 1, 2020, the Company had U.S. Federal net operating loss carryforwards of $2.2 million and U.S. state net operating loss carryforwards of $1.1 million. The U.S. Federal net operating losses have an indefinite carryforward period. The U.S. state net operating losses have carryforward periods of five to twenty years with varying expiration dates and certain jurisdictions have an unlimited carryforward. In addition, certain U.S. Federal tax credits generated in 2019 in the amount of $0.8 million will not be utilized in the current year due to the net operating loss. Such tax credits can be carried forward 20 years and expire in 2039. The Company also has $0.1 million in foreign tax credits, which can be carried forward 10 years and expire starting in 2028. A valuation allowance has been recorded on the foreign tax credit carryforward. As a result of the equity method investment impairment in 2018, a valuation allowance was established in 2018 on the deferred tax asset of the investment in the amount of $2.1 million. An additional increase in the valuation allowance of the equity method investment in the amount of $0.1 million was recorded in 2019. The Company continues to believe that it is more likely than not that the full amount of the U.S. net deferred tax assets will be realized in the future. However, if future losses are incurred, it is reasonably possible that a material valuation allowance could be established as a result of negative evidence to support the realization of such assets. The following table summarizes the presentation of the Company’s net deferred tax assets on the Consolidated Balance Sheets: February 1, 2020 February 2, 2019 (in thousands) Deferred tax assets $ 54,973 $ 5,442 Other long-term liabilities (6) (2,059) Net deferred tax assets $ 54,967 $ 3,383 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 1, 2020 February 2, 2019 February 3, 2018 (in thousands) Unrecognized tax benefits, beginning of year $ 1,928 $ 2,398 $ 3,104 Gross addition for tax positions of the current year — 42 118 Gross addition for tax positions of the prior year 300 — 30 Settlements (2) — (147) Reduction for tax positions of prior years (240) (28) (46) Lapse of statute of limitations (681) (484) (661) Unrecognized tax benefits, end of year $ 1,305 $ 1,928 $ 2,398 The amount of the above unrecognized tax benefits as of February 1, 2020, February 2, 2019, and February 3, 2018 that would impact the Company's effective tax rate, if recognized, is $1.3 million, $1.9 million, and $2.4 million, respectively. During 2019 and 2018, the Company released gross uncertain tax positions of $0.7 million and $0.5 million, respectively, and the related accrued interest and penalties of $0.3 million and $0.1 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 $(0.1) million for 2019, $0.1 million for 2018, and $0.1 million for 2017. As of February 1, 2020 and February 2, 2019, the Company had accrued interest and penalties of $0.5 million and $0.6 million, respectively. The Company is subject to examination by the IRS for years subsequent to 2015. 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 2015 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 $0.5 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. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 24, 2019, Express Holding, LLC, a wholly-owned subsidiary of the Company (“Express Holding”), and its subsidiaries entered into a First Amendment to the Second Amended and Restated $250.0 million Asset-Based Loan Credit Agreement (“Revolving Credit Facility”). The expiration date of the Revolving Credit Facility is May 24, 2024. As of February 1, 2020, there were no borrowings outstanding and approximately $197.7 million was available for borrowing under the Revolving Credit Facility. Under the Revolving Credit Facility, revolving loans may be borrowed, repaid, and reborrowed until May 24, 2024, at which time all amounts borrowed must be repaid. Borrowings under the Revolving Credit Facility bear interest at a rate equal to either the rate published by ICE Benchmark Administration Limited (with a floor of 0%) (the “Eurodollar Rate”) plus an applicable margin rate or the highest of (1) Wells Fargo Bank, National Association’s prime lending rate (with a floor of 0%), (2) 0.50% per annum above the federal funds rate (with a floor of 0%) or (3) 1% above the Eurodollar Rate (the “Base 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 rate for Eurodollar Rate-based advances is 1.25% or 1.50% and the applicable margin rate for Base Rate-based advances is 0.25% or 0.50%, in each case, based on the borrowing base. Under certain circumstances, a default interest rate will apply on any overdue amount payable under the Revolving Credit Facility during the existence of an event of default at a per annum rate equal to 2.00% above the applicable interest rate for any overdue principal and 2.0% above the rate applicable for Base Rate-based advances for any other overdue interest. The unused line fee payable under the Revolving Credit Facility is incurred at 0.20% 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 10.0% 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 10.0% 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 10.0% 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 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchase Programs On November 28, 2017, the Company's Board of Directors ("Board") approved a share repurchase program that authorizes the Company to repurchase up to $150.0 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 2019, the Company repurchased 4.3 million shares of its common stock under the 2017 Repurchase Program for an aggregate amount equal to $15.6 million, including commissions. As of February 1, 2020, the Company had approximately $34.2 million remaining under this authorization. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [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. The Company issues shares of common stock from treasury stock, at average cost, upon exercise of stock options and vesting of restricted stock units, including those with performance conditions. 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. In the third quarter of 2019, in connection with updates made by the Company to its policy regarding the clawback of incentive compensation awarded to associates, the Board approved an amendment to the 2018 Plan, solely for the purpose of updating the language regarding the recoupment of awards granted under the 2018 Plan. The following summarizes share-based compensation expense: 2019 2018 2017 (in thousands) Restricted stock units and restricted stock $ 7,956 $ 10,982 $ 12,050 Stock options 795 1,564 1,958 Performance-based restricted stock units (574) 568 — Total share-based compensation $ 8,177 $ 13,114 $ 14,008 The stock compensation related income tax benefit recognized by the Company in 2019, 2018, and 2017 was $1.8 million, $2.6 million, and $2.1 million, respectively. Restricted Stock Units During 2019, the Company granted restricted stock units ("RSUs") under the terms of the 2018 Plan. 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 2018 Plan. The RSUs granted in 2019, in general, vest ratably over four years and the expense related to these RSUs will be recognized using the straight-line attribution method over this vesting period. The Company's activity with respect to RSUs and restricted stock, including awards with performance conditions, for 2019 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, February 2, 2019 3,064 $ 8.95 Granted 3,900 $ 3.72 Vested (1,222) $ 10.01 Forfeited (1,482) $ 6.32 Unvested, February 1, 2020 4,260 $ 4.78 The total fair value of RSUs and restricted stock that vested was $12.2 million, $13.8 million, and $8.5 million, during 2019, 2018, and 2017, respectively. As of February 1, 2020, there was approximately $13.4 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 1.7 years. Stock Options During 2019, the Company granted non-qualified stock options under the terms of the 2018 Plan. The fair value of these options was determined using the Black-Scholes-Merton option-pricing model. 1.2 million of these awards cliff vest in 2 years. The remaining options granted vest ratably over 4 years. The expense for stock options is recognized using the straight-line attribution method. The Company's activity with respect to stock options during 2019 was as follows: Number of Shares Grant Date Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding, February 2, 2019 2,379 $ 16.40 Granted 2,320 $ 2.60 Exercised — $ — Forfeited or expired (1,049) $ 16.23 Outstanding, February 1, 2020 3,650 $ 7.67 7.4 $ 3,271 Expected to vest at February 1, 2020 2,299 $ 2.96 9.3 $ 3,106 Exercisable at February 1, 2020 1,231 $ 16.95 3.4 $ — The following provides additional information regarding the Company's stock options: 2019 2018 2017 (in thousands, except per share amounts) Weighted average grant date fair value of options granted $ 1.25 N/A $ 4.35 Total intrinsic value of options exercised $ — N/A $ — As of February 1, 2020, there was approximately $2.3 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.8 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: 2019 2018 2017 Risk-free interest rate (1) 1.93 % N/A 2.27 % Price Volatility (2) 47.27 % N/A 45.58 % Expected term (years) (3) 6.29 N/A 6.10 Dividend yield (4) — N/A — (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 Cash-Settled Awards three |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
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: 2019 2018 2017 (in thousands) Weighted-average shares - basic 66,133 72,518 78,592 Dilutive effect of stock options, restricted stock units, and restricted stock — 721 278 Weighted-average shares - diluted 66,133 73,239 78,870 Equity awards representing 7.5 million, 3.4 million, and 3.8 million shares of common stock were excluded from the computation of diluted earnings per share for 2019, 2018, and 2017, respectively, as the inclusion of these awards would have been anti-dilutive. Additionally, for 2019, 0.4 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 1, 2020. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Feb. 01, 2020 | |
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 predetermined formula. Employee contributions and Company matching contributions vest immediately. Total expense recognized related to the Qualified Plan employer match was $4.2 million, $4.1 million, and $4.0 million in 2019, 2018, and 2017, 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 or subsequent to February 2, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
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. The lawsuit seeks unspecified monetary damages and attorneys’ fees. 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 standard violations. The lawsuit seeks unspecified monetary damages and attorneys’ fees. On January 28, 2019, Mr. 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 standard violations. The lawsuit seeks unspecified monetary damages and attorneys' fees. The Company is vigorously defending itself against these claims and, as of February 1, 2020, 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. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs 2019 Restructuring and Reorganization In the fourth quarter of 2019, in connection with the announcement with the Company’s new strategy and the restructuring of the Company’s work force to align to this strategy, the Company recognized $7.3 million in restructuring and related reorganization charges. The charges were primarily related to employee severance, benefits and professional fees. As of February 1, 2020, approximately $5.7 million was unpaid and recorded in accrued expenses on the Consolidated Balance Sheet. The Company expects the majority of these costs to be paid in 2020. Canadian Exit 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. 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. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized unaudited quarterly financial results for 2019 and 2018 follows: 2019 Quarter First Second Third Fourth (1) (in thousands, except per share amounts) Net sales $ 451,271 $ 472,715 $ 488,483 $ 606,725 Gross profit $ 122,503 $ 126,498 $ 137,673 $ 163,901 Net income/(loss) $ (9,934) $ (9,703) $ (3,105) $ (141,616) Earnings per basic share $ (0.15) $ (0.14) $ (0.05) $ (2.21) Earnings per diluted share $ (0.15) $ (0.14) $ (0.05) $ (2.21) (1) In the fourth quarter of 2019, the Company recorded an impairment charge of $197.6 million and a related tax benefit of $49.7 million. 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) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 17, 2020, the Company provided notice to the lenders of our Revolving Credit Facility of its request to borrow$165.0 million with a proposed borrowing date of March 20, 2020. As of March 17, 2020, the current interest rate for borrowings under the Revolving Credit Facility is 2.41%. Express Holding intends to increase its borrowings under the Revolving Credit Facility as a precautionary measure in order to increase its cash position, preserve financial flexibility and maintain liquidity and flexibility in response to the COVID-19 outbreak that caused public health officials to recommend precautions that would mitigate the spread of the virus, including warning against congregating in heavily populated areas such as malls and shopping centers, and led to the closure of all of our Express and Express Factory Outlet stores until March 27, 2020. The Company intends to hold the proceeds from the |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
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. |
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, together, its Chief Executive Officer and its President and Chief Operating Officer are the Chief Operating Decision Maker, and that there is one operating segment. Therefore, the Company reports results as a single segment, which includes the operation of its Express brick-and-mortar retail and outlet stores, e-commerce operations, and franchise operations. |
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 Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASC 842”). This ASU is a comprehensive new standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It requires lessees to recognize lease assets and lease liabilities for most leases, including those leases previously classified as operating leases. ASC 842 requires a modified retrospective transition for leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company adopted ASC 842 on February 3, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for the respective periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which permitted companies not to reassess prior conclusions on lease identification, lease classification and initial direct costs. The Company did not elect the hindsight practical expedient. On February 3, 2019, the Company recognized leases, primarily related to its stores and corporate headquarters, on its Consolidated Balance Sheet, as right-of-use assets of $1.2 billion with corresponding lease liabilities of $1.3 billion and eliminated certain existing lease-related assets and liabilities as a net adjustment to the right-of-use assets. The Company’s right-of-use assets represent a right to use underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. In connection with this adoption, the Company recorded a transition adjustment, which was a net reduction of retained earnings of $5.5 million. This adjustment primarily reflects the difference between the right-of-use assets and lease liabilities recorded upon adoption, the elimination of the lease financing obligations and related assets described in Note 4, including the related put option, and the recognition of the impairment, upon adoption, of certain right-of-use assets totaling $1.2 million. The adoption of the new standard had no material impact on the Consolidated Statements of Income and Comprehensive Income, or the Consolidated Statements of Cash Flows, and did not impact the Company's compliance with debt covenants. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include investments in money market funds, 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 | 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. The money market funds are valued using quoted market prices in active markets. Non-Financial Assets The Company's non-financial assets, which include fixtures, equipment, improvements, right of use assets, and intangible assets, are not required to be measured at fair value on a recurring basis. However, 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, an impairment test is required. See additional discussion under the heading "Property and Equipment, Net" and "Intangible Assets" in this note below. |
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 1, 2020 and February 2, 2019 was $10.4 million and $16.0 million, respectively. |
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 $114.7 million, $123.1 million, and $112.8 million in 2019, 2018, and 2017, 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 10 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. |
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. In the fourth quarter of 2019, the Company performed an impairment test of its indefinite-lived intangible assets. As a result of this impairment test, the Company recognized an impairment charge totaling $197.6 million related to its indefinite lived intangible assets. There are no remaining indefinite lived intangible assets as a result of the impairment charge. See Note 5 for further discussion. |
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 2018 and 2019 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. In addition, during 2019, the Company recognized an additional $0.5 million impairment charge within other expense/(income), net in the Consolidated Statements of Income and |
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. 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 $0.8 million and $8.2 million as of February 1, 2020 and February 2, 2019, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The income tax receivable was $3.0 million and $1.5 million as of February 1, 2020 and February 2, 2019, 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 TranslationThe Canadian dollar was the functional currency for the Company's Canadian business, prior to the deconsolidation of the Canadian subsidiary. See Note 13 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 categories and sales channels: 2019 2018 2017 (in thousands) Apparel $ 1,736,700 $ 1,828,836 $ 1,873,376 Accessories and other 216,152 222,611 228,317 Other revenue 66,342 64,897 56,809 Total net sales $ 2,019,194 $ 2,116,344 $ 2,158,502 2019 2018 2017 (in thousands) Retail $ 1,467,261 $ 1,616,123 $ 1,736,516 Outlet 485,591 435,324 365,177 Other revenue 66,342 64,897 56,809 Total net sales $ 2,019,194 $ 2,116,344 $ 2,158,502 In light of the progress made in transforming into an omni-channel business model and the growth of the outlet channel, during the first quarter of 2019, the Company began providing sales channel information for retail, which includes retail store and e-commerce sales, outlets, and other revenue. Historically, the Company provided sales data for stores, which included both retail and outlet stores, and e-commerce. Other revenue is unchanged from the Company’s prior classification. 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 marked-out-of-stock inventory sales to third parties, shipping and handling revenue related to e-commerce activity, revenue earned from our private label credit card agreement, revenue from gift card breakage, and revenue from franchise agreements. Revenue related to the Company’s international franchise operations was not material for any period presented and, therefore, is not reported separately from domestic revenue. 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 are included in the transaction price 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 purchases 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. 2019 2018 (in thousands) Beginning balance loyalty deferred revenue $ 15,319 $ 14,186 Reduction in revenue/(revenue recognized) (1,256) 1,133 Ending balance loyalty deferred revenue $ 14,063 $ 15,319 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 $9.1 million and $9.9 million as of February 1, 2020 and February 2, 2019, 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 $24.1 million, and $25.1 million as of February 1, 2020 and February 2, 2019, 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. 2019 2018 (in thousands) Beginning gift card liability $ 25,133 $ 26,737 Issuances 43,028 46,977 Redemptions (40,527) (45,076) Gift card breakage (3,492) (3,505) Ending gift card liability $ 24,142 $ 25,133 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 on the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January of calendar year 2018. As of February 1, 2020, the deferred revenue balance of $14.2 million will be recognized over the term of the amended Card Agreement within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2019 2018 (in thousands) Beginning balance refundable payment liability $ 17,028 $ 19,906 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 14,150 $ 17,028 Cost of Goods Sold, Buying and Occupancy Costs |
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 Expense, Net Other expense, net primarily consists of currency transaction gains/losses and activity related to our equity method investment in Homage. |
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. The Company issues shares of common stock from treasury stock, at average cost, upon exercise of stock options and vesting of restricted stock units, including those 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 2018 Plan.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. |
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 predetermined formula. Employee contributions and Company matching contributions vest immediately. Total expense recognized related to the Qualified Plan employer match was $4.2 million, $4.1 million, and $4.0 million in 2019, 2018, and 2017, respectively. |
Compensation Related Costs, Sha
Compensation Related Costs, Share Based Payments (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [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. The Company issues shares of common stock from treasury stock, at average cost, upon exercise of stock options and vesting of restricted stock units, including those 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 2018 Plan.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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 and February 2, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall. February 1, 2020 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 188,182 $ — $ — February 2, 2019 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 155,014 $ — $ — |
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 10 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 categories and sales channels: 2019 2018 2017 (in thousands) Apparel $ 1,736,700 $ 1,828,836 $ 1,873,376 Accessories and other 216,152 222,611 228,317 Other revenue 66,342 64,897 56,809 Total net sales $ 2,019,194 $ 2,116,344 $ 2,158,502 2019 2018 2017 (in thousands) Retail $ 1,467,261 $ 1,616,123 $ 1,736,516 Outlet 485,591 435,324 365,177 Other revenue 66,342 64,897 56,809 Total net sales $ 2,019,194 $ 2,116,344 $ 2,158,502 |
Schedule of Contract with Customer, Liability | 2019 2018 (in thousands) Beginning balance loyalty deferred revenue $ 15,319 $ 14,186 Reduction in revenue/(revenue recognized) (1,256) 1,133 Ending balance loyalty deferred revenue $ 14,063 $ 15,319 2019 2018 (in thousands) Beginning gift card liability $ 25,133 $ 26,737 Issuances 43,028 46,977 Redemptions (40,527) (45,076) Gift card breakage (3,492) (3,505) Ending gift card liability $ 24,142 $ 25,133 2019 2018 (in thousands) Beginning balance refundable payment liability $ 17,028 $ 19,906 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 14,150 $ 17,028 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of: February 1, 2020 February 2, 2019 (in thousands) Building improvements $ 16,206 $ 86,487 Furniture, fixtures and equipment, and software 525,720 535,256 Leasehold improvements 406,183 444,906 Construction in process 30,719 15,911 Other 811 787 Total 979,639 1,083,347 Less: accumulated depreciation (731,309) (719,068) Property and equipment, net $ 248,330 $ 364,279 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Net Lease Cost and Supplemental Cash Flow Information | The following table is a summary of the Company’s components of net lease cost, which is included in cost of goods sold, buying and occupancy costs, in the Consolidated Statements of Income and Comprehensive Income: 2019 (in thousands) Operating lease costs $ 280,166 Variable and short-term lease costs 65,535 Total lease costs $ 345,701 Supplemental cash flow information related to leases is as follows: 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 279,092 Right-of-use assets obtained in exchange for operating lease liabilities $ 39,851 |
Balance Sheet Supplemental Disclosures, Lessee | Supplemental balance sheet information related to leases as of February 1, 2020 is as follows: 2019 Operating leases: Weighted average remaining lease term (in years) 5.7 Weighted average discount rate 4.8 % |
Operating Lease Maturity after Adoption of Topic 842 | The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheets as of February 1, 2020: February 1, 2020 (in thousands) 2020 $ 255,308 2021 238,197 2022 217,658 2023 204,465 2024 147,228 Thereafter 223,930 Total minimum lease payments 1,286,786 Less: amount of lease payments representing interest 163,308 Present value of future minimum lease payments 1,123,478 Less: current obligations under leases 226,174 Long-term lease obligations $ 897,304 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table provides the significant components of intangible assets: February 1, 2020 Cost Impairment Accumulated Amortization Ending Net Balance (in thousands) Tradename/domain names/trademarks $ 197,618 $ 197,618 $ — $ — Licensing arrangements 425 — 368 57 $ 198,043 $ 197,618 $ 368 $ 57 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision (benefit) for income taxes consists of the following: 2019 2018 2017 Current: (in thousands) U.S. federal $ (602) $ 7,644 $ 8,415 U.S. state and local (363) 2,480 1,167 Total (965) 10,124 9,582 Deferred: U.S. federal (39,272) 371 (513) U.S. state and local (10,289) 165 909 Total (49,561) 536 396 Income tax (benefit)/expense $ (50,526) $ 10,660 $ 9,978 |
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: 2019 2018 2017 Federal income tax rate 21.0 % 21.0 % 33.7 % State income taxes, net of federal income tax effect 3.4 % 13.2 % 5.6 % Change in uncertain tax positions 0.4 % (1.5) % (1.0) % Share-based compensation (1.3) % 5.5 % 7.8 % Non-deductible executive compensation (0.4) % 13.8 % 6.9 % Excess tax over book basis on investment in Express Canada — % — % (17.5) % Write-off of Express Canada deferred tax assets — % — % 15.7 % Change in valuation allowance (0.1) % 6.3 % (8.4) % Impact of Tax Cuts and Jobs Act on deferred taxes — % (1.0) % (7.1) % Tax credits 0.3 % (5.0) % (2.3) % Other items, net 0.2 % 0.2 % 1.2 % Effective tax rate 23.5 % 52.5 % 34.6 % |
Schedule of Deferred Tax Assets and Liabilities | The following table provides the effect of temporary differences that created deferred income taxes as of February 1, 2020 and February 2, 2019. 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 1, 2020 February 2, 2019 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 9,984 $ 12,163 Lease liability 304,942 — Intangible assets 26,059 — Rent — 20,768 Lease financing obligations — 20,043 Inventory 1,974 5,312 Deferred revenue 9,040 9,920 Net operating loss and tax credit carryforwards 2,265 239 Valuation allowance (2,313) (2,108) Total deferred tax assets 351,951 66,337 Deferred tax liabilities: Prepaid expenses 3,702 3,967 Right of use asset 268,779 — Other 464 701 Intangible assets — 20,694 Property and equipment 24,039 37,592 Total deferred tax liabilities 296,984 62,954 Net deferred tax asset $ 54,967 $ 3,383 |
Deferred Tax Assets, Net Classification | The following table summarizes the presentation of the Company’s net deferred tax assets on the Consolidated Balance Sheets: February 1, 2020 February 2, 2019 (in thousands) Deferred tax assets $ 54,973 $ 5,442 Other long-term liabilities (6) (2,059) Net deferred tax assets $ 54,967 $ 3,383 |
Unrecognized Tax Benefits Rollforward | A reconciliation of the beginning to ending unrecognized tax benefits is as follows: February 1, 2020 February 2, 2019 February 3, 2018 (in thousands) Unrecognized tax benefits, beginning of year $ 1,928 $ 2,398 $ 3,104 Gross addition for tax positions of the current year — 42 118 Gross addition for tax positions of the prior year 300 — 30 Settlements (2) — (147) Reduction for tax positions of prior years (240) (28) (46) Lapse of statute of limitations (681) (484) (661) Unrecognized tax benefits, end of year $ 1,305 $ 1,928 $ 2,398 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Shared-based Compensation Expense | The following summarizes share-based compensation expense: 2019 2018 2017 (in thousands) Restricted stock units and restricted stock $ 7,956 $ 10,982 $ 12,050 Stock options 795 1,564 1,958 Performance-based restricted stock units (574) 568 — Total share-based compensation $ 8,177 $ 13,114 $ 14,008 |
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 2019 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, February 2, 2019 3,064 $ 8.95 Granted 3,900 $ 3.72 Vested (1,222) $ 10.01 Forfeited (1,482) $ 6.32 Unvested, February 1, 2020 4,260 $ 4.78 |
Schedule of Stock Options Activity | The Company's activity with respect to stock options during 2019 was as follows: Number of Shares Grant Date Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding, February 2, 2019 2,379 $ 16.40 Granted 2,320 $ 2.60 Exercised — $ — Forfeited or expired (1,049) $ 16.23 Outstanding, February 1, 2020 3,650 $ 7.67 7.4 $ 3,271 Expected to vest at February 1, 2020 2,299 $ 2.96 9.3 $ 3,106 Exercisable at February 1, 2020 1,231 $ 16.95 3.4 $ — |
Supplemental Stock Options Information | The following provides additional information regarding the Company's stock options: 2019 2018 2017 (in thousands, except per share amounts) Weighted average grant date fair value of options granted $ 1.25 N/A $ 4.35 Total intrinsic value of options exercised $ — N/A $ — |
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: 2019 2018 2017 Risk-free interest rate (1) 1.93 % N/A 2.27 % Price Volatility (2) 47.27 % N/A 45.58 % Expected term (years) (3) 6.29 N/A 6.10 Dividend yield (4) — N/A — (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. 01, 2020 | |
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: 2019 2018 2017 (in thousands) Weighted-average shares - basic 66,133 72,518 78,592 Dilutive effect of stock options, restricted stock units, and restricted stock — 721 278 Weighted-average shares - diluted 66,133 73,239 78,870 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized unaudited quarterly financial results for 2019 and 2018 follows: 2019 Quarter First Second Third Fourth (1) (in thousands, except per share amounts) Net sales $ 451,271 $ 472,715 $ 488,483 $ 606,725 Gross profit $ 122,503 $ 126,498 $ 137,673 $ 163,901 Net income/(loss) $ (9,934) $ (9,703) $ (3,105) $ (141,616) Earnings per basic share $ (0.15) $ (0.14) $ (0.05) $ (2.21) Earnings per diluted share $ (0.15) $ (0.14) $ (0.05) $ (2.21) (1) In the fourth quarter of 2019, the Company recorded an impairment charge of $197.6 million and a related tax benefit of $49.7 million. 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) |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) $ in Thousands | Feb. 03, 2019USD ($) | May 04, 2017subsidiary | Mar. 17, 2020store | Feb. 01, 2020USD ($)storesegment |
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores under franchise agreements | store | 12 | |||
Number of subsidiaries under the companies creditors arrangement act | subsidiary | 1 | |||
Number of operating segments | segment | 1 | |||
Operating lease, right-of-use asset | $ 1,010,216 | |||
Operating lease, liability | 1,123,478 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Operating lease, right-of-use asset | $ 1,200,000 | |||
Operating lease, liability | 1,300,000 | |||
Cumulative effect of new accounting principle | 5,500 | $ 5,482 | ||
Right of use assets, impaired | $ 1,200 | |||
Retail [Member] | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores | store | 381 | |||
Outlet [Member] | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores | store | 214 | |||
Retail And Factory Outlet [Member] | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores | store | 600 | |||
Subsequent Event [Member] | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Number of stores not renewing franchise agreement | store | 6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
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 | $ 10.9 | $ 12.5 |
Outstanding checks not yet presented for payment | $ 7 | $ 8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 188,182 | $ 155,014 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Accounting Policies [Abstract] | ||
Lower of cost or market adjustment to inventory | $ 10.4 | $ 16 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 114.7 | $ 123.1 | $ 112.8 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 29, 2017store | Apr. 29, 2017USD ($) | Feb. 01, 2020USD ($)store | Feb. 02, 2019USD ($)store | Feb. 03, 2018USD ($)store | |
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, equipment, and lease assets | $ | $ 5.5 | $ 4.4 | $ 4.4 | ||
Number of stores impaired during the period | 8 | ||||
Number of stores closed | 17 | 12 | |||
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 | 10 years | ||||
Impairment of property, equipment, and lease assets | $ | $ 0.8 | ||||
Number of stores impaired during the period | 3 | ||||
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 of property, equipment, and lease assets | $ | $ 5.5 | ||||
Number of stores closed | 17 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | ||||
Impairment of intangible assets | $ 197,600 | $ 197,618 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Investment in Equity Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | 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 | 500 | $ 8,400 | $ 0 | |
Equity method investment preferred yield | $ 1,500 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Accounting Policies [Abstract] | ||
Income tax liability | $ 0.8 | $ 8.2 |
Income taxes receivable, current | $ 3 | $ 1.5 |
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. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 606,725 | $ 488,483 | $ 472,715 | $ 451,271 | $ 628,426 | $ 514,961 | $ 493,605 | $ 479,352 | $ 2,019,194 | $ 2,116,344 | $ 2,158,502 |
Redemption period for rewards earned | 60 days | ||||||||||
Contract With Customer, Liability [Roll Forward] | |||||||||||
Beginning balance loyalty deferred revenue | $ 40,466 | $ 40,466 | |||||||||
Ending balance loyalty deferred revenue | $ 38,227 | $ 40,466 | 38,227 | 40,466 | |||||||
Apparel [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,736,700 | 1,828,836 | 1,873,376 | ||||||||
Accessories And Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 216,152 | 222,611 | 228,317 | ||||||||
Other Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 66,342 | 64,897 | 56,809 | ||||||||
Stores [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,467,261 | 1,616,123 | 1,736,516 | ||||||||
E-commerce [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 485,591 | $ 435,324 | $ 365,177 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Sales Returns Reserve and Gift Cards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Sales returns reserve | $ 9,100 | $ 9,900 |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance loyalty deferred revenue | 40,466 | |
Ending balance loyalty deferred revenue | 38,227 | 40,466 |
Gift Card Liability [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance loyalty deferred revenue | 25,133 | 26,737 |
Ending balance loyalty deferred revenue | 24,142 | 25,133 |
Gift Card Issuances [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | 43,028 | 46,977 |
Gift Card Redemptions [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | (40,527) | (45,076) |
Gift Card Breakage [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | (3,492) | (3,505) |
Loyalty Program [Member] | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance loyalty deferred revenue | 15,319 | 14,186 |
Increase (decrease) in gift card liability | (1,256) | 1,133 |
Ending balance loyalty deferred revenue | $ 14,063 | $ 15,319 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Private Label Credit Card - Narrative (Details) - Comenity Bank [Member] - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Aug. 28, 2017 |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 14,150 | $ 17,028 | $ 19,906 | |
Credit Card [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 20,000 |
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. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Beginning balance refundable payment liability | $ 17,028 | $ 19,906 |
Recognized in revenue | (2,878) | (2,878) |
Ending balance refundable payment liability | $ 14,150 | $ 17,028 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 979,639 | $ 1,083,347 | |
Less: accumulated depreciation | (731,309) | (719,068) | |
Property and equipment, net | 248,330 | 364,279 | |
Depreciation | 87,900 | 88,200 | $ 89,800 |
Building improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 16,206 | 86,487 | |
Furniture, fixtures and equipment, and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 525,720 | 535,256 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 406,183 | 444,906 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 30,719 | 15,911 | |
Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 811 | $ 787 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Feb. 01, 2020renewal_option | |
Office Building [Member] | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | 1 |
Lease renewal term | 5 years |
Minimum [Member] | Stores [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Minimum [Member] | Equipment And Other Assets [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 3 years |
Maximum [Member] | Stores [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Maximum [Member] | Equipment And Other Assets [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 280,166 |
Variable and short-term lease costs | 65,535 |
Total lease costs | $ 345,701 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows for operating leases | $ 279,092 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 39,851 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) | Feb. 01, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 5 years 8 months 12 days |
Weighted average discount rate | 4.80% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity after Adoption of Topic 842 (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 255,308 |
2021 | 238,197 |
2022 | 217,658 |
2023 | 204,465 |
2024 | 147,228 |
Thereafter | 223,930 |
Total minimum lease payments | 1,286,786 |
Less: amount of lease payments representing interest | 163,308 |
Present value of future minimum lease payments | 1,123,478 |
Less: current obligations under leases | 226,174 |
Long-term lease obligations | $ 897,304 |
Leases - Lease Financing Obliga
Leases - Lease Financing Obligations (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 29, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Landlord funded construction, replacement cost of pre-existing property, and capitalized interest | $ 56.6 | |
Lease financing obligations | 65.1 | |
Put option liability | 7.5 | $ 11.4 |
Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Put option liability | $ 6.7 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Accumulated Amortization | $ 368 | $ 368 | $ 319 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment | 197,618 | 197,618 | ||
Ending Net Balance | 0 | 0 | 197,618 | |
Ending Net Balance | 57 | 57 | 197,724 | |
Cost | 198,043 | 198,043 | 198,043 | |
Impairment of intangible assets | 197,600 | 197,618 | 0 | $ 0 |
Trademarks and Trade Names [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Cost | 197,618 | 197,618 | 197,618 | |
Impairment | 197,618 | 197,618 | ||
Ending Net Balance | 0 | 0 | 197,618 | |
Licensing arrangements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 425 | 425 | 425 | |
Accumulated Amortization | 368 | 368 | 319 | |
Ending Net Balance | $ 57 | $ 57 | $ 106 | |
Finite-lived intangible assets, useful life | 10 years |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current: | ||||
U.S. federal | $ (602) | $ 7,644 | $ 8,415 | |
U.S. state and local | (363) | 2,480 | 1,167 | |
Total | (965) | 10,124 | 9,582 | |
Deferred: | ||||
U.S. federal | (39,272) | 371 | (513) | |
U.S. state and local | (10,289) | 165 | 909 | |
Total | (49,561) | 536 | 396 | |
Income tax (benefit)/expense | $ (49,700) | $ (50,526) | $ 10,660 | $ 9,978 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 21.00% | 33.70% |
State income taxes, net of federal income tax effect | 3.40% | 13.20% | 5.60% |
Change in uncertain tax positions | 0.40% | (1.50%) | (1.00%) |
Share-based compensation | (1.30%) | 5.50% | 7.80% |
Non-deductible executive compensation | (0.40%) | 13.80% | 6.90% |
Excess tax over book basis on investment in Express Canada | 0.00% | 0.00% | (17.50%) |
Write-off of Express Canada deferred tax assets | 0.00% | 0.00% | 15.70% |
Change in valuation allowance | (0.10%) | 6.30% | (8.40%) |
Impact of Tax Cuts and Jobs Act on deferred taxes | 0 | (0.010) | (0.071) |
Tax credits | 0.30% | (5.00%) | (2.30%) |
Other items, net | 0.20% | 0.20% | 1.20% |
Effective tax rate | 23.50% | 52.50% | 34.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Tax cuts and jobs act, income tax benefit | $ 2,100 | ||
Deferred tax assets, operating loss carryforwards, domestic | $ 2,200 | ||
Deferred tax assets, operating loss carryforwards, state and local | 1,100 | ||
Net operating loss and tax credit carryforwards | 2,265 | $ 239 | |
Deferred tax assets, tax credit carryforwards, foreign | 100 | ||
Deferred tax assets, valuation allowance | 2,313 | 2,108 | |
Increase in valuation allowance | 100 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,300 | 1,900 | 2,400 |
Net interest in tax expense related to interest and penalties | (100) | 100 | $ 100 |
Accrued interest on unrecognized benefits | 500 | 600 | |
Resolution of federal and state tax examinations could reduce the Company's unrecognized tax benefits | 500 | ||
IRS [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss and tax credit carryforwards | 800 | ||
Uncertain tax positions | 700 | 500 | |
Interest accrued | $ 300 | $ 100 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Accrued expenses and deferred compensation | $ 9,984 | $ 12,163 |
Lease liability | 304,942 | |
Intangible assets | 26,059 | 0 |
Rent | 0 | 20,768 |
Lease financing obligations | 0 | 20,043 |
Inventory | 1,974 | 5,312 |
Deferred revenue | 9,040 | 9,920 |
Net operating loss and tax credit carryforwards | 2,265 | 239 |
Valuation allowance | (2,313) | (2,108) |
Total deferred tax assets | 351,951 | 66,337 |
Deferred tax liabilities: | ||
Prepaid expenses | 3,702 | 3,967 |
Right of use asset | 268,779 | |
Other | 464 | 701 |
Intangible assets | 0 | 20,694 |
Property and equipment | 24,039 | 37,592 |
Total deferred tax liabilities | 296,984 | 62,954 |
Net deferred tax asset | $ 54,967 | $ 3,383 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 54,973 | $ 5,442 |
Other long-term liabilities | (6) | (2,059) |
Net deferred tax asset | $ 54,967 | $ 3,383 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 1,928 | $ 2,398 | $ 3,104 |
Gross addition for tax positions of the current year | 0 | 42 | 118 |
Gross addition for tax positions of the prior year | 300 | 0 | 30 |
Settlements | (2) | 0 | (147) |
Reduction for tax positions of prior years | (240) | (28) | (46) |
Lapse of statute of limitations | (681) | (484) | (661) |
Unrecognized tax benefits, end of year | $ 1,305 | $ 1,928 | $ 2,398 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) | May 24, 2019 | Feb. 01, 2020 | Feb. 02, 2019 |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 250,000,000 | ||
Amount outstanding | $ 0 | ||
Remaining borrowing capacity | 197,700,000 | ||
Percent per annum above federal funds rate | 0.50% | ||
Percent above Eurodollar rate | 1.00% | ||
Minimum percentage margin for Eurodollar rate-based advances | 1.25% | ||
Maximum percentage margin for Eurodollar rate-based advances | 1.50% | ||
Minimum percentage margin for base rate-based advances | 0.25% | ||
Maximum percentage margin for base rate-based advances | 0.50% | ||
Existence of event of default percentage per annum | 2.00% | ||
Over due principle interest rate | 2.00% | ||
Commitment fee percentage | 0.20% | ||
Percent of borrowing base restriction (less than) | 10.00% | ||
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 | ||
Line of Credit [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis rate, floor | 0.00% | ||
Line of Credit [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis rate, floor | 0.00% | ||
Line of Credit [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis rate, floor | 0.00% | ||
Letter of Credit [Member] | Trade LCs [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 0 | $ 0 |
Debt - Letters of Credit (Detai
Debt - Letters of Credit (Details) - Letter of Credit [Member] - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Trade LCs [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 0 | $ 0 |
Expiration term for trade letters of credit | 21 days | |
Stand-By LCs [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 12,700,000 | $ 3,000,000 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Programs (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Nov. 28, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 150,000,000 | |||
Treasury stock, value, acquired | $ 17,213,000 | $ 85,881,000 | $ 18,863,000 | |
Stock repurchase program, remaining authorized repurchase amount | $ 34,200,000 | |||
2017 Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, acquired (in shares) | 4.3 | 10 | 2.1 | |
Treasury stock, value, acquired | $ 15,600,000 | $ 83,200,000 | $ 17,300,000 |
Share-Based Compensation - Cost
Share-Based Compensation - Cost by Award Type (Details) - USD ($) $ in Thousands, shares in Millions | Jun. 13, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
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 | $ 8,177 | $ 13,114 | $ 14,008 | |
Tax benefit from share-based compensation expense | 1,800 | 2,600 | 2,100 | |
Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 7,956 | 10,982 | 12,050 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 795 | 1,564 | 1,958 | |
Performance-based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ (574) | $ 568 | $ 0 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restricted Stock and Restricted Stock Units [Member] | ||||
Number of Shares | ||||
Awards Unvested at beginning of period (in shares) | 3,064 | |||
Awards Granted (in shares) | 3,900 | |||
Awards Vested (in shares) | (1,222) | |||
Awards Forfeited (in shares) | (1,482) | |||
Awards Unvested at end of period (in shares) | 4,260 | 3,064 | ||
Grant Date Weighted Average Fair Value | ||||
Awards, grant date weighted average fair value at beginning of period (in USD per share) | $ 8.95 | |||
Awards, grant date weighted average fair value, shares granted (in USD per share) | 3.72 | |||
Awards, grant date weighted average fair value, shares vested (in USD per share) | 10.01 | |||
Awards, grant date weighted average fair value, shares forfeited (in USD per share) | 6.32 | |||
Awards, grant date weighted average fair value at end of period (in USD per share) | $ 4.78 | $ 8.95 | ||
Fair value of options vested | $ 12.2 | $ 13.8 | $ 8.5 | |
Unrecognized share-based compensation expense | $ 13.4 | |||
Weighted-average period | 1 year 8 months 12 days | |||
Performance-based Restricted Stock Units [Member] | ||||
Restricted Stock and Restricted Stock Units [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Restricted Stock and Restricted Stock Units [Line Items] | ||||
Award vesting period | 4 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 03, 2018 | |
Number of Shares | ||
Stock Options Outstanding at beginning of period (in shares) | 2,379 | |
Stock Options Granted (in shares) | 2,320 | |
Stock Options Exercised (in shares) | 0 | |
Stock Options Forfeited or expired (in shares) | (1,049) | |
Stock Options Outstanding at end of period (in shares) | 3,650 | |
Stock Options Expected to vest at end of period (in shares) | 2,299 | |
Stock Options Exercisable at end of period (in shares) | 1,231 | |
Grant Date Weighted Average Exercise Price | ||
Grant Date Weighted Average Exercise Price of Options Outstanding at beginning of period (in USD per share) | $ 16.40 | |
Grant Date Weighted Average Exercise Price of Options Granted (in USD per share) | 2.60 | |
Grant Date Weighted Average Exercise Price of Options Exercised (in USD per share) | 0 | |
Grant Date Weighted Average Exercise Price of Options Forfeited or expired (in USD per share) | 16.23 | |
Grant Date Weighted Average Exercise Price of Options Outstanding at end of period (in USD per share) | 7.67 | |
Grant Date Weighted Average Exercise Price of Options Expected to vest at end of period (in USD per share) | 2.96 | |
Grant Date Weighted Average Exercise Price of Options Exercisable at end of period (in USD per share) | $ 16.95 | |
Weighted-Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life of Options Outstanding | 7 years 4 months 24 days | |
Weighted Average Remaining Contractual Life of Options Expected to vest at end of period | 9 years 3 months 18 days | |
Weighted Average Remaining Contractual Life of Options Exercisable at end of period | 3 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value of Options Outstanding at end of period | $ 3,271 | |
Aggregate Intrinsic Value of Options Expected to vest at end of period | 3,106 | |
Aggregate Intrinsic Value of Options Exercisable at end of period | $ 0 | |
Company's Stock Options | ||
Weighted average grant date fair value of options granted (in USD per share) | $ 1.25 | $ 4.35 |
Total intrinsic value of options exercised | $ 0 | $ 0 |
Share-based Payment Arrangement, Tranche One [Member] | ||
Number of Shares | ||
Stock Options Granted (in shares) | 1,200 | |
Share-based Payment Arrangement, Tranche One [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
Share-based Payment Arrangement, Tranche Two [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense and Period for Recognition (Details) - Stock Options [Member] $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Unrecognized Compensation Expense and Period for Recognition [Line Items] | |
Unrecognized share-based compensation expense | $ 2.3 |
Period for recognition | 1 year 9 months 18 days |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted-Average Assumptions (Details) - Stock Option [Member] | 12 Months Ended | |
Feb. 01, 2020 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.93% | 2.27% |
Price volatility | 47.27% | 45.58% |
Expected term | 6 years 3 months 14 days | 6 years 1 month 6 days |
Dividend yield | 0.00% | 0.00% |
Share-Based Compensation - Perf
Share-Based Compensation - Performance-based Restricted Stock Units (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
May 05, 2018 | Feb. 01, 2020 | |
Performance-based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance-based Restricted Stock Units [Member] | 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% | |
Performance-based Restricted Stock Units [Member] | 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% | |
Performance Shares, Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 0 | |
Cash-Settled Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Unrecognized compensation costs | $ 1.5 | |
Period for recognition | 2 years 2 months 12 days | |
Cash-Settled Awards [Member] | 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% | |
Cash-Settled Awards [Member] | 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. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average shares - basic (in shares) | 66,133 | 72,518 | 78,592 |
Dilutive effect of stock options, restricted stock units, and restricted stock (in shares) | 0 | 721 | 278 |
Weighted-average shares - diluted (in shares) | 66,133 | 73,239 | 78,870 |
Potentially dilutive securities (in shares) | 7,500 | 3,400 | 3,800 |
Performance-based Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 400 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Retirement Benefits [Abstract] | ||||
Employee contributions percentage (up to) | 15.00% | |||
Employer match | $ 4.2 | $ 4.1 | $ 4 | |
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 | Feb. 01, 2020USD ($) | Apr. 29, 2017USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($)store | Nov. 03, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 7,300 | $ 7,337 | $ 166 | $ 22,869 | |||
Restructuring costs unpaid | $ 5,700 | 5,700 | |||||
Number of stores closed | store | 17 | 12 | |||||
Impairment of property, equipment, and lease assets | $ 5,500 | 4,400 | $ 4,400 | ||||
Cash loss | $ 0 | $ 0 | 9,232 | ||||
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. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 606,725 | $ 488,483 | $ 472,715 | $ 451,271 | $ 628,426 | $ 514,961 | $ 493,605 | $ 479,352 | $ 2,019,194 | $ 2,116,344 | $ 2,158,502 |
Gross profit | 163,901 | 137,673 | 126,498 | 122,503 | 173,197 | 158,149 | 140,403 | 143,162 | 550,575 | 614,911 | 627,511 |
Net income/(loss) | $ (141,616) | $ (3,105) | $ (9,703) | $ (9,934) | $ (1,088) | $ 7,967 | $ 2,234 | $ 517 | $ (164,358) | $ 9,630 | $ 18,873 |
Earnings per basic share (in USD per share) | $ (2.21) | $ (0.05) | $ (0.14) | $ (0.15) | $ (0.02) | $ 0.11 | $ 0.03 | $ 0.01 | $ (2.49) | $ 0.13 | $ 0.24 |
Earnings per diluted share (in USD per share) | $ (2.21) | $ (0.05) | $ (0.14) | $ (0.15) | $ (0.02) | $ 0.11 | $ 0.03 | $ 0.01 | $ (2.49) | $ 0.13 | $ 0.24 |
Impairment of intangible assets | $ 197,600 | $ 197,618 | $ 0 | $ 0 | |||||||
Income tax benefit | $ 49,700 | $ 50,526 | $ (10,660) | $ (9,978) |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) - Subsequent Event [Member] - Line of Credit [Member] - Revolving Credit Facility [Member] - USD ($) $ in Millions | Mar. 20, 2020 | Mar. 17, 2020 |
Subsequent Event [Line Items] | ||
Effective interest rate | 2.41% | |
Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from long-term lines of credit | $ 165 |