Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 27, 2021 | Aug. 01, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 30, 2021 | ||
Current Fiscal Year End Date | --01-30 | ||
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 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 64,336,249 | ||
Entity Common Stock, Outstanding (in shares) | 64,973,977 | ||
Documents Incorporated by Reference | Certain portions of the registrant's definitive Proxy Statement for its 2021 Annual Meeting of Stockholders, which is expected to be filed with the Commission within 120 days after the end of the registrant's 2020 fiscal year ("Proxy Statement for our 2021 Annual Meeting of Stockholders"), to be held on June 9, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001483510 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | EXPR | ||
Security Exchange Name | NYSE | ||
Preferred Stock Purchase Rights | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
Trading Symbol | EXPR | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 55,874 | $ 207,139 |
Receivables, net | 14,556 | 10,824 |
Income tax receivable | 111,342 | 3,000 |
Inventories | 264,360 | 220,303 |
Prepaid rent | 7,883 | 6,850 |
Other | 20,495 | 22,573 |
Total current assets | 474,510 | 470,689 |
Right of Use Asset, Net | 797,785 | 1,010,216 |
Property and Equipment | 969,402 | 979,639 |
Less: accumulated depreciation | (789,204) | (731,309) |
Property and equipment, net | 180,198 | 248,330 |
Deferred tax assets | 0 | 54,973 |
Other Assets | 5,964 | 6,531 |
TOTAL ASSETS | 1,458,457 | 1,790,739 |
Current Liabilities: | ||
Short-term lease liability | 203,441 | 226,174 |
Accounts payable | 150,230 | 126,863 |
Deferred revenue | 32,430 | 38,227 |
Accrued expenses | 128,952 | 76,211 |
Total current liabilities | 515,053 | 467,475 |
Long-Term Lease Liability | 722,949 | 897,304 |
Long-Term Debt | 192,032 | 0 |
Other Long-Term Liabilities | 18,734 | 19,658 |
Total Liabilities | 1,448,768 | 1,384,437 |
Commitments and Contingencies (Note 11) | ||
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 January 30, 2021 and February 1, 2020, respectively, and 64,971 shares and 63,922 shares outstanding at January 30, 2021 and February 1, 2020, respectively | 936 | 936 |
Additional paid-in capital | 222,141 | 215,207 |
Retained earnings | 114,732 | 533,690 |
Treasury stock – at average cost; 28,661 shares and 29,710 shares at January 30, 2021 and February 1, 2020, respectively | (328,120) | (343,531) |
Total stockholders’ equity | 9,689 | 406,302 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,458,457 | $ 1,790,739 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jan. 30, 2021 | Feb. 01, 2020 |
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) | 64,971,000 | 63,922,000 |
Treasury stock, shares at average cost (in shares) | 28,661,000 | 29,710,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,208,374 | $ 2,019,194 | $ 2,116,344 |
Cost of Goods Sold, Buying and Occupancy Costs | 1,213,281 | 1,468,619 | 1,501,433 |
GROSS (LOSS)/PROFIT | (4,907) | 550,575 | 614,911 |
Operating Expenses: | |||
Selling, general, and administrative expenses | 450,834 | 564,332 | 587,348 |
Impairment of intangible assets | 0 | 197,618 | 0 |
Restructuring costs | 0 | 7,337 | 166 |
Other operating income, net | (526) | (847) | (818) |
TOTAL OPERATING EXPENSES | 450,308 | 768,440 | 586,696 |
OPERATING (LOSS)/INCOME | (455,215) | (217,865) | 28,215 |
Interest Expense/(Income), Net | 3,401 | (2,981) | 25 |
Other Expense, Net | 2,733 | 0 | 7,900 |
(LOSS)/INCOME BEFORE INCOME TAXES | (461,349) | (214,884) | 20,290 |
Income Tax (Benefit)/Expense | (55,900) | (50,526) | 10,660 |
NET (LOSS)/INCOME | (405,449) | (164,358) | 9,630 |
COMPREHENSIVE (LOSS)/INCOME | $ (405,449) | $ (164,358) | $ 9,630 |
EARNINGS PER SHARE: | |||
Basic (in USD per share) | $ (6.27) | $ (2.49) | $ 0.13 |
Diluted (in USD per share) | $ (6.27) | $ (2.49) | $ 0.13 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 64,624 | 66,133 | 72,518 |
Diluted (in shares) | 64,624 | 66,133 | 73,239 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance, at start of period (in shares) at Feb. 03, 2018 | 76,724 | |||||||
Balance, at start of period at Feb. 03, 2018 | $ 648,314 | $ 926 | $ 199,099 | $ 704,395 | $ 0 | $ (256,106) | ||
Balance, at start 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) | ||||||
Balance, at end of period (in shares) at Feb. 02, 2019 | 67,424 | |||||||
Balance, at end of period at Feb. 02, 2019 | $ 585,178 | $ (5,482) | $ 936 | 211,981 | 713,864 | $ (5,482) | 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] | ||||||||
Accounting Standards Update [Extensible List] | Adoption of ASC Topic 842 | |||||||
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) | ||||||
Balance, at end of period (in shares) at Feb. 01, 2020 | 63,922 | 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 | 29,710 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ (405,449) | (405,449) | ||||||
Exercise of stock options and restricted stock (in shares) | 1,392 | 1,392 | ||||||
Exercise of stock options and restricted stock | 0 | (2,528) | (13,509) | $ 16,037 | ||||
Share-based compensation | 9,462 | 9,462 | ||||||
Repurchase of common stock (in shares) | 343 | 343 | ||||||
Repurchase of common stock | $ (626) | $ (626) | ||||||
Balance, at end of period (in shares) at Jan. 30, 2021 | 64,971 | 64,971 | ||||||
Balance, at end of period at Jan. 30, 2021 | $ 9,689 | $ 936 | $ 222,141 | $ 114,732 | $ (5,500) | $ 0 | $ (328,120) | |
Balance, at end of period, treasury stock (in shares) at Jan. 30, 2021 | 28,661 | 28,661 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss)/income | $ (405,449) | $ (164,358) | $ 9,630 |
Adjustments to reconcile net (loss)/income to net cash used in operating activities: | |||
Depreciation and amortization | 73,698 | 85,383 | 85,853 |
Loss on disposal of property and equipment | 901 | 916 | 368 |
Impairment of property, equipment, and lease assets | 34,380 | 4,430 | 818 |
Impairment of intangible assets | 0 | 197,618 | 0 |
Equity method investment impairment | 3,233 | 500 | 8,400 |
Share-based compensation | 9,462 | 8,177 | 13,114 |
Deferred taxes | 54,967 | (49,561) | 536 |
Landlord allowance amortization | (416) | (2,205) | (11,606) |
Other non-cash adjustments | (500) | (500) | (500) |
Changes in operating assets and liabilities: | |||
Receivables, net | (3,732) | 6,545 | (5,284) |
Income tax receivable | (108,342) | (1,500) | 292 |
Inventories | (44,057) | 47,463 | (7,038) |
Accounts payable, deferred revenue, and accrued expenses | 68,275 | (32,339) | (21,097) |
Other assets and liabilities | (6,046) | (9,859) | 231 |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (323,626) | 90,710 | 73,717 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (16,854) | (37,039) | (49,778) |
NET CASH USED IN INVESTING ACTIVITIES | (16,854) | (37,039) | (49,778) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings under the revolving credit facility | 165,000 | 0 | 0 |
Repayment of borrowings under the revolving credit facility | (58,950) | 0 | 0 |
Proceeds from borrowings under the term loan facility | 90,000 | 0 | 0 |
Proceeds on financing arrangements | 2,634 | 0 | 0 |
Repayments of financing arrangements | (1,864) | 0 | (750) |
Costs incurred in connection with debt arrangements | (6,979) | (899) | 0 |
Payments on lease financing obligations | 0 | (90) | (1,860) |
Repurchase of common stock under share repurchase programs (Note 7) | 0 | (15,610) | (83,172) |
Repurchase of common stock for tax withholding obligations | (626) | (1,603) | (2,709) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 189,215 | (18,202) | (88,491) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (151,265) | 35,469 | (64,552) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 207,139 | 171,670 | 236,222 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 55,874 | 207,139 | 171,670 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 2,676 | 0 | 0 |
Cash paid to taxing authorities | $ 621 | $ 9,406 | $ 11,642 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 30, 2021 | |
Description of Business and Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1 | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Business Description Express, Inc., together with its subsidiaries (“Express” or the “Company”), is a modern, versatile, dual gender apparel and accessories brand that helps people get dressed for every day and any occasion. Launched in 1980 with the idea that style, quality and value should all be found in one place, Express has been a brand of the now, offering some of the most important and enduring fashion trends. Express aims to Create Confidence & Inspire Self-Expression through a design & merchandising view that brings forward The Best of Now for Real Life Versatility. The Company operates over 500 retail and factory outlet stores in the United States and Puerto Rico, as well as an online destination. As of January 30, 2021, Express operated 360 primarily mall-based retail stores in the United States and Puerto Rico as well as 210 factory outlet stores. Additionally, as of January 30, 2021, the Company earned revenue from 7 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. 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 the Company's fiscal years are as follows: Fiscal Year Year Ended Number of Weeks 2020 January 30, 2021 52 2019 February 1, 2020 52 2018 February 2, 2019 52 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, eCommerce 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 Adopted 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, 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. Impact of the COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a novel strain of coronavirus ("COVID-19") a global pandemic and recommended containment and mitigation measures. Since then, extraordinary actions have been taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19. The pandemic has significantly impacted global economies, resulting in workforce and travel restrictions, supply chain and production disruptions and reduced demand and spending across many industries. During March 2020, in response to the COVID-19 outbreak and business disruption resulting from quarantines, stay-at-home orders, and similar mandates, Express temporarily closed all its Company stores and offices, and as a result, all store associates and a number of home office employees were furloughed. For the remainder of the home office employees, remote work arrangements were put in place and were designed to allow for continued operation of the business, including financial reporting systems and internal controls. The Company's website, www.express.com , remained open, supported by third-party logistics providers and Company employees working remotely. The Company has considered the impact of COVID-19 on our Consolidated Financial Statements and expects it to have future impacts, the extent of which is uncertain and largely subject to whether the severity of the pandemic worsens and/or its duration lengthens. These impacts could include but may not be limited to risks and uncertainty in the near to medium term related to federal, state, and local store closure requirements, customer demand, worker availability, the Company's ability to procure inventory, distribution facility closures, shifts in demand between sales channels, and market volatility in supply chain and store rents. Consequently, this may subject the Company to future risk of long-lived asset and lease right of use asset impairments, increased reserves for uncollectible accounts, and adjustments for inventory, including the lower of cost or net realizable value adjustment. Going Concern and Management’s Plans As previously disclosed, the COVID-19 pandemic has and continues to result in significant disruption to the Company’s business. As a result, the Company’s revenues, results of operations and cash flows continue to be materially adversely impacted. For the 52-week period ended January 30, 2021, the Company reported a net loss of $405.4 million and negative operating cash flows of $323.6 million. In response to the COVID-19 pandemic the Company borrowed $165.0 million under its Revolving Credit Facility and an additional $90.0 million under a Term Loan Facility. Upon receipt of proceeds from the Term Loan Facility the Company repaid $59.0 million of the Revolving Credit Facility. In addition, under the Term Loan Facility, the Company borrowed $50.0 million subsequent to year-end, that will be repaid upon receipt of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") receivable. The Revolving Credit Facility and the Term Loan Facility contain certain affirmative and negative covenants. Refer to Note 6 in the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for further details regarding the Revolving Credit Facility and Term Loan Facility. The Company is currently in compliance with its covenants and expects to remain in compliance, however, due to the uncertainty related to the duration of the COVID-19 pandemic and its continuing impacts, the Company could experience material changes to forecasted revenues and cash flows and may experience difficulty remaining in compliance with financial covenants under the Revolving Credit Facility and the Term Loan Facility. When conditions and events, in the aggregate, impact an entity's ability to continue as a going concern, management evaluates the mitigating effect of its plans to determine if it is probable that the plans will be effectively implemented and, when implemented, the plans will mitigate the relevant conditions or events. The Company’s plans are focused on improving its results and liquidity through increased sales and cost reductions. The Company's current forecasts include sales and profitability improvements over fiscal year 2020 results. In addition, the Company has entered into agreements, or is in discussions with, most of its retail landlords to modify rent payments, receive rent concessions or otherwise reduce operating costs. The Company also has $111.3 million in income tax refunds that are receivable from the U.S. government based primarily on provisions in the CARES Act. Any legislative changes to the CARES Act or significant delays in receiving this tax refund could adversely impact the Company's financial position and results. The Company also has contingency plans in which it would further reduce or defer additional expenses and cash outlays, should operations weaken beyond current forecasts or if cash inflows from tax receivables are not received when expected. The Company believes these plans are probable of being successfully implemented, which will result in adequate cash flows to support its ongoing operations and to meet its covenant requirements under the Revolving Credit Facility and Term Loan Facility for one year following the date these financial statements are issued. The accompanying Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 | 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 January 30, 2021 and February 1, 2020, amounts due from banks for credit and debit card transactions totaled approximately $7.5 million and $10.9 million, respectively. Outstanding checks not yet presented for payment amounted to $32.1 million and $7.0 million as of January 30, 2021 and February 1, 2020, respectively, and are included in accounts payable on the Consolidated Balance Sheets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. • Level 1 - Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Valuation is based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 - Valuation is based upon other unobservable inputs that are significant to the fair value measurement. Financial Assets The following table presents the Company's financial assets measured at fair value on a recurring basis as of January 30, 2021 and February 1, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall. January 30, 2021 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 35,964 $ — $ — February 1, 2020 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 188,182 $ — $ — 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" in this note below. The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables, prepaid expenses, and payables as of January 30, 2021 and February 1, 2020 approximated their fair values. Receivables, Net Receivables, net consist primarily of non-income tax CARES Act receivable, 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 estimated credit losses was not significant as of January 30, 2021 or February 1, 2020. 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 January 30, 2021 and February 1, 2020 was $14.5 million and $10.4 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 $110.6 million, $114.7 million, and $123.1 million in 2020, 2019, and 2018, 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. Store Asset Impairment Property and equipment, including the right of use 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, an impairment test is required. These events include, but are not limited to, material adverse changes in projected revenues and cost of goods sold (exclusive of buying and occupancy costs), present cash flow losses combined with a history of cash flow losses and a forecast that demonstrates significant continuing losses, significant negative economic conditions, a significant decrease in the market value of an asset and store closure or relocation decisions. The reviews are conducted at the store level, the lowest identifiable level of cash flow. Stores that display an indicator of impairment are subjected to an impairment assessment. Such stores are tested for recoverability by comparing the sum of the estimated future undiscounted cash flows to the carrying amount of the asset. This recoverability test requires management to make assumptions and judgments related, but not limited, to management’s expectations for future cash flows from operating the store. ▪ The key assumptions used in the undiscounted future store cash flow models include sales growth rate and gross margin, exclusive of buying and occupancy costs. An impairment loss may be recognized when these undiscounted future cash flows are less than the carrying amount of the asset group. In the circumstance of impairment, any loss would be measured as the excess of the carrying amount of the asset group over its fair value. Fair value of the store-related assets is determined at the individual store level based on the highest and best use of the asset group. • The key assumptions used in the fair value analysis may include discounted estimates of future store cash flows from operating the store and/or comparable market rents. As a result of the COVID-19 pandemic, which included temporary store closures and a related decline in sales beginning in March 2020 and continuing through the remainder of the year, the Company concluded that a triggering event had occurred. Consequently, the Company performed impairment testing. As a result of this testing, during 2020, the Company recognized impairment charges as follows: 2020 2019 2018 (in thousands) Right of use asset impairment $ 25,117 $ 1,289 $ — Property and equipment asset impairment 9,263 3,141 818 Total asset impairment $ 34,380 $ 4,430 $ 818 Impairment charges are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. 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 was 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, 2019 and 2020 as the result of an accrual of a non-cash preferred yield. This investment was assessed for impairment whenever factors indicated 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. During 2020, the Company wrote off the remaining $2.7 million of its investment, inclusive of the $1.5 million preferred yield within other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. In addition, in 2020 and 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 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. During the third quarter of 2020, the Company sold all of its interest in Homage, LLC back to Homage, LLC in exchange for a promissory note payable to the Company in the principal amount of $1.5 million. The Company has recorded a reserve against the full value of this promissory note. 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. The Company considers all available evidence, both positive and negative, when evaluating whether deferred tax assets are realizable. Such factors include past operating results, taxable income in prior carryback years, future reversal of existing temporary differences, prudent and feasible tax planning strategies, and forecasts of future operating income. The past operating results is given more weight than expectations of future profitability, which is inherently uncertain. The assumptions utilized in determining future taxable income require significant judgment and actual operating results in future years could differ from the Company’s current assumptions and estimates. 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 $0.7 million and $0.8 million as of January 30, 2021 and February 1, 2020, respectively, and is included in accrued expenses 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. Revenue Recognition The following is information regarding the Company's major product categories and sales channels: 2020 2019 2018 (in thousands) Apparel $ 1,033,140 $ 1,736,700 $ 1,828,836 Accessories and other 132,069 216,152 222,611 Other revenue 43,165 66,342 64,897 Total net sales $ 1,208,374 $ 2,019,194 $ 2,116,344 2020 2019 2018 (in thousands) Retail $ 860,613 $ 1,467,261 $ 1,616,123 Outlet 304,596 485,591 435,324 Other revenue 43,165 66,342 64,897 Total net sales $ 1,208,374 $ 2,019,194 $ 2,116,344 Merchandise returns are reflected in the accounting records of the channel where they are physically returned. Other revenue consists primarily of revenue earned from our private label credit card agreement, shipping and handling revenue related to eCommerce activity, sell-off revenue related to marked-out-of-stock inventory sales to third parties, 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 eCommerce 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 that 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. 2020 2019 (in thousands) Beginning balance loyalty deferred revenue $ 14,063 $ 15,319 Revenue recognized (5,112) (1,256) Ending balance loyalty deferred revenue $ 8,951 $ 14,063 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 $6.4 million and $9.1 million as of January 30, 2021 and February 1, 2020, 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 eCommerce 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 $23.5 million, and $24.1 million as of January 30, 2021 and February 1, 2020, 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 unredeemed gift cards to relevant jurisdictions. The gift card breakage rate is based on historical redemption patterns. Gift card breakage is included within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2020 2019 (in thousands) Beginning gift card liability $ 24,142 $ 25,133 Issuances 25,996 43,028 Redemptions (24,027) (40,527) Gift card breakage (2,633) (3,492) Ending gift card liability $ 23,478 $ 24,142 Private Label Credit Card The Company has an agreement with Comenity Bank (the “Bank”) to provide customers with private label credit cards (the “Card Agreement”) which 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 eCommerce 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 within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. The Company also receives reimbursement funds from the Bank for certain 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 private label credit cards are recorded within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. In connection with the Card Agreement, the Bank agreed to pay the Company a $20.0 million refundable payment which the Company recognized upon receipt as deferred revenue within other long-term liabilities in the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January 2018. As of January 30, 2021, the deferred revenue balance of $11.3 million will be recognized over the remaining term of the amended Card Agreement within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2020 2019 (in thousands) Beginning balance refundable payment liability $ 14,150 $ 17,028 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 11,272 $ 14,150 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, eCommerce 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 expense, net primarily consists of gains/losses on disposal of assets, excess proceeds from the settlement of insurance claims and the write off of certain costs associated with aborted debt negotiations. Other Expense, Net Other expense, net primarily consists of the pre-tax write-off of our 2016 investment in Homage, LLC. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 3 | PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of: January 30, 2021 February 1, 2020 (in thousands) Building improvements $ 16,206 $ 16,206 Furniture, fixtures and equipment, and software 552,412 525,720 Leasehold improvements 396,668 406,183 Construction in process 3,304 30,719 Other 812 811 Total 969,402 979,639 Less: accumulated depreciation (789,204) (731,309) Property and equipment, net $ 180,198 $ 248,330 Depreciation expense totaled $76.1 million, $87.9 million, and $88.2 million in 2020, 2019, and 2018, respectively, excluding impairment charges discussed in N ote 2 . |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Leases | NOTE 4 | LEASES The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically had initial terms of 5 to 10 years however, most of the leases that are coming to the end of their lease lives are being renegotiated with shorter terms. The current lease term for the corporate headquarters expires in 2026, with one optional five-year extension period. The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. The Company is generally obligated for the cost of property taxes, insurance and 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. The Company did not make any amendments to its lease modification policies as a result of the COVID-19 pandemic. 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. As a result of the impact of the COVID-19 pandemic, the Company did not initially make its store rent payments for certain stores in the first and second quarter of 2020. The Company established an accrual for rent payments that were not made and has continued to recognize accrued rent expense. As a result of negotiations with certain landlords, the Company has since made rent payments for certain stores and some landlords have agreed to abate certain rent payments. The appropriate adjustments were made to accrued rent. Accrued rent is within accrued expenses on the Consolidated Balance Sheets. Accrued minimum rent as of January 30, 2021 and February 1, 2020, was $56.3 million and $3.2 million, respectively. 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: 2020 2019 (in thousands) Operating lease costs $ 272,896 $ 280,166 Variable and short-term lease costs 60,925 65,535 Total lease costs $ 333,821 $ 345,701 Total lease costs for 2018 were $356.8 million. Supplemental cash flow information related to leases is as follows: 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 197,824 $ 279,092 Right-of-use assets obtained in exchange for operating lease liabilities $ 44,433 $ 39,851 Supplemental balance sheet information related to leases is as follows: 2020 2019 Operating leases: Weighted average remaining lease term (in years) 5.1 5.7 Weighted average discount rate 5.4 % 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 January 30, 2021: January 30, 2021 (in thousands) 2021 $ 229,299 2022 228,188 2023 200,719 2024 154,197 2025 115,812 Thereafter 132,843 Total minimum lease payments 1,061,058 Less: amount of lease payments representing interest 134,668 Present value of future minimum lease payments 926,390 Less: current obligations under leases 203,441 Long-term lease obligations $ 722,949 Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. |
Leases | NOTE 4 | LEASES The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically had initial terms of 5 to 10 years however, most of the leases that are coming to the end of their lease lives are being renegotiated with shorter terms. The current lease term for the corporate headquarters expires in 2026, with one optional five-year extension period. The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. The Company is generally obligated for the cost of property taxes, insurance and 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. The Company did not make any amendments to its lease modification policies as a result of the COVID-19 pandemic. 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. As a result of the impact of the COVID-19 pandemic, the Company did not initially make its store rent payments for certain stores in the first and second quarter of 2020. The Company established an accrual for rent payments that were not made and has continued to recognize accrued rent expense. As a result of negotiations with certain landlords, the Company has since made rent payments for certain stores and some landlords have agreed to abate certain rent payments. The appropriate adjustments were made to accrued rent. Accrued rent is within accrued expenses on the Consolidated Balance Sheets. Accrued minimum rent as of January 30, 2021 and February 1, 2020, was $56.3 million and $3.2 million, respectively. 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: 2020 2019 (in thousands) Operating lease costs $ 272,896 $ 280,166 Variable and short-term lease costs 60,925 65,535 Total lease costs $ 333,821 $ 345,701 Total lease costs for 2018 were $356.8 million. Supplemental cash flow information related to leases is as follows: 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 197,824 $ 279,092 Right-of-use assets obtained in exchange for operating lease liabilities $ 44,433 $ 39,851 Supplemental balance sheet information related to leases is as follows: 2020 2019 Operating leases: Weighted average remaining lease term (in years) 5.1 5.7 Weighted average discount rate 5.4 % 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 January 30, 2021: January 30, 2021 (in thousands) 2021 $ 229,299 2022 228,188 2023 200,719 2024 154,197 2025 115,812 Thereafter 132,843 Total minimum lease payments 1,061,058 Less: amount of lease payments representing interest 134,668 Present value of future minimum lease payments 926,390 Less: current obligations under leases 203,441 Long-term lease obligations $ 722,949 Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5 | INCOME TAXES The provision (benefit) for income taxes consists of the following: 2020 2019 2018 Current: (in thousands) U.S. federal $ (109,627) $ (602) $ 7,644 U.S. state and local (1,240) (363) 2,480 Total (110,867) (965) 10,124 Deferred: U.S. federal 37,292 (39,272) 371 U.S. state and local 17,675 (10,289) 165 Total 54,967 (49,561) 536 Income tax (benefit)/expense $ (55,900) $ (50,526) $ 10,660 The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: 2020 2019 2018 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 5.2 % 3.4 % 13.2 % Change in uncertain tax positions 0.1 % 0.4 % (1.5) % Share-based compensation (0.3) % (1.3) % 5.5 % Non-deductible executive compensation (0.2) % (0.4) % 13.8 % Change in valuation allowance (22.9) % (0.1) % 6.3 % Change in tax law 9.1 % — % (1.0) % Tax credits 0.1 % 0.3 % (5.0) % Other items, net — % 0.2 % 0.2 % Effective tax rate 12.1 % 23.5 % 52.5 % On March 27, 2020, the CARES Act was enacted into law. The CARES Act provides several provisions that impact the Company including the establishment of a five-year carryback of net operating losses originating in the tax years 2018, 2019, and 2020, temporarily suspending the 80% limitation on the use of net operating losses, relaxing limitation rules on business interest deductions, and retroactively clarifying that businesses may immediately write-off certain qualified leasehold improvement property dating back to January 1, 2018. The decrease in the tax rate in 2020 compared to 2019 is primarily attributable to the impact of establishing a valuation allowance against the Company's net deferred tax assets. This was partially offset by the impact from the CARES Act of the 2019 and 2020 U.S. federal net operating losses that are able to be carried back to years with a higher federal statutory tax rate than is currently enacted. 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 following table provides the effect of temporary differences that created deferred income taxes as of January 30, 2021 and February 1, 2020. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carry-forwards at the end of the respective periods. January 30, 2021 February 1, 2020 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 10,478 $ 9,984 Lease liability 249,819 304,942 Intangible assets 24,592 26,059 Inventory 1,154 1,974 Deferred revenue 7,582 9,040 Net operating losses, tax credit and other carryforwards 51,204 2,265 Valuation allowance (108,418) (2,313) Total deferred tax assets 236,411 351,951 Deferred tax liabilities: Prepaid expenses 3,861 3,702 Right of use asset 210,796 268,779 Other 1,200 464 Property and equipment 20,554 24,039 Total deferred tax liabilities 236,411 296,984 Net deferred tax asset $ — $ 54,967 Due to the ongoing impact of the COVID-19 pandemic, the Company no longer believes it is able to objectively forecast taxable income in future years, which provides significant negative evidence when assessing whether the Company will more likely than not realize the full amount of the U.S. net deferred tax assets. As such, the Company recorded a valuation allowance against the full amount of the U.S. net deferred tax assets that were not utilized with the 2020 net operating loss carryback under the CARES Act. We will continue to evaluate the Company's ability to realize the deferred tax assets on a quarterly basis. As of January 30, 2021, the Company had U.S. federal net operating loss carryforwards of $92.8 million and U.S. state net operating loss carryforwards of $490.0 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. The Company had U.S. federal and state capital loss carryforwards of $10.2 million, which, if unused, will expire in five years. In addition, certain U.S. federal tax credits generated in tax years 2015 to 2019 in the amount of $3.8 million will no longer be utilized due to the net operating loss carryback claims under the CARES Act. These tax credits can be carried forward 20 years and expire starting in 2035. The Company also has $0.1 million in foreign tax credits, which can be carried forward 10 years and expire starting in 2027. A valuation allowance has been recorded on all of these tax attributes. The following table summarizes the presentation of the Company’s net deferred tax assets on the Consolidated Balance Sheets: January 30, 2021 February 1, 2020 (in thousands) Deferred tax assets $ — $ 54,973 Other long-term liabilities — (6) Net deferred tax assets $ — $ 54,967 The following table summarizes the changes in the valuation allowance: 2020 2019 2018 (in thousands) Valuation allowance, beginning of year $ 2,313 $ 2,108 $ 832 Changes in related gross deferred tax assets/liabilities 410 — — Charge 105,695 205 1,276 Valuation allowance, end of year $ 108,418 $ 2,313 $ 2,108 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: January 30, 2021 February 1, 2020 February 2, 2019 (in thousands) Unrecognized tax benefits, beginning of year $ 1,305 $ 1,928 $ 2,398 Gross addition for tax positions of the current year — — 42 Gross addition for tax positions of the prior year 327 300 — Settlements — (2) — Reduction for tax positions of prior years — (240) (28) Lapse of statute of limitations (244) (681) (484) Unrecognized tax benefits, end of year $ 1,388 $ 1,305 $ 1,928 The amount of the above unrecognized tax benefits as of January 30, 2021, February 1, 2020, and February 2, 2019 that would impact the Company's effective tax rate, if recognized, is $1.4 million, $1.3 million, and $1.9 million, respectively. During 2020 and 2019, the Company released gross uncertain tax positions of $0.2 million and $0.7 million, respectively, and the related accrued interest and penalties of $0.2 million and $0.3 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 2020, $(0.1) million for 2019, and $0.1 million for 2018. As of January 30, 2021 and February 1, 2020, the Company had accrued interest and penalties of $0.4 million and $0.5 million, respectively. The Company is subject to examination by the IRS for years subsequent to 2013. 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. 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 $0.1 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 |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 6 | DEBT The following table summarizes the Company's outstanding debt as of the dates indicated: January 30, 2021 February 1, 2020 (in thousands) Term Loan Facility $ 90,000 $ — Revolving Facility 106,050 — Total outstanding borrowings 196,050 — Less: unamortized debt issuance costs (4,018) — Total debt, net 192,032 — Less: current portion of long-term debt — — Long-term debt, net $ 192,032 $ — Outstanding letters of credit $ 36,099 $ 12,742 Term Loan Facility On January 13, 2021, Express Holding, LLC, a wholly-owned subsidiary of the Company (“Express Holding”), and its subsidiaries entered into the $140.0 million Asset-Based Term Loan Agreement (the “Term Loan Facility”), among the Loan Parties (as defined therein), Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent and collateral agent, and the other lenders named therein (the “Term Loan Lenders”). The Term Loan Facility provides for a “first in, last out” term loan in an amount equal to $90.0 million (the “FILO Term Loan”) and a delayed draw term loan facility in an amount equal to $50.0 million (the “DDTL”). The Term Loan Facility is a senior secured obligation that ranks equally with the Loan Parties’ other senior secured obligations. The proceeds of the FILO Term Loan and the DDTL will be used, among other things, for working capital and other general corporate purposes. Amounts borrowed under the FILO Term Loan will be repaid in quarterly installments at a rate of 1.25% per quarter based on the original principal amount of the FILO Term Loan, commencing with the fiscal quarter beginning on or about January 30, 2022. All remaining amounts of the Term Loan Facility outstanding on the maturity date will be paid in full on the maturity date, or May 24, 2024. The Loan Parties must repay amounts incurred under the Term Loan Facility with net proceeds from the incurrence of certain additional debt, after payment in full and termination of the $250.0 million asset-based loan credit facility, when outstanding loans under the Term Loan Facility and asset-based loan credit facility exceed the aggregate borrowing base under the Term Loan Facility and asset-based loan credit facility, and, in the case of the DDTL only, with tax refund proceeds payable to the Company pursuant to the CARES Act. Voluntary prepayments under the Term Loan Facility are permitted at any time upon proper notice and subject to minimum dollar amounts and, in certain instances, a prepayment fee. Amounts borrowed under the Term Loan Facility will bear interest at a variable rate indexed to LIBOR plus a pricing margin ranging from 8.00% to 8.25% per annum, as determined in accordance with the provisions of the Term Loan Facility based on EBITDA, as of any date of determination, for the most recently ended twelve month period. Interest payments under the Term Loan Facility are due on the first day of each calendar month. As of January 30, 2021 the interest rate on the outstanding FILO Term Loan was 9.0%. The Term Loan Facility is subject to a borrowing base which is calculated based on specified percentages of eligible inventory, credit card receivables, intellectual property and, after the advance of the DDTL, the lesser of the amount of the tax refund claim under the CARES Act and the outstanding amount of the DDTL. The Term Loan Facility financial covenant requires the Borrower to maintain minimum excess availability of at least the greater of (i) $25.0 million or (ii) 10% of the sum of (x) Amended Revolving Credit Facility (defined below) loan cap (calculated without giving effect to any term pushdown reserve) plus (y) the lesser of (A) the outstanding principal balance under the Term Loan Facility and (B) the term loan borrowing base. In addition, the Term Loan Facility contains customary covenants and restrictions on the Company’s and its subsidiaries’ activities, including, but not limited to, limitations on the amount of cash that can be held, 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 its fiscal year, and permitted activities of the Company. The Term Loan Facility includes customary events of default that include, among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, cross-default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, ERISA defaults, structural defaults under the loan documents and a change of control default. The occurrence of an event of default could result in the acceleration of the obligations under the Term Loan Facility. Under certain circumstances, a default interest rate will apply on any amount payable under the Term Loan 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 principal and 2.00% above the rate applicable for base rate loans for any other interest. All obligations under the Term Loan Facility are guaranteed by the Loan Parties (other than the Borrower (as defined therein)) and secured by (a) a second priority lien on, substantially all of the Loan Parties’ working capital assets, including cash, accounts receivable, and inventory, and (b) a first priority lien on, substantially all of the Loan Parties’ non-working capital assets, including intellectual property, and the tax refund payable to the Company pursuant to the CARES Act, in each case, subject to certain permitted liens. As of January 30, 2021, the Company had $90.0 million in borrowings outstanding under the Term Loan Facility. The fair value of the Term Loan Facility at January 30, 2021 was $90.1 million. Subsequent to its fiscal 2020 year-end, the Company also drew down the additional $50.0 million under the DDTL. The Company recorded deferred financing costs associated with the issuance of the FILO Term Loan Facility of $4.1 million. These costs will be amortized over the respective contractual terms of the Term Loan Facility. The Company’s FILO Term Loan debt is presented on the Consolidated Balance Sheets, net of the unamortized fees. The Company also recorded $2.3 million in deferred financing costs associated with the DDTL. These costs are recorded in other assets on the Consolidated Balance Sheet until the amounts are drawn down under the DDTL. Maturities of the Term Loan Facility during the next five fiscal years and thereafter are as follows: January 30, 2021 (in thousands) 2021 $ — 2022 4,500 2023 4,500 2024 81,000 2025 — Thereafter — Total $ 90,000 Revolving Credit Facility On May 24, 2019, Express Holding and its subsidiaries entered into a First Amendment to the Second Amended and Restated $250.0 million Asset-Based Loan Credit Agreement (as amended, the “Revolving Credit Facility”). On March 17, 2020, the Company provided notice to the lenders under the Revolving Credit Facility of a request to borrow $165.0 million. On January 13, 2021, Express Holding and its subsidiaries entered into the Second Amendment to the Second Amended and Restated $250.0 million Asset-Based Loan Credit Agreement and the Second Amendment to the Amended and Restated Security Agreement, among the Loan Parties (as defined therein), the lenders party thereto, and Wells Fargo, as administrative agent, as collateral agent, as issuing bank and as swing line lender (the “Revolving Credit Facility Amendment”). The Revolving Credit Facility Amendment amends the Loan Parties’ existing asset-based Revolving Credit Facility (as amended by the Revolving Credit Facility Amendment, the “Amended Revolving Credit Facility”), which is scheduled to expire on May 24, 2024. The Revolving Credit Facility Amendment added the Company and Express Topco LLC as Loan Parties, fully obligated and bound by all of the respective covenants, representations, warranties and events of default. Under the Amended 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 Amended Revolving Credit Facility bear interest at variable rates that are indexed, at the Borrower’s option, to LIBOR or the base rate as defined in the credit agreement governing the asset-based loan credit facility, in each case plus a pricing margin. The pricing margin for LIBOR loans ranges from 2.00% to 2.25% per annum, and the pricing margin for base rate loans ranges from 1.00% to 1.25% per annum, in each case as determined in accordance with the provisions of the Amended Revolving Credit Facility based on average daily excess availability. The Amended Revolving Credit Facility has a maximum borrowing amount of $250 million, subject to a borrowing base which is calculated based on specified percentages of eligible inventory, credit card receivables and cash, less certain reserves. Commitment reductions and termination of the Amended Revolving Credit Facility prior to the maturity date is permitted, subject in certain instances to a prepayment fee. As of January 30, 2021, the interest rate on the outstanding borrowings of $105.0 million at LIBOR was approximately 2.8% and the interest rate on the outstanding borrowings of $1.1 million at the base rate was approximately 4.5%. The unused line fee payable under the Amended Revolving Credit Facility is 0.375% per annum when average daily excess availability during an applicable fiscal quarter is greater than or equal to 50% of the borrowing base and 0.20% per annum when average daily excess availability is less than 50% of the borrowing base, payable quarterly in arrears on the first day of each calendar month. The Borrower is also obligated to pay other customary closing fees, arrangement fees, administration fees and letter of credit fees for a credit facility of this size and type. Interest payments under the Amended Revolving Credit Facility are due on the first day of each calendar month for base rate loans. Interest payments under the Amended Revolving Credit Facility are due on the last day of the interest period for LIBOR loans for interest periods of one and three months, and additionally every three months after the first day of the interest period for LIBOR loans for interest periods of greater than three months. The Amended Revolving Credit Facility financial covenant requires the Borrower to maintain minimum excess availability of at least the greater of (i) $25 million or (ii) 10% of the sum of (x) Amended Revolving Credit Facility loan cap (calculated without giving effect to any term pushdown reserve) plus (y) the lesser of (A) the outstanding principal balance under the Term Loan Facility and (B) the term loan borrowing base. Subject to certain conditions, the Amended Revolving Credit Facility restricts prepayment of the Term Loan Facility, except in connection with a prepayment made solely from the tax refund payable to the Company pursuant to the CARES Act. In addition, the Amended Revolving Credit Facility contains customary covenants and restrictions on the Company’s and its subsidiaries’ activities, including, but not limited to, limitations on the amount of cash that can be held, 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 its fiscal year, and permitted activities of the Company. The Amended Revolving Credit Facility includes customary events of default that, include among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, cross-default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, ERISA defaults, structural defaults under the loan documents and a change of control default. The occurrence of an event of default could result in the acceleration of the obligations under the Amended Revolving Credit Facility. Under certain circumstances, a default interest rate will apply on any amount payable under the Amended 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 principal and 2.00% above the rate applicable for base rate loans for any other interest. All obligations under the Amended Revolving Credit Facility are guaranteed by the Loan Parties (other than the Borrower) and secured by (a) a first priority lien on, substantially all of the Loan Parties’ working capital assets, including cash, accounts receivable, and inventory, and (b) a second priority lien on, substantially all of the Loan Parties’ non-working capital assets, including intellectual property, and the refund payable to the Company pursuant to the CARES Act, in each case, subject to certain permitted liens. Approximately $59.0 million of the proceeds from the Term Loan Facility were used to repay the Amended Revolving Credit Facility, which previously had $165.0 million in outstanding revolving borrowings. As of January 30, 2021, the Company had $106.1 million in borrowings outstanding under the Revolving Credit Facility and approximately $35.6 million remained available for borrowing under the Revolving Credit Facility after giving effect to outstanding letters of credit in the amount of $36.1 million and subject to certain borrowing base limitations as further discussed above. The fair value of the Revolving Credit Facility at January 30, 2021 was $106.1 million. Letters of Credit The Company may enter into various trade letters of credit ("trade LCs") in favor of certain vendors to secure merchandise. These trade LCs are issued for a defined period of time, for specific shipments, and generally expire three weeks after the merchandise shipment date. As of January 30, 2021 and February 1, 2020, there were no outstanding trade LCs. Additionally, the Company enters into stand-by letters of credit ("stand-by LCs") on an as-needed basis to secure payment obligations for third party logistic services, merchandise purchases, and other general and administrative expenses. As of January 30, 2021 and February 1, 2020, outstanding stand-by LCs totaled $36.1 million and $12.7 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 7 | 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 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. In 2020, the Company did not repurchase shares of its common stock. As of January 30, 2021, the Company had approximately $34.2 million remaining under this authorization. Stockholder Rights Agreement On April 20, 2020, the Board adopted a Stockholder Rights Agreement (the “Rights Agreement”). Under the Rights Agreement, one preferred share purchase right was distributed for each share of common stock, par value $0.01, outstanding at the close of business on April 30, 2020 and one right will be issued for each new share of common stock issued thereafter. The rights will initially trade with common stock and will generally become exercisable only if any person (or any persons acting as a group) acquires 10% (or 20% in the case of certain passive investors) or more of the Company’s outstanding common stock (the “triggering percentage”). In the event the rights become exercisable, each holder of a right, other than the triggering person, will be entitled to purchase additional shares of common stock at a 50% discount or the Company may exchange each right held by such holders for one share of |
Long-Term Incentive Compensatio
Long-Term Incentive Compensation | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Long-Term Incentive Compensation | NOTE 8 | LONG-TERM INCENTIVE 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. Long-Term Incentive 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 were practices the Company already followed 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. On March 17, 2020, upon the recommendation of the Committee, the Board unanimously approved and adopted, subject to stockholder approval, a second amendment to the 2018 Plan, which increased the number of shares of common stock available under the 2018 Plan by 2.5 million shares. On June 10, 2020, stockholders of the Company approved this plan amendment. The following summarizes long-term incentive compensation expense: 2020 2019 2018 (in thousands) Restricted stock units and restricted stock $ 8,220 $ 7,956 $ 10,982 Stock options 1,242 795 1,564 Performance-based restricted stock units — (574) 568 Total share-based compensation $ 9,462 $ 8,177 $ 13,114 Cash-settled awards 695 53 469 Total long-term incentive compensation $ 10,157 $ 8,230 $ 13,583 The stock compensation related income tax benefit recognized by the Company in 2020, 2019, and 2018 was $0.9 million, $1.8 million, and $2.6 million, respectively. Equity Awards Restricted Stock Units During 2020, 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 2020, in general, vest ratably over three 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 granted prior to 2018, for 2020 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, February 1, 2020 4,260 $ 4.78 Granted 5,143 $ 1.73 Vested (1,392) $ 5.32 Forfeited (921) $ 3.50 Unvested, January 30, 2021 7,090 $ 2.63 The total fair value of RSUs and restricted stock that vested was $7.4 million, $12.2 million, and $13.8 million, during 2020, 2019, and 2018, respectively. As of January 30, 2021, there was approximately $11.4 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 1.4 years. Stock Options During 2020, the Company did not grant stock options. The expense for stock options is recognized using the straight-line attribution method. The Company's activity with respect to stock options during 2020 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 1, 2020 3,650 $ 7.67 Granted — $ — Exercised — $ — Forfeited or expired (326) $ 18.15 Outstanding, January 30, 2021 3,324 $ 6.65 7.0 $ 7,888 Expected to vest at January 30, 2021 2,038 $ 2.69 8.4 $ 6,833 Exercisable at January 30, 2021 1,255 $ 13.17 4.6 $ 952 The following provides additional information regarding the Company's stock options: 2020 2019 2018 (in thousands, except per share amounts) Weighted average grant date fair value of options granted N/A $ 1.25 N/A Total intrinsic value of options exercised N/A $ — N/A As of January 30, 2021, there was approximately $1.2 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.3 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: 2020 2019 2018 Risk-free interest rate (1) N/A 1.93 % N/A Price Volatility (2) N/A 47.27 % N/A Expected term (years) (3) N/A 6.29 N/A Dividend yield (4) N/A — 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 year vesting period. The performance conditions of the award include adjusted diluted earnings per share ("EPS") targets and total shareholder return (TSR) of the Company’s common stock relative to a select group of peer companies. A Monte Carlo valuation model was used to determine the fair value of the awards. The TSR performance metric is a market condition. Therefore, fair value of the awards is fixed at the measurement date and is not revised based on actual performance. The number of shares that will ultimately vest will change based on estimates of the Company’s adjusted EPS performance in relation to the pre-established targets. As of January 30, 2021, it is estimated that none of the shares granted in 2018 will vest based on the performance against predefined financial targets to date. Cash-Settled Awards Time-Based Cash-Settled Awards During 2020, the Company granted time-based cash-settled awards to employees that vest ratably over three years. These awards are classified as liabilities, are valued based on the fair value of the award at the grant date and do not vary based on changes in the Company's stock price or performance. The expense related to these awards will be recognized using the straight-line attribution method over this vesting period. As of January 30, 2021, $3.1 million of total unrecognized compensation cost is expected to be recognized on cash-settled awards over a weighted-average period of 1.6 years. Performance-Based Cash-Settled Awards During 2019 and 2018, the Company granted cash-settled awards to a limited number of senior executive-level employees. These awards are classified as liabilities, are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite period up until date of settlement. The amount of cash earned could range between 0% and 200% of the target amount depending upon performance achieved over the three-year vesting period. The performance conditions of the award include EPS targets and TSR of the Company’s common stock relative to a select group of peer companies. A Monte Carlo valuation model is used to determine the fair value of the awards. As of January 30, 2021, it is estimated that none of the performance-based cash-settled awards granted in 2019 and 2018 will vest based on the performance against predefined financial targets to date. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9 | 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: 2020 2019 2018 (in thousands) Weighted-average shares - basic 64,624 66,133 72,518 Dilutive effect of stock options, restricted stock units, and restricted stock — — 721 Weighted-average shares - diluted 64,624 66,133 73,239 Equity awards representing 10.6 million, 7.5 million, and 3.4 million shares of common stock were excluded from the computation of diluted earnings per share for 2020, 2019, and 2018, respectively, as the inclusion of these awards would have been anti-dilutive. Additionally, for 2020, 0.2 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 January 30, 2021. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | NOTE 10 | 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 $3.4 million, $4.2 million, and $4.1 million in 2020, 2019, and 2018, 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 |
Jan. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 | 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. In August 2018, former associate Leticia Rosete filed suit in Los Angeles County Superior Court for the State of California alleging violations of California state wage and hour statutes and other labor standard violations (including claims for discrimination, harassment, retaliation, etc.). The lawsuit seeks unspecified monetary damages and attorneys’ fees. On January 29, 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 January 30, 2021, 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 |
Jan. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | NOTE 12 | RESTRUCTURING COSTS 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 January 30, 2021, approximately $0.5 million remains in accrued expenses on the Consolidated Balance Sheet and will be paid out in 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
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, eCommerce 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 Adopted 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, 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" in this note below. The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables, prepaid expenses, and payables as of January 30, 2021 and February 1, 2020 approximated their fair values. |
Receivables, Net | Receivables, Net Receivables, net consist primarily of non-income tax CARES Act receivable, 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 January 30, 2021 and February 1, 2020 was $14.5 million and $10.4 million, respectively. The Company also records an inventory shrink reserve for estimated merchandise inventory losses between the last physical inventory count and the balance sheet date. This estimate is based on management's analysis of historical results. |
Advertising | Advertising Advertising production costs are expensed at the time the promotion first appears in media, stores, or on the website. Total advertising expense totaled $110.6 million, $114.7 million, and $123.1 million in 2020, 2019, and 2018, 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. Store Asset Impairment Property and equipment, including the right of use 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, an impairment test is required. These events include, but are not limited to, material adverse changes in projected revenues and cost of goods sold (exclusive of buying and occupancy costs), present cash flow losses combined with a history of cash flow losses and a forecast that demonstrates significant continuing losses, significant negative economic conditions, a significant decrease in the market value of an asset and store closure or relocation decisions. The reviews are conducted at the store level, the lowest identifiable level of cash flow. Stores that display an indicator of impairment are subjected to an impairment assessment. Such stores are tested for recoverability by comparing the sum of the estimated future undiscounted cash flows to the carrying amount of the asset. This recoverability test requires management to make assumptions and judgments related, but not limited, to management’s expectations for future cash flows from operating the store. ▪ The key assumptions used in the undiscounted future store cash flow models include sales growth rate and gross margin, exclusive of buying and occupancy costs. An impairment loss may be recognized when these undiscounted future cash flows are less than the carrying amount of the asset group. In the circumstance of impairment, any loss would be measured as the excess of the carrying amount of the asset group over its fair value. Fair value of the store-related assets is determined at the individual store level based on the highest and best use of the asset group. • The key assumptions used in the fair value analysis may include discounted estimates of future store cash flows from operating the store and/or comparable market rents. As a result of the COVID-19 pandemic, which included temporary store closures and a related decline in sales beginning in March 2020 and continuing through the remainder of the year, the Company concluded that a triggering event had occurred. Consequently, the Company performed impairment testing. As a result of this testing, during 2020, the Company recognized impairment charges as follows: 2020 2019 2018 (in thousands) Right of use asset impairment $ 25,117 $ 1,289 $ — Property and equipment asset impairment 9,263 3,141 818 Total asset impairment $ 34,380 $ 4,430 $ 818 Impairment charges are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. |
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 was 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, 2019 and 2020 as the result of an accrual of a non-cash preferred yield. This investment was assessed for impairment whenever factors indicated 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. During 2020, the Company wrote off the remaining $2.7 million of its investment, inclusive of the $1.5 million preferred yield within other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. In addition, in 2020 and 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 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. During the third quarter of 2020, the Company sold all of its interest in Homage, LLC back to Homage, LLC in exchange for a promissory note payable to the Company in the principal amount of $1.5 million. The Company has recorded a reserve against the full value of this promissory note. |
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. The Company considers all available evidence, both positive and negative, when evaluating whether deferred tax assets are realizable. Such factors include past operating results, taxable income in prior carryback years, future reversal of existing temporary differences, prudent and feasible tax planning strategies, and forecasts of future operating income. The past operating results is given more weight than expectations of future profitability, which is inherently uncertain. The assumptions utilized in determining future taxable income require significant judgment and actual operating results in future years could differ from the Company’s current assumptions and estimates. 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 $0.7 million and $0.8 million as of January 30, 2021 and February 1, 2020, respectively, and is included in accrued expenses 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. |
Revenue Recognition | Revenue Recognition The following is information regarding the Company's major product categories and sales channels: 2020 2019 2018 (in thousands) Apparel $ 1,033,140 $ 1,736,700 $ 1,828,836 Accessories and other 132,069 216,152 222,611 Other revenue 43,165 66,342 64,897 Total net sales $ 1,208,374 $ 2,019,194 $ 2,116,344 2020 2019 2018 (in thousands) Retail $ 860,613 $ 1,467,261 $ 1,616,123 Outlet 304,596 485,591 435,324 Other revenue 43,165 66,342 64,897 Total net sales $ 1,208,374 $ 2,019,194 $ 2,116,344 Merchandise returns are reflected in the accounting records of the channel where they are physically returned. Other revenue consists primarily of revenue earned from our private label credit card agreement, shipping and handling revenue related to eCommerce activity, sell-off revenue related to marked-out-of-stock inventory sales to third parties, 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 eCommerce 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 that 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. 2020 2019 (in thousands) Beginning balance loyalty deferred revenue $ 14,063 $ 15,319 Revenue recognized (5,112) (1,256) Ending balance loyalty deferred revenue $ 8,951 $ 14,063 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 $6.4 million and $9.1 million as of January 30, 2021 and February 1, 2020, 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 eCommerce 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 $23.5 million, and $24.1 million as of January 30, 2021 and February 1, 2020, 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 unredeemed gift cards to relevant jurisdictions. The gift card breakage rate is based on historical redemption patterns. Gift card breakage is included within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2020 2019 (in thousands) Beginning gift card liability $ 24,142 $ 25,133 Issuances 25,996 43,028 Redemptions (24,027) (40,527) Gift card breakage (2,633) (3,492) Ending gift card liability $ 23,478 $ 24,142 Private Label Credit Card The Company has an agreement with Comenity Bank (the “Bank”) to provide customers with private label credit cards (the “Card Agreement”) which 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 eCommerce 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 within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. The Company also receives reimbursement funds from the Bank for certain 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 private label credit cards are recorded within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. In connection with the Card Agreement, the Bank agreed to pay the Company a $20.0 million refundable payment which the Company recognized upon receipt as deferred revenue within other long-term liabilities in the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January 2018. As of January 30, 2021, the deferred revenue balance of $11.3 million will be recognized over the remaining term of the amended Card Agreement within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2020 2019 (in thousands) Beginning balance refundable payment liability $ 14,150 $ 17,028 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 11,272 $ 14,150 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, eCommerce fulfillment, rent, common area maintenance, real estate taxes, utilities, maintenance, and depreciation for stores. |
Selling, General and Administrative Expenses | Selling, General, and Administrative Expenses Selling, general, and administrative expenses include all operating costs not included in cost of goods sold, buying and occupancy costs, with the exception of proceeds received from insurance claims and gain/loss on disposal of assets, which are included in other operating expense, net. These costs include payroll and other expenses related to operations at our corporate home office, store expenses other than occupancy, and marketing expenses |
Other Operating Expense, Net | Other Operating Expense, Net Other operating expense, net primarily consists of gains/losses on disposal of assets, excess proceeds from the settlement of insurance claims and the write off of certain costs associated with aborted debt negotiations. |
Other Expense, Net | Other Expense, Net Other expense, net primarily consists of the pre-tax write-off of our 2016 investment in Homage, LLC. |
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 | 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 $3.4 million, $4.2 million, and $4.1 million in 2020, 2019, and 2018, respectively. |
Description of Business and B_2
Description of Business and Basis of Presentation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Description of Business and Basis of Presentation [Abstract] | |
Schedule of Fiscal Period | All references herein to the Company's fiscal years are as follows: Fiscal Year Year Ended Number of Weeks 2020 January 30, 2021 52 2019 February 1, 2020 52 2018 February 2, 2019 52 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
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 January 30, 2021 and February 1, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall. January 30, 2021 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 35,964 $ — $ — February 1, 2020 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 188,182 $ — $ — |
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: 2020 2019 2018 (in thousands) Apparel $ 1,033,140 $ 1,736,700 $ 1,828,836 Accessories and other 132,069 216,152 222,611 Other revenue 43,165 66,342 64,897 Total net sales $ 1,208,374 $ 2,019,194 $ 2,116,344 2020 2019 2018 (in thousands) Retail $ 860,613 $ 1,467,261 $ 1,616,123 Outlet 304,596 485,591 435,324 Other revenue 43,165 66,342 64,897 Total net sales $ 1,208,374 $ 2,019,194 $ 2,116,344 |
Schedule of Contract with Customer, Liability | 2020 2019 (in thousands) Beginning balance loyalty deferred revenue $ 14,063 $ 15,319 Revenue recognized (5,112) (1,256) Ending balance loyalty deferred revenue $ 8,951 $ 14,063 2020 2019 (in thousands) Beginning gift card liability $ 24,142 $ 25,133 Issuances 25,996 43,028 Redemptions (24,027) (40,527) Gift card breakage (2,633) (3,492) Ending gift card liability $ 23,478 $ 24,142 2020 2019 (in thousands) Beginning balance refundable payment liability $ 14,150 $ 17,028 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 11,272 $ 14,150 |
Schedule of Impairment Charges | As a result of this testing, during 2020, the Company recognized impairment charges as follows: 2020 2019 2018 (in thousands) Right of use asset impairment $ 25,117 $ 1,289 $ — Property and equipment asset impairment 9,263 3,141 818 Total asset impairment $ 34,380 $ 4,430 $ 818 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of: January 30, 2021 February 1, 2020 (in thousands) Building improvements $ 16,206 $ 16,206 Furniture, fixtures and equipment, and software 552,412 525,720 Leasehold improvements 396,668 406,183 Construction in process 3,304 30,719 Other 812 811 Total 969,402 979,639 Less: accumulated depreciation (789,204) (731,309) Property and equipment, net $ 180,198 $ 248,330 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
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: 2020 2019 (in thousands) Operating lease costs $ 272,896 $ 280,166 Variable and short-term lease costs 60,925 65,535 Total lease costs $ 333,821 $ 345,701 Total lease costs for 2018 were $356.8 million. Supplemental cash flow information related to leases is as follows: 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 197,824 $ 279,092 Right-of-use assets obtained in exchange for operating lease liabilities $ 44,433 $ 39,851 |
Balance Sheet Supplemental Disclosures, Lessee | Supplemental balance sheet information related to leases is as follows: 2020 2019 Operating leases: Weighted average remaining lease term (in years) 5.1 5.7 Weighted average discount rate 5.4 % 4.8 % |
Operating Lease Maturity | 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 January 30, 2021: January 30, 2021 (in thousands) 2021 $ 229,299 2022 228,188 2023 200,719 2024 154,197 2025 115,812 Thereafter 132,843 Total minimum lease payments 1,061,058 Less: amount of lease payments representing interest 134,668 Present value of future minimum lease payments 926,390 Less: current obligations under leases 203,441 Long-term lease obligations $ 722,949 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision (benefit) for income taxes consists of the following: 2020 2019 2018 Current: (in thousands) U.S. federal $ (109,627) $ (602) $ 7,644 U.S. state and local (1,240) (363) 2,480 Total (110,867) (965) 10,124 Deferred: U.S. federal 37,292 (39,272) 371 U.S. state and local 17,675 (10,289) 165 Total 54,967 (49,561) 536 Income tax (benefit)/expense $ (55,900) $ (50,526) $ 10,660 |
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: 2020 2019 2018 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 5.2 % 3.4 % 13.2 % Change in uncertain tax positions 0.1 % 0.4 % (1.5) % Share-based compensation (0.3) % (1.3) % 5.5 % Non-deductible executive compensation (0.2) % (0.4) % 13.8 % Change in valuation allowance (22.9) % (0.1) % 6.3 % Change in tax law 9.1 % — % (1.0) % Tax credits 0.1 % 0.3 % (5.0) % Other items, net — % 0.2 % 0.2 % Effective tax rate 12.1 % 23.5 % 52.5 % |
Schedule of Deferred Tax Assets and Liabilities | The following table provides the effect of temporary differences that created deferred income taxes as of January 30, 2021 and February 1, 2020. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carry-forwards at the end of the respective periods. January 30, 2021 February 1, 2020 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 10,478 $ 9,984 Lease liability 249,819 304,942 Intangible assets 24,592 26,059 Inventory 1,154 1,974 Deferred revenue 7,582 9,040 Net operating losses, tax credit and other carryforwards 51,204 2,265 Valuation allowance (108,418) (2,313) Total deferred tax assets 236,411 351,951 Deferred tax liabilities: Prepaid expenses 3,861 3,702 Right of use asset 210,796 268,779 Other 1,200 464 Property and equipment 20,554 24,039 Total deferred tax liabilities 236,411 296,984 Net deferred tax asset $ — $ 54,967 |
Deferred Tax Assets, Net Classification | The following table summarizes the presentation of the Company’s net deferred tax assets on the Consolidated Balance Sheets: January 30, 2021 February 1, 2020 (in thousands) Deferred tax assets $ — $ 54,973 Other long-term liabilities — (6) Net deferred tax assets $ — $ 54,967 |
Summary of Valuation Allowance | The following table summarizes the changes in the valuation allowance: 2020 2019 2018 (in thousands) Valuation allowance, beginning of year $ 2,313 $ 2,108 $ 832 Changes in related gross deferred tax assets/liabilities 410 — — Charge 105,695 205 1,276 Valuation allowance, end of year $ 108,418 $ 2,313 $ 2,108 |
Unrecognized Tax Benefits Rollforward | A reconciliation of the beginning to ending unrecognized tax benefits is as follows: January 30, 2021 February 1, 2020 February 2, 2019 (in thousands) Unrecognized tax benefits, beginning of year $ 1,305 $ 1,928 $ 2,398 Gross addition for tax positions of the current year — — 42 Gross addition for tax positions of the prior year 327 300 — Settlements — (2) — Reduction for tax positions of prior years — (240) (28) Lapse of statute of limitations (244) (681) (484) Unrecognized tax benefits, end of year $ 1,388 $ 1,305 $ 1,928 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company's outstanding debt as of the dates indicated: January 30, 2021 February 1, 2020 (in thousands) Term Loan Facility $ 90,000 $ — Revolving Facility 106,050 — Total outstanding borrowings 196,050 — Less: unamortized debt issuance costs (4,018) — Total debt, net 192,032 — Less: current portion of long-term debt — — Long-term debt, net $ 192,032 $ — Outstanding letters of credit $ 36,099 $ 12,742 |
Schedule of Maturities of Long-term Debt | Maturities of the Term Loan Facility during the next five fiscal years and thereafter are as follows: January 30, 2021 (in thousands) 2021 $ — 2022 4,500 2023 4,500 2024 81,000 2025 — Thereafter — Total $ 90,000 |
Long-Term Incentive Compensat_2
Long-Term Incentive Compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Shared-based Compensation Expense | The following summarizes long-term incentive compensation expense: 2020 2019 2018 (in thousands) Restricted stock units and restricted stock $ 8,220 $ 7,956 $ 10,982 Stock options 1,242 795 1,564 Performance-based restricted stock units — (574) 568 Total share-based compensation $ 9,462 $ 8,177 $ 13,114 Cash-settled awards 695 53 469 Total long-term incentive compensation $ 10,157 $ 8,230 $ 13,583 |
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 granted prior to 2018, for 2020 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, February 1, 2020 4,260 $ 4.78 Granted 5,143 $ 1.73 Vested (1,392) $ 5.32 Forfeited (921) $ 3.50 Unvested, January 30, 2021 7,090 $ 2.63 |
Schedule of Stock Options Activity | The Company's activity with respect to stock options during 2020 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 1, 2020 3,650 $ 7.67 Granted — $ — Exercised — $ — Forfeited or expired (326) $ 18.15 Outstanding, January 30, 2021 3,324 $ 6.65 7.0 $ 7,888 Expected to vest at January 30, 2021 2,038 $ 2.69 8.4 $ 6,833 Exercisable at January 30, 2021 1,255 $ 13.17 4.6 $ 952 |
Supplemental Stock Options Information | The following provides additional information regarding the Company's stock options: 2020 2019 2018 (in thousands, except per share amounts) Weighted average grant date fair value of options granted N/A $ 1.25 N/A Total intrinsic value of options exercised N/A $ — 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: 2020 2019 2018 Risk-free interest rate (1) N/A 1.93 % N/A Price Volatility (2) N/A 47.27 % N/A Expected term (years) (3) N/A 6.29 N/A Dividend yield (4) N/A — 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 |
Jan. 30, 2021 | |
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: 2020 2019 2018 (in thousands) Weighted-average shares - basic 64,624 66,133 72,518 Dilutive effect of stock options, restricted stock units, and restricted stock — — 721 Weighted-average shares - diluted 64,624 66,133 73,239 |
Description of Business and B_3
Description of Business and Basis of Presentation - Narrative (Details) $ in Thousands | Mar. 17, 2020USD ($) | Feb. 03, 2019USD ($) | Mar. 25, 2021USD ($) | Jan. 30, 2021USD ($)storesegment | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) |
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores under franchise agreements | store | 7 | ||||||
Number of operating segments | segment | 1 | ||||||
Operating lease, right-of-use asset | $ 797,785 | $ 1,010,216 | |||||
Operating lease, liability | 926,390 | ||||||
Net reduction of retained earnings related to ASC 842 adoption | (9,689) | (406,302) | $ (585,178) | $ (648,314) | |||
Right of use assets, impaired | 25,117 | 1,289 | 0 | ||||
Net (loss)/income | (405,449) | (164,358) | 9,630 | ||||
Operating cash flow | (323,626) | 90,710 | 73,717 | ||||
Proceeds from borrowings under the revolving credit facility | 165,000 | 0 | 0 | ||||
Proceeds from borrowings under the term loan facility | 90,000 | 0 | 0 | ||||
Repayment of borrowings under the revolving credit facility | 58,950 | 0 | 0 | ||||
Income tax receivable | 111,342 | 3,000 | |||||
Term Loan Facility | Secured Debt | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Proceeds from borrowings under the term loan facility | 90,000 | ||||||
Term Loan Facility | Secured Debt | Subsequent Event | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Proceeds from borrowings under the term loan facility | $ 50,000 | ||||||
Revolving Credit Facility | Revolving Credit Facility | Line of Credit | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Proceeds from borrowings under the revolving credit facility | $ 165,000 | 165,000 | |||||
Repayment of borrowings under the revolving credit facility | 59,000 | ||||||
Adoption of ASC Topic 842 | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Operating lease, right-of-use asset | $ 1,200,000 | ||||||
Operating lease, liability | 1,300,000 | ||||||
Right of use assets, impaired | $ 1,200 | ||||||
Retained Earnings | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Net reduction of retained earnings related to ASC 842 adoption | (114,732) | (533,690) | (713,864) | $ (704,395) | |||
Net (loss)/income | (405,449) | $ (164,358) | 9,630 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Net reduction of retained earnings related to ASC 842 adoption | 5,482 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Net reduction of retained earnings related to ASC 842 adoption | $ 5,500 | $ 5,482 | |||||
Retail And Factory Outlet | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores | store | 500 | ||||||
Retail | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores | store | 360 | ||||||
Outlet | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores | store | 210 |
Description of Business and B_4
Description of Business and Basis of Presentation - Fiscal Period (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fiscal period duration | 364 days | 364 days | 364 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
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 | $ 7.5 | $ 10.9 |
Outstanding checks not yet presented for payment | $ 32.1 | $ 7 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Money market funds - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 35,964 | $ 188,182 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Level 3 | ||
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 | Jan. 30, 2021 | Feb. 01, 2020 |
Accounting Policies [Abstract] | ||
Lower of cost or market adjustment to inventory | $ 14.5 | $ 10.4 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 110.6 | $ 114.7 | $ 123.1 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) | 12 Months Ended |
Jan. 30, 2021 | |
Software, including software developed for internal use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Software, including software developed for internal use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Store related assets and other property and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Store related assets and other property and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 6 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Store Asset Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Accounting Policies [Abstract] | |||
Right of use asset impairment | $ 25,117 | $ 1,289 | $ 0 |
Property and equipment asset impairment | 9,263 | 3,141 | 818 |
Total asset impairment | $ 34,380 | $ 4,430 | $ 818 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Investment in Equity Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 28, 2017 | |
Accounting Policies [Abstract] | |||||||
Investment in Homage, LLC | $ 10,100 | ||||||
Increase in equity method investment during period | $ 500 | $ 500 | $ 500 | ||||
Equity method investment impairment | $ 500 | $ 2,700 | 3,233 | $ 500 | $ 8,400 | ||
Equity method investment preferred yield | $ 1,500 | ||||||
Notes receivable acquired on equity method investment interest | $ 1,500 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Accounting Policies [Abstract] | ||
Income tax liability | $ 0.7 | $ 0.8 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Revenue by Major Product Categories and Sales Channels (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,208,374 | $ 2,019,194 | $ 2,116,344 |
Redemption period for rewards earned | 60 days | ||
Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,033,140 | 1,736,700 | 1,828,836 |
Accessories and other | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 132,069 | 216,152 | 222,611 |
Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 43,165 | 66,342 | 64,897 |
Retail | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 860,613 | 1,467,261 | 1,616,123 |
Outlet | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 304,596 | $ 485,591 | $ 435,324 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Loyalty Program, Sales Returns Reserve and Gift Cards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Sales returns reserve | $ 6,400 | $ 9,100 |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 38,227 | |
Ending balance | 32,430 | 38,227 |
Loyalty Program | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 14,063 | 15,319 |
Increase (decrease) in gift card liability | (5,112) | (1,256) |
Ending balance | 8,951 | 14,063 |
Beginning gift card liability | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 24,142 | 25,133 |
Ending balance | 23,478 | 24,142 |
Issuances | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | 25,996 | 43,028 |
Redemptions | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | (24,027) | (40,527) |
Gift card breakage | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | $ (2,633) | $ (3,492) |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Private Label Credit Card Narrative (Details) - Comenity Bank - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Aug. 28, 2017 |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 11,272 | $ 14,150 | $ 17,028 | |
Credit Card | ||||
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 - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Beginning balance refundable payment liability | $ 14,150 | $ 17,028 |
Recognized in revenue | (2,878) | (2,878) |
Ending balance refundable payment liability | $ 11,272 | $ 14,150 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 969,402 | $ 979,639 | |
Less: accumulated depreciation | (789,204) | (731,309) | |
Property and equipment, net | 180,198 | 248,330 | |
Depreciation | 76,100 | 87,900 | $ 88,200 |
Building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 16,206 | 16,206 | |
Furniture, fixtures and equipment, and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 552,412 | 525,720 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 396,668 | 406,183 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,304 | 30,719 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 812 | $ 811 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021USD ($)renewal_option | Feb. 02, 2019USD ($) | Feb. 01, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Accrued minimum rent | $ 56.3 | $ 3.2 | |
Lease costs | $ 356.8 | ||
Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Number of renewal options | renewal_option | 1 | ||
Lease renewal term | 5 years | ||
Minimum | Retail | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 5 years | ||
Minimum | Equipment And Other Assets | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 3 years | ||
Maximum | Retail | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 10 years | ||
Maximum | Equipment And Other Assets | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 5 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 272,896 | $ 280,166 |
Variable and short-term lease costs | 60,925 | 65,535 |
Total lease costs | $ 333,821 | $ 345,701 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 197,824 | $ 279,092 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 44,433 | $ 39,851 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 5 years 1 month 6 days | 5 years 8 months 12 days |
Weighted average discount rate | 5.40% | 4.80% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
2021 | $ 229,299 | |
2022 | 228,188 | |
2023 | 200,719 | |
2024 | 154,197 | |
2025 | 115,812 | |
Thereafter | 132,843 | |
Total minimum lease payments | 1,061,058 | |
Less: amount of lease payments representing interest | 134,668 | |
Present value of future minimum lease payments | 926,390 | |
Less: current obligations under leases | 203,441 | $ 226,174 |
Long-term lease obligations | $ 722,949 | $ 897,304 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Current: | |||
U.S. federal | $ (109,627) | $ (602) | $ 7,644 |
U.S. state and local | (1,240) | (363) | 2,480 |
Total | (110,867) | (965) | 10,124 |
Deferred: | |||
U.S. federal | 37,292 | (39,272) | 371 |
U.S. state and local | 17,675 | (10,289) | 165 |
Total | 54,967 | (49,561) | 536 |
Income tax (benefit)/expense | $ (55,900) | $ (50,526) | $ 10,660 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax effect | 5.20% | 3.40% | 13.20% |
Change in uncertain tax positions | 0.10% | 0.40% | (1.50%) |
Share-based compensation | (0.30%) | (1.30%) | 5.50% |
Non-deductible executive compensation | (0.20%) | (0.40%) | 13.80% |
Change in valuation allowance | (22.90%) | (0.10%) | 6.30% |
Change in tax law | 9.10% | 0.00% | (1.00%) |
Tax credits | 0.10% | 0.30% | (5.00%) |
Other items, net | 0.00% | 0.20% | 0.20% |
Effective tax rate | 12.10% | 23.50% | 52.50% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets: | ||||
Accrued expenses and deferred compensation | $ 10,478 | $ 9,984 | ||
Lease liability | 249,819 | 304,942 | ||
Intangible assets | 24,592 | 26,059 | ||
Inventory | 1,154 | 1,974 | ||
Deferred revenue | 7,582 | 9,040 | ||
Net operating losses, tax credit and other carryforwards | 51,204 | 2,265 | ||
Valuation allowance | (108,418) | (2,313) | $ (2,108) | $ (832) |
Total deferred tax assets | 236,411 | 351,951 | ||
Deferred tax liabilities: | ||||
Prepaid expenses | 3,861 | 3,702 | ||
Right of use asset | 210,796 | 268,779 | ||
Other | 1,200 | 464 | ||
Property and equipment | 20,554 | 24,039 | ||
Total deferred tax liabilities | 236,411 | 296,984 | ||
Net deferred tax asset | $ 0 | $ 54,967 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carryforwards, domestic | $ 92,800 | ||
Deferred tax assets, operating loss carryforwards, state and local | 490,000 | ||
Deferred tax assets, capital loss carryforwards | 10,200 | ||
Net operating losses, tax credit and other carryforwards | 51,204 | $ 2,265 | |
Deferred tax assets, tax credit carryforwards, foreign | 100 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,400 | 1,300 | $ 1,900 |
Net interest in tax expense related to interest and penalties | (100) | (100) | $ 100 |
Accrued interest on unrecognized benefits | 400 | 500 | |
Resolution of federal and state tax examinations could reduce the Company's unrecognized tax benefits | 100 | ||
IRS | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses, tax credit and other carryforwards | 3,800 | ||
Uncertain tax positions | 200 | 700 | |
Interest accrued | $ 200 | $ 300 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 0 | $ 54,973 |
Other long-term liabilities | 0 | (6) |
Net deferred tax asset | $ 0 | $ 54,967 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning of year | $ 2,313 | $ 2,108 | $ 832 |
Changes in related gross deferred tax assets/liabilities | 410 | 0 | 0 |
Charge | 105,695 | 205 | 1,276 |
Valuation allowance, end of year | $ 108,418 | $ 2,313 | $ 2,108 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 1,305 | $ 1,928 | $ 2,398 |
Gross addition for tax positions of the current year | 0 | 0 | 42 |
Gross addition for tax positions of the prior year | 327 | 300 | 0 |
Settlements | 0 | (2) | 0 |
Reduction for tax positions of prior years | 0 | (240) | (28) |
Lapse of statute of limitations | (244) | (681) | (484) |
Unrecognized tax benefits, end of year | $ 1,388 | $ 1,305 | $ 1,928 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||
Total outstanding borrowings | $ 196,050 | $ 0 |
Less: unamortized debt issuance costs | (4,018) | 0 |
Total debt, net | 192,032 | 0 |
Less: current portion of long-term debt | 0 | 0 |
Long-term debt, net | 192,032 | 0 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 90,000 | 0 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 106,050 | 0 |
Letters of credit outstanding | $ 36,099 | $ 12,742 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jan. 13, 2021 | Mar. 17, 2020 | Mar. 25, 2021 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Oct. 31, 2020 | May 24, 2019 |
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 196,050,000 | $ 0 | ||||||
Proceeds from debt drawn down | 90,000,000 | 0 | $ 0 | |||||
Proceeds from borrowings under the revolving credit facility | 165,000,000 | 0 | 0 | |||||
Repayment of borrowings under the revolving credit facility | 58,950,000 | 0 | $ 0 | |||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 90,000,000 | 0 | ||||||
Secured Debt | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 140,000,000 | |||||||
Debt, covenant, minimum excess availability, amount | $ 25,000,000 | |||||||
Debt, covenant, minimum excess availability, percentage | 10.00% | |||||||
Debt default, principal, additional interest rate | 2.00% | |||||||
Debt default, base rate loans, additional interest rate | 2.00% | |||||||
Borrowings outstanding | 90,000,000 | |||||||
Debt, fair value | 90,100,000 | |||||||
Proceeds from debt drawn down | $ 90,000,000 | |||||||
Secured Debt | Term Loan Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from debt drawn down | $ 50,000,000 | |||||||
Secured Debt | FILO Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 90,000,000 | |||||||
Stated interest rate | 1.25% | |||||||
Effective interest rate | 9.00% | |||||||
Deferred financing costs | $ 4,100,000 | |||||||
Secured Debt | Delayed Draw Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 50,000,000 | |||||||
Secured Debt | Delayed Draw Term Loan Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from debt drawn down | 50,000,000 | |||||||
Deferred financing costs | $ 2,300,000 | |||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Term Loan Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Pricing margin | 8.00% | |||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Term Loan Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Pricing margin | 8.25% | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 106,050,000 | 0 | ||||||
Letters of credit outstanding | 36,099,000 | 12,742,000 | ||||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Proceeds from borrowings under the revolving credit facility | $ 165,000,000 | 165,000,000 | ||||||
Line of credit, borrowings outstanding | $ 165,000,000 | |||||||
Repayment of borrowings under the revolving credit facility | 59,000,000 | |||||||
Line of Credit | Revolving Credit Facility | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 12,700,000 | |||||||
Line of Credit | Revolving Credit Facility | Trade Letter Of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | $ 0 | |||||||
Line of Credit | Amended Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Debt, covenant, minimum excess availability, amount | $ 25,000,000 | |||||||
Debt, covenant, minimum excess availability, percentage | 10.00% | |||||||
Debt default, principal, additional interest rate | 2.00% | |||||||
Debt default, base rate loans, additional interest rate | 2.00% | |||||||
Debt, fair value | 106,100,000 | |||||||
Line of credit, borrowings outstanding | 106,100,000 | |||||||
Line of credit, remaining borrowing capacity | 35,600,000 | |||||||
Line of Credit | Amended Revolving Credit Facility | Revolving Credit Facility | Unused Capacity, Commitment Fee Percentage, One | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee payable | 0.375% | |||||||
Unused line fee payable, trigger borrowing base in excess of availability | 50.00% | |||||||
Line of Credit | Amended Revolving Credit Facility | Revolving Credit Facility | Unused Capacity, Commitment Fee Percentage, Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee payable | 0.20% | |||||||
Unused line fee payable, trigger borrowing base in excess of availability | 50.00% | |||||||
Line of Credit | Amended Revolving Credit Facility | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 36,100,000 | |||||||
Line of Credit | Amended Revolving Credit Facility | Trade Letter Of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | $ 0 | |||||||
Expiration term for trade letters of credit | 21 days | |||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | Amended Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 2.80% | |||||||
Line of credit, borrowings outstanding | $ 105,000,000 | |||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | Amended Revolving Credit Facility | Revolving Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Pricing margin | 2.00% | |||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | Amended Revolving Credit Facility | Revolving Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Pricing margin | 2.25% | |||||||
Line of Credit | Base Rate | Amended Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 4.50% | |||||||
Line of credit, borrowings outstanding | $ 1,100,000 | |||||||
Line of Credit | Base Rate | Amended Revolving Credit Facility | Revolving Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Pricing margin | 1.00% | |||||||
Line of Credit | Base Rate | Amended Revolving Credit Facility | Revolving Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Pricing margin | 1.25% |
Debt - Maturity (Details)
Debt - Maturity (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||
Total debt, net | $ 192,032 | $ 0 |
Secured Debt | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
2021 | 0 | |
2022 | 4,500 | |
2023 | 4,500 | |
2024 | 81,000 | |
2025 | 0 | |
Thereafter | 0 | |
Total debt, net | $ 90,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions | Apr. 20, 2020$ / shares | Jan. 30, 2021USD ($)right$ / shares | Feb. 01, 2020USD ($)$ / sharesshares | Feb. 02, 2019USD ($)shares | Nov. 28, 2017USD ($) |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 150,000,000 | ||||
Treasury stock, value, acquired | $ 626,000 | $ 17,213,000 | $ 85,881,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 34,200,000 | ||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Number of rights issued per common stock | right | 1 | ||||
Minimum ownership percentage which would cause triggering event | 10.00% | ||||
Minimum ownership percentage for certain passive investors which would cause triggering event | 20.00% | ||||
Stockholder right, exercise discount percentage | 50.00% | ||||
Minimum ownership percentage grandfathered from triggering event | 10.00% | ||||
2017 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury stock, acquired (in shares) | shares | 4.3 | 10 | |||
Treasury stock, value, acquired | $ 15,600,000 | $ 83,200,000 |
Long-Term Incentive Compensat_3
Long-Term Incentive Compensation - Cost by Award Type (Details) - USD ($) $ in Thousands, shares in Millions | Mar. 17, 2020 | Jun. 13, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in shares available for equity-based awards (in shares) | 2.5 | 2.4 | |||
Share-based compensation | $ 9,462 | $ 8,177 | $ 13,114 | ||
Long-term incentive compensation | 10,157 | 8,230 | 13,583 | ||
Tax benefit from share-based compensation expense | 900 | 1,800 | 2,600 | ||
Restricted stock units and restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | 8,220 | 7,956 | 10,982 | ||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | 1,242 | 795 | 1,564 | ||
Performance-based restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | 0 | (574) | 568 | ||
Cash-settled awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Long-term incentive compensation | $ 695 | $ 53 | $ 469 |
Long-Term Incentive Compensat_4
Long-Term Incentive Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Restricted Stock and Restricted Stock Units [Line Items] | |||
Award vesting period | 3 years | ||
Restricted stock units and restricted stock | |||
Number of Shares | |||
Awards Unvested at beginning of period (in shares) | 4,260 | ||
Awards Granted (in shares) | 5,143 | ||
Awards Vested (in shares) | (1,392) | ||
Awards Forfeited (in shares) | (921) | ||
Awards Unvested at end of period (in shares) | 7,090 | 4,260 | |
Grant Date Weighted Average Fair Value | |||
Awards, grant date weighted average fair value at beginning of period (in USD per share) | $ 4.78 | ||
Awards, grant date weighted average fair value, shares granted (in USD per share) | 1.73 | ||
Awards, grant date weighted average fair value, shares vested (in USD per share) | 5.32 | ||
Awards, grant date weighted average fair value, shares forfeited (in USD per share) | 3.50 | ||
Awards, grant date weighted average fair value at end of period (in USD per share) | $ 2.63 | $ 4.78 | |
Fair value of options vested | $ 7.4 | $ 12.2 | $ 13.8 |
Unrecognized share-based compensation expense | $ 11.4 | ||
Weighted-average period | 1 year 4 months 24 days |
Long-Term Incentive Compensat_5
Long-Term Incentive Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Number of Shares | ||
Stock Options Outstanding at beginning of period (in shares) | 3,650 | |
Stock Options Granted (in shares) | 0 | |
Stock Options Exercised (in shares) | 0 | |
Stock Options Forfeited or expired (in shares) | (326) | |
Stock Options Outstanding at end of period (in shares) | 3,324 | 3,650 |
Stock Options Expected to vest at end of period (in shares) | 2,038 | |
Stock Options Exercisable at end of period (in shares) | 1,255 | |
Grant Date Weighted Average Exercise Price | ||
Grant Date Weighted Average Exercise Price of Options Outstanding at beginning of period (in USD per share) | $ 7.67 | |
Grant Date Weighted Average Exercise Price of Options Granted (in USD per share) | 0 | |
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) | 18.15 | |
Grant Date Weighted Average Exercise Price of Options Outstanding at end of period (in USD per share) | 6.65 | $ 7.67 |
Grant Date Weighted Average Exercise Price of Options Expected to vest at end of period (in USD per share) | 2.69 | |
Grant Date Weighted Average Exercise Price of Options Exercisable at end of period (in USD per share) | $ 13.17 | |
Weighted-Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life of Options Outstanding | 7 years | |
Weighted Average Remaining Contractual Life of Options Expected to vest at end of period | 8 years 4 months 24 days | |
Weighted Average Remaining Contractual Life of Options Exercisable at end of period | 4 years 7 months 6 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value of Options Outstanding at end of period | $ 7,888 | |
Aggregate Intrinsic Value of Options Expected to vest at end of period | 6,833 | |
Aggregate Intrinsic Value of Options Exercisable at end of period | $ 952 | |
Company's Stock Options | ||
Weighted average grant date fair value of options granted (in USD per share) | $ 1.25 | |
Total intrinsic value of options exercised | $ 0 |
Long-Term Incentive Compensat_6
Long-Term Incentive Compensation - Unrecognized Compensation Expense and Period for Recognition (Details) - Stock options $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Unrecognized Compensation Expense and Period for Recognition [Line Items] | |
Unrecognized share-based compensation expense | $ 1.2 |
Period for recognition | 1 year 3 months 18 days |
Long-Term Incentive Compensat_7
Long-Term Incentive Compensation - Weighted-Average Assumptions (Details) - Stock Option | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.93% |
Price volatility | 47.27% |
Expected term | 6 years 3 months 14 days |
Dividend yield | 0.00% |
Long-Term Incentive Compensat_8
Long-Term Incentive Compensation - Performance-based Restricted Stock Units (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Performance shares, restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Shares outstanding (in shares) | 0 |
Performance shares, restricted stock units | Minimum | |
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 shares, restricted stock units | Maximum | |
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% |
Time-Based Cash-Settled Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Unrecognized compensation costs | $ | $ 3.1 |
Period for recognition | 1 year 7 months 6 days |
Performance-based cash-settled awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Expected to vest (in shares) | 0 |
Performance-based cash-settled awards | Minimum | |
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 cash-settled awards | Maximum | |
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 | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average shares - basic (in shares) | 64,624 | 66,133 | 72,518 |
Dilutive effect of stock options, restricted stock units, and restricted stock (in shares) | 0 | 0 | 721 |
Weighted-average shares - diluted (in shares) | 64,624 | 66,133 | 73,239 |
Potentially dilutive securities (in shares) | 10,600 | 7,500 | 3,400 |
Performance-based restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 200 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 05, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Retirement Benefits [Abstract] | ||||
Employee contributions percentage (up to) | 15.00% | |||
Employer match | $ 3.4 | $ 4.2 | $ 4.1 | |
Outstanding participant balances paid | $ 25.6 |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring costs | $ 7,300 | $ 0 | $ 7,337 | $ 166 |
Restructuring costs unpaid | $ 500 | $ 500 |