Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 31, 2021 | Aug. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34742 | |
Entity Registrant Name | EXPRESS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2828128 | |
Entity Address, Address Line One | 1 Express Drive | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43230 | |
City Area Code | 614 | |
Local Phone Number | 474-4001 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | EXPR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Outstanding (in shares) | 66,977,963 | |
Entity Central Index Key | 0001483510 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 33,852 | $ 55,874 |
Receivables, net | 10,470 | 14,556 |
Income tax receivable | 53,892 | 111,342 |
Inventories | 266,593 | 264,360 |
Prepaid rent | 4,891 | 7,883 |
Other | 14,415 | 20,495 |
Total current assets | 384,113 | 474,510 |
Right of Use Asset, Net | 704,909 | 797,785 |
Property and Equipment | 963,089 | 969,402 |
Less: accumulated depreciation | (806,040) | (789,204) |
Property and equipment, net | 157,049 | 180,198 |
Other Assets | 4,309 | 5,964 |
TOTAL ASSETS | 1,250,380 | 1,458,457 |
Current Liabilities: | ||
Short-term lease liability | 212,659 | 203,441 |
Accounts payable | 156,896 | 150,230 |
Deferred revenue | 29,674 | 32,430 |
Short-term debt | 8,966 | 0 |
Accrued expenses | 111,854 | 128,952 |
Total current liabilities | 520,049 | 515,053 |
Long-Term Lease Liability | 624,582 | 722,949 |
Long-Term Debt | 109,207 | 192,032 |
Other Long-Term Liabilities | 20,036 | 18,734 |
Total Liabilities | 1,273,874 | 1,448,768 |
Commitments and Contingencies (Note 9) | ||
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 July 31, 2021 and January 30, 2021, respectively, and 66,972 shares and 64,971 shares outstanding at July 31, 2021 and January 30, 2021, respectively | 936 | 936 |
Additional paid-in capital | 216,409 | 222,141 |
Retained earnings | 57,422 | 114,732 |
Treasury stock – at average cost; 26,660 shares and 28,661 shares at July 31, 2021 and January 30, 2021, respectively | (298,261) | (328,120) |
Total stockholders’ (deficit)/equity | (23,494) | 9,689 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,250,380 | $ 1,458,457 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jul. 31, 2021 | Jan. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 93,632,000 | 93,632,000 |
Common stock, outstanding (in shares) | 66,972,000 | 64,971,000 |
Treasury stock (in shares) | 26,660,000 | 28,661,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 457,627 | $ 245,703 | $ 803,386 | $ 455,978 |
Cost of Goods Sold, Buying and Occupancy Costs | 308,320 | 289,760 | 575,275 | 546,242 |
GROSS PROFIT/(LOSS) | 149,307 | (44,057) | 228,111 | (90,264) |
Operating Expenses: | ||||
Selling, general, and administrative expenses | 134,562 | 92,805 | 253,955 | 191,970 |
Other operating income, net | (31) | (568) | (64) | (661) |
TOTAL OPERATING EXPENSES | 134,531 | 92,237 | 253,891 | 191,309 |
OPERATING INCOME/(LOSS) | 14,776 | (136,294) | (25,780) | (281,573) |
Interest Expense, Net | 4,115 | 1,023 | 9,367 | 1,079 |
Other Expense, Net | 0 | 0 | 0 | 2,733 |
INCOME/(LOSS) BEFORE INCOME TAXES | 10,661 | (137,317) | (35,147) | (285,385) |
Income Tax Expense/(Benefit) | 22 | (29,547) | (62) | (23,565) |
NET INCOME/(LOSS) | 10,639 | (107,770) | (35,085) | (261,820) |
COMPREHENSIVE INCOME/(LOSS) | $ 10,639 | $ (107,770) | $ (35,085) | $ (261,820) |
EARNINGS PER SHARE: | ||||
Basic (in USD per share) | $ 0.16 | $ (1.67) | $ (0.53) | $ (4.07) |
Diluted (in USD per share) | $ 0.15 | $ (1.67) | $ (0.53) | $ (4.07) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic (in shares) | 66,527 | 64,645 | 65,863 | 64,338 |
Diluted (in shares) | 69,565 | 64,645 | 65,863 | 64,338 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance, at start of period (in shares) at Feb. 01, 2020 | 63,922,000 | |||||
Balance, at start of period at Feb. 01, 2020 | $ 406,302 | $ 936 | $ 215,207 | $ 533,690 | $ 0 | $ (343,531) |
Balance, at start of period, treasury stock (in shares) at Feb. 01, 2020 | 29,710,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (154,050) | (154,050) | ||||
Exercise of stock options and restricted stock (in shares) | 802,000 | 802,000 | ||||
Exercise of stock options and restricted stock | 0 | (1,609) | (7,659) | $ 9,268 | ||
Share-based compensation | 2,502 | 2,502 | ||||
Repurchase of common stock (in shares) | 268,000 | 268,000 | ||||
Repurchase of common stock | (540) | $ (540) | ||||
Balance, at end of period (in shares) at May. 02, 2020 | 64,456,000 | |||||
Balance, at end of period at May. 02, 2020 | 254,214 | $ 936 | 216,100 | 371,981 | 0 | $ (334,803) |
Balance, at end of period, treasury stock (in shares) at May. 02, 2020 | 29,176,000 | |||||
Balance, at start of period (in shares) at Feb. 01, 2020 | 63,922,000 | |||||
Balance, at start of period at Feb. 01, 2020 | 406,302 | $ 936 | 215,207 | 533,690 | 0 | $ (343,531) |
Balance, at start of period, treasury stock (in shares) at Feb. 01, 2020 | 29,710,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (261,820) | |||||
Repurchase of common stock (in shares) | 0 | |||||
Balance, at end of period (in shares) at Aug. 01, 2020 | 64,830,000 | |||||
Balance, at end of period at Aug. 01, 2020 | $ 148,876 | $ 936 | 217,828 | 260,529 | 0 | $ (330,417) |
Balance, at end of period, treasury stock (in shares) at Aug. 01, 2020 | 28,802,000 | |||||
Balance, at start of period (in shares) at May. 02, 2020 | 64,456,000 | |||||
Balance, at start of period at May. 02, 2020 | 254,214 | $ 936 | 216,100 | 371,981 | 0 | $ (334,803) |
Balance, at start of period, treasury stock (in shares) at May. 02, 2020 | 29,176,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (107,770) | (107,770) | ||||
Exercise of stock options and restricted stock (in shares) | 386,000 | 386,000 | ||||
Exercise of stock options and restricted stock | 0 | (732) | (3,682) | $ 4,414 | ||
Share-based compensation | $ 2,460 | 2,460 | ||||
Repurchase of common stock (in shares) | 0 | 12,000 | 12,000 | |||
Repurchase of common stock | $ (28) | $ (28) | ||||
Balance, at end of period (in shares) at Aug. 01, 2020 | 64,830,000 | |||||
Balance, at end of period at Aug. 01, 2020 | $ 148,876 | $ 936 | 217,828 | 260,529 | 0 | $ (330,417) |
Balance, at end of period, treasury stock (in shares) at Aug. 01, 2020 | 28,802,000 | |||||
Balance, at start of period (in shares) at Jan. 30, 2021 | 64,971,000 | 64,971,000 | ||||
Balance, at start of period at Jan. 30, 2021 | $ 9,689 | $ 936 | 222,141 | 114,732 | 0 | $ (328,120) |
Balance, at start of period, treasury stock (in shares) at Jan. 30, 2021 | 28,661,000 | 28,661,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (45,724) | (45,724) | ||||
Exercise of stock options and restricted stock (in shares) | 1,934,000 | 1,934,000 | ||||
Exercise of stock options and restricted stock | 0 | (6,477) | (15,659) | $ 22,136 | ||
Share-based compensation | 2,523 | 2,523 | ||||
Repurchase of common stock (in shares) | 647,000 | 647,000 | ||||
Repurchase of common stock | (2,167) | $ (2,167) | ||||
Balance, at end of period (in shares) at May. 01, 2021 | 66,258,000 | |||||
Balance, at end of period at May. 01, 2021 | $ (35,679) | $ 936 | 218,187 | 53,349 | 0 | $ (308,151) |
Balance, at end of period, treasury stock (in shares) at May. 01, 2021 | 27,374,000 | |||||
Balance, at start of period (in shares) at Jan. 30, 2021 | 64,971,000 | 64,971,000 | ||||
Balance, at start of period at Jan. 30, 2021 | $ 9,689 | $ 936 | 222,141 | 114,732 | 0 | $ (328,120) |
Balance, at start of period, treasury stock (in shares) at Jan. 30, 2021 | 28,661,000 | 28,661,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (35,085) | |||||
Repurchase of common stock (in shares) | 0 | |||||
Balance, at end of period (in shares) at Jul. 31, 2021 | 66,972,000 | 66,972,000 | ||||
Balance, at end of period at Jul. 31, 2021 | $ (23,494) | $ 936 | 216,409 | 57,422 | 0 | $ (298,261) |
Balance, at end of period, treasury stock (in shares) at Jul. 31, 2021 | 26,660,000 | 26,660,000 | ||||
Balance, at start of period (in shares) at May. 01, 2021 | 66,258,000 | |||||
Balance, at start of period at May. 01, 2021 | $ (35,679) | $ 936 | 218,187 | 53,349 | 0 | $ (308,151) |
Balance, at start of period, treasury stock (in shares) at May. 01, 2021 | 27,374,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 10,639 | 10,639 | ||||
Exercise of stock options and restricted stock (in shares) | 998,000 | 998,000 | ||||
Exercise of stock options and restricted stock | 0 | (4,659) | (6,566) | $ 11,225 | ||
Share-based compensation | $ 2,881 | 2,881 | ||||
Repurchase of common stock (in shares) | 0 | 284,000 | 284,000 | |||
Repurchase of common stock | $ (1,335) | $ (1,335) | ||||
Balance, at end of period (in shares) at Jul. 31, 2021 | 66,972,000 | 66,972,000 | ||||
Balance, at end of period at Jul. 31, 2021 | $ (23,494) | $ 936 | $ 216,409 | $ 57,422 | $ 0 | $ (298,261) |
Balance, at end of period, treasury stock (in shares) at Jul. 31, 2021 | 26,660,000 | 26,660,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (35,085) | $ (261,820) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 35,866 | 37,323 |
Loss on disposal of property and equipment | 0 | 1 |
Impairment of property, equipment and lease assets | 0 | 21,483 |
Equity method investment impairment | 0 | 3,233 |
Share-based compensation | 5,404 | 4,962 |
Deferred taxes | 0 | 63,621 |
Landlord allowance amortization | (172) | (208) |
Other non-cash adjustments | 0 | (500) |
Changes in operating assets and liabilities: | ||
Receivables, net | 4,086 | (7,982) |
Income tax receivable | 57,450 | (85,724) |
Inventories | (2,233) | (11,999) |
Accounts payable, deferred revenue, and accrued expenses | (12,896) | 75,588 |
Other assets and liabilities | 15,171 | (8,361) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 67,591 | (170,383) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (10,558) | (10,130) |
NET CASH USED IN INVESTING ACTIVITIES | (10,558) | (10,130) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowings under the revolving credit facility | 38,000 | 165,000 |
Repayment of borrowings under the revolving credit facility | (119,050) | 0 |
Proceeds from borrowings under the term loan facility | 50,000 | 0 |
Repayment of borrowings under the term loan facility | (43,263) | 0 |
Proceeds on financing arrangements | 0 | 2,548 |
Repayments of financing arrangements | (769) | (712) |
Costs incurred in connection with debt arrangements | (471) | 0 |
Repurchase of common stock for tax withholding obligations | (3,502) | (568) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (79,055) | 166,268 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (22,022) | (14,245) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 55,874 | 207,139 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 33,852 | $ 192,894 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [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 566 retail and factory outlet stores in the United States and Puerto Rico, as well as an online store. As of July 31, 2021, Express operated 360 primarily mall-based retail stores in the United States and Puerto Rico as well as 206 factory outlet stores. Fiscal Year The Company's fiscal year ends on the Saturday closest to January 31. Fiscal years are designated in the unaudited Consolidated Financial Statements and Notes, as well as the remainder of this Quarterly Report, 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 2021 January 29, 2022 52 2020 January 30, 2021 52 All references herein to “the second quarter of 2021” and “the second quarter of 2020” represent the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively. Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and the U.S. Securities and Exchange Commission’s Article 10, Regulation S-X and therefore do not include all of the information or footnotes required for complete financial statements. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments (which are of a normal recurring nature) necessary to state fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for 2021. Therefore, these statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended January 30, 2021, included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 25, 2021. Principles of Consolidation The unaudited Consolidated Financial Statements include the accounts of Express, Inc. 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 and eCommerce operations. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited 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 unaudited Consolidated Financial Statements. Actual results may differ from those estimates. The Company revises its estimates and assumptions as new information becomes available. Management's Assessment The Company has seen significant recovery in sales and profitability in the first half of 2021 with continued improvement into the third quarter and continues to be in compliance with the financial covenants under its Revolving Credit Facility and Term Loan Facility (as defined below). Based upon the improved results in the first half of 2021, the terms of the Term Loan Facility and the Revolving Credit Facility and the cash conservation and cost reduction measures taken to date, the Company is projecting sufficient liquidity to fund future operations and to meet its obligations as they become due for at least one year following the date that these unaudited Consolidated Financial Statements are issued. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 2 | REVENUE RECOGNITION The following is information regarding the Company’s major product categories and sales channels: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Apparel $ 404,961 $ 207,421 $ 709,233 $ 387,004 Accessories and other 40,896 25,888 73,119 47,268 Other revenue 11,770 12,394 21,034 21,706 Total net sales $ 457,627 $ 245,703 $ 803,386 $ 455,978 Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Retail $ 315,836 $ 164,745 $ 562,067 $ 324,282 Outlet 130,021 68,564 220,285 109,990 Other revenue 11,770 12,394 21,034 21,706 Total net sales $ 457,627 $ 245,703 $ 803,386 $ 455,978 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. 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 unaudited 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. 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 unaudited Consolidated Balance Sheets. Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Beginning balance loyalty deferred revenue $ 8,273 $ 9,585 $ 8,951 $ 14,063 Reduction in revenue/(revenue recognized) 541 284 (137) (4,194) Ending balance loyalty deferred revenue $ 8,814 $ 9,869 $ 8,814 $ 9,869 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. The sales returns reserve was $9.9 million and $6.4 million as of July 31, 2021 and January 30, 2021, respectively, and is included in accrued expenses on the unaudited Consolidated Balance Sheets. The asset related to projected returned merchandise is included in other assets on the unaudited 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 $20.7 million and $23.5 million, as of July 31, 2021 and January 30, 2021, respectively, and is included in deferred revenue on the unaudited 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. Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Beginning gift card liability $ 21,587 $ 21,728 $ 23,478 $ 24,142 Issuances 5,761 4,353 9,839 8,393 Redemptions (6,074) (4,728) (11,299) (10,146) Gift card breakage (540) (488) (1,284) (1,524) Ending gift card liability $ 20,734 $ 20,865 $ 20,734 $ 20,865 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. 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 of 2018. As of July 31, 2021, the deferred revenue balance of $9.8 million will be recognized over the remaining term of the amended Card Agreement within the other revenue component of net sales. Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Beginning balance refundable payment liability $ 10,553 $ 13,431 $ 11,272 $ 14,150 Recognized in revenue (720) (720) (1,439) (1,439) Ending balance refundable payment liability $ 9,833 $ 12,711 $ 9,833 $ 12,711 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 3 | 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: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Weighted-average shares - basic 66,527 64,645 65,863 64,338 Dilutive effect of stock options and restricted stock units 3,038 — — — Weighted-average shares - diluted 69,565 64,645 65,863 64,338 Equity awards representing 1.1 million and 8.8 million shares of common stock were excluded from the computation of diluted earnings per share for the thirteen and twenty-six weeks ended July 31, 2021, respectively, as the inclusion of these awards would have been anti-dilutive. Equity awards representing 11.3 million and 10.4 million shares of common stock were excluded from the computation of diluted earnings per share for the thirteen and twenty-six weeks ended August 1, 2020, respectively, as the inclusion of these awards would have been anti-dilutive. Additionally, for the thirteen weeks ended July 31, 2021, approximately 1.5 million shares were excluded from the computation of diluted weighted average shares because the number of shares that will ultimately be issued is contingent on the Company’s performance compared to pre-established performance goals which have not been achieved as of July 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4 | 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, recorded in cash and cash equivalents on the unaudited Consolidated Balance Sheets, measured at fair value on a recurring basis as of July 31, 2021 and January 30, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall. July 31, 2021 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 4,742 $ — $ — January 30, 2021 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 35,964 $ — $ — The money market funds are valued using quoted market prices in active markets. The carrying amounts reflected on the unaudited Consolidated Balance Sheets for the remaining cash and cash equivalents, receivables, prepaid expenses, and payables as of July 31, 2021 and January 30, 2021 approximated their fair values. Non-Financial Assets 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. During the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020, the Company recognized impairment charges as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Right of use asset impairment $ — $ 5,874 $ — $ 15,562 Property and equipment asset impairment — 931 — 5,921 Total asset impairment $ — $ 6,805 $ — $ 21,483 Impairment charges are recorded in cost of goods sold, buying and occupancy costs in the unaudited Consolidated Statements of Income and Comprehensive Income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5 | INCOME TAXES The provision for income taxes is based on a current estimate of the annual effective tax rate, adjusted to reflect the effect of discrete items. The Company’s effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including the estimate of annual pre-tax income, the related changes in the estimate, and the effect of discrete items. The impact of these items on the effective tax rate will be greater at lower levels of pre-tax earnings. The Company evaluates whether deferred tax assets are realizable on a quarterly basis. The Company considers all available positive and negative evidence, including past operating results and expectations of future operating income. Accordingly, the Company continues to maintain a full valuation allowance on deferred tax assets as of July 31, 2021. On March 27, 2020, the Coronavirus Aid Relief and Economic Security (“CARES”) Act was enacted into law. The CARES Act includes several provisions that impact the Company such as 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 Company’s effective tax rate was 0.2% and 21.5% for the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively. The effective tax rate for the thirteen weeks ended July 31, 2021 is driven by changes to the Company's full year forecasted effective tax rate due to improved operational forecast offset by a reduction to the forecasted valuation allowance needed for the current year results. The effective tax rate for the thirteen weeks ended August 1, 2020 reflects the impact of recording an additional valuation allowance of $16.2 million valuation allowance against 2020 U.S. federal and state taxes and other tax credits of which a portion relates to 2020 U.S. federal net operating losses that could not be carried back to offset taxable income in the five-year carryback period as part of the CARES Act. This was partially offset by $9.1 million of tax benefit related to the portion of the 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. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 6 | 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 have 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. 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. 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 unaudited Consolidated Balance Sheets. Accrued minimum rent as of July 31, 2021 and January 30, 2021, was $17.3 million and $56.3 million, respectively. Supplemental cash flow information related to leases is as follows: Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 146,563 $ 70,707 Right-of-use assets obtained in exchange for operating lease liabilities $ 41,951 $ 17,893 |
Debt
Debt | 6 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 7 | DEBT The following table summarizes the Company's outstanding debt as of the dates indicated: July 31, 2021 January 30, 2021 (in thousands) Term Loan Facility $ 96,737 $ 90,000 Revolving Facility 25,000 106,050 Total outstanding borrowings 121,737 196,050 Less: unamortized debt issuance costs (3,564) (4,018) Total debt, net 118,173 192,032 Less: current portion of long-term debt 8,966 — Long-term debt, net $ 109,207 $ 192,032 Outstanding letters of credit $ 34,486 $ 36,099 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. During the first quarter of 2021, the Company drew down the additional $50.0 million under the DDTL and repaid $12.4 million with proceeds from 2020 CARES Act tax refunds, as required under the Term Loan Facility. During the second quarter of 2021, the Company paid an additional $30.9 million payment on the DDTL with proceeds from CARES Act refunds. As of July 31, 2021, the Company had $6.7 million in borrowings outstanding under the DDTL and $90.0 million in borrowings outstanding under the Term Loan Facility. The fair value of the $96.7 million total borrowings outstanding under the Term Loan Facility at July 31, 2021 was $95.6 million. 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, 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 defined below), 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 July 31, 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) the 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. The Company recorded deferred financing costs associated with the issuance of the Term Loan Facility. The unamortized balance is $3.6 million as of July 31, 2021. These costs will be amortized over the respective contractual terms of the Term Loan Facility or written off ratably as the Term Loan Facility is extinguished. The Company’s Term Loan debt is presented on the Consolidated Balance Sheets, net of the unamortized fees. 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 $250.0 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 July 31, 2021, the interest rate on the outstanding borrowings of $25.0 million at LIBOR was approximately 2.8%. 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. During the second quarter of 2021, the Company repaid $80.0 million on the Revolving Credit Facility. As of July 31, 2021, the Company had $25.0 million in borrowings outstanding under the Revolving Credit Facility and approximately $137.2 million remained available for borrowing under the Revolving Credit Facility after giving effect to outstanding letters of credit in the amount of $34.5 million and subject to certain borrowing base limitations as further discussed above. The fair value of the Revolving Credit Facility at July 31, 2021 was $25.1 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 July 31, 2021 and January 30, 2021, 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 July 31, 2021 and January 30, 2021, outstanding stand-by LCs totaled $34.5 million and $36.1 million, respectively. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | NOTE 8 | SHARE-BASED COMPENSATION The Company records the fair value of share-based payments to employees in the unaudited Consolidated Statements of Income and Comprehensive Income within selling, general, and administrative expenses 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 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: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Restricted stock units $ 1,642 $ 2,143 $ 3,657 $ 4,327 Stock options 250 317 550 635 Performance-based restricted stock units 989 — 1,197 — Total share-based compensation $ 2,881 $ 2,460 $ 5,404 $ 4,962 Cash-settled awards 3,097 364 4,639 (7) Total long-term incentive compensation $ 5,978 $ 2,824 $ 10,043 $ 4,955 The stock compensation related income tax benefit, excluding consideration of valuation allowances, recognized by the Company during the thirteen and twenty-six weeks ended July 31, 2021 was $1.6 million and $3.6 million, respectively. The stock compensation related income tax benefit, excluding consideration of valuation allowances, recognized by the Company during the thirteen and twenty-six weeks ended August 1, 2020 was $0.2 million and $0.7 million, respectively. The valuation allowances associated with these tax benefits were $1.6 million and $3.6 million for the thirteen and twenty-six weeks ended July 31, 2021, respectively. There were no valuation allowances associated with the tax benefits for the thirteen and twenty-six weeks ended August 1, 2020, respectively. Equity Awards Restricted Stock Units During the twenty-six weeks ended July 31, 2021, the Company granted restricted stock units (“RSUs”) under the 2018 Plan. The fair value of 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 2021 vest ratably over one The Company’s activity with respect to RSUs, including awards with performance conditions granted prior to 2018, for the twenty-six weeks ended July 31, 2021 was as follows: Number of Shares Grant Date (in thousands, except per share amounts) Unvested - January 30, 2021 7,090 $ 2.63 Granted 169 $ 5.56 Vested (2,931) $ 2.81 Forfeited (271) $ 2.82 Unvested - July 31, 2021 4,057 $ 2.61 The total fair value of RSUs that vested during the twenty-six weeks ended July 31, 2021 and August 1, 2020 was $8.2 million and $6.6 million, respectively. As of July 31, 2021, there was approximately $8.4 million of total unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a remaining weighted-average period of approximately 1.2 years. Stock Options The Company’s activity with respect to stock options during the twenty-six weeks ended July 31, 2021 was as follows: Number of Shares Grant Date Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding - January 30, 2021 3,324 $ 6.65 Granted — $ — Exercised — $ — Forfeited or expired (294) $ 17.24 Outstanding - July 31, 2021 3,030 $ 5.62 7.0 $ 4,849 Expected to vest at July 31, 2021 551 $ 2.64 7.9 $ 1,141 Exercisable at July 31, 2021 2,465 $ 6.30 6.8 $ 3,678 As of July 31, 2021, there was approximately $0.7 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over a remaining weighted average period of approximately 1.5 years. Performance-Based Restricted Stock Units During the twenty-six weeks ended July 31, 2021, the Company granted 1.5 million 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 a three-year vesting period beginning on the first day of the Company's 2021 fiscal year and ending on the last day of the Company's 2023 fiscal year. These awards 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 performance condition of the award is adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"). The number of shares that will are expected to vest will change based on estimates of the Company’s Adjusted EBITDA performance in relation to the pre-established targets. As of July 31, 2021, $9.4 million of total unrecognized compensation cost is expected to be recognized on performance-based restricted stock units over a remaining weighted-average period of 2.7 years. Cash-Settled Awards Time-Based Cash-Settled Awards During the twenty-six weeks ended July 31, 2021 and August 1, 2020, the Company granted time-based cash-settled awards to employees that vest ratably over three years. These awards are classified as liabilities and do not vary based on changes in the Company's stock price or performance. The expense related to these awards will be accrued using a straight-line method over this vesting period. As of July 31, 2021, $11.6 million of total unrecognized compensation cost is expected to be recognized on cash-settled awards over a remaining weighted-average period of 1.7 years. Performance-Based Cash-Settled Awards In March 2020, the Company granted performance-based cash-settled awards to a limited number of senior executive-level employees. Due to the significant disruption caused by the COVID-19 pandemic on the Company’s business operations, as well as its adverse impact on consumer confidence and demand, the Committee determined that it could not set meaningful multi-year performance targets given the uncertain economic conditions. Accordingly, the Committee delayed setting performance targets for the 2020 long-term performance-based awards until February 2021 when it believed it had a clearer outlook on the Company’s expected long-term performance. These awards are classified as liabilities, with the amount to be paid out estimated each reporting period. Expense is 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 a two-year performance period commencing on the first day of the Company’s 2021 fiscal year and ending on the last day of the Company’s 2022 fiscal year. The performance condition of the award is Adjusted EBITDA. The amount of cash earned will change based on estimates of the Company’s Adjusted EBITDA performance in relation to the pre-established targets. As of July 31, 2021, $9.2 million of total unrecognized compensation cost is expected to be recognized on performance-based cash-settled awards. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 | 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 as defendants 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 Ms. Leticia Rosete filed suit in Los Angeles County Superior Court for the State of California naming certain subsidiaries of the Company as defendants in a representative action alleging violations of California state wage and hour statutes and other labor standard violations (including claims for discrimination, harassment, retaliation, etc.). Subsequent to July 31, 2021, the Rosete case was settled. 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 July 31, 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. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 10 | 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. During the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020, the Company did not repurchase shares of its common stock. As of July 31, 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 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 common stock. Existing 10% or greater stockholders are grandfathered to the extent of their April 21, 2020 ownership levels. The Rights Agreement expired on April 19, 2021. ATM Equity Offering On June 3, 2021, the Company entered into an ATM Equity Offering Sales Agreement (the "Sales Agreement") with BofA Securities, Inc. ("BofA"), as the sales agent to sell up to 15.0 million shares of the Company's common stock, par value $0.01 per share, through an “at-the-market” offering program. Such shares are issued pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-253368). Sales of the shares are made by means of ordinary brokers’ transactions on The New York Stock Exchange at market prices or as otherwise agreed by the Company and BofA. During the thirteen weeks ended July 31, 2021, the Company did not sell any shares under the Sales Agreement. The Company intends to use net proceeds, if any, from the sale of the common stock pursuant to the Sales Agreement for general corporate purposes, which may include investments in working capital, or capital expenditures, including the acceleration of investments to grow and enhance its eCommerce channel and omni-channel assets, the repayment of indebtedness, and other investments. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year The Company's fiscal year ends on the Saturday closest to January 31. Fiscal years are designated in the unaudited Consolidated Financial Statements and Notes, as well as the remainder of this Quarterly Report, 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 2021 January 29, 2022 52 2020 January 30, 2021 52 All references herein to “the second quarter of 2021” and “the second quarter of 2020” represent the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively. |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and the U.S. Securities and Exchange Commission’s Article 10, Regulation S-X and therefore do not include all of the information or footnotes required for complete financial statements. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments (which are of a normal recurring nature) necessary to state fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for 2021. Therefore, these statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended January 30, 2021, included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 25, 2021. |
Principles of Consolidation | Principles of ConsolidationThe unaudited Consolidated Financial Statements include the accounts of Express, Inc. 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 and eCommerce 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 GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited 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 unaudited Consolidated Financial |
Revenue Recognition | 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 unaudited 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. 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 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. The sales returns reserve was $9.9 million and $6.4 million as of July 31, 2021 and January 30, 2021, respectively, and is included in accrued expenses on the unaudited Consolidated Balance Sheets. The asset related to projected returned merchandise is included in other assets on the unaudited 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 $20.7 million and $23.5 million, as of July 31, 2021 and January 30, 2021, respectively, and is included in deferred revenue on the unaudited 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. 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. The Company also receives reimbursement funds from the Bank for certain expenses the Company incurs. These |
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. The carrying amounts reflected on the unaudited Consolidated Balance Sheets for the remaining cash and cash equivalents, receivables, prepaid expenses, and payables as of July 31, 2021 and January 30, 2021 approximated their fair values. Non-Financial Assets 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. |
Leases | 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. 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. |
Share-Based Compensation | The Company records the fair value of share-based payments to employees in the unaudited Consolidated Statements of Income and Comprehensive Income within selling, general, and administrative expenses 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 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. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Fiscal Period | All references herein to the Company's fiscal years are as follows: Fiscal Year Year Ended Number of Weeks 2021 January 29, 2022 52 2020 January 30, 2021 52 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Major Product Categories and Sales Channels | The following is information regarding the Company’s major product categories and sales channels: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Apparel $ 404,961 $ 207,421 $ 709,233 $ 387,004 Accessories and other 40,896 25,888 73,119 47,268 Other revenue 11,770 12,394 21,034 21,706 Total net sales $ 457,627 $ 245,703 $ 803,386 $ 455,978 Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Retail $ 315,836 $ 164,745 $ 562,067 $ 324,282 Outlet 130,021 68,564 220,285 109,990 Other revenue 11,770 12,394 21,034 21,706 Total net sales $ 457,627 $ 245,703 $ 803,386 $ 455,978 |
Schedule of Contract with Customer, Liability | Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Beginning balance loyalty deferred revenue $ 8,273 $ 9,585 $ 8,951 $ 14,063 Reduction in revenue/(revenue recognized) 541 284 (137) (4,194) Ending balance loyalty deferred revenue $ 8,814 $ 9,869 $ 8,814 $ 9,869 Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Beginning gift card liability $ 21,587 $ 21,728 $ 23,478 $ 24,142 Issuances 5,761 4,353 9,839 8,393 Redemptions (6,074) (4,728) (11,299) (10,146) Gift card breakage (540) (488) (1,284) (1,524) Ending gift card liability $ 20,734 $ 20,865 $ 20,734 $ 20,865 Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Beginning balance refundable payment liability $ 10,553 $ 13,431 $ 11,272 $ 14,150 Recognized in revenue (720) (720) (1,439) (1,439) Ending balance refundable payment liability $ 9,833 $ 12,711 $ 9,833 $ 12,711 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides a reconciliation between basic and diluted weighted-average shares used to calculate basic and diluted earnings per share: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Weighted-average shares - basic 66,527 64,645 65,863 64,338 Dilutive effect of stock options and restricted stock units 3,038 — — — Weighted-average shares - diluted 69,565 64,645 65,863 64,338 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following table presents the Company’s financial assets, recorded in cash and cash equivalents on the unaudited Consolidated Balance Sheets, measured at fair value on a recurring basis as of July 31, 2021 and January 30, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall. July 31, 2021 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 4,742 $ — $ — January 30, 2021 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 35,964 $ — $ — |
Schedule of Impairment Charges | During the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020, the Company recognized impairment charges as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Right of use asset impairment $ — $ 5,874 $ — $ 15,562 Property and equipment asset impairment — 931 — 5,921 Total asset impairment $ — $ 6,805 $ — $ 21,483 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information on Leases | Supplemental cash flow information related to leases is as follows: Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 146,563 $ 70,707 Right-of-use assets obtained in exchange for operating lease liabilities $ 41,951 $ 17,893 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company's outstanding debt as of the dates indicated: July 31, 2021 January 30, 2021 (in thousands) Term Loan Facility $ 96,737 $ 90,000 Revolving Facility 25,000 106,050 Total outstanding borrowings 121,737 196,050 Less: unamortized debt issuance costs (3,564) (4,018) Total debt, net 118,173 192,032 Less: current portion of long-term debt 8,966 — Long-term debt, net $ 109,207 $ 192,032 Outstanding letters of credit $ 34,486 $ 36,099 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Shared-based Compensation Expense | The following summarizes long-term incentive compensation expense: Thirteen Weeks Ended Twenty-Six Weeks Ended July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 (in thousands) Restricted stock units $ 1,642 $ 2,143 $ 3,657 $ 4,327 Stock options 250 317 550 635 Performance-based restricted stock units 989 — 1,197 — Total share-based compensation $ 2,881 $ 2,460 $ 5,404 $ 4,962 Cash-settled awards 3,097 364 4,639 (7) Total long-term incentive compensation $ 5,978 $ 2,824 $ 10,043 $ 4,955 |
Schedule of Activity related to Restricted Stock Units, Including Awards with Performance Conditions | The Company’s activity with respect to RSUs, including awards with performance conditions granted prior to 2018, for the twenty-six weeks ended July 31, 2021 was as follows: Number of Shares Grant Date (in thousands, except per share amounts) Unvested - January 30, 2021 7,090 $ 2.63 Granted 169 $ 5.56 Vested (2,931) $ 2.81 Forfeited (271) $ 2.82 Unvested - July 31, 2021 4,057 $ 2.61 |
Schedule of Activity related to Stock Options | The Company’s activity with respect to stock options during the twenty-six weeks ended July 31, 2021 was as follows: Number of Shares Grant Date Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding - January 30, 2021 3,324 $ 6.65 Granted — $ — Exercised — $ — Forfeited or expired (294) $ 17.24 Outstanding - July 31, 2021 3,030 $ 5.62 7.0 $ 4,849 Expected to vest at July 31, 2021 551 $ 2.64 7.9 $ 1,141 Exercisable at July 31, 2021 2,465 $ 6.30 6.8 $ 3,678 |
Description of Business and B_4
Description of Business and Basis of Presentation - Fiscal Period (Details) | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Description of Business and Basis of Presentation [Line Items] | ||
Fiscal period duration | 364 days | |
Forecast | ||
Description of Business and Basis of Presentation [Line Items] | ||
Fiscal period duration | 364 days |
Description of Business and B_5
Description of Business and Basis of Presentation - Narrative (Details) | 6 Months Ended |
Jul. 31, 2021storesegment | |
Description of Business and Basis of Presentation [Line Items] | |
Number of stores | 566 |
Number of operating segments | segment | 1 |
Retail | |
Description of Business and Basis of Presentation [Line Items] | |
Number of stores | 360 |
Outlet | |
Description of Business and Basis of Presentation [Line Items] | |
Number of stores | 206 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Major Product Categories and Sales Channels (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 457,627 | $ 245,703 | $ 803,386 | $ 455,978 |
Apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 404,961 | 207,421 | 709,233 | 387,004 |
Accessories and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 40,896 | 25,888 | 73,119 | 47,268 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 315,836 | 164,745 | 562,067 | 324,282 |
Outlet | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 130,021 | 68,564 | 220,285 | 109,990 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 11,770 | $ 12,394 | $ 21,034 | $ 21,706 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Aug. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||
Redemption period for rewards earned | 60 days | ||||||
Sales returns reserve | $ 9,900 | $ 6,400 | |||||
Gift card liability | 29,674 | 32,430 | |||||
Gift Card Liability | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Gift card liability | 20,734 | $ 21,587 | 23,478 | $ 20,865 | $ 21,728 | $ 24,142 | |
Comenity Bank | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Deferred revenue | 9,833 | $ 10,553 | $ 11,272 | $ 12,711 | $ 13,431 | $ 14,150 | |
Comenity Bank | Credit Card | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Deferred revenue | $ 9,800 | $ 20,000 |
Revenue Recognition - Loyalty D
Revenue Recognition - Loyalty Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance | $ 32,430 | |||
Ending balance | $ 29,674 | 29,674 | ||
Loyalty Program | ||||
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance | 8,273 | $ 9,585 | 8,951 | $ 14,063 |
Reduction in revenue/(revenue recognized) | 541 | 284 | (137) | (4,194) |
Ending balance | $ 8,814 | $ 9,869 | $ 8,814 | $ 9,869 |
Revenue Recognition - Gift Card
Revenue Recognition - Gift Card Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance | $ 32,430 | |||
Ending balance | $ 29,674 | 29,674 | ||
Gift Card Liability | ||||
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance | 21,587 | $ 21,728 | 23,478 | $ 24,142 |
Ending balance | 20,734 | 20,865 | 20,734 | 20,865 |
Issuances | ||||
Contract With Customer, Liability [Roll Forward] | ||||
Increase (decrease) in gift card liability | 5,761 | 4,353 | 9,839 | 8,393 |
Redemptions | ||||
Contract With Customer, Liability [Roll Forward] | ||||
Increase (decrease) in gift card liability | (6,074) | (4,728) | (11,299) | (10,146) |
Gift card breakage | ||||
Contract With Customer, Liability [Roll Forward] | ||||
Increase (decrease) in gift card liability | $ (540) | $ (488) | $ (1,284) | $ (1,524) |
Revenue Recognition - Refundabl
Revenue Recognition - Refundable Payment Liability (Details) - Comenity Bank - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance refundable payment liability | $ 10,553 | $ 13,431 | $ 11,272 | $ 14,150 |
Recognized in revenue | (720) | (720) | (1,439) | (1,439) |
Ending balance refundable payment liability | $ 9,833 | $ 12,711 | $ 9,833 | $ 12,711 |
Earnings Per Share- Basic and D
Earnings Per Share- Basic and Diluted Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares - basic (in shares) | 66,527 | 64,645 | 65,863 | 64,338 |
Dilutive effect of stock options and restricted stock units (in shares) | 3,038 | 0 | 0 | 0 |
Weighted-average shares - diluted (in shares) | 69,565 | 64,645 | 65,863 | 64,338 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of earnings per share (in shares) | 1.1 | 11.3 | 8.8 | 10.4 |
Performance Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of earnings per share (in shares) | 1.5 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets Measured on Recurring Basis (Details) - Recurring - Money market funds - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 4,742 | $ 35,964 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Fair Value Measurements - Impai
Fair Value Measurements - Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Accounting Policies [Abstract] | ||||
Right of use asset impairment | $ 0 | $ 5,874 | $ 0 | $ 15,562 |
Property and equipment asset impairment | 0 | 931 | 0 | 5,921 |
Total asset impairment | $ 0 | $ 6,805 | $ 0 | $ 21,483 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Valuation Allowance [Line Items] | ||||
Effective income tax rate | 0.20% | 21.50% | 0.20% | 8.30% |
Valuation allowance | $ 1 | |||
Tax benefit related to CARES Act | $ 9.1 | $ 28.6 | ||
State And Local Income Taxes And Other Tax Credits | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | $ 16.2 | 22.3 | ||
Previously Recognized Deferred Tax Assets | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | $ 55 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended | |
Jul. 31, 2021USD ($)renewal_option | Jan. 30, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Accrued minimum rent | $ | $ 17.3 | $ 56.3 |
Office Building | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 1 | |
Lease renewal term | 5 years | |
Minimum | Stores | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 5 years | |
Minimum | Equipment and Other Assets | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 3 years | |
Maximum | Stores | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 10 years | |
Maximum | Equipment and Other Assets | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 5 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 146,563 | $ 70,707 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 41,951 | $ 17,893 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 |
Debt Instrument [Line Items] | ||
Total outstanding borrowings | $ 121,737 | $ 196,050 |
Less: unamortized debt issuance costs | (3,564) | (4,018) |
Total debt, net | 118,173 | 192,032 |
Less: current portion of long-term debt | 8,966 | 0 |
Long-term debt, net | 109,207 | 192,032 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 96,737 | 90,000 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 25,000 | 106,050 |
Outstanding letters of credit | $ 34,486 | $ 36,099 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jan. 13, 2021 | Mar. 17, 2020 | Jul. 31, 2021 | May 01, 2021 | Jul. 31, 2021 | Aug. 01, 2020 | Jan. 30, 2021 | May 24, 2019 |
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings under the term loan facility | $ 50,000,000 | $ 0 | ||||||
Repayment of borrowings under the term loan facility | 43,263,000 | 0 | ||||||
Borrowings outstanding | $ 121,737,000 | 121,737,000 | $ 196,050,000 | |||||
Proceeds from borrowings under the revolving credit facility | 38,000,000 | 165,000,000 | ||||||
Repayment of borrowings under the revolving credit facility | 119,050,000 | $ 0 | ||||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 96,737,000 | 96,737,000 | 90,000,000 | |||||
Secured Debt | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 140,000,000 | |||||||
Borrowings outstanding | 96,700,000 | 96,700,000 | ||||||
Debt, fair value | 95,600,000 | 95,600,000 | ||||||
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% | |||||||
Secured Debt | FILO Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 90,000,000 | |||||||
Borrowings outstanding | $ 90,000,000 | $ 90,000,000 | ||||||
Stated interest rate | 1.25% | |||||||
Effective interest rate | 9.00% | 9.00% | ||||||
Deferred financing costs | $ 3,600,000 | $ 3,600,000 | ||||||
Secured Debt | Delayed Draw Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 50,000,000 | |||||||
Proceeds from borrowings under the term loan facility | $ 50,000,000 | |||||||
Repayment of borrowings under the term loan facility | 30,900,000 | $ 12,400,000 | ||||||
Borrowings outstanding | 6,700,000 | 6,700,000 | ||||||
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 | 25,000,000 | 25,000,000 | 106,050,000 | |||||
Outstanding letters of credit | 34,486,000 | 34,486,000 | 36,099,000 | |||||
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 | |||||||
Line of Credit | Amended Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, fair value | 25,100,000 | 25,100,000 | ||||||
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% | |||||||
Line of credit, borrowings outstanding | 25,000,000 | 25,000,000 | ||||||
Repayment of borrowings under the revolving credit facility | 80,000,000 | |||||||
Line of credit, remaining borrowing capacity | 137,200,000 | 137,200,000 | ||||||
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] | ||||||||
Outstanding letters of credit | 34,500,000 | 34,500,000 | 36,100,000 | |||||
Line of Credit | Amended Revolving Credit Facility | Trade Letter Of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding letters of credit | $ 0 | $ 0 | $ 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% | 2.80% | ||||||
Line of credit, borrowings outstanding | $ 25,000,000 | $ 25,000,000 | ||||||
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 | 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% |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | Mar. 17, 2020 | Jun. 13, 2018 | Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in shares available for equity-based awards (in shares) | 2,500 | 2,400 | ||||
Tax benefit from share-based compensation expense | $ 1,600 | $ 200 | $ 3,600 | $ 700 | ||
Tax benefit from share-based compensation expense, valuation allowance | 1,600 | 0 | 3,600 | $ 0 | ||
Unrecognized compensation expense related to stock options | 700 | 700 | ||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of options vested | 8,200 | $ 6,600 | ||||
Unrecognized compensation costs, excluding stock options | $ 8,400 | $ 8,400 | ||||
Unrecognized compensation costs, period for recognition | 1 year 2 months 12 days | |||||
Granted (in shares) | 169 | |||||
Restricted stock units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Restricted stock units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs, period for recognition | 1 year 6 months | |||||
Performance-based restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Unrecognized compensation costs, excluding stock options | $ 9,400 | $ 9,400 | ||||
Unrecognized compensation costs, period for recognition | 2 years 8 months 12 days | |||||
Granted (in shares) | 1,500 | |||||
Performance-based restricted stock units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage of performance award which can be earned | 0.00% | |||||
Performance-based restricted stock units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage of performance award 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 | 3 years | ||||
Unrecognized compensation costs, excluding stock options | 11,600 | $ 11,600 | ||||
Unrecognized compensation costs, period for recognition | 1 year 8 months 12 days | |||||
Performance-Based Cash-Settled Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 2 years | |||||
Unrecognized compensation costs, excluding stock options | $ 9,200 | $ 9,200 | ||||
Performance-Based Cash-Settled Awards | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage of performance award 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 award which can be earned | 200.00% |
Share-Based Compensation - Shar
Share-Based Compensation - Shared-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 2,881 | $ 2,460 | $ 5,404 | $ 4,962 |
Long-term incentive compensation | 5,978 | 2,824 | 10,043 | 4,955 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 1,642 | 2,143 | 3,657 | 4,327 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 250 | 317 | 550 | 635 |
Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 989 | 0 | 1,197 | 0 |
Cash-settled awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive compensation | $ 3,097 | $ 364 | $ 4,639 | $ (7) |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Units, Including Awards with Performance Conditions (Details) - Restricted stock units shares in Thousands | 6 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 7,090 |
Granted (in shares) | shares | 169 |
Vested (in shares) | shares | (2,931) |
Forfeited (in shares) | shares | (271) |
Unvested at end of period (in shares) | shares | 4,057 |
Grant Date Weighted Average Fair Value Per Share | |
Unvested at beginning of period (in USD per share) | $ / shares | $ 2.63 |
Granted (in USD per share) | $ / shares | 5.56 |
Vested (in USD per share) | $ / shares | 2.81 |
Forfeited (in USD per share) | $ / shares | 2.82 |
Unvested at end of period (in USD per share) | $ / shares | $ 2.61 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jul. 31, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 3,324 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | (294) |
Outstanding at end of period (in shares) | shares | 3,030 |
Expected to vest at end of period (in shares) | shares | 551 |
Exercisable at end of period (in shares) | shares | 2,465 |
Grant Date Weighted Average Exercise Price Per Share | |
Outstanding at beginning of period (in USD per share) | $ / shares | $ 6.65 |
Granted (in USD per share) | $ / shares | 0 |
Exercised (in USD per share) | $ / shares | 0 |
Forfeited or expired (in USD per share) | $ / shares | 17.24 |
Outstanding at end of period (in USD per share) | $ / shares | 5.62 |
Expected to vest at end of period (in USD per share) | $ / shares | 2.64 |
Exercisable at end of period (in USD per share) | $ / shares | $ 6.30 |
Weighted-Average Remaining Contractual Life (in years) | |
Outstanding at end of period | 7 years |
Expected to vest at end of period | 7 years 10 months 24 days |
Exercisable at end of period | 6 years 9 months 18 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 4,849 |
Expected to vest at end of period | $ | 1,141 |
Exercisable at end of period | $ | $ 3,678 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Apr. 20, 2020$ / shares | Jul. 31, 2021USD ($)right$ / sharesshares | Aug. 01, 2020shares | Oct. 30, 2021$ / sharesshares | Jul. 31, 2021USD ($)right$ / sharesshares | Aug. 01, 2020shares | Jan. 30, 2021$ / shares | Nov. 28, 2017USD ($) |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ | $ 150,000,000 | |||||||
Treasury stock, acquired (in shares) | shares | 0 | 0 | 0 | 0 | ||||
Stock repurchase program, remaining authorized amount | $ | $ 34,200,000 | $ 34,200,000 | ||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Number of rights issued per common stock | right | 1 | 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% | |||||||
At The Market Offering | Forecast | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | |||||||
Shares sold in offering (in shares) | shares | 15,000,000 |