Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 28, 2023 | Feb. 25, 2023 | Jul. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 28, 2023 | ||
Current Fiscal Year End Date | --01-28 | ||
Document Transition Report | false | ||
Entity File Number | 001-34742 | ||
Entity Registrant Name | EXPRESS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-2828128 | ||
Entity Address, Address Line One | 1 Express Drive | ||
Entity Address, City or Town | Columbus | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43230 | ||
City Area Code | 614 | ||
Local Phone Number | 474-4001 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | EXPR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 111,275,008 | ||
Entity Common Stock, Shares Outstanding | 73,761,930 | ||
Documents Incorporated by Reference | Certain portions of the registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders, which is expected to be filed with the Commission within 120 days after the end of the registrant's 2022 fiscal year ("Proxy Statement for our 2023 Annual Meeting of Stockholders"), to be held on June 7, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001483510 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 28, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Columbus, Ohio |
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 65,612 | $ 41,176 |
Receivables, net | 12,374 | 11,744 |
Income tax receivable | 1,462 | 53,665 |
Inventories | 365,649 | 358,795 |
Prepaid royalty | 59,565 | 0 |
Prepaid rent | 7,744 | 5,602 |
Other | 21,998 | 19,755 |
Total current assets | 534,404 | 490,737 |
Right of Use Asset, Net | 505,350 | 615,462 |
Property and Equipment | 1,019,577 | 975,802 |
Less: accumulated depreciation | (886,193) | (827,820) |
Property and equipment, net | 133,384 | 147,982 |
Non-Current Income Tax Receivable | 52,278 | 0 |
Equity Method Investment | 166,106 | 0 |
Other Assets | 6,803 | 5,273 |
TOTAL ASSETS | 1,398,325 | 1,259,454 |
Current Liabilities: | ||
Short-term lease liability | 189,006 | 196,628 |
Accounts payable | 191,386 | 231,974 |
Deferred royalty income | 19,852 | 0 |
Deferred revenue | 35,543 | 35,985 |
Short-term debt | 0 | 11,216 |
Accrued expenses | 105,803 | 110,850 |
Total current liabilities | 541,590 | 586,653 |
Long-Term Lease Liability | 406,448 | 536,905 |
Long-Term Debt | 122,000 | 117,581 |
Other Long-Term Liabilities | 20,718 | 17,007 |
Total Liabilities | 1,090,756 | 1,258,146 |
Commitments and Contingencies (Note 12) | ||
Stockholders’ Equity: | ||
Preferred stock – $0.01 par value; 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock – $0.01 par value; 500,000 shares authorized; 99,067 shares and 93,632 shares issued at January 28, 2023 and January 29, 2022, respectively, and 73,760 shares and 67,072 shares outstanding at January 28, 2023 and January 29, 2022, respectively | 990 | 936 |
Additional paid-in capital | 228,633 | 220,078 |
Retained earnings | 355,736 | 77,093 |
Treasury stock – at average cost; 25,307 shares and 26,560 shares at January 28, 2023 and January 29, 2022, respectively | (277,790) | (296,799) |
Total stockholders’ equity | 307,569 | 1,308 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,398,325 | $ 1,259,454 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jan. 28, 2023 | Jan. 29, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares, issued (in shares) | 99,067,000 | 93,632,000 |
Common stock, shares, outstanding (in shares) | 73,760,000 | 67,072,000 |
Treasury stock, shares at average cost (in shares) | 25,307,000 | 26,560,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,864,182 | $ 1,870,296 | $ 1,208,374 |
Cost of Goods Sold, Buying and Occupancy Costs | 1,335,588 | 1,311,829 | 1,213,281 |
GROSS PROFIT/(LOSS) | 528,594 | 558,467 | (4,907) |
Operating Expenses: | |||
Selling, general, and administrative expenses | 596,671 | 558,187 | 450,834 |
Other operating income, net | (590) | (499) | (526) |
TOTAL OPERATING EXPENSES | 596,081 | 557,688 | 450,308 |
OPERATING (LOSS)/INCOME | (67,487) | 779 | (455,215) |
Interest Expense, Net | 29,103 | 15,198 | 3,401 |
Gain on transaction with WHP | (409,493) | 0 | 0 |
Other (Income)/Expense, Net | (1,384) | (298) | 2,733 |
INCOME/(LOSS) BEFORE INCOME TAXES | 314,287 | (14,121) | (461,349) |
Income Tax Expense/(Benefit) | 20,453 | 315 | (55,900) |
NET INCOME/(LOSS) | 293,834 | (14,436) | (405,449) |
COMPREHENSIVE INCOME/(LOSS) | $ 293,834 | $ (14,436) | $ (405,449) |
EARNINGS PER SHARE: | |||
Basic (in USD per share) | $ 4.32 | $ (0.22) | $ (6.27) |
Diluted (in USD per share) | $ 4.25 | $ (0.22) | $ (6.27) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 68,046 | 66,448 | 64,624 |
Diluted (in shares) | 69,058 | 66,448 | 64,624 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance, at start of period (in shares) at Feb. 01, 2020 | 63,922 | |||||
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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (405,449) | (405,449) | ||||
Exercise of stock options and restricted stock (in shares) | 1,392 | (1,392) | ||||
Exercise of stock options and restricted stock | 0 | (2,528) | (13,509) | $ 16,037 | ||
Share-based compensation | $ 9,462 | 9,462 | ||||
Repurchase of common stock (in shares) | 0 | 343 | 343 | |||
Repurchase of common stock | $ (626) | $ (626) | ||||
Balance, at end of period (in shares) at Jan. 30, 2021 | 64,971 | |||||
Balance, at end of period at Jan. 30, 2021 | 9,689 | $ 936 | 222,141 | 114,732 | 0 | $ (328,120) |
Balance, at end of period, treasury stock (in shares) at Jan. 30, 2021 | 28,661 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (14,436) | (14,436) | ||||
Exercise of stock options and restricted stock (in shares) | 3,084 | (3,084) | ||||
Exercise of stock options and restricted stock | 0 | (11,872) | (23,203) | $ 35,075 | ||
Share-based compensation | $ 9,809 | 9,809 | ||||
Repurchase of common stock (in shares) | 0 | 983 | 983 | |||
Repurchase of common stock | $ (3,754) | $ (3,754) | ||||
Balance, at end of period (in shares) at Jan. 29, 2022 | 67,072 | 67,072 | ||||
Balance, at end of period at Jan. 29, 2022 | $ 1,308 | $ 936 | 220,078 | 77,093 | 0 | $ (296,799) |
Balance, at end of period, treasury stock (in shares) at Jan. 29, 2022 | 26,560 | 26,560 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ 293,834 | 293,834 | ||||
Issuance of common stock (in shares) | 5,435 | |||||
Issuance of common stock | 6,899 | $ 54 | 6,845 | |||
Exercise of stock options and restricted stock (in shares) | 1,888 | (1,888) | ||||
Exercise of stock options and restricted stock | 0 | (5,830) | (15,191) | $ 21,021 | ||
Share-based compensation | $ 7,540 | 7,540 | ||||
Repurchase of common stock (in shares) | 0 | 635 | 635 | |||
Repurchase of common stock | $ (2,012) | $ (2,012) | ||||
Balance, at end of period (in shares) at Jan. 28, 2023 | 73,760 | 73,760 | ||||
Balance, at end of period at Jan. 28, 2023 | $ 307,569 | $ 990 | $ 228,633 | $ 355,736 | $ 0 | $ (277,790) |
Balance, at end of period, treasury stock (in shares) at Jan. 28, 2023 | 25,307 | 25,307 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income/(loss) | $ 293,834 | $ (14,436) | $ (405,449) |
Adjustments to reconcile net income/(loss) to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 62,169 | 67,622 | 73,698 |
Gain on transaction with WHP | (409,493) | 0 | 0 |
Loss on extinguishment of debt | 4,500 | 0 | 0 |
Loss on disposal of property and equipment | 57 | 140 | 901 |
Impairment of property, equipment and lease assets | 2,150 | 0 | 34,380 |
Equity method investment impairment | 0 | 0 | 3,233 |
Share-based compensation | 7,540 | 9,809 | 9,462 |
Deferred taxes | 10,868 | 0 | 54,967 |
Landlord allowance amortization | (387) | (496) | (416) |
Other non-cash adjustments | 0 | 0 | (500) |
Changes in operating assets and liabilities: | |||
Receivables, net | (630) | 2,812 | (3,732) |
Income tax receivable | (75) | 57,677 | (108,342) |
Prepaid royalty | (59,565) | 0 | 0 |
Inventories | (6,854) | (94,435) | (44,057) |
Deferred royalty income | 19,852 | 0 | 0 |
Accounts payable, deferred revenue, and accrued expenses | (46,367) | 68,304 | 68,275 |
Other assets and liabilities | (34,679) | (7,617) | (6,046) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (157,080) | 89,380 | (323,626) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (47,375) | (34,771) | (16,854) |
Proceeds from WHP transaction | 243,387 | 0 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 196,012 | (34,771) | (16,854) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings under the revolving credit facility | 350,470 | 148,000 | 165,000 |
Repayment of borrowings under the revolving credit facility | (263,470) | (219,050) | (58,950) |
Proceeds from borrowings under the term loan facility | 0 | 50,000 | 90,000 |
Repayment of borrowings under the term loan facility | (96,737) | (43,263) | 0 |
Proceeds on financing arrangements | 0 | 0 | 2,634 |
Repayments of financing arrangements | 0 | (769) | (1,864) |
Costs incurred in connection with debt arrangements | (9,646) | (471) | (6,979) |
Proceeds on issuance of common stock | 6,899 | 0 | 0 |
Repurchase of common stock for tax withholding obligations | (2,012) | (3,754) | (626) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (14,496) | (69,307) | 189,215 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 24,436 | (14,698) | (151,265) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 41,176 | 55,874 | 207,139 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 65,612 | 41,176 | 55,874 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 25,121 | 11,259 | 2,676 |
Cash paid to taxing authorities | $ 1,374 | $ 573 | $ 621 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 28, 2023 | |
Description of Business and Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1 | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Business Description Express, Inc., together with its subsidiaries (“Express” or the “Company”), is a fashion retail company whose business includes an omnichannel operating platform, physical and online stores, and a multi-brand portfolio that includes Express and UpWest. The Express brand launched in 1980 with the idea that style, quality and value should all be found in one place. Today, Express is a brand with a purpose - We Create Confidence. We Inspire Self-Expression . - powered by a styling community. UpWest launched in 2019 with a purpose to Provide Comfort for People & Planet. The Company operates 553 retail and factory outlet stores in the United States and Puerto Rico, the express.com online store and the Express mobile app. Express is comprised of the brands Express and UpWest. As of January 28, 2023, Express operated 355 primarily mall-based retail stores in the United States and Puerto Rico as well as 198 factory outlets. WHP Strategic Partnership On December 8, 2022, Express entered into a strategic partnership with WHP Global (“WHP”), a leading global brand management firm. The mutually transformative strategic partnership advances the Company's omnichannel platform which is expected to drive accelerated, long-term growth through the acquisition and operation of a portfolio of brands. The Company and WHP have also formed EXP Topco, LLC, an intellectual property joint venture (the “Joint Venture”), intended to scale the Express brand through new domestic category licensing and international expansion opportunities. Refer to Note 4 included elsewhere in this Annual Report for further discussion regarding the WHP partnership. Fiscal Year The Company's fiscal year ends on the Saturday closest to January 31. Fiscal years are referred to by the calendar year in which the fiscal year commences. All references herein to the Company's fiscal years are as follows: Fiscal Year Year Ended Number of Weeks 2022 January 28, 2023 52 2021 January 29, 2022 52 2020 January 30, 2021 52 Basis of Presentation Express, Inc., a holding company, owns all of the outstanding equity interests in Express Topco LLC, a holding company, which owns all of the outstanding equity interests in Express Holding, LLC ("Express Holding"). Express Holding owns all of the outstanding equity interests in Express, LLC. Express, LLC, together with its subsidiaries, including Express Fashion Operations, LLC, conducts the operations of the Company and Express Fashion Investments, LLC which owns a 40% economic interest with significant influence in the Joint Venture. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Company holds a 40% equity method interest in the Joint Venture, which is majority owned by WH Borrower, LLC. All intercompany transactions and balances have been eliminated in consolidation. Segment Reporting The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The Company has determined that, together, its Chief Executive Officer and its President and Chief Operating Officer are the Chief Operating Decision Maker, and that there is one operating segment. Therefore, the Company reports results as a single segment, which includes the operation of its Express brick-and-mortar retail and outlet stores, eCommerce operations and franchise operations. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expense during the reporting period, as well as the related disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements. Actual results may differ from those estimates. The Company revises its estimates and assumptions as new information becomes available. Going Concern and Management’s Plans The Company’s revenues, results of operations and cash flows have been materially adversely impacted in the third and fourth quarters of 2022 reversing the trend seen into the second quarter of 2022. The persistently challenging macroeconomic and retail apparel environments, which became more pronounced as the year progressed, significantly impacted the Company's performance. Net sales during 2022 decreased approximately $6.1 million compared to 2021 and this decline, coupled with an increase in promotional activity, drove gross margin and operating loss below the Company's expectations. For 2022, the Company reported operating loss of $67.5 million and negative operating cash flows of $157.1 million. During the fourth quarter of 2022, the Company amended its existing $140.0 million Term Loan Credit Facility and existing $250.0 million Asset-Based Revolving Credit. The Amended Term Loan Facility refinanced the $90.0 million “first in, last out” term loan facility with a new $90.0 million “first in, last out” term loan facility and terminated the $50.0 million delayed draw term loan facility. The 2022 Amended Revolving Credit Facility increased the maximum revolver amount by $40.0 million to $290.0 million. Subsequent to the debt amendment transaction and prior to the closing of the fiscal year, the Company entered into the strategic partnership with WHP that provided $260.0 million in proceeds which it used to pay off (i) the remaining $90.0 million outstanding on our Term Loan and (ii) a portion of our Amended Revolving Credit Facility. Refer to Note 7 in the Company's Consolidated Financial Statements included elsewhere in this Annual Report for further details regarding the Amended Revolving Credit Facility. As of January 28, 2023, the Company is currently in compliance with its covenants, however, due to the uncertainty in the Company’s business, the Company could experience material further decreases to revenues and cash flows and may experience difficulty remaining in compliance with financial covenants under the Amended Revolving Credit Facility. When conditions and events, in the aggregate, impact an entity's ability to continue as a going concern, management evaluates the mitigating effect of its plans to determine if it is probable that the plans will be effectively implemented and, when implemented, the plans will mitigate the relevant conditions or events. The Company's plans are focused on improving its results and liquidity through cost reductions and improved sales trends as we move through 2023. The Company has contingency plans which would further reduce or defer additional expenses and cash outlays, should operations weaken beyond current forecasts. The Company believes these plans are probable of being successfully implemented, which will result in adequate cash flows to support its ongoing operations and to meet its covenant requirements for at least one year following the date these financial statements are issued. The accompanying Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents include investments in money market funds, payments due from banks for third-party credit and debit card transactions for up to five days of sales, cash on hand, and deposits with financial institutions. As of January 28, 2023 and January 29, 2022, amounts due from banks for credit and debit card transactions totaled approximately $10.1 million and $10.3 million, respectively. Outstanding checks not yet presented for payment amounted to $31.2 million and $29.1 million as of January 28, 2023 and January 29, 2022, respectively, and are included in accounts payable on the Consolidated Balance Sheets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. ■ Level 1 - Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. ■ Level 2 - Valuation is based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ■ Level 3 - Valuation is based upon other unobservable inputs that are significant to the fair value measurement. Financial Assets The following table presents the Company's financial assets, recorded in cash and cash equivalents on the Consolidated Balance Sheets, measured at fair value on a recurring basis as of January 28, 2023 and January 29, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall. January 28, 2023 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 47,792 $ — $ — January 29, 2022 Level 1 Level 2 Level 3 (in thousands) Money market funds $ — $ — $ — The money market funds are valued using quoted market prices in active markets. Non-Financial Assets The Company's non-financial assets, which include fixtures, equipment, improvements, right of use assets, and equity method investment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur indicating the carrying value of these assets may not be recoverable, or annually in the case of indefinite-lived intangibles, an impairment test is required. See additional discussion under the heading "Property and Equipment, Net" in this note below. The carrying amounts reflected on the Consolidated Balance Sheets for the remaining cash, cash equivalents, receivables, prepaid expenses, and payables as of January 28, 2023 and January 29, 2022 approximated their fair values. The equity method investment is at cost, and is the result of a market participant transaction with WHP whereby the Company received proceeds for a 60% interest in the intellectual property it contributed to the Joint Venture. The Company has a 40% interest in the Joint Venture. Receivables, Net Receivables, net consist primarily of construction allowances, receivables from the Bank related to the Card Agreement, our franchisees, and third-party resellers of our gift cards, and other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability. The Company's allowance for estimated credit losses was not significant as of January 28, 2023 or January 29, 2022. Inventories Inventories are principally valued at the lower of cost or net realizable value on a weighted-average cost basis. The Company writes down inventory, the impact of which is reflected in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount the Company expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. The lower of cost or net realizable value adjustment to inventory as of January 28, 2023 and January 29, 2022 was $10.3 million and $14.2 million, respectively. The Company also records an inventory shrink reserve for estimated merchandise inventory losses between the last physical inventory count and the balance sheet date. This estimate is based on management's analysis of historical results. Advertising Advertising production costs are expensed at the time the promotion first appears in media, stores, or on the website. Total advertising expense was $134.9 million, $135.0 million and $110.6 million in 2022, 2021, and 2020, respectively. Advertising costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. Property and Equipment, Net Property and equipment are stated at cost. Depreciation of property and equipment is computed on a straight-line basis, using the following useful lives: Category Depreciable Life Software, including software developed for internal use 3 - 7 years Store related assets and other property and equipment 3 - 10 years Furniture, fixtures and equipment 5 - 7 years Leasehold improvements Shorter of lease term or useful life of the asset, typically no longer than 10 years Building improvements 6 - 30 years When a decision is made to dispose of property and equipment prior to the end of its previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in other operating income, net, in the Consolidated Statements of Income and Comprehensive Income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Store Asset Impairment Property and equipment, including the right of use assets, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur indicating the carrying value of these assets may not be recoverable, an impairment test is required. These events include, but are not limited to, material adverse changes in projected revenues, 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 assumption used in the undiscounted future store cash flow models is the sales growth rate. 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 2022, 2021 and 2020, the Company recognized impairment charges as follows: 2022 2021 2020 (in thousands) Right of use asset impairment $ 1,483 $ — $ 25,117 Property and equipment asset impairment 667 — 9,263 Total asset impairment $ 2,150 $ — $ 34,380 Impairment charges are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. Equity Method Investments The Company accounts for each of its equity investments through which it exercises significant influence but does not have control over the investee under the equity method. Under the equity method, the Company recorded its investment in the investee on the balance sheet initially at cost, and subsequently adjusts the carrying amount based on its share of the investee's net income or loss. Royalty distributions received from the investee are recognized as a reduction of the carrying amount of the investment. The Company's share of equity (income)/losses and other adjustments associated with these equity investments will be included in other operating income, net in the Consolidated Statements of Income and Comprehensive Income. The carrying value for the Company's equity investment is reported in Equity Method Investment on the Consolidated Balance Sheets. The Company reports its share of earnings using a one-month lag because results are not available in time for it to record them in the concurrent period. This convention does not materially impact the Company's results. The Company reviews its equity investments accounted for under the equity method of accounting for impairment by comparing the fair value of each of its investments to their carrying value. If the carrying value of an investment exceeds its fair value and the loss in value is other than temporary, the investment is considered impaired and reduced to fair value, and the impairment is recognized in the period identified. Factors providing evidence of such a loss include changes in the investee's operations or financial condition, significant continuing losses, significant negative economic conditions or a significant decrease in the market value. Impairment charges are recorded in other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company's assets and liabilities. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. The Company considers all available evidence, both positive and negative, when evaluating whether deferred tax assets are realizable. Such factors include past operating results, taxable income in prior carryback years, future reversal of existing temporary differences, prudent and feasible tax planning strategies and forecasts of future operating income. The past operating results is given more weight than expectations of future profitability, which is inherently uncertain. The assumptions utilized in determining future taxable income require significant judgment and actual operating results in future years could differ from the Company’s current assumptions and estimates. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company's judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense in the Consolidated Statements of Income and Comprehensive Income. Accrued interest and penalties are included within other long-term liabilities on the Consolidated Balance Sheets. The income tax liability was $8.0 million and $0.8 million as of January 28, 2023 and January 29, 2022, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The Company may be subject to periodic audits by the Internal Revenue Service ("IRS") and other taxing authorities. These audits may challenge certain of the Company's tax positions, such as the timing and amount of deductions and allocation of taxable income to various jurisdictions. Self-Insurance The Company is generally self-insured in the United States for medical, workers' compensation and general liability benefits up to certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self-insurance is included in accrued expenses on the Consolidated Balance Sheets. Revenue Recognition The following is information regarding the Company's major product categories and sales channels: 2022 2021 2020 (in thousands) Apparel $ 1,667,833 $ 1,652,706 $ 1,033,140 Accessories and other 144,356 168,211 132,069 Other revenue 51,993 49,379 43,165 Total net sales $ 1,864,182 $ 1,870,296 $ 1,208,374 2022 2021 2020 (in thousands) Retail $ 1,314,647 $ 1,339,091 $ 860,613 Outlet 497,542 481,826 304,596 Other revenue 51,993 49,379 43,165 Total net sales $ 1,864,182 $ 1,870,296 $ 1,208,374 Merchandise returns are reflected in the accounting records of the channel where they are physically returned. Other revenue consists primarily of revenue earned from our private label credit card agreement, shipping and handling revenue related to eCommerce activity, sell-off revenue related to marked-out-of-stock inventory sales to third parties, revenue from gift card breakage and revenue from franchise agreements. Revenue related to the Company’s international franchise operations was not material for any period presented and, therefore, is not reported separately from domestic revenue. Merchandise Sales The Company recognizes sales for in-store purchases at the point-of-sale. Revenue related to eCommerce transactions is recognized upon shipment based on the fact that control transfers to the customer at that time. The Company has made a policy election to treat shipping and handling as costs to fulfill the contract, and as a result, any amounts received from customers are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income for amounts paid to applicable carriers. Associate discounts on merchandise purchases are classified as a reduction of net sales. Net sales excludes sales tax collected from customers and remitted to governmental authorities. The Company also sells merchandise to multiple franchisees pursuant to different franchise agreements. Revenues may consist of sales of merchandise and/or royalties. Revenues from merchandise sold to franchisees are recorded at the time title transfers to the franchisees. Royalty revenue is based upon a percentage of the franchisee’s net sales to third parties and is earned when such sales to third parties occur. Loyalty Program The Company maintains a customer loyalty program in which customers earn points toward rewards for qualifying purchases and other marketing activities. Upon reaching specified point values, customers are issued a reward, which they may redeem on merchandise purchases at the Company’s stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company defers a portion of merchandise sales based on the estimated standalone selling price of the points earned. This deferred revenue is recognized as certificates are redeemed or expire. To calculate this deferral, the Company makes assumptions related to card holder redemption rates based on historical experience. The loyalty liability is included in deferred revenue on the Consolidated Balance Sheets. 2022 2021 (in thousands) Beginning balance loyalty deferred revenue $ 10,918 $ 8,951 (Revenue recognized)/reduction in revenue (979) 1,967 Ending balance loyalty deferred revenue $ 9,939 $ 10,918 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 $9.0 million and $9.8 million as of January 28, 2023 and January 29, 2022, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The asset related to projected returned merchandise is included in other assets on the Consolidated Balance Sheets. Gift Cards The Company sells gift cards in its stores, on its eCommerce website and through third parties. These gift cards do not expire or lose value over periods of inactivity. The Company accounts for gift cards by recognizing a liability at the time a gift card is sold. The gift card liability balance was $25.6 million and $25.1 million as of January 28, 2023 and January 29, 2022, respectively, and is included in deferred revenue on the Consolidated Balance Sheets. During 2022 and 2021, the Company recognized approximately $13.9 million and $8.2 million of revenue that was previously included in the beginning gift card contract liability, respectively. The Company recognizes revenue from gift cards when they are redeemed by the customer. The Company also recognizes income on unredeemed gift cards, referred to as “gift card breakage.” Gift card breakage is recognized proportionately using a time-based attribution method from issuance of the gift card to the time when it can be determined that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit unredeemed gift cards to relevant jurisdictions. The gift card breakage rate is based on historical redemption patterns. Gift card breakage is included within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2022 2021 (in thousands) Beginning gift card liability $ 25,066 $ 23,478 Issuances 30,780 31,339 Redemptions (27,303) (27,218) Gift card breakage (2,939) (2,533) Ending gift card liability $ 25,604 $ 25,066 Private Label Credit Card The Company has an agreement with Comenity Bank (the “Bank”) to provide customers with private label credit cards (the “Card Agreement”) which was amended on August 28, 2017 to extend the term of the arrangement through December 31, 2024. Each private label credit card bears the logo of the Express brand and can only be used at the Company’s store locations and eCommerce channel. The Bank is the sole owner of the accounts issued under the private label credit card program and absorbs the losses associated with non-payment by the private label card holders and a portion of any fraudulent usage of the accounts. Pursuant to the Card Agreement, the Company receives amounts from the Bank during the term based on a percentage of private label credit card sales and is also eligible to receive incentive payments for the achievement of certain performance targets. These funds are recorded within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. The Company also receives reimbursement funds from the Bank for certain expenses the Company incurs. These reimbursement funds are used by the Company to fund marketing and other programs associated with the private label credit card. The reimbursement funds received related to private label credit cards are recorded within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. In connection with the Card Agreement, the Bank agreed to pay the Company a $20.0 million refundable payment which the Company recognized upon receipt as deferred revenue within other long-term liabilities in the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January 2018. As of January 28, 2023, the deferred revenue balance of $5.5 million will be recognized over the remaining term of the amended Card Agreement within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2022 2021 (in thousands) Beginning balance refundable payment liability $ 8,394 $ 11,272 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 5,516 $ 8,394 Cost of Goods Sold, Buying and Occupancy Costs Cost of goods sold, buying and occupancy costs, includes merchandise costs, freight, inventory shrinkage and other gross margin related expenses. Buying and occupancy expenses primarily include payroll, benefit costs, and other operating expenses for the buying departments (merchandising, design, manufacturing and planning and allocation), distribution, eCommerce fulfillment, rent, common area maintenance, real estate taxes, utilities, maintenance and depreciation for stores. Selling, General, and Administrative Expenses Selling, general, and administrative expenses include all operating costs not included in cost of goods sold, buying and occupancy costs, with the exception of proceeds received from insurance claims and gain/loss on disposal of assets, which are included in other operating expense, net. These costs include payroll and other expenses related to operations at our corporate home office, store expenses other than occupancy, and marketing expenses. Other Operating Income, Net Other operating income, net primarily consists of gains/losses on disposal of assets, excess proceeds from the settlement of insurance claims and the write off of certain costs associated with aborted debt negotiations. Gain on Transaction with WHP Gain on transaction with WHP primarily consists of proceeds from the sale of majority interest of intellectual property to the Joint Venture, the equity method investment and the premium paid on the common shares by WHP discussed in Note 4 . Other (Income)/Expense, Net Other (income)/expense, net primarily consists of payments received from Homage, LLC discussed in Note 4 . |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 3 | PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of: January 28, 2023 January 29, 2022 (in thousands) Building improvements $ 16,312 $ 16,206 Furniture, fixtures and equipment, and software 582,205 557,130 Leasehold improvements 402,598 393,221 Construction in process 17,652 8,433 Other 810 812 Total 1,019,577 975,802 Less: accumulated depreciation (886,193) (827,820) Property and equipment, net $ 133,384 $ 147,982 Depreciation expense totaled $61.5 million, $66.5 million and $76.1 million in 2022, 2021, and 2020, respectively, excluding impairment charges discussed in Note 2 . |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Jan. 28, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | NOTE 4 | EQUITY METHOD INVESTMENT The following table is a summary of the Company’s equity method investment: % of Ownership Balance Sheet Location January 28, 2023 (in thousands) EXP Topco, LLC. 40% Equity Method Investment $ 166,106 The Company accounts for equity investments through which it exercises significant influence but does not have control over the investee under the equity method. Under the equity method, the Company recorded its investment in the investee on the balance sheet initially at cost, and subsequently adjusts the carrying amount based on its share of the investee's net income or loss. Royalty distributions received from the investee are recognized as a reduction of the carrying amount of the investment. The Company's share of equity (income)/losses and other adjustments associated with these equity investments will be included in other operating income, net in the Consolidated Statements of Income and Comprehensive Income. The carrying value for the Company's equity investment is reported in Equity Method Investment on the Consolidated Balance Sheets. The Company reports its share of earnings using a one-month lag because results are not available in time for it to record them in the concurrent period. The Company will begin reporting information under S-X Rule 4-08(g) for the Joint Venture in future quarters. Equity Method Investment with WHP Global On December 8, 2022, the Company entered into a strategic partnership with WHP, a leading global brand management firm. On January 25, 2023 the related transactions closed and funded. The mutually transformative strategic partnership advances the Company's omnichannel platform which is expected to drive accelerated, long-term growth through the acquisition and operation of a portfolio of brands. The Company formed an intellectual property Joint Venture with WHP, which acquired certain intellectual property of the Company. Concurrently, the Company transformed into an omnichannel platform company, managed and run by its current leadership. All other aspects of the existing business remain unchanged. The Company entered into an exclusive long-term License Agreement (as defined below) with multiple renewal options with the Joint Venture to use the contributed intellectual property for the Company’s existing business and will pay a royalty fee to the Joint Venture. Cash earnings in the Joint Venture will be distributed quarterly to the Company and WHP on a pro rata basis. Under the derecognition guidance from ASC 810, the Company derecognized the intellectual property assets at their carrying amount upon their contribution to the Joint Venture. In exchange for the Company's contribution of its intellectual property assets to the Joint Venture, WHP invested $235.0 million for a 60% stake in the Joint Venture, implying a fair value of the Company’s retained 40% interest of approximately $156.7 million. The carrying amount of the intellectual property assets was zero, leading to recognition of a $391.7 million gain of which $156.7 million was related to the Company’s retained 40.0% interest in the Joint Venture. The gain was recorded in gain on transaction with WHP on the Consolidated Statements of Income and Comprehensive Income. Transaction costs capitalized in the cost of the equity method investment totaled $9.4 million. Separately, under the terms of the transaction, WHP also made a common equity investment to acquire 5.4 million newly issued shares of the Company at $4.60 per share, representing an approximate pro forma ownership of 7.4%. The difference between the price paid and the fair value of the share price on the day of the transaction resulted in a gain of $17.8 million recorded in gain on transaction with WHP on the Consolidated Statements of Income and Comprehensive Income. Refer to Note 8 in our Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for further discussion. In connection with the strategic partnership with WHP, on January 25, 2023, the Company and the Joint Venture entered into an Intellectual Property License Agreement (the “License Agreement”). The License Agreement provides the Company with an exclusive license in the United States to the intellectual property contributed in connection with the Membership Interest Purchase Agreement and certain other intellectual property. The initial term of the License Agreement is 10 years, and the License Agreement automatically renews for successive renewal terms of 10 years (unless the Company provides notice of non-renewal at least 24 months prior to the end of the initial or applicable renewal term). Except for the Company’s right not to renew the License Agreement, the License Agreement is not terminable by either party. The Company will pay the Joint Venture a royalty on net sales of certain licensed goods and will commit to an annual guaranteed minimum annual royalty during the term of the License Agreement (i.e., $60.0 million in the first contract year, increasing by $1.0 million per year for the next five As WHP is an affiliate of the Company as part of the transaction, the intellectual property purchase, stock purchase and related royalty payments are considered related party transactions. Equity Method Investment in Homage, LLC In 2016, the Company made a $10.1 million investment in Homage, LLC, a privately held retail company based in Columbus, Ohio. The non-controlling investment in the entity was being accounted for under the equity method. During the third quarter of 2020, the Company sold all of its interest in Homage, LLC back to Homage, LLC in exchange for a promissory note payable to the Company in the principal amount of $1.5 million. The Company recorded a reserve against the full value of this promissory note. During the fourth quarter of 2021, the Company revised the payment terms of the note receivable and collected $0.3 million which was recorded as other income within other (income)/expense, net in the Consolidated Statements of Income and Comprehensive Income. During 2022, the Company collected $1.2 million which was recorded as other income within other (income)/expense, net in the Consolidated Statements of Income and Comprehensive Income. The Company has no remaining activity with Homage, LLC. |
Leases
Leases | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Leases | NOTE 5 | LEASES The Company accounts for leases under Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASC 842”). This ASU is a comprehensive standard that requires lessees to recognize lease assets and lease liabilities for most leases, including those leases previously classified as operating leases. The Company’s right of use assets represent a right to use underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. 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. 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 portions of the first and second quarter of 2020. The Company established an accrual for rent payments that were not made and has continued to recognize accrued rent expense. As a result of negotiations with certain landlords, the Company has since made rent payments for certain stores and some landlords have agreed to abate certain rent payments. The appropriate adjustments were made to accrued rent. Accrued rent is within accrued expenses on the Consolidated Balance Sheets. Accrued minimum rent as of January 28, 2023 and January 29, 2022, was $6.2 million and $7.7 million, respectively. Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. The following table is a summary of the Company’s components of net lease cost, which is included in cost of goods sold, buying and occupancy costs, in the Consolidated Statements of Income and Comprehensive Income: 2022 2021 2020 (in thousands) Operating lease costs $ 220,682 $ 234,911 $ 272,896 Variable and short-term lease costs 63,516 45,355 60,925 Total lease costs $ 284,198 $ 280,266 $ 333,821 Supplemental cash flow information related to leases is as follows: 2022 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 253,197 $ 296,353 $ 197,824 Right of use assets obtained in exchange for operating lease liabilities $ 45,136 $ 44,952 $ 44,433 Supplemental balance sheet information related to leases is as follows: 2022 2021 2020 Operating leases: Weighted average remaining lease term (in years) 3.8 4.4 5.1 Weighted average discount rate 6.9 % 6.5 % 5.4 % The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheets as of January 28, 2023: January 28, 2023 (in thousands) 2023 $ 209,072 2024 177,265 2025 132,509 2026 78,104 2027 45,314 Thereafter 33,809 Total minimum lease payments 676,073 Less: amount of lease payments representing interest 80,619 Present value of future minimum lease payments 595,454 Less: current obligations under leases 189,006 Long-term lease obligations $ 406,448 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 6 | INCOME TAXES The provision (benefit) for income taxes consists of the following: 2022 2021 2020 Current: (in thousands) U.S. federal $ 8,273 $ (239) $ (109,627) U.S. state and local 1,312 554 (1,240) Total 9,585 315 (110,867) Deferred: U.S. federal 3,546 — 37,292 U.S. state and local 7,322 — 17,675 Total 10,868 — 54,967 Income tax (benefit)/expense $ 20,453 $ 315 $ (55,900) The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: 2022 2021 2020 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 6.4 % (5.0) % 5.2 % Change in uncertain tax positions 0.4 % 0.8 % 0.1 % Share-based compensation 0.1 % (3.2) % (0.3) % Non-deductible executive compensation 0.6 % (22.6) % (0.2) % Change in valuation allowance (21.8) % 4.0 % (22.9) % Change in tax law — % — % 9.1 % Tax credits (0.3) % 3.7 % 0.1 % Other items, net 0.1 % (0.9) % — % Effective tax rate 6.5 % (2.2) % 12.1 % The increase in the tax rate in 2022 compared to 2021 is primarily attributable to the gain on the transaction with WHP. The gain on the transaction with WHP in 2022 allowed the Company to utilize certain deferred tax assets and tax attributes with a corresponding release to the Company's valuation allowance. On March 27, 2020, the CARES Act was enacted into law. The CARES Act provides several provisions that impact the Company, including the establishment of a five-year carryback of net operating losses originating in the tax years 2018, 2019 and 2020, temporarily suspending the 80% limitation on the use of net operating losses, relaxing limitation rules on business interest deductions, and retroactively clarifying that businesses may immediately write-off certain qualified leasehold improvement property dating back to January 1, 2018. The Company carried back certain of its U.S. federal net operating losses to offset taxable income in the five-year carryback period as part of the CARES Act. As of January 28, 2023, the Company has a $52.3 million income tax receivable recorded as a non-current asset. The decrease in the tax rate in 2021 compared to 2020 is primarily attributable to the impact of nondeductible executive compensation in 2021, as well as establishing a valuation allowance against the Company's net deferred tax assets in 2020. This was partially offset by the impact from the CARES Act of the 2019 and 2020 U.S. federal net operating losses that are able to be carried back to years with a higher federal statutory tax rate than is currently enacted. The following table provides the effect of temporary differences that created deferred income taxes as of January 28, 2023 and January 29, 2022. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carry-forwards at the end of the respective periods. January 28, 2023 January 29, 2022 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 9,999 $ 13,693 Lease liability 161,389 197,063 Intangible assets 10,851 21,402 Inventory 1,136 — Deferred revenue 5,418 5,142 Other 871 986 Net operating losses, tax credit and other carryforwards 17,693 41,137 Valuation allowance (41,767) (107,669) Total deferred tax assets 165,590 171,754 Deferred tax liabilities: Prepaid expenses 2,374 2,844 Inventory — 1,305 Right of use asset 133,149 161,105 Investment in Joint Venture 36,500 — Property and equipment 4,435 6,500 Total deferred tax liabilities 176,458 171,754 Net deferred tax asset/(liability) $ (10,868) $ — 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 has booked a valuation allowance against the amount of deferred tax assets not expected to be realized as of January 28, 2023. As of January 28, 2023, the Company had U.S. state net operating loss carryforwards of $352.0 million. The U.S. state net operating losses have carryforward periods of five to twenty years with varying expiration dates and certain jurisdictions have an unlimited carryforward period. The Company had no remaining U.S. federal net operating loss carryforwards. The Company also has $0.1 million in foreign tax credits, which can be carried forward 10 years and expire starting in 2027. A valuation allowance has been recorded on all tax attributes not expected to be realized in future periods. The net deferred tax liability as of January 28, 2023 is included in the Other Long-Term Liabilities on the Consolidated Balance Sheets. The following table summarizes the changes in the valuation allowance: 2022 2021 2020 (in thousands) Valuation allowance, beginning of year $ 107,669 $ 108,418 $ 2,313 Changes in related gross deferred tax assets/liabilities 2,661 (228) 410 Charge/(release) (68,563) (521) 105,695 Valuation allowance, end of year $ 41,767 $ 107,669 $ 108,418 The decrease in the valuation allowance in 2022 is primarily attributable to the gain on the transaction with WHP. The gain on the transaction with WHP in 2022 allowed the Company to utilize certain deferred tax assets and tax attributes with a corresponding release to the Company's valuation allowance. Uncertain Tax Positions The Company evaluates tax positions using a more likely than not recognition criterion. A reconciliation of the beginning to ending unrecognized tax benefits is as follows: January 28, 2023 January 29, 2022 January 30, 2021 (in thousands) Unrecognized tax benefits, beginning of year $ 1,573 $ 1,388 $ 1,305 Gross addition for tax positions of the current year 335 — — Gross addition for tax positions of the prior year 174 291 327 Settlements — — — Reduction for tax positions of prior years — — — Lapse of statute of limitations (115) (106) (244) Unrecognized tax benefits, end of year $ 1,967 $ 1,573 $ 1,388 The amount of the above unrecognized tax benefits as of January 28, 2023, January 29, 2022 and January 30, 2021 that would impact the Company's effective tax rate, if recognized, is $2.0 million, $1.6 million and $1.4 million, respectively. During 2022 and 2021, the Company released gross uncertain tax positions of $0.1 million and $0.1 million, respectively, and the related accrued interest and penalties of $0.1 million and $0.1 million, respectively, as a result of the expiration of associated statutes of limitation. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. The total amount of net interest in tax expense related to interest and penalties included in the Consolidated Statements of Income and Comprehensive Income was $0.1 million for 2022, $(0.1) million for 2021 and $(0.1) million for 2020. As of January 28, 2023 and January 29, 2022, the Company had accrued interest and penalties of $0.5 million and $0.3 million, respectively. The Company is subject to examination by the IRS for years subsequent to 2013. The Company is currently under audit for refund claims related to the carryback of U.S. federal net operating losses as a result of CARES Act provisions. The Company is also generally subject to examination by various U.S. state and local and non-U.S. tax jurisdictions for the years subsequent to 2013. The Company does not expect the results from any income tax audit to have a material impact on the Company’s financial statements. The Company believes that over the next twelve months, it is reasonably possible that up to $0.2 million of unrecognized tax benefits could be resolved as the result of settlements of audits and the expiration of statutes of limitation. Final settlement of these issues may result in payments that are more or less than this amount, but the Company does not anticipate that the resolution of these matters will result in a material change to its consolidated financial position or results of operations. |
Debt
Debt | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 7 | DEBT The following table summarizes the Company's outstanding debt as of the dates indicated: January 28, 2023 January 29, 2022 (in thousands) Term Loan Facility $ — $ 96,737 Revolving Facility 122,000 35,000 Total outstanding borrowings 122,000 131,737 Less: unamortized debt issuance costs — (2,940) Total debt, net 122,000 128,797 Less: current portion of long-term debt — 11,216 Long-term debt, net $ 122,000 $ 117,581 Outstanding letters of credit $ 19,636 $ 34,636 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 provided 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 2021, the Company drew down the additional $50.0 million under the DDTL and repaid $43.3 million with proceeds from 2020 CARES Act tax refunds, as required under the Term Loan Facility. The fair value of the Term Loan Facility at January 29, 2022 was $98.0 million. On November 23, 2022, the Company's $140.0 million Term Loan Facility was amended (the Amended Term Loan Facility") by refinancing its $90.0 million FILO Term Loan (the "Existing FILO Loans") with a new $90.0 million Term Loan Facility (the "Amendment FILO Term Loan") and terminating its $50.0 million DDTL (the "Existing DDTL"). The Amended Term Loan Facility (i) refinanced the outstanding principal balance of the Existing FILO Loans with the Amendment FILO Term Loan, (ii) terminated its Existing DDTL and (iii) modified the interest rate and maturity date of the Existing FILO Loans. The previous maturity date of the Existing FILO Loans of May 24, 2024 was extended by the Amended Term Loan Facility to the earlier of November 26, 2027 or the maturity date of the Amended Revolving Credit Facility. Additionally, the Amended Term Loan Facility replaced the London Interbank Offered Rate (“LIBOR”) as the interest rate benchmark with the Secured Overnight Financing Rate (“SOFR”) interest rate benchmark. On January 25, 2023, the Company paid in full the outstanding Obligations (as defined in the FILO Term Loan) due under the Asset-Based Loan Credit Agreement dated as of January 13, 2021, by and among the Company, Express Topco, Express Holding, Express, LLC and the other loan parties named therein (such payment, the “FILO Term Loan Payoff”). The Company recognized $5.1 million of FILO Term Loan refinancing costs, $4.5 million of early debt termination fees related to the termination of the Term Loan and $1.8 million of accelerated Term Loan discount amortization. Pursuant to the FILO Term Loan Payoff, the Company has no further obligations under the FILO Term Loan. Cash interest paid in 2022 included the FILO Term Loan refinancing costs and the early debt termination fees related to the termination of the Term Loan. 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 Bank, National Association (“Wells Fargo”), as administrative agent and collateral agent, and Bank of America, N.A. (“Bank of America”), as documentation agent (the “2021 Revolving Credit Facility Amendment”). The 2021 Revolving Credit Facility Amendment amended the Loan Parties’ existing asset-based Revolving Credit Facility. The 2021 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. On November 23, 2022, the Company entered into the Third Amendment to Second Amended and Restated Asset-Based Loan Credit Agreement and Restated Asset-Based Loan Credit Agreement and First Amendment to Second Amended and Restated Security Agreement, among the Loan Parties, the lenders party thereto, Wells Fargo, as administrative agent and collateral agent, and Bank of America, as documentation agent (the “2022 Revolving Credit Facility Amendment”). The 2022 Revolving Credit Facility Amendment amended the Loan Parties’ existing asset-based revolving credit facility, which was previously scheduled to expire on May 24, 2024. The maturity date was extended by the Amended Revolving Credit Facility to the earlier of November 26, 2027 or the maturity date of the Amended Term Loan Facility. The 2022 Revolving Credit Facility Amendment followed modification accounting which resulted in the unamortized fees related to the 2021 Revolving Credit Facility Amendment being amortized over the life of the 2022 Revolving Credit Facility Amendment. Under the 2022 Revolving Credit Facility Amendment, the maximum borrowing amount was increased by $40.0 million to $290.0 million. Additionally, the Amended Term Loan Facility replaced the LIBOR as the interest rate benchmark with the SOFR interest rate benchmark. On January 25, 2023, the Company entered into the Consent and Fourth Amendment to Second Amended and Restated Asset-Based Loan Credit Agreement and Amendment to Certain Ancillary Loan Documents, by and among the Loan Parties party thereto, the lenders party thereto, Wells Fargo, as administrative agent and collateral agent, and Bank of America, as documentation agent (the “Amended Revolving Credit Facility”). The Amended Revolving Credit Facility will mature on November 26, 2027. Under the Amended Revolving Credit Facility, revolving loans may be borrowed, repaid and reborrowed until November 26, 2027, at which time all amounts borrowed must be repaid. Amounts borrowed under the Amended Revolving Credit Facility will bear interest at a variable rate indexed to SOFR plus a pricing margin ranging from 1.75% to 2.25% per annum, as determined in accordance with the provisions of the Amended Revolving Credit Facility based on average daily excess availability, as of any date of determination, for the most recently ended fiscal quarter, commencing April 30, 2023. The Amended Revolving Credit Facility has a maximum borrowing amount of $290.0 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 January 28, 2023, the interest rate on the outstanding borrowings of $122.0 million was approximately 6.5%. The unused line fee payable under the Amended Revolving Credit Facility is 0.25% per annum regardless of the average daily excess availability, payable in arrears monthly 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. The Amended Revolving Credit Facility 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 Amended Revolving Credit Facility loan cap. From and after the date on which EBITDA (as defined therein) has exceeded $50.0 million for two consecutive fiscal quarters (each of which consecutive fiscal quarters shall have commenced after November 2, 2024), at any time the excess availability is less than the greater of (i) $25.0 million or (ii) 10% of the Amended Revolving Credit Facility loan cap, and until the excess availability exceeds such amount for thirty 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’ assets, subject to certain permitted liens. As of January 28, 2023, the Company had $122.0 million in borrowings outstanding under the Amended Revolving Credit Facility and approximately $148.4 million remained available for borrowing under the Amended Revolving Credit Facility after giving effect to outstanding letters of credit in the amount of $19.6 million and subject to certain borrowing base limitations as further discussed above. The fair value of the Amended Revolving Credit Facility at January 28, 2023 and January 29, 2022 was $115.0 million and $36.5 million, respectively. Letters of Credit The Company may enter into various trade letters of credit ("trade LCs") in favor of certain vendors to secure merchandise. These trade LCs are issued for a defined period of time, for specific shipments, and generally expire three weeks after the merchandise shipment date. As of January 28, 2023 and January 29, 2022, there were no outstanding trade LCs. Additionally, the Company enters into stand-by letters of credit ("stand-by LCs") on an as-needed basis to secure payment obligations for third party logistic services, merchandise purchases, and other general and administrative expenses. As of January 28, 2023 and January 29, 2022, outstanding stand-by LCs totaled $19.6 million and $34.6 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 28, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 8 | 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 "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 Exchange Act of 1934. 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. The Company did not repurchase shares of its common stock during 2022, 2021 or 2020. As of January 28, 2023, the Company had approximately $34.2 million remaining under this authorization. ATM Equity Offering Sales Agreement 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) filed with the SEC on April 6, 2021. On December 2, 2022, the Company delivered written notice to BofA to terminate the Sales Agreement. The termination of the Sales Agreement became effective as of December 7, 2022. The Company exercised its option to terminate the Sales Agreement due to the fact that the Company no longer intends to utilize the Sales Agreement. There are no penalties associated with the termination of the Sales Agreement. Prior to its termination, the Company did not issue or sell any shares of its Common Stock pursuant to the Sales Agreement during 2022 or 2021. Investment Agreement On December 8, 2022, the Company, entered into an investment agreement (the “Investment Agreement”) with WHP, relating to the issuance and sale of shares of the Company’s common stock, par value $0.01, in a private placement to WHP. On January 25, 2023, the Company completed the transaction contemplated by the Investment Agreement. Pursuant to the Investment Agreement, the Company issued and sold 5.4 million shares of common stock to WHP (the “Purchased Shares”) for a purchase price of $4.60 per share, or an aggregate purchase price of $25.0 million (the “Stock Purchase”), representing an approximate pro forma ownership of 7.4%. The Investment Agreement contains customary representations, warranties and covenants of the Company and WHP. The excess paid over fair value of $17.8 million was recorded in gain on transaction with WHP on the Consolidated Statements of Income and Comprehensive Income. |
Long-Term Incentive Compensatio
Long-Term Incentive Compensation | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Long-Term Incentive Compensation | NOTE 9 | LONG-TERM INCENTIVE COMPENSATION The Company records the fair value of share-based payments to employees in the Consolidated Statements of Income and Comprehensive Income as compensation expense, net of forfeitures, over the requisite service period. The Company issues shares of common stock from treasury stock, at average cost, upon exercise of stock options and vesting of restricted stock units, including those with performance conditions. Long-Term Incentive Compensation Plans 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 previous plan. On June 13, 2018, stockholders of the Company approved the 2018 Plan and all grants made subsequent to that approval have been 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 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: 2022 2021 2020 (in thousands) Restricted stock units $ 4,075 $ 6,212 $ 8,220 Stock options 350 728 1,242 Performance-based restricted stock units 3,115 2,869 — Total share-based compensation $ 7,540 $ 9,809 $ 9,462 Cash-settled awards 8,662 9,142 695 Total long-term incentive compensation $ 16,202 $ 18,951 $ 10,157 The stock compensation related income tax benefit, excluding consideration of valuation allowances, recognized by the Company in 2022, 2021, and 2020 was $3.1 million, $4.2 million and $0.9 million, respectively. The valuation allowances associated with these tax benefits were $3.1 million in 2022 compared to $4.2 million in 2021. There were no valuation allowances associated with the tax benefits in 2020. Equity Awards Restricted Stock Units During 2022, the Company granted restricted stock units ("RSUs") under the terms of the 2018 Plan. The fair value of the RSUs is determined based on the Company's closing stock price on the day prior to the grant date in accordance with the 2018 Plan. The RSUs granted in 2022, in general, vest ratably over one The Company's activity with respect to RSUs for 2022 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, January 29, 2022 3,561 $ 2.55 Granted 373 $ 2.60 Vested (1,888) $ 2.84 Forfeited (313) $ 2.39 Unvested, January 28, 2023 1,733 $ 2.27 The total fair value of RSUs that vested during 2022, 2021, and 2020 was $5.4 million, $8.8 million and $7.4 million, respectively. As of January 28, 2023, there was approximately $1.2 million of total unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 0.5 years. Stock Options During 2022, the Company did not grant stock options. The expense for stock options is recognized using the straight-line attribution method. The Company's activity with respect to stock options during 2022 was as follows: Number of Shares Grant Date Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding, January 29, 2022 2,973 $ 5.39 Granted — $ — Exercised — $ — Forfeited or expired (116) $ 18.91 Outstanding, January 28, 2023 2,857 $ 4.84 5.8 $ — Expected to vest at January 28, 2023 279 $ 2.60 6.5 $ — Exercisable at January 28, 2023 2,577 $ 5.09 5.7 $ — As of January 28, 2023, there was approximately $0.2 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of approximately 0.5 years. The Company uses the Black-Scholes-Merton option-pricing model to value stock options granted to employees and directors. The Company's determination of the fair value of stock options is affected by the Company's stock price, as well as a number of subjective and complex assumptions. These assumptions include the risk-free interest rate, the Company's expected stock price volatility over the term of the awards, expected term of the award, and dividend yield. There were no stock options issued or exercised in 2022, 2021 and 2020. Performance-Based Restricted Stock Units During 2022, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company’s common stock upon vesting. The number of shares earned could range between 0% and 200% of the target amount depending upon performance achieved over a three-year vesting period. The performance conditions of the award include adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") targets and total shareholder return ("TSR") of the Company’s common stock relative to a select group of peer companies. A Monte Carlo valuation model was used to determine the fair value of the awards. The TSR performance metric is a market condition. Therefore, fair value of the awards is fixed at the measurement date and is not revised based on actual performance. The number of shares that are expected to vest will change based on estimates of the Company’s Adjusted EBITDA performance in relation to the pre-established targets. The 2022 target grant currently corresponds to approximately 1.9 million shares, with a grant-date fair value of $3.97 per share. As of January 28, 2023, $5.5 million of total unrecognized compensation cost is expected to be recognized on performance-based restricted stock units over a remaining weighted-average period of 1.6 years. Cash-Settled Awards Time-Based Cash-Settled Awards During 2022, 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 January 28, 2023, $11.9 million of total unrecognized compensation cost is expected to be recognized on time-based cash-settled awards over a weighted-average period of 1.4 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 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 10 | 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: 2022 2021 2020 (in thousands) Weighted-average shares - basic 68,046 66,448 64,624 Dilutive effect of stock options, restricted stock units and restricted stock 1,012 — — Weighted-average shares - diluted 69,058 66,448 64,624 Equity awards representing 3.4 million, 7.8 million and 10.6 million shares of common stock were excluded from the computation of diluted earnings per share for 2022, 2021, and 2020, respectively, as the inclusion of these awards would have been anti-dilutive. Additionally, for 2022, 2.9 million shares were excluded from the computation of diluted weighted average shares because the number of shares that will ultimately be issued is contingent on the Company's performance compared to pre-established performance goals, which have not been achieved as of January 28, 2023. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jan. 28, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | NOTE 11 | RETIREMENT BENEFITS The employees of the Company, if eligible, participate in a qualified defined contribution retirement plan (the “Qualified Plan”) sponsored by the Company. Participation in the Company's Qualified Plan is available to employees who meet certain age and service requirements. The Qualified Plan permits employees to elect contributions up to the lesser of 15% of their compensation or the maximum limits allowable under the Internal Revenue Code ("IRC"). The Company matches employee contributions according to a predetermined formula. Employee contributions and Company matching contributions vest immediately. Total expense recognized related to the Qualified Plan employer match was $3.8 million, $3.7 million, and $3.4 million in 2022, 2021, and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 | 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. 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 wage and hour statutes and other labor standard violations, which was removed to federal court by the Company and is now pending in the United States District Court for the Central District of California (the “District Court”). The lawsuit seeks unspecified monetary damages and attorneys' fees. In June 2021, a portion of Mr. Chacon’s claims in this action were certified as a class action. Plaintiff and the Company both filed Motions for Summary Judgment on February 28, 2022. In June 2022, as a result of a mediation process overseen by an independent mediator, the parties agreed, subject to approval by the District Court, to settle these matters for an amount not material to the Company. The proposed settlement will resolve the Chacon and Carr matters in their entirety and also provide for a broad release of claims asserted therein on behalf of the Company’s current and former employees in California for wage and hour violations. As of January 28, 2023, the Company's Consolidated Balance Sheet includes an estimated liability based on its best estimate of the outcome of the unresolved matters. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company's fiscal year ends on the Saturday closest to January 31. Fiscal years are referred to by the calendar year in which the fiscal year commences. |
Basis of Presentation | Basis of Presentation Express, Inc., a holding company, owns all of the outstanding equity interests in Express Topco LLC, a holding company, which owns all of the outstanding equity interests in Express Holding, LLC ("Express Holding"). Express Holding owns all of the outstanding equity interests in Express, LLC. Express, LLC, together with its subsidiaries, including Express Fashion Operations, LLC, conducts the operations of the Company and Express Fashion Investments, LLC which owns a 40% economic interest with significant influence in the Joint Venture. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Company holds a 40% equity method interest in the Joint Venture, which is majority owned by WH Borrower, LLC. All intercompany transactions and balances have been eliminated in consolidation. |
Segment Reporting | Segment Reporting The Company defines an operating segment on the same basis that it uses to evaluate performance internally. The Company has determined that, together, its Chief Executive Officer and its President and Chief Operating Officer are the Chief Operating Decision Maker, and that there is one operating segment. Therefore, the Company reports results as a single segment, which includes the operation of its Express brick-and-mortar retail and outlet stores, eCommerce operations and franchise operations. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expense during the reporting period, as well as the related disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements. Actual results may differ from those estimates. The Company revises its estimates and assumptions as new information becomes available. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include investments in money market funds, payments due from banks for third-party credit and debit card transactions for up to five days of sales, cash on hand, and deposits with financial institutions. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. ■ Level 1 - Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. ■ Level 2 - Valuation is based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ■ Level 3 - Valuation is based upon other unobservable inputs that are significant to the fair value measurement. Non-Financial Assets The Company's non-financial assets, which include fixtures, equipment, improvements, right of use assets, and equity method investment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur indicating the carrying value of these assets may not be recoverable, or annually in the case of indefinite-lived intangibles, an impairment test is required. See additional discussion under the heading "Property and Equipment, Net" in this note below. The carrying amounts reflected on the Consolidated Balance Sheets for the remaining cash, cash equivalents, receivables, prepaid expenses, and payables as of January 28, 2023 and January 29, 2022 approximated their fair values. The equity method investment is at cost, and is the result of a market participant transaction with WHP whereby the Company received proceeds for a 60% interest in the intellectual property it contributed to the Joint Venture. The Company has a 40% interest in the Joint Venture. |
Receivables, Net | Receivables, Net Receivables, net consist primarily of construction allowances, receivables from the Bank related to the Card Agreement, our franchisees, and third-party resellers of our gift cards, and other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability. |
Inventories | Inventories Inventories are principally valued at the lower of cost or net realizable value on a weighted-average cost basis. The Company writes down inventory, the impact of which is reflected in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount the Company expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. The lower of cost or net realizable value adjustment to inventory as of January 28, 2023 and January 29, 2022 was $10.3 million and $14.2 million, respectively. The Company also records an inventory shrink reserve for estimated merchandise inventory losses between the last physical inventory count and the balance sheet date. This estimate is based on management's analysis of historical results. |
Advertising | Advertising Advertising production costs are expensed at the time the promotion first appears in media, stores, or on the website. Total advertising expense was $134.9 million, $135.0 million and $110.6 million in 2022, 2021, and 2020, respectively. Advertising costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost. Depreciation of property and equipment is computed on a straight-line basis, using the following useful lives: Category Depreciable Life Software, including software developed for internal use 3 - 7 years Store related assets and other property and equipment 3 - 10 years Furniture, fixtures and equipment 5 - 7 years Leasehold improvements Shorter of lease term or useful life of the asset, typically no longer than 10 years Building improvements 6 - 30 years When a decision is made to dispose of property and equipment prior to the end of its previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in other operating income, net, in the Consolidated Statements of Income and Comprehensive Income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Store Asset Impairment Property and equipment, including the right of use assets, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur indicating the carrying value of these assets may not be recoverable, an impairment test is required. These events include, but are not limited to, material adverse changes in projected revenues, 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 assumption used in the undiscounted future store cash flow models is the sales growth rate. 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 2022, 2021 and 2020, the Company recognized impairment charges as follows: 2022 2021 2020 (in thousands) Right of use asset impairment $ 1,483 $ — $ 25,117 Property and equipment asset impairment 667 — 9,263 Total asset impairment $ 2,150 $ — $ 34,380 Impairment charges are recorded in cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income. |
Equity Method Investments | Equity Method Investments The Company accounts for each of its equity investments through which it exercises significant influence but does not have control over the investee under the equity method. Under the equity method, the Company recorded its investment in the investee on the balance sheet initially at cost, and subsequently adjusts the carrying amount based on its share of the investee's net income or loss. Royalty distributions received from the investee are recognized as a reduction of the carrying amount of the investment. The Company's share of equity (income)/losses and other adjustments associated with these equity investments will be included in other operating income, net in the Consolidated Statements of Income and Comprehensive Income. The carrying value for the Company's equity investment is reported in Equity Method Investment on the Consolidated Balance Sheets. The Company reports its share of earnings using a one-month lag because results are not available in time for it to record them in the concurrent period. This convention does not materially impact the Company's results. The Company reviews its equity investments accounted for under the equity method of accounting for impairment by comparing the fair value of each of its investments to their carrying value. If the carrying value of an investment exceeds its fair value and the loss in value is other than temporary, the investment is considered impaired and reduced to fair value, and the impairment is recognized in the period identified. Factors providing evidence of such a loss include changes in the investee's operations or financial condition, significant continuing losses, significant negative economic conditions or a significant decrease in the market value. Impairment charges are recorded in other expense/(income), net in the Consolidated Statements of Income and Comprehensive Income. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company's assets and liabilities. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. The Company considers all available evidence, both positive and negative, when evaluating whether deferred tax assets are realizable. Such factors include past operating results, taxable income in prior carryback years, future reversal of existing temporary differences, prudent and feasible tax planning strategies and forecasts of future operating income. The past operating results is given more weight than expectations of future profitability, which is inherently uncertain. The assumptions utilized in determining future taxable income require significant judgment and actual operating results in future years could differ from the Company’s current assumptions and estimates. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when the Company's judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense in the Consolidated Statements of Income and Comprehensive Income. Accrued interest and penalties are included within other long-term liabilities on the Consolidated Balance Sheets. The income tax liability was $8.0 million and $0.8 million as of January 28, 2023 and January 29, 2022, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The Company may be subject to periodic audits by the Internal Revenue Service ("IRS") and other taxing authorities. These audits may challenge certain of the Company's tax positions, such as the timing and amount of deductions and allocation of taxable income to various jurisdictions. |
Self-Insurance | Self-Insurance The Company is generally self-insured in the United States for medical, workers' compensation and general liability benefits up to certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self-insurance is included in accrued expenses on the Consolidated Balance Sheets. |
Revenue Recognition | Revenue Recognition The following is information regarding the Company's major product categories and sales channels: 2022 2021 2020 (in thousands) Apparel $ 1,667,833 $ 1,652,706 $ 1,033,140 Accessories and other 144,356 168,211 132,069 Other revenue 51,993 49,379 43,165 Total net sales $ 1,864,182 $ 1,870,296 $ 1,208,374 2022 2021 2020 (in thousands) Retail $ 1,314,647 $ 1,339,091 $ 860,613 Outlet 497,542 481,826 304,596 Other revenue 51,993 49,379 43,165 Total net sales $ 1,864,182 $ 1,870,296 $ 1,208,374 Merchandise returns are reflected in the accounting records of the channel where they are physically returned. Other revenue consists primarily of revenue earned from our private label credit card agreement, shipping and handling revenue related to eCommerce activity, sell-off revenue related to marked-out-of-stock inventory sales to third parties, revenue from gift card breakage and revenue from franchise agreements. Revenue related to the Company’s international franchise operations was not material for any period presented and, therefore, is not reported separately from domestic revenue. Merchandise Sales The Company recognizes sales for in-store purchases at the point-of-sale. Revenue related to eCommerce transactions is recognized upon shipment based on the fact that control transfers to the customer at that time. The Company has made a policy election to treat shipping and handling as costs to fulfill the contract, and as a result, any amounts received from customers are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of goods sold, buying and occupancy costs in the Consolidated Statements of Income and Comprehensive Income for amounts paid to applicable carriers. Associate discounts on merchandise purchases are classified as a reduction of net sales. Net sales excludes sales tax collected from customers and remitted to governmental authorities. The Company also sells merchandise to multiple franchisees pursuant to different franchise agreements. Revenues may consist of sales of merchandise and/or royalties. Revenues from merchandise sold to franchisees are recorded at the time title transfers to the franchisees. Royalty revenue is based upon a percentage of the franchisee’s net sales to third parties and is earned when such sales to third parties occur. Loyalty Program The Company maintains a customer loyalty program in which customers earn points toward rewards for qualifying purchases and other marketing activities. Upon reaching specified point values, customers are issued a reward, which they may redeem on merchandise purchases at the Company’s stores or on its website. Generally, rewards earned must be redeemed within 60 days from the date of issuance. The Company defers a portion of merchandise sales based on the estimated standalone selling price of the points earned. This deferred revenue is recognized as certificates are redeemed or expire. To calculate this deferral, the Company makes assumptions related to card holder redemption rates based on historical experience. The loyalty liability is included in deferred revenue on the Consolidated Balance Sheets. 2022 2021 (in thousands) Beginning balance loyalty deferred revenue $ 10,918 $ 8,951 (Revenue recognized)/reduction in revenue (979) 1,967 Ending balance loyalty deferred revenue $ 9,939 $ 10,918 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 $9.0 million and $9.8 million as of January 28, 2023 and January 29, 2022, respectively, and is included in accrued expenses on the Consolidated Balance Sheets. The asset related to projected returned merchandise is included in other assets on the Consolidated Balance Sheets. Gift Cards The Company sells gift cards in its stores, on its eCommerce website and through third parties. These gift cards do not expire or lose value over periods of inactivity. The Company accounts for gift cards by recognizing a liability at the time a gift card is sold. The gift card liability balance was $25.6 million and $25.1 million as of January 28, 2023 and January 29, 2022, respectively, and is included in deferred revenue on the Consolidated Balance Sheets. During 2022 and 2021, the Company recognized approximately $13.9 million and $8.2 million of revenue that was previously included in the beginning gift card contract liability, respectively. The Company recognizes revenue from gift cards when they are redeemed by the customer. The Company also recognizes income on unredeemed gift cards, referred to as “gift card breakage.” Gift card breakage is recognized proportionately using a time-based attribution method from issuance of the gift card to the time when it can be determined that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit unredeemed gift cards to relevant jurisdictions. The gift card breakage rate is based on historical redemption patterns. Gift card breakage is included within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2022 2021 (in thousands) Beginning gift card liability $ 25,066 $ 23,478 Issuances 30,780 31,339 Redemptions (27,303) (27,218) Gift card breakage (2,939) (2,533) Ending gift card liability $ 25,604 $ 25,066 Private Label Credit Card The Company has an agreement with Comenity Bank (the “Bank”) to provide customers with private label credit cards (the “Card Agreement”) which was amended on August 28, 2017 to extend the term of the arrangement through December 31, 2024. Each private label credit card bears the logo of the Express brand and can only be used at the Company’s store locations and eCommerce channel. The Bank is the sole owner of the accounts issued under the private label credit card program and absorbs the losses associated with non-payment by the private label card holders and a portion of any fraudulent usage of the accounts. Pursuant to the Card Agreement, the Company receives amounts from the Bank during the term based on a percentage of private label credit card sales and is also eligible to receive incentive payments for the achievement of certain performance targets. These funds are recorded within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. The Company also receives reimbursement funds from the Bank for certain expenses the Company incurs. These reimbursement funds are used by the Company to fund marketing and other programs associated with the private label credit card. The reimbursement funds received related to private label credit cards are recorded within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. In connection with the Card Agreement, the Bank agreed to pay the Company a $20.0 million refundable payment which the Company recognized upon receipt as deferred revenue within other long-term liabilities in the Consolidated Balance Sheets and began to recognize into income on a straight-line basis commencing January 2018. As of January 28, 2023, the deferred revenue balance of $5.5 million will be recognized over the remaining term of the amended Card Agreement within the other revenue component of net sales in the Consolidated Statements of Income and Comprehensive Income. 2022 2021 (in thousands) Beginning balance refundable payment liability $ 8,394 $ 11,272 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 5,516 $ 8,394 Cost of Goods Sold, Buying and Occupancy Costs Cost of goods sold, buying and occupancy costs, includes merchandise costs, freight, inventory shrinkage and other gross margin related expenses. Buying and occupancy expenses primarily include payroll, benefit costs, and other operating expenses for the buying departments (merchandising, design, manufacturing and planning and allocation), distribution, eCommerce fulfillment, rent, common area maintenance, real estate taxes, utilities, maintenance and depreciation for stores. |
Selling, General and Administrative Expenses | Selling, General, and Administrative Expenses Selling, general, and administrative expenses include all operating costs not included in cost of goods sold, buying and occupancy costs, with the exception of proceeds received from insurance claims and gain/loss on disposal of |
Other Operating Income, Net | Other Operating Income, Net Other operating income, net primarily consists of gains/losses on disposal of assets, excess proceeds from the settlement of insurance claims and the write off of certain costs associated with aborted debt negotiations. |
Other (Income)/Expense, Net | Other (Income)/Expense, Net Other (income)/expense, net primarily consists of payments received from Homage, LLC discussed in Note 4 . |
Share-Based Compensation | The Company records the fair value of share-based payments to employees in the Consolidated Statements of Income and Comprehensive Income as compensation expense, net of forfeitures, over the requisite service period. The Company issues shares of common stock from treasury stock, at average cost, upon exercise of stock options and vesting of restricted stock units, including those with performance conditions.The fair value of the RSUs is determined based on the Company's closing stock price on the day prior to the grant date in accordance with the 2018 Plan.The Company uses the Black-Scholes-Merton option-pricing model to value stock options granted to employees and directors. The Company's determination of the fair value of stock options is affected by the Company's stock price, as well as a number of subjective and complex assumptions. These assumptions include the risk-free interest rate, the Company's expected stock price volatility over the term of the awards, expected term of the award, and dividend yield. |
Retirement Benefits | The employees of the Company, if eligible, participate in a qualified defined contribution retirement plan (the “Qualified Plan”) sponsored by the Company. Participation in the Company's Qualified Plan is available to employees who meet certain age and service requirements. The Qualified Plan permits employees to elect contributions up to the lesser of 15% of their compensation or the maximum limits allowable under the Internal Revenue Code ("IRC"). The Company matches employee contributions according to a predetermined formula. Employee contributions and Company matching contributions vest immediately. Total expense recognized related to the Qualified Plan employer match was $3.8 million, $3.7 million, and $3.4 million in 2022, 2021, and 2020, respectively. |
Description of Business and B_2
Description of Business and Basis of Presentation (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Description of Business and Basis of Presentation [Abstract] | |
Schedule of Fiscal Period | All references herein to the Company's fiscal years are as follows: Fiscal Year Year Ended Number of Weeks 2022 January 28, 2023 52 2021 January 29, 2022 52 2020 January 30, 2021 52 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [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 Consolidated Balance Sheets, measured at fair value on a recurring basis as of January 28, 2023 and January 29, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall. January 28, 2023 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 47,792 $ — $ — January 29, 2022 Level 1 Level 2 Level 3 (in thousands) Money market funds $ — $ — $ — |
Schedule of Depreciable Lives | Depreciation of property and equipment is computed on a straight-line basis, using the following useful lives: Category Depreciable Life Software, including software developed for internal use 3 - 7 years Store related assets and other property and equipment 3 - 10 years Furniture, fixtures and equipment 5 - 7 years Leasehold improvements Shorter of lease term or useful life of the asset, typically no longer than 10 years Building improvements 6 - 30 years |
Schedule of Impairment Charges | During 2022, 2021 and 2020, the Company recognized impairment charges as follows: 2022 2021 2020 (in thousands) Right of use asset impairment $ 1,483 $ — $ 25,117 Property and equipment asset impairment 667 — 9,263 Total asset impairment $ 2,150 $ — $ 34,380 |
Schedule of Revenue by Major Product Categories and Sales Channels | The following is information regarding the Company's major product categories and sales channels: 2022 2021 2020 (in thousands) Apparel $ 1,667,833 $ 1,652,706 $ 1,033,140 Accessories and other 144,356 168,211 132,069 Other revenue 51,993 49,379 43,165 Total net sales $ 1,864,182 $ 1,870,296 $ 1,208,374 2022 2021 2020 (in thousands) Retail $ 1,314,647 $ 1,339,091 $ 860,613 Outlet 497,542 481,826 304,596 Other revenue 51,993 49,379 43,165 Total net sales $ 1,864,182 $ 1,870,296 $ 1,208,374 |
Schedule of Contract with Customer, Liability | 2022 2021 (in thousands) Beginning balance loyalty deferred revenue $ 10,918 $ 8,951 (Revenue recognized)/reduction in revenue (979) 1,967 Ending balance loyalty deferred revenue $ 9,939 $ 10,918 2022 2021 (in thousands) Beginning gift card liability $ 25,066 $ 23,478 Issuances 30,780 31,339 Redemptions (27,303) (27,218) Gift card breakage (2,939) (2,533) Ending gift card liability $ 25,604 $ 25,066 2022 2021 (in thousands) Beginning balance refundable payment liability $ 8,394 $ 11,272 Recognized in revenue (2,878) (2,878) Ending balance refundable payment liability $ 5,516 $ 8,394 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of: January 28, 2023 January 29, 2022 (in thousands) Building improvements $ 16,312 $ 16,206 Furniture, fixtures and equipment, and software 582,205 557,130 Leasehold improvements 402,598 393,221 Construction in process 17,652 8,433 Other 810 812 Total 1,019,577 975,802 Less: accumulated depreciation (886,193) (827,820) Property and equipment, net $ 133,384 $ 147,982 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table is a summary of the Company’s equity method investment: % of Ownership Balance Sheet Location January 28, 2023 (in thousands) EXP Topco, LLC. 40% Equity Method Investment $ 166,106 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Net Lease Cost and Supplemental Cash Flow Information | The following table is a summary of the Company’s components of net lease cost, which is included in cost of goods sold, buying and occupancy costs, in the Consolidated Statements of Income and Comprehensive Income: 2022 2021 2020 (in thousands) Operating lease costs $ 220,682 $ 234,911 $ 272,896 Variable and short-term lease costs 63,516 45,355 60,925 Total lease costs $ 284,198 $ 280,266 $ 333,821 Supplemental cash flow information related to leases is as follows: 2022 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 253,197 $ 296,353 $ 197,824 Right of use assets obtained in exchange for operating lease liabilities $ 45,136 $ 44,952 $ 44,433 |
Balance Sheet Supplemental Disclosures, Lessee | Supplemental balance sheet information related to leases is as follows: 2022 2021 2020 Operating leases: Weighted average remaining lease term (in years) 3.8 4.4 5.1 Weighted average discount rate 6.9 % 6.5 % 5.4 % |
Operating Lease Maturity | The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheets as of January 28, 2023: January 28, 2023 (in thousands) 2023 $ 209,072 2024 177,265 2025 132,509 2026 78,104 2027 45,314 Thereafter 33,809 Total minimum lease payments 676,073 Less: amount of lease payments representing interest 80,619 Present value of future minimum lease payments 595,454 Less: current obligations under leases 189,006 Long-term lease obligations $ 406,448 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision (benefit) for income taxes consists of the following: 2022 2021 2020 Current: (in thousands) U.S. federal $ 8,273 $ (239) $ (109,627) U.S. state and local 1,312 554 (1,240) Total 9,585 315 (110,867) Deferred: U.S. federal 3,546 — 37,292 U.S. state and local 7,322 — 17,675 Total 10,868 — 54,967 Income tax (benefit)/expense $ 20,453 $ 315 $ (55,900) |
Schedule of Effective Income Tax Rate Reconciliation | The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate: 2022 2021 2020 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 6.4 % (5.0) % 5.2 % Change in uncertain tax positions 0.4 % 0.8 % 0.1 % Share-based compensation 0.1 % (3.2) % (0.3) % Non-deductible executive compensation 0.6 % (22.6) % (0.2) % Change in valuation allowance (21.8) % 4.0 % (22.9) % Change in tax law — % — % 9.1 % Tax credits (0.3) % 3.7 % 0.1 % Other items, net 0.1 % (0.9) % — % Effective tax rate 6.5 % (2.2) % 12.1 % |
Schedule of Deferred Tax Assets and Liabilities | The following table provides the effect of temporary differences that created deferred income taxes as of January 28, 2023 and January 29, 2022. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carry-forwards at the end of the respective periods. January 28, 2023 January 29, 2022 (in thousands) Deferred tax assets: Accrued expenses and deferred compensation $ 9,999 $ 13,693 Lease liability 161,389 197,063 Intangible assets 10,851 21,402 Inventory 1,136 — Deferred revenue 5,418 5,142 Other 871 986 Net operating losses, tax credit and other carryforwards 17,693 41,137 Valuation allowance (41,767) (107,669) Total deferred tax assets 165,590 171,754 Deferred tax liabilities: Prepaid expenses 2,374 2,844 Inventory — 1,305 Right of use asset 133,149 161,105 Investment in Joint Venture 36,500 — Property and equipment 4,435 6,500 Total deferred tax liabilities 176,458 171,754 Net deferred tax asset/(liability) $ (10,868) $ — |
Summary of Valuation Allowance | The following table summarizes the changes in the valuation allowance: 2022 2021 2020 (in thousands) Valuation allowance, beginning of year $ 107,669 $ 108,418 $ 2,313 Changes in related gross deferred tax assets/liabilities 2,661 (228) 410 Charge/(release) (68,563) (521) 105,695 Valuation allowance, end of year $ 41,767 $ 107,669 $ 108,418 The decrease in the valuation allowance in 2022 is primarily attributable to the gain on the transaction with WHP. The gain on the transaction with WHP in 2022 allowed the Company to utilize certain deferred tax assets and tax attributes with a corresponding release to the Company's valuation allowance. |
Unrecognized Tax Benefits Rollforward | A reconciliation of the beginning to ending unrecognized tax benefits is as follows: January 28, 2023 January 29, 2022 January 30, 2021 (in thousands) Unrecognized tax benefits, beginning of year $ 1,573 $ 1,388 $ 1,305 Gross addition for tax positions of the current year 335 — — Gross addition for tax positions of the prior year 174 291 327 Settlements — — — Reduction for tax positions of prior years — — — Lapse of statute of limitations (115) (106) (244) Unrecognized tax benefits, end of year $ 1,967 $ 1,573 $ 1,388 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company's outstanding debt as of the dates indicated: January 28, 2023 January 29, 2022 (in thousands) Term Loan Facility $ — $ 96,737 Revolving Facility 122,000 35,000 Total outstanding borrowings 122,000 131,737 Less: unamortized debt issuance costs — (2,940) Total debt, net 122,000 128,797 Less: current portion of long-term debt — 11,216 Long-term debt, net $ 122,000 $ 117,581 Outstanding letters of credit $ 19,636 $ 34,636 |
Long-Term Incentive Compensat_2
Long-Term Incentive Compensation (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Shared-based Compensation Expense | The following summarizes long-term incentive compensation expense: 2022 2021 2020 (in thousands) Restricted stock units $ 4,075 $ 6,212 $ 8,220 Stock options 350 728 1,242 Performance-based restricted stock units 3,115 2,869 — Total share-based compensation $ 7,540 $ 9,809 $ 9,462 Cash-settled awards 8,662 9,142 695 Total long-term incentive compensation $ 16,202 $ 18,951 $ 10,157 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The Company's activity with respect to RSUs for 2022 was as follows: Number of Shares Grant Date Weighted Average Fair Value (in thousands, except per share amounts) Unvested, January 29, 2022 3,561 $ 2.55 Granted 373 $ 2.60 Vested (1,888) $ 2.84 Forfeited (313) $ 2.39 Unvested, January 28, 2023 1,733 $ 2.27 |
Schedule of Stock Options Activity | The Company's activity with respect to stock options during 2022 was as follows: Number of Shares Grant Date Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands, except per share amounts and years) Outstanding, January 29, 2022 2,973 $ 5.39 Granted — $ — Exercised — $ — Forfeited or expired (116) $ 18.91 Outstanding, January 28, 2023 2,857 $ 4.84 5.8 $ — Expected to vest at January 28, 2023 279 $ 2.60 6.5 $ — Exercisable at January 28, 2023 2,577 $ 5.09 5.7 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Weighted-Average Shares | The following table provides a reconciliation between basic and diluted weighted-average shares used to calculate basic and diluted earnings per share: 2022 2021 2020 (in thousands) Weighted-average shares - basic 68,046 66,448 64,624 Dilutive effect of stock options, restricted stock units and restricted stock 1,012 — — Weighted-average shares - diluted 69,058 66,448 64,624 |
Description of Business and B_3
Description of Business and Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Nov. 23, 2022 USD ($) | Jan. 28, 2023 USD ($) store | Jan. 28, 2023 USD ($) store segment | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | Dec. 08, 2022 | Jan. 13, 2021 USD ($) | |
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of operating segments | segment | 1 | ||||||
Increase (decrease) in revenue from comparable prior year | $ (6,100) | ||||||
Operating income (loss) | (67,487) | $ 779 | $ (455,215) | ||||
Operating cash flow | (157,080) | 89,380 | (323,626) | ||||
Proceeds from transaction with WHP | $ 260,000 | ||||||
Repayment of borrowings under the term loan facility | 96,737 | 43,263 | $ 0 | ||||
Term Loan Facility | Secured Debt | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Debt, face amount | $ 140,000 | 140,000 | 140,000 | $ 140,000 | |||
FILO Term Loan | Secured Debt | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Debt, face amount | 90,000 | 90,000 | 90,000 | 90,000 | |||
Amended First In, Last Out Term Loan | Secured Debt | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Debt, face amount | 90,000 | 90,000 | 90,000 | ||||
Repayment of borrowings under the term loan facility | 90,000 | ||||||
Delayed Draw Term Loan Facility | Secured Debt | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Debt, face amount | 50,000 | ||||||
Debt terminated | 50,000 | 50,000 | |||||
Repayment of borrowings under the term loan facility | $ 43,300 | ||||||
Third Amendment To The Second Amended And Restated Asset-Based Loan Credit Agreement | Line of Credit | Revolving Credit Facility | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Maximum borrowing capacity | 290,000 | 290,000 | 290,000 | ||||
Maximum borrowing capacity increase | $ 40,000 | 40,000 | 40,000 | ||||
Amended Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000 | $ 250,000 | $ 250,000 | ||||
Joint Venture | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Equity method investment, ownership percentage | 40% | 40% | 40% | ||||
Retail And Factory Outlet | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores | store | 553 | 553 | |||||
Retail | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores | store | 355 | 355 | |||||
Outlet | |||||||
Description of Business and Basis of Presentation [Line Items] | |||||||
Number of stores | store | 198 | 198 |
Description of Business and B_4
Description of Business and Basis of Presentation - Fiscal Period (Details) | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fiscal period duration | 364 days | 364 days | 364 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Aug. 28, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Payments due from banks for third-party credit and debit card transactions | 5 days | |||
Amounts due from banks for credit and debit card transactions | $ 10,100 | $ 10,300 | ||
Outstanding checks not yet presented for payment | $ 31,200 | 29,100 | ||
Joint venture, ownership interest by third party | 60% | |||
Lower of cost or market adjustment to inventory | $ 10,300 | 14,200 | ||
Advertising expense | $ 134,900 | 135,000 | $ 110,600 | |
Equity method investments, lag on reporting share of earnings, period | 1 month | |||
Income tax liability | $ 8,000 | 800 | ||
Redemption period for rewards earned | 60 days | |||
Sales returns reserve | $ 9,000 | 9,800 | ||
Deferred revenue, current | $ 35,543 | 35,985 | ||
EXP Topco LLC | ||||
Disaggregation of Revenue [Line Items] | ||||
Equity method investment, ownership percentage | 40% | |||
Gift Card Liability | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue, current | $ 25,604 | 25,066 | 23,478 | |
Gift card contract liability recognized in revenue | 13,900 | 8,200 | ||
Comenity Bank | ||||
Disaggregation of Revenue [Line Items] | ||||
Gift card contract liability recognized in revenue | 2,878 | 2,878 | ||
Deferred revenue | $ 5,516 | $ 8,394 | $ 11,272 | |
Comenity Bank | Credit Card | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 20,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Money market funds - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 47,792 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) | 12 Months Ended |
Jan. 28, 2023 | |
Software, including software developed for internal use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Software, including software developed for internal use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Store related assets and other property and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Store related assets and other property and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 6 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Store Asset Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Accounting Policies [Abstract] | |||
Right of use asset impairment | $ 1,483 | $ 0 | $ 25,117 |
Property and equipment asset impairment | 667 | 0 | 9,263 |
Total asset impairment | $ 2,150 | $ 0 | $ 34,380 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue by Major Product Categories and Sales Channels (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,864,182 | $ 1,870,296 | $ 1,208,374 |
Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 1,667,833 | 1,652,706 | 1,033,140 |
Accessories and other | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 144,356 | 168,211 | 132,069 |
Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 51,993 | 49,379 | 43,165 |
Retail | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 1,314,647 | 1,339,091 | 860,613 |
Outlet | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 497,542 | $ 481,826 | $ 304,596 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Loyalty Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 35,985 | |
Ending balance | 35,543 | $ 35,985 |
Loyalty Program | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 10,918 | 8,951 |
Reduction in revenue/(revenue recognized) | (979) | 1,967 |
Ending balance | $ 9,939 | $ 10,918 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Gift Card Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 35,985 | |
Ending balance | 35,543 | $ 35,985 |
Gift Card Liability | ||
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 25,066 | 23,478 |
Ending balance | 25,604 | 25,066 |
Issuances | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | 30,780 | 31,339 |
Redemptions | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | (27,303) | (27,218) |
Gift card breakage | ||
Contract With Customer, Liability [Roll Forward] | ||
Increase (decrease) in gift card liability | $ (2,939) | $ (2,533) |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Refundable Payment Liability (Details) - Comenity Bank - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance refundable payment liability | $ 8,394 | $ 11,272 |
Recognized in revenue | (2,878) | (2,878) |
Ending balance refundable payment liability | $ 5,516 | $ 8,394 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,019,577 | $ 975,802 | |
Less: accumulated depreciation | (886,193) | (827,820) | |
Property and equipment, net | 133,384 | 147,982 | |
Depreciation | 61,500 | 66,500 | $ 76,100 |
Building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 16,312 | 16,206 | |
Furniture, fixtures and equipment, and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 582,205 | 557,130 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 402,598 | 393,221 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 17,652 | 8,433 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 810 | $ 812 |
Equity Method Investment - Schd
Equity Method Investment - Schdeule of Equity Method Investment (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment | $ 166,106 | $ 0 |
EXP Topco LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment | $ 166,106 | |
Equity method investment, ownership percentage | 40% |
Equity Method Investment - Narr
Equity Method Investment - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 25, 2023 | Dec. 08, 2022 | Jan. 29, 2022 | Oct. 31, 2020 | Jan. 28, 2023 | Jan. 28, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments, lag on reporting share of earnings, period | 1 month | |||||
Joint venture, ownership interest by third party | 60% | |||||
Equity Method Investment | $ 0 | $ 166,106,000 | ||||
License agreement, term | 10 years | |||||
License agreement, renewal term | 10 years | |||||
License agreement, minimum notice period for nonrenewal | 24 months | |||||
License agreement, annual guaranteed minimum royalty in first year | $ 60,000,000 | |||||
License agreement, annual guaranteed minimum royalty increase per year after first year and thru fifth year | $ 1,000,000 | |||||
License agreement, annual guaranteed minimum royalty increase per year, period | 5 years | |||||
License agreement, annual guaranteed minimum royalty at sixth year and thereafter | $ 65,000,000 | |||||
License agreement, royalty percentage on net sales from retail of certain licensed goods thru fifth year | 3.25% | |||||
License agreement, royalty percentage on net sales from retail of certain licensed goods, thereafter fifth year | 3.50% | |||||
License agreement, royalty percentage on net sales from wholesale of certain licensed goods | 8% | |||||
Prepaid royalties, initially recorded | 60,000,000 | |||||
Private Placement | WHP | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Shares sold in offering (in shares) | 5,400 | 5,400 | ||||
Sale of stock, price per share (in dollars per share) | $ 4.60 | $ 4.60 | ||||
Sale of stock, pro forma ownership percentage | 7.40% | |||||
Gain on sale of stock | 17,800,000 | |||||
Homage, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment | $ 10,100,000 | |||||
Notes receivable acquired on equity method investment interest | $ 1,500,000 | |||||
Proceeds from notes receivable | $ 300,000 | $ 1,200,000 | ||||
Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture, ownership interest by third party | 60% | |||||
Equity method investment, ownership percentage | 40% | 40% | ||||
Equity Method Investment | $ 156,700,000 | |||||
Equity method investment, transaction costs | 9,400,000 | |||||
Joint Venture | Intellectual Property | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 0 | |||||
Gain on contribution of intangible assets | 391,700,000 | |||||
Joint Venture | WHP | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire interest in joint venture | $ 235,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | |
Jan. 28, 2023 USD ($) renewal_option | Jan. 29, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Accrued minimum rent | $ | $ 6.2 | $ 7.7 |
Office Building | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 1 | |
Lease renewal term | 5 years | |
Minimum | Retail | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 5 years | |
Minimum | Equipment And Other Assets | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 3 years | |
Maximum | Retail | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 10 years | |
Maximum | Equipment And Other Assets | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 5 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 220,682 | $ 234,911 | $ 272,896 |
Variable and short-term lease costs | 63,516 | 45,355 | 60,925 |
Total lease costs | $ 284,198 | $ 280,266 | $ 333,821 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 253,197 | $ 296,353 | $ 197,824 |
Right of use assets obtained in exchange for operating lease liabilities | $ 45,136 | $ 44,952 | $ 44,433 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 |
Leases [Abstract] | |||
Weighted average remaining lease term (in years) | 3 years 9 months 18 days | 4 years 4 months 24 days | 5 years 1 month 6 days |
Weighted average discount rate | 6.90% | 6.50% | 5.40% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Leases [Abstract] | ||
2023 | $ 209,072 | |
2024 | 177,265 | |
2025 | 132,509 | |
2026 | 78,104 | |
2027 | 45,314 | |
Thereafter | 33,809 | |
Total minimum lease payments | 676,073 | |
Less: amount of lease payments representing interest | 80,619 | |
Present value of future minimum lease payments | 595,454 | |
Less: current obligations under leases | 189,006 | $ 196,628 |
Long-term lease obligations | $ 406,448 | $ 536,905 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Current: | |||
U.S. federal | $ 8,273 | $ (239) | $ (109,627) |
U.S. state and local | 1,312 | 554 | (1,240) |
Total | 9,585 | 315 | (110,867) |
Deferred: | |||
U.S. federal | 3,546 | 0 | 37,292 |
U.S. state and local | 7,322 | 0 | 17,675 |
Total | 10,868 | 0 | 54,967 |
Income tax (benefit)/expense | $ 20,453 | $ 315 | $ (55,900) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal income tax effect | 6.40% | (5.00%) | 5.20% |
Change in uncertain tax positions | 0.40% | 0.80% | 0.10% |
Share-based compensation | 0.10% | (3.20%) | (0.30%) |
Non-deductible executive compensation | 0.60% | (22.60%) | (0.20%) |
Change in valuation allowance | (21.80%) | 4% | (22.90%) |
Change in tax law | 0% | 0% | 9.10% |
Tax credits | (0.30%) | 3.70% | 0.10% |
Other items, net | 0.10% | (0.90%) | 0% |
Effective tax rate | 6.50% | (2.20%) | 12.10% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred tax assets: | ||||
Accrued expenses and deferred compensation | $ 9,999 | $ 13,693 | ||
Lease liability | 161,389 | 197,063 | ||
Intangible assets | 10,851 | 21,402 | ||
Inventory | 1,136 | 0 | ||
Deferred revenue | 5,418 | 5,142 | ||
Other | 871 | 986 | ||
Net operating losses, tax credit and other carryforwards | 17,693 | 41,137 | ||
Valuation allowance | (41,767) | (107,669) | $ (108,418) | $ (2,313) |
Total deferred tax assets | 165,590 | 171,754 | ||
Deferred tax liabilities: | ||||
Prepaid expenses | 2,374 | 2,844 | ||
Inventory | 0 | 1,305 | ||
Right of use asset | 133,149 | 161,105 | ||
Investment in Joint Venture | 36,500 | 0 | ||
Property and equipment | 4,435 | 6,500 | ||
Total deferred tax liabilities | 176,458 | 171,754 | ||
Net deferred tax asset/(liability) | $ (10,868) | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Income taxes receivable, net operating loss, CARES Act | $ 52,300 | ||
Deferred tax assets, operating loss carryforwards, state and local | 352,000 | ||
Deferred tax assets, tax credit carryforwards, foreign | 100 | ||
Unrecognized tax benefits that would impact effective tax rate | 2,000 | $ 1,600 | $ 1,400 |
Net interest in tax expense related to interest and penalties | 100 | (100) | $ (100) |
Accrued interest on unrecognized benefits | 500 | 300 | |
Resolution of federal and state tax examinations could reduce the Company's unrecognized tax benefits | 200 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 0 | ||
Uncertain tax positions | 100 | 100 | |
Interest accrued | $ 100 | $ 100 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning of year | $ 107,669 | $ 108,418 | $ 2,313 |
Changes in related gross deferred tax assets/liabilities | 2,661 | (228) | 410 |
Charge/(release) | (68,563) | (521) | 105,695 |
Valuation allowance, end of year | $ 41,767 | $ 107,669 | $ 108,418 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 1,573 | $ 1,388 | $ 1,305 |
Gross addition for tax positions of the current year | 335 | 0 | 0 |
Gross addition for tax positions of the prior year | 174 | 291 | 327 |
Settlements | 0 | 0 | 0 |
Reduction for tax positions of prior years | 0 | 0 | 0 |
Lapse of statute of limitations | (115) | (106) | (244) |
Unrecognized tax benefits, end of year | $ 1,967 | $ 1,573 | $ 1,388 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Debt Instrument [Line Items] | ||
Total outstanding borrowings | $ 122,000 | $ 131,737 |
Less: unamortized debt issuance costs | 0 | (2,940) |
Total debt, net | 122,000 | 128,797 |
Less: current portion of long-term debt | 0 | 11,216 |
Long-term debt, net | 122,000 | 117,581 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 0 | 96,737 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings | 122,000 | 35,000 |
Outstanding letters of credit | $ 19,636 | $ 34,636 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||
Jan. 25, 2023 USD ($) | Nov. 23, 2022 USD ($) | Mar. 17, 2020 USD ($) | Jan. 28, 2023 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | Jan. 13, 2021 USD ($) | May 24, 2019 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Proceeds from debt drawn down | $ 0 | $ 50,000,000 | $ 90,000,000 | ||||||
Repayment of borrowings under the term loan facility | 96,737,000 | 43,263,000 | 0 | ||||||
Proceeds from borrowings under the revolving credit facility | 350,470,000 | 148,000,000 | $ 165,000,000 | ||||||
Secured Debt | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 140,000,000 | $ 140,000,000 | 140,000,000 | $ 140,000,000 | |||||
Debt, fair value | 98,000,000 | ||||||||
Secured Debt | FILO Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 90,000,000 | 90,000,000 | 90,000,000 | 90,000,000 | |||||
Refinancing costs | $ 5,100,000 | ||||||||
Early debt termination fees | 4,500,000 | ||||||||
Amortization of debt discount | $ 1,800,000 | ||||||||
Secured Debt | Delayed Draw Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 50,000,000 | ||||||||
Proceeds from debt drawn down | 50,000,000 | ||||||||
Repayment of borrowings under the term loan facility | 43,300,000 | ||||||||
Debt terminated | 50,000,000 | 50,000,000 | |||||||
Secured Debt | Amended First In, Last Out Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 90,000,000 | 90,000,000 | 90,000,000 | ||||||
Repayment of borrowings under the term loan facility | 90,000,000 | ||||||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | 19,636,000 | 19,636,000 | 34,636,000 | ||||||
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 | Revolving Credit Facility | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | 34,600,000 | ||||||||
Line of Credit | Revolving Credit Facility | Trade Letter Of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | 0 | ||||||||
Line of Credit | Amended Revolving Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 250,000,000 | 250,000,000 | $ 250,000,000 | ||||||
Line of Credit | Amended Revolving Credit Facility | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | 19,600,000 | 19,600,000 | |||||||
Line of Credit | Amended Revolving Credit Facility | Trade Letter Of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | 0 | $ 0 | |||||||
Expiration term for trade letters of credit | 21 days | ||||||||
Line of Credit | Third Amendment To The Second Amended And Restated Asset-Based Loan Credit Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, fair value | 115,000,000 | $ 115,000,000 | $ 36,500,000 | ||||||
Maximum borrowing capacity | 290,000,000 | 290,000,000 | 290,000,000 | ||||||
Maximum borrowing capacity increase | $ 40,000,000 | 40,000,000 | 40,000,000 | ||||||
Line of credit, borrowings outstanding | 122,000,000 | 122,000,000 | |||||||
Unused line fee payable | 0.25% | ||||||||
Debt, covenant, minimum excess availability, amount | $ 25,000,000 | ||||||||
Debt, covenant, minimum excess availability, percentage | 10% | ||||||||
Debt, covenant, EBITDA threshold for two consecutive quarters | $ 50,000,000 | ||||||||
Debt, covenant, minimum excess availability, consecutive trading days | 30 days | ||||||||
Minimum fixed charge coverage ratio | 1 | ||||||||
Debt default, principal, additional interest rate | 2% | ||||||||
Debt default, base rate loans, additional interest rate | 2% | ||||||||
Line of credit, remaining borrowing capacity | 148,400,000 | 148,400,000 | |||||||
Line of Credit | Third Amendment To The Second Amended And Restated Asset-Based Loan Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, borrowings outstanding | $ 122,000,000 | $ 122,000,000 | |||||||
Effective interest rate | 6.50% | 6.50% | |||||||
Line of Credit | Third Amendment To The Second Amended And Restated Asset-Based Loan Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Line of Credit | Third Amendment To The Second Amended And Restated Asset-Based Loan Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.25% | ||||||||
Line of Credit | Third Amendment To The Second Amended And Restated Asset-Based Loan Credit Agreement | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit | $ 19,600,000 | $ 19,600,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jan. 25, 2023 | Dec. 08, 2022 | Apr. 29, 2023 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Nov. 28, 2017 | |
Class of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 150 | ||||||
Treasury stock, acquired (in shares) | 0 | 0 | 0 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 34.2 | ||||||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||
At The Market Offering | Forecast | |||||||
Class of Stock [Line Items] | |||||||
Shares sold in offering (in shares) | 15,000 | ||||||
Private Placement | WHP | |||||||
Class of Stock [Line Items] | |||||||
Shares sold in offering (in shares) | 5,400 | 5,400 | |||||
Sale of stock, price per share (in dollars per share) | $ 4.60 | $ 4.60 | |||||
Aggregate purchase price of stock | $ 25 | ||||||
Percentage of ownership after sale of stock | 7.40% | ||||||
Excess consideration received over fair value | $ 17.8 |
Long-Term Incentive Compensat_3
Long-Term Incentive Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Mar. 17, 2020 | Jun. 13, 2018 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
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 | $ 3.1 | $ 4.2 | $ 0.9 | ||
Tax benefit from share-based compensation expense, valuation allowance | $ 3.1 | 4.2 | 0 | ||
Granted (in shares) | 0 | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of options vested | $ 5.4 | $ 8.8 | $ 7.4 | ||
Unrecognized share-based compensation expense | $ 1.2 | ||||
Granted (in shares) | 373 | ||||
Granted (in USD per share) | $ 2.60 | ||||
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 share-based compensation expense | $ 0.2 | ||||
Period for recognition | 6 months | ||||
Performance shares, restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Period for recognition | 1 year 7 months 6 days | ||||
Granted (in shares) | 1,900 | ||||
Granted (in USD per share) | $ 3.97 | ||||
Unrecognized compensation costs | $ 5.5 | ||||
Performance shares, restricted stock units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target percentage of performance-based restricted stock units which can be earned | 0% | ||||
Performance shares, restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target percentage of performance-based restricted stock units which can be earned | 200% | ||||
Time-Based Cash-Settled Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Period for recognition | 1 year 4 months 24 days | ||||
Unrecognized compensation costs | $ 11.9 | ||||
Performance-Based Cash-Settled Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Period for recognition | 2 months 12 days | ||||
Unrecognized compensation costs | $ 0.6 | ||||
Award performance period | 2 years | ||||
Performance-Based Cash-Settled Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target percentage of performance-based restricted stock units which can be earned | 0% | ||||
Performance-Based Cash-Settled Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target percentage of performance-based restricted stock units which can be earned | 200% | ||||
Performance-Based Cash-Settled Awards, Granted in 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Award performance period | 2 years |
Long-Term Incentive Compensat_4
Long-Term Incentive Compensation - Cost by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 7,540 | $ 9,809 | $ 9,462 |
Long-term incentive compensation | 16,202 | 18,951 | 10,157 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 4,075 | 6,212 | 8,220 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 350 | 728 | 1,242 |
Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 3,115 | 2,869 | 0 |
Cash-settled awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long-term incentive compensation | $ 8,662 | $ 9,142 | $ 695 |
Long-Term Incentive Compensat_5
Long-Term Incentive Compensation - Restricted Stock Units (Details) - Restricted stock units shares in Thousands | 12 Months Ended |
Jan. 28, 2023 $ / shares shares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 3,561 |
Granted (in shares) | shares | 373 |
Vested (in shares) | shares | (1,888) |
Forfeited (in shares) | shares | (313) |
Unvested at end of period (in shares) | shares | 1,733 |
Grant Date Weighted Average Fair Value | |
Grant date weighted average fair value at beginning of period (in USD per share) | $ / shares | $ 2.55 |
Granted (in USD per share) | $ / shares | 2.60 |
Vested (in USD per share) | $ / shares | 2.84 |
Forfeited (in USD per share) | $ / shares | 2.39 |
Grant date weighted average fair value at end of period (in USD per share) | $ / shares | $ 2.27 |
Long-Term Incentive Compensat_6
Long-Term Incentive Compensation - Schedule of Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jan. 28, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 2,973 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | (116) |
Outstanding at end of period (in shares) | shares | 2,857 |
Expected to vest at end of period (in shares) | shares | 279 |
Exercisable at end of period (in shares) | shares | 2,577 |
Grant Date Weighted Average Exercise Price | |
Weighted average exercise price of beginning of period (in USD per share) | $ / shares | $ 5.39 |
Granted (in USD per share) | $ / shares | 0 |
Exercised (in USD per share) | $ / shares | 0 |
Forfeited or expired (in USD per share) | $ / shares | 18.91 |
Weighted average exercise price of end of period (in USD per share) | $ / shares | 4.84 |
Expected to vest at end of period (in USD per share) | $ / shares | 2.60 |
Exercisable at end of period (in USD per share) | $ / shares | $ 5.09 |
Weighted-Average Remaining Contractual Life (in years) | |
Outstanding at end of period | 5 years 9 months 18 days |
Expected to vest at end of period | 6 years 6 months |
Exercisable at end of period | 5 years 8 months 12 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 0 |
Expected to vest at end of period | $ | 0 |
Exercisable at end of period | $ | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average shares - basic (in shares) | 68,046 | 66,448 | 64,624 |
Dilutive effect of stock options, restricted stock units, and restricted stock (in shares) | 1,012 | 0 | 0 |
Weighted-average shares - diluted (in shares) | 69,058 | 66,448 | 64,624 |
Potentially dilutive securities (in shares) | 3,400 | 7,800 | 10,600 |
Performance-based restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 2,900 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Employee contributions percentage (up to) | 15% | ||
Employer match | $ 3.8 | $ 3.7 | $ 3.4 |