Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 02, 2013 | Dec. 12, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 2-Nov-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'VRA | ' |
Entity Registrant Name | 'Vera Bradley, Inc. | ' |
Entity Central Index Key | '0001495320 | ' |
Current Fiscal Year End Date | '--02-01 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 40,606,731 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $13,712 | $9,603 |
Accounts receivable, net | 42,922 | 34,811 |
Inventories | 150,512 | 131,562 |
Income taxes receivable | 1,632 | 0 |
Prepaid expenses and other current assets | 9,964 | 11,016 |
Deferred income taxes | 12,373 | 11,348 |
Total current assets | 231,115 | 198,340 |
Property, plant, and equipment, net | 81,969 | 77,211 |
Other assets | 1,289 | 1,768 |
Total assets | 314,373 | 277,319 |
Liabilities and Shareholders’ Equity | ' | ' |
Accounts payable | 27,595 | 14,853 |
Accrued employment costs | 11,691 | 14,162 |
Other accrued liabilities | 20,526 | 16,532 |
Income taxes payable | 0 | 7,094 |
Current portion of long-term debt | ' | 58 |
Total current liabilities | 59,812 | 52,699 |
Long-term debt | ' | 15,037 |
Deferred income taxes | 6,539 | 6,078 |
Other long-term liabilities | 12,249 | 9,250 |
Total liabilities | 78,600 | 83,064 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Preferred stock; 5,000 shares authorized, no shares issued or outstanding | ' | ' |
Common stock, without par value; 200,000 shares authorized, 40,606 and 40,563 shares issued and outstanding, respectively | ' | ' |
Additional paid-in-capital | 78,061 | 75,675 |
Retained earnings | 158,556 | 119,190 |
Accumulated other comprehensive loss | -844 | -610 |
Total shareholders’ equity | 235,773 | 194,255 |
Total liabilities and shareholders’ equity | $314,373 | $277,319 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, without par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 40,606,000 | 40,563,000 |
Common stock, shares outstanding | 40,606,000 | 40,563,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenues | $130,094 | $138,346 | $378,499 | $378,584 |
Cost of sales | 58,161 | 58,118 | 166,327 | 164,442 |
Gross profit | 71,933 | 80,228 | 212,172 | 214,142 |
Selling, general, and administrative expenses | 48,771 | 53,598 | 152,334 | 148,622 |
Other income | 1,027 | 941 | 3,608 | 4,660 |
Operating income | 24,189 | 27,571 | 63,446 | 70,180 |
Interest expense, net | 58 | 172 | 281 | 515 |
Income before income taxes | 24,131 | 27,399 | 63,165 | 69,665 |
Income tax expense | 8,905 | 9,657 | 23,799 | 25,924 |
Net income | $15,226 | $17,742 | $39,366 | $43,741 |
Basic weighted-average shares outstanding | 40,605 | 40,534 | 40,596 | 40,527 |
Basic net income per share | 40,652 | 40,574 | 40,633 | 40,563 |
Basic net income per share (in dollars per share) | $0.37 | $0.44 | $0.97 | $1.08 |
Diluted net income per share (in dollars per share) | $0.37 | $0.44 | $0.97 | $1.08 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $15,226 | $17,742 | $39,366 | $43,741 |
Cumulative translation adjustment | 47 | -189 | -234 | -206 |
Comprehensive income | $15,273 | $17,553 | $39,132 | $43,535 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $39,366 | $43,741 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation of property, plant, and equipment | 10,651 | 7,424 |
Provision for doubtful accounts | -190 | 370 |
Loss on disposal of property, plant, and equipment | 9 | 25 |
Stock-based compensation | 2,857 | 2,198 |
Deferred income taxes | -624 | -548 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -7,921 | -9,139 |
Inventories | -19,154 | -28,489 |
Prepaid expenses and other assets | 1,531 | -2,397 |
Accounts payable | 12,742 | 9,407 |
Income taxes payable | -8,726 | -1,647 |
Accrued and other liabilities | 4,305 | 1,292 |
Net cash provided by operating activities | 34,846 | 22,237 |
Cash flows from investing activities | ' | ' |
Purchases of property, plant, and equipment | -15,418 | -32,114 |
Net cash used in investing activities | -15,418 | -32,114 |
Cash flows from financing activities | ' | ' |
Payments on financial-institution debt | -45,000 | -70,750 |
Borrowings on financial-institution debt | 30,000 | 81,000 |
Tax withholdings for equity compensation | -411 | -736 |
Other financing activities, net | 122 | -66 |
Net cash (used in) provided by financing activities | -15,289 | 9,448 |
Effect of exchange rate changes on cash and cash equivalents | -30 | -25 |
Net increase (decrease) in cash and cash equivalents | 4,109 | -454 |
Cash and cash equivalents, beginning of period | 9,603 | 4,922 |
Cash and cash equivalents, end of period | $13,712 | $4,468 |
Description_of_the_Company_and
Description of the Company and Basis of Presentation | 9 Months Ended |
Nov. 02, 2013 | |
Accounting Policies [Abstract] | ' |
Description of the Company and Basis of Presentation | ' |
Description of the Company and Basis of Presentation | |
The terms “Company” and “Vera Bradley” refer to Vera Bradley, Inc. and its subsidiaries, except where context requires or where otherwise indicated. | |
Vera Bradley is a leading designer, producer, marketer, and retailer of stylish, highly functional accessories primarily for women. The Company’s products include a wide offering of handbags, accessories, and travel and leisure items. The Company generates net revenues by selling products through two reportable segments: Direct and Indirect. The Direct business consists of sales of Vera Bradley products through the Company’s full-price and outlet stores in the United States, department store locations in Japan, its websites, verabradley.com and verabradley.co.jp, and its annual outlet sale in Fort Wayne, Indiana. As of November 2, 2013, the Company operated 84 full-price stores and 15 outlet stores. The Indirect business consists of sales of Vera Bradley products to approximately 3,400 specialty retailers, substantially all of which are located in the United States, as well as select department stores, national accounts, and third party e-commerce sites. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013, filed with the SEC. | |
The interim financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly the results for the interim periods presented. All such adjustments are of a normal, recurring nature. The results of operations for the thirteen and thirty-nine weeks ended November 2, 2013, are not necessarily indicative of the results to be expected for the full fiscal year. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has eliminated intercompany balances and transactions in consolidation. | |
Fiscal Periods | |
The Company’s fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended November 2, 2013, and October 27, 2012, refer to the thirteen-week periods ended on those dates. | |
Recently Issued Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-2”). This guidance adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The additional disclosures include: (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of accumulated other comprehensive income. The changes in accumulated other comprehensive income balance by component will be disaggregated to separately present reclassification adjustments and current-period other comprehensive income. Significant items reclassified out of accumulated other comprehensive income by component are required to be presented either on the face of the statement of income or as separate disclosure in the notes to the financial statements. These additional disclosures may be presented before-tax or net-of tax as long as the income tax benefit or expense attributed to each component of other comprehensive income and reclassification adjustments is presented in the financial statement or in the notes to the financial statements. The guidance is effective for interim and annual periods beginning after December 15, 2012 and should be applied prospectively. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. | |
In October 2012, the FASB issued ASU 2012-4, Technical Corrections and Improvements. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Earnings per share is computed under the provisions of ASC 260, Earnings Per Share. Basic earnings per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of common shares outstanding, plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock. The components of basic and diluted earnings per share were as follows (in thousands, except per share data): | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 15,226 | $ | 17,742 | $ | 39,366 | $ | 43,741 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average number of common shares (basic) | 40,605 | 40,534 | 40,596 | 40,527 | |||||||||||||
Dilutive effect of stock-based awards | 47 | 40 | 37 | 36 | |||||||||||||
Weighted-average number of common shares (diluted) | 40,652 | 40,574 | 40,633 | 40,563 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.37 | $ | 0.44 | $ | 0.97 | $ | 1.08 | |||||||||
Diluted | $ | 0.37 | $ | 0.44 | $ | 0.97 | $ | 1.08 | |||||||||
As of November 2, 2013 and October 27, 2012, there were an immaterial number of additional shares issuable upon the vesting of restricted stock units that were excluded from the diluted share calculations because they were anti-dilutive. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |
Nov. 02, 2013 | ||
Fair Value Disclosures [Abstract] | ' | |
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments | ||
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 – Quoted prices in active markets for identical assets or liabilities. | |
• | Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. | |
• | Level 3 – Unobservable inputs based on the Company’s own assumptions. | |
The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. | ||
The carrying amounts reflected on the Consolidated Balance Sheets for cash and cash equivalents, receivables, other current assets, and payables as of November 2, 2013, and October 27, 2012, approximated their fair values. | ||
The carrying amount for the amended and restated credit agreement (“credit agreement”) approximated its fair value at October 27, 2012 as the interest rates of these borrowings fluctuate with the market. The credit agreement falls within Level 2 of the fair value hierarchy. |
Inventories
Inventories | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
The components of inventories were as follows (in thousands): | |||||||||
November 2, | February 2, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 17,461 | $ | 19,490 | |||||
Work in process | 838 | 836 | |||||||
Finished goods | 132,213 | 111,236 | |||||||
Total inventories | $ | 150,512 | $ | 131,562 | |||||
Debt
Debt | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt | |||||||||
Long-term debt consisted of the following (in thousands): | |||||||||
November 2, | February 2, | ||||||||
2013 | 2013 | ||||||||
Financial-institution debt | $ | — | $ | 15,000 | |||||
Other borrowings | — | 95 | |||||||
— | 15,095 | ||||||||
Less: Current maturities | — | 58 | |||||||
$ | — | $ | 15,037 | ||||||
During the quarter ended November 2, 2013, the Company had borrowing availability of $125.0 million under the credit agreement. |
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 02, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for income taxes for interim periods is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Significant management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. | |
The effective tax rate for the thirteen weeks ended November 2, 2013, was 36.9%, compared to 35.2% for the thirteen weeks ended October 27, 2012. The effective tax rate increase was primarily related to discrete items recorded during the third quarter in the prior year, partially offset by a lower net operating loss in Japan for the thirteen weeks ended November 2, 2013. | |
The effective tax rate for the thirty-nine weeks ended November 2, 2013, was 37.7%, compared to 37.2% for the thirty-nine weeks ended October 27, 2012. The effective tax rate increase was primarily related to discrete items recorded during the third quarter in the prior year, partially offset by a lower net operating loss in Japan for the thirty-nine weeks ended November 2, 2013. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||
Nov. 02, 2013 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||
Stock-Based Compensation | |||||||||||||||
The Company accounts for stock-based compensation under the fair-value recognition provisions of ASC 718, Stock Compensation. Under these provisions, for its awards of restricted stock and restricted stock units, the Company recognizes share-based compensation expense in an amount equal to the fair market value of the underlying stock on the grant date of the respective award. | |||||||||||||||
The Company reserved 6,076,001 shares of common stock for issuance or transfer under the 2010 Equity and Incentive Plan, which allows for grants of restricted stock units as well as other equity awards. | |||||||||||||||
Awards of Restricted Stock Units | |||||||||||||||
During the thirteen weeks ended November 2, 2013, the Company granted 2,546 time-based restricted stock units with an aggregate fair value of $0.1 million under the 2010 Equity and Incentive Plan compared to a total of 2,353 time-based restricted stock units with an aggregate fair value of $0.1 million granted in the same period of the prior year. | |||||||||||||||
During the thirty-nine weeks ended November 2, 2013, the Company granted a total of 247,360 time-based and performance-based restricted stock units with an aggregate fair value of $5.8 million to certain employees and non-employee directors under the 2010 Equity and Incentive Plan compared to a total of 179,865 time-based and performance-based restricted stock units with an aggregate fair value of $5.3 million granted in the same period of the prior year. The Company determined the fair value of the awards based on the closing price of the Company’s common stock on the grant date. | |||||||||||||||
The time-based restricted stock units vest and settle in shares of the Company’s common stock, on a one-for-one basis, in equal installments on each of the first three anniversaries of the grant date. The Company is recognizing the expense relating to these units, net of estimated forfeitures, on a straight-line basis over three years. Beginning in fiscal 2014, all restricted stock awards issued to non-employee Directors vest after a one-year period from grant date. The Company is recognizing the expense relating to these units, net of estimated forfeitures, on a straight-line basis over one year. | |||||||||||||||
Performance-based restricted stock units vest upon the completion of a three-year period of time (cliff vesting), subject to the employee’s continuing employment throughout the three-year performance period and the Company’s achievement of annual net income targets during the three-year performance period. The Company is recognizing the expense relating to these units, net of estimated forfeitures and based on the probable outcome of achievement of the net income targets, on a straight-line basis over three years. | |||||||||||||||
The following table sets forth a summary of restricted stock unit activity for the period ended November 2, 2013 (units in thousands): | |||||||||||||||
Time-based | Performance-based | ||||||||||||||
Restricted Stock Units | Restricted Stock Units | ||||||||||||||
Number of | Weighted- | Number of | Weighted- | ||||||||||||
Units | Average | Units | Average | ||||||||||||
Grant | Grant | ||||||||||||||
Date Fair | Date Fair | ||||||||||||||
Value | Value | ||||||||||||||
(per unit) | (per unit) | ||||||||||||||
Nonvested units outstanding at February 2, 2013 | 150 | $ | 34.71 | 76 | $ | 29.62 | |||||||||
Granted | 142 | 23.64 | 105 | 23.63 | |||||||||||
Vested | (60 | ) | 35.01 | — | — | ||||||||||
Forfeited | (12 | ) | 28.84 | (13 | ) | 26.26 | |||||||||
Nonvested units outstanding at November 2, 2013 | 220 | $ | 27.81 | 168 | $ | 26.12 | |||||||||
As of November 2, 2013, there was $5.3 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock units. That cost is expected to be recognized over a weighted average period of 1.8 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 02, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The Company is subject to various claims and contingencies arising in the normal course of business, including those relating to product liability, legal, employee benefit, environmental, and other matters. Management believes that it is not reasonably possible that any of these claims will have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Segment Reporting | |||||||||||||||||
The Company has two operating segments, which are also its reportable segments: Direct and Indirect. These operating segments are components of the Company for which separate financial information is available and for which operating results are evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing the performance of the segments. | |||||||||||||||||
The Direct segment includes the Company’s full-price and outlet stores, department store locations in Japan, the Company’s websites, verabradley.com and verabradley.co.jp, and the annual outlet sale. Revenues generated through this segment are driven through the sale of Company-branded products from Vera Bradley to end consumers. The Indirect segment represents revenues generated through the distribution of Company-branded products to approximately 3,400 specialty retailers, substantially all of which are located in the United States, as well as key accounts, which include select department stores, national accounts and third party e-commerce sites. Corporate costs represent the Company’s administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, design, merchandising, and various other corporate-level-activity-related expenses. All intercompany-related activities are eliminated in consolidation and are excluded from the segment reporting. | |||||||||||||||||
Company management evaluates segment operating results based on several indicators. The primary or key performance indicators for each segment are net revenues and operating income. Net revenues and operating income information for the Company’s reportable segments consisted of the following (in thousands): | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Segment net revenues: | |||||||||||||||||
Direct | $ | 68,857 | $ | 64,318 | $ | 217,560 | $ | 189,234 | |||||||||
Indirect | 61,237 | 74,028 | 160,939 | 189,350 | |||||||||||||
Total | $ | 130,094 | $ | 138,346 | $ | 378,499 | $ | 378,584 | |||||||||
Segment operating income: | |||||||||||||||||
Direct | $ | 14,861 | $ | 17,745 | $ | 50,944 | $ | 49,376 | |||||||||
Indirect | 25,956 | 30,301 | 65,501 | 76,403 | |||||||||||||
Total | $ | 40,817 | $ | 48,046 | $ | 116,445 | $ | 125,779 | |||||||||
Reconciliation: | |||||||||||||||||
Segment operating income | $ | 40,817 | $ | 48,046 | $ | 116,445 | $ | 125,779 | |||||||||
Less: | |||||||||||||||||
Unallocated corporate expenses | (16,628 | ) | (20,475 | ) | (52,999 | ) | (55,599 | ) | |||||||||
Operating income | $ | 24,189 | $ | 27,571 | $ | 63,446 | $ | 70,180 | |||||||||
Description_of_the_Company_and1
Description of the Company and Basis of Presentation (Policies) | 9 Months Ended |
Nov. 02, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting | ' |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013, filed with the SEC. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has eliminated intercompany balances and transactions in consolidation. | |
Fiscal Periods | ' |
Fiscal Periods | |
The Company’s fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended November 2, 2013, and October 27, 2012, refer to the thirteen-week periods ended on those dates. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-2”). This guidance adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The additional disclosures include: (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of accumulated other comprehensive income. The changes in accumulated other comprehensive income balance by component will be disaggregated to separately present reclassification adjustments and current-period other comprehensive income. Significant items reclassified out of accumulated other comprehensive income by component are required to be presented either on the face of the statement of income or as separate disclosure in the notes to the financial statements. These additional disclosures may be presented before-tax or net-of tax as long as the income tax benefit or expense attributed to each component of other comprehensive income and reclassification adjustments is presented in the financial statement or in the notes to the financial statements. The guidance is effective for interim and annual periods beginning after December 15, 2012 and should be applied prospectively. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. | |
In October 2012, the FASB issued ASU 2012-4, Technical Corrections and Improvements. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Components of Basic and Diluted Net Income Per Share | ' | ||||||||||||||||
The components of basic and diluted earnings per share were as follows (in thousands, except per share data): | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 15,226 | $ | 17,742 | $ | 39,366 | $ | 43,741 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average number of common shares (basic) | 40,605 | 40,534 | 40,596 | 40,527 | |||||||||||||
Dilutive effect of stock-based awards | 47 | 40 | 37 | 36 | |||||||||||||
Weighted-average number of common shares (diluted) | 40,652 | 40,574 | 40,633 | 40,563 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.37 | $ | 0.44 | $ | 0.97 | $ | 1.08 | |||||||||
Diluted | $ | 0.37 | $ | 0.44 | $ | 0.97 | $ | 1.08 | |||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
The components of inventories were as follows (in thousands): | |||||||||
November 2, | February 2, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 17,461 | $ | 19,490 | |||||
Work in process | 838 | 836 | |||||||
Finished goods | 132,213 | 111,236 | |||||||
Total inventories | $ | 150,512 | $ | 131,562 | |||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-Term Debt | ' | ||||||||
Long-term debt consisted of the following (in thousands): | |||||||||
November 2, | February 2, | ||||||||
2013 | 2013 | ||||||||
Financial-institution debt | $ | — | $ | 15,000 | |||||
Other borrowings | — | 95 | |||||||
— | 15,095 | ||||||||
Less: Current maturities | — | 58 | |||||||
$ | — | $ | 15,037 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||
Nov. 02, 2013 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||
Summary of Restricted-Stock Awards and Restricted-Stock Units | ' | ||||||||||||||
The following table sets forth a summary of restricted stock unit activity for the period ended November 2, 2013 (units in thousands): | |||||||||||||||
Time-based | Performance-based | ||||||||||||||
Restricted Stock Units | Restricted Stock Units | ||||||||||||||
Number of | Weighted- | Number of | Weighted- | ||||||||||||
Units | Average | Units | Average | ||||||||||||
Grant | Grant | ||||||||||||||
Date Fair | Date Fair | ||||||||||||||
Value | Value | ||||||||||||||
(per unit) | (per unit) | ||||||||||||||
Nonvested units outstanding at February 2, 2013 | 150 | $ | 34.71 | 76 | $ | 29.62 | |||||||||
Granted | 142 | 23.64 | 105 | 23.63 | |||||||||||
Vested | (60 | ) | 35.01 | — | — | ||||||||||
Forfeited | (12 | ) | 28.84 | (13 | ) | 26.26 | |||||||||
Nonvested units outstanding at November 2, 2013 | 220 | $ | 27.81 | 168 | $ | 26.12 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Net Revenues and Operating Income Information for Reportable Segments | ' | ||||||||||||||||
Net revenues and operating income information for the Company’s reportable segments consisted of the following (in thousands): | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Segment net revenues: | |||||||||||||||||
Direct | $ | 68,857 | $ | 64,318 | $ | 217,560 | $ | 189,234 | |||||||||
Indirect | 61,237 | 74,028 | 160,939 | 189,350 | |||||||||||||
Total | $ | 130,094 | $ | 138,346 | $ | 378,499 | $ | 378,584 | |||||||||
Segment operating income: | |||||||||||||||||
Direct | $ | 14,861 | $ | 17,745 | $ | 50,944 | $ | 49,376 | |||||||||
Indirect | 25,956 | 30,301 | 65,501 | 76,403 | |||||||||||||
Total | $ | 40,817 | $ | 48,046 | $ | 116,445 | $ | 125,779 | |||||||||
Reconciliation: | |||||||||||||||||
Segment operating income | $ | 40,817 | $ | 48,046 | $ | 116,445 | $ | 125,779 | |||||||||
Less: | |||||||||||||||||
Unallocated corporate expenses | (16,628 | ) | (20,475 | ) | (52,999 | ) | (55,599 | ) | |||||||||
Operating income | $ | 24,189 | $ | 27,571 | $ | 63,446 | $ | 70,180 | |||||||||
Description_of_the_Company_and2
Description of the Company and Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | |
Segment | |||
Store | |||
Vendor | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Number of reportable segments | ' | ' | 2 |
Number of full-price stores | ' | ' | 84 |
Number of outlet stores | ' | ' | 15 |
Number of specialty retailers (in vendors) | ' | ' | 3,400 |
Fiscal period duration | '91 days | '91 days | ' |
Earnings_Per_Share_Components_
Earnings Per Share - Components of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $15,226 | $17,742 | $39,366 | $43,741 |
Weighted-average number of common shares (basic) | 40,605 | 40,534 | 40,596 | 40,527 |
Dilutive effect of stock-based awards | 47 | 40 | 37 | 36 |
Weighted-average number of common shares (diluted) | 40,652 | 40,574 | 40,633 | 40,563 |
Basic (in dollars per share) | $0.37 | $0.44 | $0.97 | $1.08 |
Diluted (in dollars per share) | $0.37 | $0.44 | $0.97 | $1.08 |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $17,461 | $19,490 |
Work in process | 838 | 836 |
Finished goods | 132,213 | 111,236 |
Total inventories | $150,512 | $131,562 |
Debt_Schedule_of_LongTerm_Debt
Debt - Schedule of Long-Term Debt (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Financial-institution debt | ' | $15,000 |
Other borrowings | ' | 95 |
Total long-term debt, gross | ' | 15,095 |
Less: Current maturities | ' | 58 |
Total long term debt, net | ' | $15,037 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | Nov. 02, 2013 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
Available borrowings under the credit agreement | $125 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 36.90% | 35.20% | 37.70% | 37.20% |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock unit vesting and settlement ratio to common shares | ' | ' | 1 | ' |
Restricted-Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average period to recognize the total unrecognized compensation cost | ' | ' | '1 year 9 months 18 days | ' |
Total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock units | $5.30 | ' | $5.30 | ' |
Time-based Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted-stock awards/units granted in period | ' | ' | 142,000 | ' |
Weighted average period to recognize the total unrecognized compensation cost | ' | ' | '3 years | ' |
Performance-based Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted-stock awards/units granted in period | ' | ' | 105,000 | ' |
Restricted stock units vesting period, years | ' | ' | '3 years | ' |
Restricted stock units required employee service period, years | ' | ' | '3 years | ' |
2010 Equity and Incentive Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of common stock shares | 6,076,001 | ' | 6,076,001 | ' |
2010 Equity and Incentive Plan [Member] | Restricted-Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted-stock awards/units granted in period | ' | ' | 247,360 | 179,865 |
2010 Equity and Incentive Plan [Member] | Time-based Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted-stock awards/units granted in period | 2,546 | 2,353 | ' | ' |
Restricted-stock awards/units with an aggregate grant-date fair value | $0.10 | $0.10 | $5.80 | $5.30 |
Non-Employee Director [Member] | Restricted-Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average period to recognize the total unrecognized compensation cost | ' | ' | '1 year | ' |
Restricted stock units vesting period, years | ' | ' | '1 year | ' |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Restricted-Stock Awards and Restricted-Stock Units (Detail) (USD $) | 9 Months Ended |
Nov. 02, 2013 | |
Time-based Restricted Stock Units [Member] | ' |
Number of Units | ' |
Nonvested units outstanding, beginning balance | 150,000 |
Granted, Number of Units | 142,000 |
Vested, Number of Units | -60,000 |
Forfeited, Number of Units | -12,000 |
Nonvested units outstanding, ending balance | 220,000 |
Weighted- Average Grant Date Fair Value (per unit) | ' |
Weighted-Average Grant Date Fair Value (per unit), beginning balance | $34.71 |
Granted, Weighted-Average Grant Date Fair Value (per unit) | $23.64 |
Vested, Weighted-Average Grant Date Fair Value (per unit) | $35.01 |
Forfeited, Weighted-Average Grant Date Fair Value (per unit) | $28.84 |
Weighted-Average Grant Date Fair Value (per unit), ending balance | $27.81 |
Performance-based Restricted Stock Units [Member] | ' |
Number of Units | ' |
Nonvested units outstanding, beginning balance | 76,000 |
Granted, Number of Units | 105,000 |
Vested, Number of Units | 0 |
Forfeited, Number of Units | -13,000 |
Nonvested units outstanding, ending balance | 168,000 |
Weighted- Average Grant Date Fair Value (per unit) | ' |
Weighted-Average Grant Date Fair Value (per unit), beginning balance | $29.62 |
Granted, Weighted-Average Grant Date Fair Value (per unit) | $23.63 |
Vested, Weighted-Average Grant Date Fair Value (per unit) | $0 |
Forfeited, Weighted-Average Grant Date Fair Value (per unit) | $26.26 |
Weighted-Average Grant Date Fair Value (per unit), ending balance | $26.12 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Nov. 02, 2013 | |
Vendor | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 2 |
Number of specialty retailers (in vendors) | 3,400 |
Segment_Reporting_Schedule_of_
Segment Reporting - Schedule of Net Revenues and Operating Income Information for Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net revenues | $130,094 | $138,346 | $378,499 | $378,584 |
Segment operating income | 40,817 | 48,046 | 116,445 | 125,779 |
Unallocated corporate expenses | -16,628 | -20,475 | -52,999 | -55,599 |
Operating income | 24,189 | 27,571 | 63,446 | 70,180 |
Operating Segments [Member] | Direct [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net revenues | 68,857 | 64,318 | 217,560 | 189,234 |
Segment operating income | 14,861 | 17,745 | 50,944 | 49,376 |
Operating Segments [Member] | Indirect [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net revenues | 61,237 | 74,028 | 160,939 | 189,350 |
Segment operating income | $25,956 | $30,301 | $65,501 | $76,403 |