Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 24, 2020 | Aug. 03, 2019 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Vera Bradley, Inc. | ||
Entity Central Index Key | 0001495320 | ||
Current Fiscal Year End Date | --02-01 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Smaller Reporting Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 33,121,414 | ||
Entity Public Float | $ 257,136,524 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 49,917,000 | $ 113,493,000 |
Short-term investments | 8,977,000 | 19,381,000 |
Accounts receivable, net | 24,290,000 | 15,604,000 |
Inventories | 123,606,000 | 91,581,000 |
Income taxes receivable | 1,043,000 | 809,000 |
Prepaid expenses and other current assets | 10,956,000 | 11,600,000 |
Total current assets | 218,789,000 | 252,468,000 |
Operating right-of-use assets | 114,790,000 | |
Property, plant, and equipment, net | 73,027,000 | 77,951,000 |
Intangible assets, net | 56,305,000 | 0 |
Goodwill | 44,254,000 | 0 |
Long-term investments | 14,912,000 | 23,735,000 |
Deferred income taxes | 7,656,000 | 6,724,000 |
Other assets | 5,328,000 | 1,270,000 |
Total assets | 535,061,000 | 362,148,000 |
Current liabilities: | ||
Accounts payable | 20,235,000 | 14,595,000 |
Accrued employment costs | 11,412,000 | 13,316,000 |
Short-term operating lease liabilities | 21,347,000 | |
Earn-out liability | 18,448,000 | 0 |
Other accrued liabilities | 13,850,000 | 13,482,000 |
Income taxes payable | 2,113,000 | 2,163,000 |
Total current liabilities | 87,405,000 | 43,556,000 |
Long-term operating lease liabilities | 113,775,000 | |
Other long-term liabilities | 62,000 | 23,889,000 |
Total liabilities | 201,242,000 | 67,445,000 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 30,049,000 | 0 |
Shareholders’ equity: | ||
Preferred stock; 5,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, without par value; 200,000 shares authorized, 41,515 and 41,283 shares issued and 33,503 and 34,347 outstanding, respectively | 0 | 0 |
Additional paid-in capital | 100,357,000 | 95,572,000 |
Retained earnings | 307,414,000 | 291,994,000 |
Accumulated other comprehensive income (loss) | 158,000 | (24,000) |
Treasury stock | (104,159,000) | (92,839,000) |
Total shareholders’ equity of Vera Bradley, Inc. | 303,770,000 | 294,703,000 |
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity | $ 535,061,000 | $ 362,148,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
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 | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 41,515,000 | 41,283,000 |
Common stock, shares outstanding | 33,503,000 | 34,347,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net revenues | $ 495,212 | $ 416,097 | $ 454,648 |
Cost of sales | 223,411 | 177,510 | 200,639 |
Gross profit | 271,801 | 238,587 | 254,009 |
Selling, general, and administrative expenses | 253,425 | 211,984 | 239,810 |
Other income | 1,098 | 498 | 782 |
Operating income | 19,474 | 27,101 | 14,981 |
Interest income, net | (1,085) | (1,125) | (413) |
Income before income taxes | 20,559 | 28,226 | 15,394 |
Income tax expense | 5,315 | 7,469 | 8,378 |
Net income | 15,244 | 20,757 | 7,016 |
Less: Net loss attributable to redeemable noncontrolling interest | (803) | 0 | 0 |
Net income attributable to Vera Bradley, Inc. | $ 16,047 | $ 20,757 | $ 7,016 |
Basic weighted-average shares outstanding | 33,983 | 35,222 | 35,925 |
Diluted weighted-average shares outstanding | 34,288 | 35,467 | 36,026 |
Net income (loss) per share - basic | |||
Net income per share, basic (in dollars per share) | $ 0.47 | $ 0.59 | $ 0.20 |
Net income (loss) per share - diluted | |||
Net income per share, diluted (in dollars per share) | $ 0.47 | $ 0.59 | $ 0.19 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ 15,244 | $ 20,757 | $ 7,016 |
Unrealized gain (loss) on available for sale debt investments | 131 | 96 | (51) |
Cumulative translation adjustment | 51 | (6) | (13) |
Comprehensive income, net of tax | 15,426 | 20,847 | 6,952 |
Less: Comprehensive loss attributable to redeemable noncontrolling interest | (803) | 0 | 0 |
Comprehensive income attributable to Vera Bradley, Inc. | $ 16,229 | $ 20,847 | $ 6,952 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income [Member] |
Common stock (shares) outstanding, balance at the beginning of the period at Jan. 28, 2017 | 36,218,071 | |||||
Treasury stock (shares), balance at the beginning of the period at Jan. 28, 2017 | 4,708,454 | |||||
Balance at the beginning of the period at Jan. 28, 2017 | $ 283,786 | $ (68,670) | $ 88,739 | $ 263,767 | $ (50) | |
Net income attributable to Vera Bradley, Inc. | 7,016 | 7,016 | ||||
Translation adjustments | (13) | (13) | ||||
Restricted shares vested, net of repurchase for taxes, shares | 174,985 | |||||
Restricted shares vested, net of repurchase for taxes | (618) | (618) | ||||
Stock-based compensation | $ 3,071 | 3,071 | ||||
Treasury stock purchased, shares | 934,031 | (934,031) | 934,031 | |||
Treasury stock purchased | $ (7,908) | $ (7,908) | ||||
Unrealized gain (loss) on available for sale debt investments | (51) | (51) | ||||
Common stock (shares) outstanding, balance at the end of the period at Feb. 03, 2018 | 35,459,025 | |||||
Treasury stock (shares), balance at the end of the period at Feb. 03, 2018 | 5,642,485 | |||||
Balance at the end of the period at Feb. 03, 2018 | 285,283 | $ (76,578) | 91,192 | 270,783 | (114) | |
Net income attributable to Vera Bradley, Inc. | 20,757 | 20,757 | ||||
Translation adjustments | (6) | (6) | ||||
Restricted shares vested, net of repurchase for taxes, shares | 181,533 | |||||
Restricted shares vested, net of repurchase for taxes | (547) | (547) | ||||
Stock-based compensation | $ 4,927 | 4,927 | ||||
Treasury stock purchased, shares | 1,293,138 | (1,293,138) | 1,293,138 | |||
Treasury stock purchased | $ (16,261) | $ (16,261) | ||||
Unrealized gain (loss) on available for sale debt investments | $ 96 | 96 | ||||
Common stock (shares) outstanding, balance at the end of the period at Feb. 02, 2019 | 34,347,000 | 34,347,420 | ||||
Treasury stock (shares), balance at the end of the period at Feb. 02, 2019 | 6,935,623 | |||||
Balance at the end of the period at Feb. 02, 2019 | $ 294,703 | $ (92,839) | 95,572 | 291,994 | (24) | |
Net income attributable to Vera Bradley, Inc. | 16,047 | 16,047 | ||||
Translation adjustments | 51 | 51 | ||||
Restricted shares vested, net of repurchase for taxes, shares | 231,578 | |||||
Restricted shares vested, net of repurchase for taxes | (1,155) | (1,155) | ||||
Stock-based compensation | 5,940 | 5,940 | ||||
Treasury stock purchased, shares | (1,075,749) | 1,075,749 | ||||
Treasury stock purchased | (11,320) | $ (11,320) | ||||
Unrealized gain (loss) on available for sale debt investments | 131 | 131 | ||||
Redeemable noncontrolling interest redemption value adjustment | $ (431) | (431) | ||||
Common stock (shares) outstanding, balance at the end of the period at Feb. 01, 2020 | 33,503,000 | 33,503,249 | ||||
Treasury stock (shares), balance at the end of the period at Feb. 01, 2020 | 8,011,372 | 8,011,372 | ||||
Balance at the end of the period at Feb. 01, 2020 | $ 303,770 | $ (104,159) | $ 100,357 | $ 307,414 | $ 158 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Cash flows from operating activities | |||
Net income | $ 15,244 | $ 20,757 | $ 7,016 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant, and equipment | 18,447 | 16,540 | 19,570 |
Impairment charges | 0 | 0 | 6,298 |
Amortization of operating right-of-use assets | 21,969 | ||
Amortization of intangible assets | 5,359 | 0 | 0 |
Provision for doubtful accounts | 160 | 184 | 425 |
Stock-based compensation | 5,940 | 4,927 | 3,071 |
Deferred income taxes | (864) | (1,497) | 8,154 |
Cash gain on investments | (188) | 32 | 162 |
Adjustment of earn-out liability | (1,650) | 0 | 0 |
Amortization of step-up in inventory basis | 8,274 | 0 | 0 |
Other non-cash charges, net | 202 | 512 | 103 |
Changes in assets and liabilities: | |||
Accounts receivable | (1,013) | 438 | 7,322 |
Inventories | (12,645) | (3,994) | 14,445 |
Prepaid expenses and other assets | (4,477) | (100) | 566 |
Accounts payable | (615) | 738 | (18,214) |
Income taxes | (284) | 4,933 | (870) |
Operating lease liabilities, net | (25,302) | ||
Accrued and other liabilities | (7,933) | 94 | (5,406) |
Net cash provided by operating activities | 20,624 | 43,564 | 42,642 |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | (13,317) | (8,148) | (11,822) |
Purchases of investments | (18,950) | (59,461) | (85,530) |
Proceeds from maturities and sales of investments | 38,333 | 85,559 | 45,716 |
Cash paid for business acquisition, net of cash acquired | (76,032) | 0 | 0 |
Proceeds from disposal of property, plant, and equipment | 0 | 5 | 32 |
Net cash (used in) provided by investing activities | (69,966) | 17,955 | (51,604) |
Cash flows from financing activities | |||
Tax withholdings for equity compensation | (1,155) | (547) | (618) |
Repurchase of common stock | (11,341) | (16,064) | (7,908) |
Distributions to redeemable noncontrolling interest | (1,789) | 0 | 0 |
Payments of debt-issuance costs | 0 | (160) | (123) |
Net cash used in financing activities | (14,285) | (16,771) | (8,649) |
Effect of exchange rate changes on cash and cash equivalents | 51 | (6) | (13) |
Net (decrease) increase in cash and cash equivalents | (63,576) | 44,742 | (17,624) |
Cash and cash equivalents, beginning of period | 113,493 | 68,751 | 86,375 |
Cash and cash equivalents, end of period | 49,917 | 113,493 | 68,751 |
Supplemental disclosure of cash-flow information | |||
Cash paid for income taxes, net | 6,490 | 4,035 | 1,942 |
Cash paid for interest | 119 | 169 | $ 187 |
Supplemental disclosure of non-cash activity | |||
Contingent consideration related to business acquisition | 18,448 | $ 0 | |
Pura Vida | |||
Cash flows from investing activities | |||
Cash paid for business acquisition, net of cash acquired | (76,000) | ||
Supplemental disclosure of non-cash activity | |||
Contingent consideration related to business acquisition | $ 18,400 |
Description of the Company
Description of the Company | 12 Months Ended |
Feb. 01, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company | Description of the Company The term “Company” refers to Vera Bradley, Inc. and its wholly and majority owned subsidiaries, except where the context requires otherwise or where otherwise indicated. Vera Bradley is a leading designer of women’s handbags, luggage and travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand’s innovative designs, iconic patterns, and brilliant colors continue to inspire and connect women. Vera Bradley offers a unique, multi-channel sales model, as well as a focus on service and a high level of customer engagement. In July 2019, Vera Bradley, Inc. acquired a 75% interest in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets (“Pura Vida”). Pura Vida, based in La Jolla, California, is a digitally native lifestyle brand that we believe deeply resonates with its loyal consumer following. The Pura Vida brand has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories. Beginning in the second quarter of fiscal 2020, the Company has included an additional segment for Pura Vida due to its acquisition. As a result, the Company now has three reportable segments: Vera Bradley Direct (“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura Vida. • The VB Direct business consists of sales of Vera Bradley products through Vera Bradley full-line and factory outlet stores in the United States; verabradley.com; the Vera Bradley online outlet site; and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. As of February 1, 2020 , the Company operated 88 full-line stores and 63 factory outlet stores. • The VB Indirect business consists of sales of Vera Bradley products to approximately 2,200 specialty retail locations, substantially all of which are located in the United States, as well as department stores, national accounts, third-party e-commerce sites, third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. • The Pura Vida segment represents revenues generated through the Pura Vida websites, www.puravidabracelets.com and www.puravidabracelets.eu, and through the distribution of Pura Vida-branded products to wholesale retailers, substantially all of which are located in the United States. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and its majority owned subsidiary, Pura Vida beginning on July 17, 2019. The Company has eliminated intercompany balances and transactions in consolidation. Fiscal Periods The Company utilizes a 52 - 53 week fiscal year ended on the Saturday closest to January 31. As such, fiscal years 2020 and 2019, ending on February 1, 2020 and February 2, 2019 , respectively, each reflected a 52-week period. Fiscal year 2018 ending on February 3, 2018 reflected a 53 -week period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Significant Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of the Company’s assets, liabilities, revenues, and expenses, as well as the disclosures relating to contingent assets and liabilities at the date of the consolidated financial statements. Significant areas requiring the use of management estimates include the valuation of inventories, valuation of long-lived assets, including operating right-of-use assets, valuation of goodwill and indefinite-lived intangible assets, accounts receivable valuation allowances, sales return allowances, and the useful lives of assets for depreciation or amortization. Actual results could differ from these estimates. The Company revises its estimates and assumptions as new information becomes available. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, deposits with financial institutions, and investments with an original maturity of three months or less. Investments Short-term investments consist of investments with a maturity within one year of the balance sheet date. As of February 1, 2020 , these investments consisted of U.S. and non-U.S. corporate debt securities, commercial paper, municipal securities, and U.S. asset-backed securities. As of February 2, 2019 , these investments consisted of U.S. and non-U.S. corporate debt securities, municipal securities, U.S. Treasury securities, and commercial paper. Long-term investments consist of investments with a maturity of greater than one year from the balance sheet date. As of February 1, 2020 , these investments consisted of U.S. and non-U.S. corporate debt securities, U.S. and non-U.S. asset-backed securities, and other foreign securities. As of February 2, 2019 , these investments consisted of U.S. and non-U.S. corporate debt securities, U.S. and non-U.S. asset-backed securities, and municipal securities. The Company’s objective with respect to these investments is to earn a higher rate of return, relative to deposit accounts, on funds that are otherwise not anticipated to be required to meet liquidity needs in the near-term while maintaining a low level of investment risk. These debt securities are classified as available-for-sale; therefore, unrealized gains and losses are recorded within other comprehensive income. Interest income earned is recorded within interest income, net, in the Company's Consolidated Statements of Operations. Refer to Note 15 herein for additional information regarding the Company's investments. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (“FIFO”) method. Appropriate consideration is given to obsolescence, excess quantities, and other factors, including the popularity of a pattern or product, in evaluating net realizable value. The components of inventories were as follows: February 1, February 2, Raw materials (1) $ 1,056 $ — Finished goods 122,550 91,581 Total inventories $ 123,606 $ 91,581 (1) Relates solely to Pura Vida operations. Property, Plant, and Equipment Property, plant, and equipment are carried at cost and depreciated or amortized over the following estimated useful lives using the straight-line method: Buildings and building improvements .............................................. 39.5 years Land improvements ........................................................................... 5 – 15 years Furniture and fixtures, and leasehold improvements ........................ 3 – 10 years Equipment ......................................................................................... 7 years Vehicles ............................................................................................. 5 years Computer equipment and software ................................................... 3 – 5 years The Company recognizes depreciation and amortization expense within cost of sales for expenditures related to distribution center, sourcing, and other related functions and selling, general, and administrative expenses for all other expenditures. Leasehold improvements are amortized over the shorter of the life of the asset or the lease term. Lease terms typically range from three to ten years. When a decision is made to abandon property, plant, and equipment prior to the end of the previously estimated useful life, depreciation or amortization estimates are revised to reflect the use of the asset over the shortened estimated useful life. At the time of disposal, the cost of assets sold or retired and the related accumulated depreciation or amortization are removed from the accounts and any resulting loss is included in the Consolidated Statements of Operations. Property, plant, and equipment and operating right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset groups may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows, which is at the retail store level for store-related assets. If the estimated undiscounted future cash flows related to the property, plant, and equipment and operating right-of-use assets are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, as further defined below in “Fair Value of Financial Instruments.” Routine maintenance and repair costs are expensed as incurred. The Company capitalizes certain costs incurred in connection with acquiring, modifying, and installing internal-use software. Capitalized costs are included in property, plant, and equipment and are amortized over three to five years . Software costs that do not meet capitalization criteria are expensed as incurred. Revenue Recognition and Accounts Receivable Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers , was adopted on a modified retrospective basis on February 4, 2018. Accordingly, prior year financial information contained herein was not recast and is reported under the prior accounting standard. Refer to Note 3 herein for additional information. Vera Bradley and Pura Vida product sales to customers, including amounts billed to customers for shipping fees, as well as royalties from licensing arrangements related to the Vera Bradley brand, are included in net revenues. Costs related to shipping of product are classified in cost of sales in the Consolidated Statements of Operations. The Company has elected to treat shipping and handling activities that occur after the customer has obtained control of a good as an activity to fulfill the promise to transfer the product rather than as an additional promised service. Net revenues exclude sales taxes collected from customers and remitted to governmental authorities from the transaction price. Revenue from the sale of the Company’s products is recognized when control of the promised goods or services is transferred to customers, in the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue is recognized using the five-step model identified in ASC Topic 606. These steps are: (i) identify the contract with the customer; (ii) identify the performance obligations; (iii) determine the transaction price; (iv) allocate the transaction price to each performance obligation; and (v) recognize revenue as the performance obligations are satisfied. The Company collects payment at the point of sale for Vera Bradley full-line and factory outlet store transactions, upon shipment for Vera Bradley e-commerce transactions, and upon purchase for Pura Vida e-commerce transactions. The Company generally collects payment in arrears in accordance with established payment terms for each customer within the VB Indirect segment and for Pura Vida wholesale retailers. Historical experience provides the Company the ability to reasonably estimate the amount of product sales that customers will return. Product returns are often resalable through multiple channels. Additionally, the Company reserves for customer allowances for certain VB Indirect retailers based upon various contract terms and other potential product credits granted to VB Indirect retailers. The returns and credits reserve and the related activity for each fiscal year presented were as follows (in thousands): Balance at Beginning of Year Provision Charged to Net Revenues Allowances Taken / Written Off Balance at End of Year Fiscal year ended February 1, 2020 $ 1,911 $ 15,467 $ (16,016 ) $ 1,362 Fiscal year ended February 2, 2019 2,695 17,946 (18,730 ) 1,911 Fiscal year ended February 3, 2018 5,360 23,504 (26,169 ) 2,695 The Company establishes an allowance for doubtful accounts based on historical experience and customer-specific identification and believes that collections of receivables, net of the allowance for doubtful accounts, are reasonably assured. The allowance for doubtful accounts was approximately $0.5 million and $0.3 million as of February 1, 2020 and February 2, 2019 , respectively. Cost of Sales Cost of sales includes material and labor costs, freight, inventory shrinkage, operating lease costs, duty, and other operating expenses, including depreciation of the Vera Bradley distribution center and equipment. Costs and related expenses to purchase and distribute the products are recorded as cost of sales when the related revenues are recognized. Operating Leases ASC Topic 842, Leases , was adopted on a modified retrospective basis on February 3, 2019. Accordingly, prior year financial information contained herein was not recast and is reported under the prior accounting standard. This comparability primarily impacts the Company's Consolidated Balance Sheets. Refer to Note 4 herein for additional information regarding the Company's leases. The Company recognizes lease liabilities at the lease commencement date based upon the present value of the remaining lease payments. Operating right-of-use assets are based on the lease liability adjusted for prepaid rent, deferred rent, and tenant allowances received from certain of the Company’s landlords, primarily for its retail store locations. Operating lease liabilities are amortized based upon the effective interest method. Operating right-of-use assets are amortized based upon the straight-line lease expense less interest on the lease liability. Operating lease expense is recognized on a straight-line basis over the lease term. Variable rent expense is recognized in the period incurred. Operating right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows, which is at the retail store level for store-related assets. If the estimated undiscounted future cash flows related to the operating right-of-use assets are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, as further defined below in “Fair Value of Financial Instruments.” Store Pre-Opening, Occupancy, and Operating Costs The Company charges costs associated with the opening of new stores to selling, general, and administrative expenses as incurred. Selling, general, and administrative expenses also include store operating costs, store employee compensation, and store occupancy and supply costs. Business Combination The Company acquired a majority interest in Pura Vida on July 16, 2019. In connection with a business combination, the Company records the identifiable assets acquired, liabilities assumed, contingent consideration liabilities, if any, and any noncontrolling interest in the acquiree at their acquisition-date fair values. Goodwill is measured indirectly as the excess of the sum of (1) the consideration transferred (including contingent consideration, if any) and (2) the fair value of any noncontrolling interest in the acquiree over the net assets acquired and liabilities assumed. Refer to Note 16 herein for additional information. These fair value assessments require management judgment and include the use of significant estimates and assumptions including future cash flows, discount and other market rates, and asset lives, among other items. Goodwill and Other Intangible Assets Upon an acquisition, the Company records the fair value of the identifiable intangible assets. As of February 1, 2020 , these items consisted of the Pura Vida brand, customer relationships, and non-competition agreements. Assets that are determined to have an indefinite life, including goodwill and the Pura Vida Brand, are not amortized but are assessed for impairment at least annually or whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. Definite-lived intangible assets, including customer relationships and non-competition agreements, are amortized over their estimated useful lives and are also subject to impairment testing, similar to the Company’s long-lived assets. Redeemable Noncontrolling Interest On July 16, 2019, as contemplated by the Interest Purchase Agreement, the Company and certain of its subsidiaries and the owners of the remaining twenty-five percent ( 25% ) ownership interest in Pura Vida (the “Sellers”) which was not acquired by the Company (the “Remaining Pura Vida Interest”) entered into a Put/Call Agreement (the “Put/Call Agreement”). Pursuant to the Put/Call Agreement, and subject to the terms and conditions thereof, the Sellers have the right to sell all of the Remaining Pura Vida Interest to the Company, and the Company has the right to purchase all of the Remaining Pura Vida Interests from Sellers, in each case generally at any time following the fifth anniversary of the closing date of the transaction until the tenth anniversary thereof. The purchase price for any Remaining Pura Vida Interest put to, or called by, the Company will be determined based on the arithmetic average of a multiple of adjusted EBITDA of Pura Vida and a multiple of adjusted EBITDA of the Company, as defined in the Put/Call Agreement, over the twelve-month period ending on the last day of the month immediately preceding the month in which an exercise notice is delivered by a relevant party. In the event of a change in control of the Company, the parties may exercise a portion of their put and call rights prior to the fifth anniversary of the closing date (as defined in the Put/Call Agreement). As a result of this redemption feature, the Company recorded the noncontrolling interest as redeemable and classified it in temporary equity within its Consolidated Balance Sheets initially at its acquisition-date fair value. The noncontrolling interest is adjusted each reporting period for income (or loss) attributable to the noncontrolling interest. A measurement period adjustment, if any, is then made to adjust the noncontrolling interest to the higher of the redemption value or carrying value each reporting period. These adjustments are recognized through retained earnings and are not reflected in net income or net income attributable to Vera Bradley, Inc. When calculating earnings per share attributable to Vera Bradley, Inc., the Company adjusts net income attributable to Vera Bradley, Inc. for the measurement period adjustment to the extent the redemption value exceeds the fair value of the noncontrolling interest on a cumulative basis. The fair value of the noncontrolling interest is estimated using a combination of the income approach, a discounted cash flow analysis, and the market approach, utilizing the guideline company method. The reporting unit’s discounted cash flow analysis requires significant management judgment with respect to revenue, total direct costs, selling, general, and administrative expenses, capital expenditures, and the selection and use of an appropriate discount rate. The projected revenue and expense assumptions and capital expenditures are based on our annual and long-term business plans. Discount rates reflect market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. Refer to Note 17 herein for additional information regarding the redeemable noncontrolling interest. Stock-Based Compensation The Company accounts for stock-based compensation using 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 stock-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 recognizes this expense, net of estimated forfeitures, on a straight-line basis over the requisite service period. Other Income and Advertising Costs The Company expenses advertising costs at the time the promotion first appears in media, in stores, or on the website, and includes those costs in selling, general, and administrative expenses in the Consolidated Statements of Operations. The Company classifies the related recovery of a portion of such costs from VB Indirect retailers as other income in the Consolidated Statements of Operations. Total advertising expense was as follows (in thousands): Fiscal year ended February 1, 2020 (1) $ 46,460 Fiscal year ended February 2, 2019 27,488 Fiscal year ended February 3, 2018 26,953 (1) Increase primarily as a result of the inclusion of Pura Vida beginning July 17, 2019. Total recovery from VB Indirect retailers was as follows (in thousands): Fiscal year ended February 1, 2020 $ 118 Fiscal year ended February 2, 2019 80 Fiscal year ended February 3, 2018 367 Debt-Issuance Costs Unamortized debt-issuance costs totaled $0.3 million as of February 1, 2020 , and $0.4 million as of February 2, 2019 , and are included in other assets on the Consolidated Balance Sheets. The Company entered into an asset-based credit agreement on September 7, 2018 and recorded an immaterial amount of expense and debt-issuance costs related to the agreement. Refer to Note 6 herein for additional information. Amortization expense of $0.1 million , $0.3 million , and $0.2 million is included in interest income, net in the Consolidated Statements of Operations for the fiscal years ended February 1, 2020 , February 2, 2019 , and February 3, 2018 , respectively. Fiscal 2019 included a $0.2 million write-off of certain fees from the Company’s prior credit agreement. 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, accounts receivable, other current assets, and accounts payable as of February 1, 2020 and February 2, 2019 , approximated their fair values. The following table details the fair value measurements of the Company’s investments as of February 1, 2020 and February 2, 2019 (in thousands): Level 1 Level 2 Level 3 February 1, 2020 February 2, 2019 February 1, 2020 February 2, 2019 February 1, 2020 February 2, 2019 Cash equivalents (1) $ 27 $ 2,169 $ 2,198 $ 6,493 $ — $ — Short-term investments: U.S. corporate debt securities — — 3,435 5,769 — — Commercial paper — — 2,489 498 — — Municipal securities — — 1,594 4,190 — — Non-U.S. corporate debt securities — — 1,136 5,808 — — U.S. asset-backed securities — — 323 — — — U.S. treasury securities — 3,116 — — — — Long-term investments: U.S. corporate debt securities — — 5,613 9,499 — — U.S. asset-backed securities — — 5,498 7,169 — — Non-U.S. corporate debt securities — — 2,409 4,675 — — Other foreign securities — — 810 — — — Non-U.S. asset-backed securities — — 582 1,127 — — Municipal securities — — — 1,265 — — (1) Cash equivalents include commercial paper and a money market fund that have a maturity of three months or less at the date of purchase. Due to their short maturity, the Company believes the carrying value approximates fair value. The Company assesses potential impairments to its long-lived assets, which includes property, plant, and equipment and lease right-of-use assets, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Store-level assets and right-of-use assets are grouped at the individual store-level for the purpose of the impairment assessment. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. The fair value of the store assets is determined using the discounted future cash flow method of anticipated cash flows through the store’s lease-end date using fair value measurement inputs classified as Level 3. The fair value of right-of-use assets is estimated using market comparative information for similar properties. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company recorded $6.3 million in impairment charges during the fiscal year ended February 3, 2018 . There were no impairment charges for the fiscal years ended February 1, 2020 and February 2, 2019 . Assets recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant, and equipment, including leasehold improvements, and operating lease assets, as well as assets related to the Pura Vida acquisition including goodwill and intangible assets. These assets are measured at fair value if determined to be impaired. Refer to Note 16 herein for additional information on the methods used in the preliminary valuation of acquired intangible assets. Income Taxes The Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between the book and tax bases of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted rates in effect for the years in which the differences are expected to reverse, and recognizes the effect of a change in enacted rates in the period of enactment. As such, the Company recognized additional income tax expense of $2.1 million during fiscal 2018 upon the enactment of the Tax Cuts and Jobs Act. Refer to Note 7 herein for additional information. The Company establishes liabilities for uncertain positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. The Company includes in income tax expense any interest and penalties related to uncertain tax positions. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , which increases transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and disclosing key information about leasing arrangements. This guidance is effective for interim and annual periods beginning on or after December 15, 2018. In July 2018, the FASB issued ASU 2018-11 for targeted improvements, including the option of allowing entities to initially apply the new leases standard at the adoption date (February 3, 2019 for the Company) and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted the standard using this adoption method on February 3, 2019 (the beginning of fiscal 2020) and recorded a $0.2 million beginning retained earnings adjustment. In addition, the Company evaluated the usage of applicable transition relief practical expedients at the adoption date as follows: Practical Expedient Package The Company elected the practical expedient package and did not re-assess whether a contract was or contained a lease; did not re-assess lease classification as an operating or financing lease for expired or existing leases; and did not re-assess whether a lease contained initial direct costs for expired or existing leases. Hindsight The Company did not elect the hindsight practical expedient, which allows for hindsight when assessing the lease term and impairment of right-of-use assets. The Company has operating leases at all of its retail stores; therefore, the adoption of this standard resulted in a material increase of assets and liabilities on the Company’s Consolidated Balance Sheets. The opening balance of its operating lease liabilities was approximately $149 million and its operating right-of-use assets were approximately $126 million at transition on February 3, 2019. The Consolidated Statements of Cash Flows also had material presentation changes within operating activities upon adoption. The adoption of this standard had no impact on the Company's Consolidated Statements of Operations. Refer to Note 4 herein for additional information regarding ASC Topic 842, including details of practical expedients related to policy elections. In August 2018, the FASB issued ASU 2018-15, Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing or expensing implementation costs in hosting arrangements (regardless of whether they convey a license to the hosted software) with capitalizing or expensing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual periods beginning on or after December 15, 2019 (fiscal 2021). Early adoption is permitted, and the amendments can be adopted either retrospectively or prospectively. The Company adopted this standard at the beginning of its fiscal 2020 (February 3, 2019) on a prospective basis. The adoption of this standard had an immaterial impact on the Company's Consolidated Financial Statements. In January 2017 the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years (fiscal 2021). Early adoption is permitted. The Company early adopted this standard during the third quarter of fiscal 2020, with no impact on its consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements . The amendments in this update remove, modify, and add certain disclosure requirements to ASC 820, Fair Value Measurement . This guidance is effective for interim and annual periods beginning on or after December 15, 2019 (fiscal 2021). Early adoption is permitted, and certain amendments are to be adopted prospectively for only the most recent annual or interim period presented in the initial year of adoption or retrospectively. The Company is currently evaluating the impact of the guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update remove certain exceptions to the general principals in Topic 740, as well as simplify GAAP for certain areas and improve consistency within the topic. This guidance is effective for interim and annual periods beginning on or after December 15, 2020 (fiscal 2022). Early adoption is permitted, with all amendments required to be adopted in the same period. The Company is currently evaluating the impact of the guidance on its consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company adopted ASC Topic 606 beginning in the first quarter of fiscal 2019 using the modified retrospective adoption method. Accordingly, disclosures herein required by the standard were excluded for the prior-year period. The following tables illustrate the financial statement line items that were impacted as a result of the adoption of ASC Topic 606 as of and for the fifty-two weeks ended February 2, 2019. These adjustments are a result of adjusting for shipments not yet received by customers, gift card breakage revenue, and the re-classification of certain liabilities for estimated product returns, which are further described in Note 2 herein (in thousands). February 2, 2019 As Reported Adjustments Balances Under Prior U.S. GAAP Consolidated Balance Sheet Accounts receivable, net $ 15,604 $ (2,497 ) $ 13,107 Inventories 91,581 906 92,487 Income taxes receivable 809 265 1,074 Total current assets 252,468 (1,326 ) 251,142 Deferred income taxes 6,724 106 6,830 Total assets 362,148 (1,220 ) 360,928 Other accrued liabilities 13,482 (156 ) 13,326 Total current liabilities 43,556 (156 ) 43,400 Total liabilities 67,445 (156 ) 67,289 Retained earnings 291,994 (1,064 ) 290,930 Total shareholders’ equity 294,703 (1,064 ) 293,639 Total liabilities and shareholders’ equity 362,148 (1,220 ) 360,928 Fifty-Two Weeks Ended February 2, 2019 As Reported Adjustments Amounts Under Prior U.S. GAAP Consolidated Statement of Operations Net revenues $ 416,097 $ (1,478 ) $ 414,619 Cost of sales 177,510 (655 ) 176,855 Gross profit (loss) 238,587 (823 ) 237,764 Operating income (loss) 27,101 (823 ) 26,278 Income (loss) before income taxes 28,226 (823 ) 27,403 Income tax expense (benefit) 7,469 (213 ) 7,256 Net income (loss) 20,757 (610 ) 20,147 Fifty-Two Weeks Ended February 2, 2019 As Reported Adjustments Amounts Under Prior U.S. GAAP Consolidated Statement of Cash Flows Cash flows from operating activities Net income (loss) $ 20,757 $ (610 ) $ 20,147 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes (1,497 ) 52 (1,445 ) Changes in assets and liabilities: Accounts receivable 438 1,837 2,275 Inventories (3,994 ) (655 ) (4,649 ) Income taxes 4,933 (265 ) 4,668 Accrued and other liabilities 94 (359 ) (265 ) Disaggregation of Revenue The following presents the Company's net revenues disaggregated by product category for the fifty-two weeks ended February 1, 2020 and February 2, 2019 (in thousands): Fifty-Two Weeks Ended February 1, 2020 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 136,509 $ 41,206 $ — $ 177,715 Travel 91,732 16,712 — 108,444 Accessories 75,162 15,470 64,568 155,200 Home 32,987 2,703 — 35,690 Other 11,094 (1) 5,720 (2) 1,349 (3) 18,163 Total net revenues $ 347,484 (4) $ 81,811 (5) $ 65,917 (4) $ 495,212 (1) Primarily includes net revenues from apparel/footwear, stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, apparel/footwear, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $78.0 million of net revenues related to product sales recognized at a point in time and $3.8 million of net revenues related to sales-based royalties recognized over time. Fifty Two Weeks Ended February 2, 2019 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 128,255 $ 42,626 $ — $ 170,881 Travel 87,746 19,767 — 107,513 Accessories 75,751 17,043 — 92,794 Home 26,846 2,757 — 29,603 Other 9,436 (1) 5,870 (2) — 15,306 Total net revenues $ 328,034 (3) $ 88,063 (4) $ — $ 416,097 (1) Primarily includes net revenues from stationery, apparel/footwear, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, apparel/footwear, and merchandising. (3) Net revenues were related to product sales recognized at a point in time. (4) $84.5 million of net revenues related to product sales recognized at a point in time and $3.6 million of net revenues related to sales-based royalties recognized over time. Contract Balances Contract liabilities as of February 1, 2020 and February 2, 2019 , consisted of $3.9 million and $1.6 million , respectively. The balance as of February 1, 2020 consisted of unearned revenue related to the monthly bracelet and jewelry clubs of the Pura Vida segment, unredeemed gift cards, Pura Vida payments collected before shipment, and an immaterial amount of unearned revenue for pre-payments of royalties in certain of the Company’s licensing arrangements and other customer pre-payments. The balance as of February 2, 2019 consisted of unearned revenue related to unredeemed gift cards and an immaterial amount of unearned revenue for pre-payments of royalties in certain of the Company’s licensing arrangements. These contract liabilities are recognized within other accrued liabilities on the Company’s Consolidated Balance Sheets. The Company did not have contract assets as of February 1, 2020 and February 2, 2019 . The balance for accounts receivable from contracts with customers, net of allowances, as of February 1, 2020 and February 2, 2019 was $16.3 million and $14.1 million , respectively, which is recognized within accounts receivable, net, on the Company’s Consolidated Balance Sheets. The provision for doubtful accounts was $0.5 million and $0.3 million as of February 1, 2020 and February 2, 2019 , respectively. Performance Obligations The performance obligations for the VB Direct, VB Indirect, and Pura Vida segments include the promise to transfer distinct goods (or a bundle of distinct goods). The VB Indirect segment also includes the right to access intellectual property (“IP”) related to the Vera Bradley brand. Remaining Performance Obligations The Company does not have remaining performance obligations in excess of one year or contracts that it does not have the right to invoice as of February 1, 2020 . Significant Judgments Product Sales In the Vera Bradley retail stores (recognized within the VB Direct segment), control is transferred and net revenue is recognized at the point of sale. Product shipments for the Company’s e-commerce channels (recognized within the VB Direct and Pura Vida segments) and shipments to its wholesale retailers (recognized within the VB Indirect segment and Pura Vida segment) are generally shipped Free on Board (“FOB”) shipping point typically from its distribution center in Roanoke, Indiana, for Vera Bradley products and primarily from its third-party fulfillment center in Tijuana, Mexico for Pura Vida products. Net revenue is recognized upon shipment consistent with when control is transferred to the customer. Upon shipment, the customer has the right to direct the use of, and obtain substantially all of the benefits from, the product. Licensing Royalties The Company grants rights to access its Vera Bradley IP and accounts for any resulting sales-based royalty revenue over time, as the subsequent sales occur. The Company has contractually guaranteed minimum royalties in certain of its sales-based royalty arrangements which are recognized straight-line over the remaining license period once determined that the minimum sales level will not be achieved. Licensing royalties are recognized within VB Indirect segment net revenues. Transaction Price and Amounts Allocated to Performance Obligations The transaction price is the amount of consideration the Company expects to be entitled to in a sales transaction. The transaction price is net of discounts, estimated variable consideration (if any), and any customer allowances offered or estimated, including those offered to certain Indirect retailers based on various contract terms. The transaction price also is net of allowances for product returns, which the Company is able to reasonably estimate based upon historical experience. The transaction price is allocated to each performance obligation in the contract based upon the standalone selling price. Contract Costs Sales commissions are paid to certain employees based upon specific sales achieved during a time period. As the Company’s contracts related to these sales commissions do not exceed one year, these incentive payments are expensed as incurred. Other Practical Expedients Remaining Performance Obligations The Company does not disclose the remaining performance obligations for contracts with an original expected duration of one year or less or for contracts which it has the right to invoice. Significant Financing Components The Company does not adjust for the time value of money as the majority of its contracts have an original expected duration of one year or less; contracts that are greater than one year are related to net revenues that are constrained until the subsequent sales occur. The net revenues associated with these contracts are immaterial, and the Company does not adjust for the time value of money. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | Leases Nature of Leases The Company has operating leases at all of its retail stores, as well as for its New York office, the California Pura Vida office, Asia sourcing office, and showrooms. The Company also has operating leases for certain equipment and storage spaces. The Company does not have residual value guarantees, restrictions, or covenants imposed by leases. Determination of Lease Terms Retail store leases have remaining terms of up to 10 years as of February 1, 2020 . These leases generally have early termination rights when certain sales thresholds are not met for a specified measurement period. The Company's other leases have remaining terms of up to approximately seven years as of February 1, 2020 . If the lease contains a renewal period at the Company's option, the renewal period is included in the lease term if determined the option is reasonably certain to be exercised at lease commencement. The Company's lease options generally do not include termination rights other than those mentioned. The Company did not have financing leases as of February 1, 2020 . Variable Rental Payments All of the Company's retail store leases contain variable rental payments when the retail store's sales exceed a specified breakpoint. In addition, certain of the Company's leases contain real estate taxes, common area maintenance, and similar items that are billed as pass-through charges from its landlords. These rental payments are not included in the measurement of the lease liability, but are recognized as variable lease cost in the period incurred. Certain of the Company's leases also contain lease components with increases based upon an index or rate. These lease components are included on the Company's balance sheet at the rate as of lease commencement. Future changes in the index or rate will generally be included as variable lease cost. Significant Judgments and Assumptions Determination of Whether a Contract Contains a Lease The Company determines whether a contract is or contains a lease at the inception of the contract. The contract is, or contains, a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from use of the property, plant, and equipment and have the right to direct its use. Discount Rate The weighted-average discount rate as of February 1, 2020 , was 5.0% . The rate implicit in the lease is not readily determinable in the lease agreements; therefore, the Company estimated the incremental borrowing rate, at the commencement date of each lease, which is the rate of interest it would have to borrow on a collateralized basis over a similar term with similar payments. Leases Not Yet Commenced As of February 1, 2020 , the Company had retail store leases which were executed, but did not have control of the underlying assets; therefore, the lease liabilities and right-of-use assets are not recorded on its Consolidated Balance Sheet. These leases contain undiscounted lease payments, which will be included in the determination of the lease liability, totaling approximately $3.1 million and have approximate terms of 10 years commencing in fiscal 2021. Practical Expedients (Policy Elections) The Company has elected the following practical expedients as policy elections upon the adoption of ASC Topic 842. Short-Term Leases The Company elected to exclude leases with a term of 12 months or less from recognition on the balance sheet for all leases. Not Separating Lease and Nonlease Components The Company elected to combine lease and nonlease components and recognize as a single lease component for all leases. Refer to Note 2 herein for information regarding transition practical expedients elected. Amounts Recognized in the Consolidated Financial Statements Lease expense is recorded within cost of sales for the Asia sourcing office and certain equipment leases and within selling, general, and administrative expenses for all other leases, including retail store leases, in the Company's Consolidated Statement of Operations for the fiscal year ended February 1, 2020 (in thousands): Fifty-Two Weeks Ended February 1, 2020 Operating lease cost $ 28,808 Variable lease cost 9,266 Short-term lease cost 576 Total lease cost $ 38,650 The weighted-average remaining lease term as of February 1, 2020 was 6.0 years . Supplemental operating cash flow information was as follows (in thousands): Fifty-Two Weeks Ended February 1, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 32,702 Right-of-use assets increase as a result of new and modified operating lease liabilities, net $ 10,850 Maturity Analysis of Operating Lease Liabilities Maturities of the Company's operating lease liabilities (undiscounted) reconciled to its lease liability as of February 1, 2020 were as follows (in thousands): Operating Leases Fiscal 2021 $ 27,531 Fiscal 2022 29,215 Fiscal 2023 25,268 Fiscal 2024 22,054 Fiscal 2025 19,059 Thereafter 34,934 Total remaining obligations 158,061 Less: Interest (22,939 ) Present value of lease liabilities $ 135,122 Under the prior accounting standard (ASC Topic 840), the maturities of minimum lease payments as disclosed in the Company's Annual Report on Form 10-K as of the fiscal year ended February 2, 2019 were as follows: Operating Leases Fiscal 2020 $ 32,658 Fiscal 2021 32,017 Fiscal 2022 29,707 Fiscal 2023 25,933 Fiscal 2024 22,250 Thereafter 45,099 Total remaining minimum lease payments $ 187,664 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment consisted of the following (in thousands): February 1, February 2, Land and land improvements $ 5,981 $ 5,981 Building and building improvements 46,233 46,233 Furniture, fixtures, leasehold improvements, computer equipment and software 116,238 112,316 Equipment and vehicles 21,205 21,002 Construction in progress 6,002 1,699 195,659 187,231 Less: Accumulated depreciation and amortization (122,632 ) (109,280 ) Property, plant, and equipment, net $ 73,027 $ 77,951 Property, plant, and equipment and operating right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset groups may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows, which is generally the retail store level. The assets are grouped at the individual store level for store-related assets. If the estimated undiscounted future cash flows related to the property, plant, and equipment and operating right-of-use assets are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, as further defined in Note 2. Impairment charges of $6.3 million were recognized, using level 3 inputs, in the fiscal year ended February 3, 2018 for asset groups related to underperforming stores and are included in selling, general, and administrative expenses in the Consolidated Statements of Operations and in impairment charges in the Consolidated Statements of Cash Flows. The impairment charges are included in the VB Direct segment. There were no impairment charges recorded during the fiscal years ended February 1, 2020 and February 2, 2019 . Depreciation and amortization expense associated with property, plant, and equipment, excluding impairment charges (in thousands): Fiscal year ended February 1, 2020 $ 18,447 Fiscal year ended February 2, 2019 16,540 Fiscal year ended February 3, 2018 19,570 |
Debt
Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of February 1, 2020 and February 2, 2019 , the Company had no borrowings outstanding and availability of $75.0 million under its Credit Agreement. Subsequent to the end of the fiscal year, the Company has drawn $60.0 million of its $75.0 million Credit Agreement to provide additional flexibility as a result of the COVID-19 pandemic. Credit Agreement On September 7, 2018, Vera Bradley Designs, Inc. (“VBD”), a wholly-owned subsidiary of the Company, entered into an asset-based revolving Credit Agreement (the “Credit Agreement”) among VBD, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto. The Credit Agreement provides for certain credit facilities to VBD in an aggregate principal amount not to initially exceed the lesser of $75.0 million or the amount of borrowing availability determined in accordance with a borrowing base of certain assets. Any proceeds of the credit facilities will be used to finance general corporate purposes of VBD and its subsidiaries, including but not limited to Vera Bradley International, LLC and Vera Bradley Sales, LLC (collectively, the “Named Subsidiaries”). The Credit Agreement also contains an option for VBD to arrange with lenders to increase the aggregate principal amount by up to $25.0 million . Amounts outstanding under the Credit Agreement bear interest at a per annum rate equal to either (i) for CBFR borrowings (including swingline loans), the CB Floating Rate, where the CB Floating Rate is the prime rate which shall never be less than the adjusted one month LIBOR rate on such day, plus the Applicable Rate, where the Applicable Rate is a percentage spread ranging from -1.00% to -1.50% or (ii) for each eurodollar borrowing, the Adjusted LIBO Rate, where the Adjusted LIBO Rate is the LIBO rate for such interest period multiplied by the statutory reserve rate, for the interest period in effect for such borrowing, plus the Applicable Rate, where the Applicable Rate is a percentage ranging from 1.00% to 1.30% . The applicable CB Floating Rate, Adjusted LIBO Rate, or LIBO Rate shall be determined by the administrative agent. The Credit Agreement also requires VBD to pay a commitment fee for the unused portion of the revolving facility of up to 0.20% per annum. VBD’s obligations under the Credit Agreement are guaranteed by the Company and the Named Subsidiaries. The obligations of VBD under the Credit Agreement are secured by substantially all of the respective assets of VBD, the Company, and the Named Subsidiaries and are further secured by the equity interests in VBD and the Named Subsidiaries. The Credit Agreement contains various affirmative and negative covenants, including restrictions on the Company's ability to incur debt or liens; engage in mergers or consolidations; make certain investments, acquisitions, loans, and advances; sell assets; enter into certain swap agreements; pay dividends or make distributions or make other restricted payments; engage in certain transactions with affiliates; and amend, modify, or waive any of its rights related to subordinated indebtedness and certain charter and other organizational, governing, and material agreements. The Company may avoid certain of such restrictions by meeting payment conditions defined in the Credit Agreement. The Credit Agreement also requires the loan parties, as defined in the Credit Agreement, to maintain a minimum fixed charge coverage ratio of 1.0 0 to 1.00 during periods when borrowing availability is less than the greater of (A) $7.5 million , and (B) 10% of the lesser of (i) the aggregate revolving commitment, and (ii) the borrowing base. The fixed charge coverage ratio, availability, aggregate revolving commitment, and the borrowing base are further defined in the Credit Agreement. The Credit Agreement contains customary events of default, including, among other things: (i) the failure to pay any principal, interest, or other fees under the Credit Agreement; (ii) the making of any materially incorrect representation or warranty; (iii) the failure to observe or perform any covenant, condition, or agreement in the Credit Agreement or related agreements; (iv) a cross default with respect to other material indebtedness; (v) bankruptcy and insolvency events; (vi) unsatisfied material final judgments; (vii) Employee Retirement Income Security Act of 1974 (“ERISA”) events that could reasonably be expected to have a material adverse effect; and (viii) a change in control (as defined in the Credit Agreement). Any commitments made under the Credit Agreement mature on September 7, 2023. There were no material fees or expenses associated with the Credit Agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense were as follows (in thousands): February 1, February 2, February 3, Current: Federal $ 4,509 $ 7,020 $ 488 Foreign 681 610 364 State 989 1,336 (628 ) 6,179 8,966 224 Deferred: Federal (805 ) (1,663 ) 7,476 State (59 ) 166 678 (864 ) (1,497 ) 8,154 Total income tax expense $ 5,315 $ 7,469 $ 8,378 A breakdown of the Company’s income before income taxes is as follows (in thousands): February 1, February 2, February 3, Domestic $ 16,267 $ 24,426 $ 13,666 Foreign 4,292 3,800 1,728 Total income before income taxes $ 20,559 $ 28,226 $ 15,394 A reconciliation of income tax expense to the amount computed at the federal statutory rate is as follows (in thousands): February 1, February 2, February 3, Federal taxes at statutory rate $ 4,317 21.0 % $ 5,927 21.0 % $ 5,067 32.9 % State and local income taxes, net of federal benefit 752 3.7 1,203 4.3 665 4.3 Impact related to redeemable noncontrolling interest 168 0.8 — — — — Shortfall from stock-based compensation 63 0.3 101 0.4 1,111 7.2 Impact of foreign rate differential (210 ) (1.0 ) (188 ) (0.7 ) (247 ) (1.6 ) Change in uncertain tax positions (17 ) (0.1 ) (17 ) (0.1 ) (632 ) (4.1 ) Change in U.S. tax rate — — — — 2,026 13.2 Deemed mandatory repatriation — — — — 345 2.2 Other 242 1.2 443 1.6 43 0.3 Total income tax expense $ 5,315 25.9 % $ 7,469 26.5 % $ 8,378 54.4 % On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act includes, among other things, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, bonus depreciation that allows for full expensing for qualified property, the transition of U.S. international taxation from a worldwide system to a territorial system with a new provision designed to tax global intangible low-taxed income ("GILTI"), and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings. Section 15 of the Internal Revenue Code stipulates that the Company's fiscal year ended February 3, 2018, had a blended federal statutory tax rate of approximately 32.9% , which is based on the applicable tax rates before and after the effectiveness of the Tax Act and the number of days in the year. The Company recorded $2.1 million in provisional income tax expense during the fourth quarter of fiscal 2018 based upon its understanding of the Tax Act and guidance as of the date of the fiscal 2018 filing. Of the $2.1 million , $2.0 million was related to the remeasurement of net deferred tax assets at rates which they are expected to reverse in the future and $0.3 million was related to the one-time transition tax on mandatory deemed repatriation of foreign earnings, which were partially offset by a $0.2 million income tax benefit related to the blended federal statutory rate. The Tax Act created a new requirement that certain income earned by foreign subsidiaries, known as GILTI, must be included in the gross income of their U.S. shareholder. The Company elected to treat the tax effect of GILTI as a current-period expense when incurred. During the fourth quarter of fiscal 2019, the Company completed its accounting for the Tax Act and recorded no material adjustments to its fiscal 2018 provisional estimate. Deferred income taxes reflect the net tax effects of temporary differences between the book and tax bases of assets and liabilities. Significant components of deferred tax assets and liabilities were as follows (in thousands): February 1, February 2, Deferred tax assets: Operating lease liabilities $ 36,209 $ — Compensation and benefits 3,021 2,912 Inventories 1,317 1,753 Deferred credits from landlords — 6,922 Other 1,890 1,241 Total deferred tax assets 42,437 12,828 Deferred tax liabilities: Operating lease assets (30,620 ) — Property, plant, and equipment (2,656 ) (3,859 ) Other (1,505 ) (2,245 ) Total deferred tax liabilities (34,781 ) (6,104 ) Net deferred tax assets $ 7,656 $ 6,724 Uncertain Tax Positions A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): February 1, February 2, February 3, Beginning balance $ 83 $ 104 $ 877 Net increases in unrecognized tax benefits as a result of current year activity 11 44 — Lapse of statute of limitations (35 ) (65 ) (106 ) Net increases in unrecognized tax benefits as a result of prior year activity — — 210 Reductions for tax positions of prior years — — (877 ) Ending balance $ 59 $ 83 $ 104 As of February 1, 2020 , $0.1 million of total unrecognized tax benefits, net of federal benefit, would, if recognized, favorably affect the effective tax rate in future periods. Total unrecognized tax benefits are currently not expected to decrease by a significant amount in the next twelve months. The Company recognized an immaterial amount of interest only, no penalties, related to unrecognized tax benefits in the fiscal years ended February 1, 2020 , February 2, 2019 , and February 3, 2018 . Unrecognized tax benefits are included within long-term liabilities in the Company's Consolidated Balance Sheets. The Company files income tax returns in the U.S. federal jurisdiction and various U.S. state and foreign jurisdictions. The Company is subject to U.S. federal income tax examinations for fiscal years 2017 and forward. With a few exceptions, the Company is subject to audit by various state and foreign taxing authorities for fiscal 2016 through the current fiscal year. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation consists of awards of restricted stock and restricted stock units. The Company recognized stock-based compensation expense of $5.9 million , $4.9 million , and $3.1 million in the fiscal years ended February 1, 2020 , February 2, 2019 , and February 3, 2018 , respectively. Awards of Restricted-Stock Units 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. As of February 1, 2020 , there were 3,964,026 shares remaining in that program. During the fiscal year ended February 1, 2020 , the Company granted a total of 416,944 time-based and performance-based restricted stock units to certain employees and non-employee directors under the 2010 Equity and Incentive Plan with an aggregate fair value of $5.4 million . The Company determined the fair value of the units based on the closing price of the Company’s common stock on the grant date. The majority of 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. Restricted stock unit awards issued to non-employee directors vest after a one -year period from the grant date. The Company is recognizing the expense relating to these awards, net of estimated forfeitures, on a straight-line basis over the vesting period. The majority of 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 earnings per share targets, or other Company performance 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 financial targets, on a straight-line basis over the vesting period. The following table summarizes information about restricted-stock units as of and for the year ended February 1, 2020 (units in thousands): Time-based Restricted Stock Units Performance-based Restricted Stock Units Number of Units Weighted- Average Grant Date Fair Value (per unit) Number of Units Weighted- Average Grant Date Fair Value (per unit) Nonvested units outstanding at February 2, 2019 473 $ 11.75 442 $ 11.38 Granted 246 12.94 171 13.10 Change due to performance condition achievement — — 111 10.59 Vested (277 ) 12.32 (50 ) 19.62 Forfeited (9 ) 13.17 (3 ) 9.97 Nonvested units outstanding at February 1, 2020 433 $ 12.03 671 $ 11.08 As of February 1, 2020 , there was $6.4 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 1.3 years , subject to meeting performance conditions. The total fair value of restricted stock units for which restrictions lapsed (vested) during fiscal 2020 was $4.1 million . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
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 claims, employee benefits, environmental issues, and other matters. Management believes that at this time it is not probable that any of these claims will have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. However, the outcomes of legal proceedings and claims brought against the Company are subject to uncertainty and future developments could cause these actions or claims, individually or in the aggregate, to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows of a particular reporting period. In August of 2019, Vesi Incorporated (“Vesi”) filed suit against the Company in the U.S. District Court for the Southern District of Ohio related to the Company’s licensing business and alleging breach of fiduciary duty, unfair competition, defamation, and tortious interference with prospective business relationships. The complaint seeks damages in an amount not less than $10.0 million for punitive damages, attorney fees, prejudgment interest, and any other additional relief. The Company has denied any liability and intends to vigorously defend itself in the case. In November 2019, the Company filed a counterclaim against the principals of Vesi as personal guarantors for monies owed to the Company by Vesi. The cases are currently in discovery. At this time, we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition or results of operations due to the fact that the Company is vigorously defending itself and management believes that the Company has a number of meritorious legal defenses. |
401(k) Profit Sharing Plan and
401(k) Profit Sharing Plan and Trust | 12 Months Ended |
Feb. 01, 2020 | |
Disclosure Profit Sharing Plan And Trust Additional Information [Abstract] | |
401(k) Profit Sharing Plan and Trust | 401(k) Profit Sharing Plan and Trust The Company has a 401(k) profit sharing plan and trust for all qualified employees and provides a 100% match for the first 3% of employee contributions and a 50% match for the next 2% of employee contributions, for a maximum Company match of 4% of employee contributions, limited to the annual legal allowable limit. Additionally, the Company has the option of making discretionary profit sharing payments to the plan as approved by the board of directors. As of February 1, 2020 , February 2, 2019 , and February 3, 2018 , no discretionary profit sharing payments had been approved. The Company recognizes 401(k) Company contributions within cost of sales for employees related to distribution center, sourcing, and other related functions and selling, general, and administrative expenses for all other employees. Total Company contributions to the plan were as follows (in thousands): Fiscal year ended February 1, 2020 $ 1,732 Fiscal year ended February 2, 2019 1,661 Fiscal year ended February 3, 2018 1,533 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Feb. 01, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Charitable Contributions . During each of the fiscal years ended February 1, 2020 , February 2, 2019 , and February 3, 2018 the Company made charitable contributions of approximately $0.1 million to the Vera Bradley Foundation for Breast Cancer (the “Foundation”). The Foundation was founded by one of the Company’s directors, who is also on the board of directors of the Foundation. The liability associated with commitments to the Foundation was approximately $0.3 million as of February 1, 2020 and February 2, 2019 . The liability consisted of pass-through donations from customers and is included in other accrued liabilities in the Consolidated Balance Sheets. The associated expense for contributions to the Foundation, which is included in selling, general, and administrative expenses, was as follows (in thousands): Fiscal year ended February 1, 2020 $ 101 Fiscal year ended February 2, 2019 144 Fiscal year ended February 3, 2018 140 Share Repurchases . During the fiscal year ended February 2, 2019 , the Company repurchased a total of 400,000 shares of common stock from related-parties as described below. Each transaction was approved by the Company's Audit Committee and effected as part of the 2015 Share Repurchase Program. Refer to Note 13 herein for details regarding the Company's current and prior share repurchase programs. On June 26, 2018, the Company agreed to repurchase 200,000 shares of common stock from the Barbara B Baekgaard 2009 Grantor Retained Annuity Trust (the “Baekgaard Trust”) at a price of $14.43 per share, representing an approximate four percent ( 4% ) discount from the closing price of $15.03 on June 25, 2018. The Baekgaard Trust was established by the Company’s co-founder, Barbara Bradley Baekgaard, and is managed by two of Ms. Baekgaard’s children, Joan Byrne Hall (who is also the spouse of the Company’s chairman) and James Bradley Byrne. On September 27, 2018, the Company agreed to repurchase 200,000 shares of common stock from the Patricia R. Miller 2007 Family Trust (the “Miller Trust”) at a price of $15.04 per share, representing an approximate three and one half percent ( 3.5% ) discount from the closing price of $15.58 on September 26, 2018. P. Michael Miller is the trustee of the Miller Trust and is a director of the Company. P. Michael Miller and Patricia Miller, the Company's co-founder, are husband and wife. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net income per share is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed based on the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding restricted stock and restricted-stock units. The components of basic and diluted net income per share are as follows (in thousands, except per share data): Fiscal Year Ended February 1, February 2, February 3, Numerator: Net income $ 15,244 $ 20,757 $ 7,016 Less: Net loss attributable to redeemable noncontrolling interest (803 ) — — Net income attributable to Vera Bradley, Inc. $ 16,047 $ 20,757 $ 7,016 Denominator: Weighted-average number of common shares (basic) 33,983 35,222 35,925 Dilutive effect of stock-based awards 305 245 101 Weighted-average number of common shares (diluted) 34,288 35,467 36,026 Net income per share attributable to Vera Bradley, Inc.: Basic $ 0.47 $ 0.59 $ 0.20 Diluted $ 0.47 $ 0.59 $ 0.19 As of February 1, 2020 , February 2, 2019 , and February 3, 2018 , 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. The diluted share calculations include performance-based restricted stock units for completed performance periods. |
Common Stock
Common Stock | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Common Stock | Common Stock On December 8, 2015, the Company's board of directors approved a share repurchase program (the “2015 Share Repurchase Program”) authorizing up to $50.0 million of repurchases of shares of the Company's common stock. On November 30, 2017, the board of directors authorized the Company to extend the 2015 Share Repurchase Plan to December 31, 2018. The 2015 Share Repurchase program was completed on November 27, 2018. On November 29, 2018, the Company's board of directors approved a new share repurchase plan (the “2018 Share Repurchase Program”) authorizing up to $50.0 million of repurchases of shares of the Company's common stock. The 2018 Share Repurchase Program expires December 14, 2020. Subsequent to year end, in light of the 2019 novel coronavirus (COVID-19) pandemic, the Company suspended the 2018 Share Repurchase Program. During the fiscal year ended February 1, 2020 , the Company purchased and held 1,075,749 shares at an average price of $10.52 per share, excluding commissions, for an aggregate amount of $11.3 million , under the 2018 Share Repurchase Program. During the fiscal year ended February 2, 2019 , the Company purchased and held 1,293,138 shares at an average price of $12.58 per share, excluding commissions, for an aggregate amount of $16.3 million . Of these purchases, 320,296 shares at an average price of $8.86 per share, for an aggregate amount of $2.8 million , were purchased under the 2018 Share Repurchase Plan. During the fiscal year ended February 3, 2018 , the Company purchased and held 934,031 shares at an average price of $8.47 per share, excluding commissions, for an aggregate amount of $7.9 million , under the 2015 Share Repurchase Program. As of February 1, 2020 , there was $35.8 million remaining available to repurchase shares of the Company’s common stock under the 2018 Share Repurchase Program. As of February 1, 2020 , the Company held as treasury shares 8,011,372 shares of its common stock at an average price of $13.00 per share, excluding commissions, for an aggregate carrying amount of $104.2 million . The Company’s treasury shares may be issued under the 2010 Equity and Incentive Plan or for other corporate purposes. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Vision 20/20 Restructuring and Other Charges Fifty-Three Weeks Ended February 3, 2018 Vision 20/20 Initiatives and Charges . During fiscal 2018, the Company launched its Vision 20/20 strategic plan, which involves an aggressive approach to turn around its business over the period ending in fiscal 2021. The plan is primarily focused on product and pricing initiatives, as well as selling, general, and administrative (“SG&A”) expense reduction initiatives. The product and pricing initiatives include restoring the Company's full-price business by significantly reducing the amount of clearance merchandise offered on verabradley.com and in its full-line stores, streamlining current product offerings by eliminating unproductive or incongruent categories and SKUs from its assortment, and introducing tighter guardrails around new product categories, patterns, and pricing. The SG&A expense reductions include right-sizing the Company’s corporate infrastructure to better align with the size of the business, optimizing marketing spending by focusing on efficiencies, and taking a more aggressive stance on closing underperforming full-line stores. These SG&A expense reductions began in the third quarter of fiscal 2018, largely aimed at right-sizing the corporate infrastructure. The majority of the product and pricing initiatives were completed during fiscal 2019. There have been $16.7 million of pre-tax Vision 20/20-related charges ( $10.6 million after the associated tax benefit) since inception, all of which were recognized during fiscal 2018. There were no Vision 20/20-related charges during the fiscal years ended February 1, 2020 and February 2, 2019. The Company incurred the following Vision 20/20-related charges during the fiscal year ended February 3, 2018 (in thousands): Fiscal 2018 Statements of Income Line Item Total Expense Reportable Segment Unallocated Corporate Expenses SG&A Cost of Sales Direct Indirect Asset impairment charges (1) $ 6,298 $ — $ 6,298 $ 6,298 $ — $ — Strategic consulting charges (2) 4,649 — 4,649 — — 4,649 Severance charges 3,867 199 4,066 826 1,184 2,056 Inventory-related charges (3) — 935 935 — 935 — Other charges (4) 751 — 751 466 230 55 Total $ 15,565 $ 1,134 $ 16,699 (5) $ 7,590 $ 2,349 $ 6,760 (1) Refer to Note 5 herein for additional details (2) Consulting charges for the identification and implementation of Vision 20/20 initiatives (3) Inventory adjustments for the discontinuation of certain inventory categories (4) Includes a net lease termination charge ($399 recognized within the Direct segment) and accelerated depreciation charges and other charges ($67 recognized within the Direct segment, $230 recognized within the Indirect segment, and $55 recognized within corporate unallocated expenses) (5) After the associated tax benefit, the charges totaled $10.6 million A summary of charges and related liabilities associated with the Vision 20/20 initiatives are as follows (in thousands): Asset Impairment Charges Strategic Consulting Charges Severance Charges Inventory-Related Charges Other Charges Total Fiscal 2018 charges $ 6,298 $ 4,649 $ 4,066 $ 935 $ 751 $ 16,699 Cash payments — (4,649 ) (2,508 ) — (411 ) (7,568 ) Non-cash charges (6,298 ) — — (935 ) (340 ) (7,573 ) Liability as of February 3, 2018 (1) $ — $ — $ 1,558 $ — $ — $ 1,558 (1) The remaining liability as of fiscal 2018 was associated with severance charges and is included within accrued employment costs in the Consolidated Balance Sheets. The remaining liability as of fiscal 2018 was paid during fiscal 2019 and there were no additional charges during fiscal 2019. Other Charges . Other charges recognized in selling, general, and administrative expenses during fiscal 2018, before the implementation of Vision 20/20, totaled $2.8 million ( $1.7 million after the associated tax benefit). These pre-tax charges consisted of $2.5 million in severance charges (recognized within corporate unallocated expenses) and $0.3 million for a net lease termination charge (recognized within the Direct segment). Other charges recognized in tax expense during fiscal 2018 totaled $2.1 million related to the Tax Cuts and Jobs Act further described in Note 7 herein. |
Investments
Investments | 12 Months Ended |
Feb. 01, 2020 | |
Schedule of Investments [Abstract] | |
Investments | Investments The Company held $9.0 million and $19.4 million in short-term investments as of February 1, 2020 and February 2, 2019 , respectively. The following table summarizes the Company’s short-term investments (in thousands): February 1, 2020 February 2, 2019 U.S. corporate debt securities $ 3,435 $ 5,769 Commercial paper 2,489 498 Municipal securities 1,594 4,190 Non-U.S. corporate debt securities 1,136 5,808 U.S. asset-backed securities 323 — U.S. treasury securities — 3,116 Total short-term investments $ 8,977 $ 19,381 The Company held $14.9 million and $23.7 million in long-term investments as of February 1, 2020 and February 2, 2019 , respectively. The following table summarizes the Company’s long-term investments (in thousands): February 1, 2020 February 2, 2019 U.S. corporate debt securities $ 5,613 $ 9,499 U.S. asset-back securities 5,498 7,169 Non-U.S. corporate debt securities 2,409 4,675 Other foreign securities 810 — Non-U.S. asset-backed securities 582 1,127 Municipal securities — 1,265 Total long-term investments $ 14,912 $ 23,735 There were no material gross unrealized gains or losses on available-for-sale debt securities as of February 1, 2020 and February 2, 2019 . |
Acquisition of Pura Vida
Acquisition of Pura Vida | 12 Months Ended |
Feb. 01, 2020 | |
Business Combinations [Abstract] | |
Acquisition of Pura Vida | Acquisition of Pura Vida On July 16, 2019, the Company completed its acquisition of a seventy-five percent ( 75% ) ownership interest in Creative Genius, Inc. or “Pura Vida” (the “Transaction”) in exchange for cash consideration of approximately $75.0 million . During the third quarter of fiscal 2020, the Company provided additional cash consideration of approximately $3.0 million for a working capital adjustment. Additional measurement period adjustments were recorded for conditions that existed as of the acquisition date. Pura Vida, based in La Jolla, California, is a digitally native lifestyle brand that we believe deeply resonates with its loyal consumer following. The Pura Vida brand has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories. The Company believes that the acquisition will strengthen the Company by providing increased product diversification and future growth opportunities partially as a result of resource and knowledge-sharing. In accordance with the Interest Purchase Agreement, the Company also agreed to a contingent payment of up to $22.5 million based on calendar year 2019 adjusted EBITDA of Pura Vida, as defined in the Interest Purchase Agreement. This contingent payment is recorded as an earn-out liability on the Company’s Consolidated Balance Sheets at its estimated amount payable of $18.4 million . Subsequent to the end of the fiscal year, the Company paid the earn-out liability. The Company’s existing available cash, cash equivalents, and investments funded the purchase price due at the closing of the Transaction and subsequent to the closing. Pre-tax Transaction costs totaled $2.7 million for the fiscal year ended ended February 1, 2020 . These costs are recorded within selling, general, and administrative expenses in the Consolidated Statements of Operations and within corporate unallocated expenses. On July 16, 2019, as contemplated by the Interest Purchase Agreement, the Company and certain of its subsidiaries and the owners of the remaining twenty-five percent ( 25% ) ownership interest in Pura Vida which was not acquired by the Company entered into a Put/Call Agreement. Refer to Note 2 herein for additional information regarding the Put/Call Agreement. The following preliminary schedule summarizes the consideration paid for Pura Vida, the fair value of the assets acquired and liabilities assumed, the fair value of the noncontrolling interest, and the fair value of the contingent consideration related to the earn-out provision. The accounting for the acquisition is preliminary as the Company has not yet finalized the valuation of the aforementioned items. in thousands Fair Value at Acquisition Date Measurement Period Adjustments Adjusted Fair Value at Acquisition Date Cash and cash equivalents $ 1,495 $ 1,495 Accounts receivable, net (5) 8,673 (993 ) 7,680 Inventories (1) 27,643 11 27,654 Prepaid expenses and other current assets 1,537 1,537 Operating right of use asset 1,250 1,250 Property, plant, and equipment, net 751 751 Goodwill (2) 41,310 2,944 44,254 Intangible asset, brand (3) 36,668 36,668 Other intangible assets (4) 25,283 (287 ) 24,996 Total assets acquired 144,610 1,675 146,285 Accounts payable 6,818 6,818 Accrued employment costs 2,351 2,351 Other accrued liabilities (5) 6,637 6,637 Operating lease liability 1,659 (22 ) 1,637 Total liabilities assumed 17,465 (22 ) 17,443 Less: Contingent consideration related to earn-out provision (6) (20,854 ) 756 (20,098 ) Redeemable noncontrolling interest (31,786 ) (424 ) (32,210 ) Cash acquired (1,495 ) (1,495 ) Total closing consideration amount, net of cash acquired (7) $ 73,010 $ 2,029 $ 75,039 (1) Includes an $8.3 million step-up adjustment which was recognized in cost of sales during the four months following the acquisition. Inventories were valued using the cost approach. The significant assumptions used for the valuation include inventory balances, projected gross and operating margins, and cost and time to dispose (sell) inventory on hand. (2) Refer to Notes 2 and 18 herein for additional information regarding goodwill. (3) The brand intangible asset was valued using the relief-from-royalty method. The significant assumptions used for the valuation include the royalty rate, estimated projected revenues, the long-term growth rate, and the discount rate. Refer to Note 18 herein for additional information regarding intangible assets. (4) Other intangible assets include customer relationships and non-competition agreements. Customer relationships were valued using the multi-period excess earnings method. Significant assumptions used for the valuation include projected cash flows, the discount rate, and the customer attrition rate. The non-competition agreements were valued using the with-or-without method. Significant assumptions used for the valuation include projected cash flows, probability of competition, impact of competition on business, and the discount rate. Refer to Note 18 herein for additional information regarding intangible assets. (5) Includes $4.1 million related to an indemnified liability. (6) Contingent consideration related to the earn-out provision was valued using a Monte Carlo simulation in order to forecast the value of the potential future payment. Significant assumptions used for the valuation include the discount rate, projected cash flows, and calculated volatility. (7) Of the total $75.0 million closing consideration, $1.0 million is due to be paid to the Company through a working capital adjustment. This $1.0 million is recorded within Accounts Receivable, net on the Consolidated Balance Sheet. Cash consideration paid during fiscal 2020 totaled $76.0 million. The operations of Pura Vida are recorded in the Company’s Consolidated Statements of Operations for the fiscal year ended February 1, 2020, beginning on July 17, 2019, which represents the first full day following the acquisition. As such, the Company’s financial statements are not comparable with the prior-year period pre sented. Refer to Note 19 herein for segment-level financial information associated with Pura Vida. The following unaudited pro forma financial information is intended to provide a sense for what the Company's operating results may have been if the Pura Vida acquisition had occurred at the beginning of fiscal 2019. The pro forma financial information is not indicative of the results that would have been reflected had the transaction actually occurred as of that date, nor is it necessarily indicative of the Company’s future results. The financial information includes expense related to supplemental officer wages and fully indemnified state sales tax matters for time periods before the acquisition date. The Company does not expect these items to have a continuing impact on its consolidated financial statements. The following adjustments have been made: • Short-term purchase accounting items, such as the inventory step-up adjustment and earn-out liability adjustment, have been excluded due to their non-recurring nature; • Definite-lived intangible amortization that exceeds one year has been reflected as if it occurred at the beginning of fiscal 2019; • Transaction costs have been excluded; and • Tax expense has been estimated at a statutory rate of 25.0% . Fifty-Two Weeks Ended in thousands, except per share data February 1, February 2, Pro forma net revenues $ 538,576 $ 484,376 Pro forma net income 23,786 16,708 Pro forma net income attributable to Vera Bradley, Inc. 22,193 18,081 Pro forma basic net income per share attributable to Vera Bradley, Inc. $ 0.65 $ 0.51 Pro forma diluted net income per share attributable to Vera Bradley, Inc. $ 0.65 $ 0.51 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table details the carrying value of the Company’s intangible assets other than goodwill related to the acquisition of a majority interest in Pura Vida. The prior-year period did not include intangible assets or goodwill. The valuation of the intangible assets and goodwill is preliminary and additional adjustments may be reflected during the measurement period. February 1, 2020 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible assets Customer Relationships $ 24,208 $ (5,274 ) $ 18,934 Non-competition Agreements 788 (85 ) 703 Total definite-lived intangible assets 24,996 (5,359 ) 19,637 Indefinite-lived intangible asset Pura Vida Brand 36,668 — 36,668 Total intangible assets, excluding goodwill $ 61,664 $ (5,359 ) $ 56,305 (1) Amortization expense is recorded within the Pura Vida segment. The provisional weighted-average amortization period for the definite-lived intangible assets in total is 3.6 years . The provisional weighted-average amortization period is 3.6 years and 5.0 years for customer relationships and non-competition agreements, respectively. The provisional amortization expense for intangible assets is as follows (in thousands): Amortization Expense Fiscal 2021 $ 9,009 Fiscal 2022 3,073 Fiscal 2023 3,073 Fiscal 2024 3,073 Fiscal 2025 1,409 Total $ 19,637 The total amount of the provisional goodwill as of February 1, 2020 , was $44.3 million recorded within the Pura Vida segment upon acquisition. Goodwill is expected to be deductible for tax purposes, limited to the Company's 75% majority ownership interest. Refer to Note 2 and 16 herein for addition information regarding goodwill. Changes in goodwill for the fiscal year ended February 1, 2020 , were as follows (in thousands): Balance at February 2, 2019 $ — Goodwill at acquisition 41,310 Measurement period adjustment 2,944 Balance at February 1, 2020 $ 44,254 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Feb. 01, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest Redeemable noncontrolling interest represents the remaining twenty-five percent ( 25% ) interest in Pura Vida not acquired by the Company. Refer to Note 2 herein for additional information. Changes in redeemable noncontrolling interest for the fifty-two weeks ended February 1, 2020 , were as follows (in thousands): Balance at February 2, 2019 $ — Fair value of noncontrolling interest at acquisition 31,786 Fair value measurement period adjustment 424 Net loss attributable to redeemable noncontrolling interest (803 ) Distributions to redeemable noncontrolling interest (1,789 ) Adjustment to redemption value 431 Balance at February 1, 2020 $ 30,049 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has three operating segments, which are also its reportable segments: VB Direct, VB Indirect, and Pura Vida. 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 VB Direct segment includes Vera Bradley full-line and factory outlet stores, the Vera Bradley website, verabradley.com, the Vera Bradley online outlet site, and the Vera Bradley annual outlet sale. Revenues generated through this segment are driven through the sale of Vera Bradley-branded products from Vera Bradley to end consumers. The VB Indirect segment represents revenues generated through the distribution of Company-branded products to specialty retailers representing approximately 2,200 locations, substantially all of which are located in the United States, as well as select department stores, national accounts, third-party e-commerce sites, third-party inventory liquidators, and licensing agreements related to the Vera Bradley brand. No customer accounted for 10% or more of the Company’s net revenues during fiscal years 2020 , 2019 , and 2018 . The Pura Vida segment represents revenues generated through the Pura Vida websites, www.puravidabracelets.com and www.puravidabracelets.eu, and through the distribution of Pura Vida-branded products to wholesale retailers, substantially all of which are located in the United States. Corporate costs represent the Company’s administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, design, product development, merchandising, corporate-level marketing and advertising, and various other corporate-level-activity-related expenses not directly attributable to a reportable segment. 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. The table below represents key financial information for each of the Company’s operating and reportable segments: VB Direct, VB Indirect, and Pura Vida. The accounting policies of the segments are the same as those described in Note 2. The Company does not report depreciation or amortization expense, total assets, or capital expenditures by segment as such information is neither used by management nor accounted for at the segment level. Net revenues and operating income information for the Company’s reportable segments consisted of the following (in thousands): Fiscal Year Ended February 1, February 2, February 3, Segment net revenues: VB Direct $ 347,484 $ 328,034 $ 351,786 VB Indirect 81,811 88,063 102,862 Pura Vida 65,917 — — Total $ 495,212 $ 416,097 $ 454,648 Segment operating income (loss): VB Direct $ 68,505 $ 67,862 $ 60,979 VB Indirect 31,077 34,500 34,763 Pura Vida (3,179 ) — — Total $ 96,403 $ 102,362 $ 95,742 Reconciliation: Segment operating income $ 96,403 $ 102,362 $ 95,742 Less: Unallocated corporate expenses (76,929 ) (75,261 ) (80,761 ) Operating income $ 19,474 $ 27,101 $ 14,981 Sales outside of the United States were immaterial for all periods presented. Revenues from external customers for Vera Bradley brand products are attributable to sales of bags, travel, accessories, and home items. Other revenues from Vera Bradley external customers primarily include revenues associated with our apparel/footwear, stationery, freight, licensing, merchandising, and gift card breakage. Revenues from external customers for Pura Vida brand products are attributable to sales of accessories. Other revenues from Pura Vida external customers include revenues associated with freight. Refer to Note 3 herein for disaggregation of net revenues by reportable segment for fiscal 2020 and fiscal 2019. Net revenues by product categories are as follows (in thousands): Fiscal Year Ended February 1, February 2, February 3, Net revenues: Bags $ 177,715 $ 170,881 $ 184,773 Accessories 155,200 92,794 100,246 Travel 108,444 107,513 118,655 Home 35,690 29,603 30,819 Other 18,163 15,306 20,155 Total $ 495,212 $ 416,097 $ 454,648 As of February 1, 2020 and February 2, 2019 , substantially all of the Company’s long-lived assets were located in the United States. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The tables below set forth selected quarterly financial data for each of the last two fiscal years (in thousands, except per share data). Each of the quarters presented was thirteen weeks in duration. Fiscal Year Ended February 1, 2020 First Quarter (1) Second Quarter (2) Third Quarter (3) Fourth Quarter (4) (unaudited) (unaudited) (unaudited) (unaudited) Net revenues $ 91,003 $ 119,785 $ 127,501 $ 156,923 Gross profit 50,468 67,333 67,870 86,130 Operating (loss) income (3,645 ) 7,348 (1,476 ) 17,247 Net (loss) income (2,405 ) 5,718 (982 ) 12,913 Net (loss) income attributable to Vera Bradley, Inc. (2,405 ) 5,854 139 12,459 Basic net (loss) income per share attributable to Vera Bradley, Inc. (0.07 ) 0.17 0.00 0.37 Diluted net (loss) income per share attributed to Vera Bradley, Inc. (0.07 ) 0.17 0.00 0.37 (1) Includes $0.8 million ( $0.6 million after the associated tax benefit) for Pura Vida transaction costs. Refer to Note 16 herein for additional information. (2) Pura Vida operating results included beginning July 17, 2019, the first full business day following the acquisition of a majority interest. Includes $1.9 million of Pura Vida transaction costs, Pura Vida purchase accounting adjustments of $1.4 million (consisting of inventory step-up amortization and intangible asset amortization), and $0.7 million of technology re-platforming charges ( $2.9 million collectively attributable to Vera Bradley, Inc. after the associated tax benefit). Refer to Note 16 herein for additional information regarding the Pura Vida acquisition. (3) Includes Pura Vida purchase accounting adjustments of $10.5 million (consisting of inventory step-up amortization, intangible asset amortization, and accretion expense associated with the earn-out liability), and $1.1 million of technology re-platforming charges ( $6.8 million collectively attributable to Vera Bradley, Inc. after the associated tax benefit). Refer to Note 16 herein for additional information regarding the Pura Vida acquisition. (4) Includes $1.6 million related to incremental stock-based compensation associated with Pura Vida performance and Pura Vida transaction bonuses, $1.2 million of technology re-platforming charges, and Pura Vida purchase accounting net adjustments of $0.1 million (consisting of intangible asset amortization and inventory step-up amortization, partially offset by an adjustment to reduce the earn-out liability). The adjustments totaled $1.9 million collectively attributable to Vera Bradley, Inc. after the associated tax benefit. Refer to Note 16 herein for additional information regarding the Pura Vida acquisition. Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (unaudited) (unaudited) (unaudited) (unaudited) Net revenues $ 86,591 $ 113,625 $ 97,688 $ 118,193 Gross profit 48,616 65,740 57,152 67,079 Operating (loss) income (1,912 ) 12,016 5,343 11,654 Net (loss) income (1,370 ) 9,282 4,226 8,619 Net (loss) income attributable to Vera Bradley, Inc. (1,370 ) 9,282 4,226 8,619 Basic net (loss) income per share attributable to Vera Bradley, Inc. (0.04 ) 0.26 0.12 0.25 Diluted net (loss) income per share attributed to Vera Bradley, Inc. (0.04 ) 0.26 0.12 0.25 Information in any one quarterly period should not be considered indicative of annual results due to the effect of seasonality of the business. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event The recent COVID-19 pandemic has resulted in global travel restrictions and community and self quarantines. The Company has temporarily closed its Vera Bradley full-line and factory outlet stores. The stores are currently closed through April 4, 2020; however, some or all of the closures will likely continue beyond this date. The Company has also temporarily suspended its share repurchase program and has drawn $60.0 million of its $75.0 million Credit Agreement to provide additional flexibility as a result of the pandemic. We cannot reasonably estimate the length or severity of the pandemic or its results on the Company’s liquidity, results of operations, and financial condition, which could have a material adverse effect. |
Description of the Company (Pol
Description of the Company (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and its majority owned subsidiary, Pura Vida beginning on July 17, 2019. The Company has eliminated intercompany balances and transactions in consolidation. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Periods The Company utilizes a 52 - 53 week fiscal year ended on the Saturday closest to January 31. As such, fiscal years 2020 and 2019, ending on February 1, 2020 and February 2, 2019 , respectively, each reflected a 52-week period. Fiscal year 2018 ending on February 3, 2018 reflected a 53 -week period |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Use of Significant Estimates | Use of Significant Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of the Company’s assets, liabilities, revenues, and expenses, as well as the disclosures relating to contingent assets and liabilities at the date of the consolidated financial statements. Significant areas requiring the use of management estimates include the valuation of inventories, valuation of long-lived assets, including operating right-of-use assets, valuation of goodwill and indefinite-lived intangible assets, accounts receivable valuation allowances, sales return allowances, and the useful lives of assets for depreciation or amortization. Actual results could differ from these estimates. The Company revises its estimates and assumptions as new information becomes available. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, deposits with financial institutions, and investments with an original maturity of three months or less. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (“FIFO”) method. Appropriate consideration is given to obsolescence, excess quantities, and other factors, including the popularity of a pattern or product, in evaluating net realizable value. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost and depreciated or amortized over the following estimated useful lives using the straight-line method: Buildings and building improvements .............................................. 39.5 years Land improvements ........................................................................... 5 – 15 years Furniture and fixtures, and leasehold improvements ........................ 3 – 10 years Equipment ......................................................................................... 7 years Vehicles ............................................................................................. 5 years Computer equipment and software ................................................... 3 – 5 years The Company recognizes depreciation and amortization expense within cost of sales for expenditures related to distribution center, sourcing, and other related functions and selling, general, and administrative expenses for all other expenditures. Leasehold improvements are amortized over the shorter of the life of the asset or the lease term. Lease terms typically range from three to ten years. When a decision is made to abandon property, plant, and equipment prior to the end of the previously estimated useful life, depreciation or amortization estimates are revised to reflect the use of the asset over the shortened estimated useful life. At the time of disposal, the cost of assets sold or retired and the related accumulated depreciation or amortization are removed from the accounts and any resulting loss is included in the Consolidated Statements of Operations. Property, plant, and equipment and operating right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset groups may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows, which is at the retail store level for store-related assets. If the estimated undiscounted future cash flows related to the property, plant, and equipment and operating right-of-use assets are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, as further defined below in “Fair Value of Financial Instruments.” Routine maintenance and repair costs are expensed as incurred. The Company capitalizes certain costs incurred in connection with acquiring, modifying, and installing internal-use software. Capitalized costs are included in property, plant, and equipment and are amortized over three to five years . Software costs that do not meet capitalization criteria are expensed as incurred. |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers , was adopted on a modified retrospective basis on February 4, 2018. Accordingly, prior year financial information contained herein was not recast and is reported under the prior accounting standard. Refer to Note 3 herein for additional information. Vera Bradley and Pura Vida product sales to customers, including amounts billed to customers for shipping fees, as well as royalties from licensing arrangements related to the Vera Bradley brand, are included in net revenues. Costs related to shipping of product are classified in cost of sales in the Consolidated Statements of Operations. The Company has elected to treat shipping and handling activities that occur after the customer has obtained control of a good as an activity to fulfill the promise to transfer the product rather than as an additional promised service. Net revenues exclude sales taxes collected from customers and remitted to governmental authorities from the transaction price. Revenue from the sale of the Company’s products is recognized when control of the promised goods or services is transferred to customers, in the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue is recognized using the five-step model identified in ASC Topic 606. These steps are: (i) identify the contract with the customer; (ii) identify the performance obligations; (iii) determine the transaction price; (iv) allocate the transaction price to each performance obligation; and (v) recognize revenue as the performance obligations are satisfied. The Company collects payment at the point of sale for Vera Bradley full-line and factory outlet store transactions, upon shipment for Vera Bradley e-commerce transactions, and upon purchase for Pura Vida e-commerce transactions. The Company generally collects payment in arrears in accordance with established payment terms for each customer within the VB Indirect segment and for Pura Vida wholesale retailers. Historical experience provides the Company the ability to reasonably estimate the amount of product sales that customers will return. Product returns are often resalable through multiple channels. Additionally, the Company reserves for customer allowances for certain VB Indirect retailers based upon various contract terms and other potential product credits granted to VB Indirect retailers. The returns and credits reserve and the related activity for each fiscal year presented were as follows (in thousands): Balance at Beginning of Year Provision Charged to Net Revenues Allowances Taken / Written Off Balance at End of Year Fiscal year ended February 1, 2020 $ 1,911 $ 15,467 $ (16,016 ) $ 1,362 Fiscal year ended February 2, 2019 2,695 17,946 (18,730 ) 1,911 Fiscal year ended February 3, 2018 5,360 23,504 (26,169 ) 2,695 The Company establishes an allowance for doubtful accounts based on historical experience and customer-specific identification and believes that collections of receivables, net of the allowance for doubtful accounts, are reasonably assured. The allowance for doubtful accounts was approximately $0.5 million and $0.3 million as of February 1, 2020 and February 2, 2019 , respectively. |
Cost of Sales | Cost of Sales Cost of sales includes material and labor costs, freight, inventory shrinkage, operating lease costs, duty, and other operating expenses, including depreciation of the Vera Bradley distribution center and equipment. Costs and related expenses to purchase and distribute the products are recorded as cost of sales when the related revenues are recognized. |
Operating Leases and Tenant-Improvement Allowances | Operating Leases ASC Topic 842, Leases , was adopted on a modified retrospective basis on February 3, 2019. Accordingly, prior year financial information contained herein was not recast and is reported under the prior accounting standard. This comparability primarily impacts the Company's Consolidated Balance Sheets. Refer to Note 4 herein for additional information regarding the Company's leases. The Company recognizes lease liabilities at the lease commencement date based upon the present value of the remaining lease payments. Operating right-of-use assets are based on the lease liability adjusted for prepaid rent, deferred rent, and tenant allowances received from certain of the Company’s landlords, primarily for its retail store locations. Operating lease liabilities are amortized based upon the effective interest method. Operating right-of-use assets are amortized based upon the straight-line lease expense less interest on the lease liability. Operating lease expense is recognized on a straight-line basis over the lease term. Variable rent expense is recognized in the period incurred. Operating right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows, which is at the retail store level for store-related assets. If the estimated undiscounted future cash flows related to the operating right-of-use assets are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, as further defined below in “Fair Value of Financial Instruments.” |
Store Pre-Opening, Occupancy, and Operating Costs | Store Pre-Opening, Occupancy, and Operating Costs The Company charges costs associated with the opening of new stores to selling, general, and administrative expenses as incurred. Selling, general, and administrative expenses also include store operating costs, store employee compensation, and store occupancy and supply costs. |
Business Combination | Business Combination The Company acquired a majority interest in Pura Vida on July 16, 2019. In connection with a business combination, the Company records the identifiable assets acquired, liabilities assumed, contingent consideration liabilities, if any, and any noncontrolling interest in the acquiree at their acquisition-date fair values. Goodwill is measured indirectly as the excess of the sum of (1) the consideration transferred (including contingent consideration, if any) and (2) the fair value of any noncontrolling interest in the acquiree over the net assets acquired and liabilities assumed. Refer to Note 16 herein for additional information. These fair value assessments require management judgment and include the use of significant estimates and assumptions including future cash flows, discount and other market rates, and asset lives, among other items. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Upon an acquisition, the Company records the fair value of the identifiable intangible assets. As of February 1, 2020 , these items consisted of the Pura Vida brand, customer relationships, and non-competition agreements. Assets that are determined to have an indefinite life, including goodwill and the Pura Vida Brand, are not amortized but are assessed for impairment at least annually or whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. Definite-lived intangible assets, including customer relationships and non-competition agreements, are amortized over their estimated useful lives and are also subject to impairment testing, similar to the Company’s long-lived assets. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest On July 16, 2019, as contemplated by the Interest Purchase Agreement, the Company and certain of its subsidiaries and the owners of the remaining twenty-five percent ( 25% ) ownership interest in Pura Vida (the “Sellers”) which was not acquired by the Company (the “Remaining Pura Vida Interest”) entered into a Put/Call Agreement (the “Put/Call Agreement”). Pursuant to the Put/Call Agreement, and subject to the terms and conditions thereof, the Sellers have the right to sell all of the Remaining Pura Vida Interest to the Company, and the Company has the right to purchase all of the Remaining Pura Vida Interests from Sellers, in each case generally at any time following the fifth anniversary of the closing date of the transaction until the tenth anniversary thereof. The purchase price for any Remaining Pura Vida Interest put to, or called by, the Company will be determined based on the arithmetic average of a multiple of adjusted EBITDA of Pura Vida and a multiple of adjusted EBITDA of the Company, as defined in the Put/Call Agreement, over the twelve-month period ending on the last day of the month immediately preceding the month in which an exercise notice is delivered by a relevant party. In the event of a change in control of the Company, the parties may exercise a portion of their put and call rights prior to the fifth anniversary of the closing date (as defined in the Put/Call Agreement). As a result of this redemption feature, the Company recorded the noncontrolling interest as redeemable and classified it in temporary equity within its Consolidated Balance Sheets initially at its acquisition-date fair value. The noncontrolling interest is adjusted each reporting period for income (or loss) attributable to the noncontrolling interest. A measurement period adjustment, if any, is then made to adjust the noncontrolling interest to the higher of the redemption value or carrying value each reporting period. These adjustments are recognized through retained earnings and are not reflected in net income or net income attributable to Vera Bradley, Inc. When calculating earnings per share attributable to Vera Bradley, Inc., the Company adjusts net income attributable to Vera Bradley, Inc. for the measurement period adjustment to the extent the redemption value exceeds the fair value of the noncontrolling interest on a cumulative basis. The fair value of the noncontrolling interest is estimated using a combination of the income approach, a discounted cash flow analysis, and the market approach, utilizing the guideline company method. The reporting unit’s discounted cash flow analysis requires significant management judgment with respect to revenue, total direct costs, selling, general, and administrative expenses, capital expenditures, and the selection and use of an appropriate discount rate. The projected revenue and expense assumptions and capital expenditures are based on our annual and long-term business plans. Discount rates reflect market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. Refer to Note 17 herein for additional information regarding the redeemable noncontrolling interest. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation using 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 stock-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 recognizes this expense, net of estimated forfeitures, on a straight-line basis over the requisite service period. |
Other Income and Advertising Costs | Other Income and Advertising Costs The Company expenses advertising costs at the time the promotion first appears in media, in stores, or on the website, and includes those costs in selling, general, and administrative expenses in the Consolidated Statements of Operations. The Company classifies the related recovery of a portion of such costs from VB Indirect retailers as other income in the Consolidated Statements of Operations. Total advertising expense was as follows (in thousands): Fiscal year ended February 1, 2020 (1) $ 46,460 Fiscal year ended February 2, 2019 27,488 Fiscal year ended February 3, 2018 26,953 (1) Increase primarily as a result of the inclusion of Pura Vida beginning July 17, 2019. Total recovery from VB Indirect retailers was as follows (in thousands): Fiscal year ended February 1, 2020 $ 118 Fiscal year ended February 2, 2019 80 Fiscal year ended February 3, 2018 367 |
Debt-Issuance Costs | Debt-Issuance Costs Unamortized debt-issuance costs totaled $0.3 million as of February 1, 2020 , and $0.4 million as of February 2, 2019 , and are included in other assets on the Consolidated Balance Sheets. The Company entered into an asset-based credit agreement on September 7, 2018 and recorded an immaterial amount of expense and debt-issuance costs related to the agreement. Refer to Note 6 herein for additional information. Amortization expense of $0.1 million , $0.3 million , and $0.2 million is included in interest income, net in the Consolidated Statements of Operations for the fiscal years ended February 1, 2020 , February 2, 2019 , and February 3, 2018 , respectively. |
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, accounts receivable, other current assets, and accounts payable as of February 1, 2020 and February 2, 2019 , approximated their fair values. |
Income Taxes | Income Taxes The Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between the book and tax bases of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted rates in effect for the years in which the differences are expected to reverse, and recognizes the effect of a change in enacted rates in the period of enactment. As such, the Company recognized additional income tax expense of $2.1 million during fiscal 2018 upon the enactment of the Tax Cuts and Jobs Act. Refer to Note 7 herein for additional information. The Company establishes liabilities for uncertain positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. The Company includes in income tax expense any interest and penalties related to uncertain tax positions. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , which increases transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and disclosing key information about leasing arrangements. This guidance is effective for interim and annual periods beginning on or after December 15, 2018. In July 2018, the FASB issued ASU 2018-11 for targeted improvements, including the option of allowing entities to initially apply the new leases standard at the adoption date (February 3, 2019 for the Company) and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted the standard using this adoption method on February 3, 2019 (the beginning of fiscal 2020) and recorded a $0.2 million beginning retained earnings adjustment. In addition, the Company evaluated the usage of applicable transition relief practical expedients at the adoption date as follows: Practical Expedient Package The Company elected the practical expedient package and did not re-assess whether a contract was or contained a lease; did not re-assess lease classification as an operating or financing lease for expired or existing leases; and did not re-assess whether a lease contained initial direct costs for expired or existing leases. Hindsight The Company did not elect the hindsight practical expedient, which allows for hindsight when assessing the lease term and impairment of right-of-use assets. The Company has operating leases at all of its retail stores; therefore, the adoption of this standard resulted in a material increase of assets and liabilities on the Company’s Consolidated Balance Sheets. The opening balance of its operating lease liabilities was approximately $149 million and its operating right-of-use assets were approximately $126 million at transition on February 3, 2019. The Consolidated Statements of Cash Flows also had material presentation changes within operating activities upon adoption. The adoption of this standard had no impact on the Company's Consolidated Statements of Operations. Refer to Note 4 herein for additional information regarding ASC Topic 842, including details of practical expedients related to policy elections. In August 2018, the FASB issued ASU 2018-15, Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing or expensing implementation costs in hosting arrangements (regardless of whether they convey a license to the hosted software) with capitalizing or expensing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual periods beginning on or after December 15, 2019 (fiscal 2021). Early adoption is permitted, and the amendments can be adopted either retrospectively or prospectively. The Company adopted this standard at the beginning of its fiscal 2020 (February 3, 2019) on a prospective basis. The adoption of this standard had an immaterial impact on the Company's Consolidated Financial Statements. In January 2017 the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years (fiscal 2021). Early adoption is permitted. The Company early adopted this standard during the third quarter of fiscal 2020, with no impact on its consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements . The amendments in this update remove, modify, and add certain disclosure requirements to ASC 820, Fair Value Measurement . This guidance is effective for interim and annual periods beginning on or after December 15, 2019 (fiscal 2021). Early adoption is permitted, and certain amendments are to be adopted prospectively for only the most recent annual or interim period presented in the initial year of adoption or retrospectively. The Company is currently evaluating the impact of the guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update remove certain exceptions to the general principals in Topic 740, as well as simplify GAAP for certain areas and improve consistency within the topic. This guidance is effective for interim and annual periods beginning on or after December 15, 2020 (fiscal 2022). Early adoption is permitted, with all amendments required to be adopted in the same period. The Company is currently evaluating the impact of the guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Components of Inventories | The components of inventories were as follows: February 1, February 2, Raw materials (1) $ 1,056 $ — Finished goods 122,550 91,581 Total inventories $ 123,606 $ 91,581 (1) Relates solely to Pura Vida operations. |
Schedule of Estimated Useful Lives | Property, plant, and equipment are carried at cost and depreciated or amortized over the following estimated useful lives using the straight-line method: Buildings and building improvements .............................................. 39.5 years Land improvements ........................................................................... 5 – 15 years Furniture and fixtures, and leasehold improvements ........................ 3 – 10 years Equipment ......................................................................................... 7 years Vehicles ............................................................................................. 5 years Computer equipment and software ................................................... 3 – 5 years |
Schedule of Returns and Credits Reserve and Related Activity | The returns and credits reserve and the related activity for each fiscal year presented were as follows (in thousands): Balance at Beginning of Year Provision Charged to Net Revenues Allowances Taken / Written Off Balance at End of Year Fiscal year ended February 1, 2020 $ 1,911 $ 15,467 $ (16,016 ) $ 1,362 Fiscal year ended February 2, 2019 2,695 17,946 (18,730 ) 1,911 Fiscal year ended February 3, 2018 5,360 23,504 (26,169 ) 2,695 |
Schedule of Total Advertising Expense | Total advertising expense was as follows (in thousands): Fiscal year ended February 1, 2020 (1) $ 46,460 Fiscal year ended February 2, 2019 27,488 Fiscal year ended February 3, 2018 26,953 (1) Increase primarily as a result of the inclusion of Pura Vida beginning July 17, 2019. |
Schedule of Total Recovery from Indirect Retailers | Total recovery from VB Indirect retailers was as follows (in thousands): Fiscal year ended February 1, 2020 $ 118 Fiscal year ended February 2, 2019 80 Fiscal year ended February 3, 2018 367 |
Schedule of Fair Value Measurement, Assets Measured on Recurring Basis | The following table details the fair value measurements of the Company’s investments as of February 1, 2020 and February 2, 2019 (in thousands): Level 1 Level 2 Level 3 February 1, 2020 February 2, 2019 February 1, 2020 February 2, 2019 February 1, 2020 February 2, 2019 Cash equivalents (1) $ 27 $ 2,169 $ 2,198 $ 6,493 $ — $ — Short-term investments: U.S. corporate debt securities — — 3,435 5,769 — — Commercial paper — — 2,489 498 — — Municipal securities — — 1,594 4,190 — — Non-U.S. corporate debt securities — — 1,136 5,808 — — U.S. asset-backed securities — — 323 — — — U.S. treasury securities — 3,116 — — — — Long-term investments: U.S. corporate debt securities — — 5,613 9,499 — — U.S. asset-backed securities — — 5,498 7,169 — — Non-U.S. corporate debt securities — — 2,409 4,675 — — Other foreign securities — — 810 — — — Non-U.S. asset-backed securities — — 582 1,127 — — Municipal securities — — — 1,265 — — (1) Cash equivalents include commercial paper and a money market fund that have a maturity of three months or less at the date of purchase. Due to their short maturity, the Company believes the carrying value approximates fair value. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | February 2, 2019 As Reported Adjustments Balances Under Prior U.S. GAAP Consolidated Balance Sheet Accounts receivable, net $ 15,604 $ (2,497 ) $ 13,107 Inventories 91,581 906 92,487 Income taxes receivable 809 265 1,074 Total current assets 252,468 (1,326 ) 251,142 Deferred income taxes 6,724 106 6,830 Total assets 362,148 (1,220 ) 360,928 Other accrued liabilities 13,482 (156 ) 13,326 Total current liabilities 43,556 (156 ) 43,400 Total liabilities 67,445 (156 ) 67,289 Retained earnings 291,994 (1,064 ) 290,930 Total shareholders’ equity 294,703 (1,064 ) 293,639 Total liabilities and shareholders’ equity 362,148 (1,220 ) 360,928 Fifty-Two Weeks Ended February 2, 2019 As Reported Adjustments Amounts Under Prior U.S. GAAP Consolidated Statement of Operations Net revenues $ 416,097 $ (1,478 ) $ 414,619 Cost of sales 177,510 (655 ) 176,855 Gross profit (loss) 238,587 (823 ) 237,764 Operating income (loss) 27,101 (823 ) 26,278 Income (loss) before income taxes 28,226 (823 ) 27,403 Income tax expense (benefit) 7,469 (213 ) 7,256 Net income (loss) 20,757 (610 ) 20,147 Fifty-Two Weeks Ended February 2, 2019 As Reported Adjustments Amounts Under Prior U.S. GAAP Consolidated Statement of Cash Flows Cash flows from operating activities Net income (loss) $ 20,757 $ (610 ) $ 20,147 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes (1,497 ) 52 (1,445 ) Changes in assets and liabilities: Accounts receivable 438 1,837 2,275 Inventories (3,994 ) (655 ) (4,649 ) Income taxes 4,933 (265 ) 4,668 Accrued and other liabilities 94 (359 ) (265 ) |
Disaggregation of Revenue | The following presents the Company's net revenues disaggregated by product category for the fifty-two weeks ended February 1, 2020 and February 2, 2019 (in thousands): Fifty-Two Weeks Ended February 1, 2020 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 136,509 $ 41,206 $ — $ 177,715 Travel 91,732 16,712 — 108,444 Accessories 75,162 15,470 64,568 155,200 Home 32,987 2,703 — 35,690 Other 11,094 (1) 5,720 (2) 1,349 (3) 18,163 Total net revenues $ 347,484 (4) $ 81,811 (5) $ 65,917 (4) $ 495,212 (1) Primarily includes net revenues from apparel/footwear, stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, apparel/footwear, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $78.0 million of net revenues related to product sales recognized at a point in time and $3.8 million of net revenues related to sales-based royalties recognized over time. Fifty Two Weeks Ended February 2, 2019 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 128,255 $ 42,626 $ — $ 170,881 Travel 87,746 19,767 — 107,513 Accessories 75,751 17,043 — 92,794 Home 26,846 2,757 — 29,603 Other 9,436 (1) 5,870 (2) — 15,306 Total net revenues $ 328,034 (3) $ 88,063 (4) $ — $ 416,097 (1) Primarily includes net revenues from stationery, apparel/footwear, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, apparel/footwear, and merchandising. (3) Net revenues were related to product sales recognized at a point in time. (4) $84.5 million of net revenues related to product sales recognized at a point in time and $3.6 million of net revenues related to sales-based royalties recognized over time. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases, Practical Expedients | The Company has elected the following practical expedients as policy elections upon the adoption of ASC Topic 842. Short-Term Leases The Company elected to exclude leases with a term of 12 months or less from recognition on the balance sheet for all leases. Not Separating Lease and Nonlease Components The Company elected to combine lease and nonlease components and recognize as a single lease component for all leases. |
Schedule of Lease, Cost | ease expense is recorded within cost of sales for the Asia sourcing office and certain equipment leases and within selling, general, and administrative expenses for all other leases, including retail store leases, in the Company's Consolidated Statement of Operations for the fiscal year ended February 1, 2020 (in thousands): Fifty-Two Weeks Ended February 1, 2020 Operating lease cost $ 28,808 Variable lease cost 9,266 Short-term lease cost 576 Total lease cost $ 38,650 |
Supplemental operating cash flow information | Supplemental operating cash flow information was as follows (in thousands): Fifty-Two Weeks Ended February 1, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 32,702 Right-of-use assets increase as a result of new and modified operating lease liabilities, net $ 10,850 |
Maturity Analysis of Operating Lease Liabilities | Maturities of the Company's operating lease liabilities (undiscounted) reconciled to its lease liability as of February 1, 2020 were as follows (in thousands): Operating Leases Fiscal 2021 $ 27,531 Fiscal 2022 29,215 Fiscal 2023 25,268 Fiscal 2024 22,054 Fiscal 2025 19,059 Thereafter 34,934 Total remaining obligations 158,061 Less: Interest (22,939 ) Present value of lease liabilities $ 135,122 |
Schedule of Future Minimum Rental Payments for Operating Leases | Under the prior accounting standard (ASC Topic 840), the maturities of minimum lease payments as disclosed in the Company's Annual Report on Form 10-K as of the fiscal year ended February 2, 2019 were as follows: Operating Leases Fiscal 2020 $ 32,658 Fiscal 2021 32,017 Fiscal 2022 29,707 Fiscal 2023 25,933 Fiscal 2024 22,250 Thereafter 45,099 Total remaining minimum lease payments $ 187,664 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following (in thousands): February 1, February 2, Land and land improvements $ 5,981 $ 5,981 Building and building improvements 46,233 46,233 Furniture, fixtures, leasehold improvements, computer equipment and software 116,238 112,316 Equipment and vehicles 21,205 21,002 Construction in progress 6,002 1,699 195,659 187,231 Less: Accumulated depreciation and amortization (122,632 ) (109,280 ) Property, plant, and equipment, net $ 73,027 $ 77,951 |
Depreciation and Amortization Expense Associated with Property, Plant, and Equipment | Depreciation and amortization expense associated with property, plant, and equipment, excluding impairment charges (in thousands): Fiscal year ended February 1, 2020 $ 18,447 Fiscal year ended February 2, 2019 16,540 Fiscal year ended February 3, 2018 19,570 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense were as follows (in thousands): February 1, February 2, February 3, Current: Federal $ 4,509 $ 7,020 $ 488 Foreign 681 610 364 State 989 1,336 (628 ) 6,179 8,966 224 Deferred: Federal (805 ) (1,663 ) 7,476 State (59 ) 166 678 (864 ) (1,497 ) 8,154 Total income tax expense $ 5,315 $ 7,469 $ 8,378 |
Schedule of Company's Income Before Income Taxes | A breakdown of the Company’s income before income taxes is as follows (in thousands): February 1, February 2, February 3, Domestic $ 16,267 $ 24,426 $ 13,666 Foreign 4,292 3,800 1,728 Total income before income taxes $ 20,559 $ 28,226 $ 15,394 |
Schedule of Reconciliation of Income Tax Expense to Amount Computed at Federal Statutory Rate | A reconciliation of income tax expense to the amount computed at the federal statutory rate is as follows (in thousands): February 1, February 2, February 3, Federal taxes at statutory rate $ 4,317 21.0 % $ 5,927 21.0 % $ 5,067 32.9 % State and local income taxes, net of federal benefit 752 3.7 1,203 4.3 665 4.3 Impact related to redeemable noncontrolling interest 168 0.8 — — — — Shortfall from stock-based compensation 63 0.3 101 0.4 1,111 7.2 Impact of foreign rate differential (210 ) (1.0 ) (188 ) (0.7 ) (247 ) (1.6 ) Change in uncertain tax positions (17 ) (0.1 ) (17 ) (0.1 ) (632 ) (4.1 ) Change in U.S. tax rate — — — — 2,026 13.2 Deemed mandatory repatriation — — — — 345 2.2 Other 242 1.2 443 1.6 43 0.3 Total income tax expense $ 5,315 25.9 % $ 7,469 26.5 % $ 8,378 54.4 % |
Schedule of Components of Deferred Taxes Assets and Liabilities. | Significant components of deferred tax assets and liabilities were as follows (in thousands): February 1, February 2, Deferred tax assets: Operating lease liabilities $ 36,209 $ — Compensation and benefits 3,021 2,912 Inventories 1,317 1,753 Deferred credits from landlords — 6,922 Other 1,890 1,241 Total deferred tax assets 42,437 12,828 Deferred tax liabilities: Operating lease assets (30,620 ) — Property, plant, and equipment (2,656 ) (3,859 ) Other (1,505 ) (2,245 ) Total deferred tax liabilities (34,781 ) (6,104 ) Net deferred tax assets $ 7,656 $ 6,724 |
Schedule of Reconciliation of Beginning and Ending Gross Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): February 1, February 2, February 3, Beginning balance $ 83 $ 104 $ 877 Net increases in unrecognized tax benefits as a result of current year activity 11 44 — Lapse of statute of limitations (35 ) (65 ) (106 ) Net increases in unrecognized tax benefits as a result of prior year activity — — 210 Reductions for tax positions of prior years — — (877 ) Ending balance $ 59 $ 83 $ 104 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted-Stock Awards and Restricted-Stock Units | The following table summarizes information about restricted-stock units as of and for the year ended February 1, 2020 (units in thousands): Time-based Restricted Stock Units Performance-based Restricted Stock Units Number of Units Weighted- Average Grant Date Fair Value (per unit) Number of Units Weighted- Average Grant Date Fair Value (per unit) Nonvested units outstanding at February 2, 2019 473 $ 11.75 442 $ 11.38 Granted 246 12.94 171 13.10 Change due to performance condition achievement — — 111 10.59 Vested (277 ) 12.32 (50 ) 19.62 Forfeited (9 ) 13.17 (3 ) 9.97 Nonvested units outstanding at February 1, 2020 433 $ 12.03 671 $ 11.08 |
401(k) Profit Sharing Plan an_2
401(k) Profit Sharing Plan and Trust (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Disclosure Profit Sharing Plan And Trust Additional Information [Abstract] | |
Schedule of Total Company Contributions to Plan | Total Company contributions to the plan were as follows (in thousands): Fiscal year ended February 1, 2020 $ 1,732 Fiscal year ended February 2, 2019 1,661 Fiscal year ended February 3, 2018 1,533 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related-Party Transactions Associated Expense | The associated expense for contributions to the Foundation, which is included in selling, general, and administrative expenses, was as follows (in thousands): Fiscal year ended February 1, 2020 $ 101 Fiscal year ended February 2, 2019 144 Fiscal year ended February 3, 2018 140 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Net Income Per Share | The components of basic and diluted net income per share are as follows (in thousands, except per share data): Fiscal Year Ended February 1, February 2, February 3, Numerator: Net income $ 15,244 $ 20,757 $ 7,016 Less: Net loss attributable to redeemable noncontrolling interest (803 ) — — Net income attributable to Vera Bradley, Inc. $ 16,047 $ 20,757 $ 7,016 Denominator: Weighted-average number of common shares (basic) 33,983 35,222 35,925 Dilutive effect of stock-based awards 305 245 101 Weighted-average number of common shares (diluted) 34,288 35,467 36,026 Net income per share attributable to Vera Bradley, Inc.: Basic $ 0.47 $ 0.59 $ 0.20 Diluted $ 0.47 $ 0.59 $ 0.19 |
Vision 20_20 Restructuring and
Vision 20/20 Restructuring and Other Charges - (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | A summary of charges and related liabilities associated with the Vision 20/20 initiatives are as follows (in thousands): Asset Impairment Charges Strategic Consulting Charges Severance Charges Inventory-Related Charges Other Charges Total Fiscal 2018 charges $ 6,298 $ 4,649 $ 4,066 $ 935 $ 751 $ 16,699 Cash payments — (4,649 ) (2,508 ) — (411 ) (7,568 ) Non-cash charges (6,298 ) — — (935 ) (340 ) (7,573 ) Liability as of February 3, 2018 (1) $ — $ — $ 1,558 $ — $ — $ 1,558 (1) The remaining liability as of fiscal 2018 was associated with severance charges and is included within accrued employment costs in the Consolidated Balance Sheets. The remaining liability as of fiscal 2018 was paid during fiscal 2019 and there were no additional charges during fiscal 2019. The Company incurred the following Vision 20/20-related charges during the fiscal year ended February 3, 2018 (in thousands): Fiscal 2018 Statements of Income Line Item Total Expense Reportable Segment Unallocated Corporate Expenses SG&A Cost of Sales Direct Indirect Asset impairment charges (1) $ 6,298 $ — $ 6,298 $ 6,298 $ — $ — Strategic consulting charges (2) 4,649 — 4,649 — — 4,649 Severance charges 3,867 199 4,066 826 1,184 2,056 Inventory-related charges (3) — 935 935 — 935 — Other charges (4) 751 — 751 466 230 55 Total $ 15,565 $ 1,134 $ 16,699 (5) $ 7,590 $ 2,349 $ 6,760 (1) Refer to Note 5 herein for additional details (2) Consulting charges for the identification and implementation of Vision 20/20 initiatives (3) Inventory adjustments for the discontinuation of certain inventory categories (4) Includes a net lease termination charge ($399 recognized within the Direct segment) and accelerated depreciation charges and other charges ($67 recognized within the Direct segment, $230 recognized within the Indirect segment, and $55 recognized within corporate unallocated expenses) (5) After the associated tax benefit, the charges totaled $10.6 million |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Schedule of Investments [Abstract] | |
Summary Investment Holdings [Table Text Block] | The following table summarizes the Company’s short-term investments (in thousands): February 1, 2020 February 2, 2019 U.S. corporate debt securities $ 3,435 $ 5,769 Commercial paper 2,489 498 Municipal securities 1,594 4,190 Non-U.S. corporate debt securities 1,136 5,808 U.S. asset-backed securities 323 — U.S. treasury securities — 3,116 Total short-term investments $ 8,977 $ 19,381 The following table summarizes the Company’s long-term investments (in thousands): February 1, 2020 February 2, 2019 U.S. corporate debt securities $ 5,613 $ 9,499 U.S. asset-back securities 5,498 7,169 Non-U.S. corporate debt securities 2,409 4,675 Other foreign securities 810 — Non-U.S. asset-backed securities 582 1,127 Municipal securities — 1,265 Total long-term investments $ 14,912 $ 23,735 |
Acquisition of Pura Vida (Table
Acquisition of Pura Vida (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | in thousands Fair Value at Acquisition Date Measurement Period Adjustments Adjusted Fair Value at Acquisition Date Cash and cash equivalents $ 1,495 $ 1,495 Accounts receivable, net (5) 8,673 (993 ) 7,680 Inventories (1) 27,643 11 27,654 Prepaid expenses and other current assets 1,537 1,537 Operating right of use asset 1,250 1,250 Property, plant, and equipment, net 751 751 Goodwill (2) 41,310 2,944 44,254 Intangible asset, brand (3) 36,668 36,668 Other intangible assets (4) 25,283 (287 ) 24,996 Total assets acquired 144,610 1,675 146,285 Accounts payable 6,818 6,818 Accrued employment costs 2,351 2,351 Other accrued liabilities (5) 6,637 6,637 Operating lease liability 1,659 (22 ) 1,637 Total liabilities assumed 17,465 (22 ) 17,443 Less: Contingent consideration related to earn-out provision (6) (20,854 ) 756 (20,098 ) Redeemable noncontrolling interest (31,786 ) (424 ) (32,210 ) Cash acquired (1,495 ) (1,495 ) Total closing consideration amount, net of cash acquired (7) $ 73,010 $ 2,029 $ 75,039 (1) Includes an $8.3 million step-up adjustment which was recognized in cost of sales during the four months following the acquisition. Inventories were valued using the cost approach. The significant assumptions used for the valuation include inventory balances, projected gross and operating margins, and cost and time to dispose (sell) inventory on hand. (2) Refer to Notes 2 and 18 herein for additional information regarding goodwill. (3) The brand intangible asset was valued using the relief-from-royalty method. The significant assumptions used for the valuation include the royalty rate, estimated projected revenues, the long-term growth rate, and the discount rate. Refer to Note 18 herein for additional information regarding intangible assets. (4) Other intangible assets include customer relationships and non-competition agreements. Customer relationships were valued using the multi-period excess earnings method. Significant assumptions used for the valuation include projected cash flows, the discount rate, and the customer attrition rate. The non-competition agreements were valued using the with-or-without method. Significant assumptions used for the valuation include projected cash flows, probability of competition, impact of competition on business, and the discount rate. Refer to Note 18 herein for additional information regarding intangible assets. (5) Includes $4.1 million related to an indemnified liability. (6) Contingent consideration related to the earn-out provision was valued using a Monte Carlo simulation in order to forecast the value of the potential future payment. Significant assumptions used for the valuation include the discount rate, projected cash flows, and calculated volatility. (7) Of the total $75.0 million closing consideration, $1.0 million is due to be paid to the Company through a working capital adjustment. This $1.0 million is recorded within Accounts Receivable, net on the Consolidated Balance Sheet. Cash consideration paid during fiscal 2020 totaled $76.0 million. |
Schedule of Business Acquisition, Pro Forma Information | Fifty-Two Weeks Ended in thousands, except per share data February 1, February 2, Pro forma net revenues $ 538,576 $ 484,376 Pro forma net income 23,786 16,708 Pro forma net income attributable to Vera Bradley, Inc. 22,193 18,081 Pro forma basic net income per share attributable to Vera Bradley, Inc. $ 0.65 $ 0.51 Pro forma diluted net income per share attributable to Vera Bradley, Inc. $ 0.65 $ 0.51 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table details the carrying value of the Company’s intangible assets other than goodwill related to the acquisition of a majority interest in Pura Vida. The prior-year period did not include intangible assets or goodwill. The valuation of the intangible assets and goodwill is preliminary and additional adjustments may be reflected during the measurement period. February 1, 2020 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible assets Customer Relationships $ 24,208 $ (5,274 ) $ 18,934 Non-competition Agreements 788 (85 ) 703 Total definite-lived intangible assets 24,996 (5,359 ) 19,637 Indefinite-lived intangible asset Pura Vida Brand 36,668 — 36,668 Total intangible assets, excluding goodwill $ 61,664 $ (5,359 ) $ 56,305 (1) Amortization expense is recorded within the Pura Vida segment. |
Schedule of Indefinite-Lived Intangible Assets | The following table details the carrying value of the Company’s intangible assets other than goodwill related to the acquisition of a majority interest in Pura Vida. The prior-year period did not include intangible assets or goodwill. The valuation of the intangible assets and goodwill is preliminary and additional adjustments may be reflected during the measurement period. February 1, 2020 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible assets Customer Relationships $ 24,208 $ (5,274 ) $ 18,934 Non-competition Agreements 788 (85 ) 703 Total definite-lived intangible assets 24,996 (5,359 ) 19,637 Indefinite-lived intangible asset Pura Vida Brand 36,668 — 36,668 Total intangible assets, excluding goodwill $ 61,664 $ (5,359 ) $ 56,305 (1) Amortization expense is recorded within the Pura Vida segment. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The provisional amortization expense for intangible assets is as follows (in thousands): Amortization Expense Fiscal 2021 $ 9,009 Fiscal 2022 3,073 Fiscal 2023 3,073 Fiscal 2024 3,073 Fiscal 2025 1,409 Total $ 19,637 |
Schedule of Goodwill | Changes in goodwill for the fiscal year ended February 1, 2020 , were as follows (in thousands): Balance at February 2, 2019 $ — Goodwill at acquisition 41,310 Measurement period adjustment 2,944 Balance at February 1, 2020 $ 44,254 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of changes in redeemable noncontrolling interest | Changes in redeemable noncontrolling interest for the fifty-two weeks ended February 1, 2020 , were as follows (in thousands): Balance at February 2, 2019 $ — Fair value of noncontrolling interest at acquisition 31,786 Fair value measurement period adjustment 424 Net loss attributable to redeemable noncontrolling interest (803 ) Distributions to redeemable noncontrolling interest (1,789 ) Adjustment to redemption value 431 Balance at February 1, 2020 $ 30,049 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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): Fiscal Year Ended February 1, February 2, February 3, Segment net revenues: VB Direct $ 347,484 $ 328,034 $ 351,786 VB Indirect 81,811 88,063 102,862 Pura Vida 65,917 — — Total $ 495,212 $ 416,097 $ 454,648 Segment operating income (loss): VB Direct $ 68,505 $ 67,862 $ 60,979 VB Indirect 31,077 34,500 34,763 Pura Vida (3,179 ) — — Total $ 96,403 $ 102,362 $ 95,742 Reconciliation: Segment operating income $ 96,403 $ 102,362 $ 95,742 Less: Unallocated corporate expenses (76,929 ) (75,261 ) (80,761 ) Operating income $ 19,474 $ 27,101 $ 14,981 |
Net Revenues by Product Category | Net revenues by product categories are as follows (in thousands): Fiscal Year Ended February 1, February 2, February 3, Net revenues: Bags $ 177,715 $ 170,881 $ 184,773 Accessories 155,200 92,794 100,246 Travel 108,444 107,513 118,655 Home 35,690 29,603 30,819 Other 18,163 15,306 20,155 Total $ 495,212 $ 416,097 $ 454,648 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | The tables below set forth selected quarterly financial data for each of the last two fiscal years (in thousands, except per share data). Each of the quarters presented was thirteen weeks in duration. Fiscal Year Ended February 1, 2020 First Quarter (1) Second Quarter (2) Third Quarter (3) Fourth Quarter (4) (unaudited) (unaudited) (unaudited) (unaudited) Net revenues $ 91,003 $ 119,785 $ 127,501 $ 156,923 Gross profit 50,468 67,333 67,870 86,130 Operating (loss) income (3,645 ) 7,348 (1,476 ) 17,247 Net (loss) income (2,405 ) 5,718 (982 ) 12,913 Net (loss) income attributable to Vera Bradley, Inc. (2,405 ) 5,854 139 12,459 Basic net (loss) income per share attributable to Vera Bradley, Inc. (0.07 ) 0.17 0.00 0.37 Diluted net (loss) income per share attributed to Vera Bradley, Inc. (0.07 ) 0.17 0.00 0.37 (1) Includes $0.8 million ( $0.6 million after the associated tax benefit) for Pura Vida transaction costs. Refer to Note 16 herein for additional information. (2) Pura Vida operating results included beginning July 17, 2019, the first full business day following the acquisition of a majority interest. Includes $1.9 million of Pura Vida transaction costs, Pura Vida purchase accounting adjustments of $1.4 million (consisting of inventory step-up amortization and intangible asset amortization), and $0.7 million of technology re-platforming charges ( $2.9 million collectively attributable to Vera Bradley, Inc. after the associated tax benefit). Refer to Note 16 herein for additional information regarding the Pura Vida acquisition. (3) Includes Pura Vida purchase accounting adjustments of $10.5 million (consisting of inventory step-up amortization, intangible asset amortization, and accretion expense associated with the earn-out liability), and $1.1 million of technology re-platforming charges ( $6.8 million collectively attributable to Vera Bradley, Inc. after the associated tax benefit). Refer to Note 16 herein for additional information regarding the Pura Vida acquisition. (4) Includes $1.6 million related to incremental stock-based compensation associated with Pura Vida performance and Pura Vida transaction bonuses, $1.2 million of technology re-platforming charges, and Pura Vida purchase accounting net adjustments of $0.1 million (consisting of intangible asset amortization and inventory step-up amortization, partially offset by an adjustment to reduce the earn-out liability). The adjustments totaled $1.9 million collectively attributable to Vera Bradley, Inc. after the associated tax benefit. Refer to Note 16 herein for additional information regarding the Pura Vida acquisition. Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (unaudited) (unaudited) (unaudited) (unaudited) Net revenues $ 86,591 $ 113,625 $ 97,688 $ 118,193 Gross profit 48,616 65,740 57,152 67,079 Operating (loss) income (1,912 ) 12,016 5,343 11,654 Net (loss) income (1,370 ) 9,282 4,226 8,619 Net (loss) income attributable to Vera Bradley, Inc. (1,370 ) 9,282 4,226 8,619 Basic net (loss) income per share attributable to Vera Bradley, Inc. (0.04 ) 0.26 0.12 0.25 Diluted net (loss) income per share attributed to Vera Bradley, Inc. (0.04 ) 0.26 0.12 0.25 |
Description of the Company - Ad
Description of the Company - Additional Information (Detail) | 12 Months Ended | ||
Feb. 01, 2020StoreSegmentlocation | Feb. 02, 2019 | Feb. 03, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of reportable segments | Segment | 3 | ||
Number Of Full Line Stores | 88 | ||
Number of outlet stores | 63 | ||
Number of specialty retail locations | location | 2,200 | ||
Fiscal period duration | 364 days | 364 days | 371 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 03, 2019 | |
Significant Accounting Policies | ||||
Allowance for doubtful accounts | $ 500 | $ 300 | ||
Debt-issuance costs, net of accumulated amortization | 300 | 400 | ||
Amortization expense | 100 | 300 | $ 200 | |
Write off of debt issuance cost | 200 | |||
Impairment of intangible assets, finite-lived | 0 | 0 | 6,300 | |
Tax reform act of 2017, income tax expense (benefit) | $ 2,100 | |||
Retained earnings | 307,414 | 291,994 | ||
Operating lease liabilities | 135,122 | |||
Operating right-of-use assets | $ 114,790 | |||
Minimum | ||||
Significant Accounting Policies | ||||
Lease terms, years | 3 years | |||
Estimated useful lives, in years | 3 years | |||
Maximum | ||||
Significant Accounting Policies | ||||
Lease terms, years | 10 years | |||
Estimated useful lives, in years | 5 years | |||
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance In Effect Before And After Topic 606 | ||||
Significant Accounting Policies | ||||
Retained earnings | $ (1,064) | |||
Accounting Standards Update 2016-02 | ||||
Significant Accounting Policies | ||||
Retained earnings | $ 200 | |||
Operating lease liabilities | 149,000 | |||
Operating right-of-use assets | $ 126,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Allowance for doubtful accounts | $ 0.5 | $ 0.3 |
Building and building improvements | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 39 years 6 months | |
Equipment | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 7 years | |
Vehicles | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 5 years | |
Minimum | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 3 years | |
Minimum | Land improvements | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 5 years | |
Minimum | Furniture, fixtures, and leasehold improvements | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 3 years | |
Minimum | Computer equipment and software | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 3 years | |
Maximum | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 5 years | |
Maximum | Land improvements | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 15 years | |
Maximum | Furniture, fixtures, and leasehold improvements | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 10 years | |
Maximum | Computer equipment and software | ||
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property, Plant and Equipment | ||
Property, plant and equipment estimated useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Returns and Credit Reserve and Related Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Returns and Credits Reserve | |||
Balance at Beginning of Year | $ 1,911 | $ 2,695 | $ 5,360 |
Provision Charged to Net Revenues | 15,467 | 17,946 | 23,504 |
Allowances Taken / Written Off | (16,016) | (18,730) | (26,169) |
Balance at End of Year | $ 1,362 | $ 1,911 | $ 2,695 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Total Advertising Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Total advertising expense | $ 46,460 | $ 27,488 | $ 26,953 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Total Recovery from Indirect Retailers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Total recovery from indirect retailers | $ 118 | $ 80 | $ 367 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 8,977 | $ 19,381 |
Long-term investments | 14,912 | 23,735 |
Contingent consideration related to business acquisition | 18,448 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 27 | 2,169 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,198 | 6,493 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 5,613 | 9,499 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,489 | 498 |
Municipal Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 0 | 1,265 |
Debt Security, Corporate, Non-US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 2,409 | 4,675 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 5,498 | 7,169 |
Foreign Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 810 | 0 |
Estimate of Fair Value Measurement [Member] | Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,435 | 5,769 |
Estimate of Fair Value Measurement [Member] | Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Municipal Notes [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Municipal Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,594 | 4,190 |
Estimate of Fair Value Measurement [Member] | Municipal Notes [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Debt Security, Corporate, Non-US [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Debt Security, Corporate, Non-US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,136 | 5,808 |
Estimate of Fair Value Measurement [Member] | Debt Security, Corporate, Non-US [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 323 | 0 |
Estimate of Fair Value Measurement [Member] | Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 3,116 |
Estimate of Fair Value Measurement [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Non-U.S. Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | $ 582 | $ 1,127 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Components of Inventories (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Accounting Policies [Abstract] | ||
Raw materials | $ 1,056 | $ 0 |
Finished goods | 122,550 | 91,581 |
Total inventories | $ 123,606 | $ 91,581 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue, current | $ 3.9 | $ 1.6 |
Accounts receivable from contracts with customers, net of allowances | 16.3 | 14.1 |
Provision for doubtful accounts | $ 0.5 | $ 0.3 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Adoption of ASC 606 on impacted Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net | $ 24,290 | $ 15,604 |
Inventories | 123,606 | 91,581 |
Income taxes receivable | 1,043 | 809 |
Total current assets | 218,789 | 252,468 |
Deferred income taxes | 7,656 | 6,724 |
Total assets | 535,061 | 362,148 |
Other accrued liabilities | 13,850 | 13,482 |
Total current liabilities | 87,405 | 43,556 |
Total liabilities | 201,242 | 67,445 |
Retained earnings | 307,414 | 291,994 |
Total shareholders’ equity of Vera Bradley, Inc. | 303,770 | 294,703 |
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity | $ 535,061 | 362,148 |
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net | (2,497) | |
Inventories | 906 | |
Income taxes receivable | 265 | |
Total current assets | (1,326) | |
Deferred income taxes | 106 | |
Total assets | (1,220) | |
Other accrued liabilities | (156) | |
Total current liabilities | (156) | |
Total liabilities | (156) | |
Retained earnings | (1,064) | |
Total shareholders’ equity of Vera Bradley, Inc. | (1,064) | |
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity | (1,220) | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net | 13,107 | |
Inventories | 92,487 | |
Income taxes receivable | 1,074 | |
Total current assets | 251,142 | |
Deferred income taxes | 6,830 | |
Total assets | 360,928 | |
Other accrued liabilities | 13,326 | |
Total current liabilities | 43,400 | |
Total liabilities | 67,289 | |
Retained earnings | 290,930 | |
Total shareholders’ equity of Vera Bradley, Inc. | 293,639 | |
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity | $ 360,928 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Adoption of ASC 606 on impacted Condensed Consolidated Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | $ 156,923 | $ 127,501 | $ 119,785 | $ 91,003 | $ 118,193 | $ 97,688 | $ 113,625 | $ 86,591 | $ 495,212 | $ 416,097 | $ 454,648 |
Cost of sales | 223,411 | 177,510 | 200,639 | ||||||||
Gross profit | 86,130 | 67,870 | 67,333 | 50,468 | 67,079 | 57,152 | 65,740 | 48,616 | 271,801 | 238,587 | 254,009 |
Operating (loss) income | 17,247 | (1,476) | 7,348 | (3,645) | 11,654 | 5,343 | 12,016 | (1,912) | 19,474 | 27,101 | 14,981 |
Income (loss) before income taxes | 20,559 | 28,226 | 15,394 | ||||||||
Income tax expense | 5,315 | 7,469 | 8,378 | ||||||||
Net income (loss) | $ 12,459 | $ 139 | $ 5,854 | $ (2,405) | $ 8,619 | $ 4,226 | $ 9,282 | $ (1,370) | $ 16,047 | 20,757 | $ 7,016 |
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | (1,478) | ||||||||||
Cost of sales | (655) | ||||||||||
Gross profit | (823) | ||||||||||
Operating (loss) income | (823) | ||||||||||
Income (loss) before income taxes | (823) | ||||||||||
Income tax expense | (213) | ||||||||||
Net income (loss) | (610) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 414,619 | ||||||||||
Cost of sales | 176,855 | ||||||||||
Gross profit | 237,764 | ||||||||||
Operating (loss) income | 26,278 | ||||||||||
Income (loss) before income taxes | 27,403 | ||||||||||
Income tax expense | 7,256 | ||||||||||
Net income (loss) | $ 20,147 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Adoption of ASC 606 on impacted Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income attributable to Vera Bradley, Inc. | $ 12,459 | $ 139 | $ 5,854 | $ (2,405) | $ 8,619 | $ 4,226 | $ 9,282 | $ (1,370) | $ 16,047 | $ 20,757 | $ 7,016 |
Deferred income taxes | (864) | (1,497) | 8,154 | ||||||||
Accounts receivable | (1,013) | 438 | 7,322 | ||||||||
Inventories | (12,645) | (3,994) | 14,445 | ||||||||
Income taxes | (284) | 4,933 | (870) | ||||||||
Accrued and other liabilities | $ (7,933) | 94 | $ (5,406) | ||||||||
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income attributable to Vera Bradley, Inc. | (610) | ||||||||||
Deferred income taxes | 52 | ||||||||||
Accounts receivable | 1,837 | ||||||||||
Inventories | (655) | ||||||||||
Income taxes | (265) | ||||||||||
Accrued and other liabilities | (359) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income attributable to Vera Bradley, Inc. | 20,147 | ||||||||||
Deferred income taxes | (1,445) | ||||||||||
Accounts receivable | 2,275 | ||||||||||
Inventories | (4,649) | ||||||||||
Income taxes | 4,668 | ||||||||||
Accrued and other liabilities | $ (265) |
Revenue from Contracts with C_7
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 156,923 | $ 127,501 | $ 119,785 | $ 91,003 | $ 118,193 | $ 97,688 | $ 113,625 | $ 86,591 | $ 495,212 | $ 416,097 | $ 454,648 |
Bags | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 177,715 | 170,881 | 184,773 | ||||||||
Travel | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 108,444 | 107,513 | 118,655 | ||||||||
Accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 155,200 | 92,794 | 100,246 | ||||||||
Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 35,690 | 29,603 | 30,819 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 18,163 | 15,306 | $ 20,155 | ||||||||
Direct | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 347,484 | 328,034 | |||||||||
Direct | Bags | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 136,509 | 128,255 | |||||||||
Direct | Travel | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 91,732 | 87,746 | |||||||||
Direct | Accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 75,162 | 75,751 | |||||||||
Direct | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 32,987 | 26,846 | |||||||||
Direct | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 11,094 | 9,436 | |||||||||
Indirect | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 81,811 | 88,063 | |||||||||
Indirect | Transferred at Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 78,000 | 84,500 | |||||||||
Indirect | Transferred over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 3,800 | 3,600 | |||||||||
Indirect | Bags | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 41,206 | 42,626 | |||||||||
Indirect | Travel | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 16,712 | 19,767 | |||||||||
Indirect | Accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 15,470 | 17,043 | |||||||||
Indirect | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 2,703 | 2,757 | |||||||||
Indirect | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 5,720 | $ 5,870 | |||||||||
Pura Vida | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 65,917 | ||||||||||
Pura Vida | Accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 64,568 | ||||||||||
Pura Vida | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 1,349 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Feb. 01, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Weighted-average discount rate | 5.00% |
Operating Lease, lease not yet commenced | $ 3.1 |
Lease not yet commenced, term of contract | 10 years |
Weighted-average remaining lease term | 5 years 11 months 18 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Maximum | Retail Store [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Maximum | Other Property [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 7 years |
Leases - Total lease cost (Deta
Leases - Total lease cost (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 28,808 |
Variable lease cost | 9,266 |
Short-term lease cost | 576 |
Total lease cost | $ 38,650 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 32,702 |
Right-of-use assets increase as a result of new and modified operating lease liabilities, net | $ 10,850 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating Lease Liabilities (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Leases [Abstract] | |
Fiscal 2021 | $ 27,531 |
Fiscal 2022 | 29,215 |
Fiscal 2023 | 25,268 |
Fiscal 2024 | 22,054 |
Fiscal 2025 | 19,059 |
Thereafter | 34,934 |
Total remaining obligations | 158,061 |
Less: Interest | (22,939) |
Present value of lease liabilities | $ 135,122 |
Leases - Maturity Analysis of_2
Leases - Maturity Analysis of Operating Lease Liabilities under ASC Topic 840 (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
Fiscal 2020 | $ 32,658 |
Fiscal 2021 | 32,017 |
Fiscal 2022 | 29,707 |
Fiscal 2023 | 25,933 |
Fiscal 2024 | 22,250 |
Thereafter | 45,099 |
Total remaining minimum lease payments | $ 187,664 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Property, Plant and Equipment | |||
Property, plant, and equipment, gross | $ 195,659 | $ 187,231 | |
Less: Accumulated depreciation and amortization | (122,632) | (109,280) | |
Property, plant, and equipment, net | 73,027 | 77,951 | |
Impairment charge | 0 | 0 | $ 6,300 |
Land and land improvements | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, gross | 5,981 | 5,981 | |
Building and building improvements | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, gross | 46,233 | 46,233 | |
Furniture, fixtures, leasehold improvements and computer equipment | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, gross | 116,238 | 112,316 | |
Equipment and vehicles | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, gross | 21,205 | 21,002 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, gross | $ 6,002 | $ 1,699 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Schedule of Depreciation and Amortization Expense Associated with Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense, excluding impairment charges and discontinued operations | $ 18,447 | $ 16,540 | $ 19,570 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Detail) - Subsidiaries - New Credit Agreement - Revolving Credit Facility - USD ($) $ in Millions | Sep. 07, 2018 | Mar. 31, 2020 | Feb. 01, 2020 |
Line of Credit Facility [Line Items] | |||
Remaining borrowing capacity | $ 7.5 | $ 75 | |
Maximum borrowing capacity | 75 | ||
Increase (decrease) in aggregate credit facility principal amount | $ 25 | ||
Unused capacity, commitment fee percentage | 0.20% | ||
Debt instrument, fixed charge coverage ratio | 1 | ||
Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Remaining borrowing capacity | $ 75 | ||
Long-term line of credit | $ 60 | ||
Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 10.00% | ||
Minimum | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread | (1.00%) | ||
Minimum | Adjusted London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.00% | ||
Maximum | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread | (1.50%) | ||
Maximum | Adjusted London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Blended federal taxes at statutory rate, percentage | 21.00% | 21.00% | 32.90% | |
Unrecognized tax benefits | $ 59 | $ 83 | $ 104 | $ 877 |
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | 2,100 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense (Benefit) | 2,000 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 300 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) | $ 200 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 4,509 | $ 7,020 | $ 488 |
Current, Foreign | 681 | 610 | 364 |
Current, State | 989 | 1,336 | (628) |
Current, Total | 6,179 | 8,966 | 224 |
Deferred, Federal | (805) | (1,663) | 7,476 |
Deferred, State | (59) | 166 | 678 |
Deferred, Total | (864) | (1,497) | 8,154 |
Total income tax expense | $ 5,315 | $ 7,469 | $ 8,378 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 16,267 | $ 24,426 | $ 13,666 |
Foreign | 4,292 | 3,800 | 1,728 |
Income before income taxes | $ 20,559 | $ 28,226 | $ 15,394 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Expense to Amount Computed at Federal Statutory Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes at statutory rate | $ 4,317 | $ 5,927 | $ 5,067 |
Federal taxes at statutory rate, percentage | 21.00% | 21.00% | 32.90% |
State and local income taxes, net of federal benefit | $ 752 | $ 1,203 | $ 665 |
State and local income taxes, net of federal benefit, percentage | 3.70% | 4.30% | 4.30% |
Impact related to redeemable noncontrolling interest | $ 168 | $ 0 | $ 0 |
Impact related to redeemable noncontrolling interest, percentage | 0.80% | 0.00% | 0.00% |
Impact of foreign rate differential | $ (210) | $ (188) | $ (247) |
Impact of foreign rate differential, percentage | (1.00%) | (0.70%) | (1.60%) |
Change in uncertain tax positions | $ (17) | $ (17) | $ (632) |
Change in uncertain tax positions, percentage | (0.10%) | (0.10%) | (4.10%) |
Change in U.S. tax rate | $ 0 | $ 0 | $ 2,026 |
Change in U.S. tax rate, percentage | 0.00% | 0.00% | 13.20% |
Deemed mandatory repatriation | $ 0 | $ 0 | $ 345 |
Deemed mandatory repatriation, percentage | 0.00% | 0.00% | 2.20% |
Shortfall from stock-based compensation | $ 63 | $ 101 | $ 1,111 |
Shortfall from stock-based compensation, percentage | 0.30% | 0.40% | 7.20% |
Other | $ 242 | $ 443 | $ 43 |
Other, percentage | 1.20% | 1.60% | 0.30% |
Total income tax expense | $ 5,315 | $ 7,469 | $ 8,378 |
Total income tax expense, percentage | 25.90% | 26.50% | 54.40% |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Operating lease liabilities | $ 36,209 | |
Deferred credits from landlords | 0 | $ 6,922 |
Compensation and benefits | 3,021 | 2,912 |
Inventories | 1,317 | 1,753 |
Other | 1,890 | 1,241 |
Total deferred tax assets | 42,437 | 12,828 |
Deferred tax liabilities: | ||
Operating lease assets | (30,620) | |
Property, plant, and equipment | (2,656) | (3,859) |
Other | (1,505) | (2,245) |
Total deferred tax liabilities | (34,781) | (6,104) |
Net deferred tax assets | $ 7,656 | $ 6,724 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Beginning and Ending Gross Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 83 | $ 104 | $ 877 |
Net increases in unrecognized tax benefits as a result of current year activity | 11 | 44 | 0 |
Lapse of statute of limitations | (35) | (65) | (106) |
Net increases in unrecognized tax benefits as a result of prior year activity | 0 | 0 | 210 |
Reductions for tax positions of prior years | 0 | 0 | (877) |
Ending balance | $ 59 | $ 83 | $ 104 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020USD ($)shares | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Oct. 30, 2010shares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ | $ 5.9 | $ 4.9 | $ 3.1 | |
Time-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted-stock awards/units granted in period (in shares) | shares | 246,000 | |||
Performance-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted-stock awards/units granted in period (in shares) | shares | 171,000 | |||
2010 Equity and Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Issuance of common stock shares | shares | 3,964,026 | 6,076,001 | ||
2010 Equity and Incentive Plan | Restricted-Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted-stock awards/units granted in period (in shares) | shares | 416,944 | |||
Restricted-stock awards/units with an aggregate grant-date fair value | $ | $ 5.4 | |||
Restricted stock vesting period | 1 year | |||
Unrecognized compensation cost | $ | $ 6.4 | |||
Share-based compensation over a weighted average period | 1 year 3 months 18 days | |||
Share-based compensation fair value restrictions vested | $ | $ 4.1 | |||
2010 Equity and Incentive Plan | Time-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award conversion ratio to common stock | 1 | |||
2010 Equity and Incentive Plan | Performance-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock vesting period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted-Stock Awards and Restricted-Stock Units (Detail) shares in Thousands | 12 Months Ended |
Feb. 01, 2020$ / sharesshares | |
Time-based Restricted Stock Units | |
Number of Units | |
Nonvested units outstanding, beginning balance (in shares) | shares | 473 |
Granted, Number of Units (in shares) | shares | 246 |
Change due to performance condition achievement, Number of Units (in shares) | shares | 0 |
Vested, Number of Units (in shares) | shares | (277) |
Forfeited, Number of Units (in shares) | shares | (9) |
Nonvested units outstanding, ending balance (in shares) | shares | 433 |
Weighted- Average Grant Date Fair Value (per unit) | |
Weighted-Average Grant Date Fair Value (per unit), beginning balance (in dollars per share) | $ / shares | $ 11.75 |
Granted, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 12.94 |
Change due to performance condition achievement, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 0 |
Vested, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 12.32 |
Forfeited, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 13.17 |
Weighted-Average Grant Date Fair Value (per unit), ending balance (in dollars per share) | $ / shares | $ 12.03 |
Performance-based Restricted Stock Units | |
Number of Units | |
Nonvested units outstanding, beginning balance (in shares) | shares | 442 |
Granted, Number of Units (in shares) | shares | 171 |
Change due to performance condition achievement, Number of Units (in shares) | shares | 111 |
Vested, Number of Units (in shares) | shares | (50) |
Forfeited, Number of Units (in shares) | shares | (3) |
Nonvested units outstanding, ending balance (in shares) | shares | 671 |
Weighted- Average Grant Date Fair Value (per unit) | |
Weighted-Average Grant Date Fair Value (per unit), beginning balance (in dollars per share) | $ / shares | $ 11.38 |
Granted, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 13.10 |
Change due to performance condition achievement, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 10.59 |
Vested, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 19.62 |
Forfeited, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 9.97 |
Weighted-Average Grant Date Fair Value (per unit), ending balance (in dollars per share) | $ / shares | $ 11.08 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought, value | $ 10 |
401(k) Profit Sharing Plan an_3
401(k) Profit Sharing Plan and Trust - Additional information (Detail) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Pension Plans, Postretirement and Other Employee Benefits | |||
Employer matching contribution, percentage of gross pay, initial match | 100.00% | ||
Employer matching contribution, initial match, percentage | 3.00% | ||
Employer matching contribution, percentage of gross pay, secondary match | 50.00% | ||
Employer matching contribution, secondary match, percentage | 2.00% | ||
Employer matching contribution, percentage | 4.00% | ||
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
Discretionary profit sharing payments | $ 0 | $ 0 | $ 0 |
401(k) Profit Sharing Plan an_4
401(k) Profit Sharing Plan and Trust - Schedule of Total Company Contributions to Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disclosure Profit Sharing Plan And Trust Additional Information [Abstract] | |||
Total company contribution to the plan, excluding discontinued operations | $ 1,732 | $ 1,661 | $ 1,533 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) $ / shares in Units, $ in Millions | Sep. 27, 2018 | Jun. 26, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Sep. 26, 2018 | Jun. 25, 2018 |
Related Party Transactions [Abstract] | |||||||
Related party transaction, amounts of transaction | $ 0.1 | ||||||
Liability associated with related-party transactions commitment | $ 0.3 | $ 0.3 | |||||
Related Party Transaction [Line Items] | |||||||
Shares acquired as part of share repurchase program (in shares) | 1,293,138 | 934,031 | |||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Shares acquired as part of share repurchase program (in shares) | 200,000 | 200,000 | 400,000 | ||||
Discounted price per share of shares acquired (in dollars per share) | $ 15.04 | $ 14.43 | |||||
Treasury stock, discount from the closing price (percentage) | 3.50% | 4.00% | |||||
Closing price (in dollars per share) | $ 15.58 | $ 15.03 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related-Party Transactions Associated Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Related Party Transactions [Abstract] | |||
Related Party Transaction, Due from (to) Related Party, Current | $ (300) | $ (300) | |
Related-party transactions associated expense included in selling, general, and administrative expenses | $ 101 | $ 144 | $ 140 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 12,913 | $ (982) | $ 5,718 | $ (2,405) | $ 8,619 | $ 4,226 | $ 9,282 | $ (1,370) | $ 15,244 | $ 20,757 | $ 7,016 |
Less: Net loss attributable to redeemable noncontrolling interest | (803) | 0 | 0 | ||||||||
Net income attributable to Vera Bradley, Inc. | $ 12,459 | $ 139 | $ 5,854 | $ (2,405) | $ 8,619 | $ 4,226 | $ 9,282 | $ (1,370) | $ 16,047 | $ 20,757 | $ 7,016 |
Weighted-average number of common shares (basic) (in shares) | 33,983 | 35,222 | 35,925 | ||||||||
Dilutive effect of stock-based awards (in shares) | 305 | 245 | 101 | ||||||||
Weighted-average number of common shares (diluted) (in shares) | 34,288 | 35,467 | 36,026 | ||||||||
Net income per share attributable to Vera Bradley, Inc.: | |||||||||||
Net income per share, basic (in dollars per share) | $ 0.47 | $ 0.59 | $ 0.20 | ||||||||
Net income per share, diluted (in dollars per share) | $ 0.37 | $ 0 | $ 0.17 | $ (0.07) | $ 0.25 | $ 0.12 | $ 0.26 | $ (0.04) | $ 0.47 | $ 0.59 | $ 0.19 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Nov. 29, 2018 | Dec. 08, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Shares acquired as part of share repurchase program (in shares) | 1,293,138 | 934,031 | |||
Average price per share of shares acquired (in dollars per share) | $ 13 | $ 12.58 | $ 8.47 | ||
Aggregate common stock repurchased | $ 11,320 | $ 16,261 | $ 7,908 | ||
Treasury stock, shares | 8,011,372 | ||||
Value of treasury stock | $ 104,159 | $ 92,839 | |||
The 2015 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount under share repurchase program | $ 50,000 | ||||
Shares acquired as part of share repurchase program (in shares) | 1,075,749 | ||||
Average price per share of shares acquired (in dollars per share) | $ 10.52 | ||||
Aggregate common stock repurchased | $ 11,300 | ||||
Remaining authorized repurchased amount | $ 35,800 | ||||
The 2018 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount under share repurchase program | $ 50,000 | ||||
Shares acquired as part of share repurchase program (in shares) | 320,296 | ||||
Average price per share of shares acquired (in dollars per share) | $ 8.86 | ||||
Aggregate common stock repurchased | $ 2,800 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | $ 16,700 | ||
Restructuring charges incurred, net of tax | 10,600 | ||
Tax reform act of 2017, income tax expense (benefit) | 2,100 | ||
Income tax expense (benefit) | $ 5,315 | $ 7,469 | 8,378 |
Impairment charge | 0 | 0 | 6,300 |
Selling, general and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 2,800 | ||
Restructuring charges incurred, net of tax | 1,700 | ||
Lease termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 300 | ||
Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | $ 0 | $ 0 | |
Severance charges | 4,066 | ||
Other restructuring costs | 751 | ||
Vision 20/20 | Selling, general and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 3,867 | ||
Other restructuring costs | 751 | ||
Corporate Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 2,500 | ||
Corporate Segment | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 2,056 | ||
Other restructuring costs | 55 | ||
Direct | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 826 | ||
Other restructuring costs | 466 | ||
Direct | Vision 20/20 | Lease termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Other restructuring costs | 399 | ||
Indirect | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 1,184 | ||
Other restructuring costs | $ 230 |
Vision 20_20 Restructuring an_2
Vision 20/20 Restructuring and Other Charges - Vision 20/20-related charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment charges | $ 0 | $ 0 | $ 6,298 |
Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment charges | 6,298 | ||
Strategic consulting charges | 4,649 | ||
Severance charges | 4,066 | ||
Inventory-related charges | 935 | ||
Other restructuring costs | 751 | ||
Total | 16,699 | ||
Restructuring Settlement And Impairment Provisions, Net Of Tax | 10,600 | ||
Vision 20/20 | Selling, general and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment charges | 6,298 | ||
Strategic consulting charges | 4,649 | ||
Severance charges | 3,867 | ||
Other restructuring costs | 751 | ||
Total | 15,565 | ||
Vision 20/20 | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 199 | ||
Inventory-related charges | 935 | ||
Total | 1,134 | ||
Direct | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment charges | 6,298 | ||
Severance charges | 826 | ||
Other restructuring costs | 466 | ||
Total | 7,590 | ||
Accelerated depreciation charges and other charges | 67 | ||
Direct | Lease termination costs | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Other restructuring costs | 399 | ||
Indirect | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 1,184 | ||
Inventory-related charges | 935 | ||
Other restructuring costs | 230 | ||
Total | 2,349 | ||
Accelerated depreciation charges and other charges | 230 | ||
Corporate Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 2,500 | ||
Corporate Segment | Vision 20/20 | |||
Restructuring Cost and Reserve [Line Items] | |||
Strategic consulting charges | 4,649 | ||
Severance charges | 2,056 | ||
Other restructuring costs | 55 | ||
Total | 6,760 | ||
Accelerated depreciation charges and other charges | $ 55 |
Vision 20_20 Restructuring an_3
Vision 20/20 Restructuring and Other Charges - Charges and related liabilities associated with the Vision 20/20 initiatives (Details) - Vision 20/20 $ in Thousands | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2018 charges | $ 16,699 |
Cash payments | (7,568) |
Non-cash charges | (7,573) |
Liability as of February 3, 2018 | 1,558 |
Asset Impairment Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2018 charges | 6,298 |
Cash payments | 0 |
Non-cash charges | (6,298) |
Liability as of February 3, 2018 | 0 |
Strategic Consulting Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2018 charges | 4,649 |
Cash payments | (4,649) |
Non-cash charges | 0 |
Liability as of February 3, 2018 | 0 |
Employee severance and other benefits | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2018 charges | 4,066 |
Cash payments | (2,508) |
Non-cash charges | 0 |
Liability as of February 3, 2018 | 1,558 |
Inventory Related Charges | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2018 charges | 935 |
Cash payments | 0 |
Non-cash charges | (935) |
Liability as of February 3, 2018 | 0 |
Other associated restructuring costs | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2018 charges | 751 |
Cash payments | (411) |
Non-cash charges | (340) |
Liability as of February 3, 2018 | $ 0 |
Investments - Short-term invest
Investments - Short-term investments (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Investment Holdings [Line Items] | ||
Short-term investments | $ 8,977 | $ 19,381 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Commercial Paper [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 2,489 | 498 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, US [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 3,435 | 5,769 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Municipal Notes [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 1,594 | 4,190 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, Non-US [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 1,136 | 5,808 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Asset-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 323 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, US [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Commercial Paper [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Municipal Notes [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, Non-US [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Asset-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Investment Holdings [Line Items] | ||
Short-term investments | $ 0 | $ 3,116 |
Investments - Long-term investm
Investments - Long-term investments (Details) - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Investment Holdings [Line Items] | ||
Long-term investments | $ 14,912,000 | $ 23,735,000 |
Unrealized (loss) gain on available-for-sale investments | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, US [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 5,613,000 | 9,499,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Asset-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 5,498,000 | 7,169,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, Non-US [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 2,409,000 | 4,675,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Securities, Other [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 810,000 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Municipal Notes [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 0 | 1,265,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, US [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Asset-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Debt Security, Corporate, Non-US [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Municipal Notes [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Non-U.S. Asset-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Long-term investments | $ 582,000 | $ 1,127,000 |
Acquisition of Pura Vida - Narr
Acquisition of Pura Vida - Narrative (Details) - USD ($) $ in Thousands | Jul. 16, 2019 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jul. 17, 2019 |
Business Acquisition [Line Items] | ||||||||
Contingent consideration related to business acquisition | $ 18,448 | $ 0 | ||||||
Federal taxes at statutory rate, percentage | 21.00% | 21.00% | 32.90% | |||||
Pura Vida | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of business acquired | 75.00% | |||||||
Purchase price of business combinations | $ 75,000 | $ 3,000 | ||||||
Contingent consideration arrangements, range of outcomes, value, high | $ 22,500 | |||||||
Contingent consideration related to business acquisition | $ 20,854 | 18,400 | $ 20,098 | |||||
Pre- tax transaction costs | $ 1,900 | $ 800 | $ 2,700 | |||||
Federal taxes at statutory rate, percentage | 25.00% | |||||||
Pura Vida | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage by noncontrolling owners | 25.00% |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) | 12 Months Ended | |||
Feb. 01, 2020 | Jul. 17, 2019 | Jul. 16, 2019 | Feb. 02, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, weighted average useful life | 3 years 7 months 24 days | |||
Goodwill | $ 44,254,000 | $ 0 | ||
Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, weighted average useful life | 3 years 7 months | |||
Non-competition Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, weighted average useful life | 5 years | |||
Pura Vida | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 44,254,000 | $ 41,310,000 | ||
Percentage of business acquired | 75.00% |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jul. 16, 2019 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interest, beginning balance | $ 0 | |||
Fair value of noncontrolling interest at acquisition | 31,786 | |||
Fair value measurement period adjustment | 424 | |||
Net loss attributable to redeemable noncontrolling interest | (803) | $ 0 | $ 0 | |
Distributions to redeemable noncontrolling interest | (1,789) | |||
Adjustment to redemption value | 431 | |||
Redeemable noncontrolling interest, ending balance | $ 30,049 | $ 0 | ||
Pura Vida | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by noncontrolling owners | 25.00% |
Acquisition of Pura Vida - The
Acquisition of Pura Vida - The fair value of the assets acquired and liabilities assumed (Details) - USD ($) | Jul. 17, 2019 | Jul. 17, 2019 | Jul. 16, 2019 | Nov. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||||
Goodwill | $ 44,254,000 | $ 0 | |||||
Measurement Period Adjustment, Goodwill | 2,944,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||||
Contingent consideration related to earn-out provision | (18,448,000) | 0 | |||||
Redeemable noncontrolling interest | (30,049,000) | 0 | |||||
Cash paid for business acquisition, net of cash acquired | 76,032,000 | $ 0 | $ 0 | ||||
Pura Vida | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||||
Cash and cash equivalents | $ 1,495,000 | $ 1,495,000 | $ 1,495,000 | ||||
Accounts receivable, net | 7,680,000 | 7,680,000 | 8,673,000 | ||||
Measurement Period Adjustments, Accounts Receivable, net | (993,000) | ||||||
Inventories | 27,654,000 | 27,654,000 | 27,643,000 | ||||
Measurement Period Adjustments, inventories | 11,000 | 8,300,000 | |||||
Prepaid expenses and other current assets | 1,537,000 | 1,537,000 | 1,537,000 | ||||
Operating right of use asset | 1,250,000 | 1,250,000 | 1,250,000 | ||||
Property, plant, and equipment, net | 751,000 | 751,000 | 751,000 | ||||
Goodwill | 44,254,000 | 44,254,000 | 41,310,000 | ||||
Measurement Period Adjustment, Goodwill | 2,944,000 | ||||||
Intangible asset, brand | 36,668,000 | 36,668,000 | 36,668,000 | ||||
Other intangible assets | 24,996,000 | 24,996,000 | 25,283,000 | ||||
Measurement Period Adjustments, other intangible assets | (287,000) | ||||||
Total assets acquired | 146,285,000 | 146,285,000 | 144,610,000 | ||||
Measurement Period Adjustments, Total assets acquired | 1,675,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||||
Accounts payable | 6,818,000 | 6,818,000 | 6,818,000 | ||||
Accrued employment costs | 2,351,000 | 2,351,000 | 2,351,000 | ||||
Other accrued liabilities | 6,637,000 | 6,637,000 | 6,637,000 | ||||
Operating lease liability | 1,637,000 | 1,637,000 | 1,659,000 | ||||
Measurement Period Adjustments, Operating lease liability | (22,000) | ||||||
Total liabilities assumed | 17,443,000 | 17,443,000 | 17,465,000 | ||||
Measurement Period Adjustments, Total liabilities assumed | (22,000) | ||||||
Contingent consideration related to earn-out provision | (20,098,000) | (20,098,000) | (20,854,000) | (18,400,000) | |||
Measurement Period Adjustments, Contingent consideration related to earn-out provision | 756,000 | ||||||
Redeemable noncontrolling interest | (32,210,000) | (32,210,000) | (31,786,000) | ||||
Measurement Period Adjustments, Redeemable noncontrolling interest | (424,000) | ||||||
Total closing consideration amount, net of cash acquired | $ 75,039,000 | 73,010,000 | |||||
Measurement Period Adjustments, Total closing consideration amount, net of cash acquired | $ 2,029,000 | ||||||
Indemnity liability | 4,100,000 | ||||||
Purchase price of business combinations | 75,000,000 | $ 3,000,000 | |||||
Working capital adjustment | 1,000,000 | ||||||
Cash paid for business acquisition, net of cash acquired | $ 76,000,000 | ||||||
Pura Vida | Accounts Receivable [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||||
Working capital adjustment | $ 1,000,000 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Carrying value of the Company's intangible assets other than goodwill (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Basis | $ 24,996 | |
Accumulated Amortization | (5,359) | |
Carrying Amount | 19,637 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangible asset | 36,668 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Basis | 61,664 | |
Accumulated Amortization | (5,359) | |
Carrying Amount | 56,305 | $ 0 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Basis | 24,208 | |
Accumulated Amortization | (5,274) | |
Carrying Amount | 18,934 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (5,274) | |
Non-competition Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Basis | 788 | |
Accumulated Amortization | (85) | |
Carrying Amount | 703 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (85) |
Acquisition of Pura Vida - Pro
Acquisition of Pura Vida - Pro forma Information (Details) - Pura Vida - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Business Acquisition [Line Items] | ||
Pro forma net revenues | $ 538,576 | $ 484,376 |
Pro forma net income | 23,786 | 16,708 |
Parent | ||
Business Acquisition [Line Items] | ||
Pro forma net income | $ 22,193 | $ 18,081 |
Pro forma basic net income per share attributable to Vera Bradley, Inc. (in dollar per share) | $ 0.65 | $ 0.51 |
Pro forma diluted net income per share attributable to Vera Bradley, Inc. (in dollar per share) | $ 0.65 | $ 0.51 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Provisional amortization expense for intangible assets (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2021 | $ 9,009 |
Fiscal 2022 | 3,073 |
Fiscal 2023 | 3,073 |
Fiscal 2024 | 3,073 |
Fiscal 2025 | 1,409 |
Carrying Amount | $ 19,637 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Goodwill (Details) | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 0 |
Goodwill at acquisition | 41,310,000 |
Measurement period adjustment | 2,944,000 |
Goodwill, ending balance | $ 44,254,000 |
Segment Reporting (Detail)
Segment Reporting (Detail) | 12 Months Ended | ||
Feb. 01, 2020Segmentlocationcustomer | Feb. 02, 2019customer | Feb. 03, 2018customer | |
Revenue, Major Customer | |||
Concentration risk, Percentage | 10.00% | 10.00% | 10.00% |
Number of operating segments | Segment | 3 | ||
Number of specialty retail locations | location | 2,200 | ||
Number of customers exceeding threshold | customer | 0 | 0 | 0 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Net Revenues and Operating Income Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Segment Reporting Information | |||||||||||
Net revenues | $ 156,923 | $ 127,501 | $ 119,785 | $ 91,003 | $ 118,193 | $ 97,688 | $ 113,625 | $ 86,591 | $ 495,212 | $ 416,097 | $ 454,648 |
Operating (loss) income | $ 17,247 | $ (1,476) | $ 7,348 | $ (3,645) | $ 11,654 | $ 5,343 | $ 12,016 | $ (1,912) | 19,474 | 27,101 | 14,981 |
Direct | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 347,484 | 328,034 | |||||||||
Indirect | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 81,811 | 88,063 | |||||||||
Pura Vida | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 65,917 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 495,212 | 416,097 | 454,648 | ||||||||
Segment operating income | 96,403 | 102,362 | 95,742 | ||||||||
Operating Segments | Direct | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 347,484 | 328,034 | 351,786 | ||||||||
Segment operating income | 68,505 | 67,862 | 60,979 | ||||||||
Operating Segments | Indirect | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 81,811 | 88,063 | 102,862 | ||||||||
Segment operating income | 31,077 | 34,500 | 34,763 | ||||||||
Operating Segments | Pura Vida | |||||||||||
Segment Reporting Information | |||||||||||
Net revenues | 65,917 | 0 | 0 | ||||||||
Segment operating income | (3,179) | 0 | 0 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information | |||||||||||
Unallocated corporate expenses | $ (76,929) | $ (75,261) | $ (80,761) |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenue By Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net revenues: | |||||||||||
Net revenues | $ 156,923 | $ 127,501 | $ 119,785 | $ 91,003 | $ 118,193 | $ 97,688 | $ 113,625 | $ 86,591 | $ 495,212 | $ 416,097 | $ 454,648 |
Bags | |||||||||||
Net revenues: | |||||||||||
Net revenues | 177,715 | 170,881 | 184,773 | ||||||||
Accessories | |||||||||||
Net revenues: | |||||||||||
Net revenues | 155,200 | 92,794 | 100,246 | ||||||||
Travel | |||||||||||
Net revenues: | |||||||||||
Net revenues | 108,444 | 107,513 | 118,655 | ||||||||
Home | |||||||||||
Net revenues: | |||||||||||
Net revenues | 35,690 | 29,603 | 30,819 | ||||||||
Other | |||||||||||
Net revenues: | |||||||||||
Net revenues | $ 18,163 | $ 15,306 | $ 20,155 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 156,923 | $ 127,501 | $ 119,785 | $ 91,003 | $ 118,193 | $ 97,688 | $ 113,625 | $ 86,591 | $ 495,212 | $ 416,097 | $ 454,648 |
Gross profit | 86,130 | 67,870 | 67,333 | 50,468 | 67,079 | 57,152 | 65,740 | 48,616 | 271,801 | 238,587 | 254,009 |
Operating (loss) income | 17,247 | (1,476) | 7,348 | (3,645) | 11,654 | 5,343 | 12,016 | (1,912) | 19,474 | 27,101 | 14,981 |
Net (loss) income | 12,913 | (982) | 5,718 | (2,405) | 8,619 | 4,226 | 9,282 | (1,370) | 15,244 | 20,757 | 7,016 |
Net income attributable to Vera Bradley, Inc. | $ 12,459 | $ 139 | $ 5,854 | $ (2,405) | $ 8,619 | $ 4,226 | $ 9,282 | $ (1,370) | $ 16,047 | $ 20,757 | $ 7,016 |
Basic net (loss) income per share (in dollars per share) | $ 0.37 | $ 0 | $ 0.17 | $ (0.07) | $ 0.25 | $ 0.12 | $ 0.26 | $ (0.04) | |||
Net income per share, diluted (in dollars per share) | $ 0.37 | $ 0 | $ 0.17 | $ (0.07) | $ 0.25 | $ 0.12 | $ 0.26 | $ (0.04) | $ 0.47 | $ 0.59 | $ 0.19 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Stock-based compensation expense | $ 5.9 | $ 4.9 | $ 3.1 | ||||
Pura Vida | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Pre- tax transaction costs | $ 1.9 | $ 0.8 | $ 2.7 | ||||
Transaction costs, after associated tax benefit | $ 0.6 | ||||||
Purchase accounting adjustments | $ 0.1 | $ 10.5 | 1.4 | ||||
Restructuring charges | 1.2 | 1.1 | 0.7 | ||||
Restructuring charges, after the associated tax benefit | 1.9 | $ 6.8 | $ 2.9 | ||||
Stock-based compensation expense | $ 1.6 |
Subsequent Event (Details)
Subsequent Event (Details) - Revolving Credit Facility - New Credit Agreement - Subsidiaries - USD ($) $ in Millions | Mar. 31, 2020 | Feb. 01, 2020 | Sep. 07, 2018 |
Subsequent Event [Line Items] | |||
Remaining borrowing capacity | $ 75 | $ 7.5 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Long-term line of credit | $ 60 | ||
Remaining borrowing capacity | $ 75 |
Uncategorized Items - vra-20200
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 454,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (196,000) |
Repurchase of Common Stock Incurred but Not yet Paid | vra_RepurchaseofCommonStockIncurredbutNotyetPaid | 0 |
Repurchase of Common Stock Incurred but Not yet Paid | vra_RepurchaseofCommonStockIncurredbutNotyetPaid | 0 |
Repurchase of Common Stock Incurred but Not yet Paid | vra_RepurchaseofCommonStockIncurredbutNotyetPaid | 197,000 |
Repurchase of Common Stock Incurred but Not yet Paid | vra_RepurchaseofCommonStockIncurredbutNotyetPaid | 176,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | 1,183,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | 2,204,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | 1,065,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | 559,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 454,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (196,000) |