Cover page
Cover page - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Mar. 22, 2024 | Jul. 28, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 03, 2024 | ||
Current Fiscal Year End Date | --02-03 | ||
Document Transition Report | false | ||
Entity File Number | 001-34918 | ||
Entity Registrant Name | VERA BRADLEY, INC. | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 27-2935063 | ||
Entity Address, Address Line One | 12420 Stonebridge Road | ||
Entity Address, City or Town | Roanoke | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46783 | ||
City Area Code | 877 | ||
Local Phone Number | 708-8372 | ||
Title of 12(b) Security | Common Stock, without par value | ||
Trading Symbol | VRA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 153,072,643 | ||
Entity Common Stock, Shares Outstanding | 30,789,436 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Vera Bradley, Inc. intends to file such proxy statement with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after its fiscal year ended February 3, 2024. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001495320 |
Audit Information
Audit Information | 12 Months Ended |
Feb. 03, 2024 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Indianapolis, Indiana |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 77,303 | $ 46,595 |
Accounts receivable, net | 17,112 | 22,105 |
Inventories | 118,278 | 142,275 |
Income taxes receivable | 461 | 1,311 |
Prepaid expenses and other current assets | 12,803 | 14,276 |
Total current assets | 225,957 | 226,562 |
Operating Lease, Right-of-Use Asset | 66,488 | 77,954 |
Property, plant, and equipment, net | 54,256 | 58,674 |
Intangible assets, net | 7,573 | 15,918 |
Deferred income taxes | 20,355 | 21,542 |
Other assets | 6,157 | 3,851 |
Total assets | 380,786 | 404,501 |
Current liabilities: | ||
Accounts payable | 14,155 | 20,350 |
Accrued employment costs | 12,944 | 14,312 |
Short-term operating lease liabilities | 18,452 | 19,714 |
Other accrued liabilities | 12,070 | 12,723 |
Income taxes payable | 640 | 558 |
Total current liabilities | 58,261 | 67,657 |
Long-term operating lease liabilities | 62,552 | 74,664 |
Other long-term liabilities | 44 | 90 |
Total liabilities | 120,857 | 142,411 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 0 | 10,712 |
Shareholders’ equity: | ||
Preferred stock; 5,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, without par value; 200,000 shares authorized, 43,253 and 42,846 shares issued and 30,814 and 30,766 outstanding, respectively | 0 | 0 |
Additional paid-in capital | 112,590 | 109,718 |
Retained earnings | 282,467 | 274,629 |
Accumulated other comprehensive loss | (72) | (105) |
Treasury stock | (135,056) | (132,864) |
Total shareholders’ equity of Vera Bradley, Inc. | 259,929 | 251,378 |
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity | $ 380,786 | $ 404,501 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Feb. 03, 2024 | Jan. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 43,253,000 | 42,846,000 |
Common stock, shares outstanding (in shares) | 30,814,000 | 30,766,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Statement [Abstract] | |||
Net revenues | $ 470,786 | $ 499,961 | $ 540,453 |
Cost of sales | 214,373 | 261,017 | 252,510 |
Gross profit | 256,413 | 238,944 | 287,943 |
Selling, general, and administrative expenses | 241,457 | 265,016 | 261,993 |
Impairment of goodwill and intangible assets | 5,429 | 69,256 | 0 |
Other income, net | 915 | 457 | 961 |
Operating income (loss) | 10,442 | (94,871) | 26,911 |
Interest income (expense), net | 890 | (153) | (263) |
Income (loss) before income taxes | 11,332 | (95,024) | 26,648 |
Income tax expense (benefit) | 3,494 | (15,640) | 6,430 |
Net income (loss) | 7,838 | (79,384) | 20,218 |
Less: Net (loss) income attributable to redeemable noncontrolling interest | 0 | (19,649) | 2,380 |
Net income (loss) attributable to Vera Bradley, Inc. | $ 7,838 | $ (59,735) | $ 17,838 |
Basic weighted-average shares outstanding | 30,833 | 31,503 | 33,785 |
Diluted weighted-average shares outstanding | 31,314 | 31,503 | 34,437 |
Net income (loss) per share - basic | |||
Basic net income (loss) per share attributable to Vera Bradley, Inc. common shareholders | $ 0.25 | $ (1.90) | $ 0.53 |
Net income (loss) per share - diluted | |||
Diluted net income (loss) per share attributable to Vera Bradley, Inc. common shareholders | $ 0.25 | $ (1.90) | $ 0.52 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 7,838 | $ (79,384) | $ 20,218 |
Unrealized loss on available for sale debt investments | 0 | 0 | (4) |
Cumulative translation adjustment | 33 | (76) | (33) |
Comprehensive income (loss), net of tax | 7,871 | (79,460) | 20,181 |
Less: Comprehensive (loss) income attributable to redeemable noncontrolling interest | 0 | (19,649) | 2,380 |
Comprehensive income (loss) attributable to Vera Bradley, Inc. | $ 7,871 | $ (59,811) | $ 17,801 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock | 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. 30, 2021 | 33,414,490 | |||||
Treasury stock (shares), balance at the beginning of the period at Jan. 30, 2021 | 8,393,207 | |||||
Balance at the beginning of the period at Jan. 30, 2021 | $ 314,907 | $ (107,060) | $ 105,433 | $ 316,526 | $ 8 | |
Net income (loss) attributable to Vera Bradley, Inc. | 17,838 | 17,838 | ||||
Translation adjustments | (33) | (33) | ||||
Unrealized loss on available for sale debt investments | (4) | (4) | ||||
Restricted shares vested, net of repurchase for taxes, shares | 621,474 | |||||
Restricted shares vested, net of repurchase for taxes | (2,456) | (2,456) | ||||
Stock-based compensation | 4,930 | 4,930 | ||||
Treasury stock purchased, shares | (865,534) | (865,534) | ||||
Treasury stock purchased | (7,742) | $ (7,742) | ||||
Common stock (shares) outstanding, balance at the end of the period at Jan. 29, 2022 | 33,170,430 | |||||
Treasury stock (shares), balance at the end of the period at Jan. 29, 2022 | 9,258,741 | |||||
Balance at the end of the period at Jan. 29, 2022 | 327,440 | $ (114,802) | 107,907 | 334,364 | (29) | |
Net income (loss) attributable to Vera Bradley, Inc. | (59,735) | (59,735) | ||||
Translation adjustments | (76) | (76) | ||||
Unrealized loss on available for sale debt investments | 0 | |||||
Restricted shares vested, net of repurchase for taxes, shares | 416,543 | |||||
Restricted shares vested, net of repurchase for taxes | (1,430) | (1,430) | ||||
Stock-based compensation | 3,241 | 3,241 | ||||
Treasury stock purchased, shares | (2,820,949) | (2,820,949) | ||||
Treasury stock purchased | $ (18,062) | $ (18,062) | ||||
Common stock (shares) outstanding, balance at the end of the period at Jan. 28, 2023 | 30,766,000 | 30,766,024 | ||||
Treasury stock (shares), balance at the end of the period at Jan. 28, 2023 | 12,079,690 | |||||
Balance at the end of the period at Jan. 28, 2023 | $ 251,378 | $ (132,864) | 109,718 | 274,629 | (105) | |
Net income (loss) attributable to Vera Bradley, Inc. | 7,838 | 7,838 | ||||
Translation adjustments | 33 | 33 | ||||
Unrealized loss on available for sale debt investments | 0 | |||||
Restricted shares vested, net of repurchase for taxes, shares | 407,146 | |||||
Restricted shares vested, net of repurchase for taxes | (1,356) | (1,356) | ||||
Stock-based compensation | 2,942 | 2,942 | ||||
Treasury stock purchased, shares | (359,554) | (359,554) | ||||
Treasury stock purchased | (2,192) | $ (2,192) | ||||
Redeemable noncontrolling interest redemption value adjustment | $ (1,286) | (1,286) | ||||
Common stock (shares) outstanding, balance at the end of the period at Feb. 03, 2024 | 30,814,000 | 30,813,616 | ||||
Treasury stock (shares), balance at the end of the period at Feb. 03, 2024 | 12,439,244 | 12,439,244 | ||||
Balance at the end of the period at Feb. 03, 2024 | $ 259,929 | $ (135,056) | $ 112,590 | $ 282,467 | $ (72) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Cash flows from operating activities | |||
Net income (loss) | $ 7,838 | $ (79,384) | $ 20,218 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation of property, plant, and equipment | 7,968 | 8,854 | 9,315 |
Amortization of operating right-of-use assets | 21,021 | 21,543 | 20,521 |
Impairment of goodwill and intangible assets | 5,429 | 69,256 | 0 |
Other impairment charges | 0 | 1,351 | 85 |
Amortization of intangible assets | 2,916 | 3,303 | 3,073 |
Provision for doubtful accounts | 322 | (77) | 101 |
Stock-based compensation | 2,942 | 3,241 | 4,930 |
Deferred income taxes | 1,761 | (17,685) | (327) |
Other non-cash charges, net | 7 | 6 | (37) |
Changes in assets and liabilities: | |||
Accounts receivable | 4,671 | (1,347) | 6,761 |
Inventories | 23,997 | 2,606 | (3,465) |
Prepaid expenses and other assets | (833) | 3,882 | 2,215 |
Accounts payable | (5,989) | (10,223) | 3,210 |
Income taxes | 932 | 8,638 | (2,340) |
Operating lease liabilities, net | (22,929) | (25,398) | (25,961) |
Accrued and other liabilities | (2,060) | (1,987) | 1,562 |
Net cash provided by (used in) operating activities | 47,993 | (13,421) | 39,861 |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | (3,770) | (8,239) | (5,489) |
Proceeds from maturities and sales of investments | 0 | 0 | 1,290 |
Cash paid for business acquisition | (10,000) | 0 | 0 |
Proceeds from disposal of property, plant, and equipment | 0 | 0 | 45 |
Net cash used in investing activities | (13,770) | (8,239) | (4,154) |
Cash flows from financing activities | |||
Tax withholdings for equity compensation | (1,356) | (1,430) | (2,456) |
Repurchase of common stock | (2,192) | (18,062) | (7,742) |
Distributions to redeemable noncontrolling interest | 0 | (613) | (1,215) |
Net cash used in financing activities | (3,548) | (20,105) | (11,413) |
Effect of exchange rate changes on cash and cash equivalents | 33 | (76) | (33) |
Net increase (decrease) in cash and cash equivalents | 30,708 | (41,841) | 24,261 |
Cash and cash equivalents, beginning of period | 46,595 | 88,436 | 64,175 |
Cash and cash equivalents, end of period | 77,303 | 46,595 | 88,436 |
Supplemental disclosure of cash-flow information | |||
Cash paid (received) for income taxes, net | 837 | (6,573) | 9,083 |
Cash paid for interest | $ 145 | $ 88 | $ 293 |
Description of the Company
Description of the Company | 12 Months Ended |
Feb. 03, 2024 | |
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, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. We believe Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as casual, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands. 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. 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”). On January 30, 2023, the Company purchased the remaining 25% interest in Pura Vida. Pura Vida, based in La Jolla, California, is a digitally native lifestyle brand that has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories. The Company 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 outlet stores in the United States; verabradley.com; outlet.verabradley.com; and typically the Vera Bradley annual outlet sale in Fort Wayne, Indiana. As of February 3, 2024, the Company operated 43 full-line stores and 81 outlet stores. In light of the COVID-19 pandemic, the Company cancelled its calendar year 2022 and 2021 annual outlet sales. The sale resumed in calendar year 2023. • The VB Indirect business consists of sales of Vera Bradley products to approximately 1,600 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, www.puravidabracelets.ca, and www.puravidabracelets.eu); the distribution of Pura Vida-branded products to wholesale retailers, substantially all of which are located in the United States; and through its five retail stores. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, including Pura Vida. 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 year 2024, ending on February 3, 2024 reflected a 53-week period. Fiscal years 2023 and 2022, ending on January 28, 2023 and January 29, 2022 respectively, each reflected a 52-week period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
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, and sales return allowances. 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. 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. Substantially all inventory relates to finished goods. 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. Leas ehold improvements are amortized over the shorter of the life of the asset or the lease term. Lease terms typically range from three 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 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 Revenue Recognition and Accounts Receivable 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. 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 and Pura Vida full-line and 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 Provision Allowances Balance at End Fiscal year ended February 3, 2024 $ 1,801 $ 9,697 $ (10,076) $ 1,422 Fiscal year ended January 28, 2023 1,582 12,320 (12,101) 1,801 Fiscal year ended January 29, 2022 1,714 17,043 (17,175) 1,582 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 approxima tely $1.1 million and $0.8 million as of February 3, 2024 and January 28, 2023, respectively. The provision for doubtful accounts is based upon the likelihood of default expected during the life of the receivable. 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 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.” Refer to Note 4 herein for additional information regarding the Company's leases. 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 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 14 herein for additional information regarding the noncontrolling interest in Pura Vida as of February 3, 2024. 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 As of February 3, 2024 identifiable intangible assets consisted of the Pura Vida brand and customer relationships. Goodwill was fully impaired during fiscal 2023, leavi ng no balance. Our Pura Vida brand, an indefinite-lived asset, is not amortized but assessed for impairment at least annually or whenever events or circumstances indicate that the brand may be impaired . The Pura Vida customer relationship, a definite-lived intangible asset, is amortized over its estimated useful life and is also subject to impairment testing, similar to the Company’s other long-lived assets. We test the Pura Vida brand for impairment annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Our annual impairment test may be completed through a qualitative assessment to determine if the fair value of the Pura Vida brand is more likely than not greater than the carrying amount. If we elect to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value exceeds the fair value, we test for impairment using a quantitative process. Our quantitative process includes comparing the carrying value to the fair value of the Pura Vida brand, with any excess recognized as an impairment loss. Fair value is estimated using a relief-from-royalty method. The estimates and assumptions used in the determination of the fair value of the Pura Vida brand include the projected revenue growth, long-term growth rate, the royalty rate, and discount rate. Prior to fiscal 2024, the Company performed an annual impairment test for its goodwill. As of February 3, 2024, the carrying value of the Pura Vida brand was $6.2 million. For the annual impairment analysis performed in the second quarter of fiscal 2024, the Company performed a quantitative analysis and no impairment was recorded. Subsequent to the annual impairment test, the Company performed an additional quantitative analysis of the carrying value of the Pura Vida brand due to triggering events and recorded an impairment charge of $5.4 million during the fourth quarter of fiscal 2024, further described in Note 15 herein. For the annual impairment analysis performed during fiscal 2023, the Company performed a quantitative analysis, as well as subsequent analyses due to triggering events, further described in Note 15 herein. Impairment charges of $44.3 million and $25.0 million were recorded during fiscal 2023 for goodwill and the Pura Vida brand, respectively. The estimated fair value of the Pura Vida brand is subject to change as a result of many factors, including changing economic conditions. Should actual and estimated cash flows change from the estimates we used in our fiscal 2024 impairment analysis, we may record additional impairment charges in future years. 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 had the right to sell all of the Remaining Pura Vida Interest to the Company, and the Company had 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 was 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 was delivered by a relevant party. In the event of a change in control of the Company, the parties had the right to 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 was adjusted each reporting period for income (or loss) attributable to the noncontrolling interest. A measurement period adjustment, if any, was then made to adjust the noncontrolling interest to the higher of the redemption value or carrying value each reporting period. These adjustments were recognized through retained earnings and were 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 adjusted 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 was 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 required 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 were based on our annual and long-term business plans. Discount rates reflected market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. On January 23, 2023, the Company and certain of its subsidiaries entered into an Interest Purchase Agreement (the “Interest Purchase Agreement”) with Creative Genius Holdings, Inc. a California corporation, Creative Genius Investments, Inc., a California corporation, Griffin Thall and Paul Goodman (collectively “Sellers”) to purchase the remaining 25% of the outstanding membership interests (the "Remaining Pura Vida Interests") of Pura Vida. The closing date of the Transaction was January 30, 2023. Pursuant to the Interest Purchase Agreement, and subject to the terms and conditions thereof, on the closing date, the Company indirectly acquired the Remaining Pura Vida Interests (the “Transaction”) in exchange for cash consideration consisting of approximately $10 million payable at closing, subject to certain adjustments. The Transaction was not subject to financing conditions. The Company’s existing available cash and cash equivalents funded the purchase price. Following completion of the Transaction, the Company owned one hundred percent (100%) of the ownership interests in Pura Vida. The Interest Purchase Agreement also included certain non-competition and customer, supplier and employee non-solicitation and non-interference covenants from the Sellers in favor of the Company during the four-year period beginning on the closing date of the Transaction. The Interest Purchase Agreement provides that, as of the closing of the Transaction, all rights and obligations of the Company and the Sellers under any agreements among the parties, including the Put/Call Agreement, were terminated. As a result of the Transaction, the Company recorded a decrease to redeemable noncontrolling interest of $10.7 million. The difference between the fair value of the consideration paid and the balance of the redeemable noncontrolling interest resulted in $0.7 million recognized in additional paid-in capital (“APIC”) during fiscal 2024. In addition, there was an APIC adjustment of $0.6 million related to deferred income taxes for the purchase of the redeemable noncontrolling interest. The total APIC adjustment for this matter during fiscal 2024 was $1.3 million. 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. Advertising Costs The Company expenses advertising costs at the time the promotion first appears in media, in stores, or on its websites, and includes those costs in selling, general, and administrative expenses in the Consolidated Statements of Operations. Total advertising expense was as follows (in thousands): Fiscal year ended February 3, 2024 $ 54,999 Fiscal year ended January 28, 2023 54,941 Fiscal year ended January 29, 2022 61,223 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, and accounts payable as of February 3, 2024 and January 28, 2023, approximated their fair values. The following table details the fair value measurements of the Company’s investments as of February 3, 2024 and January 28, 2023 (in thousands): Level 1 Level 2 Level 3 February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 Cash equivalents (1) $ 55,262 $ 360 $ — $ — $ — $ — (1) Cash equivalents primarily represent money market funds that have a maturity of three months or less at the date of purchase. Due to its 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 $1.4 million and $0.1 million in impairment charges primarily related to store assets including property, plant, and equipment and lease right-of-use assets during the fiscal years ended January 28, 2023, and January 29, 2022, respectively. No impairment charges were recorded in fiscal 2024 for long-lived assets. 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 15 herein regarding the Pura Vida Brand impairment test and fiscal 2024 impairments charges and the 2023 Pura Vida Brand and goodwill impairment test and fiscal 2023 impairment charges. The discounted cash flow models used to estimate the applicable fair values involve numerous estimates and assumptions that are highly subjective. Changes to these estimates and assumptions could materially impact the fair value estimates. The estimates and assumptions critical to the overall fair value estimates include: (1) estimated future cash flow generated at the store level; (2) discount rates used to derive the present value factors used in determining the fair values; and (3) market rentals at the retail store. These and other estimates and assumptions are impacted by economic conditions and our expectations and may change in the future based on period-specific facts and circumstances. If economic conditions were to deteriorate, future impairment charges may be required which may be material. 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. When measuring deferred tax assets, the Company considers both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets will be realized. This evidence includes recent operating results, projected future taxable income, the reversal of existing taxable differences, tax planning strategies, among other factors. When necessary, a valuation allowance is recorded to reduce the deferred tax assets to their anticipated realizable value. 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. Cloud Computing Arrangements The Company capitalizes implementation costs associated with its Cloud Computing Arrangements (“CCA”) consistent with costs capitalized for internal-use software. The CCA costs are amortized over the term of the related hosting agreement, taking into consideration renewal options, if any. The renewal period is included in the amortization period if determined that the option is reasonably certain to be exercised. The amortization expense is recorded within selling, general, and administrative expenses in the Company's Consolidated Statements of Operations, which is within the same line item as the related hosting fees. The balance of the unamortized CCA implementation costs totaled $3.8 million and $6.4 million as of February 3, 2024 and January 28, 2023, respectively. Of this total, $2.8 million and $3.0 million was recorded within prepaid expenses and other current assets and $1.0 million and $3.4 million was recorded within other assets on the Company's Consolidated Balance Sheets as of February 3, 2024 and January 28, 2023, respectively. The CCA implementation costs are recorded within operating activities in the Company's Consolidated Statements of Cash Flows. Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-06, "Disclosure Improvements." The amendments in this update modify the disclosure or presentation requirements of a variety of topics in the codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. The amendments in this ASU are effective for public business entities for interim periods beginning after June 30, 2027. The Company is currently evaluating the impacts of the provisions of ASU 2023-06. In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures". This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in additional required disclosures when adopted. The Company is currently evaluating this guidance to determine the impact on its disclosures; however, adoption will not impact our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures". This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. The new standard is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating this guidance to determine the impact on its disclosures; however, adoption will not impact our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 12 Months Ended |
Feb. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following presents the Company's net revenues disaggregated by product category for the fifty-three weeks ended February 3, 2024, and fifty-two weeks ended January 28, 2023 and January 29, 2022 (in thousands): Fifty-Three Weeks Ended February 3, 2024 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 119,705 $ 39,609 $ 407 $ 159,721 Travel 75,927 14,922 — 90,849 Accessories 52,930 9,547 82,731 145,208 Home 37,587 4,022 — 41,609 Apparel/Footwear 16,526 2,461 1,450 20,437 Other 7,235 (1) 3,242 (2) 2,485 (3) 12,962 Total net revenues $ 309,910 (4) $ 73,803 (5) $ 87,073 (4) $ 470,786 (1) Primarily includes net revenues from stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $71.4 million of net revenues related to product sales recognized at a point in time and $2.4 million of net revenues related to sales-based royalties recognized over time. Fifty-Two Weeks Ended January 28, 2023 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 131,432 $ 38,587 $ 1,249 $ 171,268 Travel 79,585 14,283 — 93,868 Accessories 58,932 10,312 90,743 159,987 Home 38,040 4,233 — 42,273 Apparel/Footwear (6) 12,701 2,236 3,844 18,781 Other 7,541 (1) 3,665 (2) 2,578 (3) 13,784 Total net revenues $ 328,231 (4) $ 73,316 (5) $ 98,414 (4) $ 499,961 (1) Primarily includes net revenues from stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $70.7 million of net revenues related to product sales recognized at a point in time and $2.6 million of net revenues related to sales-based royalties recognized over time. (6) Includes mask sales. Fifty-Two Weeks Ended January 29, 2022 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 138,910 $ 33,125 $ 974 $ 173,009 Travel 82,507 12,150 — 94,657 Accessories 65,219 10,021 111,248 186,488 Home 41,987 4,416 — 46,403 Apparel/Footwear (6) 18,592 2,406 4,110 25,108 Other 7,660 (1) 3,883 (2) 3,245 (3) 14,788 Total net revenues $ 354,875 (4) $ 66,001 (5) $ 119,577 (4) $ 540,453 (1) Primarily includes net revenues from stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $63.1 million of net revenues related to product sales recognized at a point in time and $2.9 million of net revenues related to sales-based royalties recognized over time. (6) Includes mask sales. Contract Balances Contract liabilities as of February 3, 2024 and January 28, 2023, were $2.6 million and $3.2 million , respectively. The balance consisted of unredeemed gift cards, unearned revenue related to the monthly bracelet and jewelry clubs of the Pura Vida segment, Pura Vida loyalty club points, and Pura Vida customer deposits and payments collected before shipment. These contract liabilities are recognized within other accrued liabilities on the Company’s Consolidated Balance Sheets. Substantially all contract liabilities are recognized within one year. The Company did no t have contract assets as of February 3, 2024 and January 28, 2023. The balance for accounts receivable from contracts with customers, net of allowances, as of February 3, 2024 and January 28, 2023 was $16.4 million and $20.7 million , respectively, which is recognized within accounts receivable, net, on the Company’s Consolidated Balance Sheets. The provision for doubtful accounts was $1.1 million and $0.8 million as of February 3, 2024 and January 28, 2023, respectively. The provision for doubtful accounts is based upon the likelihood of default expected during the life of the receivable. 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 3, 2024. Significant Judgments Product Sales In the Vera Bradley and Pura Vida retail stores (recognized within the VB Direct segment and the Pura Vida segments), 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 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. Concentration of Credit Risk Five customers represented approximately 54.0% o f the balance of accounts receivable, net as of February 3, 2024. |
Leases
Leases | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
Leases | Leases Nature of Leases The Company has operating leases at all of its Vera Bradley and Pura Vida retail stores (including storage spaces), as well as for its New York office, the California Pura Vida office, Asia sourcing office, and showrooms. 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 3, 2024. These leases generally have early termination rights when certain sales thresholds are not met for a specified measurement period. The Company's other leases generally have remaining terms of up to approximately three years as of February 3, 2024. 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 3, 2024. Variable Rental Payments The Company's retail store leases contain variable rental payments based on each location's monthly gross sales, the majority of which have specified sales breakpoints. In addition, the majority 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 3, 2024 and January 28, 2023, was 4.8% and 4.6%, respectively. The discount rate is not readily determinable in the lease; therefore, the Company estimated the incremental borrowing rate, at the commencement or remeasurement 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 3, 2024, the Company had one lease which was executed but for which it did not have control of the underlying asset; therefore, the lease liability and right-of-use asset are not recorded on the Condensed Consolidated Balance Sheet. This lease contain undiscounted lease payments, which will be included in the determination of the lease liability, totaling approximately $0.8 million and has a term of approximately 5 years commencing in fiscal year 2025. 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. Amounts Recognized in the Consolidated Financial Statements The following 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 Statements of Operations for the fiscal years ended February 3, 2024, January 28, 2023, and January 29, 2022 (in thousands): Fifty-Three Weeks Ended Fifty-Two Weeks Ended February 3, 2024 January 28, 2023 January 29, 2022 Operating lease cost $ 25,826 $ 25,118 $ 25,200 Variable lease cost 5,295 5,975 7,560 Short-term lease cost 578 476 515 Less: Sublease income (1) (420) (234) — Total lease cost $ 31,279 $ 31,335 $ 33,275 (1) Related to the sublease of a former Company location. The weighted-average remaining lease term as of February 3, 2024 and January 28, 2023 was 5.3 years and 5.4 years, respectively. Supplemental operating cash flow information was as follows (in thousands): Fifty-Three Weeks Ended Fifty-Two Weeks Ended February 3, 2024 January 28, 2023 January 29, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 29,554 $ 30,014 $ 33,517 Right-of-use assets increase as a result of new and modified operating lease liabilities, net $ 9,859 $ 20,379 $ 11,584 Maturity Analysis of Operating Lease Liabilities Maturities of the Company's operating lease liabilities (undiscounted) reconciled to its lease liability as of February 3, 2024 were as follows (in thousands): Operating Leases Fiscal 2025 $ 21,921 Fiscal 2026 19,123 Fiscal 2027 14,413 Fiscal 2028 10,962 Fiscal 2029 8,703 Thereafter 16,988 Total remaining obligations 92,110 Less: Interest (11,105) Present value of lease liabilities $ 81,005 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment consisted of the following (in thousands): February 3, January 28, Land and land improvements $ 5,981 $ 5,981 Building and building improvements 46,203 46,276 Furniture, fixtures, leasehold improvements, computer equipment and software 86,584 86,180 Equipment and vehicles 28,493 28,528 Construction in progress 302 489 167,563 167,454 Less: Accumulated depreciation and amortization (113,307) (108,780) Property, plant, and equipment, net $ 54,256 $ 58,674 Depreciation and amortization expense associated with property, plant, and equipment, excluding impairment charges (in thousands): Fiscal year ended February 3, 2024 $ 7,968 Fiscal year ended January 28, 2023 8,854 Fiscal year ended January 29, 2022 9,315 |
Debt
Debt | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of February 3, 2024 and January 28, 2023, the Company had no borrowings outstanding and availability of $75.0 million under its Credit Agreement. 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. On August 3, 2023, certain subsidiaries of the Company, JP Morgan Chase Bank, N.A., as the administrative agent, and lenders from time to time party thereto, entered into a Third Amendment (the “Third Amendment”) to the Credit Agreement dated September 7, 2018. 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, Vera Bradley Sales, LLC, and Creative Genius, 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 $50.0 million. Amounts outstanding under the Credit Agreement bear interest at a per annum rate equal to (i) for CBFR borrowings (including swingline loans), the CB Floating Rate, where the CB Floating Rate is the greater of the prime rate or 2.5%, plus the Applicable Rate, where the Applicable Rate is a percentage spread ranging from -1.25% to -1.50%, (ii) for each Term Benchmark Borrowing, the Adjusted Term SOFR Rate, where the Adjusted Term SOFR Rate is the Term SOFR rate for such interest period plus 0.10% for the interest period in effect for such borrowing, plus the Applicable Rate, where the Applicable Rate is a percentage ranging from 1.25% to 1.50%, or (iii) for RFR Loans, the Adjusted Daily Simple SOFR Rate, where the adjusted Daily Simple SOFR Rate is equal to the Daily Simple SOFR plus 0.10%, plus the Applicable Rate, where the Applicable Rate is a percentage ranging from 1.25% to 1.50% The applicable CB Floating Rate, Adjusted Term SOFR Rate, Term SOFR Rate, Daily Simple SOFR, and Adjusted Daily Simple SOFR 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 0.30% 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 1.00 to 1.00 during periods when borrowing availability is less than the greater of (A) $9.4 million, and (B) 12.5% 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). |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax expense (benefit) were as follows (in thousands): February 3, January 28, January 29, Current: Federal $ 918 $ 680 $ 5,923 Foreign 337 562 279 State 478 803 555 1,733 2,045 6,757 Deferred: Federal 1,322 (15,517) (1,300) State 439 (2,168) 973 1,761 (17,685) (327) Total income tax expense (benefit) $ 3,494 $ (15,640) $ 6,430 A breakdown of the Company’ s income (loss) b efore income taxes is as follows (in thousands): February 3, January 28, January 29, Domestic $ 9,159 $ (98,539) $ 24,881 Foreign 2,173 3,515 1,767 Total income (loss) before income taxes $ 11,332 $ (95,024) $ 26,648 A reconciliation of the income tax expense (benefit) t o the amount computed at the federal statutory rate is as follows (in thousands): February 3, January 28, January 29, Federal taxes at statutory rate $ 2,380 21.0 % $ (19,955) 21.0 % $ 5,596 21.0 % State and local income taxes, net of federal benefit 754 6.7 (1,063) 1.1 1,175 4.4 Impact related to redeemable noncontrolling interest — — 4,126 (4.3) (508) (1.9) (Windfall) shortfall from stock-based compensation (47) (0.4) 271 (0.3) (472) (1.8) Impact of foreign rate differential (109) (1.0) (167) 0.2 (82) (0.3) Change in uncertain tax positions (30) (0.3) (15) — 32 0.1 Non-deductible executive compensation 487 4.3 1,150 (1.2) 471 1.8 Other 59 0.5 13 — 218 0.8 Total income tax expense (benefit) $ 3,494 30.8 % $ (15,640) 16.5 % $ 6,430 24.1 % 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 3, January 28, Deferred tax assets: Operating lease liabilities $ 22,511 $ 25,262 Compensation and benefits 2,815 2,602 Inventories 4,122 2,298 Investment in subsidiary 12,904 14,595 Other 1,654 1,519 Subtotal deferred tax assets 44,006 46,276 Less: valuation allowances (48) (48) Total deferred tax assets 43,958 46,228 Deferred tax liabilities: Operating lease assets (17,863) (19,858) Property, plant, and equipment (2,930) (2,966) Other (2,810) (1,862) Total deferred tax liabilities (23,603) (24,686) Net deferred tax assets $ 20,355 $ 21,542 The Company considered both positive and negative evidence to determine whether it was more likely than not that some, or all, of the deferred tax assets would not be realized in its valuation allowance assessment. Based on this assessment, t he Company recorded immaterial valuation allowances as of February 3, 2024 and January 28, 2023 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 3, January 28, January 29, Beginning balance $ 73 $ 92 $ 55 Net increases in unrecognized tax benefits as a result of current year activity — 2 37 Lapse of statute of limitations (34) (21) — Ending balance $ 39 $ 73 $ 92 As of February 3, 2024, the Company had an immaterial amount of total unrecognized tax benefits, net of federal benefit, that 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 January 28, 2023 and January 29, 2022. Unrecognized tax benefits are included within other 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 2021 and forward. With a few exceptions, the Company is subject to audit by various state and foreign taxing authorities for fisc al 2020 thro ugh the current fiscal year. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 03, 2024 | |
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 $2.9 million, $3.2 million, and $4.9 million in the fiscal years ended February 3, 2024, January 28, 2023, and January 29, 2022, respectively. Awards of Restricted-Stock Units The Company reserved 3,000,000 shares of common stock for issuance or transfer under the 2020 Equity and Incentive Plan, which allows for grants of restricted stock units, as well as other equity awards. During the fiscal year ended February 3, 2024, the Company granted a total of 753,454 time -based and performance-based restricted stock units to certain employees and non-employee directors under the 2020 Equity and Incentive Plan with an aggregate fair value o f $4.4 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 recognizes 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 recognizes 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 3, 2024 (units in thousands): Time-based Performance-based Number of Weighted- Number of Weighted- Nonvested units outstanding at January 28, 2023 965 $ 5.74 523 $ 4.71 Granted 438 5.89 315 5.82 Change due to performance condition achievement — — 229 5.39 Vested (529) 6.18 (94) 4.08 Forfeited (191) 9.02 (133) 10.79 Nonvested units outstanding at February 3, 2024 683 $ 4.58 840 $ 4.42 As of February 3, 2024, there w as $4.0 million |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 03, 2024 | |
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 Company filed a motion for summary judgement asking the Court to dismiss all claims with prejudice and grant judgement on its counterclaim. On January 4, 2023, the Court granted the Company’s motion for summary judgment dismissing Vesi’s claims and also granted judgment on the Company’s counterclaims against the principals of Vesi for an immaterial amount. Vesi appealed this decision. On November 9, 2023 the United States Court of Appeals for the Sixth Circuit issued an opinion affirming the District Court’s judgment in favor of the Company dismissing Vesi’s claims and granting the Company’s counterclaims. |
401(k) Profit Sharing Plan and
401(k) Profit Sharing Plan and Trust | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024, January 28, 2023, and January 29, 2022 , no discret ionary 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 3, 2024 $ 1,897 Fiscal year ended January 28, 2023 1,854 Fiscal year ended January 29, 2022 1,929 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Feb. 03, 2024 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Charitable Contributions . The Vera Bradley Foundation for Breast Cancer (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 $0.1 million as of February 3, 2024 and January 28, 2023. 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 3, 2024 $ 139 Fiscal year ended January 28, 2023 191 Fiscal year ended January 29, 2022 160 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net income (loss) 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 (loss) per share are as follows (in thousands, except per share data): Fiscal Year Ended February 3, January 28, January 29, Numerator: Net income (loss) $ 7,838 $ (79,384) $ 20,218 Less: Net (loss) income attributable to redeemable noncontrolling interest — (19,649) 2,380 Net income (loss) attributable to Vera Bradley, Inc. $ 7,838 $ (59,735) $ 17,838 Denominator: Weighted-average number of common shares (basic) 30,833 31,503 33,785 Dilutive effect of stock-based awards 481 — 652 Weighted-average number of common shares (diluted) 31,314 31,503 34,437 Net income (loss) per share attributable to Vera Bradley, Inc.: Basic $ 0.25 $ (1.90) $ 0.53 Diluted $ 0.25 $ (1.90) $ 0.52 As of February 3, 2024, 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. As of January 28, 2023, all potential common shares were excluded from the diluted share calculation because they were anti-dilutive due to the net loss in the period. As of January 29, 2022, 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. 03, 2024 | |
Equity [Abstract] | |
Common Stock | Common Stock On November 29, 2018, the Company's board of directors approved a share repurchase plan (the “2018 Share Repurchase Program”) authorizing up to $50.0 million of repurchases of shares of the Company's common stock. On December 3, 2020, the 2018 Share Repurchase Program was extended through December 11, 2021. In December 2021, the Company's board of directors approved a new share repurchase plan (the “2021 Share Repurchase Program”) which authorized Company management to utilize up to $50.0 million of available cash for repurchases of shares of the Company's common stock. The 2021 Share Repurchase Program went into effect beginning December 13, 2021 and expires in December 2024. During the fiscal year ended February 3, 2024, the Company purchased and held 359,554 shares at an average price of $6.10 per share, excluding commissions, for an aggregate amount o f $2.2 million , under the 2021 Share Repurchase Program. During the fiscal year ended January 28, 2023, the Company purchased and held 2,820,949 shares at an average price of $6.40 per share, excluding commissions, for an aggregate amount of $18.1 million, under the 2021 Share Repurchase Program. During the fiscal year ended January 29, 2022, the Company purchased and held 865,534 shares at an average price of $8.94 per share, excluding commissions, for an aggregate amount of $7.7 million, under the 2018 and 2021 Share Repurchase Programs. As of February 3, 2024, there w as $25.5 million remain ing available to repurchase shares of the Company’s common stock under the 2021 Share Repurchase Program. As of February 3, 2024, the Company held as treasury share s 12,439,244 s hares of its common stock at an average price of $10.86 p er share, excluding commissions, for an aggregate carrying amount o f $135.1 million. The Company’s treasury shares may be issued under the 2020 Equity and Incentive Plan, or for other corporate purposes. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Feb. 03, 2024 | |
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. On January 30, 2023, the Company purchased the remaining 25% interest in Pura Vida. Refer to Note 2 herein for additional information. Changes in redeemable noncontrolling interest for the fifty-three weeks ended February 3, 2024, and fifty-two weeks ended January 28, 2023 and January 29, 2022 were as follows (in thousan ds): Balance at January 30, 2021 $ 29,809 Net income attributable to redeemable noncontrolling interest 2,380 Distributions to redeemable noncontrolling interest (1,215) Balance at January 29, 2022 $ 30,974 Net loss attributable to redeemable noncontrolling interest (19,649) Distributions to redeemable noncontrolling interest (613) Balance at January 28, 2023 $ 10,712 Adjustment for purchase of noncontrolling interest (10,712) Balance at February 3, 2024 $ — |
Intangible Assets
Intangible Assets | 12 Months Ended |
Feb. 03, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following tables detail the carrying value of the Company’s intangible assets related to the acquisition of a majority interest in Pura Vida. February 3, 2024 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible asset Customer Relationships $ 24,208 $ (22,872) $ 1,336 Total definite-lived intangible assets 24,208 (22,872) 1,336 Indefinite-lived intangible asset Pura Vida Brand (2) 6,237 — 6,237 Total intangible assets $ 30,445 $ (22,872) $ 7,573 (1) Amortization expense is recorded within the Pura Vida segment. (2) An impairment charge of $5.4 million was recorded within the Pura Vida segment during fourth quarter of fiscal 2024. January 28, 2023 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible assets Customer Relationships $ 24,208 $ (19,956) $ 4,252 Non-competition Agreements 788 (788) — Total definite-lived intangible assets 24,996 (20,744) 4,252 Indefinite-lived intangible asset Pura Vida Brand (2) 11,666 — 11,666 Total intangible assets $ 36,662 $ (20,744) $ 15,918 (1) Amortization expense is recorded within the Pura Vida segment. (2) Impairment charges of $9.9 million and $15.1 million were recorded within the Pura Vida segment during the second and fourth quarters of fiscal 2023. The amortization expense for intangible assets is as fo llows (in thousands): Amortization Expense Fiscal 2025 1,336 Total $ 1,336 Fiscal 2024 Impairment The Company pe rformed its fiscal 2024 annual impairment test over the indefinite-lived Pura Vida brand during the second quarter of fiscal 2024 and no impairment was recorded. In the fourth quarter of fiscal 2024, the Company identified triggering events and determined that the fair value of the Pura Vida brand was less than its carrying value, recording an impairment charge of $5.4 million . The Company continued to experience lower sales from its Pura Vida e-commerce channel due to a continued decline in social and digital media effectiveness, as well as continued lower sales from the wholesale channel. These lower sales volumes had a negative impact on the fair value determination of the aforementioned assets. The fair value of the Pura Vida brand was estimated using a relief-from-royalty method. The estimates and assumptions used in the determination of the fair value of the Pura Vida brand included the projected revenue growth, long-term growth rate, the royalty rate, and discount rate. While we consider our assumptions in the determination of the fair value of these assets to be reasonable, they are complex and highly subjective. Adverse changes in key assumptions in future periods may result in further declines in the fair value estimates of the Pura Vida brand below its carrying value resulting in additional impairment charges, which could be material. Our key assumptions (as described above in the valuation methodologies used in the determination of fair value) may be impacted by macroeconomic conditions, including inflationary pressures and the impact on consumer discretionary spending, supply chain challenges, as well as a sustained decline in stock price and potential changes in business strategy. Refer to Note 2 herein for additional information regarding fair value measurement. Fiscal 2023 Impairments The Company performed its fiscal 2023 annual impairment test over goodwill and the indefinite-lived Pura Vida brand during the second quarter of fiscal 2023. The fair value of the Pura Vida reporting unit was determined using a combination of an income-based approach (discounted cash flows) and a market-based approach (guideline transaction method). The discounted cash flow method involved subjective estimates and assumptions such as projected revenue growth, operating profit, and the discount rate. The guideline transaction method involved transaction multiples derived from the acquisition of controlling interests in stocks of companies that are engaged in the same or similar lines of business as the reporting unit. During the assessment for the fiscal 2023 annual test, it was determined that the fair values of the Pura Vida reporting unit and the Pura Vida brand were less than their carrying values. As a result, the Company recorded an impairment charge of $9.9 million and $19.4 million for the Pura Vida brand and goodwill, respectively, during the second quarter of fiscal 2023 within the Pura Vida segment. We identified triggering events during the subsequent quarters of fiscal 2023, due to lower operating profit compared to previous forecasts, as well as changes in the long-range plan such as a pause on the opening of new Pura Vida retail stores. We performed further testing on the Pura Vida reporting unit and Pura Vida brand as a result. These analyses caused additional impairment charges to be recorded in the fourth quarter of fiscal 2023 of $15.1 million and $24.9 million for the Pura Vida brand and goodwill, respectively, which reflects a full goodwill impairment. Collectively, impairment charges for the Pura Vida brand and goodwill during fiscal 2023 totaled $69.3 million. |
Cost Saving Initiatives and Oth
Cost Saving Initiatives and Other Charges | 12 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Cost Savings Initiatives and Other Charges Cost Savings Initiatives and Severance Charges During fiscal 2023, the Company began implementation of its targeted cost reductions, which are expected to be fully realized in fiscal 2025. Expense savings are being derived across various areas of the Company, including retail store efficiencies, marketing expenses, information technology contracts, professional services, logistics and operational costs, and corporate payroll. The Company incurred the following charges during t he 53-w eeks ended February 3, 2024 (in thousands): Reportable Segment VB Direct VB Indirect Pura Vida Unallocated Corporate Expenses Total Expense Severance charges (1) $ 574 $ 309 $ 79 $ 1,951 $ 2,913 Consulting fees and other costs (2) — — — 105 105 Total (3) $ 574 $ 309 $ 79 $ 2,056 $ 3,018 (1) Includes former CFO severance (2) Related to professional fees (3) Charges are recorded within selling, general, and administrative expenses A summary of charges and related liabilities associated with the cost savings initiatives and severance charges are as follows (in thousands): Severance Charges (1) Consulting Fees and Other Costs Liability as of January 28, 2023 $ 3,083 $ 60 Fiscal 2024 charges $ 2,913 $ 105 Cash payments (5,455) (165) Liability as of February 3, 2024 $ 541 $ — (1) Remaining liability is recorded within accrued employment costs The Company incurred the following charges during the 52-weeks ended January 28, 2023: Reportable Segment VB Direct VB Indirect Pura Vida Unallocated Corporate Expenses Total Expense Severance charges and cash retention payment acceleration charges (1) $ 15 $ — $ 422 $ 8,745 $ 9,182 Consulting fees and other costs (2) 302 — 179 3,976 4,457 Total (3) $ 317 $ — $ 601 $ 12,721 $ 13,639 (1) Includes CEO retirement severance and Vera Bradley brand executive officer severance (2) Includes $3.9 million for fees related to cost savings initiatives and CEO search; $0.3 million for concept brand exit costs; and $0.3 million for certain professional fees (3) $13.4 million of the charges are recorded within selling, general, and administrative expenses and $0.2 million are recorded within cost of sales Severance Charges and Cash Retention Payment Acceleration Charges (1) Consulting Fees and Other Costs (2) Fiscal 2023 charges $ 9,182 $ 4,457 Cash payments (6,083) (4,095) Non-cash charges and adjustments (16) (302) Liability as of January 28, 2023 $ 3,083 $ 60 (1) Remaining liability is recorded within accrued employment costs (2) Remaining liability is recorded within accounts payable There were no similar charges during fiscal year 2022. Other Charges Fiscal 2024. During the fifty-three weeks ended February 3, 2024, the Company recorded within selling, general, and administrative expenses $0.8 million of professional fees associated with strategic initiatives and other costs. Collectively, $0.2 million was recorded within the Pura Vida segment and $0.6 million was recorded within corporate unallocated expenses. Fiscal 2023 . During the fifty-two weeks ended January 28, 2023, the Company recorded within cost of sales $18.1 million of inventory adjustments which consisted of: $8.9 million of excess Pura Vida inventory recognized in the fourth quarter as a result of a change in the Company’s liquidation strategy during the quarter; $6.4 million related to the exit of certain technology products and excess mask products recognized in the second and fourth quarters; $1.2 million of valuation adjustments to write discounted inventory down to its net realizable value recognized in the fourth quarter; and $1.6 million for purchase order cancellation fees related to spring 2023 product and certain raw materials. During the fifty-two weeks ended January 28, 2023, the Company recorded within selling, general, and administrative expenses: $1.0 million for CEO sign-on bonus and relocation expenses; $0.4 million for former CEO salary retention payments and stock-based compensation associated with retirement; and $0.2 million of professional fees associated with strategic initiatives and other costs. Collectively, $6.2 million was recorded within the Direct segment, $1.7 million was recorded within the Indirect segment,$10.2 million was recorded within the Pura Vida segment, and $1.6 million was recorded within corporate unallocated expenses. There we re no simila r charges during fiscal year 2022. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 03, 2024 | |
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 outlet stores, the Vera Bradley websites (verabradley.com, outlet.verabradley.com), 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 approximate ly 1,600 locatio ns, 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 bran d. No customer accounted for 10% or more of the Company’s net revenues during fiscal years 2024, 2023, and 2022. The Pura Vida segment represents revenues generated through the Pura Vida websites (www.puravidabracelets.com, www.puravidabracelets.ca, and www.puravidabracelets.eu), Pura Vida retail stores, 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 (loss) information for the Company’s reportable segments consisted of the following (in thousands): Fiscal Year Ended February 3, January 28, January 29, Segment net revenues: VB Direct $ 309,910 $ 328,231 $ 354,875 VB Indirect 73,803 73,316 66,001 Pura Vida 87,073 98,414 119,577 Total $ 470,786 $ 499,961 $ 540,453 Segment operating income (loss): VB Direct $ 61,873 $ 51,097 $ 73,506 VB Indirect 24,279 22,965 20,323 Pura Vida (2,321) (78,591) 9,519 Total $ 83,831 $ (4,529) $ 103,348 Reconciliation: Segment operating income (loss): $ 83,831 $ (4,529) $ 103,348 Less: Unallocated corporate expenses (73,389) (90,342) (76,437) Operating income (loss) $ 10,442 $ (94,871) $ 26,911 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, accessories, travel, apparel/footwear, and home items. Other revenues from Vera Bradley external customers primarily include revenues associated with our freight, stationery, licensing, merchandising, and gift card breakage. Revenues from external customers for Pura Vida brand products are primarily attributable to sales of accessories and apparel. 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. As of February 3, 2024 and January 28, 2023, substantially all of the Company’s long-lived assets were located in the United States. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to Vera Bradley, Inc. | $ 7,838 | $ (59,735) | $ 17,838 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Feb. 03, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of the Company (Pol
Description of the Company (Policies) | 12 Months Ended |
Feb. 03, 2024 | |
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, including Pura Vida. 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 year 2024, ending on February 3, 2024 reflected a 53-week period. Fiscal years 2023 and 2022, ending on January 28, 2023 and January 29, 2022 respectively, each reflected a 52-week period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2024 | |
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, and sales return allowances. Actual results |
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. Substantially all inventory relates to finished goods. |
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. Leas ehold improvements are amortized over the shorter of the life of the asset or the lease term. Lease terms typically range from three 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 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 |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable 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. 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 and Pura Vida full-line and 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 Provision Allowances Balance at End Fiscal year ended February 3, 2024 $ 1,801 $ 9,697 $ (10,076) $ 1,422 Fiscal year ended January 28, 2023 1,582 12,320 (12,101) 1,801 Fiscal year ended January 29, 2022 1,714 17,043 (17,175) 1,582 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 approxima tely $1.1 million and $0.8 million as of February 3, 2024 and January 28, 2023, respectively. The provision for doubtful accounts is based upon the likelihood of default expected during the life of the receivable. |
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 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.” Refer to Note 4 herein for additional information regarding the Company's leases. |
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 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 14 herein for additional information regarding the noncontrolling interest in Pura Vida as of February 3, 2024. 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 As of February 3, 2024 identifiable intangible assets consisted of the Pura Vida brand and customer relationships. Goodwill was fully impaired during fiscal 2023, leavi ng no balance. Our Pura Vida brand, an indefinite-lived asset, is not amortized but assessed for impairment at least annually or whenever events or circumstances indicate that the brand may be impaired . The Pura Vida customer relationship, a definite-lived intangible asset, is amortized over its estimated useful life and is also subject to impairment testing, similar to the Company’s other long-lived assets. We test the Pura Vida brand for impairment annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Our annual impairment test may be completed through a qualitative assessment to determine if the fair value of the Pura Vida brand is more likely than not greater than the carrying amount. If we elect to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value exceeds the fair value, we test for impairment using a quantitative process. Our quantitative process includes comparing the carrying value to the fair value of the Pura Vida brand, with any excess recognized as an impairment loss. Fair value is estimated using a relief-from-royalty method. The estimates and assumptions used in the determination of the fair value of the Pura Vida brand include the projected revenue growth, long-term growth rate, the royalty rate, and discount rate. Prior to fiscal 2024, the Company performed an annual impairment test for its goodwill. As of February 3, 2024, the carrying value of the Pura Vida brand was $6.2 million. For the annual impairment analysis performed in the second quarter of fiscal 2024, the Company performed a quantitative analysis and no impairment was recorded. Subsequent to the annual impairment test, the Company performed an additional quantitative analysis of the carrying value of the Pura Vida brand due to triggering events and recorded an impairment charge of $5.4 million during the fourth quarter of fiscal 2024, further described in Note 15 herein. For the annual impairment analysis performed during fiscal 2023, the Company performed a quantitative analysis, as well as subsequent analyses due to triggering events, further described in Note 15 herein. Impairment charges of $44.3 million and $25.0 million were recorded during fiscal 2023 for goodwill and the Pura Vida brand, respectively. The estimated fair value of the Pura Vida brand is subject to change as a result of many factors, including changing economic conditions. Should actual and estimated cash flows change from the estimates we used in our fiscal 2024 impairment analysis, we may record additional impairment charges in future years. |
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 had the right to sell all of the Remaining Pura Vida Interest to the Company, and the Company had 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 was 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 was delivered by a relevant party. In the event of a change in control of the Company, the parties had the right to 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 was adjusted each reporting period for income (or loss) attributable to the noncontrolling interest. A measurement period adjustment, if any, was then made to adjust the noncontrolling interest to the higher of the redemption value or carrying value each reporting period. These adjustments were recognized through retained earnings and were 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 adjusted 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 was 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 required 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 were based on our annual and long-term business plans. Discount rates reflected market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. On January 23, 2023, the Company and certain of its subsidiaries entered into an Interest Purchase Agreement (the “Interest Purchase Agreement”) with Creative Genius Holdings, Inc. a California corporation, Creative Genius Investments, Inc., a California corporation, Griffin Thall and Paul Goodman (collectively “Sellers”) to purchase the remaining 25% of the outstanding membership interests (the "Remaining Pura Vida Interests") of Pura Vida. The closing date of the Transaction was January 30, 2023. Pursuant to the Interest Purchase Agreement, and subject to the terms and conditions thereof, on the closing date, the Company indirectly acquired the Remaining Pura Vida Interests (the “Transaction”) in exchange for cash consideration consisting of approximately $10 million payable at closing, subject to certain adjustments. The Transaction was not subject to financing conditions. The Company’s existing available cash and cash equivalents funded the purchase price. Following completion of the Transaction, the Company owned one hundred percent (100%) of the ownership interests in Pura Vida. The Interest Purchase Agreement also included certain non-competition and customer, supplier and employee non-solicitation and non-interference covenants from the Sellers in favor of the Company during the four-year period beginning on the closing date of the Transaction. The Interest Purchase Agreement provides that, as of the closing of the Transaction, all rights and obligations of the Company and the Sellers under any agreements among the parties, including the Put/Call Agreement, were terminated. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation using the fair-value recognition provisions of ASC 718, Stock Compensation |
Other Income and Advertising Costs | Advertising Costs The Company expenses advertising costs at the time the promotion first appears in media, in stores, or on its websites, and includes those costs in selling, general, and administrative expenses in the Consolidated Statements of Operations. Total advertising expense was as follows (in thousands): Fiscal year ended February 3, 2024 $ 54,999 Fiscal year ended January 28, 2023 54,941 Fiscal year ended January 29, 2022 61,223 |
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, and accounts payable as of February 3, 2024 and January 28, 2023, 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. When measuring deferred tax assets, the Company considers both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets will be realized. This evidence includes recent operating results, projected future taxable income, the reversal of existing taxable differences, tax planning strategies, among other factors. When necessary, a valuation allowance is recorded to reduce the deferred tax assets to their anticipated realizable value. 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 and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-06, "Disclosure Improvements." The amendments in this update modify the disclosure or presentation requirements of a variety of topics in the codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. The amendments in this ASU are effective for public business entities for interim periods beginning after June 30, 2027. The Company is currently evaluating the impacts of the provisions of ASU 2023-06. In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures". This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in additional required disclosures when adopted. The Company is currently evaluating this guidance to determine the impact on its disclosures; however, adoption will not impact our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures". This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. The new standard is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating this guidance to determine the impact on its disclosures; however, adoption will not impact our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
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 Provision Allowances Balance at End Fiscal year ended February 3, 2024 $ 1,801 $ 9,697 $ (10,076) $ 1,422 Fiscal year ended January 28, 2023 1,582 12,320 (12,101) 1,801 Fiscal year ended January 29, 2022 1,714 17,043 (17,175) 1,582 |
Schedule of Total Advertising Expense | Total advertising expense was as follows (in thousands): Fiscal year ended February 3, 2024 $ 54,999 Fiscal year ended January 28, 2023 54,941 Fiscal year ended January 29, 2022 61,223 |
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 3, 2024 and January 28, 2023 (in thousands): Level 1 Level 2 Level 3 February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 Cash equivalents (1) $ 55,262 $ 360 $ — $ — $ — $ — (1) Cash equivalents primarily represent money market funds that have a maturity of three months or less at the date of purchase. Due to its 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. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents the Company's net revenues disaggregated by product category for the fifty-three weeks ended February 3, 2024, and fifty-two weeks ended January 28, 2023 and January 29, 2022 (in thousands): Fifty-Three Weeks Ended February 3, 2024 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 119,705 $ 39,609 $ 407 $ 159,721 Travel 75,927 14,922 — 90,849 Accessories 52,930 9,547 82,731 145,208 Home 37,587 4,022 — 41,609 Apparel/Footwear 16,526 2,461 1,450 20,437 Other 7,235 (1) 3,242 (2) 2,485 (3) 12,962 Total net revenues $ 309,910 (4) $ 73,803 (5) $ 87,073 (4) $ 470,786 (1) Primarily includes net revenues from stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $71.4 million of net revenues related to product sales recognized at a point in time and $2.4 million of net revenues related to sales-based royalties recognized over time. Fifty-Two Weeks Ended January 28, 2023 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 131,432 $ 38,587 $ 1,249 $ 171,268 Travel 79,585 14,283 — 93,868 Accessories 58,932 10,312 90,743 159,987 Home 38,040 4,233 — 42,273 Apparel/Footwear (6) 12,701 2,236 3,844 18,781 Other 7,541 (1) 3,665 (2) 2,578 (3) 13,784 Total net revenues $ 328,231 (4) $ 73,316 (5) $ 98,414 (4) $ 499,961 (1) Primarily includes net revenues from stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $70.7 million of net revenues related to product sales recognized at a point in time and $2.6 million of net revenues related to sales-based royalties recognized over time. (6) Includes mask sales. Fifty-Two Weeks Ended January 29, 2022 VB Direct Segment VB Indirect Segment Pura Vida Segment Total Product categories Bags $ 138,910 $ 33,125 $ 974 $ 173,009 Travel 82,507 12,150 — 94,657 Accessories 65,219 10,021 111,248 186,488 Home 41,987 4,416 — 46,403 Apparel/Footwear (6) 18,592 2,406 4,110 25,108 Other 7,660 (1) 3,883 (2) 3,245 (3) 14,788 Total net revenues $ 354,875 (4) $ 66,001 (5) $ 119,577 (4) $ 540,453 (1) Primarily includes net revenues from stationery, freight, and gift card breakage. (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. (3) Related to freight. (4) Net revenues were related to product sales recognized at a point in time. (5) $63.1 million of net revenues related to product sales recognized at a point in time and $2.9 million of net revenues related to sales-based royalties recognized over time. (6) Includes mask sales. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 | The following 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 Statements of Operations for the fiscal years ended February 3, 2024, January 28, 2023, and January 29, 2022 (in thousands): Fifty-Three Weeks Ended Fifty-Two Weeks Ended February 3, 2024 January 28, 2023 January 29, 2022 Operating lease cost $ 25,826 $ 25,118 $ 25,200 Variable lease cost 5,295 5,975 7,560 Short-term lease cost 578 476 515 Less: Sublease income (1) (420) (234) — Total lease cost $ 31,279 $ 31,335 $ 33,275 (1) Related to the sublease of a former Company location. |
Supplemental operating cash flow information | Supplemental operating cash flow information was as follows (in thousands): Fifty-Three Weeks Ended Fifty-Two Weeks Ended February 3, 2024 January 28, 2023 January 29, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 29,554 $ 30,014 $ 33,517 Right-of-use assets increase as a result of new and modified operating lease liabilities, net $ 9,859 $ 20,379 $ 11,584 |
Maturity Analysis of Operating Lease Liabilities | Maturities of the Company's operating lease liabilities (undiscounted) reconciled to its lease liability as of February 3, 2024 were as follows (in thousands): Operating Leases Fiscal 2025 $ 21,921 Fiscal 2026 19,123 Fiscal 2027 14,413 Fiscal 2028 10,962 Fiscal 2029 8,703 Thereafter 16,988 Total remaining obligations 92,110 Less: Interest (11,105) Present value of lease liabilities $ 81,005 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following (in thousands): February 3, January 28, Land and land improvements $ 5,981 $ 5,981 Building and building improvements 46,203 46,276 Furniture, fixtures, leasehold improvements, computer equipment and software 86,584 86,180 Equipment and vehicles 28,493 28,528 Construction in progress 302 489 167,563 167,454 Less: Accumulated depreciation and amortization (113,307) (108,780) Property, plant, and equipment, net $ 54,256 $ 58,674 |
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 3, 2024 $ 7,968 Fiscal year ended January 28, 2023 8,854 Fiscal year ended January 29, 2022 9,315 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of the income tax expense (benefit) were as follows (in thousands): February 3, January 28, January 29, Current: Federal $ 918 $ 680 $ 5,923 Foreign 337 562 279 State 478 803 555 1,733 2,045 6,757 Deferred: Federal 1,322 (15,517) (1,300) State 439 (2,168) 973 1,761 (17,685) (327) Total income tax expense (benefit) $ 3,494 $ (15,640) $ 6,430 |
Schedule of Company's Income Before Income Taxes | A breakdown of the Company’ s income (loss) b efore income taxes is as follows (in thousands): February 3, January 28, January 29, Domestic $ 9,159 $ (98,539) $ 24,881 Foreign 2,173 3,515 1,767 Total income (loss) before income taxes $ 11,332 $ (95,024) $ 26,648 |
Schedule of Reconciliation of Income Tax Expense to Amount Computed at Federal Statutory Rate | A reconciliation of the income tax expense (benefit) t o the amount computed at the federal statutory rate is as follows (in thousands): February 3, January 28, January 29, Federal taxes at statutory rate $ 2,380 21.0 % $ (19,955) 21.0 % $ 5,596 21.0 % State and local income taxes, net of federal benefit 754 6.7 (1,063) 1.1 1,175 4.4 Impact related to redeemable noncontrolling interest — — 4,126 (4.3) (508) (1.9) (Windfall) shortfall from stock-based compensation (47) (0.4) 271 (0.3) (472) (1.8) Impact of foreign rate differential (109) (1.0) (167) 0.2 (82) (0.3) Change in uncertain tax positions (30) (0.3) (15) — 32 0.1 Non-deductible executive compensation 487 4.3 1,150 (1.2) 471 1.8 Other 59 0.5 13 — 218 0.8 Total income tax expense (benefit) $ 3,494 30.8 % $ (15,640) 16.5 % $ 6,430 24.1 % |
Schedule of Components of Deferred Taxes Assets and Liabilities. | Significant components of deferred tax assets and liabilities were as follows (in thousands): February 3, January 28, Deferred tax assets: Operating lease liabilities $ 22,511 $ 25,262 Compensation and benefits 2,815 2,602 Inventories 4,122 2,298 Investment in subsidiary 12,904 14,595 Other 1,654 1,519 Subtotal deferred tax assets 44,006 46,276 Less: valuation allowances (48) (48) Total deferred tax assets 43,958 46,228 Deferred tax liabilities: Operating lease assets (17,863) (19,858) Property, plant, and equipment (2,930) (2,966) Other (2,810) (1,862) Total deferred tax liabilities (23,603) (24,686) Net deferred tax assets $ 20,355 $ 21,542 |
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 3, January 28, January 29, Beginning balance $ 73 $ 92 $ 55 Net increases in unrecognized tax benefits as a result of current year activity — 2 37 Lapse of statute of limitations (34) (21) — Ending balance $ 39 $ 73 $ 92 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024 (units in thousands): Time-based Performance-based Number of Weighted- Number of Weighted- Nonvested units outstanding at January 28, 2023 965 $ 5.74 523 $ 4.71 Granted 438 5.89 315 5.82 Change due to performance condition achievement — — 229 5.39 Vested (529) 6.18 (94) 4.08 Forfeited (191) 9.02 (133) 10.79 Nonvested units outstanding at February 3, 2024 683 $ 4.58 840 $ 4.42 |
401(k) Profit Sharing Plan an_2
401(k) Profit Sharing Plan and Trust (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024 $ 1,897 Fiscal year ended January 28, 2023 1,854 Fiscal year ended January 29, 2022 1,929 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024 $ 139 Fiscal year ended January 28, 2023 191 Fiscal year ended January 29, 2022 160 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Net Income Per Share | The components of basic and diluted net income (loss) per share are as follows (in thousands, except per share data): Fiscal Year Ended February 3, January 28, January 29, Numerator: Net income (loss) $ 7,838 $ (79,384) $ 20,218 Less: Net (loss) income attributable to redeemable noncontrolling interest — (19,649) 2,380 Net income (loss) attributable to Vera Bradley, Inc. $ 7,838 $ (59,735) $ 17,838 Denominator: Weighted-average number of common shares (basic) 30,833 31,503 33,785 Dilutive effect of stock-based awards 481 — 652 Weighted-average number of common shares (diluted) 31,314 31,503 34,437 Net income (loss) per share attributable to Vera Bradley, Inc.: Basic $ 0.25 $ (1.90) $ 0.53 Diluted $ 0.25 $ (1.90) $ 0.52 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of changes in redeemable noncontrolling interest | Changes in redeemable noncontrolling interest for the fifty-three weeks ended February 3, 2024, and fifty-two weeks ended January 28, 2023 and January 29, 2022 were as follows (in thousan ds): Balance at January 30, 2021 $ 29,809 Net income attributable to redeemable noncontrolling interest 2,380 Distributions to redeemable noncontrolling interest (1,215) Balance at January 29, 2022 $ 30,974 Net loss attributable to redeemable noncontrolling interest (19,649) Distributions to redeemable noncontrolling interest (613) Balance at January 28, 2023 $ 10,712 Adjustment for purchase of noncontrolling interest (10,712) Balance at February 3, 2024 $ — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables detail the carrying value of the Company’s intangible assets related to the acquisition of a majority interest in Pura Vida. February 3, 2024 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible asset Customer Relationships $ 24,208 $ (22,872) $ 1,336 Total definite-lived intangible assets 24,208 (22,872) 1,336 Indefinite-lived intangible asset Pura Vida Brand (2) 6,237 — 6,237 Total intangible assets $ 30,445 $ (22,872) $ 7,573 (1) Amortization expense is recorded within the Pura Vida segment. (2) An impairment charge of $5.4 million was recorded within the Pura Vida segment during fourth quarter of fiscal 2024. January 28, 2023 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible assets Customer Relationships $ 24,208 $ (19,956) $ 4,252 Non-competition Agreements 788 (788) — Total definite-lived intangible assets 24,996 (20,744) 4,252 Indefinite-lived intangible asset Pura Vida Brand (2) 11,666 — 11,666 Total intangible assets $ 36,662 $ (20,744) $ 15,918 (1) Amortization expense is recorded within the Pura Vida segment. (2) Impairment charges of $9.9 million and $15.1 million were recorded within the Pura Vida segment during the second and fourth quarters of fiscal 2023. |
Schedule of Indefinite-Lived Intangible Assets | The following tables detail the carrying value of the Company’s intangible assets related to the acquisition of a majority interest in Pura Vida. February 3, 2024 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible asset Customer Relationships $ 24,208 $ (22,872) $ 1,336 Total definite-lived intangible assets 24,208 (22,872) 1,336 Indefinite-lived intangible asset Pura Vida Brand (2) 6,237 — 6,237 Total intangible assets $ 30,445 $ (22,872) $ 7,573 (1) Amortization expense is recorded within the Pura Vida segment. (2) An impairment charge of $5.4 million was recorded within the Pura Vida segment during fourth quarter of fiscal 2024. January 28, 2023 in thousands Gross Basis Accumulated Amortization (1) Carrying Amount Definite-lived intangible assets Customer Relationships $ 24,208 $ (19,956) $ 4,252 Non-competition Agreements 788 (788) — Total definite-lived intangible assets 24,996 (20,744) 4,252 Indefinite-lived intangible asset Pura Vida Brand (2) 11,666 — 11,666 Total intangible assets $ 36,662 $ (20,744) $ 15,918 (1) Amortization expense is recorded within the Pura Vida segment. (2) Impairment charges of $9.9 million and $15.1 million were recorded within the Pura Vida segment during the second and fourth quarters of fiscal 2023. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The amortization expense for intangible assets is as fo llows (in thousands): Amortization Expense Fiscal 2025 1,336 Total $ 1,336 |
Cost Saving Initiatives and O_2
Cost Saving Initiatives and Other Charges - (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | The Company incurred the following charges during t he 53-w eeks ended February 3, 2024 (in thousands): Reportable Segment VB Direct VB Indirect Pura Vida Unallocated Corporate Expenses Total Expense Severance charges (1) $ 574 $ 309 $ 79 $ 1,951 $ 2,913 Consulting fees and other costs (2) — — — 105 105 Total (3) $ 574 $ 309 $ 79 $ 2,056 $ 3,018 (1) Includes former CFO severance (2) Related to professional fees (3) Charges are recorded within selling, general, and administrative expenses A summary of charges and related liabilities associated with the cost savings initiatives and severance charges are as follows (in thousands): Severance Charges (1) Consulting Fees and Other Costs Liability as of January 28, 2023 $ 3,083 $ 60 Fiscal 2024 charges $ 2,913 $ 105 Cash payments (5,455) (165) Liability as of February 3, 2024 $ 541 $ — (1) Remaining liability is recorded within accrued employment costs The Company incurred the following charges during the 52-weeks ended January 28, 2023: Reportable Segment VB Direct VB Indirect Pura Vida Unallocated Corporate Expenses Total Expense Severance charges and cash retention payment acceleration charges (1) $ 15 $ — $ 422 $ 8,745 $ 9,182 Consulting fees and other costs (2) 302 — 179 3,976 4,457 Total (3) $ 317 $ — $ 601 $ 12,721 $ 13,639 (1) Includes CEO retirement severance and Vera Bradley brand executive officer severance (2) Includes $3.9 million for fees related to cost savings initiatives and CEO search; $0.3 million for concept brand exit costs; and $0.3 million for certain professional fees (3) $13.4 million of the charges are recorded within selling, general, and administrative expenses and $0.2 million are recorded within cost of sales Severance Charges and Cash Retention Payment Acceleration Charges (1) Consulting Fees and Other Costs (2) Fiscal 2023 charges $ 9,182 $ 4,457 Cash payments (6,083) (4,095) Non-cash charges and adjustments (16) (302) Liability as of January 28, 2023 $ 3,083 $ 60 (1) Remaining liability is recorded within accrued employment costs (2) Remaining liability is recorded within accounts payable |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenues and Operating Income Information for Reportable Segments | Net revenues and operating income (loss) information for the Company’s reportable segments consisted of the following (in thousands): Fiscal Year Ended February 3, January 28, January 29, Segment net revenues: VB Direct $ 309,910 $ 328,231 $ 354,875 VB Indirect 73,803 73,316 66,001 Pura Vida 87,073 98,414 119,577 Total $ 470,786 $ 499,961 $ 540,453 Segment operating income (loss): VB Direct $ 61,873 $ 51,097 $ 73,506 VB Indirect 24,279 22,965 20,323 Pura Vida (2,321) (78,591) 9,519 Total $ 83,831 $ (4,529) $ 103,348 Reconciliation: Segment operating income (loss): $ 83,831 $ (4,529) $ 103,348 Less: Unallocated corporate expenses (73,389) (90,342) (76,437) Operating income (loss) $ 10,442 $ (94,871) $ 26,911 |
Description of the Company - Ad
Description of the Company - Additional Information (Detail) | 12 Months Ended |
Feb. 03, 2024 location Segment Store | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | Segment | 3 |
Number of full line stores | 43 |
Number of outlet stores | 81 |
Number of specialty retail locations | location | 1,600 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 30, 2023 | Feb. 03, 2024 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jul. 16, 2019 | |
Significant Accounting Policies | ||||||
Allowance for doubtful accounts | $ 1,100 | $ 1,100 | $ 800 | |||
Indefinite-lived intangible asset | 6,237 | 6,237 | 11,666 | |||
Impairment recorded for goodwill | $ 44,300 | |||||
Impairment charges related to store assets including property, plant, and equipment and lease right-of-use assets | 1.4 million | 0.1 million | ||||
Capitalized Software, Unamortized | 3,800 | 3,800 | $ 6,400 | |||
Other impairment charges | 5,400 | 25,000 | ||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 0 | 19,649 | $ (2,380) | |||
Prepaid Expenses and Other Current Assets | ||||||
Significant Accounting Policies | ||||||
Capitalized Software, Unamortized | 2,800 | 2,800 | 3,000 | |||
Other Noncurrent Assets | ||||||
Significant Accounting Policies | ||||||
Capitalized Software, Unamortized | 1,000 | 1,000 | $ 3,400 | |||
Pura Vida | ||||||
Significant Accounting Policies | ||||||
Indefinite-lived intangible asset | $ 6,200 | 6,200 | ||||
Pura Vida | ||||||
Significant Accounting Policies | ||||||
Ownership percentage by noncontrolling owners | 25% | |||||
Cash consideration | $ 10,000 | |||||
Ownership percentage | 100% | |||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 10,700 | |||||
Adjustments to Additional Paid in Capital, Fair Value | 700 | |||||
Adjustments to Additional Paid in Capital, Other | 1,300 | |||||
Adjustments To Additional Paid In Capital, Deferred Income | $ 600 | |||||
Minimum | ||||||
Significant Accounting Policies | ||||||
Lease terms, years | 3 years | 3 years | ||||
Estimated useful lives, in years | 3 years | 3 years | ||||
Maximum | ||||||
Significant Accounting Policies | ||||||
Lease terms, years | 10 years | 10 years | ||||
Estimated useful lives, in years | 5 years | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives (Detail) | Feb. 03, 2024 |
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. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Returns and Credits Reserve | |||
Balance at Beginning of Year | $ 1,801 | $ 1,582 | $ 1,714 |
Provision Charged to Net Revenues | 9,697 | 12,320 | 17,043 |
Allowances Taken / Written Off | (10,076) | (12,101) | (17,175) |
Balance at End of Year | $ 1,422 | $ 1,801 | $ 1,582 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Total Advertising Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Accounting Policies [Abstract] | |||
Total advertising expense | $ 54,999 | $ 54,941 | $ 61,223 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 55,262 | $ 360 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue, current | $ 2,600,000 | $ 3,200,000 |
Contract assets | 0 | 0 |
Accounts receivable from contracts with customers, net of allowances | 16,400,000 | 20,700,000 |
Provision for doubtful accounts | $ 1,100,000 | $ 800,000 |
Five Largest Customer | Accounts Receivable [Member] | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 54% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 470,786 | $ 499,961 | $ 540,453 |
Bags | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 159,721 | 171,268 | 173,009 |
Travel | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 90,849 | 93,868 | 94,657 |
Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 145,208 | 159,987 | 186,488 |
Home | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 41,609 | 42,273 | 46,403 |
Apparel/Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 20,437 | 18,781 | 25,108 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 12,962 | 13,784 | 14,788 |
Direct | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 309,910 | 328,231 | 354,875 |
Direct | Bags | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 119,705 | 131,432 | 138,910 |
Direct | Travel | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 75,927 | 79,585 | 82,507 |
Direct | Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 52,930 | 58,932 | 65,219 |
Direct | Home | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 37,587 | 38,040 | 41,987 |
Direct | Apparel/Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 16,526 | 12,701 | 18,592 |
Direct | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 7,235 | 7,541 | 7,660 |
Indirect | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 73,803 | 73,316 | 66,001 |
Indirect | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 71,400 | 70,700 | 63,100 |
Indirect | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,400 | 2,600 | 2,900 |
Indirect | Bags | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 39,609 | 38,587 | 33,125 |
Indirect | Travel | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 14,922 | 14,283 | 12,150 |
Indirect | Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 9,547 | 10,312 | 10,021 |
Indirect | Home | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 4,022 | 4,233 | 4,416 |
Indirect | Apparel/Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,461 | 2,236 | 2,406 |
Indirect | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 3,242 | 3,665 | 3,883 |
Pura Vida | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 87,073 | 98,414 | 119,577 |
Pura Vida | Bags | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 407 | 1,249 | 974 |
Pura Vida | Travel | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Pura Vida | Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 82,731 | 90,743 | 111,248 |
Pura Vida | Home | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 0 | 0 | 0 |
Pura Vida | Apparel/Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,450 | 3,844 | 4,110 |
Pura Vida | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 2,485 | $ 2,578 | $ 3,245 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Lessee, Lease, Description [Line Items] | ||
Weighted-average discount rate | 4.80% | 4.60% |
Operating Lease, lease not yet commenced | $ 0.8 | |
Lease not yet commenced, term of contract | 5 years | |
Weighted-average remaining lease term | 5 years 3 months 18 days | 5 years 4 months 24 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 | 3 years |
Leases - Total lease cost (Deta
Leases - Total lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 25,826 | $ 25,118 | $ 25,200 |
Variable lease cost | 5,295 | 5,975 | 7,560 |
Short-term lease cost | 578 | 476 | 515 |
Sublease income | (420) | (234) | 0 |
Total lease cost | $ 31,279 | $ 31,335 | $ 33,275 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 29,554 | $ 30,014 | $ 33,517 |
Right-of-use assets increase as a result of new and modified operating lease liabilities, net | $ 9,859 | $ 20,379 | $ 11,584 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating Lease Liabilities (Details) $ in Thousands | Feb. 03, 2024 USD ($) |
Leases [Abstract] | |
Fiscal 2025 | $ 21,921 |
Fiscal 2026 | 19,123 |
Fiscal 2027 | 14,413 |
Fiscal 2028 | 10,962 |
Fiscal 2029 | 8,703 |
Thereafter | 16,988 |
Total remaining obligations | 92,110 |
Less: Interest | (11,105) |
Present value of lease liabilities | $ 81,005 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 167,563 | $ 167,454 |
Less: Accumulated depreciation and amortization | (113,307) | (108,780) |
Property, plant, and equipment, net | 54,256 | 58,674 |
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 | 46,203 | 46,276 |
Furniture, fixtures, leasehold improvements and computer equipment | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 86,584 | 86,180 |
Equipment and vehicles | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 28,493 | 28,528 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 302 | $ 489 |
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. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense, excluding impairment charges and discontinued operations | $ 7,968 | $ 8,854 | $ 9,315 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Detail) - Subsidiaries - Revolving Credit Facility - USD ($) | Aug. 03, 2023 | Sep. 07, 2018 | Feb. 03, 2024 | Jan. 28, 2023 |
New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | $ 0 | $ 0 | ||
Remaining borrowing capacity | $ 9,400,000 | $ 75,000,000 | $ 75,000,000 | |
Maximum borrowing capacity | 75,000,000 | |||
Increase (decrease) in aggregate credit facility principal amount | $ 50,000,000 | |||
Unused capacity, commitment fee percentage | 0.30% | |||
Debt instrument, fixed charge coverage ratio | 1 | |||
Third Amendment | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period If Greater Than Prime Rate | 2.50% | |||
Base Rate [Member] | New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | 12.50% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | 0.10% | |||
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | 1.25% | |||
Minimum | Adjusted Term SOFR Rate | New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | (1.25%) | |||
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | 1.50% | |||
Maximum | Adjusted Term SOFR Rate | New Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | (1.50%) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 918 | $ 680 | $ 5,923 |
Current, Foreign | 337 | 562 | 279 |
Current, State | 478 | 803 | 555 |
Current, Total | 1,733 | 2,045 | 6,757 |
Deferred, Federal | 1,322 | (15,517) | (1,300) |
Deferred, State | 439 | (2,168) | 973 |
Deferred, Total | 1,761 | (17,685) | (327) |
Total income tax expense (benefit) | $ 3,494 | $ (15,640) | $ 6,430 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 9,159 | $ (98,539) | $ 24,881 |
Foreign | 2,173 | 3,515 | 1,767 |
Income (loss) before income taxes | $ 11,332 | $ (95,024) | $ 26,648 |
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. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes at statutory rate | $ 2,380 | $ (19,955) | $ 5,596 |
Federal taxes at statutory rate, percentage | 21% | 21% | 21% |
State and local income taxes, net of federal benefit | $ 754 | $ (1,063) | $ 1,175 |
State and local income taxes, net of federal benefit, percentage | 6.70% | 1.10% | 4.40% |
Impact related to redeemable noncontrolling interest | $ 0 | $ 4,126 | $ (508) |
Impact related to redeemable noncontrolling interest, percentage | 0% | (4.30%) | (1.90%) |
(Windfall) shortfall from stock-based compensation | $ (47) | $ 271 | $ (472) |
Shortfall from stock-based compensation, percentage | (0.40%) | (0.30%) | (1.80%) |
Impact of foreign rate differential | $ (109) | $ (167) | $ (82) |
Impact of foreign rate differential | (1.00%) | 0.20% | (0.30%) |
Change in uncertain tax positions | $ (30) | $ (15) | $ 32 |
Change in uncertain tax positions, percentage | (0.30%) | 0% | 0.10% |
Non-deductible executive compensation | $ 487 | $ 1,150 | $ 471 |
Non-deductible executive compensation, percentage | 4.30% | (1.20%) | 1.80% |
Other | $ 59 | $ 13 | $ 218 |
Other, percentage | 0.50% | 0% | 0.80% |
Total income tax expense (benefit) | $ 3,494 | $ (15,640) | $ 6,430 |
Total income tax expense, percentage | 30.80% | 16.50% | 24.10% |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Deferred tax assets: | ||
Operating lease liabilities | $ 22,511 | $ 25,262 |
Compensation and benefits | 2,815 | 2,602 |
Inventories | 4,122 | 2,298 |
Investment in subsidiary | 12,904 | 14,595 |
Other | 1,654 | 1,519 |
Subtotal deferred tax assets | 44,006 | 46,276 |
Less: valuation allowances | (48) | (48) |
Total deferred tax assets | 43,958 | 46,228 |
Deferred tax liabilities: | ||
Operating lease assets | (17,863) | (19,858) |
Property, plant, and equipment | (2,930) | (2,966) |
Other | (2,810) | (1,862) |
Total deferred tax liabilities | (23,603) | (24,686) |
Net deferred tax assets | $ 20,355 | $ 21,542 |
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. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 73 | $ 92 | $ 55 |
Net increases in unrecognized tax benefits as a result of current year activity | 0 | 2 | 37 |
Lapse of statute of limitations | (34) | (21) | 0 |
Ending balance | $ 39 | $ 73 | $ 92 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 USD ($) shares | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Oct. 30, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ | $ 2.9 | $ 3.2 | $ 4.9 | |
Time-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted-stock awards/units granted in period (in shares) | shares | 438,000 | |||
Performance-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted-stock awards/units granted in period (in shares) | shares | 315,000 | |||
2020 Equity and Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Issuance of common stock shares | shares | 3,000,000 | |||
2020 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 | 753,454 | |||
Restricted-stock awards/units with an aggregate grant-date fair value | $ | $ 4.4 | |||
Restricted stock vesting period | 1 year | |||
Unrecognized compensation cost | $ | $ 4 | |||
Share-based compensation over a weighted average period | 1 year 9 months 18 days | |||
Share-based compensation fair value restrictions vested | $ | $ 3.9 | |||
2020 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 | |||
2020 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. 03, 2024 $ / shares shares | |
Time-based Restricted Stock Units | |
Number of Units | |
Nonvested units outstanding, beginning balance (in shares) | shares | 965 |
Granted, Number of Units (in shares) | shares | 438 |
Change due to performance condition achievement (in shares) | shares | 0 |
Vested, Number of Units (in shares) | shares | (529) |
Forfeited, Number of Units (in shares) | shares | (191) |
Nonvested units outstanding, ending balance (in shares) | shares | 683 |
Weighted- Average Grant Date Fair Value (per unit) | |
Weighted-Average Grant Date Fair Value (per unit), beginning balance (in dollars per share) | $ / shares | $ 5.74 |
Granted, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 5.89 |
Change due to performance condition achievement (in dollars per share) | $ / shares | 0 |
Vested, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 6.18 |
Forfeited, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 9.02 |
Weighted-Average Grant Date Fair Value (per unit), ending balance (in dollars per share) | $ / shares | $ 4.58 |
Performance-based Restricted Stock Units | |
Number of Units | |
Nonvested units outstanding, beginning balance (in shares) | shares | 523 |
Granted, Number of Units (in shares) | shares | 315 |
Change due to performance condition achievement (in shares) | shares | 229 |
Vested, Number of Units (in shares) | shares | (94) |
Forfeited, Number of Units (in shares) | shares | (133) |
Nonvested units outstanding, ending balance (in shares) | shares | 840 |
Weighted- Average Grant Date Fair Value (per unit) | |
Weighted-Average Grant Date Fair Value (per unit), beginning balance (in dollars per share) | $ / shares | $ 4.71 |
Granted, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 5.82 |
Change due to performance condition achievement (in dollars per share) | $ / shares | 5.39 |
Vested, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 4.08 |
Forfeited, Weighted-Average Grant Date Fair Value (per unit) (in dollars per share) | $ / shares | 10.79 |
Weighted-Average Grant Date Fair Value (per unit), ending balance (in dollars per share) | $ / shares | $ 4.42 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2024 USD ($) | |
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. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Pension Plans, Postretirement and Other Employee Benefits | |||
Employer matching contribution, percentage of gross pay, initial match | 100% | ||
Employer matching contribution, initial match, percentage | 3% | ||
Employer matching contribution, percentage of gross pay, secondary match | 50% | ||
Employer matching contribution, secondary match, percentage | 2% | ||
Employer matching contribution, percentage | 4% | ||
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. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Disclosure Profit Sharing Plan And Trust Additional Information [Abstract] | |||
Total company contribution to the plan, excluding discontinued operations | $ 1,897 | $ 1,854 | $ 1,929 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Related Party Transactions [Abstract] | ||
Related Party Transaction, Liability Associated With Commitments | $ 0.1 | $ 0.1 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related-Party Transactions Associated Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Related Party Transactions [Abstract] | |||
Related-party transactions associated expense included in selling, general, and administrative expenses | $ 139 | $ 191 | $ 160 |
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 | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 7,838 | $ (79,384) | $ 20,218 |
Less: Net (loss) income attributable to redeemable noncontrolling interest | 0 | (19,649) | 2,380 |
Net income (loss) attributable to Vera Bradley, Inc. | $ 7,838 | $ (59,735) | $ 17,838 |
Weighted-average number of common shares (basic) (in shares) | 30,833 | 31,503 | 33,785 |
Dilutive effect of stock-based awards (in shares) | 481 | 0 | 652 |
Weighted-average number of common shares (diluted) (in shares) | 31,314 | 31,503 | 34,437 |
Net income (loss) per share attributable to Vera Bradley, Inc.: | |||
Net income (loss) per share, basic (in dollars per share) | $ 0.25 | $ (1.90) | $ 0.53 |
Net income (loss) per share, diluted (in dollars per share) | $ 0.25 | $ (1.90) | $ 0.52 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Dec. 11, 2021 | Nov. 29, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Average price per share of shares acquired (in dollars per share) | $ 10.86 | ||||
Aggregate common stock repurchased | $ 2,192 | $ 18,062 | $ 7,742 | ||
Treasury Stock, Common, Shares | 12,439,244 | ||||
Value of treasury stock | $ 135,056 | $ 132,864 | |||
The 2018 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount under share repurchase program | $ 50,000 | ||||
2021 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares acquired as part of share repurchase program (in shares) | 359,554 | 2,820,949 | |||
Average price per share of shares acquired (in dollars per share) | $ 6.10 | $ 6.40 | |||
Aggregate common stock repurchased | $ 2,200 | $ 18,100 | |||
Remaining authorized repurchased amount | $ 25,500 | $ 50,000 | |||
The 2018 And 2021 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares acquired as part of share repurchase program (in shares) | 865,534 | ||||
Average price per share of shares acquired (in dollars per share) | $ 8.94 | ||||
Aggregate common stock repurchased | $ 7,700 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jul. 16, 2019 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interest, beginning balance | $ 10,712 | $ 30,974 | $ 29,809 | |
Net (loss) income attributable to redeemable noncontrolling interest | 0 | (19,649) | 2,380 | |
Distributions to redeemable noncontrolling interest | 613 | 1,215 | ||
Adjustment to redemption value | (10,712) | |||
Redeemable noncontrolling interest, ending balance | 0 | $ 10,712 | $ 30,974 | |
Pura Vida | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by noncontrolling owners | 25% | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Net (loss) income attributable to redeemable noncontrolling interest | $ (10,700) |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Feb. 03, 2024 | Jan. 28, 2023 | Jul. 30, 2022 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jul. 16, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of goodwill and intangible assets | $ 5,429 | $ 69,256 | $ 0 | ||||
Impairment recorded for goodwill | 44,300 | ||||||
Pura Vida | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment charge | $ 5,400 | $ 15,100 | $ 9,900 | ||||
Impairment recorded for goodwill | $ 24,900 | $ 19,400 | |||||
Pura Vida | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Percentage of business acquired | 75% | ||||||
Impairment of goodwill and intangible assets | $ 69,300 |
Intangible Assets - Carrying va
Intangible Assets - Carrying value of the Company's intangible assets other than goodwill (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Basis | $ 24,208 | $ 24,996 |
Accumulated Amortization | 22,872 | 20,744 |
Carrying Amount | 1,336 | 4,252 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangible asset | 6,237 | 11,666 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Basis | 30,445 | 36,662 |
Accumulated Amortization | 22,872 | 20,744 |
Carrying Amount | 7,573 | 15,918 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Basis | 24,208 | 24,208 |
Accumulated Amortization | 22,872 | 19,956 |
Carrying Amount | 1,336 | 4,252 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ 22,872 | 19,956 |
Non-competition Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Basis | 788 | |
Accumulated Amortization | 788 | |
Carrying Amount | 0 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ 788 |
Intangible Assets - Provisional
Intangible Assets - Provisional amortization expense for intangible assets (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2025 | $ 1,336 | |
Carrying Amount | $ 1,336 | $ 4,252 |
Cost Saving Initiatives and O_3
Cost Saving Initiatives and Other Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance charges | $ 2,913 | $ 9,182 |
Other restructuring costs | 105 | 4,457 |
Total | 3,018 | 13,639 |
Fees related to cost savings initiatives and CEO search | 3,900 | |
Professional Fees | 300 | |
Business Exit Costs | 300 | |
Selling, general and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 13,400 | |
Cost of Sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 200 | |
VB Direct | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance charges | 574 | 15 |
Other restructuring costs | 0 | 302 |
Total | 574 | 317 |
VB Indirect | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance charges | 309 | 0 |
Other restructuring costs | 0 | 0 |
Total | 309 | 0 |
Pura Vida | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance charges | 79 | 422 |
Other restructuring costs | 0 | 179 |
Total | 79 | 601 |
Unallocated Corporate Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance charges | 1,951 | 8,745 |
Other restructuring costs | 105 | 3,976 |
Total | $ 2,056 | $ 12,721 |
Cost Saving Initiatives and O_4
Cost Saving Initiatives and Other Charges (Charges and related liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Employee severance and other benefits | ||
Restructuring Reserve [Roll Forward] | ||
Fiscal 2024 charges | $ 2,913 | $ 9,182 |
Cash payments | (5,455) | (6,083) |
Non-cash charges | (16) | |
Restructuring Reserve | 541 | 3,083 |
Consulting Fees And Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Fiscal 2024 charges | 105 | 4,457 |
Cash payments | (165) | (4,095) |
Non-cash charges | (302) | |
Restructuring Reserve | $ 0 | $ 60 |
Cost Saving Initiatives and O_5
Cost Saving Initiatives and Other Charges (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | $ 0 | $ 0 | |
Restructuring And Related Cost, Excess Inventory | 8.9 | ||
Restructuring And Related Cost, Exit Of Products | 6.4 | ||
Restructuring And Related Cost, Valuation Adjustments To Write Discounted Inventory Down | 1.2 | ||
Restructuring And Related Cost, Restructuring Reserve Adjustment | $ 0 | ||
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | 18.1 | ||
Restructuring And Related Cost, Purchase Order Cancellation Fees | 1.6 | ||
CEO Sign On Bonus And Relocation Expense | Selling, general and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | 1 | ||
Former CEO Salary Retention Payments and Other Compensation | Selling, general and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | 0.4 | ||
Professional Fees Associated With Strategic Initiatives And Other Costs | Selling, general and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | $ 0.8 | 0.2 | |
Direct | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | 6.2 | ||
Indirect | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | 1.7 | ||
Pura Vida | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | 0.2 | 10.2 | |
Unallocated Corporate Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Cost, Noncash Inventory Adjustment | $ 0.6 | $ 1.6 |
Segment Reporting (Detail)
Segment Reporting (Detail) | 12 Months Ended |
Feb. 03, 2024 location Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 3 |
Number of specialty retail locations | location | 1,600 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Net Revenues and Operating Income Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Segment Reporting Information | |||
Net revenues | $ 470,786 | $ 499,961 | $ 540,453 |
Operating (loss) income | 10,442 | (94,871) | 26,911 |
Direct | |||
Segment Reporting Information | |||
Net revenues | 309,910 | 328,231 | 354,875 |
Indirect | |||
Segment Reporting Information | |||
Net revenues | 73,803 | 73,316 | 66,001 |
Pura Vida | |||
Segment Reporting Information | |||
Net revenues | 87,073 | 98,414 | 119,577 |
Operating Segments | |||
Segment Reporting Information | |||
Net revenues | 470,786 | 499,961 | 540,453 |
Segment operating income | 83,831 | (4,529) | 103,348 |
Operating Segments | Direct | |||
Segment Reporting Information | |||
Net revenues | 309,910 | 328,231 | 354,875 |
Segment operating income | 61,873 | 51,097 | 73,506 |
Operating Segments | Indirect | |||
Segment Reporting Information | |||
Net revenues | 73,803 | 73,316 | 66,001 |
Segment operating income | 24,279 | 22,965 | 20,323 |
Operating Segments | Pura Vida | |||
Segment Reporting Information | |||
Net revenues | 87,073 | 98,414 | 119,577 |
Segment operating income | (2,321) | (78,591) | 9,519 |
Corporate, Non-Segment | |||
Segment Reporting Information | |||
Unallocated corporate expenses | $ (73,389) | $ (90,342) | $ (76,437) |
Uncategorized Items - vra-20240
Label | Element | Value |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | $ 363,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | 250,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | $ 150,000 |