Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
2-May-15 | Jun. 05, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 2-May-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TLYS | |
Entity Registrant Name | TILLY'S, INC. | |
Entity Central Index Key | 1524025 | |
Current Fiscal Year End Date | -29 | |
Entity Filer Category | Accelerated Filer | |
Class A common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,176,994 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,179,097 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $44,181 | $49,789 |
Marketable securities | 34,971 | 34,957 |
Receivables | 5,475 | 4,682 |
Merchandise inventories | 61,696 | 51,507 |
Prepaid expenses and other current assets | 12,145 | 12,349 |
Total current assets | 158,468 | 153,284 |
Property and equipment, net | 101,341 | 101,335 |
Other assets | 2,798 | 2,932 |
Total assets | 262,607 | 257,551 |
Current liabilities: | ||
Accounts payable | 24,864 | 23,109 |
Accrued expenses | 14,227 | 12,325 |
Deferred revenue | 5,822 | 7,075 |
Accrued compensation and benefits | 4,180 | 5,911 |
Current portion of deferred rent | 6,060 | 6,070 |
Current portion of capital lease obligation | 819 | 806 |
Total current liabilities | 55,972 | 55,296 |
Long-term portion of deferred rent | 41,323 | 41,875 |
Long-term portion of capital lease obligation | 1,484 | 1,694 |
Total long-term liabilities | 42,807 | 43,569 |
Total liabilities | 98,779 | 98,865 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; May 2, 2015 and January 31, 2015 - 10,000 shares authorized, no shares issued or outstanding | ||
Additional paid-in capital | 130,426 | 126,565 |
Retained earnings | 33,354 | 32,072 |
Accumulated other comprehensive income | 20 | 21 |
Total stockholders' equity | 163,828 | 158,686 |
Total liabilities and stockholders' equity | 262,607 | 257,551 |
Class A common Stock | ||
Stockholders' equity: | ||
Common stock | 12 | 11 |
Class B common stock | ||
Stockholders' equity: | ||
Common stock | $16 | $17 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A common Stock | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 12,167 | 11,546 |
Common stock, shares outstanding | 12,167 | 11,546 |
Class B common stock | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 35,000 | 35,000 |
Common stock, shares issued | 16,189 | 16,544 |
Common stock, shares outstanding | 16,189 | 16,544 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
Net sales | $120,190 | $111,134 |
Cost of goods sold (includes buying, distribution, and occupancy costs) | 84,138 | 79,807 |
Gross profit | 36,052 | 31,327 |
Selling, general and administrative expenses | 33,923 | 30,250 |
Operating income | 2,129 | 1,077 |
Other income, net | -8 | |
Income before income taxes | 2,137 | 1,077 |
Income tax expense | 855 | 486 |
Net income | $1,282 | $591 |
Weighted average basic shares outstanding | 28,173 | 27,983 |
Weighted average diluted shares outstanding | 28,321 | 28,151 |
Class A and Class B common stock | ||
Basic earnings per share | $0.05 | $0.02 |
Diluted earnings per share | $0.05 | $0.02 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Net income | $1,282 | $591 |
Other comprehensive income: | ||
Net change in unrealized gain on available-for-sale securities, net of tax | -1 | |
Other comprehensive income | -1 | |
Comprehensive income | $1,281 | $591 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Class A common Stock | Class B common stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Beginning Balance at Jan. 31, 2015 | $158,686 | $28 | $126,565 | $32,072 | $21 | ||
Beginning Balance (in shares) at Jan. 31, 2015 | 11,546,000 | 16,544,000 | |||||
Net income | 1,282 | 1,282 | |||||
Shares converted by founders | 355,000 | -355,000 | |||||
Stock-based compensation expense | 1,269 | 1,269 | |||||
Exercise of stock options (in shares) | 266,140 | 266,000 | |||||
Exercise of stock options | 2,592 | 2,592 | |||||
Change in unrealized gain on available-for-sale securities | -1 | -1 | |||||
Ending Balance at May. 02, 2015 | $163,828 | $28 | $130,426 | $33,354 | $20 | ||
Ending Balance (in shares) at May. 02, 2015 | 12,167,000 | 16,189,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Cash flows from operating activities | ||
Net income | $1,282 | $591 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 5,611 | 4,776 |
Stock-based compensation expense | 1,269 | 838 |
Loss on disposal of assets | 49 | 29 |
Gain on sales and maturities of marketable securities | -31 | -37 |
Deferred income taxes | -138 | 34 |
Excess tax benefit from stock-based compensation | -92 | |
Changes in operating assets and liabilities: | ||
Receivables | -793 | -751 |
Merchandise inventories | -10,189 | -6,584 |
Prepaid expenses and other assets | 477 | -517 |
Accounts payable | 1,469 | 2,176 |
Accrued expenses | 1,606 | 1,279 |
Accrued compensation and benefits | -1,731 | -1,517 |
Deferred rent | -562 | 798 |
Deferred revenue | -1,253 | -1,012 |
Net cash (used in) provided by operating activities | -3,026 | 103 |
Cash flows from investing activities | ||
Purchase of property and equipment | -5,084 | -7,943 |
Purchases of marketable securities | -14,985 | -4,991 |
Maturities of marketable securities | 15,000 | 15,000 |
Net cash (used in) provided by investing activities | -5,069 | 2,066 |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 2,592 | |
Payment of capital lease obligation | -197 | -185 |
Excess tax benefit from stock-based compensation | 92 | |
Net cash provided by (used in) financing activities | 2,487 | -185 |
Change in cash and cash equivalents | -5,608 | 1,984 |
Cash and cash equivalents, beginning of period | 49,789 | 25,412 |
Cash and cash equivalents, end of period | 44,181 | 27,396 |
Supplemental disclosures of cash flow information | ||
Interest paid | 38 | 50 |
Income taxes paid (refunded) | 1,754 | -22 |
Supplemental disclosure of non-cash activities | ||
Unpaid purchases of property and equipment | $2,095 | $3,422 |
Description_of_the_Company_and
Description of the Company and Basis of Presentation | 3 Months Ended |
2-May-15 | |
Description of the Company and Basis of Presentation | Note 1: Description of the Company and Basis of Presentation |
Tilly’s, Inc., is a leading chain of specialty retail stores featuring casual clothing, footwear and accessories for teens and young adults. We operated 213 stores in 33 states as of May 2, 2015. The stores are located in malls, lifestyle centers, ‘power’ centers, community centers, outlet centers and street-front locations. Customers may also shop online, where we feature a similar assortment of products as is carried in our brick-and-mortar stores. | |
Tilly’s, Inc. was formed as a Delaware corporation on May 4, 2011 for the purpose of reorganizing the corporate structure of World of Jeans & Tops, a California corporation (WOJT). On May 2, 2012, the shareholders of WOJT contributed all of their shares of common stock to Tilly’s, Inc. in return for shares of Tilly’s, Inc. Class B common stock on a one-for-one basis. In addition, effective May 2, 2012, WOJT converted from an “S” Corporation to a “C” Corporation for income tax purposes. These events are collectively referred to as the “Reorganization”. As a result of the Reorganization, WOJT became a wholly owned subsidiary of Tilly’s, Inc. Except where context requires or where otherwise indicated, the terms the Company, Tilly’s, we, or us, refers to WOJT before the Reorganization and to Tilly’s, Inc. and its subsidiary, WOJT, after the Reorganization. | |
We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial reporting. These consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this report as is permitted by SEC rules and regulations. | |
In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows for the interim periods presented. The results of operations for the thirteen weeks ended May 2, 2015 and May 3, 2014 are not necessarily indicative of results to be expected for the full fiscal year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015. | |
Fiscal Periods | |
Our fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended May 2, 2015 and May 3, 2014 refer to the thirteen-week periods ended as of those dates. | |
Correction of an Error | |
We identified a prior period error related to the accrual of contingent rent. Accordingly, we have corrected the accompanying consolidated balance sheet as of May 2, 2015. We identified $0.4 million included in contingent rent liabilities, which was calculated incorrectly in prior periods. We corrected this error in the current period resulting in a decrease of $0.4 million to the deferred rent liability in the Consolidated Balance Sheet and a decrease of $0.4 million to cost of goods sold in the Consolidated Statement of Income for the fiscal quarter ended May 2, 2015. We have evaluated the materiality of the error quantitatively and qualitatively and concluded it was not material to any of the prior periods and the correction of this error, as an out-of-period adjustment, is not expected to be material to the annual consolidated statements of income and the consolidated financial statements for the year ending January 30, 2016. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
2-May-15 | |
Summary of Significant Accounting Policies | Note 2: Summary of Significant Accounting Policies |
Information regarding significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies”, of the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015. |
Marketable_Securities
Marketable Securities | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Marketable Securities | Note 3: Marketable Securities | ||||||||||||||||
Marketable securities are classified as available-for-sale and, as of May 2, 2015 and January 31, 2015, consisted entirely of commercial paper, all of which was less than one year from maturity. | |||||||||||||||||
The following table summarizes our investments in marketable securities at May 2, 2015 and January 31, 2015 (in thousands): | |||||||||||||||||
May 2, 2015 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
Commercial paper | $ | 34,938 | $ | 34 | $ | (1 | ) | $ | 34,971 | ||||||||
31-Jan-15 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
Commercial paper | $ | 34,922 | $ | 35 | $ | — | $ | 34,957 | |||||||||
For the thirteen weeks ended May 2, 2015 and May 3, 2014, we recognized gains on investments of $31 thousand and $37 thousand, respectively, for commercial paper which matured during the period. Upon recognition of the gains, we reclassified these amounts out of accumulated other comprehensive income and into “Other income, net” on the Consolidated Statements of Income. |
Line_of_Credit
Line of Credit | 3 Months Ended |
2-May-15 | |
Line of Credit | Note 4: Line of Credit |
On May 3, 2012, we entered into an amended and restated credit agreement with Wells Fargo Bank, N.A. (Bank), which we amended on March 17, 2014 to extend the maturity date, reduce the borrowing rate, eliminate a fee of 0.10% on the average daily unused amount on the line of credit, eliminate certain financial covenants related to current liabilities, funded debt and net profits, and add certain new covenants relating to total net losses and maximum balance sheet leverage. The amended credit facility, which was effective as of February 3, 2014, continues to provide for a $25.0 million revolving line of credit, with a maturity date of May 31, 2017. The interest charged on borrowings is either at the London Interbank Offered Rate, or LIBOR, plus 1.00%, or at the bank’s prime rate. We have the ability to select between the prime rate or LIBOR-based rate at the time of a cash advance. The revolving credit facility is secured by substantially all of our assets. As a sub-feature under the revolving credit facility, the Bank may issue stand-by and commercial letters of credit up to $15.0 million. | |
We are required to maintain certain financial and nonfinancial covenants in accordance with the revolving credit facility. The financial covenants require certain levels of leverage and profitability, such as (i) an aggregate maximum net loss after taxes not to exceed $5 million (measured at the end of each fiscal quarter), with no more than one annual net loss after taxes for any fiscal year (in either case, excluding all charges for impairment of goodwill, other intangibles and store assets impairment on the balance sheet of WOJT, in an aggregate amount of up to $2.0 million for the relevant period), and (ii) a maximum ratio of 2.00 to 1.00 for “balance sheet leverage”, defined as total liabilities divided by total tangible net worth. | |
As of May 2, 2015, we were in compliance with all of our covenants and had no outstanding borrowings under the revolving credit facility. | |
On June 10, 2015, we received a consent to guarantee payments under a settlement agreement with one of our vendors and provide a payment advance on their behalf in exchange for a promissory note. Refer to Note 5 below for further discussion. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
2-May-15 | |
Commitments and Contingencies | Note 5: Commitments and Contingencies |
From time to time, we may become involved in lawsuits and other claims arising from our ordinary course of business. We are currently unable to predict the ultimate outcome of any litigation or claim, determine whether a liability has been incurred or make an estimate of the reasonably possible liability that could result from an unfavorable outcome because of the uncertainties related to the incurrence, amount and range of loss on any pending litigation or claim. Because of the unpredictable nature of these matters, we cannot provide any assurances regarding the outcome of any litigation or claim to which we are a party or that the ultimate outcome of any of the matters threatened or pending against us, including those disclosed below, will not have a material adverse effect on our financial condition, results of operations or cash flows. See “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015 for important factors that could adversely impact us and our results of operations. | |
Kristin Christiansen, Shellie Smith and Paul Haug, on behalf of themselves and all others similarly situated vs. World of Jeans & Tops, Superior Court of California, County of Sacramento, Case No. 34-2013-00139010. On January 29, 2013, the plaintiffs in this matter filed a putative class action lawsuit against us alleging violations of California Civil Code Section 1747.08, which prohibits requesting or requiring personal identification information from a customer paying for goods with a credit card and recording such information, subject to exceptions. In June 2013, the Court granted our motion to strike portions of the plaintiffs’ complaint and granted plaintiffs leave to amend. Plaintiffs have amended the complaint and the parties are proceeding with discovery on class certification issues. Class certification briefing is currently expected to conclude in July 2015 with a hearing in August 2015. The complaint seeks certification of a class, unspecified damages, injunctive relief and attorneys’ fees. We intend to defend this case vigorously. | |
Maria Rebolledo, individually and on behalf of all others similarly situated and on behalf of the general public vs. Tilly’s, Inc.; World of Jeans & Tops, Superior Court of the State of California, County of Orange, Case No. 30-2012-00616290-CU-OE-CXC. On December 5, 2012, the plaintiff in this matter filed a putative class action lawsuit against us alleging violations of California’s wage and hour, meal break and rest break rules and regulations, and unfair competition law, among other things. An amended complaint was filed on February 22, 2013, to add a claim for penalties under the California Private Attorneys General Act. In March 2013, we filed a motion to compel arbitration, which was denied in June 2013 and later affirmed on appeal. In October 2014, we filed an answer to the amended complaint. We intend to defend this case vigorously. | |
Karina Whitten, on behalf of herself and all others similarly situated, v. Tilly’s Inc., Superior Court of California, County of Los Angeles, Case No, BC 548252. On June 10, 2014, plaintiff filed a putative class action and representative Private Attorney General Act lawsuit against us alleging violations of California’s wage and hour, meal break and rest break rules and regulations, and unfair competition law, among other things. The complaint seeks class certification, penalties, restitution, injunctive relief and attorneys’ fees and costs. Plaintiff filed a first amended complaint on December 3, 2014, removing the expense reimbursement claim. We answered the complaint on January 8, 2015. We intend to defend this case vigorously. | |
Herbert Ortiz and Audra Haynes, individually, and on behalf of the generally public, v. Tilly’s Inc., United States District Court for the Eastern District of California, Case No, 1:15-CV-00108-MJS. On November 6, 2014, plaintiff filed a putative class action and representative Private Attorney General Act lawsuit against the Company in the Superior Court of California, County of Fresno, alleging violations of California’s wage and hour, meal break and rest break rules and regulations, and unfair competition law, among other things. The complaint seeks class certification, penalties, restitution, injunctive relief and attorneys’ fees and costs. On January 21, 2015, we answered the complaint and removed the action to the United States District Court for the Eastern District of California. On March 2, 2015, the parties stipulated to stay the action while they discuss settlement. The parties also stipulated that if settlement negotiations are unsuccessful, the plaintiffs’ claims will be arbitrated on an individual, and not a class or representative, basis, as required under the terms of the arbitration agreements they signed. If the matter does not settle, the Company intends to defend the case vigorously. | |
On June 10, 2015, we and one of our vendors entered into a settlement arrangement with a plaintiff who filed a copyright infringement lawsuit against us and the vendor related to certain vendor products we sell. The settlement requires that the vendor pay $2.0 million to the plaintiff over three years and we have agreed to guarantee such payments. In connection with the settlement: (i) we have agreed to advance an initial payment of $0.2 million to the plaintiff in exchange for a promissory note from the vendor in the amount of $0.2 million, (ii) we entered into an agreement to purchase a minimum of $1.0 million in merchandise from our vendor, some of which may be offset against our obligation under the settlement arrangement in the event of the vendor’s default, and (iii) we have received a security interest in certain of our vendor’s intellectual property. In the event of the vendor’s default, it is reasonably possible that we could incur a loss as the guarantor and we would attempt to enforce our security interest in certain of the vendor’s intellectual property. The current estimated range of a reasonably possible loss is zero to $2.0 million representing our best estimate with respect to this matter and is based on currently available information. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||
2-May-15 | |||||||||||||||||||||||||
Fair Value Measurements | Note 6: Fair Value Measurements | ||||||||||||||||||||||||
We determine fair value based on the three level valuation hierarchy established under GAAP, which provides a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined under GAAP as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. The three level hierarchy of inputs is as follows: | |||||||||||||||||||||||||
• | Level 1 – Quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||||||||||
• | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||
• | Level 3 – Unobservable inputs (i.e. projections, estimates, interpretations, etc.) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||||||||||
We measure certain financial assets at fair value on a recurring basis, including our marketable securities, which are classified as available-for-sale securities, and certain cash equivalents, specifically money market accounts. The money market accounts are valued based on quoted market prices in active markets. The marketable securities are valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third party entities. | |||||||||||||||||||||||||
During the thirteen weeks ended May 2, 2015 and May 3, 2014, we did not make any transfers between Level 1 and Level 2 financial assets. Furthermore, as of May 2, 2015 and January 31, 2015, we did not have any Level 3 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. | |||||||||||||||||||||||||
From time to time, we measure certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. We estimate the fair value of our long-lived assets using company-specific assumptions which would fall within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
In accordance with GAAP, we categorized our financial assets based on the priority of the inputs to the valuation technique for the instruments as follows (in thousands): | |||||||||||||||||||||||||
May 2, 2015 | January 31, 2015 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market securities | $ | 29,454 | $ | — | $ | — | $ | 34,433 | $ | — | $ | — | |||||||||||||
Marketable securities: | |||||||||||||||||||||||||
Commercial paper | — | 34,971 | — | — | 34,957 | — |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Stock-Based Compensation | Note 7: Stock-Based Compensation | ||||||||||||||||
In April 2012, the Compensation Committee adopted the Tilly’s 2012 Equity and Incentive Award Plan, which authorized the issuance of options, shares or rights to acquire up to 2,913,900 shares of the our Class A common stock. In June 2014, our stockholders approved the Amended and Restated Tilly’s 2012 Equity and Incentive Award Plan (the 2012 Plan), which increased the aggregate number of shares reserved for issuance thereunder by 1,500,000 shares, from 2,913,900 shares to a total of 4,413,900 shares; and added operating income and comparable store sales growth as additional performance goals that may be used in connection with performance-based awards granted under the 2012 Plan. As of May 2, 2015, there were 2,147,409 shares still available for future issuance under the 2012 Plan. | |||||||||||||||||
Options | |||||||||||||||||
The Compensation Committee has granted stock options to certain existing and new employees to acquire our Class A common stock under the 2012 Plan. The exercise price of options granted is equal to the closing price per share of our stock at the date of grant. The nonqualified options vest ratably at a rate of 25% on each of the first four anniversaries of the grant date provided that the award recipient continues to be employed by us through each of those vesting dates, and expire ten years from the date of grant. | |||||||||||||||||
The following table summarizes the stock option activity for the thirteen weeks ended May 2, 2015 (aggregate intrinsic value in thousands): | |||||||||||||||||
Stock | Grant Date | Weighted | Aggregate | ||||||||||||||
Options | Weighted | Average | Intrinsic | ||||||||||||||
Average | Remaining | Value(1) | |||||||||||||||
Exercise Price | Contractual | ||||||||||||||||
Life (in Years) | |||||||||||||||||
Outstanding at January 31, 2015 | 2,880,040 | $ | 13.03 | ||||||||||||||
Granted | 37,500 | $ | 16.03 | ||||||||||||||
Exercised | (266,140 | ) | $ | 9.74 | |||||||||||||
Forfeited | (13,125 | ) | $ | 13.2 | |||||||||||||
Outstanding at May 2, 2015 | 2,638,275 | $ | 13.4 | 7.2 | $ | 3,348 | |||||||||||
Vested and expected to vest at May 2, 2015 | 2,553,131 | $ | 13.42 | 7.1 | $ | 3,247 | |||||||||||
Exercisable at May 2, 2015 | 1,457,900 | $ | 13.44 | 6.2 | $ | 2,188 | |||||||||||
-1 | Intrinsic value for stock options is defined as the difference between the market price of our Class A common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period. The market value per share was $13.76 at May 2, 2015. | ||||||||||||||||
The stock option awards were measured at fair value on the grant date using the Black-Scholes option valuation model. Key input assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected option term, expected volatility of our stock over the option’s expected term, the risk-free interest rate over the option’s expected term and our expected annual dividend yield, if any. Our estimate of pre-vesting forfeitures, or forfeiture rate, was based on our internal analysis, which included the award recipients’ positions and the vesting period of the awards. We will issue shares of Class A common stock when the options are exercised. | |||||||||||||||||
The fair value of stock options granted during the thirteen weeks ended May 2, 2015 and May 3, 2014 was estimated on the grant date using the following assumptions: | |||||||||||||||||
Thirteen Weeks Ended | |||||||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||||||
Expected option term(1) | 5.0 years | 5.0 years | |||||||||||||||
Expected volatility factor(2) | 47.8 | % | 46.9 | % | |||||||||||||
Risk-free interest rate(3) | 1.4 | % | 1.8 | % | |||||||||||||
Expected annual dividend yield | 0 | % | 0 | % | |||||||||||||
-1 | We have limited historical information regarding the expected option term. Accordingly, we determined the expected option term of the awards using historical data available from comparable public companies and management’s expectation of exercise behavior. | ||||||||||||||||
-2 | Stock volatility for each grant is measured using the weighted average of historical daily price changes of our competitors’ common stock over the most recent period equal to the expected option term of the awards. | ||||||||||||||||
-3 | The risk-free interest rate is determined using the rate on treasury securities with the same term as the expected life of the stock option as of the grant date. | ||||||||||||||||
Restricted stock | |||||||||||||||||
We grant restricted stock awards (RSAs) and restricted stock units (collectively with the RSAs “restricted stock”) under the 2012 Plan to the independent directors on our Board of Directors and certain of our employees. The RSAs granted to the independent directors on our Board of Directors vest ratably at a rate of 50% on each of the first two anniversaries of the grant date provided that the respective award recipient continues to serve on the our Board of Directors through each of those vesting dates. The restricted stock units granted to certain employees vest ratably at a rate of 25% on each of the first four anniversaries of the grant date provided that the respective recipient continues to be employed by us through each of those vesting dates. Restricted stock units represent shares issuable in the future upon vesting whereas RSAs represent restricted shares issued upon the date of grant in which the recipient’s rights in the stock are restricted until the shares are vested. We determine the fair value of restricted stock based upon the closing price of our Class A common stock on the date of grant. | |||||||||||||||||
A summary of the status of non-vested restricted stock as of May 2, 2015 and changes during the first quarter of fiscal 2015 are presented below: | |||||||||||||||||
Restricted | Weighted | ||||||||||||||||
Stock | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested at January 31, 2015 | 48,584 | $ | 9.88 | ||||||||||||||
Granted | 280,000 | $ | 16.07 | ||||||||||||||
Nonvested at May 2, 2015 | 328,584 | $ | 15.15 | ||||||||||||||
Stock-based compensation expense associated with stock options and restricted stock is recognized on a straight-line basis over the vesting period. The following table summarizes stock-based compensation recorded in the Consolidated Statements of Income: | |||||||||||||||||
Thirteen Weeks Ended | |||||||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||||||
Cost of goods sold | $ | 239 | $ | 172 | |||||||||||||
Selling, general and administrative expenses | 1,030 | 666 | |||||||||||||||
Stock-based compensation | $ | 1,269 | $ | 838 | |||||||||||||
At May 2, 2015, there was $10.9 million of total unrecognized stock-based compensation expense related to unvested stock options and restricted stock. This cost has a weighted average remaining recognition of 3.0 years. |
Income_Taxes
Income Taxes | 3 Months Ended |
2-May-15 | |
Income Taxes | Note 8: Income Taxes |
We account for income taxes and the related accounts under the liability method in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Because we believe that it is more likely than not that we will realize the full amount of the net deferred tax assets, we have not recorded any valuation allowance for the deferred tax assets. | |
The provision for income taxes for interim periods is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Significant management judgment is required in projecting ordinary income (loss) to estimate our annual effective tax rate. | |
Our effective income tax rate for the thirteen weeks ended May 2, 2015 and May 3, 2014 was 40.0% and 45.1%, respectively. The effective income tax rate for the thirteen weeks ended May 3, 2014 reflects a discrete item related to vested stock option forfeitures. | |
Our fiscal 2012 C-Corporation income tax return is currently under examination by the Internal Revenue Service. We were notified during the first quarter of fiscal 2015 that the S-Corporation tax period ending May 1, 2012 was also selected for examination by the Internal Revenue Service. There are not any known liabilities and we do not expect that the results of the examinations will have a material impact on our financial condition or statement of operations in fiscal 2015. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Earnings Per Share | Note 9: Earnings Per Share | ||||||||
Net income per share is computed under the provisions of ASC Topic 260, Earnings Per Share. Basic net income per share is computed based on the weighted average number of common shares 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, whereby proceeds from such exercise, unamortized compensation and hypothetical excess tax benefits, if any, on share-based awards are assumed to be used by us to purchase the common shares at the average market price during the period. Dilutive potential common shares represent outstanding stock options and restricted stock awards. The components of basic and diluted net income per share are as follows (in thousands, except per share amounts): | |||||||||
Thirteen Weeks Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Net income | $ | 1,282 | $ | 591 | |||||
Weighted average basic shares outstanding | 28,173 | 27,983 | |||||||
Dilutive effect of stock options and restricted stock | 148 | 168 | |||||||
Weighted average shares for diluted earnings per share | 28,321 | 28,151 | |||||||
Basic earnings per share | $ | 0.05 | $ | 0.02 | |||||
Diluted earnings per share | $ | 0.05 | $ | 0.02 | |||||
Total stock options and restricted stock of 2,013,000 and 2,114,000 as of May 2, 2015 and May 3, 2014, respectively, have been excluded from the calculation of diluted earnings per share as the effect of including these stock options would have been anti-dilutive. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
2-May-15 | |
Related Party Transactions | Note 10: Related Party Transactions |
The following persons and entities that participated in related party transactions include Hezy Shaked, Tilly Levine, Shaked Holdings, LLC and Amnet Holdings, LLC. Mr. Shaked is our Co-Founder, Executive Chairman of our Board of Directors, one of our executive officers and a holder of more than 5% of our common stock. Ms. Levine is our Co-Founder, an employee of our company and a holder of more than 5% of our common stock. Mr. Shaked, through the Hezy Shaked Living Trust established May 18, 1999, or the Hezy Shaked Trust, owns 63% of Shaked Holdings, LLC. Ms. Levine, through the Tilly Levine Separate Property Trust established March 31, 2004, or the Tilly Levine Trust, owns 37% of Shaked Holdings. Mr. Shaked, through the Hezy Shaked Trust, is the sole member and owner of Amnet Holdings, LLC, or Amnet Holdings. | |
Certain Leases | |
We lease office and warehouse space (11 Whatney, Irvine, California) from Amnet Holdings. The lease expires on June 30, 2022 and provides for base monthly payments of $28,683 which adjust annually based upon the Los Angeles/Anaheim/Riverside Urban Consumer Price Index, not to exceed 7%, but a minimum of 3%, in any one annual increase. We incurred rent expense of $0.1 million in the first quarter of both fiscal 2015 and fiscal 2014 related to the lease. | |
We lease a building (17 Pasteur, Irvine, California) from Amnet Holdings. The lease expires on October 31, 2021 and provides for base monthly rent payments of $76,024. We use this property as our e-commerce fulfillment center. The lease payments adjust annually based upon the Los Angeles/Anaheim/Riverside Urban Consumer Price Index, not to exceed 7%, but a minimum of 3%, in any one annual increase. We incurred rent expense of $0.2 million in the first quarter of both fiscal 2015 and fiscal 2014 related to this lease. | |
We lease our corporate headquarters and distribution center (10 and 12 Whatney, Irvine, California) from Shaked Holdings. On June 29, 2012, we exercised the first of our three five-year renewal options on this lease, with the renewal commencing on January 1, 2013 and expiring on December 31, 2017. The land component of this lease is accounted for as an operating lease and the building component is accounted for as a capital lease. The capital lease obligation was $2.3 million and $2.5 million as of May 2, 2015 and January 31, 2015, respectively. Payments under the capital lease obligation including principal and interest totaled $0.4 million in the first quarter of fiscal 2015. The gross amount of the building under capital lease was $7.8 million as of May 2, 2015 and January 31, 2015. The accumulated depreciation of the building under capital lease was $6.4 million and $6.3 million as of May 2, 2015 and January 31, 2015, respectively. We incurred rent expense of $0.2 million in the first quarter of fiscal 2015 related to the operating (land component) of this lease. | |
Prior to signing the related party leases, we received an independent market analysis regarding the property and therefore believe that the terms of each lease are reasonable and are not materially different than terms we would have obtained from an unaffiliated third party. | |
Tax Indemnification Agreements | |
In connection with the Reorganization, we entered into certain tax indemnification agreements with each of the Hezy Shaked Living Trust and the Tilly Levine Separate Property Trust. Pursuant to such tax indemnification agreements, we agreed to indemnify, defend and hold harmless each such stockholder on an after-tax basis against additional income taxes, plus interest and penalties resulting from adjustments made, as a result of a final determination made by a competent tax authority, to the taxable income our subsidiary, World of Jeans & Tops, Inc., reported as an “S” Corporation. Such agreement provides that we defend and hold harmless such stockholders against any losses, costs or expenses, including reasonable attorneys’ fees, arising out of a claim for such tax liability. | |
Tilly’s Life Center | |
Tilly’s Life Center (TLC) is a charitable organization that was founded and is run by Ms. Levine. In June 2014, our Board of Directors approved support for TLC of up to $20,000. We incurred costs of approximately $3,000 related to printing of TLC’s program’s materials during the first quarter of fiscal 2015. We also provide support for marketing and website services for TLC. |
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Investments in Marketable Securities | The following table summarizes our investments in marketable securities at May 2, 2015 and January 31, 2015 (in thousands): | ||||||||||||||||
May 2, 2015 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
Commercial paper | $ | 34,938 | $ | 34 | $ | (1 | ) | $ | 34,971 | ||||||||
31-Jan-15 | |||||||||||||||||
Cost | Gross | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
Commercial paper | $ | 34,922 | $ | 35 | $ | — | $ | 34,957 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
2-May-15 | |||||||||||||||||||||||||
Financial Assets Categorized Based on Priority of Inputs to Valuation Technique Instruments | In accordance with GAAP, we categorized our financial assets based on the priority of the inputs to the valuation technique for the instruments as follows (in thousands): | ||||||||||||||||||||||||
May 2, 2015 | January 31, 2015 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market securities | $ | 29,454 | $ | — | $ | — | $ | 34,433 | $ | — | $ | — | |||||||||||||
Marketable securities: | |||||||||||||||||||||||||
Commercial paper | — | 34,971 | — | — | 34,957 | — |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Stock Option Activity Under Stock Option Plan | The following table summarizes the stock option activity for the thirteen weeks ended May 2, 2015 (aggregate intrinsic value in thousands): | ||||||||||||||||
Stock | Grant Date | Weighted | Aggregate | ||||||||||||||
Options | Weighted | Average | Intrinsic | ||||||||||||||
Average | Remaining | Value(1) | |||||||||||||||
Exercise Price | Contractual | ||||||||||||||||
Life (in Years) | |||||||||||||||||
Outstanding at January 31, 2015 | 2,880,040 | $ | 13.03 | ||||||||||||||
Granted | 37,500 | $ | 16.03 | ||||||||||||||
Exercised | (266,140 | ) | $ | 9.74 | |||||||||||||
Forfeited | (13,125 | ) | $ | 13.2 | |||||||||||||
Outstanding at May 2, 2015 | 2,638,275 | $ | 13.4 | 7.2 | $ | 3,348 | |||||||||||
Vested and expected to vest at May 2, 2015 | 2,553,131 | $ | 13.42 | 7.1 | $ | 3,247 | |||||||||||
Exercisable at May 2, 2015 | 1,457,900 | $ | 13.44 | 6.2 | $ | 2,188 | |||||||||||
-1 | Intrinsic value for stock options is defined as the difference between the market price of our Class A common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period. The market value per share was $13.76 at May 2, 2015. | ||||||||||||||||
Assumptions Used to Estimate Fair Value of Stock Options Granted | The fair value of stock options granted during the thirteen weeks ended May 2, 2015 and May 3, 2014 was estimated on the grant date using the following assumptions: | ||||||||||||||||
Thirteen Weeks Ended | |||||||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||||||
Expected option term(1) | 5.0 years | 5.0 years | |||||||||||||||
Expected volatility factor(2) | 47.8 | % | 46.9 | % | |||||||||||||
Risk-free interest rate(3) | 1.4 | % | 1.8 | % | |||||||||||||
Expected annual dividend yield | 0 | % | 0 | % | |||||||||||||
-1 | We have limited historical information regarding the expected option term. Accordingly, we determined the expected option term of the awards using historical data available from comparable public companies and management’s expectation of exercise behavior. | ||||||||||||||||
-2 | Stock volatility for each grant is measured using the weighted average of historical daily price changes of our competitors’ common stock over the most recent period equal to the expected option term of the awards. | ||||||||||||||||
-3 | The risk-free interest rate is determined using the rate on treasury securities with the same term as the expected life of the stock option as of the grant date. | ||||||||||||||||
Summary of Status of Non-Vested Restricted Stock | A summary of the status of non-vested restricted stock as of May 2, 2015 and changes during the first quarter of fiscal 2015 are presented below: | ||||||||||||||||
Restricted | Weighted | ||||||||||||||||
Stock | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested at January 31, 2015 | 48,584 | $ | 9.88 | ||||||||||||||
Granted | 280,000 | $ | 16.07 | ||||||||||||||
Nonvested at May 2, 2015 | 328,584 | $ | 15.15 | ||||||||||||||
Schedule of Stock Based Compensation | The following table summarizes stock-based compensation recorded in the Consolidated Statements of Income: | ||||||||||||||||
Thirteen Weeks Ended | |||||||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||||||
Cost of goods sold | $ | 239 | $ | 172 | |||||||||||||
Selling, general and administrative expenses | 1,030 | 666 | |||||||||||||||
Stock-based compensation | $ | 1,269 | $ | 838 | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted net income per share are as follows (in thousands, except per share amounts): | ||||||||
Thirteen Weeks Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Net income | $ | 1,282 | $ | 591 | |||||
Weighted average basic shares outstanding | 28,173 | 27,983 | |||||||
Dilutive effect of stock options and restricted stock | 148 | 168 | |||||||
Weighted average shares for diluted earnings per share | 28,321 | 28,151 | |||||||
Basic earnings per share | $ | 0.05 | $ | 0.02 | |||||
Diluted earnings per share | $ | 0.05 | $ | 0.02 | |||||
Description_of_Company_and_Bas
Description of Company and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Store | ||
State | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||
Number of Stores | 213 | |
Number of States | 33 | |
Cost of goods sold | $84,138,000 | $79,807,000 |
Deferred rent | -562,000 | 798,000 |
Restatement Adjustment | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||
Cost of goods sold | -400,000 | |
Accrual of contingent rent liability | 400,000 | |
Deferred rent | ($400,000) |
Investments_in_Marketable_Secu
Investments in Marketable Securities (Detail) (Commercial Paper, USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Commercial Paper | ||
Financial Instruments And Marketable Securities [Line Items] | ||
Cost | $34,938 | $34,922 |
Gross Unrealized Holding Gains | 34 | 35 |
Gross Unrealized Holding Losses | -1 | |
Estimated Fair Value | $34,971 | $34,957 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gains on sales and maturities of marketable securities | $31 | $37 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
Mar. 17, 2014 | 2-May-15 | 3-May-14 | Mar. 17, 2014 | |
Line of Credit Facility [Line Items] | ||||
Line of credit amended date | 17-Mar-14 | |||
Eliminated percentage of commitment fee on the unused amount of facility | 0.10% | |||
Letters of credit facility maximum borrowing capacity | $25,000,000 | $25,000,000 | ||
Line of credit maturity date | 31-May-17 | |||
Line of credit interest rate term | The interest charged on borrowings is either at the London Interbank Offered Rate, or LIBOR, plus 1.00%, or at the bank's prime rate. We have the ability to select between the prime rate or LIBOR-based rate at the time of a cash advance. | |||
Covenant description | We are required to maintain certain financial and nonfinancial covenants in accordance with the revolving credit facility. The financial covenants require certain levels of leverage and profitability, such as (i) an aggregate maximum net loss after taxes not to exceed $5 million (measured at the end of each fiscal quarter), with no more than one annual net loss after taxes for any fiscal year (in either case, excluding all charges for impairment of goodwill, other intangibles and store assets impairment on the balance sheet of WOJT, in an aggregate amount of up to $2.0 million for the relevant period), and (ii) a maximum ratio of 2.00 to 1.00 for bbalance sheet leverageb, defined as total liabilities divided by total tangible net worth. | |||
Net loss after taxes | 1,282,000 | 591,000 | ||
Covenant compliance | We were in compliance with all of our covenants and had no outstanding borrowings under the revolving credit facility. | |||
Outstanding borrowing | 0 | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Net loss after taxes | -5,000,000 | |||
Impairment of goodwill & other intangible assets | 2,000,000 | |||
Balance sheet leverage | 200.00% | |||
London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, percentage point added to reference rate | 1.00% | |||
Stand-by and Commercial Letters of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit facility maximum borrowing capacity | $15,000,000 | $15,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | |||
Jun. 10, 2015 | Dec. 05, 2012 | Jun. 10, 2014 | Nov. 06, 2014 | |
LegalMatter | LegalMatter | LegalMatter | ||
Subsequent Event | ||||
Commitment And Contingencies [Line Items] | ||||
Litigation settlement | $2,000,000 | |||
litigation settlement terms | Three years | |||
Advance payment amount of litigation exchange with promissory note | 200,000 | |||
Amount of promissory notes | 200,000 | |||
Estimated minimum reasonably possible loss | 0 | |||
Estimated maximum reasonably possible loss | 2,000,000 | |||
Subsequent Event | Minimum | ||||
Commitment And Contingencies [Line Items] | ||||
Purchasing agreement offset by promissory note | $1,000,000 | |||
Maria Rebolledo, individually and on behalf of all others similarly situated and on behalf of the general public vs. Tilly's, Inc.; World of Jeans & Tops, | ||||
Commitment And Contingencies [Line Items] | ||||
Plaintiff filed putative class action lawsuit | 1 | |||
Karina Whitten, on behalf of herself and all others similarly situated, v. Tilly's Inc. | ||||
Commitment And Contingencies [Line Items] | ||||
Plaintiff filed putative class action lawsuit | 1 | |||
Herbert Ortiz and Audra Haynes, individually, and on behalf of the generally public, v. Tilly's Inc. | ||||
Commitment And Contingencies [Line Items] | ||||
Plaintiff filed putative class action lawsuit | 1 |
Financial_Assets_Categorized_B
Financial Assets Categorized Based on Priority of Inputs to Valuation Technique Instruments (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 | Cash Equivalents | Money Market Instruments | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | $29,454 | $34,433 |
Fair Value, Inputs, Level 2 | Marketable Securities | Commercial Paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities, fair value disclosure | $34,971 | $34,957 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 3 Months Ended | 1 Months Ended | |
2-May-15 | Jun. 30, 2014 | Apr. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonqualified options vesting period | 4 years | ||
Nonqualified options expiration period | 10 years | ||
Percentage of awards vesting on grant date | 25.00% | ||
Stock Incentive Plan 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance | 2,147,409 | ||
Stock Incentive Plan 2012 | Class A common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares authorized, increase in number of shares reserved for issuance | 1,500,000 | ||
Common shares authorized | 4,413,900 | 2,913,900 |
Stock_Option_Activity_Under_St
Stock Option Activity Under Stock Option Plan (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | 2-May-15 | |
Stock options | ||
Beginning balance | 2,880,040 | |
Granted | 37,500 | |
Exercised | -266,140 | |
Forfeited | -13,125 | |
Ending balance | 2,638,275 | |
Vested and expected to vest ending balance | 2,553,131 | |
Exercisable ending balance | 1,457,900 | |
Grant date weighted average exercise price | ||
Beginning balance | $13.03 | |
Granted | $16.03 | |
Exercised | $9.74 | |
Forfeited | $13.20 | |
Ending balance | $13.40 | |
Vested and expected to vest ending balance | $13.42 | |
Exercisable ending balance | $13.44 | |
Average remaining contractual life | ||
Outstanding at end of period | 7 years 2 months 12 days | |
Vested and expected to vest end of period | 7 years 1 month 6 days | |
Exercisable ending balance | 6 years 2 months 12 days | |
Aggregate intrinsic value | ||
Outstanding at end of period | $3,348 | [1] |
Vested and expected to vest ending balance | 3,247 | [1] |
Exercisable ending balance | $2,188 | [1] |
[1] | Intrinsic value for stock options is defined as the difference between the market price of our Class A common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period. The market value per share was $13.76 at May 2, 2015. |
Stock_Option_Activity_Under_St1
Stock Option Activity Under Stock Option Plan (Parenthetical) (Detail) (Class A common Stock, USD $) | 2-May-15 |
Class A common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Market value per share | $13.76 |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) | 3 Months Ended | |||
2-May-15 | 3-May-14 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected option term | 5 years | [1] | 5 years | [1] |
Expected volatility factor | 47.80% | [2] | 46.90% | [2] |
Risk-free interest rate | 1.40% | [3] | 1.80% | [3] |
Expected annual dividend yield | 0.00% | 0.00% | ||
[1] | We have limited historical information regarding the expected option term. Accordingly, we determined the expected option term of the awards using historical data available from comparable public companies and management's expectation of exercise behavior. | |||
[2] | Stock volatility for each grant is measured using the weighted average of historical daily price changes of our competitors' common stock over the most recent period equal to the expected option term of the awards. | |||
[3] | The risk-free interest rate is determined using the rate on treasury securities with the same term as the expected life of the stock option as of the grant date. |
Share_Based_Compensation_Addit
Share Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 2-May-15 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of awards vesting on grant date | 25.00% |
Total unrecognized stock-based compensation expense related to unvested stock options and restricted stock grants | $10.90 |
Weighted average recognition period | 3 years |
Independent Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of awards vesting on grant date | 50.00% |
Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of awards vesting on grant date | 25.00% |
Summary_of_Status_of_NonVested
Summary of Status of Non-Vested Restricted Stock (Detail) (Non Vested, USD $) | 3 Months Ended |
2-May-15 | |
Non Vested | |
Shares | |
Beginning Balance, shares | 48,584 |
Granted, shares | 280,000 |
Ending Balance, shares | 328,584 |
Weighted average grant date fair value | |
Weighted average grant date fair value, Beginning Balance | $9.88 |
Weighted average grant date fair value, Granted | $16.07 |
Weighted average grant date fair value, Ending Balance | $15.15 |
Schedule_of_Stock_Based_Compen
Schedule of Stock Based Compensation (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $1,269 | $838 |
Cost of Goods Sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 239 | 172 |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $1,030 | $666 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Income Taxes [Line Items] | ||
Effective Tax Rate | 40.00% | 45.10% |
Tax year under examination | 2012 |
Components_of_Basic_and_Dilute
Components of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Net income | $1,282 | $591 |
Weighted average basic shares outstanding | 28,173 | 27,983 |
Dilutive effect of stock options and restricted stock | 148 | 168 |
Weighted average common shares for diluted earnings per share | 28,321 | 28,151 |
Class A and Class B common stock | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||
Basic earnings per share | $0.05 | $0.02 |
Diluted earnings per share | $0.05 | $0.02 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Earnings Per Share [Line Items] | ||
Stock options and restricted stock excluded from the calculation of diluted earning per share | 2,013,000 | 2,114,000 |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2015 | Jun. 30, 2014 | 2-May-15 | 3-May-14 | |
Related Party Transaction [Line Items] | ||||
Cost incurred related to printing of TLC's program's materials | $3,000 | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Found approved for support TLC | 20,000 | |||
Related Party | Office and warehouse space | 11 Whatney, Irvine, California | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | 30-Jun-22 | |||
Lease monthly payments | 28,683 | |||
Consumer price index | 7.00% | |||
Consumer price index | 3.00% | |||
Rent expense | 100,000 | 100,000 | ||
Related Party | Building | 17 Pasteur, Irvine, California | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | 31-Oct-21 | |||
Lease monthly payments | 76,024 | |||
Consumer price index | 7.00% | |||
Consumer price index | 3.00% | |||
Rent expense | 200,000 | 200,000 | ||
Related Party | Corporate headquarters and distribution center | 10 and 12 Whatney, Irvine, California | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | 31-Dec-17 | |||
Rent expense | 200,000 | |||
Capital lease obligation outstanding | 2,500,000 | 2,300,000 | ||
Gross amount of building under capital lease | 7,800,000 | 7,800,000 | ||
Accumulated depreciation of the building under capital lease | $6,300,000 | $6,400,000 | ||
Related Party | Corporate headquarters and distribution center | 10 and 12 Whatney, Irvine, California | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Term of renewal options | 3 years | |||
Related Party | Corporate headquarters and distribution center | 10 and 12 Whatney, Irvine, California | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Term of renewal options | 5 years | |||
Executive officers | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 5.00% | |||
Ms. Levine, Co-Founder | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 5.00% | |||
Mr. Shaked, Hezy Shaked Living Trust | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 63.00% | |||
Ms. Levine, Tilly Levine Trust | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 37.00% |