Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 24, 2016 | Aug. 01, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TLYS | ||
Entity Registrant Name | TILLY'S, INC. | ||
Entity Central Index Key | 1,524,025 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 103,776,667 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,429,335 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 16,069,097 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 51,020 | $ 49,789 |
Marketable securities | 49,932 | 34,957 |
Receivables | 5,397 | 4,682 |
Merchandise inventories | 51,357 | 51,507 |
Prepaid expenses and other current assets | 12,968 | 12,349 |
Total current assets | 170,674 | 153,284 |
Property and equipment, net | 99,026 | 101,335 |
Other assets | 1,051 | 2,932 |
Total assets | 270,751 | 257,551 |
Current liabilities: | ||
Accounts payable | 16,022 | 23,109 |
Accrued expenses | 18,901 | 12,325 |
Deferred revenue | 8,174 | 7,075 |
Accrued compensation and benefits | 5,751 | 5,911 |
Current portion of deferred rent | 6,106 | 6,070 |
Current portion of capital lease obligation | 858 | 806 |
Total current liabilities | 55,812 | 55,296 |
Long-term portion of deferred rent | 40,891 | 41,875 |
Long-term portion of capital lease obligation | 835 | 1,694 |
Total long-term liabilities | 41,726 | 43,569 |
Total liabilities | $ 97,538 | $ 98,865 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; January 30, 2016 and January 31, 2015—10,000 shares authorized, no shares issued or outstanding | $ 0 | $ 0 |
Additional paid-in capital | 133,550 | 126,565 |
Retained earnings | 39,613 | 32,072 |
Accumulated other comprehensive income | 22 | 21 |
Total stockholders’ equity | 173,213 | 158,686 |
Total liabilities and stockholders’ equity | 270,751 | 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) - $ / shares | Jan. 30, 2016 | Jan. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 12,305,000 | 11,546,000 |
Common stock, shares outstanding (in shares) | 12,305,000 | 11,546,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 16,169,000 | 16,544,000 |
Common stock, shares outstanding (in shares) | 16,169,000 | 16,544,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net sales | $ 550,991 | $ 518,294 | $ 495,837 |
Cost of goods sold (includes buying, distribution, and occupancy costs) | 383,745 | 362,762 | 345,015 |
Gross profit | 167,246 | 155,532 | 150,822 |
Selling, general and administrative expenses | 149,150 | 132,343 | 121,085 |
Operating income | 18,096 | 23,189 | 29,737 |
Other income (expense), net | 52 | (14) | (9) |
Income before income taxes | 18,148 | 23,175 | 29,728 |
Income tax expense | 10,607 | 9,100 | 11,591 |
Net income | $ 7,541 | $ 14,075 | $ 18,137 |
Weighted average basic shares outstanding (in shares) | 28,332 | 28,013 | 27,822 |
Weighted average diluted shares outstanding (in shares) | 28,402 | 28,078 | 28,116 |
Class A and Class B common stock | |||
Basic earnings per share (in dollars per share) | $ 0.27 | $ 0.50 | $ 0.65 |
Diluted earnings per share (in dollars per share) | $ 0.27 | $ 0.50 | $ 0.65 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 7,541 | $ 14,075 | $ 18,137 |
Other comprehensive income, net of tax: | |||
Net change in unrealized gains (losses) on available-for-sale securities | 1 | 9 | (5) |
Other comprehensive income (loss), net of tax | 1 | 9 | (5) |
Comprehensive income | $ 7,542 | $ 14,084 | $ 18,132 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income | Class A Common Stock | Class B Common Stock |
Beginning Balance (in shares) at Feb. 02, 2013 | 10,772,000 | 16,920,000 | |||||
Beginning Balance at Feb. 02, 2013 | $ 117,296 | $ 28 | $ 117,391 | $ (140) | $ 17 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 18,137 | 18,137 | |||||
Shares converted by founders (in shares) | 278,000 | (278,000) | |||||
Stock-based compensation expense | 3,106 | 3,106 | |||||
Restricted stock (in shares) | 31,000 | ||||||
Exercise of stock options (in shares) | 280,000 | ||||||
Exercise of stock options | 2,389 | 2,389 | |||||
Net change in unrealized gain (loss) on available-for-sale securities | (5) | (5) | |||||
Ending Balance (in shares) at Feb. 01, 2014 | 11,361,000 | 16,642,000 | |||||
Ending Balance at Feb. 01, 2014 | 140,923 | 28 | 122,886 | 17,997 | 12 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 14,075 | 14,075 | |||||
Shares converted by founders (in shares) | 98,000 | (98,000) | |||||
Stock-based compensation expense | 3,499 | 3,499 | |||||
Excess tax deficiencies from stock-based compensation | (124) | (124) | |||||
Restricted stock (in shares) | 49,000 | ||||||
Exercise of stock options (in shares) | 38,000 | ||||||
Exercise of stock options | 304 | 304 | |||||
Net change in unrealized gain (loss) on available-for-sale securities | 9 | 9 | |||||
Ending Balance (in shares) at Jan. 31, 2015 | 11,546,000 | 16,544,000 | |||||
Ending Balance at Jan. 31, 2015 | 158,686 | 28 | 126,565 | 32,072 | 21 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,541 | 7,541 | |||||
Shares converted by founders (in shares) | 375,000 | (375,000) | |||||
Stock-based compensation expense | 3,926 | 3,926 | |||||
Excess tax deficiencies from stock-based compensation | $ (35) | (35) | |||||
Restricted stock (in shares) | 48,000 | ||||||
Exercise of stock options (in shares) | 336,140 | 336,000 | |||||
Exercise of stock options | $ 3,094 | 3,094 | |||||
Net change in unrealized gain (loss) on available-for-sale securities | 1 | 1 | |||||
Ending Balance (in shares) at Jan. 30, 2016 | 12,305,000 | 16,169,000 | |||||
Ending Balance at Jan. 30, 2016 | $ 173,213 | $ 28 | $ 133,550 | $ 39,613 | $ 22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Cash flows from operating activities | |||
Net income | $ 7,541 | $ 14,075 | $ 18,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,808 | 21,237 | 19,367 |
Stock-based compensation expense | 3,926 | 3,499 | 3,106 |
Impairment of assets | 2,593 | 1,007 | 1,840 |
Loss on disposal of assets | 304 | 118 | 140 |
Gain on sales and maturities of marketable securities | (100) | (116) | (176) |
Deferred income taxes | 1,554 | 1,150 | (304) |
Excess tax benefit from stock-based compensation | (95) | (22) | (157) |
Changes in operating assets and liabilities: | |||
Receivables | (715) | 3,863 | (2,611) |
Merchandise inventories | 150 | (5,241) | 329 |
Prepaid expenses and other assets | (293) | (255) | (1,253) |
Accounts payable | (6,993) | 3,720 | 1,554 |
Accrued expenses | 6,179 | 3,662 | (1,796) |
Accrued compensation and benefits | (160) | 936 | (1,119) |
Deferred rent | (948) | (206) | 5,976 |
Deferred revenue | 1,099 | 861 | 761 |
Net cash provided by operating activities | 36,850 | 48,288 | 43,794 |
Cash flows from investing activities | |||
Purchase of property and equipment | (23,100) | (23,636) | (42,701) |
Proceeds from sale of property and equipment | 7 | 41 | 79 |
Purchases of marketable securities | (74,873) | (59,884) | (44,908) |
Maturities of marketable securities | 60,000 | 60,000 | 50,000 |
Net cash used in investing activities | (37,966) | (23,479) | (37,530) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options | 3,094 | 304 | 2,389 |
Payment of capital lease obligation | (807) | (758) | (712) |
Taxes paid in lieu of shares issued for stock-based compensation | (35) | 0 | 0 |
Excess tax benefit from stock-based compensation | 95 | 22 | 157 |
Net cash provided by (used in) financing activities | 2,347 | (432) | 1,834 |
Change in cash and cash equivalents | 1,231 | 24,377 | 8,098 |
Cash and cash equivalents, beginning of period | 49,789 | 25,412 | 17,314 |
Cash and cash equivalents, end of period | 51,020 | 49,789 | 25,412 |
Supplemental disclosures of cash flow information | |||
Interest paid | 133 | 182 | 253 |
Income taxes paid | 7,473 | 4,511 | 14,969 |
Supplemental disclosure of non-cash activities | |||
Unpaid purchases of property and equipment | $ 1,817 | $ 1,513 | $ 2,348 |
Description of the Company and
Description of the Company and Basis of Presentation | 12 Months Ended |
Jan. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company and Basis of Presentation | Description of the Company and Basis of Presentation Tillys is a leading destination specialty retailer of West Coast inspired casual apparel, footwear and accessories for young men, young women, boys and girls. Tillys is headquartered in Irvine, California and we operated 224 stores in 32 states as of January 30, 2016 . Our 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 the same assortment of products as is carried in our brick-and-mortar stores, supplemented by additional online only styles. Our goal is to serve as a destination for the latest, most relevant merchandise and brands important to our customers. The Tillys concept began in 1982 when our co-founders, Hezy Shaked and Tilly Levine, opened their first store in Orange County, California. Since 1984 the business has been conducted through World of Jeans & Tops, a California corporation, or “WOJT”, which operates under the name “Tillys”. In May 2011, Tilly’s, Inc., a Delaware corporation, was formed solely for the purpose of reorganizing the corporate structure of WOJT in preparation for an initial public offering. On May 2, 2012, the shareholders of WOJT contributed all of their equity interests in WOJT to Tilly’s, Inc. in exchange for shares of Tilly’s, Inc. Class B common stock on a one-for-one basis. In addition, WOJT terminated its “S” Corporation status and became a “C” Corporation. These events are collectively referred to as the “Reorganization Transaction”. As a result of the Reorganization Transaction, WOJT became a wholly owned subsidiary of Tilly’s, Inc. As used in these Notes to Consolidated Financial Statements, except where the context otherwise requires or where otherwise indicated, the terms "the Company", "World of Jeans and Tops", "WOJT", "we", "our", "us" and "Tillys" refer to WOJT before the Reorganization Transaction (as defined above), and to Tilly's, Inc. and its subsidiary after the Reorganization Transaction. Fiscal Year Our fiscal year ends on the Saturday closest to January 31. Fiscal years 2015 , 2014 and 2013 ended on January 30, 2016 , January 31, 2015 and February 1, 2014 , respectively. Fiscal years 2015 , 2014 and 2013 each included 52 weeks. Segment Reporting Accounting principles generally accepted in the United States (“GAAP”) has established guidance for reporting information about a company’s operating segments, including disclosures related to our products and services, geographic areas and major customers. We identify our operating segments based on how our business is managed and evaluated. Our operating segments have been aggregated into one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. All of our identifiable assets are in the United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents We consider all short-term investments with an initial maturity of 90 days or less when purchased to be cash equivalents. Marketable Securities Marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of income taxes, reflected as a separate component of stockholders’ equity until realized. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. We classify all marketable securities within current assets on our consolidated balance sheet, including those with maturity dates beyond twelve months, as they are available to support our current operational liquidity needs. Merchandise Inventories Merchandise inventories are comprised of finished goods offered for sale at our retail stores and online. Inventories are stated at the lower of cost or market using the retail inventory method. An initial markup is applied to inventory at cost in order to establish a cost-to-retail ratio. We believe that the retail inventory method approximates cost. Shipping and handling costs for merchandise shipped to customers of $6.7 million , $6.7 million and $6.6 million in fiscal years 2015 , 2014 and 2013 , respectively, are included in cost of goods sold in the Consolidated Statements of Income. We review our inventory levels to identify slow-moving merchandise and generally use markdowns to clear this merchandise. At any given time, merchandise inventories include items that have been marked down to management’s best estimate of their fair market value at retail price, with a proportionate write-down to the cost of the inventory. Our management bases the decision to mark down merchandise primarily upon its current sell-through rate and the age of the item, among other factors. These markdowns may have an adverse impact on earnings, depending on the extent and amount of inventory affected. Markdowns are recorded as an increase to cost of goods sold in the consolidated statements of income. Total markdowns, including permanent and promotional markdowns, on a cost basis were $41.5 million , $37.0 million and $35.7 million in fiscal years 2015 , 2014 and 2013 , respectively. In addition, we accrued $0.6 million and $0.9 million for planned but unexecuted markdowns, including markdowns related to slow moving merchandise, as of January 30, 2016 and January 31, 2015 , respectively. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Equipment is depreciated over five to seven years. Furniture and fixtures are depreciated over five years. Computer software is depreciated over three years. Leasehold improvements and the cost of acquiring leasehold rights are amortized over the lesser of the term of the lease or the estimated useful life of the improvement. The cost of assets sold or retired and the related accumulated depreciation is removed from the accounts with any resulting gain or loss included in net income. Repairs and maintenance costs are charged directly to expense as incurred. Major renewals, replacements and improvements that substantially extend the useful life of an asset are capitalized and depreciated. Impairment of Long-Lived Assets Impairments are recorded on long-lived assets used in operations whenever events or changes in circumstances indicate that the net carrying amounts may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant underperformance relative to historical or planned operating results, significant changes in the manner of use of the assets or significant changes in business strategies. At least quarterly, an evaluation is performed using estimated undiscounted future cash flows from operating activities compared to the carrying value of related assets for the individual stores. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized for the difference between the carrying value and the estimated fair value of the assets based on the discounted cash flows of the assets using a rate that approximates the weighted average cost of capital. With regard to retail store assets, which are comprised of leasehold improvements, fixtures and computer hardware and software, we consider the assets at each individual retail store to represent an asset group. In addition, we have considered the relevant valuation techniques that could be applied without undue cost and effort and have determined that the discounted estimated future cash flow approach provides the most relevant and reliable means by which to determine fair value in this circumstance. Refer to "Note 11: Fair Value Measurements", for further information. Operating Leases We lease our retail stores under non-cancellable operating leases. Most store leases include tenant allowances from landlords, rent escalation clauses and/or contingent rent provisions. We recognize rent expense on a straight-line basis over the lease term, excluding contingent rent, and record the difference between the amount charged to expense and the rent paid as a deferred rent liability. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when the achievement of the specified sales that triggers the contingent rent is probable. Deferred Rent and Tenant Allowances Deferred rent is recognized when a lease contains fixed rent escalations. We recognize the related rent expense on a straight-line basis starting from the date of possession and record the difference between the recognized rental expense and cash rent payable as deferred rent. Deferred rent also includes tenant allowances received from landlords in accordance with negotiated lease terms. The tenant allowances are amortized as a reduction to rent expense on a straight-line basis over the term of the lease starting at the date of possession. Revenue Recognition Revenue is recognized for store sales when the customer receives and pays for the merchandise at the register. Taxes collected from our customers are recorded on a net basis. For e-commerce sales, we recognize revenue, net of sales taxes and estimated sales returns, and the related cost of goods sold at the time the merchandise is received by the customer. We defer e-commerce revenue and the associated product and shipping costs for shipments that are in-transit to the customer. Customers typically receive goods within four days of shipment. Amounts related to shipping and handling that are billed to customers are reflected in net sales, and the related costs are reflected in cost of goods sold in the Consolidated Statements of Income. For fiscal years 2015 , 2014 and 2013 , shipping and handling fee revenue included in net sales was $2.7 million , $2.6 million , $3.3 million , respectively. We accrue for estimated sales returns by customers based on historical sales return results. Sales return accrual activity for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal Year Ended January 30, 2016 January 31, February 1, Beginning balance $ 648 $ 573 $ 703 Provisions 20,835 16,875 15,938 Usage (20,477 ) (16,800 ) (16,068 ) Ending balance $ 1,006 $ 648 $ 573 We recognize revenue from gift cards as they are redeemed for merchandise. Prior to redemption, we maintain a current liability for unredeemed gift card balances. The customer liability balance was $8.2 million and $7.1 million as of January 30, 2016 and January 31, 2015 , respectively, and is included in deferred revenue on the balance sheets. Our gift cards do not have expiration dates; however, over time, the redemption of some gift cards becomes remote and in most cases there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card “breakage”). An assessment of the ultimate non-redemption rate of gift cards is performed when enough time has passed since the activation of the cards to enable a determination of the ultimate breakage rate based upon historical redemption experience. This date of assessment has historically been two full fiscal years after the fiscal year the cards were activated. At the time of assessment a breakage estimate is calculated and recorded in net sales. Breakage revenue for gift cards was $0.8 million , $0.8 million and $0.6 million in fiscal years 2015 , 2014 and 2013 , respectively. Cost of Goods Sold and Selling, General and Administrative Expenses The following illustrates the primary costs classified in each major expense category: Cost of Goods Sold • Costs of products sold, include: • freight expenses associated with moving merchandise inventories from our vendors to our distribution center; • vendor allowances; • cash discounts on payments to merchandise vendors; • physical inventory losses; and • markdowns of inventory. • Buying, distribution and occupancy costs, include: • payroll and benefit costs and incentive compensation for merchandise purchasing personnel; • customer shipping and handling expenses; • costs associated with operating our distribution and fulfillment center, including payroll and benefit costs for our distribution center, occupancy costs, and depreciation; • freight expenses associated with moving merchandise inventories from our distribution center to our stores and e-commerce customers; and • store occupancy costs including rent, maintenance, utilities, property taxes, business licenses, security costs and depreciation. Selling, General and Administrative Expenses • Payroll, benefit costs and incentive compensation for store, regional, e-commerce and corporate employees; • Occupancy and maintenance costs of corporate office facilities; • Depreciation related to corporate office assets; • Advertising and marketing costs, net of reimbursement from vendors; • Tender costs, including costs associated with credit and debit card interchange fees; • Long-lived asset impairment charges; • Other administrative costs such as supplies, consulting, audit and tax preparation fees, travel and lodging; and • Charitable contributions. Store Pre-opening Costs Store pre-opening costs consist primarily of occupancy costs, which are included in cost of goods sold, and payroll expenses, which are included in selling, general and administrative expenses, in the Consolidated Statements of Income. Advertising We expense advertising costs as incurred, except for direct-mail advertising expenses which are recognized at the time of mailing. Advertising costs include such things as production and distribution of print and digital catalogs; print, online and mobile advertising costs; radio advertisements; and grand openings and other events. Advertising expense, which is classified in selling, general and administrative expenses in the accompanying Consolidated Statements of Income, was $19.7 million , $15.7 million and $14.1 million in fiscal years 2015 , 2014 and 2013 , respectively. Share-Based Compensation We apply the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation-Stock Compensation (“ASC 718”), for accounting for equity instruments exchanged for employee services. Under the provisions of this statement, share-based compensation expense is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense on a straight-line basis over the employee’s requisite service period (generally the vesting period of the equity grant). As required under this guidance, we estimate forfeitures for options granted which are not expected to vest. Changes in these inputs and assumptions can materially affect the measurement of the estimated fair value of share-based compensation expense. Refer to “Note 12: Share-Based Compensation” for further information. Income Taxes We account for income taxes and the related accounts using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”). Under this method, we accrue income taxes payable or refundable and recognize deferred tax assets and liabilities based on differences between GAAP and tax bases of assets and liabilities. We measure deferred tax assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse, and recognize the effect of a change in enacted rates in the period of enactment. We establish assets and liabilities for uncertain positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. We include in income tax expense any interest and penalties related to uncertain tax positions. Refer to “Note 14: Income Taxes”, for further information. Earnings per Share Basic earnings per share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. Incremental shares of 70 thousand , 65 thousand and 294 thousand in fiscal years 2015 , 2014 and 2013 , respectively, were used in the calculation of diluted earnings per share. Refer to “Note 15: Earnings Per Share”, for further information. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents. At January 30, 2016 and January 31, 2015 , and at various times throughout these years, we had cash in financial institutions in excess of the $250,000 amount insured by the Federal Deposit Insurance Corporation. We typically invest our cash in highly rated, short-term commercial paper or in interest-bearing money market funds. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Correction of an Immaterial Error to Previously Issued Financial Statements Subsequent to the issuance of our January 31, 2015 consolidated financial statements, management determined that the change in deferred income taxes should have been presented as a cash inflow of $1.2 million in the fiscal year ended January 31, 2015 and a cash outflow of $0.3 million in the fiscal year ended February 1, 2014 with a corresponding change to prepaid expenses and other assets, with no net impact to total cash flows provided by operating activities. As a result, we corrected our accompanying fiscal 2014 and 2013 consolidated statements of cash flows. Management has concluded the errors are immaterial to the consolidated financial statements as of and for the years ended January 31, 2015 and February 1, 2014. New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 outlines principles that govern revenue recognition at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09, which will become effective for us in the first quarter of fiscal 2018, may be applied retrospectively for each period presented or retrospectively with the cumulative effect recognized in the opening retained earnings balance in fiscal year 2018. We are in the process of evaluating the impact of adopting the new standard on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 Balance Sheet Classification of Deferred Tax Assets, which simplifies the presentation of deferred tax liabilities and assets requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for us in the first quarter of fiscal 2017, with early adoption permitted. The new standard is expected to impact the presentation of deferred tax assets as noncurrent in our consolidated balance sheets. In February 2016, the FASB issued ASU, No. 2016-02, Leases (ASC 842). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for us in the first quarter of fiscal 2019, with early adoption permitted. The new standard is expected to impact our consolidated financial statements as we conduct all of our retail sales and corporate operations in leased facilities. We are in the process of evaluating the impact of adopting the new standard on our consolidated financial statements. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jan. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities are classified as available-for-sale and consisted entirely of commercial paper, all of which was less than one year from maturity. The following table summarizes investments in marketable securities at January 30, 2016 and January 31, 2015 (in thousands): Cost Gross Unrealized Holding Gains Fair Value Commercial paper at January 30, 2016 $49,894 $38 $49,932 Commercial paper at January 31, 2015 $34,922 $35 $34,957 For fiscal years 2015 , 2014 and 2013 , we recognized gains on investments of $0.1 million , $0.1 million and $0.2 million , 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 (expense), net, on the Consolidated Statements of Income. |
Receivables
Receivables | 12 Months Ended |
Jan. 30, 2016 | |
Receivables [Abstract] | |
Receivables | Receivables At January 30, 2016 and January 31, 2015 , receivables consisted of the following (in thousands): January 30, January 31, Credit and debit card receivables $ 2,698 $ 2,685 Tenant allowances due from landlords 1,749 1,789 Other 950 208 Total receivables $ 5,397 $ 4,682 We establish a receivable for amounts we expect to collect. The majority of year-end receivables are collected within the following fiscal quarter. We have not historically had significant write-offs for these receivables. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets At January 30, 2016 and January 31, 2015 , prepaid expenses and other current assets consisted of the following (in thousands): January 30, January 31, Prepaid rent $ 7,022 $ 6,596 Deferred taxes 3,897 3,594 Prepaid insurance 776 704 Prepaid maintenance 646 753 Prepaid marketing 305 411 Other 322 291 Total prepaid expenses and other current assets $ 12,968 $ 12,349 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment At January 30, 2016 and January 31, 2015 , property and equipment consisted of the following (in thousands): January 30, January 31, Leasehold improvements $ 131,414 $ 124,029 Furniture and fixtures 40,723 37,657 Machinery and equipment 30,163 28,771 Building under capital lease 7,840 7,840 Computer hardware and software 27,415 24,583 Construction in progress 2,940 2,454 Vehicles 1,709 1,470 242,204 226,804 Accumulated depreciation (143,178 ) (125,469 ) Property and equipment, net $ 99,026 $ 101,335 Depreciation expense related to property and equipment was $22.8 million , $21.2 million and $19.4 million in fiscal years 2015, 2014 and 2013, respectively. We incurred costs of $23.4 million , $22.8 million and $42.2 million for capital expenditures in fiscal years 2015 , 2014 and 2013 , respectively. Impairments are recorded on long-lived assets used in operations whenever events or changes in circumstances indicate that the net carrying amounts may not be recoverable.We recorded non-cash impairment charges of $2.6 million , $1.0 million and $1.8 million in selling, general and administrative expenses in fiscal years 2015 , 2014 and 2013 , respectively, to write down the carrying value of long-lived assets to their estimated fair values. Refer to "Note 11: Fair Value Measurements", for further information. If we are not able to achieve our projected key financial metrics, we may incur additional impairment in the future for long-lived assets. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses At January 30, 2016 and January 31, 2015 , accrued expenses consisted of the following (in thousands): January 30, January 31, Sales and use taxes payable $ 6,305 $ 1,611 Income taxes payable 2,218 600 Accrued construction 1,600 1,202 Merchandise returns 1,006 648 Minimum rent and common area maintenance 581 927 Other 7,191 7,337 Total accrued expenses $ 18,901 $ 12,325 |
Line of Credit
Line of Credit | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit Our amended and restated credit agreement with Wells Fargo Bank, N.A. ("Bank") provides for a $25.0 million revolving line of credit with a maturity date of May 31, 2017. The interest rate charged on borrowings is selected at our discretion at the time of draw between the London Interbank Offered Rate, plus 1.00% , or at the Bank’s prime rate. The line of credit is secured by substantially all of our assets. As a sub-feature under the revolving line of credit, the Bank may also issue stand-by and/or commercial letters of credit up to $15.0 million . We are required to maintain certain financial and non-financial covenants in accordance with the line of credit. 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, 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. On July 9, 2015, we further amended the agreement to modify the event of default with respect to a change in the composition of a majority of our Board of Directors in a period of 12 consecutive months, to no longer exclude from the determination any individual whose nomination for an assumption of office as a member of our Board of Directors occurred as a result of a solicitation of proxies or consents that was not made by or on behalf of our Board of Directors. As of January 30, 2016 , we were in compliance with all of our covenants and had no outstanding borrowings under the revolving credit facility. |
Leases
Leases | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Leases | Leases We conduct all of our retail sales and corporate operations in leased facilities. Lease terms generally range up to ten years and provide for escalations in base rents. We are generally not obligated to renew leases. Certain leases provide for additional rent based on a percentage of sales and annual rent increases generally based upon the Consumer Price Index. In addition, many of the store leases contain certain co-tenancy provisions that permit us to pay rent based on a pre-determined percentage of sales when the occupancy of the retail center falls below minimums established in the lease. Operating leases We lease office and warehouse space (11 Whatney, Irvine, California) from a company that is owned by one of the co-founders of Tillys. We incurred rent expense of $0.4 million , $0.3 million and $0.3 million in fiscal years 2015 , 2014 and 2013 , respectively, related to this lease. Pursuant to the lease agreement, the lease payment adjusts 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. The lease expires on June 30, 2022 . We lease a building (17 Pasteur, Irvine, California) from a company that is owned by one of the co-founders of Tillys. We use this property as our e-commerce distribution center. We incurred rent expense of $0.9 million , $0.9 million and $0.9 million in fiscal years 2015 , 2014 and 2013 , respectively, related to this lease. Pursuant to the lease agreement, the lease payment adjusts 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. The lease expires on October 31, 2021 . We previously leased warehouse space (15 Chrysler, Irvine, California) from a company that is owned by one of the co-founders of Tillys. We incurred rent expense of $0.1 million and $0.2 million in fiscal years 2014 and 2013 , respectively, related to this lease. The lease expired on October 31, 2014 . We subleased part of the building to an unrelated third party. Sublease income was $0.1 million in fiscal years 2014 and 2013 . Future minimum rental commitments, by year and in the aggregate, under non-cancellable operating leases, including fixed common area maintenance charges, if any, for the above buildings at 11 Whatney and 17 Pasteur and all of our store locations as of January 30, 2016 are as follows (in thousands): Fiscal Year Related Other Total 2016 $ 2,267 $ 67,901 $ 70,168 2017 2,226 64,723 66,949 2018 1,503 63,961 65,464 2019 1,430 53,340 54,770 2020 1,347 46,205 47,552 Thereafter 1,409 122,744 124,153 Total $ 10,182 $ 418,874 $ 429,056 Rent expense under non-cancellable operating leases for fiscal years 2015 , 2014 and 2013 was as follows (in thousands): January 30, January 31, February 1, Minimum rentals $ 43,176 $ 40,290 $ 38,009 Contingent rentals 403 832 675 Total rent expense $ 43,579 $ 41,122 $ 38,684 Capital lease We lease our corporate headquarters and distribution center (10 and 12 Whatney, Irvine, California) from a company that is owned by the co-founders of Tillys. The lease expires on December 31, 2017 , with two remaining five -year renewal option periods. The land component of this lease is accounted for as an operating lease (included in the operating lease commitments schedule above) and the building component is accounted for as a capital lease. We incurred rent expense of $0.9 million in each of the fiscal years 2015 , 2014 and 2013 related to the operating (land component) of this lease. The obligation under the capital lease was $1.7 million and $2.5 million as of January 30, 2016 and January 31, 2015 , respectively. The gross amount of the building under the capital lease was $7.8 million as of January 30, 2016 and January 31, 2015 . The accumulated amortization of the building under the capital lease was $6.8 million and $6.3 million as of January 30, 2016 and January 31, 2015 , respectively. Future commitments under the related party capital lease obligation as of January 30, 2016 are as follows (in thousands): Fiscal Year 2016 $ 940 2017 861 Total minimum lease payments 1,801 Less: Amount representing interest 108 Present value of net minimum lease payments 1,693 Less: Current portion 858 Long-term portion $ 835 Prior to signing each of the related party leases above, we received an independent market analysis regarding the property and therefore believe that the terms of each lease are reasonable and not materially different from terms we would have obtained from an unaffiliated third party. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications, Commitments, and Guarantees During the normal course of business, we have made certain indemnifications, commitments, and guarantees under which we may be required to make payments for certain transactions. These indemnifications include those given to various lessors in connection with facility leases for certain claims arising from such facility or lease, and indemnifications to our directors and officers to the maximum extent permitted under the laws of the state of Delaware. The majority of these indemnifications, commitments, and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make, and their duration may be indefinite. We have not recorded any liability for these indemnifications, commitments, and guarantees in the accompanying balance sheets. Purchase Obligations At January 30, 2016 , our future minimum payments under agreements to purchase services primarily for software maintenance aggregated to $1.7 million , payable as follows: $1.0 million in fiscal 2016, $0.5 million in fiscal 2017 and $0.2 million in fiscal 2018. Legal Proceedings From time to time, we may become involved in lawsuits and other claims arising from our ordinary course of business. We have established loss provisions of approximately $0.5 million for matters in which losses are probable and can be reasonably estimated. For some matters, we are currently unable to predict the ultimate outcome, 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. Kirstin 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. 34-2013-139010. 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. The complaint seeks certification of a class, unspecified damages, injunctive relief and attorneys' fees. In June 2013, the Court granted our motion to strike portions of the plaintiffs’ complaint and granted plaintiffs leave to amend. The parties completed class certification discovery and briefing, and a hearing was held on August 13, 2015. On September 17, 2015, the Court issued an order denying plaintiff's motion for class certification. On or around November 30, 2015, plaintiffs filed a notice of appeal of the Court's order denying plaintiffs' motion for class certification. The deadline for plaintiffs to file their opening brief has not yet beet set. 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. The parties attended a mediation proceeding and reached a resolution that will be presented to the Court for approval. 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. The matter is in pre-class certification motion discovery state. We intent to defend this case vigorously. Skylar Ward, on behalf of herself and all others similarly situated, v. Tilly’s, Inc., Superior Court of California, County of Los Angeles, Case No. BC595405. On September 1, 2015, plaintiff filed a putative class action lawsuit against us, alleging violations of California’s wage and hour rules and regulations and unfair competition law. The complaint seeks certification of a class, unspecified damages, unpaid wages, penalties, restitution, and attorneys’ fees. We intend to defend this 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 the event of the vendor's default, the current estimated range of a reasonably possible loss is zero to $1.7 million . If required to perform under this settlement, we would utilize all available rights of offset to reduce our potential loss, including application of amounts owed by us to the vendor from our ongoing purchases of the vendor's merchandise and/or the enforcement of a security interest we have in the vendor's intellectual property. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine fair value based on a three-level valuation hierarchy as described below. Fair value is defined 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 used to determine fair value 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. We did not make any transfers between Level 1 and Level 2 financial assets during fiscal years 2015 , 2014 and 2013 . Furthermore, as of January 30, 2016 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. Financial Assets In accordance with the provisions of ASC 820, we categorized our financial assets based on the priority of the inputs to the valuation technique for the instruments as follows (in thousands): January 30, 2016 January 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market securities $42,626 $— $— $34,433 $— $— Marketable securities: Commercial paper $— $49,932 $— $— $34,957 $— Impairment of Long-Lived Assets An impairment is recorded on a long-lived asset used in operations whenever events or changes in circumstances indicate that the net carrying amounts for such asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant under-performance relative to historical or planned operating results, significant changes in the manner of use of the assets or significant changes in our business strategies. An evaluation is performed using estimated undiscounted future cash flows from operating activities compared to the carrying value of related assets for the individual stores. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized for the difference between the carrying value and the estimated fair value of the assets based on the discounted cash flows of the assets using a rate that approximates our weighted average cost of capital. With regard to retail store assets, which are comprised of leasehold improvements, fixtures and computer hardware and software, we consider the assets at each individual retail store to represent an asset group. In addition, we have considered the relevant valuation techniques that could be applied without undue cost and effort and have determined that the discounted estimated future cash flow approach provides the most relevant and reliable means by which to determine fair value in this circumstance. On a quarterly basis, we assess whether events or changes in circumstances have occurred that potentially indicate the carrying value of long-lived assets may not be recoverable. Based on Level 3 inputs of historical operating performance, including sales trends, gross margin rates, current cash flows from operations and the projected outlook for each of our stores, we determined that nine , two and four stores, respectively, in fiscal years 2015, 2014 and 2013, would not be able to generate sufficient cash flows over the remaining term of the related leases to recover our investment in the respective stores. As a result, we recorded non-cash impairment charges of approximately $2.6 million , $1.0 million and $1.8 million in fiscal years 2015 , 2014 and 2013 , respectively, to write-down the carrying value of certain long-lived store assets to their estimated fair values. Fiscal Year Ended January 30, January 31, February 1, ($ in thousands) Carrying value of assets with impairment $3,589 $1,007 $1,840 Fair value of assets impaired $996 $— $— Number of stores tested for impairment 20 15 11 Number of stores with impairment 9 2 4 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Tillys 2012 Amended and Restated Equity and Incentive Award Plan, as amended in June 2014 (the "2012 Plan"), authorizes up to 4,413,900 shares for issuance of options, shares or rights to acquire our Class A common stock and allows for, among other things, operating income and comparable store sales growth targets as additional performance goals that may be used in connection with performance-based awards granted under the 2012 Plan. As of January 30, 2016 , there were 2,355,613 shares still available for future issuance under the 2012 Plan. Options We grant stock options to certain employees that gives them the right to acquire our Class A common stock under the 2012 Plan. The exercise price of options granted is equal to the closing price per share of our stock at the date of grant. The nonqualified options vest at a rate of 25% on each of the first four anniversaries of the grant date provided that the award recipient continues to be employed by us through each of those vesting dates, and expire ten years from the date of grant. The following table summarizes our stock option activity for fiscal year 2015 : Stock Grant Date Weighted Aggregate (in years) ($ in thousands) Outstanding at January 31, 2015 2,880,040 $13.03 Granted 585,000 $6.91 Exercised (336,140) $9.21 Forfeited (381,000) $12.97 Expired (936,575) $14.69 Outstanding at January 30, 2016 1,811,325 $10.93 7.5 $218 Vested and expected to vest at January 30, 2016 1,723,520 $11.06 7.4 $194 Exercisable at January 30, 2016 693,450 $12.87 5.5 $2 (1) Intrinsic value for stock options is defined as the difference between the market price of the our Class A common stock on the last business day of the fiscal year 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 $6.49 at January 30, 2016 . The total intrinsic value of options exercised in fiscal years 2015 , 2014 and 2013 was $1.7 million , $0.1 million and $1.6 million , respectively. The total fair value of options vested in fiscal years 2015 , 2014 and 2013 was $4.6 million , $3.5 million and $3.0 million , respectively. The total proceeds received from the exercise of stock options in fiscal years 2015 , 2014 and 2013 was $3.1 million , $0.3 million and $2.4 million , respectively. The tax benefit realized from stock options exercised in fiscal years 2015 , 2014 and 2013 was $0.7 million , $0.1 million and $0.7 million , respectively. 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. We estimate forfeitures based on an analysis of 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 values of stock options granted in fiscal years 2015 , 2014 and 2013 were estimated on the grant dates using the following assumptions: Fiscal Year Ended January 30, January 31, February 1, Average fair value per option granted $3.06 $5.19 $6.31 Expected option term(1) 5.0 years 5.0 years 5.0 years Expected volatility factor(2) 49.68% 46.84% 56.19% Risk-free interest rate(3) 1.64% 1.76% 0.842% Expected annual dividend yield —% —% —% (1) We have limited historical information regarding expected option term. Accordingly, we determine the expected option term of the awards using the latest 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 Restricted stock awards ("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, whereas restricted stock units represent shares issuable in the future upon vesting. Under the 2012 Plan, we grant RSAs to independent members of our Board of Directors and restricted stock units to certain employees. RSAs granted to Board members vest 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 our Board of Directors through each of those vesting dates. The restricted stock units granted to certain employees vest 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. We determine the fair value of restricted stock underlying the RSAs and restricted stock units 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 January 30, 2016 and changes during fiscal year 2015 are presented below: Shares Weighted- Nonvested at January 31, 2015 48,584 $9.88 Granted 335,740 $15.15 Vested (41,736) $12.48 Forfeited (118,000) $16.07 Nonvested at January 30, 2016 224,588 $14.02 The weighted-average grant-date fair value of restricted stock granted during the years ended January 31, 2015 and February 1, 2014 was $8.27 and $16.18 , respectively. The total fair value of restricted stock vested was $0.4 million , $0.2 million and $0.2 million in fiscal years 2015 , 2014 and 2013 , respectively. We recorded a total of $3.9 million , $3.5 million and $3.1 million of share-based compensation expense in fiscal years 2015 , 2014 and 2013 , respectively. At January 30, 2016 , there was $5.7 million of total unrecognized share-based compensation expense related to unvested stock options and restricted stock awards. This cost has a weighted average remaining recognition period of 2.7 years. The following table summarizes share-based compensation recorded in the Consolidated Statements of Income: Fiscal Year Ended January 30, January 31, February 1, Cost of goods sold $991 $750 $694 Selling, general and administrative expenses 2,935 2,749 2,412 Stock-based compensation $3,926 $3,499 $3,106 |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Savings Plan | Retirement Savings Plan The Tillys 401(k) Plan (the “401(k) Plan”) is a qualified plan under Section 401(k) of the Internal Revenue Code. The 401(k) Plan covers all employees that have attained age 21 and completed at least three months of employment tenure. Matching contributions to the 401(k) Plan by the Company are made at the discretion of our Board of Directors. Total employer contributions to the 401(k) Plan totaled $0.7 million , $0.7 million and $0.6 million in fiscal years 2015 , 2014 and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for fiscal years 2015 , 2014 and 2013 were as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, Current: Federal $ 7,614 $ 6,433 $ 9,591 State 1,439 1,517 2,304 9,053 7,950 11,895 Deferred: Federal 1,105 1,387 (293 ) State 449 (237 ) (11 ) 1,554 1,150 (304 ) Total income tax expense $ 10,607 $ 9,100 $ 11,591 A reconciliation of income tax expense to the amount computed at the federal statutory rate for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, Federal taxes at statutory rate $ 6,352 $ 8,111 $ 10,405 State and local income taxes, net of federal benefit 1,098 885 1,517 Return to provision adjustments 130 (15 ) (369 ) Stock compensation discrete items (1) 2,592 — — Other 435 119 38 Total income tax expense $ 10,607 $ 9,100 $ 11,591 (1) This amount includes the impact of discrete items related to the expiration of stock options, exercises of stock options and the settlement of restricted stock units that are recorded to income tax expense which represents stock-based compensation cost previously recognized by us that was greater than the deduction allowed for income tax purposes based on the price of our common stock on the date of expiration, exercise or vesting. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss and tax credit carry-forwards. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. Significant components of deferred tax assets and liabilities as of January 30, 2016 and January 31, 2015 were as follows (in thousands): January 30, January 31, Deferred tax assets: Deferred rent $ 5,165 $ 5,134 Stock-based compensation 3,061 5,127 Accrued expenses 1,366 1,262 Inventories 2,307 2,206 Compensation and benefits 676 630 Capital lease 274 388 Deferred revenue 247 227 Tax credits 161 119 Total deferred tax assets 13,257 15,093 Deferred tax liabilities: Property and equipment (8,030 ) (8,279 ) Prepaid expenses (684 ) (717 ) Marketable securities (15 ) (14 ) Total deferred tax liabilities (8,729 ) (9,010 ) Net deferred tax asset $ 4,528 $ 6,083 Included in “Prepaid expenses and other current assets” in the Consolidated Balance Sheets are $3.9 million at January 30, 2016 and $3.6 million at January 31, 2015 of current deferred tax assets and included in “Other assets” in the Consolidated Balance Sheets are noncurrent deferred tax assets of $0.6 million at January 30, 2016 and $2.5 million at January 31, 2015 . As of January 30, 2016 and January 31, 2015 , we had approximately $0.2 million of California Enterprise Zone credit carryovers. These credits will begin to expire during fiscal year 2022 if not utilized. Uncertain Tax Positions As of January 30, 2016 and January 31, 2015 , there were no material unrecognized tax benefits. We do not anticipate that there will be a material change in the balance of the unrecognized tax benefits in the next 12 months. Any interest and penalties related to uncertain tax positions are recorded in income tax expense. We did not recognize any interest or penalties related to unrecognized tax benefits during fiscal years 2015 , 2014 and 2013 . In the third quarter of fiscal year 2014, the Internal Revenue Service initiated an examination of our federal income tax returns for the C-Corporation short period year ended February 2, 2013. The examination was settled in the second quarter of fiscal 2015 without a material impact to the Company. 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. The examination was settled in the second quarter of fiscal 2015 without a material impact to the Company. In the fourth quarter of fiscal year 2015, the Internal Revenue Service initiated an examination of our federal income tax return for the year ended January 31, 2015. We file income tax returns in the United States federal jurisdiction and in various state and local jurisdictions. In the normal course of business, we are subject to examination by taxing authorities. Fiscal years 2012 through 2014 remain subject to examination for federal tax purposes and fiscal years 2011 through 2014 remain subject to examination in significant state tax jurisdictions. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our common stock consists of two classes: Class A and Class B. The Class A and Class B common stock have identical rights, except with respect to voting and conversion. 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. Potentially dilutive shares of common stock 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): The components of basic and diluted earnings per share of Class A and Class B common stock, in aggregate, for fiscal years 2015 , 2014 and 2013 are as follows (in thousands, except per share amounts): Fiscal Year Ended January 30, January 31, February 1, Net income $ 7,541 $ 14,075 $ 18,137 Weighted average basic shares outstanding 28,332 28,013 27,822 Dilutive effect of stock options and restricted stock 70 65 294 Weighted average shares for diluted earnings per share 28,402 28,078 28,116 Basic earnings per share of Class A and Class B common stock $ 0.27 $ 0.50 $ 0.65 Diluted earnings per share of Class A and Class B common stock $ 0.27 $ 0.50 $ 0.65 The earnings per share amounts are the same for Class A and Class B common stock, in aggregate, and individually for Class A and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. Shares of Class A and Class B common stock vote together as a single class on all matters submitted to a vote of stockholders. Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to 10 votes per share. Total stock options and restricted stock of 1,273,000 , 2,364,000 and 1,766,000 as of January 30, 2016 , January 31, 2015 and February 1, 2014 , respectively, have been excluded from the calculation of diluted earnings per share as the effect of including these stock options and restricted stock would have been anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain Leases As discussed in “Note 9: Leases”, we lease certain facilities from companies that are owned by the co-founders of Tillys. Tax Indemnification Agreements 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 which provides underprivileged youth a healthy and caring environment. The Company’s co-founder is also the founder and President of TLC. In fiscal years 2015 and 2014 , our Board of Directors approved support for TLC of up to $50,000 and $20,000 , respectively. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The tables below set forth unaudited selected quarterly financial data for each of the last two fiscal years (in thousands, except per share data). Each of the quarters presented was thirteen weeks in duration. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. Fiscal Year Ended January 30, 2016 First Second Third Fourth (unaudited) (unaudited) (unaudited) (unaudited) Net sales $120,190 $130,023 $141,692 $159,086 Gross profit 36,052 36,596 44,641 49,957 Operating income 2,129 1,104 5,387 9,476 Net income 1,282 560 2,814 2,885 Basic earnings per share $0.05 $0.02 $0.10 $0.10 Diluted earnings per share $0.05 $0.02 $0.10 $0.10 Fiscal Year Ended January 31, 2015 First Second Third Fourth (unaudited) (unaudited) (unaudited) (unaudited) Net sales $111,134 $123,060 $131,283 $152,817 Gross profit 31,327 34,655 40,548 49,002 Operating income 1,077 2,329 8,577 11,206 Net income 591 1,266 5,113 7,105 Basic earnings per share $0.02 $0.05 $0.18 $0.25 Diluted earnings per share $0.02 $0.05 $0.18 $0.25 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term investments with an initial maturity of 90 days or less when purchased to be cash equivalents. |
Marketable Securities | Marketable Securities Marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of income taxes, reflected as a separate component of stockholders’ equity until realized. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. We classify all marketable securities within current assets on our consolidated balance sheet, including those with maturity dates beyond twelve months, as they are available to support our current operational liquidity needs. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories are comprised of finished goods offered for sale at our retail stores and online. Inventories are stated at the lower of cost or market using the retail inventory method. An initial markup is applied to inventory at cost in order to establish a cost-to-retail ratio. We believe that the retail inventory method approximates cost. Shipping and handling costs for merchandise shipped to customers of $6.7 million , $6.7 million and $6.6 million in fiscal years 2015 , 2014 and 2013 , respectively, are included in cost of goods sold in the Consolidated Statements of Income. We review our inventory levels to identify slow-moving merchandise and generally use markdowns to clear this merchandise. At any given time, merchandise inventories include items that have been marked down to management’s best estimate of their fair market value at retail price, with a proportionate write-down to the cost of the inventory. Our management bases the decision to mark down merchandise primarily upon its current sell-through rate and the age of the item, among other factors. These markdowns may have an adverse impact on earnings, depending on the extent and amount of inventory affected. Markdowns are recorded as an increase to cost of goods sold in the consolidated statements of income. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Equipment is depreciated over five to seven years. Furniture and fixtures are depreciated over five years. Computer software is depreciated over three years. Leasehold improvements and the cost of acquiring leasehold rights are amortized over the lesser of the term of the lease or the estimated useful life of the improvement. The cost of assets sold or retired and the related accumulated depreciation is removed from the accounts with any resulting gain or loss included in net income. Repairs and maintenance costs are charged directly to expense as incurred. Major renewals, replacements and improvements that substantially extend the useful life of an asset are capitalized and depreciated. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Impairments are recorded on long-lived assets used in operations whenever events or changes in circumstances indicate that the net carrying amounts may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant underperformance relative to historical or planned operating results, significant changes in the manner of use of the assets or significant changes in business strategies. At least quarterly, an evaluation is performed using estimated undiscounted future cash flows from operating activities compared to the carrying value of related assets for the individual stores. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized for the difference between the carrying value and the estimated fair value of the assets based on the discounted cash flows of the assets using a rate that approximates the weighted average cost of capital. With regard to retail store assets, which are comprised of leasehold improvements, fixtures and computer hardware and software, we consider the assets at each individual retail store to represent an asset group. In addition, we have considered the relevant valuation techniques that could be applied without undue cost and effort and have determined that the discounted estimated future cash flow approach provides the most relevant and reliable means by which to determine fair value in this circumstance. |
Operating Leases | Operating Leases We lease our retail stores under non-cancellable operating leases. Most store leases include tenant allowances from landlords, rent escalation clauses and/or contingent rent provisions. We recognize rent expense on a straight-line basis over the lease term, excluding contingent rent, and record the difference between the amount charged to expense and the rent paid as a deferred rent liability. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when the achievement of the specified sales that triggers the contingent rent is probable. |
Deferred Rent and Tenant Allowances | Deferred Rent and Tenant Allowances Deferred rent is recognized when a lease contains fixed rent escalations. We recognize the related rent expense on a straight-line basis starting from the date of possession and record the difference between the recognized rental expense and cash rent payable as deferred rent. Deferred rent also includes tenant allowances received from landlords in accordance with negotiated lease terms. The tenant allowances are amortized as a reduction to rent expense on a straight-line basis over the term of the lease starting at the date of possession. |
Revenue Recognition | Revenue Recognition Revenue is recognized for store sales when the customer receives and pays for the merchandise at the register. Taxes collected from our customers are recorded on a net basis. For e-commerce sales, we recognize revenue, net of sales taxes and estimated sales returns, and the related cost of goods sold at the time the merchandise is received by the customer. We defer e-commerce revenue and the associated product and shipping costs for shipments that are in-transit to the customer. Customers typically receive goods within four days of shipment. Amounts related to shipping and handling that are billed to customers are reflected in net sales, and the related costs are reflected in cost of goods sold in the Consolidated Statements of Income. For fiscal years 2015 , 2014 and 2013 , shipping and handling fee revenue included in net sales was $2.7 million , $2.6 million , $3.3 million , respectively. We accrue for estimated sales returns by customers based on historical sales return results. Sales return accrual activity for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal Year Ended January 30, 2016 January 31, February 1, Beginning balance $ 648 $ 573 $ 703 Provisions 20,835 16,875 15,938 Usage (20,477 ) (16,800 ) (16,068 ) Ending balance $ 1,006 $ 648 $ 573 We recognize revenue from gift cards as they are redeemed for merchandise. Prior to redemption, we maintain a current liability for unredeemed gift card balances. The customer liability balance was $8.2 million and $7.1 million as of January 30, 2016 and January 31, 2015 , respectively, and is included in deferred revenue on the balance sheets. Our gift cards do not have expiration dates; however, over time, the redemption of some gift cards becomes remote and in most cases there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card “breakage”). An assessment of the ultimate non-redemption rate of gift cards is performed when enough time has passed since the activation of the cards to enable a determination of the ultimate breakage rate based upon historical redemption experience. This date of assessment has historically been two full fiscal years after the fiscal year the cards were activated. At the time of assessment a breakage estimate is calculated and recorded in net sales. |
Cost of Goods Sold | Cost of Goods Sold • Costs of products sold, include: • freight expenses associated with moving merchandise inventories from our vendors to our distribution center; • vendor allowances; • cash discounts on payments to merchandise vendors; • physical inventory losses; and • markdowns of inventory. • Buying, distribution and occupancy costs, include: • payroll and benefit costs and incentive compensation for merchandise purchasing personnel; • customer shipping and handling expenses; • costs associated with operating our distribution and fulfillment center, including payroll and benefit costs for our distribution center, occupancy costs, and depreciation; • freight expenses associated with moving merchandise inventories from our distribution center to our stores and e-commerce customers; and • store occupancy costs including rent, maintenance, utilities, property taxes, business licenses, security costs and depreciation. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses • Payroll, benefit costs and incentive compensation for store, regional, e-commerce and corporate employees; • Occupancy and maintenance costs of corporate office facilities; • Depreciation related to corporate office assets; • Advertising and marketing costs, net of reimbursement from vendors; • Tender costs, including costs associated with credit and debit card interchange fees; • Long-lived asset impairment charges; • Other administrative costs such as supplies, consulting, audit and tax preparation fees, travel and lodging; and • Charitable contributions. |
Store Pre-opening Costs | Store Pre-opening Costs Store pre-opening costs consist primarily of occupancy costs, which are included in cost of goods sold, and payroll expenses, which are included in selling, general and administrative expenses, in the Consolidated Statements of Income. |
Advertising | Advertising We expense advertising costs as incurred, except for direct-mail advertising expenses which are recognized at the time of mailing. Advertising costs include such things as production and distribution of print and digital catalogs; print, online and mobile advertising costs; radio advertisements; and grand openings and other events. |
Share-Based Compensation | Share-Based Compensation We apply the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation-Stock Compensation (“ASC 718”), for accounting for equity instruments exchanged for employee services. Under the provisions of this statement, share-based compensation expense is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense on a straight-line basis over the employee’s requisite service period (generally the vesting period of the equity grant). As required under this guidance, we estimate forfeitures for options granted which are not expected to vest. Changes in these inputs and assumptions can materially affect the measurement of the estimated fair value of share-based compensation expense. |
Income Taxes | Income Taxes We account for income taxes and the related accounts using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”). Under this method, we accrue income taxes payable or refundable and recognize deferred tax assets and liabilities based on differences between GAAP and tax bases of assets and liabilities. We measure deferred tax assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse, and recognize the effect of a change in enacted rates in the period of enactment. We establish assets and liabilities for uncertain positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. We include in income tax expense any interest and penalties related to uncertain tax positions. |
Earnings per Share | Earnings per Share Basic earnings per share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents. At January 30, 2016 and January 31, 2015 , and at various times throughout these years, we had cash in financial institutions in excess of the $250,000 amount insured by the Federal Deposit Insurance Corporation. We typically invest our cash in highly rated, short-term commercial paper or in interest-bearing money market funds. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 outlines principles that govern revenue recognition at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09, which will become effective for us in the first quarter of fiscal 2018, may be applied retrospectively for each period presented or retrospectively with the cumulative effect recognized in the opening retained earnings balance in fiscal year 2018. We are in the process of evaluating the impact of adopting the new standard on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 Balance Sheet Classification of Deferred Tax Assets, which simplifies the presentation of deferred tax liabilities and assets requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for us in the first quarter of fiscal 2017, with early adoption permitted. The new standard is expected to impact the presentation of deferred tax assets as noncurrent in our consolidated balance sheets. In February 2016, the FASB issued ASU, No. 2016-02, Leases (ASC 842). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for us in the first quarter of fiscal 2019, with early adoption permitted. The new standard is expected to impact our consolidated financial statements as we conduct all of our retail sales and corporate operations in leased facilities. We are in the process of evaluating the impact of adopting the new standard on our consolidated financial statements. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Sales Return Accrual Activity | Sales return accrual activity for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal Year Ended January 30, 2016 January 31, February 1, Beginning balance $ 648 $ 573 $ 703 Provisions 20,835 16,875 15,938 Usage (20,477 ) (16,800 ) (16,068 ) Ending balance $ 1,006 $ 648 $ 573 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Securities | The following table summarizes investments in marketable securities at January 30, 2016 and January 31, 2015 (in thousands): Cost Gross Unrealized Holding Gains Fair Value Commercial paper at January 30, 2016 $49,894 $38 $49,932 Commercial paper at January 31, 2015 $34,922 $35 $34,957 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Receivables [Abstract] | |
Components of Receivables | At January 30, 2016 and January 31, 2015 , receivables consisted of the following (in thousands): January 30, January 31, Credit and debit card receivables $ 2,698 $ 2,685 Tenant allowances due from landlords 1,749 1,789 Other 950 208 Total receivables $ 5,397 $ 4,682 |
Prepaid Expenses and Other Cu29
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Prepaid Expenses and Other Current Assets | At January 30, 2016 and January 31, 2015 , prepaid expenses and other current assets consisted of the following (in thousands): January 30, January 31, Prepaid rent $ 7,022 $ 6,596 Deferred taxes 3,897 3,594 Prepaid insurance 776 704 Prepaid maintenance 646 753 Prepaid marketing 305 411 Other 322 291 Total prepaid expenses and other current assets $ 12,968 $ 12,349 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At January 30, 2016 and January 31, 2015 , property and equipment consisted of the following (in thousands): January 30, January 31, Leasehold improvements $ 131,414 $ 124,029 Furniture and fixtures 40,723 37,657 Machinery and equipment 30,163 28,771 Building under capital lease 7,840 7,840 Computer hardware and software 27,415 24,583 Construction in progress 2,940 2,454 Vehicles 1,709 1,470 242,204 226,804 Accumulated depreciation (143,178 ) (125,469 ) Property and equipment, net $ 99,026 $ 101,335 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | At January 30, 2016 and January 31, 2015 , accrued expenses consisted of the following (in thousands): January 30, January 31, Sales and use taxes payable $ 6,305 $ 1,611 Income taxes payable 2,218 600 Accrued construction 1,600 1,202 Merchandise returns 1,006 648 Minimum rent and common area maintenance 581 927 Other 7,191 7,337 Total accrued expenses $ 18,901 $ 12,325 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Future Minimum Operating Rental Commitments | Future minimum rental commitments, by year and in the aggregate, under non-cancellable operating leases, including fixed common area maintenance charges, if any, for the above buildings at 11 Whatney and 17 Pasteur and all of our store locations as of January 30, 2016 are as follows (in thousands): Fiscal Year Related Other Total 2016 $ 2,267 $ 67,901 $ 70,168 2017 2,226 64,723 66,949 2018 1,503 63,961 65,464 2019 1,430 53,340 54,770 2020 1,347 46,205 47,552 Thereafter 1,409 122,744 124,153 Total $ 10,182 $ 418,874 $ 429,056 |
Rent Expense Under Operating Leases | Rent expense under non-cancellable operating leases for fiscal years 2015 , 2014 and 2013 was as follows (in thousands): January 30, January 31, February 1, Minimum rentals $ 43,176 $ 40,290 $ 38,009 Contingent rentals 403 832 675 Total rent expense $ 43,579 $ 41,122 $ 38,684 |
Future Commitments Under the Company's Related Party Capital Lease Obligation | Future commitments under the related party capital lease obligation as of January 30, 2016 are as follows (in thousands): Fiscal Year 2016 $ 940 2017 861 Total minimum lease payments 1,801 Less: Amount representing interest 108 Present value of net minimum lease payments 1,693 Less: Current portion 858 Long-term portion $ 835 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Categorized Based on Priority of Inputs to Valuation Technique Instruments | In accordance with the provisions of ASC 820, we categorized our financial assets based on the priority of the inputs to the valuation technique for the instruments as follows (in thousands): January 30, 2016 January 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market securities $42,626 $— $— $34,433 $— $— Marketable securities: Commercial paper $— $49,932 $— $— $34,957 $— |
Details of Impairment of Long-Lived Assets | As a result, we recorded non-cash impairment charges of approximately $2.6 million , $1.0 million and $1.8 million in fiscal years 2015 , 2014 and 2013 , respectively, to write-down the carrying value of certain long-lived store assets to their estimated fair values. Fiscal Year Ended January 30, January 31, February 1, ($ in thousands) Carrying value of assets with impairment $3,589 $1,007 $1,840 Fair value of assets impaired $996 $— $— Number of stores tested for impairment 20 15 11 Number of stores with impairment 9 2 4 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity Under Stock Option Plan | The following table summarizes our stock option activity for fiscal year 2015 : Stock Grant Date Weighted Aggregate (in years) ($ in thousands) Outstanding at January 31, 2015 2,880,040 $13.03 Granted 585,000 $6.91 Exercised (336,140) $9.21 Forfeited (381,000) $12.97 Expired (936,575) $14.69 Outstanding at January 30, 2016 1,811,325 $10.93 7.5 $218 Vested and expected to vest at January 30, 2016 1,723,520 $11.06 7.4 $194 Exercisable at January 30, 2016 693,450 $12.87 5.5 $2 (1) Intrinsic value for stock options is defined as the difference between the market price of the our Class A common stock on the last business day of the fiscal year 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 $6.49 at January 30, 2016 . |
Assumptions Used to Estimate Fair Value of Stock Options Granted | The fair values of stock options granted in fiscal years 2015 , 2014 and 2013 were estimated on the grant dates using the following assumptions: Fiscal Year Ended January 30, January 31, February 1, Average fair value per option granted $3.06 $5.19 $6.31 Expected option term(1) 5.0 years 5.0 years 5.0 years Expected volatility factor(2) 49.68% 46.84% 56.19% Risk-free interest rate(3) 1.64% 1.76% 0.842% Expected annual dividend yield —% —% —% (1) We have limited historical information regarding expected option term. Accordingly, we determine the expected option term of the awards using the latest 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 January 30, 2016 and changes during fiscal year 2015 are presented below: Shares Weighted- Nonvested at January 31, 2015 48,584 $9.88 Granted 335,740 $15.15 Vested (41,736) $12.48 Forfeited (118,000) $16.07 Nonvested at January 30, 2016 224,588 $14.02 |
Schedule of Stock Based Compensation | The following table summarizes share-based compensation recorded in the Consolidated Statements of Income: Fiscal Year Ended January 30, January 31, February 1, Cost of goods sold $991 $750 $694 Selling, general and administrative expenses 2,935 2,749 2,412 Stock-based compensation $3,926 $3,499 $3,106 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense for fiscal years 2015 , 2014 and 2013 were as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, Current: Federal $ 7,614 $ 6,433 $ 9,591 State 1,439 1,517 2,304 9,053 7,950 11,895 Deferred: Federal 1,105 1,387 (293 ) State 449 (237 ) (11 ) 1,554 1,150 (304 ) Total income tax expense $ 10,607 $ 9,100 $ 11,591 |
Reconciliation of Income Tax Expense to Amount Computed At Federal Statutory Rate | A reconciliation of income tax expense to the amount computed at the federal statutory rate for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, Federal taxes at statutory rate $ 6,352 $ 8,111 $ 10,405 State and local income taxes, net of federal benefit 1,098 885 1,517 Return to provision adjustments 130 (15 ) (369 ) Stock compensation discrete items (1) 2,592 — — Other 435 119 38 Total income tax expense $ 10,607 $ 9,100 $ 11,591 (1) This amount includes the impact of discrete items related to the expiration of stock options, exercises of stock options and the settlement of restricted stock units that are recorded to income tax expense which represents stock-based compensation cost previously recognized by us that was greater than the deduction allowed for income tax purposes based on the price of our common stock on the date of expiration, exercise or vesting. |
Significant Components of Deferred Tax Assets and Liabilities | operations. Significant components of deferred tax assets and liabilities as of January 30, 2016 and January 31, 2015 were as follows (in thousands): January 30, January 31, Deferred tax assets: Deferred rent $ 5,165 $ 5,134 Stock-based compensation 3,061 5,127 Accrued expenses 1,366 1,262 Inventories 2,307 2,206 Compensation and benefits 676 630 Capital lease 274 388 Deferred revenue 247 227 Tax credits 161 119 Total deferred tax assets 13,257 15,093 Deferred tax liabilities: Property and equipment (8,030 ) (8,279 ) Prepaid expenses (684 ) (717 ) Marketable securities (15 ) (14 ) Total deferred tax liabilities (8,729 ) (9,010 ) Net deferred tax asset $ 4,528 $ 6,083 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share of Class A and Class B common stock, in aggregate, for fiscal years 2015 , 2014 and 2013 are as follows (in thousands, except per share amounts): Fiscal Year Ended January 30, January 31, February 1, Net income $ 7,541 $ 14,075 $ 18,137 Weighted average basic shares outstanding 28,332 28,013 27,822 Dilutive effect of stock options and restricted stock 70 65 294 Weighted average shares for diluted earnings per share 28,402 28,078 28,116 Basic earnings per share of Class A and Class B common stock $ 0.27 $ 0.50 $ 0.65 Diluted earnings per share of Class A and Class B common stock $ 0.27 $ 0.50 $ 0.65 |
Quarterly Financial Informati37
Quarterly Financial Information (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | The tables below set forth unaudited selected quarterly financial data for each of the last two fiscal years (in thousands, except per share data). Each of the quarters presented was thirteen weeks in duration. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. Fiscal Year Ended January 30, 2016 First Second Third Fourth (unaudited) (unaudited) (unaudited) (unaudited) Net sales $120,190 $130,023 $141,692 $159,086 Gross profit 36,052 36,596 44,641 49,957 Operating income 2,129 1,104 5,387 9,476 Net income 1,282 560 2,814 2,885 Basic earnings per share $0.05 $0.02 $0.10 $0.10 Diluted earnings per share $0.05 $0.02 $0.10 $0.10 Fiscal Year Ended January 31, 2015 First Second Third Fourth (unaudited) (unaudited) (unaudited) (unaudited) Net sales $111,134 $123,060 $131,283 $152,817 Gross profit 31,327 34,655 40,548 49,002 Operating income 1,077 2,329 8,577 11,206 Net income 591 1,266 5,113 7,105 Basic earnings per share $0.02 $0.05 $0.18 $0.25 Diluted earnings per share $0.02 $0.05 $0.18 $0.25 |
Description of Company and Basi
Description of Company and Basis of Presentation - Additional Information (Details) | 12 Months Ended |
Jan. 30, 2016segmentstoreState | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | store | 224 |
Number of states in which entity operates | State | 32 |
Number of reportable segments | segment | 1 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Accounting Policies [Line Items] | |||
Shipping and handling cost | $ 6,700,000 | $ 6,700,000 | $ 6,600,000 |
Inventory markdowns | 41,500,000 | 37,000,000 | 35,700,000 |
Reserve for unexecuted markdowns | 600,000 | 900,000 | |
Shipping and handling fee revenue | 2,700,000 | 2,600,000 | 3,300,000 |
Liability for unredeemed gift cards | $ 8,200,000 | 7,100,000 | |
Period for breakage assessment (in years) | 2 years | ||
Breakage revenue for gift cards | $ 800,000 | 800,000 | 600,000 |
Advertising expense | $ 19,700,000 | $ 15,700,000 | $ 14,100,000 |
Incremental common shares used in calculating diluted EPS (in shares) | 70 | 65 | 294 |
FDIC insured amount | $ 250,000 | $ 250,000 | |
Deferred income taxes | $ 1,554,000 | 1,150,000 | $ (304,000) |
Furniture and Fixtures | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of the assets (in years) | 5 years | ||
Computer Software | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of the assets (in years) | 3 years | ||
Maximum | Equipment | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of the assets (in years) | 7 years | ||
Maximum | Cash and Cash Equivalents | |||
Accounting Policies [Line Items] | |||
Short term investment maturity period (in days) | 90 days | ||
Minimum | Equipment | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of the assets (in years) | 5 years | ||
Restatement Adjustment | |||
Accounting Policies [Line Items] | |||
Deferred income taxes | $ 1,200,000 | $ (300,000) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Sales Return Accrual Activity (Details) - Sales Returns Accrual - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Revenue Recognition [Line Items] | |||
Beginning balance | $ 648 | $ 573 | $ 703 |
Provisions | 20,835 | 16,875 | 15,938 |
Usage | (20,477) | (16,800) | (16,068) |
Ending balance | $ 1,006 | $ 648 | $ 573 |
Marketable Securities - Investm
Marketable Securities - Investments in Marketable Securities (Details) - Commercial Paper - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Financial Instruments And Marketable Securities [Line Items] | ||
Cost | $ 49,894 | $ 34,922 |
Gross Unrealized Holding Gains | 38 | 35 |
Fair Value | $ 49,932 | $ 34,957 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gains on sales and maturities of marketable securities | $ 100 | $ 116 | $ 176 |
Receivables - Components of Rec
Receivables - Components of Receivables (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Receivables [Abstract] | ||
Credit and debit card receivables | $ 2,698 | $ 2,685 |
Tenant allowances due from landlords | 1,749 | 1,789 |
Other | 950 | 208 |
Total receivables | $ 5,397 | $ 4,682 |
Prepaid Expenses and Other Cu44
Prepaid Expenses and Other Current Assets - Components of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid rent | $ 7,022 | $ 6,596 |
Deferred taxes | 3,897 | 3,594 |
Prepaid insurance | 776 | 704 |
Prepaid maintenance | 646 | 753 |
Prepaid marketing | 305 | 411 |
Other | 322 | 291 |
Total prepaid expenses and other current assets | $ 12,968 | $ 12,349 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 131,414 | $ 124,029 |
Furniture and fixtures | 40,723 | 37,657 |
Machinery and equipment | 30,163 | 28,771 |
Building under capital lease | 7,840 | 7,840 |
Computer hardware and software | 27,415 | 24,583 |
Construction in progress | 2,940 | 2,454 |
Vehicles | 1,709 | 1,470 |
Property and equipment, gross | 242,204 | 226,804 |
Accumulated depreciation | (143,178) | (125,469) |
Property and equipment, net | $ 99,026 | $ 101,335 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Property, Plant, and Equipment Disclosure [Line Items] | |||
Depreciation expense | $ 22.8 | $ 21.2 | $ 19.4 |
Capital expenditures | 23.4 | 22.8 | 42.2 |
Selling, General and Administrative Expenses | |||
Property, Plant, and Equipment Disclosure [Line Items] | |||
Impairment of assets | $ 2.6 | $ 1 | $ 1.8 |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Payables and Accruals [Abstract] | ||
Sales and use taxes payable | $ 6,305 | $ 1,611 |
Income taxes payable | 2,218 | 600 |
Accrued construction | 1,600 | 1,202 |
Merchandise returns | 1,006 | 648 |
Minimum rent and common area maintenance | 581 | 927 |
Other | 7,191 | 7,337 |
Total accrued expenses | $ 18,901 | $ 12,325 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||
Letters of credit facility maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | |||||||||
Net loss after taxes, maximum | 2,885,000 | $ 2,814,000 | $ 560,000 | $ 1,282,000 | $ 7,105,000 | $ 5,113,000 | $ 1,266,000 | $ 591,000 | 7,541,000 | $ 14,075,000 | $ 18,137,000 |
Outstanding borrowing | 0 | 0 | |||||||||
Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Net loss after taxes, maximum | (5,000,000) | ||||||||||
Impairment of goodwill & other intangible assets (up to) | $ 2,000,000 | ||||||||||
Balance sheet leverage | 2 | ||||||||||
London Interbank Offered Rate (LIBOR) | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit, percentage point added to reference rate (percent) | 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 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016USD ($)renewal | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Operating Leased Assets [Line Items] | |||
Lease terms (in years) | 10 years | ||
Gross amount of building under capital lease | $ 7,840 | $ 7,840 | |
Office and warehouse space | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $ 400 | 300 | $ 300 |
Lease expiration date | Jun. 30, 2022 | ||
Office and warehouse space | Minimum | |||
Operating Leased Assets [Line Items] | |||
Annual lease adjustment rate (percent) | 3.00% | ||
Office and warehouse space | Maximum | |||
Operating Leased Assets [Line Items] | |||
Annual lease adjustment rate (percent) | 7.00% | ||
Building | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $ 900 | 900 | 900 |
Lease expiration date | Oct. 31, 2021 | ||
Building | Minimum | |||
Operating Leased Assets [Line Items] | |||
Annual lease adjustment rate (percent) | 3.00% | ||
Building | Maximum | |||
Operating Leased Assets [Line Items] | |||
Annual lease adjustment rate (percent) | 7.00% | ||
Warehouse space lease | |||
Operating Leased Assets [Line Items] | |||
Rent expense | 100 | 200 | |
Lease expiration date | Oct. 31, 2014 | ||
Warehouse space lease | Sublease | |||
Operating Leased Assets [Line Items] | |||
Sublease income | 100 | 100 | |
Corporate headquarters and distribution center | |||
Operating Leased Assets [Line Items] | |||
Lease expiration date | Dec. 31, 2017 | ||
Number of capital lease renewals | renewal | 2 | ||
Capital leases renewal term (in years) | 5 years | ||
Capital lease obligation outstanding | $ 1,700 | 2,500 | |
Gross amount of building under capital lease | 7,800 | 7,800 | |
Accumulated amortization of the building under capital lease | 6,800 | 6,300 | |
Corporate headquarters and distribution center | Land | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $ 900 | $ 900 | $ 900 |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Rental Commitments (Details) $ in Thousands | Jan. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 70,168 |
2,017 | 66,949 |
2,018 | 65,464 |
2,019 | 54,770 |
2,020 | 47,552 |
Thereafter | 124,153 |
Total | 429,056 |
Related Parties | |
Operating Leased Assets [Line Items] | |
2,016 | 2,267 |
2,017 | 2,226 |
2,018 | 1,503 |
2,019 | 1,430 |
2,020 | 1,347 |
Thereafter | 1,409 |
Total | 10,182 |
Other | |
Operating Leased Assets [Line Items] | |
2,016 | 67,901 |
2,017 | 64,723 |
2,018 | 63,961 |
2,019 | 53,340 |
2,020 | 46,205 |
Thereafter | 122,744 |
Total | $ 418,874 |
Leases - Rent Expense Under Ope
Leases - Rent Expense Under Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Leases [Abstract] | |||
Minimum rentals | $ 43,176 | $ 40,290 | $ 38,009 |
Contingent rentals | 403 | 832 | 675 |
Total rent expense | $ 43,579 | $ 41,122 | $ 38,684 |
Leases - Future Commitments und
Leases - Future Commitments under Related Party Capital Lease Obligation (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Capital Leased Assets [Line Items] | ||
Less: Current portion | $ 858 | $ 806 |
Related Party Lease | ||
Capital Leased Assets [Line Items] | ||
2,016 | 940 | |
2,017 | 861 | |
Total minimum lease payments | 1,801 | |
Less: Amount representing interest | 108 | |
Present value of net minimum lease payments | 1,693 | |
Less: Current portion | 858 | |
Long-term portion | $ 835 |
Commitment And Contingencies -
Commitment And Contingencies - Additional Information (Details) - USD ($) | Jun. 10, 2015 | Jan. 30, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total future minimum payment due | $ 1,700,000 | |
Future minimum payment due in fiscal 2016 | 1,000,000 | |
Future minimum payment due in fiscal 2017 | 500,000 | |
Future minimum payment in fiscal 2018 | 200,000 | |
Established loss provisions | 500,000 | |
Litigation settlement | $ 2,000,000 | |
Litigation settlement term (in years) | 3 years | |
Estimated minimum reasonably possible loss | 0 | |
Estimated maximum reasonably possible loss | $ 1,700,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Categorized Based on Priority of Inputs to Valuation Technique Instruments (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value, Inputs, Level 1 | Cash Equivalents | Money Market Instruments | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | $ 42,626 | $ 34,433 |
Fair Value, Inputs, Level 1 | Marketable Securities | Commercial Paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Inputs, Level 2 | Cash Equivalents | Money Market Instruments | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 2 | Marketable Securities | Commercial Paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable securities | 49,932 | 34,957 |
Fair Value, Inputs, Level 3 | Cash Equivalents | Money Market Instruments | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 3 | Marketable Securities | Commercial Paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Detai
Fair Value Measurements - Details of Impairment of Long-Lived Assets (Details) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016USD ($)store | Jan. 31, 2015USD ($)store | Feb. 01, 2014USD ($)store | |
Fair Value Disclosures [Abstract] | |||
Carrying value of assets with impairment | $ | $ 3,589 | $ 1,007 | $ 1,840 |
Fair value of assets impaired | $ | $ 996 | $ 0 | $ 0 |
Number of stores tested for impairment | store | 20 | 15 | 11 |
Number of stores with impairment | store | 9 | 2 | 4 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Jan. 30, 2016USD ($)store | Jan. 31, 2015USD ($)store | Feb. 01, 2014USD ($)store |
Fair Value Disclosures [Abstract] | |||
Number of stores with impairment | store | 9 | 2 | 4 |
Carrying value of long lived assets | $ | $ 2.6 | $ 1 | $ 1.8 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of awards vesting (percent) | 25.00% | |||
Vesting period (in years) | 4 years | |||
Expiration period (in years) | 10 years | |||
Total intrinsic value of options exercised | $ 1,700 | $ 100 | $ 1,600 | |
Total fair value of options vested | 4,600 | 3,500 | 3,000 | |
Proceeds from exercise of stock options | 3,094 | 304 | 2,389 | |
Tax benefit realized from stock options exercised | 700 | 100 | 700 | |
Stock-based compensation expense | 3,926 | $ 3,499 | $ 3,106 | |
Total unrecognized stock-based compensation expense related to unvested stock options and restricted stock grants | $ 5,700 | |||
Weighted average recognition period | 2 years 8 months 1 day | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value (in dollars per share) | $ 8.27 | $ 16.18 | ||
Fair value of stock vested | $ 400 | $ 200 | $ 200 | |
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of awards vesting (percent) | 50.00% | |||
Director | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 2 years | |||
Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of awards vesting (percent) | 25.00% | |||
Employee | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Stock Incentive Plan 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance (in shares) | 2,355,613 | |||
Stock Incentive Plan 2012 | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares authorized (up to) | 4,413,900 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity Under Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Stock options | |||
Beginning balance (in shares) | 2,880,040 | ||
Granted (in shares) | 585,000 | ||
Exercised (in shares) | (336,140) | ||
Forfeited (in shares) | (381,000) | ||
Expired (in shares) | (936,575) | ||
Ending balance (in shares) | 1,811,325 | 2,880,040 | |
Vested and expected to vest ending balance (in shares) | 1,723,520 | ||
Exercisable ending balance (in shares) | 693,450 | ||
Grant date weighted average exercise price | |||
Grant date weighted average exercise price, Beginning balance (in dollars per share) | $ 13.03 | ||
Grant date weighted average exercise price, Granted (in dollars per share) | 6.91 | ||
Grant date weighted average exercise price, Exercised (in dollars per share) | 9.21 | ||
Grant date weighted average exercise price, Forfeited (in dollars per share) | 12.97 | ||
Grant date weighted average exercise price, Expired (in dollars per share) | 14.69 | ||
Grant date weighted average exercise price, Ending balance (in dollars per share) | 10.93 | $ 13.03 | |
Grant date weighted average exercise price, Vested and expected to vest ending balance (in dollars per share) | 11.06 | ||
Grant date weighted average exercise price, Exercisable ending balance (in dollars per share) | $ 12.87 | ||
Average remaining contractual life | |||
Outstanding at end of period (in years) | 7 years 6 months | ||
Vested and expected to vest end of period (in years) | 7 years 4 months 24 days | ||
Exercisable ending balance (in years) | 5 years 6 months | ||
Aggregate intrinsic value | |||
Outstanding at end of period | $ 218 | ||
Vested and expected to vest ending balance | 194 | ||
Exercisable ending balance | $ 2 | ||
Class A Common Stock | |||
Stock options | |||
Exercised (in shares) | (336,000) | (38,000) | (280,000) |
Aggregate intrinsic value | |||
Market value per share (in dollars per share) | $ 6.49 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Average fair value per option granted (in dollars per share) | $ 3.06 | $ 5.19 | $ 6.31 |
Expected option term (in years) | 5 years | 5 years | 5 years |
Expected volatility factor (percent) | 49.68% | 46.84% | 56.19% |
Risk-free interest rate (percent) | 1.64% | 1.76% | 0.84% |
Expected annual dividend yield (percent) | 0.00% | 0.00% | 0.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Status of Non-Vested Restricted Stock (Details) - Non Vested | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Shares | |
Beginning Balance (in shares) | shares | 48,584 |
Granted (in shares) | shares | 335,740 |
Vested (in shares) | shares | (41,736) |
Forfeited (in shares) | shares | (118,000) |
Ending Balance (in shares) | shares | 224,588 |
Weighted average grant date fair value | |
Weighted average grant date fair value, Beginning Balance (in dollars per share) | $ / shares | $ 9.88 |
Weighted average grant date fair value, Granted (in dollars per share) | $ / shares | 15.15 |
Weighted average grant date fair value, Vested (in dollars per share) | $ / shares | 12.48 |
Weighted average grant date fair value, Forfeited (in dollars per share) | $ / shares | 16.07 |
Weighted average grant date fair value, Ending Balance (in dollars per share) | $ / shares | $ 14.02 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,926 | $ 3,499 | $ 3,106 |
Cost of Goods Sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 991 | 750 | 694 |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,935 | $ 2,749 | $ 2,412 |
Retirement Savings Plan - Addit
Retirement Savings Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Age of employees covered by plan | 21 years | ||
Service period required (in months) | 3 months | ||
Total employer contribution | $ 0.7 | $ 0.7 | $ 0.6 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current: | |||
Federal | $ 7,614 | $ 6,433 | $ 9,591 |
State | 1,439 | 1,517 | 2,304 |
Total current tax expense | 9,053 | 7,950 | 11,895 |
Deferred: | |||
Federal | 1,105 | 1,387 | (293) |
State | 449 | (237) | (11) |
Total deferred tax expense | 1,554 | 1,150 | (304) |
Total income tax expense | $ 10,607 | $ 9,100 | $ 11,591 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense to the Amount Computed at Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes at statutory rate | $ 6,352 | $ 8,111 | $ 10,405 |
State and local income taxes, net of federal benefit | 1,098 | 885 | 1,517 |
Return to provision adjustments | 130 | (15) | (369) |
Stock compensation discrete items (1) | 2,592 | 0 | 0 |
Other | 435 | 119 | 38 |
Total income tax expense | $ 10,607 | $ 9,100 | $ 11,591 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Deferred rent | $ 5,165 | $ 5,134 |
Stock-based compensation | 3,061 | 5,127 |
Accrued expenses | 1,366 | 1,262 |
Inventories | 2,307 | 2,206 |
Compensation and benefits | 676 | 630 |
Capital lease | 274 | 388 |
Deferred revenue | 247 | 227 |
Tax credits | 161 | 119 |
Total deferred tax assets | 13,257 | 15,093 |
Deferred tax liabilities: | ||
Property and equipment | (8,030) | (8,279) |
Prepaid expenses | (684) | (717) |
Marketable securities | (15) | (14) |
Total deferred tax liabilities | (8,729) | (9,010) |
Net deferred tax asset | $ 4,528 | $ 6,083 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Tax Credit Carryforward [Line Items] | ||
Deferred tax assets, current | $ 3,897 | $ 3,594 |
Deferred tax assets, noncurrent | 600 | 2,500 |
CALIFORNIA | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryovers | $ 200 | $ 200 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Net income | $ 2,885 | $ 2,814 | $ 560 | $ 1,282 | $ 7,105 | $ 5,113 | $ 1,266 | $ 591 | $ 7,541 | $ 14,075 | $ 18,137 |
Weighted average basic shares outstanding (in shares) | 28,332 | 28,013 | 27,822 | ||||||||
Dilutive effect of stock options and restricted stock (in shares) | 70 | 65 | 294 | ||||||||
Weighted average shares for diluted earnings per share (in shares) | 28,402 | 28,078 | 28,116 | ||||||||
Basic earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.02 | $ 0.05 | $ 0.25 | $ 0.18 | $ 0.05 | $ 0.02 | |||
Diluted earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.02 | $ 0.05 | $ 0.25 | $ 0.18 | $ 0.05 | $ 0.02 | |||
Class A and Class B common stock | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Basic earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.27 | $ 0.50 | $ 0.65 | ||||||||
Diluted earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.27 | $ 0.50 | $ 0.65 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) shares in Thousands | 12 Months Ended | ||
Jan. 30, 2016vote / sharesshares | Jan. 31, 2015shares | Feb. 01, 2014shares | |
Earnings Per Share [Line Items] | |||
Stock options excluded from the calculation of diluted earning per share (in shares) | shares | 1,273 | 2,364 | 1,766 |
Class A Common Stock | |||
Earnings Per Share [Line Items] | |||
Number of votes | 1 | ||
Class B Common Stock | |||
Earnings Per Share [Line Items] | |||
Number of votes | 10 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Presidents Charitable Organization, Tilly's Life Center | ||
Related Party Transaction [Line Items] | ||
Charitable pledge (up to) | $ 50,000 | $ 20,000 |
Quarterly Financial Informati70
Quarterly Financial Information (Unaudited) - Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 159,086 | $ 141,692 | $ 130,023 | $ 120,190 | $ 152,817 | $ 131,283 | $ 123,060 | $ 111,134 | $ 550,991 | $ 518,294 | $ 495,837 |
Gross profit | 49,957 | 44,641 | 36,596 | 36,052 | 49,002 | 40,548 | 34,655 | 31,327 | 167,246 | 155,532 | 150,822 |
Operating income | 9,476 | 5,387 | 1,104 | 2,129 | 11,206 | 8,577 | 2,329 | 1,077 | 18,096 | 23,189 | 29,737 |
Net income | $ 2,885 | $ 2,814 | $ 560 | $ 1,282 | $ 7,105 | $ 5,113 | $ 1,266 | $ 591 | $ 7,541 | $ 14,075 | $ 18,137 |
Basic earnings per share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.02 | $ 0.05 | $ 0.25 | $ 0.18 | $ 0.05 | $ 0.02 | |||
Diluted earnings per share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.02 | $ 0.05 | $ 0.25 | $ 0.18 | $ 0.05 | $ 0.02 |