Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 29, 2016 | Nov. 25, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 29, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TLYS | |
Entity Registrant Name | TILLY'S, INC. | |
Entity Central Index Key | 1,524,025 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Accelerated Filer | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,802,330 | |
Common Stock (Class B) | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,749,097 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 43,382 | $ 51,020 |
Marketable securities | 61,915 | 49,932 |
Receivables | 5,873 | 5,397 |
Merchandise inventories | 65,016 | 51,357 |
Prepaid expenses and other current assets | 9,965 | 9,071 |
Total current assets | 186,151 | 166,777 |
Property and equipment, net | 93,206 | 99,026 |
Other assets | 5,414 | 4,948 |
Total assets | 284,771 | 270,751 |
Current liabilities: | ||
Accounts payable | 26,613 | 16,022 |
Accrued expenses | 22,017 | 18,901 |
Deferred revenue | 6,247 | 8,174 |
Accrued compensation and benefits | 5,480 | 5,751 |
Current portion of deferred rent | 6,146 | 6,106 |
Current portion of capital lease obligation | 899 | 858 |
Total current liabilities | 67,402 | 55,812 |
Long-term portion of deferred rent | 36,940 | 40,891 |
Long-term portion of capital lease obligation | 155 | 835 |
Total long-term liabilities | 37,095 | 41,726 |
Total liabilities | 104,497 | 97,538 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; July 30, 2016 and January 30, 2016 - 10,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Additional paid-in capital | 135,469 | 133,550 |
Retained earnings | 44,719 | 39,613 |
Accumulated other comprehensive income | 57 | 22 |
Total stockholders’ equity | 180,274 | 173,213 |
Total liabilities and stockholders’ equity | 284,771 | 270,751 |
Common stock (Class A) | ||
Stockholders’ equity: | ||
Common stock | 13 | 12 |
Common stock (Class B) | ||
Stockholders’ equity: | ||
Common stock | $ 16 | $ 16 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock (Class A) | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 12,305 | 11,546 |
Common stock, shares outstanding (in shares) | 12,305 | 11,546 |
Common stock (Class B) | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 35,000 | 35,000 |
Common stock, shares issued (in shares) | 16,169 | 16,544 |
Common stock, shares outstanding (in shares) | 16,169 | 16,544 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Net sales | $ 152,106 | $ 141,692 | $ 408,736 | $ 391,905 |
Cost of goods sold (includes buying, distribution, and occupancy costs) | 104,137 | 97,051 | 289,343 | 274,616 |
Gross profit | 47,969 | 44,641 | 119,393 | 117,289 |
Selling, general and administrative expenses | 37,302 | 39,254 | 110,460 | 108,669 |
Operating income (loss) | 10,667 | 5,387 | 8,933 | 8,620 |
Other income, net | 103 | 21 | 270 | 40 |
Income (Loss) before income taxes | 10,770 | 5,408 | 9,203 | 8,660 |
Income tax expense (benefit) | 4,353 | 2,594 | 4,097 | 4,003 |
Net income (loss) | $ 6,417 | $ 2,814 | $ 5,106 | $ 4,657 |
Weighted average basic shares outstanding (in shares) | 28,482 | 28,408 | 28,456 | 28,305 |
Weighted average diluted shares outstanding (in shares) | 28,527 | 28,419 | 28,476 | 28,403 |
Class A and Class B common stock | ||||
Basic earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.23 | $ 0.10 | $ 0.18 | $ 0.16 |
Diluted earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.22 | $ 0.10 | $ 0.18 | $ 0.16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6,417 | $ 2,814 | $ 5,106 | $ 4,657 |
Other comprehensive income (loss): | ||||
Net change in unrealized gain on available-for-sale securities, net of tax | 26 | (9) | 35 | (17) |
Other comprehensive income (loss) | 26 | (9) | 35 | (17) |
Comprehensive income (loss) | $ 6,443 | $ 2,805 | $ 5,141 | $ 4,640 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 9 months ended Oct. 29, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Common Stock (Class A) | Common Stock (Class B) |
Beginning balance (in shares) at Jan. 30, 2016 | 12,305 | 16,169 | |||||
Beginning balance at Jan. 30, 2016 | $ 173,213 | $ 28 | $ 133,550 | $ 39,613 | $ 22 | ||
Net income (loss) | 5,106 | 5,106 | |||||
Restricted stock (in shares) | 74 | ||||||
Taxes paid in lieu of shares issued | (99) | (99) | |||||
Shares converted by founders (in shares) | 290 | (290) | |||||
Stock-based compensation expense | 1,995 | 1,995 | |||||
Change in unrealized gain on available-for-sale securities | 35 | 35 | |||||
Ending balance (in shares) at Oct. 29, 2016 | 12,672 | 15,879 | |||||
Ending balance at Oct. 29, 2016 | $ 180,274 | $ 29 | $ 135,469 | $ 44,719 | $ 57 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ 5,106 | $ 4,657 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,498 | 16,991 |
Stock-based compensation expense | 1,995 | 3,313 |
Impairment of assets | 1,963 | 1,721 |
(Gain) loss on disposal of assets | 6 | 245 |
Gain on sales and maturities of marketable securities | (164) | (96) |
Deferred income taxes | (298) | (733) |
Excess tax benefit from stock-based compensation | 0 | (95) |
Changes in operating assets and liabilities: | ||
Receivables | (476) | (1,809) |
Merchandise inventories | (13,659) | (18,603) |
Prepaid expenses and other assets | (1,084) | (932) |
Accounts payable | 10,667 | 1,401 |
Accrued expenses | 4,144 | 3,110 |
Accrued compensation and benefits | (271) | (1,633) |
Deferred rent | (3,911) | 729 |
Deferred revenue | (1,927) | (1,863) |
Net cash provided by operating activities | 19,589 | 6,403 |
Cash flows from investing activities | ||
Purchase of property and equipment | (14,794) | (17,491) |
Proceeds from sale of property and equipment | 43 | 7 |
Purchases of marketable securities | (81,762) | (49,927) |
Maturities of marketable securities | 70,000 | 55,000 |
Net cash used in investing activities | (26,513) | (12,411) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 24 | 3,094 |
Payment of capital lease obligation | (639) | (600) |
Taxes paid in lieu of shares issued for stock-based compensation | (99) | (35) |
Excess tax benefit from stock-based compensation | 0 | 95 |
Net cash (used in) provided by financing activities | (714) | 2,554 |
Change in cash and cash equivalents | (7,638) | (3,454) |
Cash and cash equivalents, beginning of period | 51,020 | 49,789 |
Cash and cash equivalents, end of period | 43,382 | 46,335 |
Supplemental disclosures of cash flow information | ||
Interest paid | 67 | 105 |
Income taxes paid | 3,570 | 4,192 |
Supplemental disclosure of non-cash activities | ||
Unpaid purchases of property and equipment | $ 713 | $ 4,198 |
Description of the Company and
Description of the Company and Basis of Presentation | 9 Months Ended |
Oct. 29, 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 225 stores in 32 states as of October 29, 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 a substantially similar assortment of products as 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 & 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. We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"), for interim financial reporting. These consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this Quarterly Report on Form 10-Q as is permitted by SEC rules and regulations. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows for the interim periods presented. The results of operations for the three and nine months ended October 29, 2016 and October 31, 2015 are not necessarily indicative of results to be expected for the full fiscal year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . Fiscal Periods Our fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended October 29, 2016 and October 31, 2015 refer to the three and nine months ended as of those dates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and New Accounting Standard | Summary of Significant Accounting Policies and New Accounting Standards Information regarding significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies”, of the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . Income Taxes The provision for income taxes for interim periods is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Significant management judgment is required in projecting ordinary income (loss) to estimate our annual effective tax rate. In the fourth quarter of fiscal 2015, the Internal Revenue Service initiated an examination of our federal income tax return for the year ended January 31, 2015. The examination was completed without penalty to the Company in the first quarter of fiscal 2016. Our effective income tax rate for the three and nine months ended October 29, 2016 was 40% and 45% , respectively, which includes the write-off of deferred tax assets for discrete items related to the settlement of restricted stock and the expiration of stock options. Our effective income tax rate for the three and nine months ended October 31, 2015 was 48% and 46% , respectively. New Accounting Standards Not Yet Adopted and Recently Adopted Accounting Standard In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies the accounting and reporting for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for us in the first quarter of fiscal 2017, with early adoption permitted. We currently do not expect the adoption of this update to have a material effect on our consolidated results of operations and financial position. In August 2016, we adopted 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 and retrospective application permitted. As a result of our early adoption, for all periods presented, "Other assets" in the Consolidated Balance Sheets now includes deferred tax assets previously reported as current liabilities in "Prepaid expenses and other current assets". |
Marketable Securities
Marketable Securities | 9 Months Ended |
Oct. 29, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities as of October 29, 2016 consisted of commercial paper classified as available for sale and municipal bonds and certificates of deposit classified as held to maturity. All of our marketable securities are less than one year from maturity. The following table summarizes our investments in marketable securities at October 29, 2016 and January 30, 2016 (in thousands): October 29, 2016 Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Commercial paper $ 54,781 $ 94 $ — $ 54,875 Municipal bonds 5,022 — — 5,022 Certificates of deposit 2,018 — — 2,018 January 30, 2016 Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Commercial paper $ 49,894 $ 38 $ — $ 49,932 We recognized gains on investments for commercial paper that matured during the three and nine months ended October 29, 2016 and October 31, 2015. Upon recognition of the gains, we reclassified these amounts out of accumulated other comprehensive income and into “Other income, net” on the Consolidated Statements of Income. The following table summarizes our gains on investments for marketable securities (in thousands): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Gains on investments $ 57 $ 31 $ 164 $ 96 |
Line of Credit
Line of Credit | 9 Months Ended |
Oct. 29, 2016 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit Our amended and restated credit agreement with Wells Fargo Bank, N.A. (the "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 credit agreement is secured by substantially all of our assets. As a sub-feature under the credit agreement, 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 credit agreement. The financial covenants require certain levels of leverage and profitability, such as (i) an aggregate maximum net loss after taxes not to exceed $5.0 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. We are currently in the process of negotiating with the Bank to renew our credit facility for a three year term on materially equivalent terms to our expiring credit facility. As of October 29, 2016 , we were in compliance with all of our covenants and had no outstanding borrowings under the revolving credit facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 $2.2 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 sought 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. In November 2015, plaintiffs filed a notice of appeal of the court's order denying plaintiffs' motion for class certification. In October 2016, the named plaintiffs’ individual claims were settled, and the entire case dismissed with prejudice. 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 of 2004. 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 settlement. The court granted final approval of the settlement on November 10, 2016. 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, the plaintiff filed a putative class action and representative Private Attorney General Act of 2004 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 sought class certification, penalties, restitution, injunctive relief and attorneys’ fees and costs. The plaintiff filed a first amended complaint on December 3, 2014. We answered the complaint on January 8, 2015, denying all allegations. We engaged in mediation in May 2016, and the parties reached a resolution that was presented to the court for preliminary approval on September 13, 2016. The court preliminarily approved the settlement on October 4, 2016, and notice of the settlement was issued to class members. 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, the plaintiff filed a putative class action lawsuit against us, alleging violations of California's wage and hour rules and regulations and unfair competition law. Specifically, the complaint asserted a violation of the applicable California Wage Order for alleged failure to pay reporting time pay, as well as several derivative claims. The complaint sought certification of a class, unspecified damages, unpaid wages, penalties, restitution, and attorneys' fees. On June 21, 2016, the court granted our demurrer to the plaintiff's complaint, on the grounds that the plaintiff failed to state a cause of action against Tilly's. Specifically, the court agreed with us that the plaintiff's cause of action for reporting-time pay fails as a matter of law as the plaintiff and other putative class members did not "report for work" with respect to certain shifts on which the plaintiff's claims are based. At the hearing on the plaintiff's demurrer, the court granted the plaintiff leave to amend her complaint. The plaintiff filed an amended complaint on July 5, 2016, which brought the same claims as her original complaint but added various factual allegations. On August 5, 2016, we filed a demurrer as to the plaintiff's amended complaint, on the grounds that the plaintiff's amended complaint still failed to state a cause of action against Tilly's, for the same reasons that the court granted our demurrer as to the plaintiff's original complaint. A court hearing was held on the demurrer on October 26, 2016, and on November 21, 2016, the court entered a written order sustaining our demurrer, and dismissing all of plaintiff’s causes of action with prejudice. Plaintiff may appeal the order to the California Court of Appeal. We have defended this case vigorously and will continue to do so. 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 $1.5 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 | 9 Months Ended |
Oct. 29, 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. During the three and nine months ended October 29, 2016 and October 31, 2015 , we did not make any transfers between Level 1 and Level 2 financial assets. Furthermore, as of October 29, 2016 and January 30, 2016, 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 We have categorized our financial assets based on the priority of the inputs to the valuation technique for the instruments as follows (in thousands): October 29, 2016 January 30, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market securities $ 42,008 $ — $ — $ 42,626 $ — $ — Certificates of deposit — 2,005 — — — — Marketable securities: Commercial paper $ — $ 54,875 $ — $ — $ 49,932 $ — Municipal bonds — 5,022 — — — — Certificates of deposit — 2,018 — — — — 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. Important factors 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 eight stores 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 during the three and nine months ended October 29, 2016 of approximately $0.4 million and $2.0 million , respectively, to write-down the carrying value of certain long-lived store assets to their estimated fair values. Three Months Ended Nine Months Ended October 29, 2016 October 31, October 29, 2016 October 31, ($ in thousands) Carrying value of assets with impairment $440 $1,710 $2,136 $2,355 Fair value of assets impaired $— $355 $173 $634 Number of stores tested for impairment 9 12 15 14 Number of stores with impairment 2 6 8 6 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Share-Based Compensation The Tilly's, Inc. 2012 Amended and Restated Equity and Incentive 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 October 29, 2016 , there were 2,071,935 shares still available for future issuance under the 2012 Plan. Stock Options We grant stock options to certain employees that give 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 the stock option activity for the nine months ended October 29, 2016 (aggregate intrinsic value in thousands): Stock Options Grant Date Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (1) Outstanding at January 30, 2016 1,811,325 $ 10.93 Granted 458,500 $ 6.90 Exercised (3,750 ) $ 6.97 Forfeited (113,750 ) $ 10.05 Expired (77,325 ) $ 14.28 Outstanding at October 29, 2016 2,075,000 $ 9.97 7.3 $ 2,847 Vested and expected to vest at October 29, 2016 1,983,233 $ 10.09 7.2 $ 2,623 Exercisable at October 29, 2016 945,000 $ 12.92 4.7 $ 182 (1) Intrinsic value for stock options is defined as the difference between the market price of our Class A common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period. The market value per share was $9.35 at October 29, 2016 . 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 during the three and nine months ended October 29, 2016 and October 31, 2015 were estimated on the grant date using the following assumptions: Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Weighted average grant-date fair value per option granted $4.85 $3.45 $3.68 $5.34 Expected option term (1) 5.0 years 5.0 years 5.0 years 5.0 years Weighted average expected volatility factor (2) 67.3 % 48.0 % 62.7 % 47.7 % Weighted average risk-free interest rate (3) 1.2 % 1.5 % 1.3 % 1.5 % 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 of our common stock issued upon the date of grant in which the recipient's rights in the stock are restricted until the shares are vested, and restricted stock units ("RSUs") represent a commitment to issue shares of our common stock in the future upon vesting. Under the 2012 Plan, we may grant RSAs to independent members of our Board of Directors and RSUs to certain employees. RSAs granted to our Board of Directors 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. RSUs 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 RSUs 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 changes during the nine months ended October 29, 2016 are presented below: Restricted Stock Weighted Average Grant-Date Fair Value Nonvested at January 30, 2016 224,588 $ 14.02 Granted 51,864 $ 6.17 Vested (80,093 ) $ 12.45 Forfeited (26,774 ) $ 15.15 Nonvested at October 29, 2016 169,585 $ 12.18 Stock-based compensation expense associated with stock options and restricted stock is recognized on a straight-line basis over the vesting period. The following table summarizes stock-based compensation recorded in the Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Cost of goods sold $ 165 $ 234 $ 706 $ 758 Selling, general and administrative expenses 372 778 1,289 2,555 Stock-based compensation $ 537 $ 1,012 $ 1,995 $ 3,313 At October 29, 2016 , there was $4.9 million of total unrecognized stock-based compensation expense related to unvested stock options and restricted stock. This cost has a weighted average remaining recognition of 2.5 years . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 29, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share is computed under the provisions of ASC 260, Earnings Per Share . Basic income per share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed based on the weighted average number of 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 earnings per share are as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Net income $ 6,417 $ 2,814 $ 5,106 $ 4,657 Weighted average basic shares outstanding 28,482 28,408 28,456 28,305 Dilutive effect of stock options and restricted stock 45 11 20 98 Weighted average shares for diluted earnings per share 28,527 28,419 28,476 28,403 Basic earnings per share of Class A and Class B common stock $ 0.23 $ 0.10 $ 0.18 $ 0.16 Diluted earnings per share of Class A and Class B common stock $ 0.22 $ 0.10 $ 0.18 $ 0.16 The following stock options and restricted stock 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 (in thousands): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Stock options 1,529 2,064 2,029 1,908 Restricted stock 102 175 102 165 Total 1,631 2,239 2,131 2,073 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"), for interim financial reporting. These consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this Quarterly Report on Form 10-Q as is permitted by SEC rules and regulations. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows for the interim periods presented. The results of operations for the three and nine months ended October 29, 2016 and October 31, 2015 are not necessarily indicative of results to be expected for the full fiscal year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . |
Fiscal Periods | Our fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended October 29, 2016 and October 31, 2015 refer to the three and nine months ended as of those dates. |
Income Taxes | The provision for income taxes for interim periods is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Significant management judgment is required in projecting ordinary income (loss) to estimate our annual effective tax rate. In the fourth quarter of fiscal 2015, the Internal Revenue Service initiated an examination of our federal income tax return for the year ended January 31, 2015. The examination was completed without penalty to the Company in the first quarter of fiscal 2016. Our effective income tax rate for the three and nine months ended October 29, 2016 was 40% and 45% , respectively, which includes the write-off of deferred tax assets for discrete items related to the settlement of restricted stock and the expiration of stock options. Our effective income tax rate for the three and nine months ended October 31, 2015 was 48% and 46% |
New Accounting Standard |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Securities | The following table summarizes our investments in marketable securities at October 29, 2016 and January 30, 2016 (in thousands): October 29, 2016 Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Commercial paper $ 54,781 $ 94 $ — $ 54,875 Municipal bonds 5,022 — — 5,022 Certificates of deposit 2,018 — — 2,018 January 30, 2016 Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Commercial paper $ 49,894 $ 38 $ — $ 49,932 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Categorized Based on Priority of Inputs to Valuation Technique Instruments | We have categorized our financial assets based on the priority of the inputs to the valuation technique for the instruments as follows (in thousands): October 29, 2016 January 30, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market securities $ 42,008 $ — $ — $ 42,626 $ — $ — Certificates of deposit — 2,005 — — — — Marketable securities: Commercial paper $ — $ 54,875 $ — $ — $ 49,932 $ — Municipal bonds — 5,022 — — — — Certificates of deposit — 2,018 — — — — |
Details of Impairment of Long-Lived Assets | Three Months Ended Nine Months Ended October 29, 2016 October 31, October 29, 2016 October 31, ($ in thousands) Carrying value of assets with impairment $440 $1,710 $2,136 $2,355 Fair value of assets impaired $— $355 $173 $634 Number of stores tested for impairment 9 12 15 14 Number of stores with impairment 2 6 8 6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity Under Stock Option Plan | The following table summarizes the stock option activity for the nine months ended October 29, 2016 (aggregate intrinsic value in thousands): Stock Options Grant Date Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (1) Outstanding at January 30, 2016 1,811,325 $ 10.93 Granted 458,500 $ 6.90 Exercised (3,750 ) $ 6.97 Forfeited (113,750 ) $ 10.05 Expired (77,325 ) $ 14.28 Outstanding at October 29, 2016 2,075,000 $ 9.97 7.3 $ 2,847 Vested and expected to vest at October 29, 2016 1,983,233 $ 10.09 7.2 $ 2,623 Exercisable at October 29, 2016 945,000 $ 12.92 4.7 $ 182 (1) Intrinsic value for stock options is defined as the difference between the market price of our Class A common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period. The market value per share was $9.35 at October 29, 2016 . |
Assumptions Used to Estimate Fair Value of Stock Options Granted | The fair values of stock options granted during the three and nine months ended October 29, 2016 and October 31, 2015 were estimated on the grant date using the following assumptions: Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Weighted average grant-date fair value per option granted $4.85 $3.45 $3.68 $5.34 Expected option term (1) 5.0 years 5.0 years 5.0 years 5.0 years Weighted average expected volatility factor (2) 67.3 % 48.0 % 62.7 % 47.7 % Weighted average risk-free interest rate (3) 1.2 % 1.5 % 1.3 % 1.5 % 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 changes during the nine months ended October 29, 2016 are presented below: Restricted Stock Weighted Average Grant-Date Fair Value Nonvested at January 30, 2016 224,588 $ 14.02 Granted 51,864 $ 6.17 Vested (80,093 ) $ 12.45 Forfeited (26,774 ) $ 15.15 Nonvested at October 29, 2016 169,585 $ 12.18 |
Schedule of Stock Based Compensation | The following table summarizes stock-based compensation recorded in the Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Cost of goods sold $ 165 $ 234 $ 706 $ 758 Selling, general and administrative expenses 372 778 1,289 2,555 Stock-based compensation $ 537 $ 1,012 $ 1,995 $ 3,313 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share are as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Net income $ 6,417 $ 2,814 $ 5,106 $ 4,657 Weighted average basic shares outstanding 28,482 28,408 28,456 28,305 Dilutive effect of stock options and restricted stock 45 11 20 98 Weighted average shares for diluted earnings per share 28,527 28,419 28,476 28,403 Basic earnings per share of Class A and Class B common stock $ 0.23 $ 0.10 $ 0.18 $ 0.16 Diluted earnings per share of Class A and Class B common stock $ 0.22 $ 0.10 $ 0.18 $ 0.16 |
Description of the Company an21
Description of the Company and Basis of Presentation (Details) | Oct. 29, 2016Statestore |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | store | 225 |
Number of states | State | 32 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details) | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Accounting Policies [Abstract] | ||
Effective tax rate | 45.00% | 46.00% |
Marketable Securities - Investm
Marketable Securities - Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Financial Instruments And Marketable Securities [Line Items] | ||
Municipal Debt Securities, at Carrying Value | $ 5,022 | |
Certificates of Deposit, at Carrying Value | 2,018 | |
Commercial paper | ||
Financial Instruments And Marketable Securities [Line Items] | ||
Cost | 54,781 | $ 49,894 |
Gross Unrealized Holding Gains | 94 | 38 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | $ 54,875 | $ 49,932 |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gains on sales and maturities of marketable securities | $ 57 | $ 31 | $ 164 | $ 96 |
Line of Credit (Details)
Line of Credit (Details) | Mar. 17, 2014USD ($) | Oct. 29, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 29, 2016USD ($) | Oct. 31, 2015USD ($) |
Line of Credit Facility [Line Items] | |||||
Letters of credit facility maximum borrowing capacity | $ 25,000,000 | ||||
Line of credit maturity date | May 31, 2017 | ||||
Line of credit interest rate term | The interest charged on borrowings is either at the London Interbank Offered Rate, or LIBOR, plus 1.00%, or at the bank’s prime rate. We have the ability to select between the prime rate or LIBOR-based rate at the time of a cash advance. | ||||
Covenant description | We are required to maintain certain financial and nonfinancial covenants in accordance with the revolving credit facility. The financial covenants require certain levels of leverage and profitability, such as (i) an aggregate maximum net loss after taxes not to exceed $5 million (measured at the end of each fiscal quarter), with no more than one annual net loss after taxes for any fiscal year (in either case, excluding all charges for impairment of goodwill, other intangibles and store assets impairment on the balance sheet of WOJT, in an aggregate amount of up to $2.0 million for the relevant period), and (ii) a maximum ratio of 2.00to 1.00 for “balance sheet leverage”, defined as total liabilities divided by total tangible net worth. | ||||
Net loss after taxes (not to exceed) | $ 6,417,000 | $ 2,814,000 | $ 5,106,000 | $ 4,657,000 | |
Covenant compliance | we were in compliance with all of our covenants and had no outstanding borrowings under the revolving credit facility. | ||||
Outstanding borrowing | $ 0 | $ 0 | |||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Net loss after taxes (not to exceed) | $ (5,000,000) | ||||
Impairment of goodwill, other intangibles and store assets (up to) | $ 2,000,000 | ||||
Balance sheet leverage | 2 | ||||
Stand-by and/or commercial letters of credit | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit facility maximum borrowing capacity | $ 15,000,000 | ||||
LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, percentage point added to reference rate | 1.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 01, 2015LegalMatter | Jun. 10, 2015USD ($) | Jun. 10, 2014LegalMatter | Jan. 29, 2013LegalMatter | Dec. 05, 2012LegalMatter | Oct. 29, 2016USD ($) |
Commitment And Contingencies [Line Items] | ||||||
Established loss provisions | $ | $ 2,200,000 | |||||
Litigation settlement | $ | $ 2,000,000 | |||||
Litigation settlement term | three years | |||||
Kirstin Christiansen, Shellie Smith and Paul Haug, on behalf of themselves and all others similarly situated vs. World of Jeans & Tops | ||||||
Commitment And Contingencies [Line Items] | ||||||
Plaintiff filed putative class action lawsuit | LegalMatter | 1 | |||||
Maria Rebolledo, individually and on behalf of all others similarly situated and on behalf of the general public vs. Tilly's, Inc.; World of Jeans & Tops | ||||||
Commitment And Contingencies [Line Items] | ||||||
Plaintiff filed putative class action lawsuit | LegalMatter | 1 | |||||
Karina Whitten, on behalf of herself and all others similarly situated, v. Tilly's Inc. | ||||||
Commitment And Contingencies [Line Items] | ||||||
Plaintiff filed putative class action lawsuit | LegalMatter | 1 | |||||
Skylar Ward, on behalf of herself and all other similarly situated, v. Tilly's Inc. | ||||||
Commitment And Contingencies [Line Items] | ||||||
Plaintiff filed putative class action lawsuit | LegalMatter | 1 | |||||
Minimum [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Estimated maximum reasonably possible loss | $ | 0 | |||||
Maximum [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Estimated maximum reasonably possible loss | $ | $ 1,500,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Based on Priority of Inputs to Valuation Technique Instruments (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | $ 2,005 | |
Level 1 | Cash equivalents | Money market securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | 42,008 | $ 42,626 |
Level 1 | Marketable securities | Commercial paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | Cash equivalents | Money market securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Marketable securities | Commercial paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable securities | 54,875 | 49,932 |
Level 2 | Marketable securities | Municipal Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Held-to-maturity Securities, Current | 5,022 | |
Level 2 | Marketable securities | Certificates of Deposit [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Held-to-maturity Securities, Current | 2,018 | |
Level 3 | Cash equivalents | Money market securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | Marketable securities | Commercial paper | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016USD ($)store | Oct. 31, 2015USD ($)store | Oct. 29, 2016USD ($)store | Oct. 31, 2015store | |
Fair Value Disclosures [Abstract] | ||||
Number of stores with impairment | store | 2 | 6 | 8 | 6 |
Non-cash impairment charges | $ | $ 0.4 | $ 0 | $ 2 |
Fair Value Measurements - Detai
Fair Value Measurements - Details of Impairment of Long-Lived Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016USD ($)store | Oct. 31, 2015USD ($)store | Oct. 29, 2016USD ($)store | Oct. 31, 2015USD ($)store | |
Fair Value Disclosures [Abstract] | ||||
Carrying value of assets with impairment | $ | $ 440 | $ 1,710 | $ 2,136 | $ 2,355 |
Fair value of assets impaired | $ | $ 0 | $ 355 | $ 173 | $ 634 |
Number of stores tested for impairment | store | 9 | 12 | 15 | 14 |
Number of stores with impairment | store | 2 | 6 | 8 | 6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Oct. 29, 2016 | Jan. 30, 2016 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rate | 25.00% | ||
Vesting period | 4 years | 4 years | |
Expiration period | 10 years | ||
Total unrecognized stock-based compensation expense related to unvested stock options and restricted stock grants | $ 4.9 | ||
Weighted average recognition period | 2 years 5 months 18 days | ||
Independent directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rate | 50.00% | ||
Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rate | 25.00% | ||
2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | 2,071,935 | ||
2012 Plan | Class A common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares authorized (in shares) | 4,413,900 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity Under Stock Option Plan (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Oct. 29, 2016USD ($)$ / sharesshares | |
Stock Options | |
Beginning balance | shares | 1,811,325 |
Granted | shares | 458,500 |
Forfeited | shares | (113,750) |
Expired | shares | (77,325) |
Ending balance | shares | 2,075,000 |
Vested and expected to vest ending balance | shares | 1,983,233 |
Exercisable ending balance | shares | 945,000 |
Grant Date Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ 10.93 |
Granted (in dollars per share) | 6.90 |
Forfeited (in dollars per share) | 10.05 |
Expired (in dollars per share) | 14.28 |
Ending balance (in dollars per share) | 9.97 |
Vested and expected to vest ending balance (in dollars per share) | 10.09 |
Exercisable ending balance (in dollars per share) | $ 12.92 |
Weighted Average Remaining Contractual Life (in Years) | |
Outstanding at end of period | 7 years 3 months 18 days |
Vested and expected to vest end of period | 7 years 2 months 18 days |
Exercisable ending balance | 4 years 8 months 1 day |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 2,847 |
Vested and expected to vest ending balance | $ | 2,623 |
Exercisable ending balance | $ | $ 182 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 3,750 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 6.97 |
Class A common stock | |
Aggregate Intrinsic Value | |
Market value per share (in dollars per share) | $ 9.35 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | $ 4.85 | $ 3.45 | $ 3.68 | $ 5.34 |
Expected option term | 5 years | 5 years | 5 years | 5 years |
Weighted average expected volatility factor | 67.30% | 48.00% | 62.70% | 47.70% |
Weighted average risk-free interest rate | 1.20% | 1.50% | 1.30% | 1.50% |
Expected annual dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Status of Non-Vested Restricted Stock (Details) - Nonvested | 9 Months Ended |
Oct. 29, 2016$ / sharesshares | |
Restricted Stock | |
Beginning balance | shares | 224,588 |
Granted | shares | 51,864 |
Vested | shares | (80,093) |
Forfeited | shares | (26,774) |
Ending balance | shares | 169,585 |
Weighted Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 14.02 |
Granted (in dollars per share) | $ / shares | 6.17 |
Vested (in dollars per share) | $ / shares | 12.45 |
Forfeited (in dollars per share) | $ / shares | 15.15 |
Ending balance (in dollars per share) | $ / shares | $ 12.18 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 537 | $ 1,012 | $ 1,995 | $ 3,313 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 165 | 234 | 706 | 758 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 372 | $ 778 | $ 1,289 | $ 2,555 |
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 | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income (loss) | $ 6,417 | $ 2,814 | $ 5,106 | $ 4,657 |
Weighted average basic shares outstanding (in shares) | 28,482 | 28,408 | 28,456 | 28,305 |
Dilutive effect of stock options and restricted stock (in shares) | 45 | 11 | 20 | 98 |
Weighted average shares for diluted earnings per share (in shares) | 28,527 | 28,419 | 28,476 | 28,403 |
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) | $ 0.23 | $ 0.10 | $ 0.18 | $ 0.16 |
Diluted earnings per share of Class A and Class B common stock (in dollars per share) | $ 0.22 | $ 0.10 | $ 0.18 | $ 0.16 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options and restricted stock excluded from the calculation of diluted earning per share | 1,630,625 | 2,238,950 | 2,130,625 |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options and restricted stock excluded from the calculation of diluted earning per share | 1,529,000 | 2,064,450 | 2,029,000 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options and restricted stock excluded from the calculation of diluted earning per share | 101,625 | 174,500 | 101,625 |