Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 01, 2014 | Mar. 21, 2014 | Aug. 03, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 1-Feb-14 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'RH | ' | ' |
Entity Registrant Name | 'Restoration Hardware Holdings Inc | ' | ' |
Entity Central Index Key | '0001528849 | ' | ' |
Current Fiscal Year End Date | '--02-01 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 38,887,454 | ' |
Entity Public Float | ' | ' | $1,696,344,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $13,389 | $8,354 |
Accounts receivable-net | 22,028 | 17,040 |
Merchandise inventories | 453,845 | 353,329 |
Current deferred tax assets | 21,400 | 37,006 |
Prepaid expense and other current assets | 103,153 | 77,029 |
Total current assets | 613,815 | 492,758 |
Property and equipment-net | 214,909 | 111,406 |
Goodwill | 122,424 | 122,601 |
Trademarks | 47,410 | 47,410 |
Other intangible assets-net | 1,298 | 2,713 |
Non-current deferred tax assets | 16,980 | 6,873 |
Other assets | 8,267 | 5,852 |
Total assets | 1,025,103 | 789,613 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 206,778 | 145,353 |
Deferred revenue and customer deposits | 48,927 | 41,643 |
Current deferred tax liabilities | 145 | ' |
Other current liabilities | 61,598 | 32,428 |
Total current liabilities | 317,448 | 219,424 |
Revolving line of credit | 85,425 | 82,501 |
Deferred rent and lease incentives | 37,727 | 30,784 |
Other long-term obligations | 39,231 | 5,293 |
Total liabilities | 479,831 | 338,002 |
Commitments and contingencies (See Note 16 to the consolidated financial statements) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.0001 par value per share, 180,000,000 shares authorized, 39,124,764 shares issued and outstanding as of February 1, 2014; 38,856,251 shares issued and 37,967,635 shares outstanding as of February 2, 2013 | 4 | 4 |
Additional paid-in capital | 584,641 | 505,883 |
Accumulated other comprehensive income | 629 | 1,211 |
Accumulated deficit | -37,292 | -55,487 |
Treasury stock-at cost, 40,353 and zero shares, respectively | -2,710 | ' |
Total stockholders' equity | 545,272 | 451,611 |
Total liabilities and stockholders' equity | $1,025,103 | $789,613 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 39,124,764 | 38,856,251 |
Common stock, shares outstanding | 39,124,764 | 37,967,635 |
Treasury stock, shares | 40,353 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Net revenues | $1,550,961 | $1,193,046 | $958,084 |
Cost of goods sold | 994,081 | 756,597 | 601,735 |
Gross profit | 556,880 | 436,449 | 356,349 |
Selling, general and administrative expenses | 502,029 | 505,485 | 329,506 |
Income (loss) from operations | 54,851 | -69,036 | 26,843 |
Interest expense | -5,733 | -5,776 | -5,134 |
Income (loss) before income taxes | 49,118 | -74,812 | 21,709 |
Income tax expense (benefit) | 30,923 | -62,023 | 1,121 |
Net income (loss) | $18,195 | ($12,789) | $20,588 |
Weighted-average shares used in computing basic net income (loss) per share | 38,671,564 | 9,428,828 | 468 |
Basic net income (loss) per share | $0.47 | ($1.36) | $43,991 |
Weighted-average shares used in computing diluted net income (loss) per share | 40,416,630 | 9,428,828 | 468 |
Basic and diluted net income (loss) per share | $0.45 | ($1.36) | $43,991 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $18,195 | ($12,789) | $20,588 |
Foreign currency translation adjustment-net of tax | -582 | 61 | 163 |
Total comprehensive income (loss) | $17,613 | ($12,728) | $20,751 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Executive Compensation [Member] | Management Fee [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
In Thousands, except Share data | Executive Compensation [Member] | Management Fee [Member] | ||||||||
Balances at Jan. 29, 2011 | $215,804 | ' | ' | ' | $278,103 | ' | ' | $987 | ($63,286) | ' |
Balances, shares at Jan. 29, 2011 | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 1,557 | ' | ' | ' | 1,557 | ' | ' | ' | ' | ' |
Capital contribution | ' | 6,350 | 6,000 | ' | ' | 6,350 | 6,000 | ' | ' | ' |
Net income (loss) | 20,588 | ' | ' | ' | ' | ' | ' | ' | 20,588 | ' |
Foreign currency translation adjustment-net of tax | 163 | ' | ' | ' | ' | ' | ' | 163 | ' | ' |
Capitalization of Restoration Hardware Holdings, Inc. | 1 | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Capitalization of Restoration Hardware Holdings, Inc., shares | ' | ' | ' | 900 | ' | ' | ' | ' | ' | ' |
Balances at Jan. 28, 2012 | 250,463 | ' | ' | ' | 292,011 | ' | ' | 1,150 | -42,698 | ' |
Balances, shares at Jan. 28, 2012 | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 116,183 | ' | ' | ' | 116,183 | ' | ' | ' | ' | ' |
Conversion of Restoration Hardware Holdings, Inc. common stock upon Reorganization | ' | ' | ' | -1,000 | ' | ' | ' | ' | ' | ' |
Issuance of common stock upon Reorganization | ' | ' | ' | 3 | -3 | ' | ' | ' | ' | ' |
Issuance of common stock upon Reorganization, shares | ' | ' | ' | 32,188,891 | ' | ' | ' | ' | ' | ' |
Issuance of common stock-net of issuance costs | 97,693 | ' | ' | 1 | 97,692 | ' | ' | ' | ' | ' |
Issuance of common stock-net of issuance costs, shares | ' | ' | ' | 4,782,609 | ' | ' | ' | ' | ' | ' |
Vesting of stock awards | ' | ' | ' | 996,135 | ' | ' | ' | ' | ' | ' |
Net income (loss) | -12,789 | ' | ' | ' | ' | ' | ' | ' | -12,789 | ' |
Foreign currency translation adjustment-net of tax | 61 | ' | ' | ' | ' | ' | ' | 61 | ' | ' |
Balances at Feb. 02, 2013 | 451,611 | ' | ' | 4 | 505,883 | ' | ' | 1,211 | -55,487 | ' |
Balances, shares at Feb. 02, 2013 | ' | ' | ' | 37,967,635 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 67,622 | ' | ' | ' | 67,622 | ' | ' | ' | ' | ' |
Issuance of restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted stock, Shares | ' | ' | ' | 6,667 | ' | ' | ' | ' | ' | ' |
Vested and delivered restricted stock units | -178 | ' | ' | ' | -178 | ' | ' | ' | ' | ' |
Vested and delivered restricted stock units, Shares | ' | ' | ' | 4,161 | ' | ' | ' | ' | ' | ' |
Exercise of stock options-including tax benefit | 11,314 | ' | ' | ' | 11,314 | ' | ' | ' | ' | ' |
Exercise of stock options-including tax benefit, Shares | ' | ' | ' | 298,038 | ' | ' | ' | ' | ' | ' |
Repurchases of common stock | -2,710 | ' | ' | ' | ' | ' | ' | ' | ' | -2,710 |
Repurchases of common stock, Shares | ' | ' | ' | -40,353 | ' | ' | ' | ' | ' | 40,353 |
Vesting of stock awards | ' | ' | ' | 888,616 | ' | ' | ' | ' | ' | ' |
Net income (loss) | 18,195 | ' | ' | ' | ' | ' | ' | ' | 18,195 | ' |
Foreign currency translation adjustment-net of tax | -582 | ' | ' | ' | ' | ' | ' | -582 | ' | ' |
Balances at Feb. 01, 2014 | $545,272 | ' | ' | $4 | $584,641 | ' | ' | $629 | ($37,292) | ($2,710) |
Balances, shares at Feb. 01, 2014 | ' | ' | ' | 39,124,764 | ' | ' | ' | ' | ' | 40,353 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income (loss) | $18,195 | ($12,789) | $20,588 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 27,654 | 26,748 | 29,186 |
Loss on disposal of property and equipment | ' | ' | 674 |
Impairment of long-lived assets | 1,385 | 0 | 0 |
Excess tax benefit from exercise of stock options | -3,685 | ' | ' |
Stock-based compensation expense | 67,622 | 116,183 | 1,557 |
Release of valuation allowance | ' | -57,185 | 299 |
Deferred income taxes | 5,602 | -4,686 | 4,299 |
Non-cash interest expense | 671 | 863 | 573 |
Change in assets and liabilities: | ' | ' | ' |
Accounts receivable | -4,995 | -5,282 | -7,280 |
Merchandise inventories | -100,937 | -107,454 | -39,475 |
Prepaid expense and other current assets | -22,819 | -24,454 | -36,371 |
Other assets | -3,129 | -371 | -573 |
Accounts payable and accrued expenses | 57,318 | 36,154 | 14,374 |
Deferred revenue and customer deposits | 7,282 | 16,224 | 11,418 |
Other current liabilities | 30,351 | 2,689 | 3,915 |
Deferred rent and lease incentives | 7,196 | 10,923 | 1,732 |
Other long-term obligations | -190 | -1,427 | 154 |
Net cash provided by (used in) operating activities | 87,521 | -3,864 | 17,121 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -93,868 | -49,058 | -25,593 |
Purchase of trademarks and other intangible assets | ' | -310 | ' |
Net cash used in investing activities | -93,868 | -49,368 | -25,593 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Gross borrowings under revolving line of credit | 1,670,876 | 1,344,468 | 1,007,330 |
Gross repayments under revolving line of credit | -1,667,952 | -1,369,469 | -1,011,937 |
Proceeds from issuance of term loan | ' | ' | 15,000 |
Repayment of term loan | ' | -15,000 | ' |
Debt issuance costs | ' | -426 | -2,835 |
Payments on capital leases and other long-term obligations | -2,555 | -4,214 | -4,188 |
Stock options exercised | 7,629 | ' | ' |
Excess tax benefit from exercise of stock options | 3,685 | ' | ' |
Tax withholdings related to issuance of stock-based awards | -178 | ' | ' |
Capitalization of Restoration Hardware Holdings, Inc. | ' | ' | 1 |
Proceeds from issuance of common stock-net of issuance costs | ' | 97,693 | ' |
Net cash provided by financing activities | 11,505 | 53,052 | 3,371 |
Effects of foreign currency exchange rate translation | -123 | 22 | 249 |
Net increase (decrease) in cash and cash equivalents | 5,035 | -158 | -4,852 |
Cash and cash equivalents | ' | ' | ' |
Beginning of period | 8,354 | 8,512 | 13,364 |
End of period | 13,389 | 8,354 | 8,512 |
Cash paid for interest | 5,038 | 5,382 | 3,737 |
Cash paid for taxes | 1,521 | 1,861 | 1,697 |
Non-cash transactions: | ' | ' | ' |
Property and equipment acquired under capital lease | 238 | ' | 7,770 |
Property and equipment acquired under build-to-suit | 33,494 | ' | ' |
Property and equipment additions in accounts payable | 4,204 | 3,505 | 645 |
Executive Compensation [Member] | ' | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Capital contribution | ' | ' | 6,350 |
Non-cash transactions: | ' | ' | ' |
Capital contribution | ' | ' | 6,350 |
Management Fee [Member] | ' | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Capital contribution | ' | ' | 6,000 |
Non-cash transactions: | ' | ' | ' |
Capital contribution | ' | ' | $6,000 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Feb. 01, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Business | ' |
NOTE 1—NATURE OF BUSINESS | |
Restoration Hardware Holdings, Inc., a Delaware corporation, together with its subsidiaries (collectively, the “Company”), is a luxury home furnishings retailer that offers a growing number of categories including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware and children’s furnishings. These products are sold through the Company’s stores, catalogs and websites. As of February 1, 2014, the Company operated a total of 70 retail stores and 17 outlet stores in 29 states, the District of Columbia and Canada, and had sourcing operations in Shanghai and Hong Kong. |
Organization
Organization | 12 Months Ended |
Feb. 01, 2014 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
NOTE 2—ORGANIZATION | |
The Company was formed on August 18, 2011 and capitalized on September 2, 2011 as a holding company for the purposes of facilitating an initial public offering of common equity and was at such time a direct subsidiary of Home Holdings, LLC, a Delaware limited liability company (“Home Holdings”). | |
On November 1, 2012, the Company acquired all of the outstanding shares of capital stock of Restoration Hardware, Inc., a Delaware corporation, and Restoration Hardware, Inc. became a direct, wholly owned subsidiary of the Company. Restoration Hardware, Inc. was a direct, wholly owned subsidiary of Home Holdings LLC, a Delaware limited liability company (“Home Holdings”) prior to the Company’s initial public offering. Outstanding units issued by Home Holdings under its equity compensation plan, referred to as the Team Resto Ownership Plan, were replaced with common stock of the Company at the time of its initial public offering. These transactions are referred to as the “Reorganization.” As a result of these transactions, as of November 1, 2012, 32,188,891 shares of the Company’s common stock were outstanding. | |
On November 7, 2012, the Company completed its initial public offering. In connection with its initial public offering, the Company issued and sold 4,782,609 shares of its common stock at a price of $24.00 per share. In addition, certain of the Company’s stockholders sold an aggregate of 381,723 shares of common stock held by them in the initial public offering. Further, certain stockholders sold an additional aggregate of 774,650 shares of common stock held by them pursuant to the exercise by the offering’s underwriters of their option to purchase additional shares. The Company did not receive any proceeds from the sale of stock by its stockholders. | |
Prior to the Reorganization, Restoration Hardware Holdings, Inc. had not engaged in any business or other activities except in connection with its formation and the Reorganization. Accordingly, all financial and other information herein relating to periods prior to the completion of the Reorganization is that of Restoration Hardware, Inc. | |
On May 20, 2013, the Company completed a follow-on offering of 9,974,985 shares of common stock at an offering price of $50.00 per share, which included 1,301,085 shares sold in connection with the full exercise of the option to purchase additional shares granted to the underwriters. All of the shares sold in the offering were sold by existing stockholders of the Company. No shares were sold by the Company in the offering, and, as such, the Company did not receive any of the proceeds from such sales. Effective May 20, 2013, the Company ceased being a subsidiary of Home Holdings, as a result of the sale, by Home Holdings, of a portion of its shares of the Company’s voting common stock, which resulted in Home Holdings owning less than a majority of the Company’s voting common stock after such sale. | |
On July 17, 2013, the Company completed a second follow-on offering of 8,000,000 shares of common stock at an offering price of $70.00 per share. On August 14, 2013, in connection with the full exercise of the option to purchase additional shares granted to the underwriters, an additional 1,200,000 shares were sold at a price of $70.00 per share. All of the shares sold in the offering were sold by existing stockholders of the Company. No shares were sold by the Company in the offering, and, as such, the Company did not receive any of the proceeds from such sales. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Significant Accounting Policies | ' | ||||||||||||
NOTE 3—SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Basis of Presentation | |||||||||||||
These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process. | |||||||||||||
Fiscal Years | |||||||||||||
The Company’s fiscal year ends on the Saturday closest to January 31. As a result, the Company’s fiscal year may include 53 weeks. The fiscal years ended February 1, 2014 (“fiscal 2013”) and January 28, 2012 (“fiscal 2011”) each consisted of 52 weeks. The fiscal year ended February 2, 2013 (“fiscal 2012”) consisted of 53 weeks. | |||||||||||||
Use of Accounting Estimates | |||||||||||||
The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material to the consolidated financial statements. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. | |||||||||||||
Concentration of Credit Risk | |||||||||||||
The Company maintains its cash and cash equivalent accounts in financial institutions in both U.S. dollar and Canadian dollar denominations. Accounts at the U.S. institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 and accounts at the Canadian institutions are insured by the Canada Deposit Insurance Corporation (“CDIC”) up to $100,000 Canadian dollars. As of February 1, 2014, the Company had four U.S. bank account balances that were in excess of the FDIC insurance limit and three Canadian bank account balance that was in excess of the CIDC insurance limit. The Company performs ongoing evaluations of these institutions to limit its concentration of credit risk. | |||||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable consist primarily of receivables from the Company’s credit card processors for sales transactions and tenant improvement allowances from the Company’s landlords in connection with new leases. Accounts receivable is presented net of allowance for doubtful accounts, which is recorded on a specific identification basis. The allowance for doubtful accounts was $1.6 million and $0.8 million as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||||
Merchandise Inventories | |||||||||||||
The Company’s merchandise inventories are comprised of finished goods and are carried at the lower of cost or market, with cost determined on a weighted-average cost method and market determined based on the estimated net realizable value. To determine if the value of inventory should be marked down below original cost, the Company considers current and anticipated demand, customer preference and the merchandise age. The inventory value is adjusted periodically to reflect current market conditions, which requires management judgments that may significantly affect the ending inventory valuation, as well as gross margin. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory and lower of cost or market reserves) and estimates of inventory shrinkage. The Company adjusts its inventory for obsolescence based on historical trends, aging reports, specific identification and its estimates of future retail sales prices. | |||||||||||||
Reserves for shrinkage are estimated and recorded throughout the period as a percentage of net sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts and the results of the Company’s annual physical inventory count. Actual inventory shrinkage and obsolescence can vary from estimates due to factors including the mix of the Company’s inventory (which ranges from large furniture to decorative accessories) and execution against loss prevention initiatives in the Company’s stores, distribution centers, off-site storage locations and with its third-party transportation providers. | |||||||||||||
Due to these factors, the Company’s obsolescence and shrinkage reserves contain uncertainties. Both estimates have calculations that require management to make assumptions and to apply judgment regarding a number of factors, including market conditions, the selling environment, historical results and current inventory trends. If actual obsolescence or shrinkage estimates change from the Company’s original estimates, the Company will adjust its inventory reserves accordingly throughout the period. Management does not believe that changes in the assumptions used in these estimates would have a significant effect on the Company’s net income (loss) or inventory balances. The Company’s inventory reserve balances were $9.3 million and $5.9 million as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||||
Advertising Expenses | |||||||||||||
Advertising expenses primarily represent the costs associated with the Company’s catalog mailings, as well as print and website marketing. Total advertising costs, recorded in selling, general and administrative expenses, were $83.0 million, $98.8 million, and $66.9 million in fiscal 2013, fiscal 2012, and fiscal 2011, respectively. | |||||||||||||
Capitalized Catalog Costs | |||||||||||||
Capitalized catalog costs consist primarily of third-party incremental direct costs to prepare, print and distribute Source Books. Such costs are capitalized and amortized over their expected period of future benefit. Such amortization is based upon the ratio of actual revenues to the total of actual and estimated future revenues on an individual Source Book basis. Estimated future revenues are based upon various factors such as the total number of Source Books and pages circulated, the probability and magnitude of consumer response and the merchandise assortment offered. Each Source Book is generally fully amortized within a twelve-month period and the majority of the amortization occurs within the first six to ten months, with the exception of the Holiday Source Books, which are generally fully amortized within a four-month period. Capitalized catalog costs are evaluated for realizability on a regular basis by comparing the carrying amount associated with each Source Book to the estimated probable remaining future sales associated with that Source Book. | |||||||||||||
The Company’s catalog amortization calculation requires management to make assumptions and to apply judgment regarding a number of factors, including market conditions, the selling environment and the probability and magnitude of consumer response to certain Source Books and merchandise assortment offered. If actual revenues associated with the Company’s Source Books differ from its original estimates, the Company adjusts its catalog amortization schedules accordingly. Management does not believe that changes in the assumptions used in these estimates would have a significant effect on the Company’s net income as changes in the assumptions do not impact the total cost of the Source Books to be amortized. However, changes in the assumptions could impact the timing of the future catalog amortization expense recorded to the consolidated statement of operations. | |||||||||||||
During fiscal 2013, the Company modified its Source Book strategy and eliminated its Fall Source Book. The Company therefore made changes to its assumptions regarding the estimated future revenues and the period over which such revenues would be earned related to its Spring 2013 Source Books. As a result, the amortization period for the Spring 2013 Source Books increased from an eight- to nine-month period to a twelve-month period. | |||||||||||||
The Company had $49.3 million and $43.8 million of capitalized catalog costs that are included in prepaid expense and other current assets on the consolidated balance sheets as of February 1, 2014, and February 2, 2013, respectively. | |||||||||||||
Website and Print Advertising | |||||||||||||
Website and print advertising expenses, which include e-commerce advertising, web creative content and direct marketing activities such as print media, radio and other media advertising, are expensed as incurred or upon the release of the content or the initial advertisement. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment is recorded at cost, net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method, generally using the following useful lives: | |||||||||||||
Category of Property and Equipment | Useful Life | ||||||||||||
Building | 40 years | ||||||||||||
Furniture, fixtures and equipment | 3 to 7 years | ||||||||||||
Machinery and equipment | 3 to 5 years | ||||||||||||
Computer software | 3 years | ||||||||||||
The cost of leasehold improvements and lease acquisitions is amortized over the lesser of the useful life of the asset or the applicable lease term. | |||||||||||||
Interest is capitalized on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. | |||||||||||||
Assets acquired under non-cancelable leases, which meet the criteria of capital leases, are capitalized in property and equipment and amortized over the lesser of the useful life of the asset or the applicable lease term. | |||||||||||||
The land purchased by the Company is recorded at cost and is a non-depreciable asset. | |||||||||||||
Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. | |||||||||||||
Intangible Assets | |||||||||||||
Intangible assets reflect the value assigned to trademarks, core technologies and the fair market value of the Company’s leases. Core technologies and the fair market value of the leases are amortized over their useful life. The Company does not amortize trademarks as the Company defines the life of the asset as indefinite. | |||||||||||||
Impairment | |||||||||||||
Goodwill | |||||||||||||
The Company evaluates goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset; general economic conditions, such as increasing Treasury rates or unexpected changes in GDP growth; a change in the Company’s market share; budget-to-actual performance and consistency of operating margins and capital expenditures; a product recall or an adverse action or assessment by a regulator; or changes in management or key personnel. If an impairment indicator exists, the Company tests the intangible asset for recoverability. The Company has identified only one single reporting unit. The Company selected the fourth fiscal quarter to perform its annual goodwill impairment testing. | |||||||||||||
The Company qualitatively assesses goodwill impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. During fiscal 2013, the Company performed a qualitative analysis examining key events and circumstances affecting fair value and determined it is more likely than not that the reporting unit’s fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s goodwill for impairment. | |||||||||||||
If goodwill is not qualitatively assessed or if goodwill is qualitatively assessed and it is determined it is not more likely than not that the reporting unit’s fair value is greater than its carrying amount, a two-step quantitative approach is used. In the first step, the Company compares the fair value of the reporting unit, generally defined as the same level as or one level below an operating segment, to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. | |||||||||||||
The Company’s tests for impairment of goodwill resulted in a determination that the fair value of the Company substantially exceeded the carrying value of the Company’s net assets in fiscal 2013 and fiscal 2012. No impairment to goodwill has been recorded in any period. | |||||||||||||
Trademarks | |||||||||||||
The Company annually evaluates whether trademarks continue to have an indefinite life. Trademarks are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. | |||||||||||||
The Company qualitatively assesses indefinite-lived intangible asset impairment to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. During fiscal 2013, the Company performed a qualitative analysis examining key events and circumstances affecting fair value and determined it is more likely than not that the asset’s fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s trademarks for impairment. | |||||||||||||
If trademarks are not qualitatively assessed or if trademarks are qualitatively assessed and it is determined it is not more likely than not that the asset’s fair value is greater than its carrying amount, an impairment review is performed by comparing the carrying value to the estimated fair value, determined using a discounted cash flow methodology. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, management’s plans for future operations, brand initiatives, recent operating results and projected future cash flows. | |||||||||||||
The Company tested the trademarks for impairment and concluded that there has been no impairment in any period. | |||||||||||||
Long-Lived Assets | |||||||||||||
Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. | |||||||||||||
The Company evaluates long-lived tangible assets at an individual store level, which is the lowest level at which independent cash flows can be identified. The Company evaluates corporate assets or other long-lived assets that are not store-specific at the consolidated level. | |||||||||||||
Since there is typically no active market for the Company’s long-lived tangible assets, the Company estimates fair values based on the expected future cash flows. The Company estimates future cash flows based on store-level historical results, current trends, and operating and cash flow projections. The Company’s estimates are subject to uncertainty and may be affected by a number of factors outside its control, including general economic conditions and the competitive environment. While the Company believes its estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring the Company to revise its estimates. | |||||||||||||
The Company recorded an impairment charge in fiscal 2013 of $1.4 million related to the underperformance of a stand-alone Baby & Child Gallery, which is included in selling, general and administrative expenses on the consolidated statements of operations. The Company did not record an impairment charge on long-lived assets in fiscal 2012 or fiscal 2011. | |||||||||||||
Lease Accounting | |||||||||||||
The Company leases stores, distribution facilities, office space and certain machinery and equipment under various leases. The Company classifies leases at the inception of the lease as a build-to-suit lease, a capital lease or an operating lease. | |||||||||||||
The Company is sometimes involved in the construction of leased stores. As a result of this involvement, the Company is deemed the “owner” for accounting purposes during the construction period, and is required to capitalize the construction costs on its consolidated balance sheets (referred to as build-to-suit leases). The Company establishes assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. Upon completion of the project, the Company performs a sale-leaseback analysis pursuant to Accounting Standards Codification (“ASC”) 840 – Leases, to determine if it can remove the assets from its consolidated balance sheets. In many of its leases, the Company is reimbursed a portion of the construction costs via adjusted rental payments and/or cash payments or has terms which fix the rental payments for a significant percentage of the leased asset’s economic life. These items generally are considered “continuing involvement,” which precludes the Company from derecognizing the assets from its consolidated balance sheets when construction is complete. In conjunction with these leases, the Company also records financing obligations equal to the cash proceeds or fair market value of the assets received from the landlord. At the end of the lease term, including exercise of any renewal options, the net remaining financing obligation over the net carrying value of the fixed asset will be recognized as a non-cash gain on sale of the property. The Company does not report rent expense for the properties which are owned for accounting purposes. Rather, rental payments under the lease are recognized as a reduction of the financing obligation and interest expense. | |||||||||||||
During fiscal 2013, the Company determined that lease agreements for four future Full Line Design Gallery locations met the capitalization criteria under ASC 840. As a result, the Company recorded approximately $33 million related to build-to-suit transactions, which is recorded within property and equipment, and other long-term obligations on the consolidated balance sheets. | |||||||||||||
In a capital or an operating lease, the expected lease term begins with the date that the Company takes possession of the equipment or the leased space for construction and other purposes. The expected lease term may also include the exercise of renewal options if the exercise of the option is determined to be reasonably assured. The expected term is also used in the determination of whether a store is a capital or operating lease. | |||||||||||||
Some of the Company’s equipment is held under capital leases. These assets are included in property and equipment and depreciated over the term of the lease. The Company does not report rent expense for capital leases. Rather, rental payments under the lease are recognized as a reduction of the capital lease obligation and interest expense. | |||||||||||||
All other leases are considered operating leases in accordance with ASC 840. Assets subject to an operating lease and the related lease payments are not recorded on the consolidated balance sheets. For leases that contain lease incentives, premiums and minimum rental expenses, the Company recognizes rental expense on a straight-line basis over the lease term, including the construction period. The Company records rental expense during the construction period. Tenant improvement allowances received from landlords are recorded as deferred rent, reported as a long-term liability on the consolidated balance sheets, and are amortized on a straight-line basis over the lease term, including the construction period. | |||||||||||||
Debt Issuance Costs | |||||||||||||
The Company capitalizes debt issuance costs related to its revolving line of credit. Capitalized costs related to the revolving line of credit are included in other assets on the consolidated balance sheets as deferred financing fees. Deferred financing fees are amortized utilizing the straight-line method and are included in interest expense on the consolidated statements of operations. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenues and the related cost of goods sold when merchandise is received by its customers. Revenues from “cash-and-carry” store sales are recognized at the point of sale in the store. Revenues from direct-to-customer and home-delivered sales are recognized when the merchandise is delivered to the customer. Discounts provided to customers are accounted for as a reduction of sales. | |||||||||||||
The Company recognizes shipping and handling fees as revenue when the merchandise is received by its customers. Costs of shipping and handling are included in cost of goods sold. | |||||||||||||
Sales tax collected is not recognized as revenue but is included in accounts payable and accrued expenses on the consolidated balance sheets as it is ultimately remitted to governmental authorities. | |||||||||||||
The Company reserves for projected merchandise returns. Merchandise returns are often resalable merchandise and are refunded by issuing the same payment tender of the original purchase. Merchandise exchanges of the same product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. | |||||||||||||
The Company’s customers may return purchased items for a refund. The Company provides an allowance for sales returns, net of cost of goods sold, based on historical return rates. A summary of the allowance for sales returns, presented net of cost of goods sold, is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 5,206 | $ | 3,181 | $ | 3,403 | |||||||
Provision for sales returns | 165,470 | 134,909 | 102,875 | ||||||||||
Actual sales returns | (158,534 | ) | (132,884 | ) | (103,097 | ) | |||||||
Balance at end of fiscal year | $ | 12,142 | $ | 5,206 | $ | 3,181 | |||||||
Deferred Revenue and Customer Deposits | |||||||||||||
Deferred revenue represents the revenue associated with orders that have been shipped by the Company to its customers but have not yet been received by the customer. As the Company recognizes revenue when the merchandise is received by its customers, it is included as deferred revenue on the consolidated balance sheets while in-transit. | |||||||||||||
Customer deposits represent payments made by customers on custom orders. At the time of purchase the Company collects deposits for all custom orders equivalent to 50% of the customer purchase price. Custom order deposits are recognized as revenue when the merchandise is received by the customer or at the time of cancellation of the order by the customer. | |||||||||||||
Gift Certificates and Merchandise Credits | |||||||||||||
The Company sells gift certificates and issues merchandise credits to its customers in its stores and through its websites and product catalogs. Such gift certificates and merchandise credits do not have expiration dates. Revenue associated with gift certificates and merchandise credits is deferred until either (i) redemption of the gift certificate and merchandise credits or (ii) when the likelihood of redemption is remote and there exists no legal obligation to remit the value of unredeemed gift certificates or merchandise credits to the relevant jurisdictions (breakage). The breakage rate is based on monitoring of certificates issued, actual certificate redemptions and the Company’s analysis of when it believes it is remote that redemptions will occur. | |||||||||||||
Redeemed gift certificates and merchandise credits are recorded in net revenues. Breakage resulted in a reduction of selling, general and administrative expenses on the consolidated statements of operations of $2.9 million, $1.8 million, and $3.2 million in fiscal 2013, fiscal 2012, and fiscal 2011, respectively. | |||||||||||||
Self Insurance | |||||||||||||
The Company maintains insurance coverage for significant exposures, as well as those risks that, by law, must be insured. In the case of the Company’s health care coverage for employees, the Company has a managed self insurance program related to claims filed. Expenses related to this self insured program are computed on an actuarial basis, based on claims experience, regulatory requirements, an estimate of claims incurred but not yet reported (“IBNR”) and other relevant factors. The projections involved in this process are subject to uncertainty related to the timing and amount of claims filed, levels of IBNR, fluctuations in health care costs and changes to regulatory requirements. The Company had liabilities of $1.7 million related to health care coverage as of both February 1, 2014 and February 2, 2013. | |||||||||||||
The Company is self-insured for all workers’ compensation claims related to incidents incurred after November 1, 2013 and prior to November 1, 2007. The Company had liabilities of $1.7 million and $1.0 million related to workers’ compensation claims as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company recognizes the fair value of stock-based compensation in its consolidated financial statements as compensation expense over the requisite service period. In addition, excess tax benefits related to stock-based compensation awards are reflected as financing cash flows. For service-only awards, compensation expense is recognized on a straight-line basis, net of forfeitures, over the requisite service period for the fair value of awards that actually vest. Fair value for restricted stock units is valued using the closing price of the Company’s stock on the date of grant. The fair value of each option award granted under the Company’s award plans subsequent to its initial public offering is estimated on the date of grant using a Black-Scholes Merton option pricing model with the following assumptions: | |||||||||||||
• | Expected volatility—Based on the lack of historical data for its own shares, the Company bases its expected volatility on a representative peer group that takes into account industry, market capitalization, stage of life cycle and capital structure. | ||||||||||||
• | Expected term—Represents the period of time that options granted are expected to be outstanding. The Company elected to calculate the expected term of the option awards using the “simplified method.” This election was made based on the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. Under the “simplified” calculation method, the expected term is calculated as an average of the vesting period and the contractual life of the options. | ||||||||||||
• | Risk-free interest rate—Based on the U.S. Treasury zero-coupon bond rate with a remaining term approximate of the expected term of the option. | ||||||||||||
• | Dividend yield—As the Company has not paid dividends, nor does it currently plan to pay dividends in the future, the assumed dividend yield is zero. | ||||||||||||
Prior to the Reorganization, Home Holdings had granted performance-based units that vested and became deliverable upon achievement or satisfaction of performance conditions specified in the performance agreement or upon the return on investment attained by certain of the equity investors in Home Holdings at defined liquidity events, including an initial public offering or certain sale or merger transactions. The Company estimated the fair value of performance-based units awarded to employees at the grant date based on the fair value of the Company on such date. The Company also considered the probability of achieving the established performance targets in determining its stock-based compensation with respect to these awards. The Company recognizes compensation cost over the performance period. When the performance is related to a specific event occurring in the future, the Company recognizes the full expense at the time of the event. At the time of the Reorganization, these performance-based units were replaced with shares of the Company’s common stock with substantially similar restrictions, terms and conditions. Refer to Note 13—Stock-Based Compensation. | |||||||||||||
Cost of Goods Sold | |||||||||||||
Cost of goods sold includes, but is not limited to, the direct cost of purchased merchandise, inventory shrinkage, inventory reserves and write-downs, inbound freight, all freight costs to get merchandise to the Company’s stores, design and buying costs, occupancy costs related to store operations, such as rent, property tax and common area maintenance, depreciation and amortization, and all logistics costs associated with shipping product to customers. | |||||||||||||
Selling, General and Administrative Expenses | |||||||||||||
Selling, general and administrative expenses include all operating costs not included in cost of goods sold. These expenses include payroll and payroll related expenses, store expenses other than occupancy and expenses related to many of the Company’s operations at its headquarters, including utilities, depreciation and amortization, credit card fees and marketing expense, which primarily includes catalog production, mailing and print advertising costs. All store pre-opening costs are included in selling, general and administrative expenses and are expensed as incurred. | |||||||||||||
Selling, general and administrative expenses for fiscal 2013 include a $33.7 million non-cash compensation charged related to the one-time, fully vested option granted to Gary Friedman upon his reappointment as Chairman and Co-Chief Executive Officer in July 2013, a $29.5 million non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman and $2.9 million of costs incurred in connection with the Company’s follow-on offerings in May 2013 and July 2013. | |||||||||||||
Selling, general and administrative expenses for fiscal 2012 include a $92.0 million non-cash compensation charge related to equity grants at the time of the Reorganization, as well as a non-cash compensation charge of $23.1 million related to the performance-based vesting of certain shares granted to the Company’s then Co-Chief Executive Officers, Mr. Friedman and Carlos Alberini. Costs incurred in connection with the initial public offering, including a fee of $7.0 million to Catterton Management Company, LLC (“Catterton”), Tower Three Partners LLC (“Tower Three”) and GJK Capital Advisors, LLC (“Glenhill”) in accordance with the Company’s management services agreement, payments of $2.2 million to certain former executives and bonus payments to employees of $1.3 million, were included in selling, general and administrative expenses in fiscal 2012. In addition, legal and other professional fees of $4.8 million, incurred in connection with the investigation conducted by the special committee of the board of directors relating to Mr. Friedman and the Company’s subsequent remedial actions, are included in fiscal 2012 selling, general and administrative expenses. | |||||||||||||
Earnings (Loss) Per Share | |||||||||||||
Basic earnings (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potential dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, the Company generally takes into account all expected future events then known to it, other than changes in the tax law or rates which have not yet been enacted and which are not permitted to be considered. Accordingly, the Company may record a valuation allowance to reduce its net deferred tax assets to the amount that is more-likely-than-not to be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based upon management’s best estimate of the recoverability of the Company’s net deferred tax assets. Future taxable income and ongoing prudent and feasible tax planning are considered in determining the amount of the valuation allowance, and the amount of the allowance is subject to adjustment in the future. Specifically, in the event the Company were to determine that it is not more-likely-than-not able to realize its net deferred tax assets in the future, an adjustment to the valuation allowance would decrease income in the period such determination is made. This allowance does not alter the Company’s ability to utilize the underlying tax net operating loss and credit carryforwards in the future, the utilization of which is limited to achieving future taxable income. | |||||||||||||
The accounting standard for uncertainty in income taxes prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Differences between tax positions taken in a tax return and amounts recognized in the financial statements generally result in an increase in liability for income taxes payable or a reduction of an income tax refund receivable, or a reduction in a deferred tax asset or an increase in a deferred tax liability, or both. The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The carrying values of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the revolving line of credit approximate their estimated fair values. | |||||||||||||
The degree of judgment used in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established and the characteristics specific to the transaction. Financial instruments with readily available active quoted prices for which fair value can be measured generally will have a higher degree of pricing observability and a lesser degree of judgment used in measuring fair value. Conversely, financial instruments rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment used in measuring fair value. | |||||||||||||
The Company’s financial assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: | |||||||||||||
• | Level 1—Quoted prices are available in active markets for identical investments as of the reporting date. | ||||||||||||
• | Level 2—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. | ||||||||||||
• | Level 3—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs used in the determination of fair value require significant management judgment or estimation. | ||||||||||||
The Company’s financial assets and liabilities were classified as Level 1 as of February 1, 2014, and February 2, 2013. | |||||||||||||
Comprehensive Income (Loss) | |||||||||||||
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which consists of foreign currency translation adjustments. | |||||||||||||
Foreign Currency Translation | |||||||||||||
Local currencies are generally considered the functional currencies outside the United States of America. Assets and liabilities denominated in non-U.S. currencies are translated at the rate of exchange prevailing on the date of the consolidated balance sheets and revenues and expenses are translated at average rates of exchange for the period. The related translation gains (losses) are reflected in the accumulated other comprehensive income (loss) section of the consolidated statements of stockholders’ equity. Foreign currency gains (losses) resulting from foreign currency transactions are included in selling, general and administrative expenses on the consolidated statements of operations and have not been material in all periods presented. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
Accounting for Leases | |||||||||||||
The Financial Accounting Standards Board (“FASB”) is currently working on amendments to existing accounting standards governing a number of areas including, but not limited to, accounting for leases. In May 2013, the FASB issued a new exposure draft, Leases (the “Exposure Draft”), which would replace the existing guidance in ASC 840. Under the Exposure Draft, among other changes in practice, a lessee’s rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. Other significant provisions of the Exposure Draft include (i) defining the “lease term” to include the noncancellable period together with periods for which there is a significant economic incentive for the lessee to extend or not terminate the lease; (ii) defining the initial lease liability to be recorded on the balance sheet to contemplate only those variable lease payments that depend on an index or that are in substance “fixed”; and (iii) a dual approach for determining whether lease expense is recognized on a straight-line or accelerated basis, depending on whether the lessee is expected to consume more than an insignificant portion of the leased asset’s economic benefits. The comment period for the Exposure Draft ended on September 13, 2013. If and when effective, this Exposure Draft will likely have a significant impact on the Company’s consolidated financial statements. However, as the standard-setting process is still ongoing, the Company is unable to determine the impact this proposed change in accounting standards will have on its consolidated financial statements. | |||||||||||||
Presentation of Unrecognized Tax Benefits | |||||||||||||
In July 2013, the FASB issued an Accounting Standards Update, which requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This guidance is effective for annual and interim reporting periods beginning after December 15, 2013, with early adoption permitted. The Company believes the adoption of this pronouncement will not have a material impact on its consolidated financial statements. |
Prepaid_Expense_and_Other_Curr
Prepaid Expense and Other Current Assets | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Prepaid Expense and Other Current Assets | ' | ||||||||
NOTE 4—PREPAID EXPENSE AND OTHER CURRENT ASSETS | |||||||||
Prepaid expense and other current assets consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Capitalized catalog costs | $ | 49,274 | $ | 43,828 | |||||
Vendor deposits | 36,694 | 20,383 | |||||||
Prepaid expense and other current assets | 17,185 | 12,818 | |||||||
Total prepaid expense and other current assets | $ | 103,153 | $ | 77,029 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
NOTE 5—PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consists of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Leasehold improvements (1) | $ | 222,831 | $ | 155,338 | |||||
Computer software | 50,005 | 33,459 | |||||||
Furniture, fixtures and equipment | 35,419 | 27,076 | |||||||
Machinery and equipment | 11,374 | 8,866 | |||||||
Land | 5,396 | 2,388 | |||||||
Building | 2,205 | 2,205 | |||||||
Build-to-suit property (2) | 33,496 | — | |||||||
Equipment under capital leases (3) | 6,222 | 8,879 | |||||||
Total property and equipment | 366,948 | 238,211 | |||||||
Less—accumulated depreciation and amortization | (152,039 | ) | (126,805 | ) | |||||
Total property and equipment—net | $ | 214,909 | $ | 111,406 | |||||
-1 | Leasehold improvements include construction in progress of $35.2 million and $25.9 million as of February 1, 2014, and February 2, 2013, respectively. | ||||||||
-2 | The Company capitalizes assets and records a corresponding long-term liability for build-to-suit lease agreements where it is considered the owner, for accounting purposes, during the construction period. For buildings under build-to-suit lease arrangements where the Company has taken occupancy and which do not qualify for sales recognition under the sale-leaseback accounting guidance, the Company has determined that it continues to be deemed the owner of these buildings. This is principally due to the Company’s significant investment in tenant improvements. As a result, the buildings are depreciated over the shorter of their useful lives or the related leases’ terms. | ||||||||
-3 | Accumulated depreciation and amortization include accumulated amortization related to equipment under capital leases of $6.0 million and $6.8 million as of February 1, 2014, and February 2, 2013, respectively. | ||||||||
The Company recorded depreciation expense of $26.5 million, $24.3 million, and $26.2 million in fiscal 2013, fiscal 2012, and fiscal 2011, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||
NOTE 6—GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||
The following sets forth the goodwill and intangible assets as of February 1, 2014 (dollar amounts in thousands): | |||||||||||||||||||||
Gross | Accumulated | Foreign | Net Book | Useful | |||||||||||||||||
Carrying | Amortization | Currency | Value | Life | |||||||||||||||||
Amount | Translation | ||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||
Core technologies | $ | 6,580 | $ | (6,580 | ) | $ | — | $ | — | 5 years | |||||||||||
Fair value of leases | |||||||||||||||||||||
Fair market write-up | 10,443 | (9,187 | ) | 42 | 1,298 | (2 | ) | ||||||||||||||
Fair market write-down | (2,591 | ) | 2,072 | — | (519 | )(1) | (2 | ) | |||||||||||||
Total intangible assets subject to amortization | 14,432 | (13,695 | ) | 42 | 779 | ||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||
Goodwill | 122,285 | — | 139 | 122,424 | |||||||||||||||||
Trademarks and domain names | 47,410 | — | — | 47,410 | |||||||||||||||||
Total intangible assets | $ | 184,127 | $ | (13,695 | ) | $ | 181 | $ | 170,613 | ||||||||||||
-1 | The fair market write-down of leases is included in other long-term obligations on the consolidated balance sheets. | ||||||||||||||||||||
-2 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||||||
The following sets forth the goodwill and intangible assets as of February 2, 2013 (dollar amounts in thousands): | |||||||||||||||||||||
Gross | Accumulated | Foreign | Net Book | Useful | |||||||||||||||||
Carrying | Amortization | Currency | Value | Life | |||||||||||||||||
Amount | Translation | ||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||
Core technologies | $ | 6,580 | $ | (6,141 | ) | $ | — | $ | 439 | 5 years | |||||||||||
Fair value of leases | |||||||||||||||||||||
Fair market write-up | 10,737 | (8,511 | ) | 48 | 2,274 | (2 | ) | ||||||||||||||
Fair market write-down | (2,591 | ) | 1,789 | — | (802 | )(1) | (2 | ) | |||||||||||||
Total intangible assets subject to amortization | 14,726 | (12,863 | ) | 48 | 1,911 | ||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||
Goodwill | 122,285 | — | 316 | 122,601 | |||||||||||||||||
Trademarks and domain names | 47,410 | — | — | 47,410 | |||||||||||||||||
Total intangible assets | $ | 184,421 | $ | (12,863 | ) | $ | 364 | $ | 171,922 | ||||||||||||
-1 | The fair market write-down of leases is included in other long-term obligations on the consolidated balance sheets. | ||||||||||||||||||||
-2 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||||||
The Company recorded amortization expense related to intangible assets of $1.1 million, $2.4 million, and $2.8 million in fiscal 2013, fiscal 2012, and fiscal 2011, respectively. | |||||||||||||||||||||
The following table sets forth the remaining amortization of the intangible assets based on a straight-line method of amortization over the respective useful lives as of February 1, 2014 (in thousands): | |||||||||||||||||||||
2014 | $ | 608 | |||||||||||||||||||
2015 | 96 | ||||||||||||||||||||
2016 | 56 | ||||||||||||||||||||
2017 | 19 | ||||||||||||||||||||
Total amortization | $ | 779 | |||||||||||||||||||
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accounts Payable, Accrued Expenses and Other Current Liabilities | ' | ||||||||
NOTE 7—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||||
Accounts payable and accrued expenses consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 116,306 | $ | 81,608 | |||||
Accrued compensation | 29,498 | 16,621 | |||||||
Accrued freight and duty | 21,309 | 17,639 | |||||||
Accrued sales taxes | 13,995 | 12,783 | |||||||
Accrued occupancy | 6,306 | 5,842 | |||||||
Accrued catalog costs | 7,663 | 6,906 | |||||||
Accrued professional fees | 3,119 | 2,114 | |||||||
Other accrued expenses | 8,582 | 1,840 | |||||||
Total accounts payable and accrued expenses | $ | 206,778 | $ | 145,353 | |||||
Accounts payable included negative cash balances due to outstanding checks of $25.5 million and $28.1 million as of February 1, 2014, and February 2, 2013, respectively. | |||||||||
Other current liabilities consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Federal and state tax payable | $ | 22,254 | $ | 395 | |||||
Unredeemed gift certificate and merchandise credit liability | 18,830 | 18,435 | |||||||
Allowance for sales returns | 12,142 | 5,206 | |||||||
Capital lease obligation—current | 1,807 | 2,925 | |||||||
Other liabilities | 6,565 | 5,467 | |||||||
Total other current liabilities | $ | 61,598 | $ | 32,428 | |||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Long-Term Liabilities | ' | ||||||||
NOTE 8—OTHER LONG-TERM LIABILITIES | |||||||||
Other long-term liabilities consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Financing obligations under build-to-suit transactions | $ | 33,165 | $ | — | |||||
Long-term notes payable for share repurchases | 2,710 | — | |||||||
Unrecognized tax benefits | 1,739 | 2,311 | |||||||
Other long-term liabilities | 1,617 | 2,982 | |||||||
Total other long-term liabilities | $ | 39,231 | $ | 5,293 | |||||
Financing obligations under build-to-suit transactions relate to lease agreements where the Company is considered the owner, for accounting purposes, during the construction period. For these lease agreements, the Company capitalizes assets, which are included in property and equipment on the consolidated balance sheets, and records a corresponding long-term liability. For buildings under build-to-suit lease arrangements where the Company has taken occupancy and which do not qualify for sales recognition under the sale-leaseback accounting guidance, the Company has determined that it continues to be deemed the owner of these buildings. This is principally due to the Company’s significant investment in tenant improvements. |
Revolving_Line_of_Credit
Revolving Line of Credit | 12 Months Ended |
Feb. 01, 2014 | |
Debt Disclosure [Abstract] | ' |
Revolving Line of Credit | ' |
NOTE 9—REVOLVING LINE OF CREDIT | |
In August 2011, Restoration Hardware, Inc., along with its Canadian subsidiary, Restoration Hardware Canada, Inc., entered into a credit agreement with Bank of America, N.A., as administrative agent, and certain other lenders. This credit agreement modified a previous facility under which Restoration Hardware, Inc. had a revolving line of credit for up to $190.0 million. Under the credit agreement, which has a maturity date of August 3, 2016, Restoration Hardware, Inc. has a revolving line of credit available of up to $417.5 million (following Restoration Hardware, Inc.’s exercise of the commitment increase option on November 1, 2012, as described below), of which $10.0 million is available to Restoration Hardware Canada, Inc. The credit agreement was further amended in January 2012 to add a $15.0 million term loan facility with a maturity date of July 6, 2015, which was repaid in full on November 7, 2012, as described below. | |
Under the credit agreement’s commitment increase provision, Restoration Hardware, Inc. had the option to increase the amount of the revolving line of credit by up to an additional $100.0 million, provided that, among other things, the existing lenders or additional lenders agreed to participate in the increased loan commitments under the revolving line of credit, no default under the credit agreement then existed or would result from such increase and sufficient borrowing base collateral was available to support increased loan amounts. On November 1, 2012, Restoration Hardware, Inc. increased the amount of the revolving line of credit by $100.0 million pursuant to this commitment increase provision. | |
On November 7, 2012, Restoration Hardware, Inc. made payments of $75.7 million on its revolving line of credit and repaid its outstanding term loan of $15.0 million in full. Such payments were funded from the proceeds received as a result of the Company’s initial public offering. | |
The availability of credit at any given time under the revolving line of credit is limited by reference to a borrowing base formula based upon numerous factors, including the value of eligible inventory, eligible accounts receivable, eligible real estate, and, in the case of the term loan, registered trade names and reserves established by the administrative agent. As a result of the borrowing base formula, the actual borrowing availability under the revolving line of credit could be less than the stated amount of the revolving line of credit (as reduced by the actual borrowings and outstanding letters of credit under the revolving line of credit). All obligations under the credit agreement are secured by substantially all of Restoration Hardware, Inc.’s assets, including accounts receivable, inventory, intangible assets, property, equipment, goods and fixtures. | |
Borrowings under the revolving line of credit are subject to interest, at the borrowers’ option, at either the bank’s reference rate or LIBOR (or the BA Rate or the Canadian Prime Rate, as such terms are defined in the credit agreement, for Canadian borrowings denominated in Canadian dollars or the United States Index Rate or LIBOR for Canadian borrowings denominated in United States dollars) plus an applicable margin rate, in each case. The weighted-average interest rate for the revolving line of credit was 2.80% as of February 1, 2014. | |
As of February 1, 2014, $85.4 million was outstanding under the revolving line of credit and the undrawn borrowing availability under the revolving line of credit was $261.7 million. There were $18.9 million and $19.5 million in outstanding letters of credit as of February 1, 2014, and February 2, 2013, respectively. | |
The credit agreement contains various restrictive covenants, including, among others, limitations on the ability to incur liens, make loans or other investments, incur additional debt, issue additional equity, merge or consolidate with or into another person, sell assets, pay dividends or make other distributions or enter into transactions with affiliates, along with other restrictions and limitations typical to credit agreements of this type and size. The credit agreement does not contain any significant financial or coverage ratio covenants unless the availability under the revolving line of credit is less than the greater of (i) $17.5 million and (ii) 10% of the lesser of (A) the aggregate maximum commitments under the revolving line of credit and (B) the domestic borrowing base. If the availability under the revolving line of credit is less than the foregoing amount, then Restoration Hardware, Inc. is required to maintain a consolidated fixed charge coverage ratio of at least one to one. Such ratio is approximately the ratio on the last day of each month on a trailing twelve-month basis of (a) (i) consolidated EBITDA (as defined in the agreement) minus (ii) capital expenditures, minus (iii) the income taxes paid in cash to (b) the sum of (i) debt service charges plus (ii) certain dividends and distributions paid. As of February 1, 2014, Restoration Hardware, Inc. was in compliance with all covenants, and if the availability under the revolving line of credit were less than the amount described above, Restoration Hardware, Inc. would have been in compliance with the consolidated fixed charge coverage ratio described in the previous sentence. The credit agreement requires a daily sweep of cash to prepay the loans under the credit agreement while (i) an event of default exists or (ii) the availability under the revolving line of credit for extensions of credit to Restoration Hardware, Inc. is less than the greater of (A) $20.0 million and (B) 15% of the lesser of the aggregate maximum commitments and the domestic borrowing base. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
NOTE 10—INCOME TAXES | |||||||||||||
The following is a summary of the income tax expense (benefit) (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Federal | $ | 21,593 | $ | — | $ | — | |||||||
State | 4,182 | 236 | 331 | ||||||||||
Foreign | (454 | ) | (387 | ) | 595 | ||||||||
Total current tax expense (benefit) | 25,321 | (151 | ) | 926 | |||||||||
Deferred | |||||||||||||
Federal | 6,215 | (48,745 | ) | (76 | ) | ||||||||
State | (596 | ) | (12,903 | ) | 223 | ||||||||
Foreign | (17 | ) | (224 | ) | 48 | ||||||||
Total deferred tax expense (benefit) | 5,602 | (61,872 | ) | 195 | |||||||||
Total income tax expense (benefit) | $ | 30,923 | $ | (62,023 | ) | $ | 1,121 | ||||||
A reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision at federal statutory tax rate | 35 | % | 35 | % | 34 | % | |||||||
State income taxes—net of federal tax impact | 5.8 | 0.7 | 5.6 | ||||||||||
Stock-based compensation | 21.3 | (30.0 | ) | 12.4 | |||||||||
Valuation allowance | (0.1 | ) | 76.5 | (49.4 | ) | ||||||||
Foreign income | (0.2 | ) | 0.6 | (2.0 | ) | ||||||||
Net adjustments to tax accruals and other | 1.2 | 0.1 | 4.6 | ||||||||||
Effective tax rate | 63 | % | 82.9 | % | 5.2 | % | |||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
February 1, | February 2, | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets (liabilities) | |||||||||||||
Accrued expense | $ | 22,164 | $ | 11,026 | |||||||||
State tax benefit | 428 | (931 | ) | ||||||||||
Inventory | 19,350 | 14,215 | |||||||||||
Deferred revenue | 1,891 | 20,144 | |||||||||||
Net operating loss carryforwards | — | 12,337 | |||||||||||
Construction allowance | (1,694 | ) | (1,698 | ) | |||||||||
Stock-based compensation | 1,038 | — | |||||||||||
Prepaid expense and other | (21,896 | ) | (18,056 | ) | |||||||||
Current deferred tax assets | 21,281 | 37,037 | |||||||||||
Valuation allowance | (26 | ) | (31 | ) | |||||||||
Net current deferred tax assets | 21,255 | 37,006 | |||||||||||
Non-current deferred tax assets (liabilities) | |||||||||||||
State tax benefit | (2,536 | ) | (2,040 | ) | |||||||||
Stock-based compensation | 34,005 | 21,231 | |||||||||||
Deferred lease credits | 12,884 | 9,687 | |||||||||||
Property and equipment | (12,362 | ) | (5,975 | ) | |||||||||
Net operating loss carryforwards | 884 | 262 | |||||||||||
U.S. impact of Canadian transfer pricing | 1,780 | 2,091 | |||||||||||
Trademarks | (19,327 | ) | (19,361 | ) | |||||||||
Other | 1,832 | 1,240 | |||||||||||
Non-current deferred tax assets | 17,160 | 7,135 | |||||||||||
Valuation allowance | (180 | ) | (262 | ) | |||||||||
Net non-current deferred tax assets | 16,980 | 6,873 | |||||||||||
Net deferred tax assets | $ | 38,235 | $ | 43,879 | |||||||||
A reconciliation of the valuation allowance is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 293 | $ | 57,484 | $ | 68,318 | |||||||
Charged to expense | — | (57,185 | ) | 299 | |||||||||
Net changes in deferred tax assets and liabilities | (87 | ) | (6 | ) | (11,133 | ) | |||||||
Balance at end of fiscal year | $ | 206 | $ | 293 | $ | 57,484 | |||||||
The Company has recorded deferred tax assets and liabilities based upon estimates of their realizable value, such estimates are based upon likely future tax consequences. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, the Company records a valuation allowance. | |||||||||||||
As of the end of fiscal year 2012, the Company’s U.S. operations achieved a position of cumulative profits (adjusted for permanent differences) for the most recent three-year period. The Company concluded that this record of cumulative profitability in recent years, coupled with its business plan for profitability in future periods, provided assurance that its future tax benefits more likely than not would be realized. Accordingly, in fiscal 2012, the Company released all of its U.S. valuation allowance of $57.2 million against net deferred tax assets. | |||||||||||||
As of February 1, 2014, the Company has retained a valuation allowance totaling $0.2 million against deferred tax assets for its Shanghai operations. | |||||||||||||
As of February 1, 2014, the Company had state net operating loss carryovers of $8.7 million. The state net operating loss carryovers will expire between 2014 and 2032. Internal Revenue Code Section 382 and similar state rules place a limitation on the amount of taxable income which can be offset by net operating loss carryforwards after a change in ownership (generally greater than 50% change in ownership). The Company cannot give any assurances that it will not undergo an ownership change in the future resulting in further limitations on utilization of net operating losses. | |||||||||||||
A reconciliation of the exposures related to unrecognized tax benefits is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 1,841 | $ | 2,505 | $ | 9,015 | |||||||
Gross decreases—prior period tax positions | (151 | ) | (57 | ) | — | ||||||||
Gross decreases—current period tax positions | — | — | (14 | ) | |||||||||
Consent for accounting method change | — | — | (6,496 | ) | |||||||||
Lapses in statute of limitations | (295 | ) | (607 | ) | — | ||||||||
Balance at end of fiscal year | $ | 1,395 | $ | 1,841 | $ | 2,505 | |||||||
As of February 1, 2014 and February 2, 2013, $1.4 million and $1.8 million, respectively, of the exposures related to unrecognized tax benefits would affect the effective tax rate if realized and are included in other long-term obligations on the consolidated balance sheets. These amounts are primarily associated with foreign tax exposures that would, if realized, reduce the amount of net operating losses that would ultimately be utilized. As of February 1, 2014, $0.4 million of the exposures related to unrecognized tax benefits are expected to decrease in the next 12 months due to the lapse of the statute of limitations. | |||||||||||||
Adjustments required upon adoption of accounting for uncertainty in income taxes related to deferred tax asset accounts were offset by the related valuation allowance. Future changes to the Company’s assessment of the realizability of those deferred tax assets will impact the effective tax rate. The Company accounts for interest and penalties related to exposures as a component of income tax expense. The Company has accrued $0.3 million and $0.5 million of interest associated with exposures as of February 1, 2014, and February 2, 2013, respectively. | |||||||||||||
A significant portion of the Company’s unrecognized tax benefits as of the beginning of 2011 was related to an uncertain tax position for advanced payments for the sale of gift cards. The Company filed a request to change its accounting method for advanced payments for the sale of gift cards with the IRS in fiscal 2011 and, during the fourth quarter of fiscal 2011, the IRS approved the Company’s request. This approval allowed the Company to increase its tax liability for the impact of the change over a four-year period beginning with its January 28, 2012 tax return. The Company reduced its balance of unrecognized tax benefits by $6.5 million for the impact of the approval on this uncertain tax position in fiscal 2011. | |||||||||||||
This Company is subject to tax in the United States, Canada, Shanghai and Hong Kong. The Company could be subject to United States federal and state tax examinations for years 2001 and forward by virtue of net operating loss carryforwards available from those years. There are no United States tax examinations currently in progress. The Company may also be subject to audits in Canada for years 2005 and forward. During fiscal 2012, the Canada Revenue Agency concluded, with no adjustments, its audit of Restoration Hardware Canada, Inc. for the years ended 2006 and 2007 and for the period ended June 16, 2008. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
NOTE 11—EARNINGS PER SHARE | |||||||||||||
On November 1, 2012, the Company acquired all of the outstanding shares of capital stock of Restoration Hardware, Inc. and Restoration Hardware, Inc. became a direct, wholly owned subsidiary of the Company. Outstanding units issued by Home Holdings under its equity compensation plan, referred to as the Team Resto Ownership Plan, were replaced with common stock of the Company at the time of its initial public offering. Restoration Hardware, Inc. was a direct, wholly owned subsidiary of Home Holdings prior to the Company’s initial public offering. As a result of these transactions, as of November 1, 2012, 32,188,891 shares of the Company’s common stock were outstanding. | |||||||||||||
On November 7, 2012, the Company completed its initial public offering. In connection with its initial public offering, the Company issued and sold 4,782,609 shares of its common stock. | |||||||||||||
The weighted-average number of shares for fiscal 2011 is calculated by giving effect to the capitalization of Restoration Hardware Holdings, Inc. on September 2, 2011, which resulted in the number of shares outstanding increasing from 100 shares to 1,000 shares. | |||||||||||||
The weighted-average shares used for earnings per share is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted-average shares—basic | 38,671,564 | 9,428,828 | 468 | ||||||||||
Effect of dilutive stock-based awards | 1,745,066 | — | — | ||||||||||
Weighted-average shares—diluted | 40,416,630 | 9,428,828 | 468 | ||||||||||
For fiscal 2013, options and restricted stock units of 774,745 and 90,988, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For fiscal 2012, options of 6,020,152 were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. The Company did not have any anti-dilutive securities in fiscal 2011 because all securities granted in those periods were granted by Home Holdings. |
Share_Repurchases
Share Repurchases | 12 Months Ended |
Feb. 01, 2014 | |
Equity [Abstract] | ' |
Share Repurchases | ' |
NOTE 12—SHARE REPURCHASES | |
Certain options and awards granted under the Company’s equity plans contain a repurchase right, which may be exercised at the Company’s discretion in the event of the termination of an employee’s employment with the Company. During fiscal 2013, the Company repurchased 40,353 shares of common stock from former employees pursuant to such repurchase right. The shares were repurchased for fair value at a weighted-average price of $67.16 per share and were settled with the issuance of promissory notes bearing interest at 5%, paid annually, with principal due at the end of a 10-year term. As of February 1, 2014, the aggregate unpaid principal amount of the promissory notes was $2.7 million, which is included in other long-term obligations on the consolidated balance sheets. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
NOTE 13—STOCK-BASED COMPENSATION | |||||||||||||||||||||
The Company estimates the value of equity grants based upon an option-pricing model and recognizes this estimated value as compensation expense over the vesting periods. The Company recognizes expense associated with performance-based awards when it becomes probable that the performance condition will be met. Once it becomes probable that a participant will vest, the Company recognizes compensation expense equal to the number of shares which have vested multiplied by the fair value of the related shares measured at the grant date. | |||||||||||||||||||||
Stock-based compensation expense is included in selling, general and administrative expenses on the consolidated statements of operations. The Company recorded stock-based compensation expense of $67.6 million, $116.2 million and $1.6 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. No stock-based compensation cost has been capitalized in the accompanying consolidated financial statements. Stock-based compensation expense by equity award plan and by equity award type is discussed below. | |||||||||||||||||||||
2012 Stock Option Plan and 2012 Stock Incentive Plan | |||||||||||||||||||||
In connection with the Reorganization, the Board of Directors adopted the Restoration Hardware 2012 Stock Option Plan (the “Option Plan”), pursuant to which 6,829,041 fully vested options were granted in connection with the Reorganization to certain of the Company’s employees and advisors, including Mr. Friedman and Mr. Alberini. The options granted under this plan were fully vested upon the completion of the initial public offering and are subject to resale restrictions whereby the holder may not sell the shares for a period of 20 years after the initial public offering, except as follows: (i) with respect to 875,389 of these shares with an exercise price of $29.00 per share, such resale restrictions lapse over time in accordance with the dates set forth in the applicable award agreement, and (ii) with respect to 5,953,652 shares with an exercise price of $46.50 per share, such resale restrictions lapse on dates after the initial public offering on which the 10-day average closing price per share of the Company’s common stock reaches specified levels ranging from $50.75 to $111.25 for at least 10 consecutive trading days. Aside from these options granted in connection with the Reorganization, no other awards will be granted under the Option Plan. | |||||||||||||||||||||
In connection with the Reorganization, the Board of Directors adopted the Restoration Hardware 2012 Stock Incentive Plan (the “Stock Incentive Plan”). The Stock Incentive Plan provides for the grant of incentive stock options to the Company’s employees, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, cash-based awards and any combination thereof to the Company’s employees, directors and consultants and the Company’s parent and subsidiary corporations’ employees, directors and consultants. In connection with the Reorganization, the Board of Directors granted options to purchase 1,264,036 shares of the Company’s common stock to employees of the Company under the Stock Incentive Plan, which options were fully vested upon the completion of the initial public offering, with a weighted-average exercise price equal to $26.50 per share. | |||||||||||||||||||||
In addition, in connection with the Reorganization, the Board of Directors granted an aggregate of 40,623 restricted stock awards to certain of the Company’s directors under the Stock Incentive Plan. Such restricted stock awards vested in full on January 31, 2013. | |||||||||||||||||||||
In connection with the grants under the Option Plan and the Stock Incentive Plan, the Company recorded a non-cash compensation charge at the Reorganization in fiscal 2012 of $52.0 million related to these awards. | |||||||||||||||||||||
On July 2, 2013, in connection with Mr. Friedman’s reappointment as Chairman and Co-Chief Executive Officer, the Company granted a stock option to Mr. Friedman under the 2012 Stock Incentive Plan to purchase 1,000,000 shares of its common stock, with an exercise price of $75.43, which is equal to the closing price of the Company’s common stock on the date of grant. This option is fully vested as of the date of grant but any shares issued upon exercise of the option will be subject to selling restrictions which are scheduled to lapse in three equal installments on the third, fourth and fifth anniversaries of the grant date. The fully vested option resulted in a one-time non-cash stock-based compensation charge of $33.7 million in fiscal 2013. | |||||||||||||||||||||
Upon adoption, there were a total of 11,900,671 shares issuable under the Option Plan and Stock Incentive Plan. On February 4, 2013, an additional 759,353 shares became issuable under the Stock Incentive Plan in accordance with the Stock Incentive Plan evergreen provision, increasing the total number of shares issuable under the Option Plan and Stock Incentive Plan as of February 1, 2014 to 12,660,024. Awards under the plans reduce the number of shares available for future issuance. Cancellations and forfeitures of awards previously granted under the Stock Incentive Plan increase the number of shares available for future issuance. Cancellations and forfeitures of awards previously granted under the Option Plan are immediately retired and are no longer available for future issuance. The number of shares available for future issuance under the Stock Incentive Plan as of February 1, 2014 was 2,857,157. There are no more shares available for issuance under the Option Plan. Shares issued as a result of award exercises under the Option Plan and Stock Incentive Plan will be funded with the issuance of new shares. | |||||||||||||||||||||
On February 3, 2014, an additional 782,495 shares became issuable under the Stock Incentive Plan in accordance with the Stock Incentive Plan evergreen provision. | |||||||||||||||||||||
2012 Stock Option Plan and 2012 Stock Incentive Plan – Stock Options | |||||||||||||||||||||
A summary of stock option activity under the Option Plan and the Stock Incentive Plan for fiscal 2013 is as follows: | |||||||||||||||||||||
Options | Weighted-Average | ||||||||||||||||||||
Exercise Price | |||||||||||||||||||||
Outstanding—February 2, 2013 | 8,159,577 | $ | 41.41 | ||||||||||||||||||
Granted | 1,417,500 | 70.32 | |||||||||||||||||||
Exercised | (317,771 | ) | 27.26 | ||||||||||||||||||
Forfeited | (95,675 | ) | 35.75 | ||||||||||||||||||
Retired | (16,325 | ) | 29 | ||||||||||||||||||
Outstanding—February 1, 2014 | 9,147,306 | $ | 46.46 | ||||||||||||||||||
The fair value of stock options issued during fiscal 2013 and 2012 was estimated on the date of grant using the following assumptions: | |||||||||||||||||||||
Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Expected volatility | 39.7 | % | 35.4 | % | |||||||||||||||||
Expected life (years) | 6.7 | 5.3 | |||||||||||||||||||
Risk-free interest rate | 1.9 | % | 1.6 | % | |||||||||||||||||
Dividend yield | — | — | |||||||||||||||||||
A summary of additional information about stock options is as follows: | |||||||||||||||||||||
Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Weighted-average fair value per share of stock options granted | $ | 30.49 | $ | 6.34 | |||||||||||||||||
Aggregate intrinsic value of stock options exercised (in thousands) | $ | 11,623 | $ | — | |||||||||||||||||
Fair value of stock options vested (in thousands) | $ | 33,871 | $ | 51,063 | |||||||||||||||||
Information about stock options outstanding, vested or expected to vest, and exercisable as of February 1, 2014 is as follows: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||||||
Options | Average | Average | Options | Average | |||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (in years) | |||||||||||||||||||||
$24.00 - $29.00 | 1,736,279 | 8.5 | $ | 27.51 | 1,736,279 | $ | 27.51 | ||||||||||||||
$32.35 - $39.00 | 141,875 | 8.75 | 33.89 | 5,000 | 32.46 | ||||||||||||||||
$46.50 - $46.50 | 5,953,652 | 4.54 | 46.5 | 5,953,652 | 46.5 | ||||||||||||||||
$58.96 - $69.64 | 265,500 | 9.41 | 61.54 | — | — | ||||||||||||||||
$74.03 - $76.80 | 1,050,000 | 9.41 | 75.46 | 1,000,000 | 75.43 | ||||||||||||||||
Total | 9,147,306 | 6.06 | $ | 46.46 | 8,694,931 | $ | 46.03 | ||||||||||||||
Vested or expected to vest as of February 1, 2014 | 9,113,138 | 6.05 | $ | 46.43 | |||||||||||||||||
The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of February 1, 2014 was $114.9 million, $114.7 million, and $111.8 million, respectively. Stock options exercisable as of February 1, 2014 had a weighted-average remaining contractual life of 8.82 years. | |||||||||||||||||||||
The Company recorded stock-based compensation expense for stock options of $1.3 million and $0.1 million in fiscal 2013 and fiscal 2012 (subsequent to expense incurred at the time of the Reorganization), respectively. As of February 1, 2014, the total unrecognized compensation expense related to unvested options was $7.7 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.88 years. | |||||||||||||||||||||
2012 Stock Incentive Plan – Restricted Stock Awards | |||||||||||||||||||||
The Company grants restricted stock awards, which include restricted stock and restricted stock units, to its employees and members of its Board of Directors. A summary of restricted stock award activity under the Stock Incentive Plan for fiscal 2013 is as follows: | |||||||||||||||||||||
Options | Weighted-Average | Intrinsic | |||||||||||||||||||
Grant Date Fair Value | Value | ||||||||||||||||||||
Outstanding—February 2, 2013 | — | $ | — | ||||||||||||||||||
Granted | 316,580 | 65.37 | |||||||||||||||||||
Released | (13,333 | ) | 57.01 | ||||||||||||||||||
Cancelled | (13,500 | ) | 73.92 | ||||||||||||||||||
Outstanding—February 1, 2014 | 289,747 | $ | 65.36 | $ | 16,440,000 | ||||||||||||||||
A summary of additional information about restricted stock awards is as follows: | |||||||||||||||||||||
Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Weighted-average fair value per share of awards granted | $ | 65.37 | $ | 24 | |||||||||||||||||
Grant date fair value of awards released (in thousands) | $ | 760 | $ | 975 | |||||||||||||||||
The Company recorded stock-based compensation expense for restricted stock awards of $2.7 million in fiscal 2013. As of February 1, 2014, the total unrecognized compensation expense related to unvested restricted stock awards was $14.5 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.64 years. | |||||||||||||||||||||
2012 Equity Replacement Plan | |||||||||||||||||||||
In connection with the Reorganization, the Board of Directors adopted the Restoration Hardware 2012 Equity Replacement Plan (the “Replacement Plan”), and outstanding units under the Team Resto Ownership Plan were replaced with vested and unvested shares of common stock under the Replacement Plan, in some cases subject to selling restrictions. | |||||||||||||||||||||
A portion of the shares issued under the Replacement Plan, which are fully vested, are subject to resale restrictions whereby the holder may not sell the shares until the earlier of 20 years after the initial public offering, or with respect to 818,209 of these shares, such resale restrictions will lapse over time in accordance with the dates set forth in the applicable award agreement. | |||||||||||||||||||||
The Company recorded a non-cash compensation charge at the Reorganization in fiscal 2012 of $39.1 million related to the awards granted under the Replacement Plan. | |||||||||||||||||||||
A portion of the shares issued under the Replacement Plan are unvested restricted shares issued to Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units granted under the Team Resto Ownership Plan. With respect to the 1,331,548 shares received by Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units, such shares began to vest during the period following the initial public offering when the price of the Company’s common stock reached a 10-day average closing price per share of $31.00 for at least 10 consecutive trading days, and such shares fully vested when the price of the Company’s common stock reached a 10-day average closing price per share of $46.50 for at least 10 consecutive trading days. In addition, with respect to the 512,580 shares received by Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units, such shares began to vest during the period following the initial public offering when the 10-day average closing price of the Company’s common stock exceeded the initial public offering price of $24.00 per share for at least 10 consecutive trading days, and such shares fully vested when the 10-day average closing price of the Company’s common stock reached a price per share of $31.00 for at least 10 consecutive trading days. | |||||||||||||||||||||
In connection with Mr. Friedman’s resignation and new role as the Creator and Curator in fiscal 2012 and prior to his reappointment as Chairman and Co-Chief Executive Officer in fiscal 2013, 1,185,511 shares of unvested stock he received in replacement of certain performance-based units were marked to market every period until the required vesting criteria were met in accordance with ASC 718. | |||||||||||||||||||||
During fiscal 2012, all 512,580 shares received by Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units met the performance objective of $31.00 per share for at least 10 consecutive trading days. The Company recorded a non-cash compensation charge of $12.5 million related to these awards in fiscal 2012. During fiscal 2012, 442,932 shares of the 1,331,548 shares received by Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units had vested in accordance with the performance objective as described above. The Company recorded a non-cash compensation charge of $10.6 million related to these awards in fiscal 2012. | |||||||||||||||||||||
During fiscal 2013, 888,616 shares of the 1,331,548 shares received by Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units vested in accordance with the performance objectives described above. The Company recorded a non-cash compensation charge of $29.9 million related to these awards in fiscal 2013. As all shares received by Mr. Friedman and Mr. Alberini in replacement of certain of their performance-based units had vested as of February 1, 2014, no additional compensation expense will be recorded in future periods related to these awards. | |||||||||||||||||||||
Aside from the awards described above, no other awards will be granted under the Replacement Plan. | |||||||||||||||||||||
Team Resto Ownership Plan | |||||||||||||||||||||
Home Holdings established the Team Resto Ownership Plan in fiscal 2009. Awards under the Team Resto Ownership Plan were granted by the Home Holdings and were made up of the following: | |||||||||||||||||||||
• | Time-based units—time-based units vested in annual installments, generally over a five-year graded vesting period. | ||||||||||||||||||||
• | Performance-based units—performance-based units vested based on a return on equity investment to the Company’s investors between either two times and three times such investment or three times and five times such investment. | ||||||||||||||||||||
All stock-based compensation expense associated with the grants of units by Home Holdings to the Company’s directors, executive officers and employees was recorded by the Company. The Company recorded stock-based compensation expense for time-based units of $1.1 million and $1.6 million in fiscal 2012 and fiscal 2011, respectively. In connection with its initial public offering, the Company recorded $0.8 million related to the vested performance-based units in fiscal 2012. | |||||||||||||||||||||
On November 7, 2012, the Company completed its initial public offering and at the time of the initial public offering, outstanding units under the Team Resto Ownership Plan, were replaced with common stock of the Company. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 01, 2014 | |
Postemployment Benefits [Abstract] | ' |
Employee Benefit Plans | ' |
NOTE 14—EMPLOYEE BENEFIT PLANS | |
The Company has a 401(k) plan for its employees who meet certain service and age requirements. Participants may contribute up to 50% of their salaries limited to the maximum allowed by the Internal Revenue Service regulations. The Company, at its discretion, may contribute funds to the 401(k) plan. The Company made no contributions to the 401(k) plan during fiscal 2013, fiscal 2012, or fiscal 2011. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Feb. 01, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 15—RELATED PARTY TRANSACTIONS | |
Reappointment of Gary Friedman as Chairman and Co-Chief Executive Officer | |
On July 2, 2013, at the time of Mr. Friedman’s reappointment as Chairman of the Company’s Board of Directors and Co-Chief Executive Officer, Mr. Friedman and Hierarchy, LLC (“Hierarchy”), a newly formed entity in which Mr. Friedman had a controlling interest, waived all of Home Holdings’ obligations to invest in Hierarchy and all of Home Holdings’ rights with respect to Hierarchy were canceled, and the Company subsequently acquired all the outstanding interests of Hierarchy. As a result of the acquisition of Hierarchy, in fiscal 2013 the Company wrote off all outstanding receivables in connection with certain consulting services provided to Hierarchy, and recorded a charge of $0.2 million. | |
Management Agreement | |
Pursuant to the Amended and Restated Management Services Agreement with certain affiliates of Catterton, Tower Three and Glenhill, such affiliated entities were to provide services to the Company for general management, consulting services and other strategic planning functions. The amount of the annual management fee payable to Catterton, Tower Three and Glenhill under the Amended and Restated Management Services Agreement was equal to 1.5% of Catterton’s and Tower Three’s invested capital in Home Holdings and 1% of Glenhill’s invested capital in Home Holdings. | |
The Amended and Restated Management Services Agreement provided that the term of the agreement ends upon the consummation of an initial public offering, and that additional fees would be payable upon termination in connection with an initial public offering. The Company paid additional fees upon such termination in connection with its initial public offering in fiscal 2012 to Catterton, Tower Three and Glenhill in the amount of $3.3 million, $3.1 million and $0.6 million, respectively. | |
In addition to the initial public offering termination fees, the Company recorded management fees of $3.9 million in selling, general and administrative expenses in fiscal 2012 and such management fees were paid by the Company in fiscal 2012. | |
The Company recorded management fees of $9.9 million in selling, general and administrative expenses in fiscal 2011, of which $6.0 million was paid directly by Home Holdings and reflected as a capital contribution from Home Holdings through additional paid-in capital. The remaining $3.9 million was paid by the Company in fiscal 2011. | |
Executive Loans with Home Holdings | |
In the years prior to the Company’s initial public offering in November 2012, certain of the Company’s executive officers listed below entered into loans with Home Holdings, a former affiliate of the Company. All of these loans were repaid prior to the completion of the Company’s initial public offering. | |
In December 2008, Mr. Friedman entered into a $1.0 million loan with Home Holdings in connection with the purchase of a 0.3% ownership interest in Home Holdings. The full recourse loan initially bore interest at a rate of 8.0% per annum. If the interest was not paid in cash on December 31 of each year, such interest was deemed paid by capitalization and added to the principal amount of the loan. Principal and accrued interest was due the earlier of December 31, 2018, upon the sale of the Company or upon Mr. Friedman’s termination of employment. In May 2010, the loan was amended and restated to, among other things, reduce the interest rate to 5.0% per annum, as of the date of the original $1.0 million loan received in December 2008, modify the maturity date to December 31, 2015, and provide for an additional $5.0 million loan from Home Holdings in connection with the purchase of an additional 1.7% ownership interest in Home Holdings. | |
In September 2011, Mr. Friedman repaid the loans owed to Home Holdings, together with accrued interest thereon, through the reclassification by Home Holdings of Mr. Friedman’s pre-Reorganization Class A units and Class A-1 units in Home Holdings into an equal number of pre-Reorganization Class A Prime units and Class A-1 Prime units in Home Holdings, respectively. The Class A Prime units and Class A-1 Prime units, which are not subject to any future vesting, do not entitle Mr. Friedman to distributions from Home Holdings until after certain amounts have been distributed to the holders of Class A units, commensurate with the amount of all previously outstanding principal and interest on the loans. On the date of such repayment, the total principal amount of the loans, including all accrued interest thereon, was $6,559,877. No prior payments of principal or interest were made by Mr. Friedman under the loan agreements. The Company completed a valuation analysis regarding the reclassification of units which resulted in a $6.4 million compensation charge included in selling, general and administrative expenses on the consolidated statements of operations for fiscal 2011 and reflected as a capital contribution from Home Holdings through additional paid-in capital. Such compensation charge was calculated as the total principal amount of the loans, including all accrued interest thereon, as of the repayment date, less the difference in fair value of the Class A units and Class A-1 units in Home Holdings as compared to the Class A Prime units and Class A-1 Prime units in Home Holdings. | |
In May 2010, Mr. Alberini entered into a $4.0 million loan with Home Holdings in connection with the purchase of a 1.4% ownership interest in Home Holdings bearing interest at the rate of 5.0% per annum with a maturity date of ninety days from the original date of such note. The loan to Mr. Alberini was repaid in full on August 25, 2010. | |
In April 2011, Ken Dunaj, the Company’s Chief Operating Officer, entered into a $600,000 loan with Home Holdings. The full recourse loan bears interest at 5.0% per annum and is secured by Mr. Dunaj’s Team Restoration Ownership Plan units. The loan, together will all interest accrued but unpaid, is due and payable on the first to occur of (i) December 31, 2015, (ii) ninety days following termination of employment, (iii) the date of any sale of the Company, (iv) the date of an initial public offering, (v) the date of any acceleration that might occur as a result of a defined default under the note, or (vi) demand for repayment by Home Holdings. | |
In September 2011, Mr. Dunaj repaid the loan owed to Home Holdings, together with accrued interest thereon, through the reclassification by Home Holdings of Mr. Dunaj’s pre-Reorganization Class B units issued under the Team Resto Ownership Plan into an equal number of pre-Reorganization Class B Prime units under the Team Resto Ownership Plan. The Class B Prime units are entitled to a lower distribution amount than Class B units, commensurate with the amount of all previously outstanding principal and interest on the loan. On the date of such repayment, the total principal amount of the loan, including all accrued interest thereon, was $620,712. No prior payments of principal or interest were made by Mr. Dunaj under the loan agreement. On the date of such repayment, Mr. Dunaj surrendered 300,000 of his unvested Class B performance units under the Team Resto Ownership Plan. The Company undertook a valuation analysis regarding the reclassification of units which resulted in no compensation charge recorded in connection with the reclassification in the Company’s consolidated financial statements for fiscal 2011 as it relates to vested awards and over the remaining vesting periods for currently unvested awards. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
NOTE 16—COMMITMENTS AND CONTINGENCIES | |||||||||||||||||
Leases | |||||||||||||||||
The Company leases certain property consisting of retail and outlet stores, corporate offices, distribution centers and equipment. Leases expire at various dates through 2033. The stores, distribution centers and corporate office leases generally provide that the Company assumes the maintenance and all or a portion of the property tax obligations on the leased property. Most store leases also provide for minimum annual rentals, with provisions for additional rent based on a percentage of sales and for payment of certain expenses. | |||||||||||||||||
The aggregate future minimum rental payments under leases in effect as of February 1, 2014, are as follows (in thousands): | |||||||||||||||||
Capital | Operating | Other | Total | ||||||||||||||
Leases (1) | Leases | Commitments (2) | |||||||||||||||
2014 | $ | 1,844 | $ | 68,709 | $ | 48,352 | $ | 118,905 | |||||||||
2015 | 235 | 61,396 | 8,544 | 70,175 | |||||||||||||
2016 | 106 | 57,972 | 8,966 | 67,044 | |||||||||||||
2017 | 50 | 53,775 | 9,276 | 63,101 | |||||||||||||
2018 | 21 | 46,824 | 7,383 | 54,228 | |||||||||||||
Thereafter | — | 323,991 | 60,480 | 384,471 | |||||||||||||
Minimum lease commitments | 2,256 | $ | 612,667 | $ | 143,001 | $ | 757,924 | ||||||||||
Less—amount representing interest | (60 | ) | |||||||||||||||
Present value of capital lease obligations | 2,196 | ||||||||||||||||
Less—current capital lease obligations | (1,807 | ) | |||||||||||||||
Long-term capital lease obligations | $ | 389 | |||||||||||||||
-1 | The current and long-term capital lease obligations are included in other current liabilities and other long-term obligations, respectively, on the consolidated balance sheets. | ||||||||||||||||
-2 | Other commitments include estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements. | ||||||||||||||||
Lease payments that depend on factors that are not measurable at the inception of the lease, such as future sales volume, are contingent rentals and are excluded from minimum lease payments and included in the determination of total rental expense when it is probable that the expense has been incurred and the amount is reasonably estimable. Future payments for insurance, real estate taxes and repair and maintenance to which the Company is obligated are excluded from minimum lease payments. Minimum and contingent rental expense under operating leases is as follows (in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
February 1, | February 2, | January 28, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Operating leases | |||||||||||||||||
Minimum rental expense | $ | 66,686 | $ | 52,750 | $ | 51,665 | |||||||||||
Contingent rental expense | 6,208 | 3,318 | 1,456 | ||||||||||||||
Total operating leases | $ | 72,894 | $ | 56,068 | $ | 53,121 | |||||||||||
Commitments | |||||||||||||||||
The Company had no off balance sheet commitments as of February 1, 2014. | |||||||||||||||||
Contingencies | |||||||||||||||||
The Company is involved in lawsuits, claims and proceedings incident to the ordinary course of its business. These disputes are increasing in number as the business expands and the Company grows larger. Litigation is inherently unpredictable. As a result, the outcome of matters in which the Company is involved could result in unexpected expenses and liability that could adversely affect the Company’s operations. In addition, any claims against the Company, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. | |||||||||||||||||
The Company reviews the need for any loss contingency reserves and establishes reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. Generally, in view of the inherent difficulty of predicting the outcome of those matters, particularly in cases in which claimants seek substantial or indeterminate damages, it is not possible to determine whether a liability has been incurred or to reasonably estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case no reserve is established until that time. As of February 1, 2014, the Company has recorded a liability for the estimated loss related to these disputes. There is a possibility that additional losses may be incurred in excess of the amounts that we have accrued. However, the Company believes that the ultimate resolution of these current matters will not have a material adverse effect on its consolidated financial statements. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting | ' | ||||||||||||
NOTE 17—SEGMENT REPORTING | |||||||||||||
The Company defines an operating segment on the same basis that it uses to evaluate performance internally by the Chief Operating Decision Maker (“CODM”). The Company has determined that the Chief Executive Officers is its CODM and there is one operating segment. Therefore, the Company reports as a single segment. This includes all sales channels accessed by the Company’s customers, including sales through catalogs, sales through the Company’s website and sales through the Company’s stores. | |||||||||||||
The Company classifies its sales into furniture and non-furniture product lines. Furniture includes both indoor and outdoor furniture. Non-furniture includes lighting, textiles, accessories and home décor. Net revenues in each category were as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Furniture | $ | 868,650 | $ | 628,092 | $ | 477,730 | |||||||
Non-furniture | 682,311 | 564,954 | 480,354 | ||||||||||
Total net revenues | $ | 1,550,961 | $ | 1,193,046 | $ | 958,084 | |||||||
The Company is domiciled in the United States and operates stores in the United States and Canada. Revenues from Canadian operations, and the long-lived assets in Canada, are not material to the Company. Geographic revenues are determined based upon where service is rendered. | |||||||||||||
No single customer accounted for more than 10% of the Company’s revenues in fiscal 2013, fiscal 2012, or fiscal 2011. |
Retail_Store_Closures_and_Offi
Retail Store Closures and Office Restructuring | 12 Months Ended |
Feb. 01, 2014 | |
Restructuring And Related Activities [Abstract] | ' |
Retail Store Closures and Office Restructuring | ' |
NOTE 18—RETAIL STORE CLOSURES AND OFFICE RESTRUCTURING | |
Shanghai Office Restructuring | |
In April 2011, the Company restructured its Shanghai office location and terminated employees at that office, as well as terminated employees within the corporate headquarters in Corte Madera, CA. As a result, during fiscal 2011, the Company incurred $1.6 million in restructuring related costs, including one-time employee termination benefits, contract termination fees, loss on disposal of capitalized property and equipment, and other associated costs, which are included in selling, general and administrative expenses on the consolidated statements of operations. During fiscal 2013 and fiscal 2012, the Company did not incur any restructuring related costs. At February 1, 2014, the Company did not have any remaining future liabilities related to this office restructuring. The Company does not expect to incur additional costs associated with this office restructuring in future periods. | |
Retail Store Closures | |
In June and July 2011, the Company closed four retail store locations prior to their respective lease termination dates. As a result, during fiscal 2011, the Company incurred $3.2 million in exit related costs, including contract termination fees, one-time employee termination benefits and other associated costs. During fiscal 2012, the Company recorded income of $0.4 million related to a change in estimate of liabilities related to closed stores. During fiscal 2013, the Company did not incur any restructuring related costs. At February 1, 2014, the Company did not have any remaining future liabilities existing under these lease agreements. The Company does not expect to incur additional costs associated with these retail store closures in future periods. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||
NOTE 19—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
Quarterly financial data for fiscal 2013 and fiscal 2012 are set forth below (in thousands, except share and per share amounts): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2013 | May 4, | August 3, | November 2, | February 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Net revenues | $ | 301,337 | $ | 382,098 | $ | 395,832 | $ | 471,694 | |||||||||
Gross profit | 101,877 | 139,226 | 140,800 | 174,977 | |||||||||||||
Net income (loss) | (161 | ) | (17,835 | ) | 9,549 | 26,642 | |||||||||||
Weighted-average shares used in computing basic net income (loss) per share | 38,076,026 | 38,712,000 | 38,888,208 | 39,008,383 | |||||||||||||
Basic net income (loss) per share | $ | — | $ | (0.46 | ) | $ | 0.25 | $ | 0.68 | ||||||||
Weighted-average shares used in computing diluted net income (loss) per share | 38,076,026 | 38,712,000 | 41,053,211 | 41,119,175 | |||||||||||||
Diluted net income (loss) per share | $ | — | $ | (0.46 | ) | $ | 0.23 | $ | 0.65 | ||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2012 | April 28, | July 28, | October 27, | February 2, | |||||||||||||
2012 | 2012 | 2012 | 2013 | ||||||||||||||
Net revenues | $ | 217,914 | $ | 292,906 | $ | 284,171 | $ | 398,055 | |||||||||
Gross profit | 75,268 | 114,127 | 101,880 | 145,174 | |||||||||||||
Net income (loss) | (3,728 | ) | 17,616 | 1,685 | (28,362 | ) | |||||||||||
Weighted-average shares used in computing basic and diluted net income (loss) per share | 1,000 | 1,000 | 1,000 | 35,692,064 | |||||||||||||
Basic and diluted net income (loss) per share | $ | (3,728 | ) | $ | 17,616 | $ | 1,685 | $ | (0.79 | ) | |||||||
The three months ended May 4, 2013 includes (i) a $3.3 million non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman and (ii) $0.8 million of costs incurred in connection with the Company’s follow-on offering in May 2013. | |||||||||||||||||
The three months ended August 3, 2013 includes (i) a $33.7 million non-cash compensation charge related to the one-time, fully vested option granted to Mr. Friedman upon his reappointment as Chairman and Co-Chief Executive Officer in July 2013, (ii) a $26.2 million non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman and (iii) $2.1 million of costs incurred in connection with the Company’s follow-on offerings in May 2013 and July 2013. | |||||||||||||||||
The three months ended February 2, 2013 includes (i) a $92.0 million non-cash compensation charge related to equity grants at the time of the Reorganization, (ii) a non-cash compensation charge of $23.1 million related to the performance-based vesting of certain shares granted to Mr. Alberini and Mr. Friedman, (iii) costs incurred in connection with the initial public offering, including a fee of $7.0 million to Catterton, Tower Three and Glenhill in accordance with the Company’s management services agreement, payments of $2.2 million to certain former executives and bonus payments to employees of $1.3 million and (iv) $3.3 million incurred as a result of increased tariff obligations of one of the Company’s foreign suppliers following the U.S. Department of Commerce’s review of the anti-dumping duty order on wooden bedroom furniture from China for the period from January 1, 2011 through December 31, 2011. In addition, as of the end of fiscal 2012, the Company’s U.S. operations had returned to a position of cumulative profits (adjusted for permanent differences) for the most recent three-year period. The Company concluded that this record of cumulative profitability in recent years, coupled with its business plan for profitability in future periods, provided assurance that the Company’s future tax benefits more likely than not would be realized. Accordingly, in the three months ended February 2, 2013, the Company released all of its U.S. valuation allowance of $57.2 million against net deferred tax assets. | |||||||||||||||||
The three months ended July 28, 2012 and October 27, 2012 include $2.0 million and $2.8 million, respectively, of legal and other professional fees incurred in connection with the investigation conducted by the special committee of the board of directors relating to Mr. Friedman and its subsequent remedial actions. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Feb. 01, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
NOTE 20—SUBSEQUENT EVENTS | |
Acquisition of Assets | |
On February 3, 2014, the Company completed the acquisition of certain assets for an aggregate purchase price of $2.5 million. These assets were purchased from a company that is owned by an employee of the Company. The Company will account for this acquisition utilizing the purchase method. In accordance with the purchase method, all assets and liabilities will be recorded at fair value, including goodwill and other intangible assets acquired. The Company has not completed the process of estimating the fair value of goodwill and other intangible assets. | |
Share Repurchase | |
On March 10, 2014, the Company repurchased 238,290 shares of common stock from Carlos Alberini, a former Co-Chief Executive Officer of the Company, pursuant to its repurchase rights under the 2012 Equity Replacement Plan. The shares were repurchased at a purchase price of $65.06 per share, the closing sale price of the Company’s common stock on the New York Stock Exchange on the repurchase date, and were settled with the issuance of an unsecured subordinated promissory note in the aggregate amount of $15.5 million. The promissory note has a term of eight years and accrues interest annually at a rate of 5%, with accrued interest payable annually by the Company. The principal amount of the promissory note is payable by the Company at maturity on March 10, 2022. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process. | |||||||||||||
Fiscal Years | ' | ||||||||||||
Fiscal Years | |||||||||||||
The Company’s fiscal year ends on the Saturday closest to January 31. As a result, the Company’s fiscal year may include 53 weeks. The fiscal years ended February 1, 2014 (“fiscal 2013”) and January 28, 2012 (“fiscal 2011”) each consisted of 52 weeks. The fiscal year ended February 2, 2013 (“fiscal 2012”) consisted of 53 weeks. | |||||||||||||
Use of Accounting Estimates | ' | ||||||||||||
Use of Accounting Estimates | |||||||||||||
The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material to the consolidated financial statements. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. | |||||||||||||
Concentration of Credit Risk | ' | ||||||||||||
Concentration of Credit Risk | |||||||||||||
The Company maintains its cash and cash equivalent accounts in financial institutions in both U.S. dollar and Canadian dollar denominations. Accounts at the U.S. institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 and accounts at the Canadian institutions are insured by the Canada Deposit Insurance Corporation (“CDIC”) up to $100,000 Canadian dollars. As of February 1, 2014, the Company had four U.S. bank account balances that were in excess of the FDIC insurance limit and three Canadian bank account balance that was in excess of the CIDC insurance limit. The Company performs ongoing evaluations of these institutions to limit its concentration of credit risk. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable consist primarily of receivables from the Company’s credit card processors for sales transactions and tenant improvement allowances from the Company’s landlords in connection with new leases. Accounts receivable is presented net of allowance for doubtful accounts, which is recorded on a specific identification basis. The allowance for doubtful accounts was $1.6 million and $0.8 million as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||||
Merchandise Inventories | ' | ||||||||||||
Merchandise Inventories | |||||||||||||
The Company’s merchandise inventories are comprised of finished goods and are carried at the lower of cost or market, with cost determined on a weighted-average cost method and market determined based on the estimated net realizable value. To determine if the value of inventory should be marked down below original cost, the Company considers current and anticipated demand, customer preference and the merchandise age. The inventory value is adjusted periodically to reflect current market conditions, which requires management judgments that may significantly affect the ending inventory valuation, as well as gross margin. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory and lower of cost or market reserves) and estimates of inventory shrinkage. The Company adjusts its inventory for obsolescence based on historical trends, aging reports, specific identification and its estimates of future retail sales prices. | |||||||||||||
Reserves for shrinkage are estimated and recorded throughout the period as a percentage of net sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts and the results of the Company’s annual physical inventory count. Actual inventory shrinkage and obsolescence can vary from estimates due to factors including the mix of the Company’s inventory (which ranges from large furniture to decorative accessories) and execution against loss prevention initiatives in the Company’s stores, distribution centers, off-site storage locations and with its third-party transportation providers. | |||||||||||||
Due to these factors, the Company’s obsolescence and shrinkage reserves contain uncertainties. Both estimates have calculations that require management to make assumptions and to apply judgment regarding a number of factors, including market conditions, the selling environment, historical results and current inventory trends. If actual obsolescence or shrinkage estimates change from the Company’s original estimates, the Company will adjust its inventory reserves accordingly throughout the period. Management does not believe that changes in the assumptions used in these estimates would have a significant effect on the Company’s net income (loss) or inventory balances. The Company’s inventory reserve balances were $9.3 million and $5.9 million as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||||
Advertising Expenses | ' | ||||||||||||
Advertising Expenses | |||||||||||||
Advertising expenses primarily represent the costs associated with the Company’s catalog mailings, as well as print and website marketing. Total advertising costs, recorded in selling, general and administrative expenses, were $83.0 million, $98.8 million, and $66.9 million in fiscal 2013, fiscal 2012, and fiscal 2011, respectively. | |||||||||||||
Capitalized Catalog Costs | |||||||||||||
Capitalized catalog costs consist primarily of third-party incremental direct costs to prepare, print and distribute Source Books. Such costs are capitalized and amortized over their expected period of future benefit. Such amortization is based upon the ratio of actual revenues to the total of actual and estimated future revenues on an individual Source Book basis. Estimated future revenues are based upon various factors such as the total number of Source Books and pages circulated, the probability and magnitude of consumer response and the merchandise assortment offered. Each Source Book is generally fully amortized within a twelve-month period and the majority of the amortization occurs within the first six to ten months, with the exception of the Holiday Source Books, which are generally fully amortized within a four-month period. Capitalized catalog costs are evaluated for realizability on a regular basis by comparing the carrying amount associated with each Source Book to the estimated probable remaining future sales associated with that Source Book. | |||||||||||||
The Company’s catalog amortization calculation requires management to make assumptions and to apply judgment regarding a number of factors, including market conditions, the selling environment and the probability and magnitude of consumer response to certain Source Books and merchandise assortment offered. If actual revenues associated with the Company’s Source Books differ from its original estimates, the Company adjusts its catalog amortization schedules accordingly. Management does not believe that changes in the assumptions used in these estimates would have a significant effect on the Company’s net income as changes in the assumptions do not impact the total cost of the Source Books to be amortized. However, changes in the assumptions could impact the timing of the future catalog amortization expense recorded to the consolidated statement of operations. | |||||||||||||
During fiscal 2013, the Company modified its Source Book strategy and eliminated its Fall Source Book. The Company therefore made changes to its assumptions regarding the estimated future revenues and the period over which such revenues would be earned related to its Spring 2013 Source Books. As a result, the amortization period for the Spring 2013 Source Books increased from an eight- to nine-month period to a twelve-month period. | |||||||||||||
The Company had $49.3 million and $43.8 million of capitalized catalog costs that are included in prepaid expense and other current assets on the consolidated balance sheets as of February 1, 2014, and February 2, 2013, respectively. | |||||||||||||
Website and Print Advertising | |||||||||||||
Website and print advertising expenses, which include e-commerce advertising, web creative content and direct marketing activities such as print media, radio and other media advertising, are expensed as incurred or upon the release of the content or the initial advertisement. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
Property and equipment is recorded at cost, net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method, generally using the following useful lives: | |||||||||||||
Category of Property and Equipment | Useful Life | ||||||||||||
Building | 40 years | ||||||||||||
Furniture, fixtures and equipment | 3 to 7 years | ||||||||||||
Machinery and equipment | 3 to 5 years | ||||||||||||
Computer software | 3 years | ||||||||||||
The cost of leasehold improvements and lease acquisitions is amortized over the lesser of the useful life of the asset or the applicable lease term. | |||||||||||||
Interest is capitalized on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. | |||||||||||||
Assets acquired under non-cancelable leases, which meet the criteria of capital leases, are capitalized in property and equipment and amortized over the lesser of the useful life of the asset or the applicable lease term. | |||||||||||||
The land purchased by the Company is recorded at cost and is a non-depreciable asset. | |||||||||||||
Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible Assets | |||||||||||||
Intangible assets reflect the value assigned to trademarks, core technologies and the fair market value of the Company’s leases. Core technologies and the fair market value of the leases are amortized over their useful life. The Company does not amortize trademarks as the Company defines the life of the asset as indefinite. | |||||||||||||
Impairment | ' | ||||||||||||
Impairment | |||||||||||||
Goodwill | |||||||||||||
The Company evaluates goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset; general economic conditions, such as increasing Treasury rates or unexpected changes in GDP growth; a change in the Company’s market share; budget-to-actual performance and consistency of operating margins and capital expenditures; a product recall or an adverse action or assessment by a regulator; or changes in management or key personnel. If an impairment indicator exists, the Company tests the intangible asset for recoverability. The Company has identified only one single reporting unit. The Company selected the fourth fiscal quarter to perform its annual goodwill impairment testing. | |||||||||||||
The Company qualitatively assesses goodwill impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. During fiscal 2013, the Company performed a qualitative analysis examining key events and circumstances affecting fair value and determined it is more likely than not that the reporting unit’s fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s goodwill for impairment. | |||||||||||||
If goodwill is not qualitatively assessed or if goodwill is qualitatively assessed and it is determined it is not more likely than not that the reporting unit’s fair value is greater than its carrying amount, a two-step quantitative approach is used. In the first step, the Company compares the fair value of the reporting unit, generally defined as the same level as or one level below an operating segment, to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. | |||||||||||||
The Company’s tests for impairment of goodwill resulted in a determination that the fair value of the Company substantially exceeded the carrying value of the Company’s net assets in fiscal 2013 and fiscal 2012. No impairment to goodwill has been recorded in any period. | |||||||||||||
Trademarks | |||||||||||||
The Company annually evaluates whether trademarks continue to have an indefinite life. Trademarks are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. | |||||||||||||
The Company qualitatively assesses indefinite-lived intangible asset impairment to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. During fiscal 2013, the Company performed a qualitative analysis examining key events and circumstances affecting fair value and determined it is more likely than not that the asset’s fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s trademarks for impairment. | |||||||||||||
If trademarks are not qualitatively assessed or if trademarks are qualitatively assessed and it is determined it is not more likely than not that the asset’s fair value is greater than its carrying amount, an impairment review is performed by comparing the carrying value to the estimated fair value, determined using a discounted cash flow methodology. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, management’s plans for future operations, brand initiatives, recent operating results and projected future cash flows. | |||||||||||||
The Company tested the trademarks for impairment and concluded that there has been no impairment in any period. | |||||||||||||
Long-Lived Assets | |||||||||||||
Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. | |||||||||||||
The Company evaluates long-lived tangible assets at an individual store level, which is the lowest level at which independent cash flows can be identified. The Company evaluates corporate assets or other long-lived assets that are not store-specific at the consolidated level. | |||||||||||||
Since there is typically no active market for the Company’s long-lived tangible assets, the Company estimates fair values based on the expected future cash flows. The Company estimates future cash flows based on store-level historical results, current trends, and operating and cash flow projections. The Company’s estimates are subject to uncertainty and may be affected by a number of factors outside its control, including general economic conditions and the competitive environment. While the Company believes its estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring the Company to revise its estimates. | |||||||||||||
The Company recorded an impairment charge in fiscal 2013 of $1.4 million related to the underperformance of a stand-alone Baby & Child Gallery, which is included in selling, general and administrative expenses on the consolidated statements of operations. The Company did not record an impairment charge on long-lived assets in fiscal 2012 or fiscal 2011. | |||||||||||||
Lease Accounting | ' | ||||||||||||
Lease Accounting | |||||||||||||
The Company leases stores, distribution facilities, office space and certain machinery and equipment under various leases. The Company classifies leases at the inception of the lease as a build-to-suit lease, a capital lease or an operating lease. | |||||||||||||
The Company is sometimes involved in the construction of leased stores. As a result of this involvement, the Company is deemed the “owner” for accounting purposes during the construction period, and is required to capitalize the construction costs on its consolidated balance sheets (referred to as build-to-suit leases). The Company establishes assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. Upon completion of the project, the Company performs a sale-leaseback analysis pursuant to Accounting Standards Codification (“ASC”) 840 – Leases, to determine if it can remove the assets from its consolidated balance sheets. In many of its leases, the Company is reimbursed a portion of the construction costs via adjusted rental payments and/or cash payments or has terms which fix the rental payments for a significant percentage of the leased asset’s economic life. These items generally are considered “continuing involvement,” which precludes the Company from derecognizing the assets from its consolidated balance sheets when construction is complete. In conjunction with these leases, the Company also records financing obligations equal to the cash proceeds or fair market value of the assets received from the landlord. At the end of the lease term, including exercise of any renewal options, the net remaining financing obligation over the net carrying value of the fixed asset will be recognized as a non-cash gain on sale of the property. The Company does not report rent expense for the properties which are owned for accounting purposes. Rather, rental payments under the lease are recognized as a reduction of the financing obligation and interest expense. | |||||||||||||
During fiscal 2013, the Company determined that lease agreements for four future Full Line Design Gallery locations met the capitalization criteria under ASC 840. As a result, the Company recorded approximately $33 million related to build-to-suit transactions, which is recorded within property and equipment, and other long-term obligations on the consolidated balance sheets. | |||||||||||||
In a capital or an operating lease, the expected lease term begins with the date that the Company takes possession of the equipment or the leased space for construction and other purposes. The expected lease term may also include the exercise of renewal options if the exercise of the option is determined to be reasonably assured. The expected term is also used in the determination of whether a store is a capital or operating lease. | |||||||||||||
Some of the Company’s equipment is held under capital leases. These assets are included in property and equipment and depreciated over the term of the lease. The Company does not report rent expense for capital leases. Rather, rental payments under the lease are recognized as a reduction of the capital lease obligation and interest expense. | |||||||||||||
All other leases are considered operating leases in accordance with ASC 840. Assets subject to an operating lease and the related lease payments are not recorded on the consolidated balance sheets. For leases that contain lease incentives, premiums and minimum rental expenses, the Company recognizes rental expense on a straight-line basis over the lease term, including the construction period. The Company records rental expense during the construction period. Tenant improvement allowances received from landlords are recorded as deferred rent, reported as a long-term liability on the consolidated balance sheets, and are amortized on a straight-line basis over the lease term, including the construction period. | |||||||||||||
Debt Issuance Costs | ' | ||||||||||||
Debt Issuance Costs | |||||||||||||
The Company capitalizes debt issuance costs related to its revolving line of credit. Capitalized costs related to the revolving line of credit are included in other assets on the consolidated balance sheets as deferred financing fees. Deferred financing fees are amortized utilizing the straight-line method and are included in interest expense on the consolidated statements of operations. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenues and the related cost of goods sold when merchandise is received by its customers. Revenues from “cash-and-carry” store sales are recognized at the point of sale in the store. Revenues from direct-to-customer and home-delivered sales are recognized when the merchandise is delivered to the customer. Discounts provided to customers are accounted for as a reduction of sales. | |||||||||||||
The Company recognizes shipping and handling fees as revenue when the merchandise is received by its customers. Costs of shipping and handling are included in cost of goods sold. | |||||||||||||
Sales tax collected is not recognized as revenue but is included in accounts payable and accrued expenses on the consolidated balance sheets as it is ultimately remitted to governmental authorities. | |||||||||||||
The Company reserves for projected merchandise returns. Merchandise returns are often resalable merchandise and are refunded by issuing the same payment tender of the original purchase. Merchandise exchanges of the same product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. | |||||||||||||
The Company’s customers may return purchased items for a refund. The Company provides an allowance for sales returns, net of cost of goods sold, based on historical return rates. A summary of the allowance for sales returns, presented net of cost of goods sold, is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 5,206 | $ | 3,181 | $ | 3,403 | |||||||
Provision for sales returns | 165,470 | 134,909 | 102,875 | ||||||||||
Actual sales returns | (158,534 | ) | (132,884 | ) | (103,097 | ) | |||||||
Balance at end of fiscal year | $ | 12,142 | $ | 5,206 | $ | 3,181 | |||||||
Deferred Revenue and Customer Deposits | ' | ||||||||||||
Deferred Revenue and Customer Deposits | |||||||||||||
Deferred revenue represents the revenue associated with orders that have been shipped by the Company to its customers but have not yet been received by the customer. As the Company recognizes revenue when the merchandise is received by its customers, it is included as deferred revenue on the consolidated balance sheets while in-transit. | |||||||||||||
Customer deposits represent payments made by customers on custom orders. At the time of purchase the Company collects deposits for all custom orders equivalent to 50% of the customer purchase price. Custom order deposits are recognized as revenue when the merchandise is received by the customer or at the time of cancellation of the order by the customer. | |||||||||||||
Gift Certificates and Merchandise Credits | ' | ||||||||||||
Gift Certificates and Merchandise Credits | |||||||||||||
The Company sells gift certificates and issues merchandise credits to its customers in its stores and through its websites and product catalogs. Such gift certificates and merchandise credits do not have expiration dates. Revenue associated with gift certificates and merchandise credits is deferred until either (i) redemption of the gift certificate and merchandise credits or (ii) when the likelihood of redemption is remote and there exists no legal obligation to remit the value of unredeemed gift certificates or merchandise credits to the relevant jurisdictions (breakage). The breakage rate is based on monitoring of certificates issued, actual certificate redemptions and the Company’s analysis of when it believes it is remote that redemptions will occur. | |||||||||||||
Redeemed gift certificates and merchandise credits are recorded in net revenues. Breakage resulted in a reduction of selling, general and administrative expenses on the consolidated statements of operations of $2.9 million, $1.8 million, and $3.2 million in fiscal 2013, fiscal 2012, and fiscal 2011, respectively. | |||||||||||||
Self Insurance | ' | ||||||||||||
Self Insurance | |||||||||||||
The Company maintains insurance coverage for significant exposures, as well as those risks that, by law, must be insured. In the case of the Company’s health care coverage for employees, the Company has a managed self insurance program related to claims filed. Expenses related to this self insured program are computed on an actuarial basis, based on claims experience, regulatory requirements, an estimate of claims incurred but not yet reported (“IBNR”) and other relevant factors. The projections involved in this process are subject to uncertainty related to the timing and amount of claims filed, levels of IBNR, fluctuations in health care costs and changes to regulatory requirements. The Company had liabilities of $1.7 million related to health care coverage as of both February 1, 2014 and February 2, 2013. | |||||||||||||
The Company is self-insured for all workers’ compensation claims related to incidents incurred after November 1, 2013 and prior to November 1, 2007. The Company had liabilities of $1.7 million and $1.0 million related to workers’ compensation claims as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
The Company recognizes the fair value of stock-based compensation in its consolidated financial statements as compensation expense over the requisite service period. In addition, excess tax benefits related to stock-based compensation awards are reflected as financing cash flows. For service-only awards, compensation expense is recognized on a straight-line basis, net of forfeitures, over the requisite service period for the fair value of awards that actually vest. Fair value for restricted stock units is valued using the closing price of the Company’s stock on the date of grant. The fair value of each option award granted under the Company’s award plans subsequent to its initial public offering is estimated on the date of grant using a Black-Scholes Merton option pricing model with the following assumptions: | |||||||||||||
• | Expected volatility—Based on the lack of historical data for its own shares, the Company bases its expected volatility on a representative peer group that takes into account industry, market capitalization, stage of life cycle and capital structure. | ||||||||||||
• | Expected term—Represents the period of time that options granted are expected to be outstanding. The Company elected to calculate the expected term of the option awards using the “simplified method.” This election was made based on the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. Under the “simplified” calculation method, the expected term is calculated as an average of the vesting period and the contractual life of the options. | ||||||||||||
• | Risk-free interest rate—Based on the U.S. Treasury zero-coupon bond rate with a remaining term approximate of the expected term of the option. | ||||||||||||
• | Dividend yield—As the Company has not paid dividends, nor does it currently plan to pay dividends in the future, the assumed dividend yield is zero. | ||||||||||||
Prior to the Reorganization, Home Holdings had granted performance-based units that vested and became deliverable upon achievement or satisfaction of performance conditions specified in the performance agreement or upon the return on investment attained by certain of the equity investors in Home Holdings at defined liquidity events, including an initial public offering or certain sale or merger transactions. The Company estimated the fair value of performance-based units awarded to employees at the grant date based on the fair value of the Company on such date. The Company also considered the probability of achieving the established performance targets in determining its stock-based compensation with respect to these awards. The Company recognizes compensation cost over the performance period. When the performance is related to a specific event occurring in the future, the Company recognizes the full expense at the time of the event. At the time of the Reorganization, these performance-based units were replaced with shares of the Company’s common stock with substantially similar restrictions, terms and conditions. Refer to Note 13—Stock-Based Compensation. | |||||||||||||
Cost of Goods Sold | ' | ||||||||||||
Cost of Goods Sold | |||||||||||||
Cost of goods sold includes, but is not limited to, the direct cost of purchased merchandise, inventory shrinkage, inventory reserves and write-downs, inbound freight, all freight costs to get merchandise to the Company’s stores, design and buying costs, occupancy costs related to store operations, such as rent, property tax and common area maintenance, depreciation and amortization, and all logistics costs associated with shipping product to customers. | |||||||||||||
Selling, General and Administrative Expenses | ' | ||||||||||||
Selling, General and Administrative Expenses | |||||||||||||
Selling, general and administrative expenses include all operating costs not included in cost of goods sold. These expenses include payroll and payroll related expenses, store expenses other than occupancy and expenses related to many of the Company’s operations at its headquarters, including utilities, depreciation and amortization, credit card fees and marketing expense, which primarily includes catalog production, mailing and print advertising costs. All store pre-opening costs are included in selling, general and administrative expenses and are expensed as incurred. | |||||||||||||
Selling, general and administrative expenses for fiscal 2013 include a $33.7 million non-cash compensation charged related to the one-time, fully vested option granted to Gary Friedman upon his reappointment as Chairman and Co-Chief Executive Officer in July 2013, a $29.5 million non-cash compensation charge related to the performance-based vesting of certain shares granted to Mr. Friedman and $2.9 million of costs incurred in connection with the Company’s follow-on offerings in May 2013 and July 2013. | |||||||||||||
Selling, general and administrative expenses for fiscal 2012 include a $92.0 million non-cash compensation charge related to equity grants at the time of the Reorganization, as well as a non-cash compensation charge of $23.1 million related to the performance-based vesting of certain shares granted to the Company’s then Co-Chief Executive Officers, Mr. Friedman and Carlos Alberini. Costs incurred in connection with the initial public offering, including a fee of $7.0 million to Catterton Management Company, LLC (“Catterton”), Tower Three Partners LLC (“Tower Three”) and GJK Capital Advisors, LLC (“Glenhill”) in accordance with the Company’s management services agreement, payments of $2.2 million to certain former executives and bonus payments to employees of $1.3 million, were included in selling, general and administrative expenses in fiscal 2012. In addition, legal and other professional fees of $4.8 million, incurred in connection with the investigation conducted by the special committee of the board of directors relating to Mr. Friedman and the Company’s subsequent remedial actions, are included in fiscal 2012 selling, general and administrative expenses. | |||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||
Earnings (Loss) Per Share | |||||||||||||
Basic earnings (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potential dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, the Company generally takes into account all expected future events then known to it, other than changes in the tax law or rates which have not yet been enacted and which are not permitted to be considered. Accordingly, the Company may record a valuation allowance to reduce its net deferred tax assets to the amount that is more-likely-than-not to be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based upon management’s best estimate of the recoverability of the Company’s net deferred tax assets. Future taxable income and ongoing prudent and feasible tax planning are considered in determining the amount of the valuation allowance, and the amount of the allowance is subject to adjustment in the future. Specifically, in the event the Company were to determine that it is not more-likely-than-not able to realize its net deferred tax assets in the future, an adjustment to the valuation allowance would decrease income in the period such determination is made. This allowance does not alter the Company’s ability to utilize the underlying tax net operating loss and credit carryforwards in the future, the utilization of which is limited to achieving future taxable income. | |||||||||||||
The accounting standard for uncertainty in income taxes prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Differences between tax positions taken in a tax return and amounts recognized in the financial statements generally result in an increase in liability for income taxes payable or a reduction of an income tax refund receivable, or a reduction in a deferred tax asset or an increase in a deferred tax liability, or both. The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The carrying values of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the revolving line of credit approximate their estimated fair values. | |||||||||||||
The degree of judgment used in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established and the characteristics specific to the transaction. Financial instruments with readily available active quoted prices for which fair value can be measured generally will have a higher degree of pricing observability and a lesser degree of judgment used in measuring fair value. Conversely, financial instruments rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment used in measuring fair value. | |||||||||||||
The Company’s financial assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: | |||||||||||||
• | Level 1—Quoted prices are available in active markets for identical investments as of the reporting date. | ||||||||||||
• | Level 2—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. | ||||||||||||
• | Level 3—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs used in the determination of fair value require significant management judgment or estimation. | ||||||||||||
The Company’s financial assets and liabilities were classified as Level 1 as of February 1, 2014, and February 2, 2013. | |||||||||||||
Comprehensive Income (Loss) | |||||||||||||
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which consists of foreign currency translation adjustments. | |||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||
Comprehensive Income (Loss) | |||||||||||||
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which consists of foreign currency translation adjustments. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
Local currencies are generally considered the functional currencies outside the United States of America. Assets and liabilities denominated in non-U.S. currencies are translated at the rate of exchange prevailing on the date of the consolidated balance sheets and revenues and expenses are translated at average rates of exchange for the period. The related translation gains (losses) are reflected in the accumulated other comprehensive income (loss) section of the consolidated statements of stockholders’ equity. Foreign currency gains (losses) resulting from foreign currency transactions are included in selling, general and administrative expenses on the consolidated statements of operations and have not been material in all periods presented. | |||||||||||||
Recently Issued Accounting Standards | ' | ||||||||||||
Recently Issued Accounting Standards | |||||||||||||
Accounting for Leases | |||||||||||||
The Financial Accounting Standards Board (“FASB”) is currently working on amendments to existing accounting standards governing a number of areas including, but not limited to, accounting for leases. In May 2013, the FASB issued a new exposure draft, Leases (the “Exposure Draft”), which would replace the existing guidance in ASC 840. Under the Exposure Draft, among other changes in practice, a lessee’s rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. Other significant provisions of the Exposure Draft include (i) defining the “lease term” to include the noncancellable period together with periods for which there is a significant economic incentive for the lessee to extend or not terminate the lease; (ii) defining the initial lease liability to be recorded on the balance sheet to contemplate only those variable lease payments that depend on an index or that are in substance “fixed”; and (iii) a dual approach for determining whether lease expense is recognized on a straight-line or accelerated basis, depending on whether the lessee is expected to consume more than an insignificant portion of the leased asset’s economic benefits. The comment period for the Exposure Draft ended on September 13, 2013. If and when effective, this Exposure Draft will likely have a significant impact on the Company’s consolidated financial statements. However, as the standard-setting process is still ongoing, the Company is unable to determine the impact this proposed change in accounting standards will have on its consolidated financial statements. | |||||||||||||
Presentation of Unrecognized Tax Benefits | |||||||||||||
In July 2013, the FASB issued an Accounting Standards Update, which requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This guidance is effective for annual and interim reporting periods beginning after December 15, 2013, with early adoption permitted. The Company believes the adoption of this pronouncement will not have a material impact on its consolidated financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Property and Equipment Useful Lives | ' | ||||||||||||
Depreciation is calculated using the straight-line method, generally using the following useful lives: | |||||||||||||
Category of Property and Equipment | Useful Life | ||||||||||||
Building | 40 years | ||||||||||||
Furniture, fixtures and equipment | 3 to 7 years | ||||||||||||
Machinery and equipment | 3 to 5 years | ||||||||||||
Computer software | 3 years | ||||||||||||
Summary of Allowance for Sales Returns, Net of Cost of Goods Sold | ' | ||||||||||||
A summary of the allowance for sales returns, presented net of cost of goods sold, is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 5,206 | $ | 3,181 | $ | 3,403 | |||||||
Provision for sales returns | 165,470 | 134,909 | 102,875 | ||||||||||
Actual sales returns | (158,534 | ) | (132,884 | ) | (103,097 | ) | |||||||
Balance at end of fiscal year | $ | 12,142 | $ | 5,206 | $ | 3,181 | |||||||
Prepaid_Expense_and_Other_Curr1
Prepaid Expense and Other Current Assets (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Prepaid Expense and Other Current Assets | ' | ||||||||
Prepaid expense and other current assets consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Capitalized catalog costs | $ | 49,274 | $ | 43,828 | |||||
Vendor deposits | 36,694 | 20,383 | |||||||
Prepaid expense and other current assets | 17,185 | 12,818 | |||||||
Total prepaid expense and other current assets | $ | 103,153 | $ | 77,029 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment consists of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Leasehold improvements (1) | $ | 222,831 | $ | 155,338 | |||||
Computer software | 50,005 | 33,459 | |||||||
Furniture, fixtures and equipment | 35,419 | 27,076 | |||||||
Machinery and equipment | 11,374 | 8,866 | |||||||
Land | 5,396 | 2,388 | |||||||
Building | 2,205 | 2,205 | |||||||
Build-to-suit property (2) | 33,496 | — | |||||||
Equipment under capital leases (3) | 6,222 | 8,879 | |||||||
Total property and equipment | 366,948 | 238,211 | |||||||
Less—accumulated depreciation and amortization | (152,039 | ) | (126,805 | ) | |||||
Total property and equipment—net | $ | 214,909 | $ | 111,406 | |||||
-1 | Leasehold improvements include construction in progress of $35.2 million and $25.9 million as of February 1, 2014, and February 2, 2013, respectively. | ||||||||
-2 | The Company capitalizes assets and records a corresponding long-term liability for build-to-suit lease agreements where it is considered the owner, for accounting purposes, during the construction period. For buildings under build-to-suit lease arrangements where the Company has taken occupancy and which do not qualify for sales recognition under the sale-leaseback accounting guidance, the Company has determined that it continues to be deemed the owner of these buildings. This is principally due to the Company’s significant investment in tenant improvements. As a result, the buildings are depreciated over the shorter of their useful lives or the related leases’ terms. | ||||||||
-3 | Accumulated depreciation and amortization include accumulated amortization related to equipment under capital leases of $6.0 million and $6.8 million as of February 1, 2014, and February 2, 2013, respectively. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||
The following sets forth the goodwill and intangible assets as of February 1, 2014 (dollar amounts in thousands): | |||||||||||||||||||||
Gross | Accumulated | Foreign | Net Book | Useful | |||||||||||||||||
Carrying | Amortization | Currency | Value | Life | |||||||||||||||||
Amount | Translation | ||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||
Core technologies | $ | 6,580 | $ | (6,580 | ) | $ | — | $ | — | 5 years | |||||||||||
Fair value of leases | |||||||||||||||||||||
Fair market write-up | 10,443 | (9,187 | ) | 42 | 1,298 | (2 | ) | ||||||||||||||
Fair market write-down | (2,591 | ) | 2,072 | — | (519 | )(1) | (2 | ) | |||||||||||||
Total intangible assets subject to amortization | 14,432 | (13,695 | ) | 42 | 779 | ||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||
Goodwill | 122,285 | — | 139 | 122,424 | |||||||||||||||||
Trademarks and domain names | 47,410 | — | — | 47,410 | |||||||||||||||||
Total intangible assets | $ | 184,127 | $ | (13,695 | ) | $ | 181 | $ | 170,613 | ||||||||||||
-1 | The fair market write-down of leases is included in other long-term obligations on the consolidated balance sheets. | ||||||||||||||||||||
-2 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||||||
The following sets forth the goodwill and intangible assets as of February 2, 2013 (dollar amounts in thousands): | |||||||||||||||||||||
Gross | Accumulated | Foreign | Net Book | Useful | |||||||||||||||||
Carrying | Amortization | Currency | Value | Life | |||||||||||||||||
Amount | Translation | ||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||
Core technologies | $ | 6,580 | $ | (6,141 | ) | $ | — | $ | 439 | 5 years | |||||||||||
Fair value of leases | |||||||||||||||||||||
Fair market write-up | 10,737 | (8,511 | ) | 48 | 2,274 | (2 | ) | ||||||||||||||
Fair market write-down | (2,591 | ) | 1,789 | — | (802 | )(1) | (2 | ) | |||||||||||||
Total intangible assets subject to amortization | 14,726 | (12,863 | ) | 48 | 1,911 | ||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||
Goodwill | 122,285 | — | 316 | 122,601 | |||||||||||||||||
Trademarks and domain names | 47,410 | — | — | 47,410 | |||||||||||||||||
Total intangible assets | $ | 184,421 | $ | (12,863 | ) | $ | 364 | $ | 171,922 | ||||||||||||
-1 | The fair market write-down of leases is included in other long-term obligations on the consolidated balance sheets. | ||||||||||||||||||||
-2 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||||||
Schedule of Remaining Amortization of Intangible Assets | ' | ||||||||||||||||||||
The following table sets forth the remaining amortization of the intangible assets based on a straight-line method of amortization over the respective useful lives as of February 1, 2014 (in thousands): | |||||||||||||||||||||
2014 | $ | 608 | |||||||||||||||||||
2015 | 96 | ||||||||||||||||||||
2016 | 56 | ||||||||||||||||||||
2017 | 19 | ||||||||||||||||||||
Total amortization | $ | 779 | |||||||||||||||||||
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Expenses | ' | ||||||||
Accounts payable and accrued expenses consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 116,306 | $ | 81,608 | |||||
Accrued compensation | 29,498 | 16,621 | |||||||
Accrued freight and duty | 21,309 | 17,639 | |||||||
Accrued sales taxes | 13,995 | 12,783 | |||||||
Accrued occupancy | 6,306 | 5,842 | |||||||
Accrued catalog costs | 7,663 | 6,906 | |||||||
Accrued professional fees | 3,119 | 2,114 | |||||||
Other accrued expenses | 8,582 | 1,840 | |||||||
Total accounts payable and accrued expenses | $ | 206,778 | $ | 145,353 | |||||
Schedule of Other Current Liabilities | ' | ||||||||
Other current liabilities consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Federal and state tax payable | $ | 22,254 | $ | 395 | |||||
Unredeemed gift certificate and merchandise credit liability | 18,830 | 18,435 | |||||||
Allowance for sales returns | 12,142 | 5,206 | |||||||
Capital lease obligation—current | 1,807 | 2,925 | |||||||
Other liabilities | 6,565 | 5,467 | |||||||
Total other current liabilities | $ | 61,598 | $ | 32,428 | |||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Schedule of Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities consist of the following (in thousands): | |||||||||
February 1, | February 2, | ||||||||
2014 | 2013 | ||||||||
Financing obligations under build-to-suit transactions | $ | 33,165 | $ | — | |||||
Long-term notes payable for share repurchases | 2,710 | — | |||||||
Unrecognized tax benefits | 1,739 | 2,311 | |||||||
Other long-term liabilities | 1,617 | 2,982 | |||||||
Total other long-term liabilities | $ | 39,231 | $ | 5,293 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Summary of Income Tax Expense (Benefit) | ' | ||||||||||||
The following is a summary of the income tax expense (benefit) (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Federal | $ | 21,593 | $ | — | $ | — | |||||||
State | 4,182 | 236 | 331 | ||||||||||
Foreign | (454 | ) | (387 | ) | 595 | ||||||||
Total current tax expense (benefit) | 25,321 | (151 | ) | 926 | |||||||||
Deferred | |||||||||||||
Federal | 6,215 | (48,745 | ) | (76 | ) | ||||||||
State | (596 | ) | (12,903 | ) | 223 | ||||||||
Foreign | (17 | ) | (224 | ) | 48 | ||||||||
Total deferred tax expense (benefit) | 5,602 | (61,872 | ) | 195 | |||||||||
Total income tax expense (benefit) | $ | 30,923 | $ | (62,023 | ) | $ | 1,121 | ||||||
Schedule of Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate | ' | ||||||||||||
A reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision at federal statutory tax rate | 35 | % | 35 | % | 34 | % | |||||||
State income taxes—net of federal tax impact | 5.8 | 0.7 | 5.6 | ||||||||||
Stock-based compensation | 21.3 | (30.0 | ) | 12.4 | |||||||||
Valuation allowance | (0.1 | ) | 76.5 | (49.4 | ) | ||||||||
Foreign income | (0.2 | ) | 0.6 | (2.0 | ) | ||||||||
Net adjustments to tax accruals and other | 1.2 | 0.1 | 4.6 | ||||||||||
Effective tax rate | 63 | % | 82.9 | % | 5.2 | % | |||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
February 1, | February 2, | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets (liabilities) | |||||||||||||
Accrued expense | $ | 22,164 | $ | 11,026 | |||||||||
State tax benefit | 428 | (931 | ) | ||||||||||
Inventory | 19,350 | 14,215 | |||||||||||
Deferred revenue | 1,891 | 20,144 | |||||||||||
Net operating loss carryforwards | — | 12,337 | |||||||||||
Construction allowance | (1,694 | ) | (1,698 | ) | |||||||||
Stock-based compensation | 1,038 | — | |||||||||||
Prepaid expense and other | (21,896 | ) | (18,056 | ) | |||||||||
Current deferred tax assets | 21,281 | 37,037 | |||||||||||
Valuation allowance | (26 | ) | (31 | ) | |||||||||
Net current deferred tax assets | 21,255 | 37,006 | |||||||||||
Non-current deferred tax assets (liabilities) | |||||||||||||
State tax benefit | (2,536 | ) | (2,040 | ) | |||||||||
Stock-based compensation | 34,005 | 21,231 | |||||||||||
Deferred lease credits | 12,884 | 9,687 | |||||||||||
Property and equipment | (12,362 | ) | (5,975 | ) | |||||||||
Net operating loss carryforwards | 884 | 262 | |||||||||||
U.S. impact of Canadian transfer pricing | 1,780 | 2,091 | |||||||||||
Trademarks | (19,327 | ) | (19,361 | ) | |||||||||
Other | 1,832 | 1,240 | |||||||||||
Non-current deferred tax assets | 17,160 | 7,135 | |||||||||||
Valuation allowance | (180 | ) | (262 | ) | |||||||||
Net non-current deferred tax assets | 16,980 | 6,873 | |||||||||||
Net deferred tax assets | $ | 38,235 | $ | 43,879 | |||||||||
Schedule of Reconciliation of Valuation Allowance | ' | ||||||||||||
A reconciliation of the valuation allowance is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 293 | $ | 57,484 | $ | 68,318 | |||||||
Charged to expense | — | (57,185 | ) | 299 | |||||||||
Net changes in deferred tax assets and liabilities | (87 | ) | (6 | ) | (11,133 | ) | |||||||
Balance at end of fiscal year | $ | 206 | $ | 293 | $ | 57,484 | |||||||
Schedule of Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the exposures related to unrecognized tax benefits is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of fiscal year | $ | 1,841 | $ | 2,505 | $ | 9,015 | |||||||
Gross decreases—prior period tax positions | (151 | ) | (57 | ) | — | ||||||||
Gross decreases—current period tax positions | — | — | (14 | ) | |||||||||
Consent for accounting method change | — | — | (6,496 | ) | |||||||||
Lapses in statute of limitations | (295 | ) | (607 | ) | — | ||||||||
Balance at end of fiscal year | $ | 1,395 | $ | 1,841 | $ | 2,505 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Weighted-Average Shares Used for Earnings Per Share | ' | ||||||||||||
The weighted-average shares used for earnings per share is as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted-average shares—basic | 38,671,564 | 9,428,828 | 468 | ||||||||||
Effect of dilutive stock-based awards | 1,745,066 | — | — | ||||||||||
Weighted-average shares—diluted | 40,416,630 | 9,428,828 | 468 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||
A summary of stock option activity under the Option Plan and the Stock Incentive Plan for fiscal 2013 is as follows: | |||||||||||||||||||||
Options | Weighted-Average | ||||||||||||||||||||
Exercise Price | |||||||||||||||||||||
Outstanding—February 2, 2013 | 8,159,577 | $ | 41.41 | ||||||||||||||||||
Granted | 1,417,500 | 70.32 | |||||||||||||||||||
Exercised | (317,771 | ) | 27.26 | ||||||||||||||||||
Forfeited | (95,675 | ) | 35.75 | ||||||||||||||||||
Retired | (16,325 | ) | 29 | ||||||||||||||||||
Outstanding—February 1, 2014 | 9,147,306 | $ | 46.46 | ||||||||||||||||||
Schedule of Assumptions Used to Estimate Fair Value of Stock Options Issued | ' | ||||||||||||||||||||
The fair value of stock options issued during fiscal 2013 and 2012 was estimated on the date of grant using the following assumptions: | |||||||||||||||||||||
Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Expected volatility | 39.7 | % | 35.4 | % | |||||||||||||||||
Expected life (years) | 6.7 | 5.3 | |||||||||||||||||||
Risk-free interest rate | 1.9 | % | 1.6 | % | |||||||||||||||||
Dividend yield | — | — | |||||||||||||||||||
Summary of Additional Information about Stock Options | ' | ||||||||||||||||||||
A summary of additional information about stock options is as follows: | |||||||||||||||||||||
Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Weighted-average fair value per share of stock options granted | $ | 30.49 | $ | 6.34 | |||||||||||||||||
Aggregate intrinsic value of stock options exercised (in thousands) | $ | 11,623 | $ | — | |||||||||||||||||
Fair value of stock options vested (in thousands) | $ | 33,871 | $ | 51,063 | |||||||||||||||||
Schedule of Stock Options Outstanding, Vested or Expected to Vest, and Exercisable | ' | ||||||||||||||||||||
Information about stock options outstanding, vested or expected to vest, and exercisable as of February 1, 2014 is as follows: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||||||
Options | Average | Average | Options | Average | |||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (in years) | |||||||||||||||||||||
$24.00 - $29.00 | 1,736,279 | 8.5 | $ | 27.51 | 1,736,279 | $ | 27.51 | ||||||||||||||
$32.35 - $39.00 | 141,875 | 8.75 | 33.89 | 5,000 | 32.46 | ||||||||||||||||
$46.50 - $46.50 | 5,953,652 | 4.54 | 46.5 | 5,953,652 | 46.5 | ||||||||||||||||
$58.96 - $69.64 | 265,500 | 9.41 | 61.54 | — | — | ||||||||||||||||
$74.03 - $76.80 | 1,050,000 | 9.41 | 75.46 | 1,000,000 | 75.43 | ||||||||||||||||
Total | 9,147,306 | 6.06 | $ | 46.46 | 8,694,931 | $ | 46.03 | ||||||||||||||
Vested or expected to vest as of February 1, 2014 | 9,113,138 | 6.05 | $ | 46.43 | |||||||||||||||||
Summary of Restricted Stock Award Activity | ' | ||||||||||||||||||||
A summary of restricted stock award activity under the Stock Incentive Plan for fiscal 2013 is as follows: | |||||||||||||||||||||
Options | Weighted-Average | Intrinsic | |||||||||||||||||||
Grant Date Fair Value | Value | ||||||||||||||||||||
Outstanding—February 2, 2013 | — | $ | — | ||||||||||||||||||
Granted | 316,580 | 65.37 | |||||||||||||||||||
Released | (13,333 | ) | 57.01 | ||||||||||||||||||
Cancelled | (13,500 | ) | 73.92 | ||||||||||||||||||
Outstanding—February 1, 2014 | 289,747 | $ | 65.36 | $ | 16,440,000 | ||||||||||||||||
Summary of Additional Information about Restricted Stock Awards | ' | ||||||||||||||||||||
A summary of additional information about restricted stock awards is as follows: | |||||||||||||||||||||
Fiscal 2013 | Fiscal 2012 | ||||||||||||||||||||
Weighted-average fair value per share of awards granted | $ | 65.37 | $ | 24 | |||||||||||||||||
Grant date fair value of awards released (in thousands) | $ | 760 | $ | 975 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Future Minimum Rental Payments under Leases | ' | ||||||||||||||||
The aggregate future minimum rental payments under leases in effect as of February 1, 2014, are as follows (in thousands): | |||||||||||||||||
Capital | Operating | Other | Total | ||||||||||||||
Leases (1) | Leases | Commitments (2) | |||||||||||||||
2014 | $ | 1,844 | $ | 68,709 | $ | 48,352 | $ | 118,905 | |||||||||
2015 | 235 | 61,396 | 8,544 | 70,175 | |||||||||||||
2016 | 106 | 57,972 | 8,966 | 67,044 | |||||||||||||
2017 | 50 | 53,775 | 9,276 | 63,101 | |||||||||||||
2018 | 21 | 46,824 | 7,383 | 54,228 | |||||||||||||
Thereafter | — | 323,991 | 60,480 | 384,471 | |||||||||||||
Minimum lease commitments | 2,256 | $ | 612,667 | $ | 143,001 | $ | 757,924 | ||||||||||
Less—amount representing interest | (60 | ) | |||||||||||||||
Present value of capital lease obligations | 2,196 | ||||||||||||||||
Less—current capital lease obligations | (1,807 | ) | |||||||||||||||
Long-term capital lease obligations | $ | 389 | |||||||||||||||
Minimum and Contingent Rental Expense under Operating Leases | ' | ||||||||||||||||
Minimum and contingent rental expense under operating leases is as follows (in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
February 1, | February 2, | January 28, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Operating leases | |||||||||||||||||
Minimum rental expense | $ | 66,686 | $ | 52,750 | $ | 51,665 | |||||||||||
Contingent rental expense | 6,208 | 3,318 | 1,456 | ||||||||||||||
Total operating leases | $ | 72,894 | $ | 56,068 | $ | 53,121 | |||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Net Revenues | ' | ||||||||||||
The Company classifies its sales into furniture and non-furniture product lines. Furniture includes both indoor and outdoor furniture. Non-furniture includes lighting, textiles, accessories and home décor. Net revenues in each category were as follows (in thousands): | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | January 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Furniture | $ | 868,650 | $ | 628,092 | $ | 477,730 | |||||||
Non-furniture | 682,311 | 564,954 | 480,354 | ||||||||||
Total net revenues | $ | 1,550,961 | $ | 1,193,046 | $ | 958,084 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Data | ' | ||||||||||||||||
Quarterly financial data for fiscal 2013 and fiscal 2012 are set forth below (in thousands, except share and per share amounts): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2013 | May 4, | August 3, | November 2, | February 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Net revenues | $ | 301,337 | $ | 382,098 | $ | 395,832 | $ | 471,694 | |||||||||
Gross profit | 101,877 | 139,226 | 140,800 | 174,977 | |||||||||||||
Net income (loss) | (161 | ) | (17,835 | ) | 9,549 | 26,642 | |||||||||||
Weighted-average shares used in computing basic net income (loss) per share | 38,076,026 | 38,712,000 | 38,888,208 | 39,008,383 | |||||||||||||
Basic net income (loss) per share | $ | — | $ | (0.46 | ) | $ | 0.25 | $ | 0.68 | ||||||||
Weighted-average shares used in computing diluted net income (loss) per share | 38,076,026 | 38,712,000 | 41,053,211 | 41,119,175 | |||||||||||||
Diluted net income (loss) per share | $ | — | $ | (0.46 | ) | $ | 0.23 | $ | 0.65 | ||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2012 | April 28, | July 28, | October 27, | February 2, | |||||||||||||
2012 | 2012 | 2012 | 2013 | ||||||||||||||
Net revenues | $ | 217,914 | $ | 292,906 | $ | 284,171 | $ | 398,055 | |||||||||
Gross profit | 75,268 | 114,127 | 101,880 | 145,174 | |||||||||||||
Net income (loss) | (3,728 | ) | 17,616 | 1,685 | (28,362 | ) | |||||||||||
Weighted-average shares used in computing basic and diluted net income (loss) per share | 1,000 | 1,000 | 1,000 | 35,692,064 | |||||||||||||
Basic and diluted net income (loss) per share | $ | (3,728 | ) | $ | 17,616 | $ | 1,685 | $ | (0.79 | ) |
Nature_of_Business_Additional_
Nature of Business - Additional Information (Detail) | 12 Months Ended |
Feb. 01, 2014 | |
Store | |
State | |
Collaboration Arrangement Disclosure [Abstract] | ' |
Number of retail stores | 70 |
Number of outlet stores | 17 |
Number of states | 29 |
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | Feb. 01, 2014 | Aug. 14, 2013 | Jul. 17, 2013 | 20-May-13 | Feb. 02, 2013 | Nov. 07, 2012 | Nov. 01, 2012 |
Reorganization [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 39,124,764 | ' | ' | ' | 37,967,635 | ' | 32,188,891 |
Common stock, shares issued | 39,124,764 | ' | 8,000,000 | 9,974,985 | 38,856,251 | 4,782,609 | ' |
Common stock, per share | $24 | $70 | $70 | $50 | ' | $24 | ' |
Common stock sold under initial public offering | ' | ' | ' | ' | ' | 381,723 | ' |
Additional shares sold under initial public offering, over-allotment option | ' | ' | ' | ' | ' | 774,650 | ' |
Additional shares sold under follow-on offering, over-allotment options | ' | 1,200,000 | ' | 1,301,085 | ' | ' | ' |
Number of shares sold under follow-on offering, over-allotment options | ' | 0 | ' | 0 | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 31, 2013 | 31-May-13 | Feb. 02, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | Aug. 03, 2013 | 31-May-13 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Feb. 02, 2013 | Jul. 31, 2013 | 31-May-13 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 01, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | Former Executives [Member] | Former Executives [Member] | Bonus Payments to Employees [Member] | Bonus Payments to Employees [Member] | Options Granted [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Equity Grants [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Restoration Hardware Holdings, Inc. [Member] | |
Accounts | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Options Granted [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Equity Grants [Member] | ||||||||||
Unit | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||
Summary Of Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents liquid investments, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Three months or less |
Cash and cash equivalent, FDIC insured amount | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalent, CDIC insured amount | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of bank account balance in excess of FDIC insurance limit | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of bank account balance in excess of CDIC insurance limit | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | ' | 800,000 | ' | ' | 1,600,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory reserve balances | ' | ' | 5,900,000 | ' | ' | 9,300,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | ' | ' | ' | ' | ' | 83,000,000 | 98,800,000 | 66,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of catalog | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized catalog costs and other current assets | ' | ' | 43,828,000 | ' | ' | 49,274,000 | 43,828,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting unit | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment to goodwill | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment to trademarks | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge on long-lived assets | ' | ' | ' | ' | ' | 1,385,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts capitalized under build-to-suit transactions | ' | ' | ' | ' | ' | 33,494,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer deposits | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue recognition, gift cards, breakage | ' | ' | ' | ' | ' | 2,900,000 | 1,800,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities related to health care coverage | ' | ' | 1,700,000 | ' | ' | 1,700,000 | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities related to workers' compensation | ' | ' | 1,000,000 | ' | ' | 1,700,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed dividend yield | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash compensation charge | ' | ' | ' | ' | ' | 67,622,000 | 116,183,000 | 1,557,000 | ' | ' | ' | ' | ' | 33,700,000 | ' | 26,200,000 | 3,300,000 | 23,100,000 | 92,000,000 | ' | ' | ' | 33,700,000 | 29,500,000 | 23,100,000 | 92,000,000 | ' |
Cost incurred in connection with follow-on offerings | 2,100,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | 2,900,000 | 2,900,000 | ' | ' | ' | ' | ' | ' |
Management fee | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | 502,029,000 | 505,485,000 | 329,506,000 | ' | 2,200,000 | 2,200,000 | 1,300,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for legal and other professional fees | ' | ' | ' | $2,800,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,800,000 | ' | ' | ' | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Detail) | 12 Months Ended |
Feb. 01, 2014 | |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life | '40 years |
Computer Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life | '3 years |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life | '3 years |
Minimum [Member] | Machinery and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life | '3 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life | '7 years |
Maximum [Member] | Machinery and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life | '5 years |
Significant_Accounting_Policie5
Significant Accounting Policies - Summary of Allowance for Sales Returns, Net of Cost of Goods Sold (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Balance at beginning of fiscal year | $5,206 | $3,181 | $3,403 |
Provision for sales returns | 165,470 | 134,909 | 102,875 |
Actual sales returns | -158,534 | -132,884 | -103,097 |
Balance at end of fiscal year | $12,142 | $5,206 | $3,181 |
Prepaid_Expense_and_Other_Curr2
Prepaid Expense and Other Current Assets - Prepaid Expense and Other Current Assets (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Capitalized catalog costs | $49,274 | $43,828 |
Vendor deposits | 36,694 | 20,383 |
Prepaid expense and other current assets | 17,185 | 12,818 |
Total prepaid expense and other current assets | $103,153 | $77,029 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $366,948 | $238,211 |
Less-accumulated depreciation and amortization | -152,039 | -126,805 |
Total property and equipment-net | 214,909 | 111,406 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 222,831 | 155,338 |
Computer Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 50,005 | 33,459 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 35,419 | 27,076 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 11,374 | 8,866 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 5,396 | 2,388 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 2,205 | 2,205 |
Equipment under Capital Leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 6,222 | 8,879 |
Less-accumulated depreciation and amortization | -6,000 | -6,800 |
Build-to-Suit Property [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $33,496 | ' |
Property_and_Equipment_Schedul1
Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $366,948 | $238,211 |
Accumulated depreciation and amortization | 152,039 | 126,805 |
Equipment under Capital Leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 6,222 | 8,879 |
Accumulated depreciation and amortization | 6,000 | 6,800 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $35,200 | $25,900 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' | ' |
Depreciation expense | $26.50 | $24.30 | $26.20 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $184,127 | $184,421 |
Accumulated Amortization | -13,695 | -12,863 |
Foreign Currency Translation | 181 | 364 |
Net Book Value | 170,613 | 171,922 |
Core Technologies [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 6,580 | 6,580 |
Accumulated Amortization | -6,580 | -6,141 |
Foreign Currency Translation | ' | ' |
Net Book Value | ' | 439 |
Useful Life | '5 years | '5 years |
Fair Market Write-up [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 10,443 | 10,737 |
Accumulated Amortization | -9,187 | -8,511 |
Foreign Currency Translation | 42 | 48 |
Net Book Value | 1,298 | 2,274 |
Fair Market Write-down [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | -2,591 | -2,591 |
Accumulated Amortization | 2,072 | 1,789 |
Foreign Currency Translation | ' | ' |
Net Book Value | -519 | -802 |
Total Intangible Assets Subject to Amortization [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 14,432 | 14,726 |
Accumulated Amortization | -13,695 | -12,863 |
Foreign Currency Translation | 42 | 48 |
Net Book Value | 779 | 1,911 |
Goodwill [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 122,285 | 122,285 |
Accumulated Amortization | ' | ' |
Foreign Currency Translation | 139 | 316 |
Net Book Value | 122,424 | 122,601 |
Trademarks and Domain Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 47,410 | 47,410 |
Accumulated Amortization | ' | ' |
Foreign Currency Translation | ' | ' |
Net Book Value | $47,410 | $47,410 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Intangible Liability Disclosure [Abstract] | ' | ' | ' |
Amortization expense related to intangible assets | $1.10 | $2.40 | $2.80 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Schedule of Remaining Amortization of Intangible Assets (Detail) (USD $) | Feb. 01, 2014 |
In Thousands, unless otherwise specified | |
Intangible Liability Disclosure [Abstract] | ' |
2014 | $608 |
2015 | 96 |
2016 | 56 |
2017 | 19 |
Total amortization | $779 |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other Current Liabilities - Accounts Payable and Accrued Expenses (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accounts payable | $116,306 | $81,608 |
Accrued compensation | 29,498 | 16,621 |
Accrued freight and duty | 21,309 | 17,639 |
Accrued sales taxes | 13,995 | 12,783 |
Accrued occupancy | 6,306 | 5,842 |
Accrued catalog costs | 7,663 | 6,906 |
Accrued professional fees | 3,119 | 2,114 |
Other accrued expenses | 8,582 | 1,840 |
Total accounts payable and accrued expenses | $206,778 | $145,353 |
Accounts_Payable_Accrued_Expen3
Accounts Payable, Accrued Expenses and Other Current Liabilities - Additional Information (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accounts payable includes negative cash balances | $25.50 | $28.10 |
Accounts_Payable_Accrued_Expen4
Accounts Payable, Accrued Expenses and Other Current Liabilities - Schedule of Other Current Liabilities (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 29, 2011 |
In Thousands, unless otherwise specified | ||||
Payables And Accruals [Abstract] | ' | ' | ' | ' |
Federal and state tax payable | $22,254 | $395 | ' | ' |
Unredeemed gift certificate and merchandise credit liability | 18,830 | 18,435 | ' | ' |
Allowance for sales returns | 12,142 | 5,206 | 3,181 | 3,403 |
Capital lease obligation-current | 1,807 | 2,925 | ' | ' |
Other liabilities | 6,565 | 5,467 | ' | ' |
Total other current liabilities | $61,598 | $32,428 | ' | ' |
Other_LongTerm_Liabilities_Sch
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Financing obligations under build-to-suit transactions | $33,165 | ' |
Long-term notes payable for share repurchases | 2,710 | ' |
Unrecognized tax benefits | 1,739 | 2,311 |
Other long-term liabilities | 1,617 | 2,982 |
Total other long-term liabilities | $39,231 | $5,293 |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
Nov. 07, 2012 | Nov. 01, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Aug. 31, 2011 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Revolving line of credit current borrowing capacity | ' | ' | ' | ' | $190,000,000 |
Date of maturity | ' | ' | 3-Aug-16 | ' | ' |
Revolving line of credit current borrowing capacity | ' | ' | 417,500,000 | ' | ' |
Term loan facility available to Restoration Hardware Canada | ' | ' | 15,000,000 | ' | ' |
Maturity date of term loan facility | ' | ' | 6-Jul-15 | ' | ' |
Increase in revolving line of credit | ' | 100,000,000 | ' | ' | ' |
Payments to revolving line of credit | 75,700,000 | ' | ' | ' | ' |
Repayment of outstanding term loan | 15,000,000 | ' | ' | ' | ' |
Weighted-average interest rate for the revolving line of credit | ' | ' | 2.80% | ' | ' |
Outstanding revolving line of credit | ' | ' | 85,425,000 | 82,501,000 | ' |
Undrawn borrowing availability under the revolving line of credit | ' | ' | 261,700,000 | ' | ' |
Outstanding letters of credit | ' | ' | 18,900,000 | 19,500,000 | ' |
Fixed charge coverage ratio covenant, fixed amount available under revolving line of credit | ' | ' | 17,500,000 | ' | ' |
Fixed charge coverage ratio covenant, percentage of commitments or domestic borrowing base | ' | ' | 10.00% | ' | ' |
Fixed charge coverage ratio | ' | ' | 1 | ' | ' |
Availability under revolving line of credit for extensions of credit, fixed amount | ' | ' | 20,000,000 | ' | ' |
Availability under revolving line of credit for extensions of credit, percentage of commitments or domestic borrowing base | ' | ' | 15.00% | ' | ' |
Restoration Hardware Canada, Inc. [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Revolving line of credit current borrowing capacity | ' | ' | $10,000,000 | ' | ' |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Current | ' | ' | ' |
Current, Federal | $21,593 | ' | ' |
Current, State | 4,182 | 236 | 331 |
Current, Foreign | -454 | -387 | 595 |
Total current tax expense (benefit) | 25,321 | -151 | 926 |
Deferred | ' | ' | ' |
Deferred, Federal | 6,215 | -48,745 | -76 |
Deferred, State | -596 | -12,903 | 223 |
Deferred, Foreign | -17 | -224 | 48 |
Total deferred tax expense (benefit) | 5,602 | -61,872 | 195 |
Total income tax expense (benefit) | $30,923 | ($62,023) | $1,121 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Provision at federal statutory tax rate | 35.00% | 35.00% | 34.00% |
State income taxes-net of federal tax impact | 5.80% | 0.70% | 5.60% |
Stock-based compensation | 21.30% | -30.00% | 12.40% |
Valuation allowance | -0.10% | 76.50% | -49.40% |
Foreign income | -0.20% | 0.60% | -2.00% |
Net adjustments to tax accruals and other | 1.20% | 0.10% | 4.60% |
Effective tax rate | 63.00% | 82.90% | 5.20% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets (liabilities) | ' | ' |
Accrued expense | $22,164 | $11,026 |
State tax benefit | 428 | -931 |
Inventory | 19,350 | 14,215 |
Deferred revenue | 1,891 | 20,144 |
Net operating loss carryforwards | ' | 12,337 |
Construction allowance | -1,694 | -1,698 |
Stock-based compensation | 1,038 | ' |
Prepaid expense and other | -21,896 | -18,056 |
Current deferred tax assets | 21,281 | 37,037 |
Valuation allowance | -26 | -31 |
Net current deferred tax assets | 21,255 | 37,006 |
Non-current deferred tax assets (liabilities) | ' | ' |
State tax benefit | -2,536 | -2,040 |
Stock-based compensation | 34,005 | 21,231 |
Deferred lease credits | 12,884 | 9,687 |
Property and equipment | -12,362 | -5,975 |
Net operating loss carryforwards | 884 | 262 |
U.S. impact of Canadian transfer pricing | 1,780 | 2,091 |
Trademarks | -19,327 | -19,361 |
Other | 1,832 | 1,240 |
Non-current deferred tax assets | 17,160 | 7,135 |
Valuation allowance | -180 | -262 |
Net non-current deferred tax assets | 16,980 | 6,873 |
Net deferred tax assets | $38,235 | $43,879 |
Income_Taxes_Schedule_of_Recon1
Income Taxes - Schedule of Reconciliation of Valuation Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of fiscal year | $293 | $57,484 | $68,318 |
Charged to expense | ' | -57,185 | 299 |
Net changes in deferred tax assets and liabilities | -87 | -6 | -11,133 |
Balance at end of fiscal year | $206 | $293 | $57,484 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 29, 2011 | Feb. 02, 2013 | Feb. 02, 2013 | |
U.S. [Member] | U.S. [Member] | |||||
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' |
Cumulative profitability position | '3 years | '3 years | ' | ' | ' | ' |
Net changes in deferred tax assets and liabilities | $87,000 | $6,000 | $11,133,000 | ' | $57,200,000 | $57,200,000 |
Valuation allowance retained against deferred tax assets | 206,000 | 293,000 | 57,484,000 | 68,318,000 | ' | ' |
State net operating loss carryovers | 8,700,000 | ' | ' | ' | ' | ' |
Expiration of federal and state net operating loss carryovers | 'The state net operating loss carryovers will expire between 2014 and 2032. | ' | ' | ' | ' | ' |
Ownership equity method percentage | 50.00% | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 1,400,000 | 1,800,000 | ' | ' | ' | ' |
Exposures related to unrecognized tax benefits | 400,000 | ' | ' | ' | ' | ' |
Period of unrecognized tax benefits change | '12 months | ' | ' | ' | ' | ' |
Accrued penalties and interest expenses | 300,000 | 500,000 | ' | ' | ' | ' |
Impact of change on increment of tax liability | '4 years | ' | ' | ' | ' | ' |
Decrease in unrecognized tax benefits | ' | ' | $6,496,000 | ' | ' | ' |
Income_Taxes_Schedule_of_Recon2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of fiscal year | $1,841 | $2,505 | $9,015 |
Gross decreases-prior period tax positions | -151 | -57 | ' |
Gross decreases-current period tax positions | ' | ' | -14 |
Consent for accounting method change | ' | ' | -6,496 |
Lapses in statute of limitations | -295 | -607 | ' |
Balance at end of fiscal year | $1,395 | $1,841 | $2,505 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | |||||||
Nov. 07, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 29, 2011 | Nov. 01, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | |
Reorganization [Member] | Options [Member] | Options [Member] | Restricted Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding | ' | 39,124,764 | 37,967,635 | ' | ' | 32,188,891 | ' | ' | ' |
Common stock issued and sold in connection with initial public offering | 4,782,609 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares outstanding | ' | ' | ' | 1,000 | 100 | ' | ' | ' | ' |
Options and restricted stock units were excluded from calculation of diluted net earnings share | ' | ' | ' | ' | ' | ' | 774,745 | 6,020,152 | 90,988 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Weighted-Average Shares Used for Earnings Per Share (Detail) | 3 Months Ended | 12 Months Ended | |||||
Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Weighted-average shares-basic | 39,008,383 | 38,888,208 | 38,712,000 | 38,076,026 | 38,671,564 | 9,428,828 | 468 |
Effect of dilutive stock-based awards | ' | ' | ' | ' | 1,745,066 | ' | ' |
Weighted-average shares-diluted | 41,119,175 | 41,053,211 | 38,712,000 | 38,076,026 | 40,416,630 | 9,428,828 | 468 |
Share_Repurchases_Additional_I
Share Repurchases - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Feb. 01, 2014 |
Equity, Class of Treasury Stock [Line Items] | ' |
Common stock share repurchased | 40,353 |
Weighted-average price per share | $67.16 |
Promissory Notes [Member] | ' |
Equity, Class of Treasury Stock [Line Items] | ' |
Debt instrument, stated interest percentage | 5.00% |
Debt instrument, term | '10 years |
Debt instrument unpaid principal amount | $2.70 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Stock-based compensation expense | $67,622 | $116,183 | $1,557 |
Stock-based compensation cost capitalized | $0 | $0 | $0 |
StockBased_Compensation_2012_S
Stock-Based Compensation - 2012 Stock Option Plan and 2012 Stock Incentive Plan - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Jul. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 04, 2013 | Feb. 03, 2014 | Feb. 01, 2014 | Feb. 01, 2014 |
Stock Options [Member] | Restricted Stock Awards [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Incentive Plan [Member] | 2012 Stock Incentive Plan [Member] | Employees and Advisors [Member] | Directors [Member] | |||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Subsequent Event [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | ||||||||
Resale Restrictions [Member] | Resale Restriction after Offer Date [Member] | Restricted Stock Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares issued | ' | ' | ' | ' | 1,264,036 | ' | 1,417,500 | ' | ' | ' | ' | 6,829,041 | 40,623 |
Resale restrictions period | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' |
Lapse of shares | ' | ' | ' | ' | ' | ' | ' | 875,389 | 5,953,652 | ' | ' | ' | ' |
Exercise price per share | ' | ' | ' | ' | ' | ' | ' | $29 | $46.50 | ' | ' | ' | ' |
Common stock, value, minimum | ' | ' | ' | ' | $50.75 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, value, maximum | ' | ' | ' | ' | $111 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of stock option granted | $75.43 | ' | ' | ' | $26.50 | ' | $70.32 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | $7.70 | $14.50 | ' | $52 | ' | ' | ' | ' | ' | ' | ' |
Stock option granted | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option, lapse description | ' | 'Option is fully vested as of the date of grant but any shares issued upon exercise of the option will be subject to selling restrictions which are scheduled to lapse in three equal installments on the third, fourth and fifth anniversaries of the grant date. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | $33.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of shares issuable | ' | ' | ' | ' | 12,660,024 | 11,900,671 | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares issuable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 759,353 | 782,495 | ' | ' |
Number of units available for future issuance | ' | ' | ' | ' | 2,857,157 | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Jul. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | |
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options, Outstanding, Beginning balance | ' | ' | 8,159,577 |
Options, Granted | ' | 1,264,036 | 1,417,500 |
Options, Exercised | ' | ' | -317,771 |
Options, Forfeited | ' | ' | -95,675 |
Options, Retired | ' | ' | -16,325 |
Options, Outstanding, Ending balance | ' | ' | 9,147,306 |
Weighted-Average Exercise Price, Outstanding, Beginning balance | ' | ' | $41.41 |
Weighted-Average Exercise Price, Granted | $75.43 | $26.50 | $70.32 |
Weighted-Average Exercise Price, Exercised | ' | ' | $27.26 |
Weighted-Average Exercise Price, Forfeited | ' | ' | $35.75 |
Weighted-Average Exercise Price, Retired | ' | ' | $29 |
Weighted-Average Exercise Price, Outstanding, Ending balance | ' | ' | $46.46 |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Assumptions Used to Estimate Fair Value of Stock Options Issued (Detail) | 12 Months Ended | |
Feb. 01, 2014 | Feb. 02, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Expected volatility | 39.70% | 35.40% |
Expected life (years) | '6 years 8 months 12 days | '5 years 3 months 18 days |
Risk-free interest rate | 1.90% | 1.60% |
Dividend yield | ' | ' |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Additional Information about Stock Options (Detail) (Stock Options [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-average fair value per share of stock options granted | $30.49 | $6.34 |
Aggregate intrinsic value of stock options exercised | $11,623 | ' |
Fair value of stock options vested | $33,871 | $51,063 |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Stock Options Outstanding, Vested or Expected to Vest, and Exercisable (Detail) (Stock Options [Member], USD $) | 12 Months Ended |
Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options Outstanding, Number of Options | 9,147,306 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | '6 years 22 days |
Options Outstanding, Weighted-Average Exercise Price | $46.46 |
Options Exercisable, Number of Options | 8,694,931 |
Options Exercisable, Weighted-Average Exercise Price | $46.03 |
Vested or expected to vest as of February 1, 2014, Number of Options | 9,113,138 |
Vested or expected to vest as of February 1, 2014, Weighted-Average Remaining Contractual Life (in years) | '6 years 18 days |
Vested or expected to vest as of February 1, 2014, Weighted-Average Exercise Price | $46.43 |
Range of Exercise Prices $24.00 - $29.00 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, Lower | $24 |
Range of Exercise Prices, Upper | $29 |
Options Outstanding, Number of Options | 1,736,279 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | '8 years 6 months |
Options Outstanding, Weighted-Average Exercise Price | $27.51 |
Options Exercisable, Number of Options | 1,736,279 |
Options Exercisable, Weighted-Average Exercise Price | $27.51 |
Range of Exercise Prices $32.35 - $39.00 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, Lower | $32.35 |
Range of Exercise Prices, Upper | $39 |
Options Outstanding, Number of Options | 141,875 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | '8 years 9 months |
Options Outstanding, Weighted-Average Exercise Price | $33.89 |
Options Exercisable, Number of Options | 5,000 |
Options Exercisable, Weighted-Average Exercise Price | $32.46 |
Range of Exercise Prices $46.50 - $46.50 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, Lower | $46.50 |
Range of Exercise Prices, Upper | $46.50 |
Options Outstanding, Number of Options | 5,953,652 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | '4 years 6 months 15 days |
Options Outstanding, Weighted-Average Exercise Price | $46.50 |
Options Exercisable, Number of Options | 5,953,652 |
Options Exercisable, Weighted-Average Exercise Price | $46.50 |
Range of Exercise Prices $58.96 - $69.64 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, Lower | $58.96 |
Range of Exercise Prices, Upper | $69.64 |
Options Outstanding, Number of Options | 265,500 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | '9 years 4 months 28 days |
Options Outstanding, Weighted-Average Exercise Price | $61.54 |
Options Exercisable, Number of Options | ' |
Options Exercisable, Weighted-Average Exercise Price | ' |
Range of Exercise Prices $74.03 - $76.80 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, Lower | $74.03 |
Range of Exercise Prices, Upper | $76.80 |
Options Outstanding, Number of Options | 1,050,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | '9 years 4 months 28 days |
Options Outstanding, Weighted-Average Exercise Price | $75.46 |
Options Exercisable, Number of Options | 1,000,000 |
Options Exercisable, Weighted-Average Exercise Price | $75.43 |
StockBased_Compensation_2012_S1
Stock-Based Compensation - 2012 Stock Option Plan and 2012 Stock Incentive Plan - Stock Options - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $67,622,000 | $116,183,000 | $1,557,000 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value of options outstanding | 114,900,000 | ' | ' |
Aggregate intrinsic value of options vested or expected to vest | 114,700,000 | ' | ' |
Aggregate intrinsic value of options exercisable | 111,800,000 | ' | ' |
Weighted-average remaining contractual life of options exercisable | '8 years 9 months 26 days | ' | ' |
Stock-based compensation expense | 1,300,000 | 100,000 | ' |
Unrecognized compensation expense related to unvested options | $7,700,000 | ' | ' |
Unrecognized compensation expense with weighted-average period | '3 years 10 months 17 days | ' | ' |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Detail) (USD $) | 12 Months Ended | |
Feb. 01, 2014 | Feb. 02, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options, Outstanding, Ending balance | 512,580 | 512,580 |
Restricted Stock Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-Average Grant Date Fair Value, Granted | $65.37 | $24 |
Restricted Stock Awards [Member] | 2012 Stock Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options, Outstanding, Beginning balance | ' | ' |
Options, Granted | 316,580 | ' |
Options, Released | -13,333 | ' |
Options, Cancelled | -13,500 | ' |
Options, Outstanding, Ending balance | 289,747 | ' |
Weighted-Average Grant Date Fair Value, Outstanding, Beginning balance | ' | ' |
Weighted-Average Grant Date Fair Value, Granted | $65.37 | ' |
Weighted-Average Grant Date Fair Value, Released | $57.01 | ' |
Weighted-Average Grant Date Fair Value, Cancelled | $73.92 | ' |
Weighted-Average Grant Date Fair Value, Outstanding, Ending balance | $65.36 | ' |
Intrinsic Value, Outstanding | $16,440,000 | ' |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Additional Information about Restricted Stock Awards (Detail) (Restricted Stock Awards [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 |
Restricted Stock Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-average fair value per share of awards granted | $65.37 | $24 |
Grant date fair value of awards released | $760 | $975 |
StockBased_Compensation_2012_S2
Stock-Based Compensation - 2012 Stock Incentive Plan - Restricted Stock Awards - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $67,622,000 | $116,183,000 | $1,557,000 |
Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,700,000 | ' | ' |
Unrecognized compensation expense related to unvested options | $14,500,000 | ' | ' |
Unrecognized compensation expense with weighted-average period | '3 years 7 months 21 days | ' | ' |
StockBased_Compensation_2012_E
Stock-Based Compensation - 2012 Equity Replacement Plan - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Feb. 02, 2013 | Feb. 01, 2014 | Aug. 14, 2013 | Jul. 17, 2013 | 20-May-13 | Nov. 07, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 |
2012 Equity Replacement Plan [Member] | 2012 Equity Replacement Plan [Member] | Resale Restrictions [Member] | Restricted Stock [Member] | Performance-based Awards [Member] | |||||||
2012 Equity Replacement Plan [Member] | 2012 Equity Replacement Plan [Member] | 2012 Equity Replacement Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Resale restrictions period | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' |
Lapse of shares | ' | ' | ' | ' | ' | ' | ' | ' | 818,209 | ' | ' |
Non-cash compensation charge | $12.50 | ' | ' | ' | ' | ' | $29.90 | $39.10 | ' | ' | $10.60 |
Shares received | 512,580 | 512,580 | ' | ' | ' | ' | 1,331,548 | 1,331,548 | ' | 1,331,548 | ' |
Common stock, price per share | ' | ' | ' | ' | ' | ' | ' | $31 | ' | $31 | ' |
Consecutive trading days | ' | ' | ' | ' | ' | ' | ' | '10 days | ' | '10 days | ' |
Common stock, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $46.50 | ' |
Common stock, per share | ' | $24 | $70 | $70 | $50 | $24 | ' | ' | ' | ' | ' |
Mr. Friedman unvested stock at IPO | ' | 1,185,511 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted shares vested, issued | ' | ' | ' | ' | ' | ' | 888,616 | 442,932 | ' | ' | ' |
StockBased_Compensation_Team_R
Stock-Based Compensation - Team Resto Ownership Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $67,622 | $116,183 | $1,557 |
Initial public offering completion date | 7-Nov-12 | ' | ' |
Time-based Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Stock-based compensation expense | ' | 1,100 | 1,600 |
Performance-based Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | ' | $800 | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer's contribution to 401(k) plan | 0.00% | 0.00% | 0.00% |
Maximum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employee's contribution to 401(k) plan | 50.00% | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
31-May-10 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Jan. 28, 2012 | Apr. 30, 2011 | 31-May-10 | Feb. 01, 2014 | Jan. 28, 2012 | Dec. 31, 2008 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Jan. 28, 2012 | |
Class B Prime Units [Member] | Chairman and Co-Chief Executive Officer [Member] | Chief Operating Officer [Member] | Executive Compensation [Member] | Home Holdings [Member] | Home Holdings [Member] | Home Holdings [Member] | Home Holdings [Member] | Home Holdings [Member] | Catterton's [Member] | Catterton's [Member] | Glenhill's [Member] | Glenhill's [Member] | Tower Three [Member] | Restoration Hardware Holdings, Inc. [Member] | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction charges | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual management fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | 1.00% | ' | ' | ' |
Payment of additional fees upon termination in connection with initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | 600,000 | 3,100,000 | ' |
Management fees paid | ' | ' | 3,900,000 | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | 3,900,000 |
Executive loans with Home Holdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Ownership equity in Home Holdings | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | 1.40% | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' |
Executive loans interest rate | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal and accrued interest due date | ' | 31-Dec-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced interest rate on loan amendment | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Executive loans maturity date | ' | 6-Jul-15 | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional loan from Home Holdings | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.70% | ' | ' | ' | ' | ' | ' | ' | ' |
Principle amount of loans, including accrued interest | ' | ' | ' | ' | ' | 6,559,877 | 620,712 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contribution | ' | ' | ' | ' | ' | ' | ' | $6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Executive loans interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, description | ' | 'The loan, together will all interest accrued but unpaid, is due and payable on the first to occur of (i) December 31, 2015, (ii) ninety days following termination of employment, (iii) the date of any sale of the Company, (iv) the date of an initial public offering, (v) the date of any acceleration that might occur as a result of a defined default under the note, or (vi) demand for repayment by Home Holdings. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested restricted stock surrendered | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended |
Feb. 01, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Lease expiration year | '2033 |
Off balance sheet commitments | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Rental Payments under Leases (Detail) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
2014, Capital Leases | $1,844 | ' |
2015, Capital Leases | 235 | ' |
2016, Capital Leases | 106 | ' |
2017, Capital Leases | 50 | ' |
2018, Capital Leases | 21 | ' |
Thereafter, Capital Leases | ' | ' |
Minimum lease commitments, Capital Leases | 2,256 | ' |
Less-amount representing interest | -60 | ' |
Present value of capital lease obligations | 2,196 | ' |
Less-current capital lease obligations | -1,807 | -2,925 |
Long-term capital lease obligations | 389 | ' |
2014, Operating Leases | 68,709 | ' |
2015, Operating Leases | 61,396 | ' |
2016, Operating Leases | 57,972 | ' |
2017, Operating Leases | 53,775 | ' |
2018, Operating Leases | 46,824 | ' |
Thereafter, Operating Leases | 323,991 | ' |
Minimum lease commitments, Operating Leases | 612,667 | ' |
2014, Other Commitments | 48,352 | ' |
2015, Other Commitments | 8,544 | ' |
2016, Other Commitments | 8,966 | ' |
2017, Other Commitments | 9,276 | ' |
2018, Other Commitments | 7,383 | ' |
Thereafter, Other Commitments | 60,480 | ' |
Minimum lease commitments, Other Commitments | 143,001 | ' |
2014, Total | 118,905 | ' |
2015, Total | 70,175 | ' |
2016, Total | 67,044 | ' |
2017, Total | 63,101 | ' |
2018, Total | 54,228 | ' |
Thereafter, Total | 384,471 | ' |
Minimum lease commitments, Total | $757,924 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies - Minimum and Contingent Rental Expense under Operating Leases (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Operating leases | ' | ' | ' |
Minimum rental expense | $66,686 | $52,750 | $51,665 |
Contingent rental expense | 6,208 | 3,318 | 1,456 |
Total operating leases | $72,894 | $56,068 | $53,121 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Customer | Customer | Customer | |
Segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number of operating segment | 1 | ' | ' |
Number of customers accounted for more than 10% of Company's revenues | 0 | 0 | 0 |
Portion of specified customers portion in total revenues | 10.00% | 10.00% | 10.00% |
Segment_Reporting_Net_Revenues
Segment Reporting - Net Revenues (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | $471,694 | $395,832 | $382,098 | $301,337 | $398,055 | $284,171 | $292,906 | $217,914 | $1,550,961 | $1,193,046 | $958,084 |
Furniture [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 868,650 | 628,092 | 477,730 |
Non-furniture [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | $682,311 | $564,954 | $480,354 |
Retail_Store_Closures_and_Offi1
Retail Store Closures and Office Restructuring - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Jul. 31, 2011 | |
Store | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring related costs | ' | $1,600,000 | ' | ' |
Liabilities existing under lease agreements | ' | ' | 2,196,000 | ' |
Number of retail store locations closed | ' | ' | ' | 4 |
Exit related costs | ' | 3,200,000 | ' | ' |
Income related to a change in estimate of liabilities related to closed stores | 400,000 | ' | ' | ' |
Restructuring Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Liabilities related to office restructuring | 0 | ' | 0 | ' |
Liabilities existing under lease agreements | ' | ' | 0 | ' |
Retail Store Closures [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Liabilities related to office restructuring | ' | ' | 0 | ' |
Liabilities existing under lease agreements | ' | ' | $0 | ' |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $471,694 | $395,832 | $382,098 | $301,337 | $398,055 | $284,171 | $292,906 | $217,914 | $1,550,961 | $1,193,046 | $958,084 |
Gross profit | 174,977 | 140,800 | 139,226 | 101,877 | 145,174 | 101,880 | 114,127 | 75,268 | 556,880 | 436,449 | 356,349 |
Net income (loss) | $26,642 | $9,549 | ($17,835) | ($161) | ($28,362) | $1,685 | $17,616 | ($3,728) | $18,195 | ($12,789) | $20,588 |
Weighted-average shares used in computing basic net income (loss) per share | 39,008,383 | 38,888,208 | 38,712,000 | 38,076,026 | ' | ' | ' | ' | 38,671,564 | 9,428,828 | 468 |
Weighted-average shares used in computing basic and diluted net income (loss) per share | ' | ' | ' | ' | 35,692,064 | 1,000 | 1,000 | 1,000 | ' | ' | ' |
Basic net income (loss) per share | $0.68 | $0.25 | ($0.46) | ' | ' | ' | ' | ' | $0.47 | ($1.36) | $43,991 |
Basic and diluted net income (loss) per share | ' | ' | ' | ' | ($0.79) | $1,685 | $17,616 | ($3,728) | $0.45 | ($1.36) | $43,991 |
Weighted-average shares used in computing diluted net income (loss) per share | 41,119,175 | 41,053,211 | 38,712,000 | 38,076,026 | ' | ' | ' | ' | 40,416,630 | 9,428,828 | 468 |
Diluted net income (loss) per share | $0.65 | $0.23 | ($0.46) | ' | ' | ' | ' | ' | ' | ' | ' |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
Jul. 31, 2013 | 31-May-13 | Feb. 02, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | 31-May-13 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Feb. 02, 2013 | Aug. 03, 2013 | |
U.S. [Member] | U.S. [Member] | Former Executives [Member] | Former Executives [Member] | Bonus Payments to Employees [Member] | Bonus Payments to Employees [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Performance-based Vesting Shares [Member] | Equity Grants [Member] | Options Granted [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash compensation charge | ' | ' | ' | ' | ' | $67,622,000 | $116,183,000 | $1,557,000 | ' | ' | ' | ' | ' | ' | ' | $26,200,000 | $3,300,000 | $23,100,000 | $92,000,000 | $33,700,000 |
Cost incurred in connection with follow-on offerings | 2,100,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' |
Management fee | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | 502,029,000 | 505,485,000 | 329,506,000 | ' | ' | 2,200,000 | 2,200,000 | 1,300,000 | 1,300,000 | ' | ' | ' | ' | ' | ' |
Increased in tariff obligations | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative profitability position | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net changes in deferred tax assets and liabilities | ' | ' | ' | ' | ' | 87,000 | 6,000 | 11,133,000 | 57,200,000 | 57,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for legal and other professional fees | ' | ' | ' | $2,800,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 03, 2014 | Mar. 10, 2014 | Mar. 10, 2014 |
Promissory Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
2012 Equity Replacement Plan [Member] | Promissory Notes [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Assets acquired | ' | ' | $2.50 | ' | ' |
Common stock share repurchased | 40,353 | ' | ' | 238,290 | ' |
Purchase price per share | $67.16 | ' | ' | $65.06 | ' |
Issuance of unsecured subordinated promissory note | ' | ' | ' | ' | $15.50 |
Debt instrument, term | ' | '10 years | ' | ' | '8 years |
Debt instrument, stated interest percentage | ' | 5.00% | ' | ' | 5.00% |
Debt instrument, maturity | 6-Jul-15 | 10-Mar-22 | ' | ' | ' |