Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
2-May-15 | Jun. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 2-May-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RH | |
Entity Registrant Name | Restoration Hardware Holdings Inc | |
Entity Central Index Key | 1528849 | |
Current Fiscal Year End Date | -29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,953,934 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $103,767 | $148,934 |
Short-term investments | 75,507 | 62,168 |
Accounts receivable-net | 25,509 | 25,965 |
Merchandise inventories | 601,739 | 559,297 |
Current deferred tax assets | 27,935 | 27,904 |
Prepaid expense and other current assets | 99,925 | 87,976 |
Total current assets | 934,382 | 912,244 |
Long-term investments | 9,277 | 18,338 |
Property and equipment-net | 458,113 | 390,844 |
Goodwill | 124,483 | 124,424 |
Trademarks and other intangible assets | 48,535 | 48,554 |
Non-current deferred tax assets | 8,654 | 8,689 |
Other non-current assets | 18,858 | 22,906 |
Total assets | 1,602,302 | 1,525,999 |
Current liabilities: | ||
Accounts payable and accrued expenses | 240,422 | 235,159 |
Deferred revenue and customer deposits | 76,596 | 73,550 |
Other current liabilities | 36,054 | 35,720 |
Total current liabilities | 353,072 | 344,429 |
Convertible senior notes-net | 287,799 | 284,388 |
Financing obligations under build-to-suit lease transactions | 172,174 | 124,770 |
Deferred rent and lease incentives | 41,893 | 40,552 |
Other non-current obligations | 28,855 | 28,944 |
Total liabilities | 883,793 | 823,083 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding as of May 2, 2015 and January 31, 2015 | ||
Common stock, $0.0001 par value per share, 180,000,000 shares authorized, 40,246,689 shares issued and 39,954,426 shares outstanding as of May 2, 2015; 40,184,803 shares issued and 39,892,540 shares outstanding as of January 31, 2015 | 4 | 4 |
Additional paid-in capital | 677,208 | 668,989 |
Accumulated other comprehensive loss | -284 | -502 |
Retained earnings | 60,866 | 53,710 |
Treasury stock-at cost, 292,263 shares as of May 2, 2015 and January 31, 2015 | -19,285 | -19,285 |
Total stockholders' equity | 718,509 | 702,916 |
Total liabilities and stockholders' equity | $1,602,302 | $1,525,999 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 2-May-15 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 40,246,689 | 40,184,803 |
Common stock, shares outstanding | 39,954,426 | 39,892,540 |
Treasury stock, shares | 292,263 | 292,263 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
Income Statement [Abstract] | ||
Net revenues | $422,445 | $366,254 |
Cost of goods sold | 279,027 | 241,905 |
Gross profit | 143,418 | 124,349 |
Selling, general and administrative expenses | 126,389 | 119,571 |
Income from operations | 17,029 | 4,778 |
Interest expense | 5,649 | 2,056 |
Income before income taxes | 11,380 | 2,722 |
Income tax expense | 4,224 | 927 |
Net income | $7,156 | $1,795 |
Weighted-average shares used in computing basic net income per share | 39,913,946 | 39,152,923 |
Basic net income per share | $0.18 | $0.05 |
Weighted-average shares used in computing diluted net income per share | 41,959,718 | 40,787,726 |
Diluted net income per share | $0.17 | $0.04 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $7,156 | $1,795 |
Net gains (losses) from foreign currency translation | 220 | 64 |
Net unrealized holding gains (losses) on available-for-sale investments | -2 | |
Total comprehensive income | $7,374 | $1,859 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $7,156 | $1,795 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 9,979 | 7,640 |
Amortization of debt discount | 3,250 | |
Excess tax benefit from exercise of stock options | -1,075 | -5,364 |
Stock-based compensation expense | 5,299 | 2,231 |
Other non-cash interest expense | 536 | 168 |
Change in assets and liabilities: | ||
Accounts receivable | 472 | 3,106 |
Merchandise inventories | -42,253 | -29,631 |
Prepaid expense and other assets | -11,189 | -19,665 |
Accounts payable and accrued expenses | 7,673 | 4,346 |
Deferred revenue and customer deposits | 3,046 | 338 |
Other current liabilities | 1,444 | -22,822 |
Deferred rent and lease incentives | 1,266 | 593 |
Other non-current obligations | 17 | 46 |
Net cash used in operating activities | -14,379 | -57,219 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | -29,227 | -16,515 |
Purchase of investments | -19,471 | |
Maturities of investments | 15,000 | |
Net cash used in investing activities | -33,698 | -16,515 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Gross borrowings under revolving line of credit | 469,594 | |
Gross repayments under revolving line of credit | -405,873 | |
Payments on capital leases | -83 | -985 |
Proceeds from exercise of stock options | 2,221 | 3,500 |
Excess tax benefit from exercise of stock options | 1,075 | 5,364 |
Tax withholdings related to issuance of stock-based awards | -376 | -317 |
Net cash provided by financing activities | 2,837 | 71,283 |
Effects of foreign currency exchange rate translation | 73 | 4 |
Net decrease in cash and cash equivalents | -45,167 | -2,447 |
Cash and cash equivalents | ||
Beginning of period | 148,934 | 13,389 |
End of period | 103,767 | 10,942 |
Non-cash transactions: | ||
Property and equipment additions due to build-to-suit lease transactions | 47,404 | 12,587 |
Property and equipment additions in accounts payable and accrued expenses at period-end | 8,380 | 11,944 |
Property and equipment additions from use of construction related deposits | 2,942 | |
Issuance of non-current notes payable related to share repurchases from former employees | $15,682 |
The_Company
The Company | 3 Months Ended |
2-May-15 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | NOTE 1—THE COMPANY |
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 May 2, 2015, the Company operated a total of 67 retail stores and 17 outlet stores in 28 states, the District of Columbia and Canada, and had sourcing operations in Shanghai and Hong Kong. | |
Basis of Presentation | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared from the Company’s records and, in management’s opinion, include all adjustments necessary to fairly state the Company’s financial position as of May 2, 2015, and the results of operations for the three months ended May 2, 2015 and May 3, 2014. The Company’s current fiscal year ends on January 30, 2016 (“fiscal 2015”). | |
Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted for purposes of these interim condensed consolidated financial statements. | |
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2015 (the “2014 Form 10-K”). Certain prior year amounts have been reclassified for consistency with the current period presentation. This reclassification had no effect on the previously reported consolidated results of operations, financial position or cash flows. | |
The results of operations for the three months ended May 2, 2015 presented herein are not necessarily indicative of the results to be expected for the full fiscal year. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
2-May-15 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2—RECENT ACCOUNTING PRONOUNCEMENTS |
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 an Accounting Standards Update (Revised), Leases (Topic 842) (the “Exposure Draft”), which would replace the existing guidance in ASC 840—Leases (“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. | |
Revenue from Contracts with Customers | |
In May 2014, the FASB and International Accounting Standards Board issued their converged accounting standard update on revenue recognition, Accounting Standards Update 2014-09—Revenue from Contracts with Customers (Topic 606). This guidance outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Under the new guidance, transfer of control is no longer the same as transfer of risks and rewards as indicated in the prior guidance. The Company will also need to apply the new guidance to determine whether revenue should be recognized over time or at a point in time. This guidance is effective retrospectively for fiscal years beginning after December 15, 2016 (the Company’s first quarter of fiscal 2017), and interim periods within those years. However, on April 28, 2015, the FASB proposed to defer the effective date by one year, and the Company will monitor if or when the deferral is approved. The Company is currently evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption on its consolidated financial statements. | |
Consolidation Accounting | |
In February 2015, the FASB issued Accounting Standards Update No. 2015-02— Consolidation (Topic 810): Amendments to the Consolidation Analysis, which improves targeted areas of the consolidation guidance and reduces the number of consolidation models. The amendments to the guidance are effective for fiscal years beginning after December 15, 2015 (the Company’s first quarter of fiscal 2016), and interim periods within those years, with early adoption permitted. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements. | |
Classification of Debt Issuance Costs | |
In April 2015, the FASB issued Accounting Standards Update 2015-03— Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The update requires retrospective application and represents a change in accounting principle. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and interim periods within those years. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements. | |
Software Licenses in Cloud Computing Arrangements | |
In April 2015, the FASB issued Accounting Standards Update No. 2015-05— Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments in ASU 2015-05 are effective for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption is permitted. The guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company is currently evaluating the effect this guidance will have on its consolidated financial statements. |
Prepaid_Expense_and_Other_Asse
Prepaid Expense and Other Assets | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Text Block [Abstract] | |||||||||
Prepaid Expense and Other Assets | NOTE 3—PREPAID EXPENSE AND OTHER ASSETS | ||||||||
Prepaid expense and other current assets consist of the following (in thousands): | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Capitalized catalog costs | $ | 47,697 | $ | 46,911 | |||||
Vendor deposits | 27,055 | 21,585 | |||||||
Prepaid expense and other current assets | 25,173 | 19,480 | |||||||
Total prepaid expense and other current assets | $ | 99,925 | $ | 87,976 | |||||
Other non-current assets consist of the following (in thousands): | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Construction related deposits | $ | 6,308 | $ | 9,250 | |||||
Other deposits | 6,188 | 6,193 | |||||||
Deferred financing fees and convertible debt issuance costs | 3,444 | 3,670 | |||||||
Other non-current assets | 2,918 | 3,793 | |||||||
Total other non-current assets | $ | 18,858 | $ | 22,906 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Intangible Assets | NOTE 4—GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
The following sets forth the goodwill and intangible assets as of May 2, 2015 (in thousands): | |||||||||||||||||
Gross | Accumulated | Foreign | Net Book | ||||||||||||||
Carrying | Amortization | Currency | Value | ||||||||||||||
Amount | Translation | ||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||
Fair value of leases (1) | |||||||||||||||||
Fair market write-up | $ | 2,562 | $ | (1,945 | ) | $ | — | $ | 617 | ||||||||
Fair market write-down (2) | (1,467 | ) | 1,169 | — | (298 | ) | |||||||||||
Total intangible assets subject to amortization | $ | 1,095 | $ | (776 | ) | $ | — | $ | 319 | ||||||||
Intangible assets not subject to amortization | |||||||||||||||||
Goodwill | $ | 124,461 | $ | — | $ | 22 | $ | 124,483 | |||||||||
Trademarks and domain names | $ | 47,918 | $ | — | $ | — | $ | 47,918 | |||||||||
-1 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||
-2 | The fair market write-down of leases is included in other non-current obligations on the condensed consolidated balance sheets. | ||||||||||||||||
The following sets forth the goodwill and intangible assets as of January 31, 2015 (in thousands): | |||||||||||||||||
Gross | Accumulated | Foreign | Net Book | ||||||||||||||
Carrying | Amortization | Currency | Value | ||||||||||||||
Amount | Translation | ||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||
Fair value of leases (1) | |||||||||||||||||
Fair market write-up | $ | 3,110 | $ | (2,419 | ) | $ | — | $ | 691 | ||||||||
Fair market write-down (2) | (1,467 | ) | 1,127 | — | (340 | ) | |||||||||||
Customer relationships (3) | 80 | (80 | ) | — | — | ||||||||||||
Total intangible assets subject to amortization | $ | 1,723 | $ | (1,372 | ) | $ | — | $ | 351 | ||||||||
Intangible assets not subject to amortization | |||||||||||||||||
Goodwill | $ | 124,461 | $ | — | $ | (37 | ) | $ | 124,424 | ||||||||
Trademarks and domain names | $ | 47,863 | $ | — | $ | — | $ | 47,863 | |||||||||
-1 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||
-2 | The fair market write-down of leases is included in other non-current obligations on the condensed consolidated balance sheets. | ||||||||||||||||
-3 | Customer relationships are amortized over a one-year period. |
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other Current Liabilities | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable, Accrued Expenses and Other Current Liabilities | NOTE 5—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses consist of the following (in thousands): | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Accounts payable | $ | 146,391 | $ | 133,063 | |||||
Accrued compensation | 34,119 | 35,942 | |||||||
Accrued freight and duty | 16,982 | 22,747 | |||||||
Accrued sales taxes | 16,770 | 21,240 | |||||||
Accrued catalog costs | 11,198 | 4,582 | |||||||
Accrued occupancy | 8,594 | 7,530 | |||||||
Accrued professional fees | 1,980 | 2,319 | |||||||
Accrued legal settlements | 1,430 | 4,309 | |||||||
Other accrued expenses | 2,958 | 3,427 | |||||||
Total accounts payable and accrued expenses | $ | 240,422 | $ | 235,159 | |||||
Accounts payable included negative cash balances due to outstanding checks of $1.4 million and $17.5 million as of May 2, 2015 and January 31, 2015, respectively. | |||||||||
Other current liabilities consist of the following (in thousands): | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Unredeemed gift card and merchandise credit liability | $ | 22,658 | $ | 23,004 | |||||
Allowance for sales returns | 9,762 | 10,235 | |||||||
Federal, state and foreign tax payable | 2,793 | 1,509 | |||||||
Capital lease obligations—current | 236 | 255 | |||||||
Other liabilities | 605 | 717 | |||||||
Total other current liabilities | $ | 36,054 | $ | 35,720 | |||||
Other_NonCurrent_Obligations
Other Non-Current Obligations | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Non-Current Obligations | NOTE 6—OTHER NON-CURRENT OBLIGATIONS | ||||||||
Other non-current obligations consist of the following (in thousands): | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Notes payable for share repurchases | $ | 19,285 | $ | 19,285 | |||||
Capital lease obligations—non-current | 7,422 | 7,487 | |||||||
Unrecognized tax benefits | 1,123 | 1,108 | |||||||
Other non-current obligations | 1,025 | 1,064 | |||||||
Total other non-current obligations | $ | 28,855 | $ | 28,944 | |||||
Convertible_Senior_Notes
Convertible Senior Notes | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Convertible Senior Notes | NOTE 7—CONVERTIBLE SENIOR NOTES | ||||||||
0.00% Convertible Senior Notes due 2019 | |||||||||
On June 18, 2014, the Company issued $350 million principal amount of 0.00% convertible senior notes due 2019 (the “Notes”) in a private offering. The Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as the Trustee. The Notes will mature on June 15, 2019, unless earlier purchased by the Company or converted. The Notes will not bear interest, except that the Notes will be subject to “special interest” in certain limited circumstances in the event of the failure of the Company to perform certain of its obligations under the indenture governing the Notes. The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. Certain events are also considered “events of default” under the Notes, which may result in the acceleration of the maturity of the Notes, as described in the indenture governing the Notes. | |||||||||
The initial conversion rate applicable to the Notes is 8.6143 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $116.09 per share. The conversion rate will be subject to adjustment upon the occurrence of certain specified events, but will not be adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a “make-whole fundamental change,” the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change. | |||||||||
Prior to March 15, 2019, the Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2014, if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sale price of the Company’s common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day; (2) during the five consecutive business day period after any ten consecutive trading day period in which, for each day of that period, the trading price per $1,000 principal amount of Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; or (3) upon the occurrence of specified corporate transactions. As of May 2, 2015, none of these conditions have occurred and, as a result, the Notes are not convertible as of May 2, 2015. On and after March 15, 2019, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Notes will be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. If the Company has not delivered a notice of its election of settlement method prior to the final conversion period it will be deemed to have elected combination settlement with a dollar amount per note to be received upon conversion of $1,000. | |||||||||
Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. Accordingly, in accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, which is recognized as a debt discount, represents the difference between the proceeds from the issuance of the Notes and the fair value of the liability component of the Notes. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) will be amortized to interest expense using an effective interest rate of 4.51% over the term of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. | |||||||||
In accounting for the debt issuance costs related to the issuance of the Notes, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the term of the Notes, and debt issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity. | |||||||||
Debt issuance costs related to the Notes were comprised of discounts and commissions payable to the initial purchasers of $4.4 million and third party offering costs of $1.0 million. Discounts and commissions payable to the initial purchasers attributable to the liability component were recorded as a contra-liability and are presented net against the convertible senior notes balance on the condensed consolidated balance sheets. Third party offering costs attributable to the liability component were recorded as an asset and are presented in other assets on the condensed consolidated balance sheets. During the three months ended May 2, 2015, the Company recorded $0.2 million related to the amortization of debt issuance costs. | |||||||||
The carrying value of the Notes is as follows (in thousands): | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Liability component | |||||||||
Principal | $ | 350,000 | $ | 350,000 | |||||
Less: Debt discount | (59,263 | ) | (62,513 | ) | |||||
Net carrying amount | $ | 290,737 | $ | 287,487 | |||||
Equity component (1) | $ | 70,482 | $ | 70,482 | |||||
-1 | Included in additional paid-in capital on the condensed consolidated balance sheets. | ||||||||
The Company recorded interest expense of $3.3 million for the amortization of the debt discount related to the Notes during the three months ended May 2, 2015. | |||||||||
Convertible Bond Hedge and Warrant Transactions | |||||||||
In connection with the offering of the Notes, the Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 3.0 million shares of its common stock at a price of approximately $116.09 per share. The total cost of the convertible note hedge transactions was $73.3 million. In addition, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 3.0 million shares of the Company’s common stock at a price of $171.98 per share. The Company received $40.4 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and sale of the warrants are intended to offset any actual dilution from the conversion of the Notes and to effectively increase the overall conversion price from $116.09 per share to $171.98 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the convertible note hedge and warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. |
Line_of_Credit
Line of Credit | 3 Months Ended |
2-May-15 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 8—LINE OF CREDIT |
In August 2011, Restoration Hardware, Inc., along with its Canadian subsidiary, Restoration Hardware Canada, Inc., entered into a credit agreement (the “prior credit agreement”) with Bank of America, N.A., as administrative agent, and certain other lenders. On November 24, 2014, the Company amended its existing revolving line of credit by entering into an amended and restated credit agreement with the lenders party thereto and Bank of America, N.A. as administrative agent and collateral agent. The amended and restated credit agreement increased the existing revolving line of credit by $182.5 million, while eliminating the $15.0 million term loan facility under the existing revolving line of credit. Under the amended and restated credit agreement, which has a maturity date of November 24, 2019, the Company has the option to increase the amount of the revolving line of credit by up to an additional $200.0 million, subject to satisfaction of certain customary conditions at the time of such increase. | |
As of May 2, 2015, the Company did not have any amounts outstanding under the revolving line of credit. As of May 2, 2015, the Company had $435.5 million undrawn borrowing availability under the revolving line of credit. As of May 2, 2015 and January 31, 2015, the Company had $12.2 million and $20.2 million in outstanding letters of credit, respectively. | |
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 Bank of America “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 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. As of May 2, 2015, the Company was in compliance with all covenants contained in the credit agreement. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||
2-May-15 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value of Financial Instruments | NOTE 9—FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
Financial Assets and Liabilities | |||||||||||||||||||||||||
Certain financial assets and liabilities are required to be carried at fair value. Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company utilizes market data or assumptions that it believes market participants would use in pricing the asset or liability, which would maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, including assumptions about risk and the risks inherent in the inputs of the valuation technique. | |||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
All of the Company’s investments are classified as available-for-sale and are carried at fair value. Assets measured at fair value were as follows (in thousands): | |||||||||||||||||||||||||
May 2, | January 31, | ||||||||||||||||||||||||
2015 | 2015 | ||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||||
Money market funds | $ | 38 | $ | — | $ | 38 | $ | 44 | $ | — | $ | 44 | |||||||||||||
Commercial paper | — | 14,949 | 14,949 | — | 18,248 | 18,248 | |||||||||||||||||||
Government agency obligations | — | — | — | — | 1,001 | 1,001 | |||||||||||||||||||
Total cash equivalents | 38 | 14,949 | 14,987 | 44 | 19,249 | 19,293 | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Commercial paper | — | 18,357 | 18,357 | — | 13,996 | 13,996 | |||||||||||||||||||
Government agency obligations | — | 57,150 | 57,150 | — | 48,172 | 48,172 | |||||||||||||||||||
Total short-term investments | — | 75,507 | 75,507 | — | 62,168 | 62,168 | |||||||||||||||||||
Long-term investments | |||||||||||||||||||||||||
Government agency obligations | — | 9,277 | 9,277 | — | 18,338 | 18,338 | |||||||||||||||||||
Total long-term investments | — | 9,277 | 9,277 | — | 18,338 | 18,338 | |||||||||||||||||||
Total | $ | 38 | $ | 99,733 | $ | 99,771 | $ | 44 | $ | 99,755 | $ | 99,799 | |||||||||||||
The Company invests excess cash primarily in investment-grade interest-bearing securities such as money market funds, certificates of deposit, commercial paper, municipal and government agency obligations and guaranteed obligations of the U.S. government, all of which are subject to minimal credit and market risks. The Company estimates the fair value of its commercial paper and U.S. government agency bonds by taking into consideration valuations obtained from third party pricing services. The pricing services utilize industry standard valuation models, including both income and market based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trade dates of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities, prepayment/default projections based on historical data; and other observable inputs. | |||||||||||||||||||||||||
There were no purchases, sales, issuances, or settlements related to recurring level 3 measurements during the three months ended May 2, 2015 or May 3, 2014. There were no transfers into or out of level 1 and level 2 during the three months ended May 2, 2015 or May 3, 2014. | |||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
Amounts reported as cash and equivalents, receivables, and accounts payable and accrued expenses approximate fair value. The estimated fair value and carrying value of the Notes (carrying value excludes the equity component of the Notes classified in stockholders’ equity) were as follows (in thousands): | |||||||||||||||||||||||||
May 2, | January 31, | ||||||||||||||||||||||||
2015 | 2015 | ||||||||||||||||||||||||
Fair | Carrying | Fair | Carrying | ||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||
Convertible senior notes | $ | 272,877 | $ | 290,737 | $ | 260,444 | $ | 287,487 | |||||||||||||||||
The fair value of the Notes were determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including the trading price of the Company’s convertible notes, when available, the Company’s stock price and interest rates based on similar debt issued by parties with credit ratings similar to the Company (level 2). | |||||||||||||||||||||||||
As the Company’s debt obligations under the revolving line of credit are variable rate, there are no significant differences between the estimated fair value (level 2) and carrying value. | |||||||||||||||||||||||||
Non-Financial Assets | |||||||||||||||||||||||||
The Company did not record an impairment charge on long-lived assets during the three months ended May 2, 2015 or May 3, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
2-May-15 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10—INCOME TAXES |
The effective tax rate was 37.11% and 34.04% for the three months ended May 2, 2015 and May 3, 2014, respectively. | |
As of both May 2, 2015 and January 31, 2015, $0.9 million of the exposures related to unrecognized tax benefits would affect the effective tax rate if realized and are included in other non-current obligations on the condensed 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 May 2, 2015, the Company does not have any exposures related to unrecognized tax benefits that are expected to decrease in the next 12 months. | |
Adjustments required upon adoption of accounting for uncertainty in income taxes related to deferred tax assets 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 had an interest accrual of $0.2 million associated with exposures as of both May 2, 2015 and January 31, 2015. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | NOTE 11—EARNINGS PER SHARE | ||||||||
The weighted-average shares used for net income per share is as follows: | |||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Weighted-average shares—basic | 39,913,946 | 39,152,923 | |||||||
Effect of dilutive stock-based awards | 2,045,772 | 1,634,803 | |||||||
Weighted-average shares—diluted | 41,959,718 | 40,787,726 | |||||||
The following number of options and restricted stock units were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive: | |||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Options | 129,508 | 1,362,462 | |||||||
Restricted stock units | 4,855 | 22,750 | |||||||
Total anti-dilutive stock-based awards | 134,363 | 1,385,212 | |||||||
Share_Repurchases
Share Repurchases | 3 Months Ended |
2-May-15 | |
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 the three months ended May 2, 2015, the Company did not repurchase any shares of common stock from former employees. During the three months ended May 3, 2014, the Company repurchased 241,322 shares of common stock from former employees pursuant to such repurchase right for fair value at a purchase price of $15.7 million. The repurchases were settled with the issuance of promissory notes bearing interest at 5%, paid annually, with principal due at the end of an 8-year term. | |
The aggregate unpaid principal amount of the notes payable for share repurchases was $19.3 million as of both May 2, 2015 and January 31, 2015, which is included in other non-current obligations on the condensed consolidated balance sheets. The Company recorded interest expense on the outstanding notes of $0.2 million during both the three months ended May 2, 2015 and May 3, 2014. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
2-May-15 | |
Disclosure of Compensation Related Costs, Share-based 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 an award will vest, the Company recognizes compensation expense equal to the number of shares which are probable to vest 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 condensed consolidated statements of income. The Company recorded stock-based compensation expense of $5.3 million and $2.2 million in the three months ended May 2, 2015 and May 3, 2014, respectively. No stock-based compensation cost has been capitalized in the accompanying condensed consolidated financial statements. | |
2012 Stock Option Plan and 2012 Stock Incentive Plan | |
As of May 2, 2015, 6,789,562 options were outstanding with a weighted-average exercise price of $52.15 per share and 5,135,927 options were vested with a weighted-average exercise price of $48.30 per share. The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of May 2, 2015 was $239.5 million, $236.0 million, and $190.0 million, respectively. Stock options exercisable as of May 2, 2015 had a weighted-average remaining contractual life of 7.68 years. As of May 2, 2015, the total unrecognized compensation expense related to unvested options was $32.7 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.84 years. | |
As of May 2, 2015, the Company had 744,852 restricted stock and restricted stock unit awards outstanding with a weighted-average grant date fair value of $65.80 per share. During the three months ended May 2, 2015, 10,428 restricted stock and restricted stock unit awards with a weighted-average grant date fair value of $48.70 per share vested. As of May 2, 2015, there was $34.2 million of total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards which is expected to be recognized over a weighted-average period of 3.61 years. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
2-May-15 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14—RELATED PARTY TRANSACTIONS |
In February 2015, the Company purchased an aircraft for a total purchase price of $9.5 million in order to facilitate more efficient business travel by the Company’s management team in development of the Company’s business. | |
On March 27, 2015, Restoration Hardware, Inc. (“RHI”), a wholly-owned subsidiary of the Company and the operator of the aircraft, entered into an Aircraft Time Sharing Agreement (the “Time Sharing Agreement”) with Gary Friedman, our Chief Executive Officer. The Time Sharing Agreement governs any use of the aircraft by Mr. Friedman for personal trips and provides that Mr. Friedman will lease the aircraft and pay RHI an amount equal to the aggregate actual expenses of each personal use flight based on the variable costs of the flight, with the amount of such lease payments not to exceed the maximum payment level established under the Federal Aviation Administration rules. Mr. Friedman maintains a deposit with the Company, to be used towards payment of amounts due under the Time Sharing Agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
2-May-15 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15—COMMITMENTS AND CONTINGENCIES |
Commitments | |
The Company had no material off balance sheet commitments as of May 2, 2015. | |
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 May 2, 2015, 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 the Company has 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. | |
In fiscal 2014 and the first quarter of fiscal 2015, material developments occurred in an ongoing legal proceeding involving the Company. On October 21, 2008, Mike Hernandez, individually and on behalf of others similarly situated, filed a class action in the Superior Court of the State of California for the County of San Diego against Restoration Hardware, Inc. alleging principally that the Company violated California’s Song-Beverly Credit Card Act of 1971 by requesting and recording ZIP codes from customers paying with credit cards. On May 23, 2014, in response to a directive from the Court, the parties filed a joint statement as to the parties’ agreed-upon claims process for the class members as well as to other matters related to this proceeding. On September 5, 2014, the Court granted plaintiffs’ motion for attorneys’ fees, costs, and awards, and awarded $9.5 million in fees and costs to plaintiffs’ attorneys. The Court entered judgment on September 29, 2014 and, on November 21, 2014, a class member filed a notice of appeal from the judgment. As a result of the appeal, the judgment was stayed until January 10, 2015. The appeal remains pending but the judgment is enforceable. As a result of these developments, during fiscal 2014, the Company recorded a $9.5 million charge related to this matter that was subsequently decreased to approximately $8 million. The decrease of approximately $1.5 million was based on a revision of estimated class member response. On March 16, 2015, the Company, through the third party claims administrator, began mailing the class action award to class members. The Company, through the third party claims administrator, paid approximately $2.4M in cash awards to the class members and mailed 33% discount coupons, good for one year, on purchases up to $10,000, to class members that did not request the cash award. During a hearing on April 16, 2015, the Court provided additional guidance regarding the manner in which class members can use the 33% merchandise discount coupon. Specifically, the court ordered that the 33% coupons may be combined with the Company’s other promotional offers. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting | NOTE 16—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 (the “CODM”). The Company has determined that the Chief Executive Officer 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. During the first quarter of fiscal 2015, the Company recategorized as furniture certain products within its Bath and Contract categories, which were previously included in the non-furniture category. The Company has determined that such recategorization provides a more meaningful disclosure and is better aligned with the Company’s internal reporting. Such recategorizations are reflected in the table below. | |||||||||
Net revenues in each category were as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Furniture | $ | 272,275 | $ | 228,035 | |||||
Non-furniture | 150,170 | 138,219 | |||||||
Total net revenues | $ | 422,445 | $ | 366,254 | |||||
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 the three months ended May 2, 2015 or May 3, 2014. |
The_Company_Policies
The Company (Policies) | 3 Months Ended | |||
2-May-15 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Nature of Business | 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 May 2, 2015, the Company operated a total of 67 retail stores and 17 outlet stores in 28 states, the District of Columbia and Canada, and had sourcing operations in Shanghai and Hong Kong. | ||||
Basis of Presentation | Basis of Presentation | |||
The accompanying unaudited interim condensed consolidated financial statements have been prepared from the Company’s records and, in management’s opinion, include all adjustments necessary to fairly state the Company’s financial position as of May 2, 2015, and the results of operations for the three months ended May 2, 2015 and May 3, 2014. The Company’s current fiscal year ends on January 30, 2016 (“fiscal 2015”). | ||||
Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted for purposes of these interim condensed consolidated financial statements. | ||||
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2015 (the “2014 Form 10-K”). Certain prior year amounts have been reclassified for consistency with the current period presentation. This reclassification had no effect on the previously reported consolidated results of operations, financial position or cash flows. | ||||
The results of operations for the three months ended May 2, 2015 presented herein are not necessarily indicative of the results to be expected for the full fiscal year. | ||||
Fair Value of Financial Instruments | 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. | |||
A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | ||||
Commitments and Contingencies | 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 May 2, 2015, 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 the Company has 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 | The Company defines an operating segment on the same basis that it uses to evaluate performance internally by the Chief Operating Decision Maker (the “CODM”). The Company has determined that the Chief Executive Officer 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. |
Prepaid_Expense_and_Other_Asse1
Prepaid Expense and Other Assets (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Text Block [Abstract] | |||||||||
Prepaid Expense and Other Current Assets | Prepaid expense and other current assets consist of the following (in thousands): | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Capitalized catalog costs | $ | 47,697 | $ | 46,911 | |||||
Vendor deposits | 27,055 | 21,585 | |||||||
Prepaid expense and other current assets | 25,173 | 19,480 | |||||||
Total prepaid expense and other current assets | $ | 99,925 | $ | 87,976 | |||||
Schedule of Other Non-Current Assets | Other non-current assets consist of the following (in thousands): | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Construction related deposits | $ | 6,308 | $ | 9,250 | |||||
Other deposits | 6,188 | 6,193 | |||||||
Deferred financing fees and convertible debt issuance costs | 3,444 | 3,670 | |||||||
Other non-current assets | 2,918 | 3,793 | |||||||
Total other non-current assets | $ | 18,858 | $ | 22,906 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Intangible Assets | The following sets forth the goodwill and intangible assets as of May 2, 2015 (in thousands): | ||||||||||||||||
Gross | Accumulated | Foreign | Net Book | ||||||||||||||
Carrying | Amortization | Currency | Value | ||||||||||||||
Amount | Translation | ||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||
Fair value of leases (1) | |||||||||||||||||
Fair market write-up | $ | 2,562 | $ | (1,945 | ) | $ | — | $ | 617 | ||||||||
Fair market write-down (2) | (1,467 | ) | 1,169 | — | (298 | ) | |||||||||||
Total intangible assets subject to amortization | $ | 1,095 | $ | (776 | ) | $ | — | $ | 319 | ||||||||
Intangible assets not subject to amortization | |||||||||||||||||
Goodwill | $ | 124,461 | $ | — | $ | 22 | $ | 124,483 | |||||||||
Trademarks and domain names | $ | 47,918 | $ | — | $ | — | $ | 47,918 | |||||||||
-1 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||
-2 | The fair market write-down of leases is included in other non-current obligations on the condensed consolidated balance sheets. | ||||||||||||||||
The following sets forth the goodwill and intangible assets as of January 31, 2015 (in thousands): | |||||||||||||||||
Gross | Accumulated | Foreign | Net Book | ||||||||||||||
Carrying | Amortization | Currency | Value | ||||||||||||||
Amount | Translation | ||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||
Fair value of leases (1) | |||||||||||||||||
Fair market write-up | $ | 3,110 | $ | (2,419 | ) | $ | — | $ | 691 | ||||||||
Fair market write-down (2) | (1,467 | ) | 1,127 | — | (340 | ) | |||||||||||
Customer relationships (3) | 80 | (80 | ) | — | — | ||||||||||||
Total intangible assets subject to amortization | $ | 1,723 | $ | (1,372 | ) | $ | — | $ | 351 | ||||||||
Intangible assets not subject to amortization | |||||||||||||||||
Goodwill | $ | 124,461 | $ | — | $ | (37 | ) | $ | 124,424 | ||||||||
Trademarks and domain names | $ | 47,863 | $ | — | $ | — | $ | 47,863 | |||||||||
-1 | The fair value of each lease is amortized over the life of the respective lease. | ||||||||||||||||
-2 | The fair market write-down of leases is included in other non-current obligations on the condensed consolidated balance sheets. | ||||||||||||||||
-3 | Customer relationships are amortized over a one-year period. |
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following (in thousands): | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Accounts payable | $ | 146,391 | $ | 133,063 | |||||
Accrued compensation | 34,119 | 35,942 | |||||||
Accrued freight and duty | 16,982 | 22,747 | |||||||
Accrued sales taxes | 16,770 | 21,240 | |||||||
Accrued catalog costs | 11,198 | 4,582 | |||||||
Accrued occupancy | 8,594 | 7,530 | |||||||
Accrued professional fees | 1,980 | 2,319 | |||||||
Accrued legal settlements | 1,430 | 4,309 | |||||||
Other accrued expenses | 2,958 | 3,427 | |||||||
Total accounts payable and accrued expenses | $ | 240,422 | $ | 235,159 | |||||
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Unredeemed gift card and merchandise credit liability | $ | 22,658 | $ | 23,004 | |||||
Allowance for sales returns | 9,762 | 10,235 | |||||||
Federal, state and foreign tax payable | 2,793 | 1,509 | |||||||
Capital lease obligations—current | 236 | 255 | |||||||
Other liabilities | 605 | 717 | |||||||
Total other current liabilities | $ | 36,054 | $ | 35,720 | |||||
Other_NonCurrent_Obligations_T
Other Non-Current Obligations (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of Other Non-Current Obligations | Other non-current obligations consist of the following (in thousands): | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Notes payable for share repurchases | $ | 19,285 | $ | 19,285 | |||||
Capital lease obligations—non-current | 7,422 | 7,487 | |||||||
Unrecognized tax benefits | 1,123 | 1,108 | |||||||
Other non-current obligations | 1,025 | 1,064 | |||||||
Total other non-current obligations | $ | 28,855 | $ | 28,944 | |||||
Convertible_Senior_Notes_Table
Convertible Senior Notes (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Carrying Value of Notes | The carrying value of the Notes is as follows (in thousands): | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
Liability component | |||||||||
Principal | $ | 350,000 | $ | 350,000 | |||||
Less: Debt discount | (59,263 | ) | (62,513 | ) | |||||
Net carrying amount | $ | 290,737 | $ | 287,487 | |||||
Equity component (1) | $ | 70,482 | $ | 70,482 | |||||
-1 | Included in additional paid-in capital on the condensed consolidated balance sheets. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
2-May-15 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Schedule of Assets Measured at Fair Value | Assets measured at fair value were as follows (in thousands): | ||||||||||||||||||||||||
May 2, | January 31, | ||||||||||||||||||||||||
2015 | 2015 | ||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||||
Money market funds | $ | 38 | $ | — | $ | 38 | $ | 44 | $ | — | $ | 44 | |||||||||||||
Commercial paper | — | 14,949 | 14,949 | — | 18,248 | 18,248 | |||||||||||||||||||
Government agency obligations | — | — | — | — | 1,001 | 1,001 | |||||||||||||||||||
Total cash equivalents | 38 | 14,949 | 14,987 | 44 | 19,249 | 19,293 | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Commercial paper | — | 18,357 | 18,357 | — | 13,996 | 13,996 | |||||||||||||||||||
Government agency obligations | — | 57,150 | 57,150 | — | 48,172 | 48,172 | |||||||||||||||||||
Total short-term investments | — | 75,507 | 75,507 | — | 62,168 | 62,168 | |||||||||||||||||||
Long-term investments | |||||||||||||||||||||||||
Government agency obligations | — | 9,277 | 9,277 | — | 18,338 | 18,338 | |||||||||||||||||||
Total long-term investments | — | 9,277 | 9,277 | — | 18,338 | 18,338 | |||||||||||||||||||
Total | $ | 38 | $ | 99,733 | $ | 99,771 | $ | 44 | $ | 99,755 | $ | 99,799 | |||||||||||||
Estimated Fair Value and Carrying Value of Notes | The estimated fair value and carrying value of the Notes (carrying value excludes the equity component of the Notes classified in stockholders’ equity) were as follows (in thousands): | ||||||||||||||||||||||||
May 2, | January 31, | ||||||||||||||||||||||||
2015 | 2015 | ||||||||||||||||||||||||
Fair | Carrying | Fair | Carrying | ||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||
Convertible senior notes | $ | 272,877 | $ | 290,737 | $ | 260,444 | $ | 287,487 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Weighted-Average Shares Used for Net Income per Share | The weighted-average shares used for net income per share is as follows: | ||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Weighted-average shares—basic | 39,913,946 | 39,152,923 | |||||||
Effect of dilutive stock-based awards | 2,045,772 | 1,634,803 | |||||||
Weighted-average shares—diluted | 41,959,718 | 40,787,726 | |||||||
Anti-Dilutive Securities Excluded from Diluted Net Income per Share | The following number of options and restricted stock units were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive: | ||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Options | 129,508 | 1,362,462 | |||||||
Restricted stock units | 4,855 | 22,750 | |||||||
Total anti-dilutive stock-based awards | 134,363 | 1,385,212 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Segment Reporting [Abstract] | |||||||||
Net Revenues | Net revenues in each category were as follows (in thousands): | ||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
Furniture | $ | 272,275 | $ | 228,035 | |||||
Non-furniture | 150,170 | 138,219 | |||||||
Total net revenues | $ | 422,445 | $ | 366,254 | |||||
The_Company_Additional_Informa
The Company - Additional Information (Detail) | 3 Months Ended |
2-May-15 | |
Store | |
State | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of retail stores | 67 |
Number of outlet stores | 17 |
Number of states | 28 |
Prepaid_Expense_and_Other_Asse2
Prepaid Expense and Other Assets - Prepaid Expense and Other Current Assets (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Capitalized catalog costs | $47,697 | $46,911 |
Vendor deposits | 27,055 | 21,585 |
Prepaid expense and other current assets | 25,173 | 19,480 |
Total prepaid expense and other current assets | $99,925 | $87,976 |
Recovered_Sheet1
Prepaid Expense And Other Assets - Schedule of Other Non-Current Assets (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Construction related deposits | $6,308 | $9,250 |
Other deposits | 6,188 | 6,193 |
Deferred financing fees and convertible debt issuance costs | 3,444 | 3,670 |
Other non-current assets | 2,918 | 3,793 |
Total other non-current assets | $18,858 | $22,906 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | 2-May-15 | Jan. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $1,095 | $1,723 |
Finite Lived, Accumulated Amortization | -776 | -1,372 |
Finite Lived, Foreign Currency Translation | 0 | 0 |
Finite Lived, Net Book Value | 319 | 351 |
Goodwill, Gross Carrying Amount | 124,461 | 124,461 |
Goodwill, Foreign Currency Translation | 22 | -37 |
Goodwill, Net Book Value | 124,483 | 124,424 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 80 | |
Finite Lived, Accumulated Amortization | -80 | |
Finite Lived, Foreign Currency Translation | 0 | |
Fair Market Write-Up [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 2,562 | 3,110 |
Finite Lived, Accumulated Amortization | -1,945 | -2,419 |
Finite Lived, Foreign Currency Translation | 0 | 0 |
Finite Lived, Net Book Value | 617 | 691 |
Fair Market Write-Down [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | -1,467 | -1,467 |
Finite Lived, Accumulated Amortization | 1,169 | 1,127 |
Finite Lived, Foreign Currency Translation | 0 | 0 |
Finite Lived, Net Book Value | -298 | -340 |
Trademarks and Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite Lived, Gross Carrying Amount | 47,918 | 47,863 |
Indefinite Lived, Foreign Currency Translation | 0 | 0 |
Indefinite Lived, Net Book Value | $47,918 | $47,863 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Parenthetical) (Detail) (Customer Relationships [Member]) | 12 Months Ended |
Jan. 31, 2015 | |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 1 year |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other Current Liabilities - Accounts Payable and Accrued Expenses (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable | $146,391 | $133,063 |
Accrued compensation | 34,119 | 35,942 |
Accrued freight and duty | 16,982 | 22,747 |
Accrued sales taxes | 16,770 | 21,240 |
Accrued catalog costs | 11,198 | 4,582 |
Accrued occupancy | 8,594 | 7,530 |
Accrued professional fees | 1,980 | 2,319 |
Accrued legal settlements | 1,430 | 4,309 |
Other accrued expenses | 2,958 | 3,427 |
Total accounts payable and accrued expenses | $240,422 | $235,159 |
Accounts_Payable_Accrued_Expen3
Accounts Payable, Accrued Expenses and Other Current Liabilities - Additional Information (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable includes negative cash balances | $1.40 | $17.50 |
Accounts_Payable_Accrued_Expen4
Accounts Payable, Accrued Expenses and Other Current Liabilities - Schedule of Other Current Liabilities (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Unredeemed gift card and merchandise credit liability | $22,658 | $23,004 |
Allowance for sales returns | 9,762 | 10,235 |
Federal, state and foreign tax payable | 2,793 | 1,509 |
Capital lease obligations-current | 236 | 255 |
Other liabilities | 605 | 717 |
Total other current liabilities | $36,054 | $35,720 |
Other_NonCurrent_Obligations_S
Other Non-Current Obligations - Schedule of Other Non-Current Obligations (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Noncurrent [Abstract] | ||
Notes payable for share repurchases | $19,285 | $19,285 |
Capital lease obligations-non-current | 7,422 | 7,487 |
Unrecognized tax benefits | 1,123 | 1,108 |
Other non-current obligations | 1,025 | 1,064 |
Total other non-current obligations | $28,855 | $28,944 |
Convertible_Senior_Notes_Addit
Convertible Senior Notes - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Jun. 18, 2014 | 2-May-15 | Jan. 31, 2015 | Jun. 18, 2014 |
Debt Instrument [Line Items] | ||||
Amortization of debt discount | $3,250,000 | |||
Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | 350,000,000 | 350,000,000 | ||
Debt instrument, convertible earliest date | 15-Mar-19 | |||
Deemed elected combination settlement amount per note to be received upon conversion | 1,000 | 1,000 | ||
Debt instrument, effective interest rate | 4.51% | 4.51% | ||
Discounts and commissions payable | 4,400,000 | |||
Third party offering costs | 1,000,000 | |||
Amortization of debt issuance costs | 200,000 | |||
Amortization of debt discount | 3,300,000 | |||
Warrants sold to purchase common stock | 3 | 3 | ||
Warrants price per share | $171.98 | $171.98 | ||
Cash proceeds from sale of warrants | 40,400,000 | |||
Convertible Debt Instrument Conversion Period One [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible trading days | 20 | |||
Debt instrument, convertible consecutive trading days | 30 days | |||
Debt instrument, convertible percentage of stock price | 130.00% | |||
Convertible Debt Instrument Conversion Period Two [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible trading days | 5 | |||
Debt instrument, convertible consecutive trading days | 10 days | |||
Debt instrument, convertible percentage of stock price | 98.00% | |||
Convertible Debt Instrument Conversion Period Three [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible earliest date | 15-Mar-19 | |||
Convertible Note Hedge [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price per share | $116.09 | $116.09 | ||
Convertible note hedge, number of shares | 3,000,000 | 3,000,000 | ||
Convertible note hedge, price per share | 116.09 | |||
Convertible note hedge, description | The Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 3.0 million shares of its common stock at a price of approximately $116.09 per share. | |||
Convertible note hedge, inception Date | 18-Jun-14 | |||
Total cost of convertible note hedge transactions | 73,300,000 | |||
Conversion price per share, two | $171.98 | $171.98 | ||
Common Stock [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, initial conversion rate | 8.6143 | |||
Debt instrument, conversion principal amount | 1,000 | 1,000 | ||
Conversion price per share | $116.09 | $116.09 | ||
Debt instrument, conversion description | The initial conversion rate applicable to the Notes is 8.6143 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $116.09 per share. | |||
Private Placement [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $350,000,000 | $350,000,000 | ||
Debt instrument, interest rate | 0.00% | 0.00% | ||
Debt instrument, maturity date | 15-Jun-19 |
Convertible_Senior_Notes_Carry
Convertible Senior Notes - Carrying and Fair Values of Notes (Detail) (Convertible Senior Notes Due 2019 [Member], USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Convertible Senior Notes Due 2019 [Member] | ||
Liability component | ||
Principal | $350,000 | $350,000 |
Less: Debt discount | -59,263 | -62,513 |
Net carrying amount | 290,737 | 287,487 |
Equity component | $70,482 | $70,482 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | Nov. 24, 2014 | Jan. 31, 2015 |
Line of Credit Facility [Line Items] | |||
Undrawn borrowing availability under the revolving line of credit | $435.50 | ||
Outstanding letters of credit | 12.2 | 20.2 | |
Revolving line of credit, interest rate description | 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 Bank of America "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. | ||
Tenth Amended And Restated Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Agreement, date | 24-Nov-14 | ||
Revolving Credit Facility [Member] | Tenth Amended And Restated Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Increase in revolving line of credit | 182.5 | ||
Revolving Credit Facility [Member] | Tenth Amended And Restated Credit Agreement [Member] | Restoration Hardware, Inc. [Member] | Scenario, Plan Subject to Satisfaction of Conditions [Member] | |||
Line of Credit Facility [Line Items] | |||
Increase in revolving line of credit | 200 | ||
Term Loan Facility [Member] | Tenth Amended And Restated Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Elimination of term loan facility | $15 | ||
Amended Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Amended and restated credit agreement maturity date | 24-Nov-19 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Schedule of Assets Measured at Fair Value (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | $14,987 | $19,293 |
Total | 99,771 | 99,799 |
Money market funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 38 | 44 |
Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 14,949 | 18,248 |
Government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 1,001 | |
Short-term investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 75,507 | 62,168 |
Short-term investments [Member] | Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 18,357 | 13,996 |
Short-term investments [Member] | Government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 57,150 | 48,172 |
Long-term investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 9,277 | 18,338 |
Long-term investments [Member] | Government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 9,277 | 18,338 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 38 | 44 |
Total | 38 | 44 |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 38 | 44 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 14,949 | 19,249 |
Total | 99,733 | 99,755 |
Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 14,949 | 18,248 |
Level 2 [Member] | Government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash equivalents | 1,001 | |
Level 2 [Member] | Short-term investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 75,507 | 62,168 |
Level 2 [Member] | Short-term investments [Member] | Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 18,357 | 13,996 |
Level 2 [Member] | Short-term investments [Member] | Government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 57,150 | 48,172 |
Level 2 [Member] | Long-term investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 9,277 | 18,338 |
Level 2 [Member] | Long-term investments [Member] | Government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | $9,277 | $18,338 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers out of Level 1 into Level 2 | $0 | $0 |
Transfers out of Level 2 into Level 1 | 0 | 0 |
Impairment charge on long-lived assets | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement, purchases, sales, issuances, or settlements | $0 | $0 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Estimated Fair Value and Carrying Value of Notes (Detail) (Convertible Senior Notes Due 2019 [Member], USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible senior notes, Carrying Value | $290,737 | $287,487 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible senior notes, Fair Value | $272,877 | $260,444 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
2-May-15 | 3-May-14 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 37.11% | 34.04% | |
Unrecognized tax benefits | $900,000 | $900,000 | |
Exposures related to unrecognized tax benefits | 0 | ||
Period of unrecognized tax benefits change | 12 months | ||
Accrued penalties and interest expenses | $200,000 | $200,000 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Weighted-Average Shares Used for Net Income per Share (Detail) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares-basic | 39,913,946 | 39,152,923 |
Effect of dilutive stock-based awards | 2,045,772 | 1,634,803 |
Weighted-average shares-diluted | 41,959,718 | 40,787,726 |
Earnings_Per_Share_AntiDilutiv
Earnings Per Share - Anti-Dilutive Securities Excluded from Diluted Net Income per Share (Detail) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options and restricted stock units were excluded from calculation of diluted net earnings share | 134,363 | 1,385,212 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options and restricted stock units were excluded from calculation of diluted net earnings share | 129,508 | 1,362,462 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options and restricted stock units were excluded from calculation of diluted net earnings share | 4,855 | 22,750 |
Share_Repurchases_Additional_I
Share Repurchases - Additional Information (Detail) (USD $) | 3 Months Ended | ||
2-May-15 | 3-May-14 | Jan. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Common stock share repurchased | 0 | 241,322 | |
Common stock share purchase price | $15,700,000 | ||
Unpaid principal amount of notes payable for share repurchases | 19,285,000 | 19,285,000 | |
Interest expense related to notes payable for share repurchases | $200,000 | $200,000 | |
Promissory Notes [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Debt instrument, stated interest percentage | 5.00% | ||
Debt instrument, term | 8 years |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $5,299,000 | $2,231,000 |
Stock-based compensation cost capitalized | $0 | $0 |
StockBased_Compensation_2012_S
Stock-Based Compensation - 2012 Stock Option Plan and 2012 Stock Incentive Plan - Additional Information (Detail) (2012 Stock Option Plan and 2012 Stock Incentive Plan [Member], USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | 2-May-15 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Numbers of options outstanding | 6,789,562 |
Options outstanding, weighted-average exercise price per share | $52.15 |
Numbers of options vested | 5,135,927 |
Vested weighted-average exercise price per share | $48.30 |
Aggregate intrinsic value of options outstanding | $239.50 |
Aggregate intrinsic value of options vested or expected to vest | 236 |
Aggregate intrinsic value of options exercisable | 190 |
Weighted-average remaining contractual life of options exercisable | 7 years 8 months 5 days |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to unvested options | 32.7 |
Unrecognized compensation expense with weighted-average period | 3 years 10 months 2 days |
Restricted Stock And Restricted Stock Unit Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to unvested options | $34.20 |
Unrecognized compensation expense with weighted-average period | 3 years 7 months 10 days |
Restricted stock awards outstanding | 744,852 |
Restricted stock awards outstanding with weighted-average grant date fair value per share | $65.80 |
Vested restricted stock awards | 10,428 |
Vested weighted-average exercise price per share | $48.70 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Aircraft [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2015 |
Aircraft [Member] | |
Related Party Transaction [Line Items] | |
Assets purchase price | $9.50 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 16, 2015 | Sep. 05, 2014 | 2-May-15 | Jan. 31, 2015 | Mar. 16, 2015 | |
Commitment And Contingencies [Line Items] | |||||
Material off balance sheet commitments | $0 | ||||
Fees and costs awarded to plaintiff's attorney | 9,500,000 | ||||
Litigation accrual | 9,500,000 | ||||
Revised litigation accrual | 8,000,000 | ||||
Loss contingency payment to third party | 2,400,000 | ||||
Merchandise discount coupon rate | 33.00% | 33.00% | |||
Merchandise discount coupon expiry period | 1 year | ||||
Loss contingency, description | On March 16, 2015, the Company, through the third party claims administrator, began mailing the class action award to class members. The Company, through the third party claims administrator, paid approximately $2.4M in cash awards to the class members and mailed 33% discount coupons, good for one year, on purchases up to $10,000, to class members that did not respond to the cash award. On April 16, 2015, the court issued an order providing additional guidance regarding the manner in which class members can use the 33% merchandise discount coupon. Specifically, the court ordered that the 33% coupons may be combined with the Companybs other promotional offers. | ||||
Maximum [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Merchandise discount coupon, purchases | 10,000 | 10,000 | |||
Estimated Class Member Response [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Decrease in litigation charge | ($1,500,000) |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
Customer | Customer | |
Segment | ||
Segment Reporting Information [Line Items] | ||
Number of operating segment | 1 | |
Number of customers accounted for more than 10% of Company's revenues | 0 | 0 |
Sales [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Portion of specified customers portion in total revenues | 10.00% | 10.00% |
Segment_Reporting_Net_Revenues
Segment Reporting - Net Revenues (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Segment Reporting Information [Line Items] | ||
Total net revenues | $422,445 | $366,254 |
Furniture [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 272,275 | 228,035 |
Non-furniture [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | $150,170 | $138,219 |