Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 25, 2016 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RH | ||
Entity Registrant Name | Restoration Hardware Holdings Inc | ||
Entity Central Index Key | 1,528,849 | ||
Current Fiscal Year End Date | --01-30 | ||
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 | 40,583,845 | ||
Entity Public Float | $ 2,794,100,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 349,897 | $ 148,934 |
Short-term investments | 130,801 | 62,168 |
Accounts receivable—net | 28,567 | 25,965 |
Merchandise inventories | 725,392 | 559,297 |
Prepaid expense and other current assets | 79,020 | 87,976 |
Total current assets | 1,313,677 | 884,340 |
Long-term investments | 22,054 | 18,338 |
Property and equipment—net | 515,605 | 390,844 |
Goodwill | 124,301 | 124,424 |
Trademarks and domain names | 48,309 | 47,863 |
Other intangible assets—net | 227 | 691 |
Non-current deferred tax assets | 36,739 | 36,593 |
Other non-current assets | 27,560 | 22,906 |
Total assets | 2,088,472 | 1,525,999 |
Current liabilities: | ||
Accounts payable and accrued expenses | 280,714 | 235,159 |
Deferred revenue and customer deposits | 106,769 | 73,550 |
Other current liabilities | 65,072 | 35,587 |
Total current liabilities | 452,555 | 344,296 |
Financing obligations under build-to-suit lease transactions | 146,621 | 124,770 |
Deferred rent and lease incentives | 53,986 | 40,552 |
Non-current deferred tax liabilities | 133 | |
Other non-current obligations | 29,349 | 28,944 |
Total liabilities | $ 1,202,312 | $ 823,083 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding as of January 30, 2016 and January 31, 2015 | ||
Common stock, $0.0001 par value per share, 180,000,000 shares authorized, 40,878,163 shares issued and 40,583,275 shares outstanding as of January 30, 2016; 40,184,803 shares issued and 39,892,540 shares outstanding as of January 31, 2015 | $ 4 | $ 4 |
Additional paid-in capital | 763,566 | 668,989 |
Accumulated other comprehensive loss | (2,700) | (502) |
Retained earnings | 144,813 | 53,710 |
Treasury stock—at cost, 294,888 shares as of January 30, 2016 and 292,263 shares as of January 31, 2015 | (19,523) | (19,285) |
Total stockholders’ equity | 886,160 | 702,916 |
Total liabilities and stockholders’ equity | 2,088,472 | 1,525,999 |
Convertible Senior Notes Due 2019 [Member] | ||
Current liabilities: | ||
Convertible senior notes due-net | 298,267 | $ 284,388 |
Convertible Senior Notes Due 2020 [Member] | ||
Current liabilities: | ||
Convertible senior notes due-net | $ 221,534 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2016 | Jan. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
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 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 40,878,163 | 40,184,803 |
Common stock, shares outstanding | 40,583,275 | 39,892,540 |
Treasury stock, shares | 294,888 | 292,263 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Statement [Abstract] | |||
Net revenues | $ 2,109,006 | $ 1,867,422 | $ 1,550,961 |
Cost of goods sold | 1,356,314 | 1,176,648 | 994,081 |
Gross profit | 752,692 | 690,774 | 556,880 |
Selling, general and administrative expenses | 567,131 | 525,048 | 502,029 |
Income from operations | 185,561 | 165,726 | 54,851 |
Interest expense—net | 35,677 | 17,551 | 5,733 |
Income before income taxes | 149,884 | 148,175 | 49,118 |
Income tax expense | 58,781 | 57,173 | 30,923 |
Net income | $ 91,103 | $ 91,002 | $ 18,195 |
Weighted-average shares used in computing basic net income per share | 40,190,448 | 39,457,491 | 38,671,564 |
Basic net income per share | $ 2.27 | $ 2.31 | $ 0.47 |
Weighted-average shares used in computing diluted net income per share | 42,256,559 | 41,378,210 | 40,416,630 |
Diluted net income per share | $ 2.16 | $ 2.20 | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 91,103 | $ 91,002 | $ 18,195 |
Net losses from foreign currency translation | (2,164) | (1,143) | (582) |
Net unrealized holding gains (losses) on available-for-sale investments | (34) | 12 | |
Total comprehensive income | $ 88,905 | $ 89,871 | $ 17,613 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] |
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 | 0 | $ 0 | 0 | 0 | 0 | $ 0 |
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 | 18,195 | 18,195 | ||||
Losses from foreign currency translation | (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 | ||||
Stock-based compensation | 17,072 | 17,072 | ||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | $ 0 |
Issuance of restricted stock, Shares | 7,592 | |||||
Vested and delivered restricted stock units | (2,795) | (2,795) | ||||
Vested and delivered restricted stock units, Shares | 56,003 | |||||
Exercise of stock options—including tax benefit | 32,500 | 32,500 | ||||
Exercise of stock options-including tax benefit, Shares | 956,091 | |||||
Repurchases of common stock | (16,575) | $ (16,575) | ||||
Repurchases of common stock, Shares | (251,910) | 251,910 | ||||
Equity component value of convertible note issuance-net | 70,506 | 70,506 | ||||
Sale of common stock warrant | 40,390 | 40,390 | ||||
Purchase of convertible note hedge | (73,325) | (73,325) | ||||
Net income | 91,002 | 91,002 | ||||
Losses from foreign currency translation | (1,143) | (1,143) | ||||
Net unrealized holding gains (losses) on investments | 12 | 12 | ||||
Balances at Jan. 31, 2015 | 702,916 | $ 4 | 668,989 | (502) | 53,710 | $ (19,285) |
Balances, shares at Jan. 31, 2015 | 39,892,540 | 292,263 | ||||
Stock-based compensation | 24,223 | 24,223 | ||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | $ 0 |
Issuance of restricted stock, Shares | 6,535 | |||||
Vested and delivered restricted stock units | (4,863) | (4,863) | ||||
Vested and delivered restricted stock units, Shares | 78,769 | |||||
Exercise of stock options—including tax benefit | 35,885 | 35,885 | ||||
Exercise of stock options-including tax benefit, Shares | 608,056 | |||||
Repurchases of common stock | (238) | $ (238) | ||||
Repurchases of common stock, Shares | (2,625) | 2,625 | ||||
Equity component value of convertible note issuance-net | 77,192 | 77,192 | ||||
Sale of common stock warrant | 30,390 | 30,390 | ||||
Purchase of convertible note hedge | (68,250) | (68,250) | ||||
Net income | 91,103 | 91,103 | ||||
Losses from foreign currency translation | (2,164) | (2,164) | ||||
Net unrealized holding gains (losses) on investments | (34) | (34) | ||||
Balances at Jan. 30, 2016 | $ 886,160 | $ 4 | $ 763,566 | $ (2,700) | $ 144,813 | $ (19,523) |
Balances, shares at Jan. 30, 2016 | 40,583,275 | 294,888 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 91,103,000 | $ 91,002,000 | $ 18,195,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 44,595,000 | 34,463,000 | 27,654,000 |
Impairment of long-lived assets | 0 | 0 | 1,385,000 |
Amortization of purchase premiums and accretion of purchases discount—net | 1,166,000 | ||
Amortization of debt discount | 22,114,000 | 7,969,000 | |
Excess tax benefit from exercise of stock options | (10,443,000) | (16,421,000) | (3,685,000) |
Stock-based compensation expense | 24,223,000 | 17,072,000 | 67,622,000 |
Deferred income taxes | (6,011,000) | 2,693,000 | 5,602,000 |
Other non-cash interest expense | 2,473,000 | 1,342,000 | 671,000 |
Change in assets and liabilities: | |||
Accounts receivable | (2,629,000) | (3,991,000) | (4,995,000) |
Merchandise inventories | (166,505,000) | (106,036,000) | (100,937,000) |
Prepaid expense | 8,929,000 | 15,123,000 | (22,819,000) |
Other current assets | 1,888,000 | (6,030,000) | (3,129,000) |
Accounts payable and accrued expenses | 44,378,000 | 25,470,000 | 57,318,000 |
Deferred revenue and customer deposits | 33,213,000 | 19,955,000 | 8,750,000 |
Other current liabilities | 39,580,000 | (3,131,000) | 28,883,000 |
Deferred rent and lease incentives | 13,597,000 | 3,574,000 | 7,196,000 |
Other non-current obligations | 215,000 | (563,000) | (190,000) |
Net cash provided by operating activities | 141,886,000 | 82,491,000 | 87,521,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (119,461,000) | (110,359,000) | (93,868,000) |
Acquisition of buildings and land | (13,999,000) | ||
Construction related deposits | (20,049,000) | (9,250,000) | |
Purchase of trademarks and domain names | (339,000) | (453,000) | |
Purchase of investments | (217,379,000) | (91,604,000) | |
Maturities of investments | 143,830,000 | 11,118,000 | |
Net cash used in investing activities | (227,397,000) | (200,548,000) | (93,868,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Gross borrowings under revolving line of credit | 749,945,000 | 1,670,876,000 | |
Gross repayments under revolving line of credit | (835,370,000) | (1,667,952,000) | |
Revolving line of credit deferred financing fees | (2,133,000) | ||
Proceeds from issuance of convertible senior notes | 296,250,000 | 350,000,000 | |
Proceeds from issuance of warrants | 30,390,000 | 40,390,000 | |
Purchase of convertible note hedges | (68,250,000) | (73,325,000) | |
Debt issuance costs related to convertible senior notes | (2,382,000) | (5,385,000) | |
Borrowings under build-to-suit lease transactions | 1,776,000 | ||
Payments on capital leases | (248,000) | (1,803,000) | (2,555,000) |
Proceeds from exercise of stock options | 25,606,000 | 16,400,000 | 7,629,000 |
Excess tax benefit from exercise of stock options | 10,443,000 | 16,421,000 | 3,685,000 |
Tax withholdings related to issuance of stock-based awards | (5,027,000) | (3,116,000) | (178,000) |
Net cash provided by financing activities | 286,782,000 | 253,800,000 | 11,505,000 |
Effects of foreign currency exchange rate translation | (308,000) | (198,000) | (123,000) |
Net increase in cash and cash equivalents | 200,963,000 | 135,545,000 | 5,035,000 |
Cash and cash equivalents | |||
Beginning of period | 148,934,000 | 13,389,000 | 8,354,000 |
End of period | 349,897,000 | 148,934,000 | 13,389,000 |
Cash paid for interest | 13,369,000 | 8,611,000 | 5,038,000 |
Cash paid for taxes | 29,135,000 | 60,121,000 | 1,521,000 |
Non-cash transactions: | |||
Property and equipment additions due to build-to-suit lease transactions | 96,323,000 | 89,829,000 | 33,494,000 |
Property and equipment reduction due to effected sale leaseback (Note 5) | (74,855,000) | ||
Property and equipment additions from use of construction related deposits | 13,915,000 | ||
Property and equipment additions in accounts payable and accrued expenses at period-end | 12,108,000 | 10,875,000 | 4,204,000 |
Property and equipment acquired under capital lease | 88,000 | 38,000 | 238,000 |
Building acquired under capital lease | 6,798,000 | ||
Issuance of non-current notes payable related to share repurchases from former employees | 238,000 | $ 16,575,000 | $ 2,710,000 |
Trademarks and Domain Names [Member] | |||
Non-cash transactions: | |||
Property and equipment additions in accounts payable and accrued expenses at period-end | $ 107,000 |
Nature of Business
Nature of Business | 12 Months Ended |
Jan. 30, 2016 | |
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 child and teen furnishings. These products are sold through the Company’s stores, catalogs and websites. As of January 30, 2016, the Company operated a total of 69 retail stores and 17 outlet stores in 28 states, the District of Columbia and Canada, and had sourcing operations in Shanghai and Hong Kong. |
Organization
Organization | 12 Months Ended |
Jan. 30, 2016 | |
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.” On November 7, 2012, the Company completed its initial public offering. 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. Convertible Senior Notes In June 2015, the Company issued in a private offering $250 million principal amount of 0.00% convertible senior notes due 2020 and, in July 2015, the Company issued an additional $50 million principal amount pursuant to the exercise of the overallotment option granted to the initial purchasers as part of its June 2015 offering (collectively, the “2020 Notes”). In connection with the issuance of these notes, the Company entered into convertible note hedge transactions for which it paid an aggregate amount of $68.3 million. In addition, the Company sold warrants for which it received aggregate proceeds of $30.4 million. Taken together, the Company received total cash proceeds of $256.0 million, net of discounts upon original issuance and offering costs of $6.1 million. Refer to Note 9— Convertible Senior Notes In June 2014, the Company issued $350 million principal amount of 0.00% convertible senior notes due 2019 in a private offering. In connection with the issuance of these notes, the Company entered into convertible note hedge transactions for which it paid an aggregate $73.3 million. In addition, the Company sold warrants for which it received aggregate proceeds of $40.4 million. Taken together, the Company received total cash proceeds of $311.7 million, net of the initial purchasers’ discounts and commissions and offering costs of $5.4 million. Refer to Note 9— Convertible Senior Notes |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
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. Certain prior year amounts have been reclassified for consistency with the current year presentation. This reclassification had no effect on the previously reported consolidated results of operations, financial position or cash flows. 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 January 30, 2016 (“fiscal 2015”), January 31, 2015 (“fiscal 2014”) and February 1, 2014 (“fiscal 2013”) each consisted of 52 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 all highly liquid investments with original maturities of 90 days or less to be cash equivalents. Investments All of the Company’s investments are classified as available-for-sale and are carried at fair value. The Company invests excess cash primarily in investment-grade interest-bearing securities such as money market funds, certificates of deposit, commercial paper, government agency obligations and guaranteed obligations of the U.S. government, all of which are subject to minimal credit and market risks. Investments that have an original maturity of 91 days or more at the date of purchase and a current maturity of less than one year are classified as short-term investments, while investments with a current maturity of more than one year are classified as long-term investments. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. The cost of available-for-sale marketable securities sold is based on the specific identification method. Unrealized holding gains and losses, net of tax, are recorded in accumulated other comprehensive loss on the consolidated statements of stockholders’ equity until realized. Realized gains and losses, interest income, dividends, and amortization and accretion of purchase premiums and discounts on investments are included in interest expense on the consolidated statements of income. Total interest income and accretion of purchase discounts on investments were $1.5 million and $0.1 million in fiscal 2015, respectively. Total amortization of purchase premiums on investments was $1.2 million in fiscal 2015. The Company did not record any realized gains and losses or dividends in fiscal 2015. 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 January 30, 2016 and January 31, 2015, and at various time throughout these fiscal years, the Company had cash in financial institutions in excess of the amount insured by the FDIC and CDIC. 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, receivables related to our contract business and other miscellaneous receivables. Accounts receivable is presented net of allowance for doubtful accounts, which is recorded on a specific identification basis. The allowance for doubtful accounts was $2.3 million as of both January 30, 2016 and January 31, 2015. 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 shipped 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 or inventory balances. The Company’s inventory reserve balances were $19.3 million and $14.6 million as of January 30, 2016 and January 31, 2015, 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 expense, recorded in selling, general and administrative expenses on the consolidated statements of income, were $107.7 million, $114.7 million, and $83.0 million in fiscal 2015, fiscal 2014, and fiscal 2013, 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 after they are mailed and the majority of the amortization occurs within the first five to nine months, with the exception of the Holiday Source Books, which are generally fully amortized within a three-month period after they are mailed. 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 statements of income. 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 $35.8 million and $46.9 million of capitalized catalog costs that are included in prepaid expense and other current assets on the consolidated balance sheets as of January 30, 2016, and January 31, 2015, 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 and building improvements 40 years Machinery, equipment and aircraft 3 to 10 years Furniture, fixtures and equipment 3 to 7 years Computer software 3 to 7 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. The Company expenses all internal-use software costs incurred in the preliminary project stage and capitalizes certain direct costs associated with the development and purchase of internal-use software, including external costs of materials and services and internal payroll costs related to the software project, within property and equipment. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally between three and seven years. 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 interest expense is being incurred. The Company capitalized interest of $2.3 million, $1.6 million and $0.9 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. During fiscal 2015, all of the $2.3 million capitalized interest relates to the capitalization of non-cash interest associated with the amortization of the convertible senior notes debt discount. During fiscal 2014, $1.1 million of the $1.6 million capitalized interest relates to the capitalization of non-cash interest associated with the amortization of the convertible senior notes debt discount. Property and equipment acquired under non-cancelable leases, which meet the criteria of capital leases, are capitalized and amortized over the lesser of the useful life of the asset or the lease term. For buildings held under capital lease, unless the fair value of the land at lease inception exceeds 25% of the aggregate fair value of the leased land and building, rent payments under the leases are recognized using the effective interest method as a reduction of the capital lease obligation and interest expense. Pursuant to Accounting Standards Codification (“ASC”) 840— Leases (“ASC 840”) 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, domain names and the fair market value of the Company’s leases. The Company does not amortize trademarks and domain names as the Company defines the life of these assets 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 gross domestic product 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 2015, 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 2015 and fiscal 2014. No impairment to goodwill has been recorded in any period. Trademarks and Domain Names The Company annually evaluates whether trademarks and domain names continue to have an indefinite life. Trademarks and domain names 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 2015, 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 or domain names for impairment. If trademarks and domain names are not qualitatively assessed or if trademarks and domain names 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 results of operations and projected future cash flows. The Company tested the trademarks and domain names 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 is 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 and 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 RH Baby & Child Gallery, which is included in selling, general and administrative expenses on the consolidated statements of income. The Company did not record an impairment charge on long-lived assets in fiscal 2015 or fiscal 2014. Lease Accounting The Company leases stores, distribution facilities, office space and, less significantly, certain machinery and equipment. The Company classifies leases at the inception of the lease as a capital lease or an operating lease. Build-to-Suit Lease Transactions The Company is sometimes involved in the construction of leased stores, which, depending on the extent to which it is involved, the Company may be the “deemed owner” of the leased premises for accounting purposes during the construction period pursuant to upon commencement of the construction project, as property and equipment U pon completion of the construction project, the Company performs a sale-leaseback analysis to determine if it does not have any forms of “continuing involvement” and therefore can remove the assets and related liabilities from its consolidated balance sheets. If the assets and related liabilities cannot be removed from the Company’s consolidated balance sheets, the Company accounts for the transactions as a financing lease. These lease transactions are referred to as build-to-suit lease transactions. Rent expense relating to the land is recognized on a straight-line basis once construction begins, which is determined using the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate. Once cash payments commence under the lease, all amounts in excess of land rent expense are recorded as a debt-service payment and are recognized as interest expense and a reduction of the financing obligation. Similar to capital leases, the expense recorded within the consolidated statements of income over the lease term is equal to the cash rent payments made under the lease. The primary difference in the consolidated statements of income between build-to-suit lease transactions and operating leases is the timing of recognition and the classification of expenses. Expenses related to operating leases are classified as rent expense compared to expenses related to build-to-suit lease transactions which are classified as a combination of rent expense, depreciation expense and interest expense. Operating and Capital Leases 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. Certain of the Company’s property and equipment are held under capital leases. These assets are included in property and equipment and depreciated over the lesser of the useful life of the asset or the lease term. For buildings held under capital leases, unless the fair value of the land at lease inception exceeds 25% of the aggregate fair value of the leased land and buildings, rent payments under the leases are recognized using the effective interest method as a reduction of the capital lease obligation and interest expense. Pursuant to ASC 840 to the product of the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate. The remaining cash payment is 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 rent expenses, the Company recognizes rent expense on a straight-line basis over the lease term. Tenant improvement allowances received from landlords under operating leases are recorded in deferred rent and lease incentives on the consolidated balance sheets, and are amortized on a straight-line basis over the lease term. During fiscal 2015, the Company received $9.2 million related to profit participation arrangements for two of its distribution center facilities. Such amounts were recorded in deferred rent and lease incentives on the consolidated balance sheets and will be amortized on a straight-line basis over the respective lease terms. Debt Issuance Costs The Company capitalizes debt issuance costs related to its convertible senior notes and revolving line of credit. Capitalized costs are included in other non-current assets on the consolidated balance sheets as deferred financing fees and convertible debt issuance costs and amortization of such fees are included in interest expense on the consolidated statements of income. Deferred financing fees, and convertible debt issuance costs related to the convertible senior notes are amortized utilizing the effective interest method. Deferred financing fees related to the revolving line of credit are amortized utilizing the straight-line method. Revenue Recognition The Company recognizes revenues and the related cost of goods sold when merchandise is received by its customers. Revenues from direct-to-customer and home-delivered sales are recognized when the merchandise is delivered to the customer. Revenues from “cash-and-carry” store sales are recognized at the point of sale in the store. Discounts or other accommodations 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 January 30, January 31, February 1, 2016 2015 2014 Balance at beginning of fiscal year $ 10,235 $ 12,142 $ 5,206 Provision for sales returns 104,028 87,217 86,541 Actual sales returns (101,575 ) (89,124 ) (79,605 ) Balance at end of fiscal year $ 12,688 $ 10,235 $ 12,142 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. Gift Cards, Gift Certificates and Merchandise Credits The Company sells gift cards, gift certificates and issues merchandise credits to its customers in its stores and through its websites and product catalogs. Such gift cards, gift certificates and merchandise credits do not have expiration dates. Revenue associated with gift cards, gift certificates and merchandise credits is deferred until either (i) redemption of the gift cards, 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 cards, gift certificates or merchandise credits to the relevant jurisdictions (breakage). The breakage rate is based on monitoring of cards and certificates issued, actual card and certificate redemptions and the Company’s analysis of when it believes it is remote that redemptions will occur. Breakage resulted in a reduction of selling, general and administrative expenses on the consolidated statements of income of $2.0 million, $3.1 million, and $2.9 million in fiscal 2015, fiscal 2014, and fiscal 2013, 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 $2.1 million and $3.0 million related to health care coverage as of January 30, 2016 and January 31, 2015, respectively. 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 $3.0 million and $2.6 million related to workers’ compensation claims as of January 30, 2016 and January 31, 2015, respectively. Stock-Based Compensation The Company recognizes the fair value of stock-based compensation in the 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 plan 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 |
Prepaid Expense and Other Asset
Prepaid Expense and Other Assets | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expense and Other Assets | NOTE 4—PREPAID EXPENSE AND OTHER ASSETS Prepaid expense and other current assets consist of the following ( in thousands January 30, January 31, 2016 2015 Capitalized catalog costs $ 35,836 $ 46,911 Vendor deposits 22,959 21,585 Prepaid expense and other current assets 20,225 19,480 Total prepaid expense and other current assets $ 79,020 $ 87,976 Other non-current assets consist of the following ( in thousands January 30, January 31, 2016 2015 Construction related deposits $ 15,384 $ 9,250 Deferred financing fees and convertible debt issuance costs 4,334 3,670 Other deposits 3,635 6,193 Other non-current assets 4,207 3,793 Total other non-current assets $ 27,560 $ 22,906 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 5—PROPERTY AND EQUIPMENT Property and equipment consists of the following ( in thousands January 30, January 31, 2016 2015 Leasehold improvements (1) $ 336,995 $ 280,602 Computer software 96,618 60,650 Furniture, fixtures and equipment 49,650 37,365 Machinery, equipment and aircraft 32,190 15,013 Land 11,188 5,396 Building and building improvements 9,811 2,205 Build-to-suit property (2) (3) 146,550 125,082 Building and equipment under capital leases 8,025 7,937 Total property and equipment 691,027 534,250 Less—accumulated depreciation and amortization (4) (175,422 ) (143,406 ) Total property and equipment—net $ 515,605 $ 390,844 (1) Leasehold improvements include construction in progress of $51.1 million and $47.7 million as of January 30, 2016, and January 31, 2015, respectively. (2) The Company capitalizes assets and records a corresponding non-current liability for build-to-suit lease transactions where it is considered the owner, for accounting purposes, during the construction period. Refer to Lease Accounting Significant Accounting Policies (3) In fiscal 2014, the Company concluded that it was the deemed owner for accounting purposes for a new distribution center located in California during the construction period pursuant to ASC 840. During the construction period, the Company capitalized the cash and non-cash assets contributed by the landlord for the construction of the distribution center on its consolidated balance sheets as an increase in property and equipment and an increase in financing obligations under build-to-suit lease transactions. During the fourth quarter of fiscal 2015, upon the completion of the construction period, the Company performed a sale-leaseback analysis and determined that it did not have any prohibitive forms of continuing involvement and therefore removed the asset and corresponding liability of $74.9 million from its consolidated balance sheet as of January 30, 2016. The effected sale leaseback did not have an impact on the consolidated statements of income or consolidated statements of cash flows in fiscal 2015. (4) Includes accumulated amortization related to equipment under capital leases of $1.6 million and $0.9 million as of January 30, 2016, and January 31, 2015, respectively. The Company recorded depreciation expense of $44.2 million, $33.7 million, and $26.5 million in fiscal 2015, fiscal 2014, and fiscal 2013, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 30, 2016 | |
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 January 30, 2016 ( in thousands Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Book Value Intangible assets subject to amortization Fair value of leases (1) Fair market write-up $ 1,924 $ (1,697 ) $ — $ 227 Fair market write-down (2) (1,467 ) 1,289 — (178 ) Total intangible assets subject to amortization $ 457 $ (408 ) $ — $ 49 Intangible assets not subject to amortization Goodwill $ 124,461 $ — $ (160 ) $ 124,301 Trademarks and domain names $ 48,309 $ — $ — $ 48,309 (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 consolidated balance sheets. The following sets forth the goodwill and intangible assets as of January 31, 2015 ( in thousands Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Book Value 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 consolidated balance sheets. (3) Customer relationships are amortized over a one-year period. The Company recorded amortization expense related to intangible assets of $0.3 million, $0.7 million, and $1.1 million in fiscal 2015, fiscal 2014, and fiscal 2013, respectively. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 30, 2016 | |
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 January 30, January 31, 2016 2015 Accounts payable $ 175,024 $ 133,063 Accrued compensation 27,698 35,942 Accrued freight and duty 27,230 22,747 Accrued sales taxes 19,269 21,240 Accrued occupancy 15,095 7,530 Accrued catalog costs 5,988 4,582 Accrued legal settlements 3,000 4,309 Accrued professional fees 2,736 2,319 Other accrued expenses 4,674 3,427 Total accounts payable and accrued expenses $ 280,714 $ 235,159 Accounts payable included negative cash balances due to outstanding checks of $18.4 million and $17.5 million as of January 30, 2016, and January 31, 2015, respectively. Other current liabilities consist of the following ( in thousands January 30, January 31, 2016 2015 Federal and state tax payable $ 27,838 $ 1,509 Unredeemed gift card and merchandise credit liability 24,364 23,004 Allowance for sales returns 12,688 10,235 Capital lease obligations—current 182 255 Other liabilities — 584 Total other current liabilities $ 65,072 $ 35,587 |
Other Non-Current Obligations
Other Non-Current Obligations | 12 Months Ended |
Jan. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Obligations | NOTE 8—OTHER NON-CURRENT OBLIGATIONS Other non-current obligations consist of the following ( in thousands January 30, January 31, 2016 2015 Notes payable for share repurchases $ 19,523 $ 19,285 Capital lease obligations—non-current 7,399 7,487 Unrecognized tax benefits 1,125 1,108 Other non-current obligations 1,302 1,064 Total other non-current obligations $ 29,349 $ 28,944 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | NOTE 9—CONVERTIBLE SENIOR NOTES 0.00% Convertible Senior Notes due 2020 In June 2015, the Company issued in a private offering $250 million principal amount of 0.00% convertible senior notes due 2020 and, in July 2015, the Company issued an additional $50 million principal amount pursuant to the exercise of the overallotment option granted to the initial purchasers as part of its June 2015 offering (collectively, the “2020 Notes”). The 2020 Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as the Trustee. The 2020 Notes will mature on July 15, 2020, unless earlier purchased by the Company or converted. The 2020 Notes will not bear interest, except that the 2020 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 2020 Notes. The 2020 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 2020 Notes, which may result in the acceleration of the maturity of the 2020 Notes, as described in the indenture governing the 2020 Notes. The 2020 Notes are guaranteed by the Company’s primary operating subsidiary, Restoration Hardware, Inc., as Guarantor. The guarantee is the unsecured obligation of the Guarantor and is subordinated to the Guarantor’s obligations from time to time with respect to its credit agreement and ranks equal in right of payment with respect to Guarantor’s other obligations. The initial conversion rate applicable to the 2020 Notes is 8.4656 shares of common stock per $1,000 principal amount of 2020 Notes, which is equivalent to an initial conversion price of approximately $118.13 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” as defined in the indenture, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its 2020 Notes in connection with such make-whole fundamental change. Prior to March 15, 2020, the 2020 Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2015, 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 2020 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 January 30, 2016, none of these conditions have occurred and, as a result, the 2020 Notes are not convertible as of January 30, 2016. On and after March 15, 2020, 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 2020 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the 2020 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. The Company may not redeem the 2020 Notes; however, upon the occurrence of a fundamental change (as defined in the indenture governing the notes), holders may require the Company to purchase all or a portion of their 2020 Notes for cash at a price equal to 100% of the principal amount of the 2020 Notes to be purchased plus any accrued and unpaid special interest to, but excluding, the fundamental change purchase date. 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 2020 Notes, the Company separated the 2020 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 2020 Notes and the fair value of the liability component of the 2020 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 6.47% over the term of the 2020 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 2020 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 2020 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 2020 Notes were comprised of discounts upon original issuance of $3.8 million and third party offering costs of $2.3 million. Discounts were recorded as a contra-liability and are presented net against the convertible senior notes due 2020 balance on the consolidated balance sheets. Third party offering costs attributable to the liability component were recorded as an asset and are presented in other non-current assets on the consolidated balance sheets. During fiscal 2015, the Company recorded $0.6 million related to the amortization of debt issuance costs related to the 2020 Notes. The carrying value of the 2020 Notes is as follows ( in thousands January 30, 2016 Liability component Principal $ 300,000 Less: Debt discount (75,113 ) Net carrying amount $ 224,887 Equity component (1) $ 84,003 (1) Included in additional paid-in capital on the consolidated balance sheets. The Company recorded interest expense of $8.9 million for the amortization of the debt discount related to the 2020 Notes during fiscal 2015. 2020 Notes—Convertible Bond Hedge and Warrant Transactions In connection with the offering of the 2020 Notes in June 2015 and the exercise in full of the overallotment option in July 2015, the Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 5.1 million shares of its common stock at a price of approximately $118.13 per share. The total cost of the convertible note hedge transactions was $68.3 million. In addition, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 5.1 million shares of the Company’s common stock at a price of $189.00 per share. The Company received $30.4 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 earnings dilution from the conversion of the 2020 Notes until the Company’s common stock is above approximately $189.00 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 consolidated balance sheets. The Company recorded a deferred tax liability of $32.8 million in connection with the debt discount associated with the 2020 Notes and recorded a deferred tax asset of $26.6 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax asset are recorded in non-current deferred tax assets on the consolidated balance sheets. 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 “2019 Notes”) in a private offering. The 2019 Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as the Trustee. The 2019 Notes will mature on June 15, 2019, unless earlier purchased by the Company or converted. The 2019 Notes will not bear interest, except that the 2019 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 2019 Notes. The 2019 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 2019 Notes, which may result in the acceleration of the maturity of the 2019 Notes, as described in the indenture governing the 2019 Notes. The initial conversion rate applicable to the 2019 Notes is 8.6143 shares of common stock per $1,000 principal amount of 2019 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 2019 Notes in connection with such make-whole fundamental change. Prior to March 15, 2019, the 2019 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 2019 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 January 30, 2016, none of these conditions have occurred and, as a result, the 2019 Notes are not convertible as of January 30, 2016. 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 2019 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the 2019 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 the specified dollar amount of $1,000. The Company may not redeem the 2019 Notes; however, upon the occurrence of a fundamental change (as defined in the indenture governing the notes), holders may require the Company to purchase all or a portion of their 2019 Notes for cash at a price equal to 100% of the principal amount of the 2019 Notes to be purchased plus any accrued and unpaid special interest to, but excluding, the fundamental change purchase date. 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 2019 Notes, the Company separated the 2019 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 2019 Notes and the fair value of the liability component of the 2019 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 2019 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 2019 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 2019 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 2019 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 consolidated balance sheets. Third party offering costs attributable to the liability component were recorded as an asset and are presented in other non-current assets on the consolidated balance sheets. The Company recorded $0.8 million and $0.5 million related to the amortization of debt issuance costs in fiscal 2015 and fiscal 2014, respectively, related to the 2019 Notes. The carrying values of the 2019 Notes are as follows ( in thousands January 30, January 31, 2016 2015 Liability component Principal $ 350,000 $ 350,000 Less: Debt discount (49,289 ) (62,513 ) Net carrying amount $ 300,711 $ 287,487 Equity component (1) $ 70,482 $ 70,482 (1) Included in additional paid-in capital on the consolidated balance sheets. The Company recorded interest expense of $13.2 million and $8.0 million for the amortization of the debt discount related to the 2019 Notes in fiscal 2015 and fiscal 2014, respectively. Convertible Bond Hedge and Warrant Transactions In connection with the offering of the 2019 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 2019 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 consolidated balance sheets. The Company recorded a deferred tax liability of $27.5 million in connection with the debt discount associated with the 2019 Notes and recorded a deferred tax asset of $28.6 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax assets are included in non-current deferred tax assets on the consolidated balance sheets. |
Line of Credit
Line of Credit | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 10—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, 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 a result of the amended and restated credit agreement, unamortized deferred financing fees of $0.2 million related to the previous facility were expensed in fiscal 2014 and $0.9 million related to the previous facility will be amortized over the life of the new revolving line of credit, which has a maturity date of November 24, 2019. On August 12, 2015, Restoration Hardware, Inc. and Restoration Hardware Canada, Inc. entered into a First Amendment (the “Amendment”) to the amended and restated credit agreement. The Amendment changes the amended and restated credit agreement definition of “Change of Control” (the occurrence of which triggers a default under the amended and restated credit agreement) so that changes in the composition of the board of directors due to actual or threatened proxy solicitations are treated in the same way as other changes in the composition of the board of directors. The availability of credit at any given time under the amended and restated credit agreement is limited by reference to a borrowing base formula based upon numerous factors, including the value of eligible inventory and eligible accounts receivable. 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 amended and restated credit agreement are secured by substantially all of the Company’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 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 January 30, 2016, the Company was in compliance with all covenants contained in the credit agreement. 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 amended and restated credit agreement contains various restrictive covenants, including, among others, limitations on the ability to grant 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 amended and restated credit agreement does not contain any significant financial or coverage ratio covenants unless the domestic availability under the revolving line of credit is less than the greater of (i) $20.0 million and (ii) 10% of the lesser of (A) the aggregate domestic commitments under the amended and restated credit agreement and (B) the domestic borrowing base. If the availability under the amended and restated credit agreement is less than the foregoing amount, then the Company 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 amended and restated credit 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. The amended and restated credit agreement requires a daily sweep of cash to prepay the loans under the agreement while (i) an event of default exists or (ii) the availability under the revolving line of credit for extensions of credit to the Company is less than the greater of (A) $20.0 million and (B) 10% of the lesser of the domestic commitments and the domestic borrowing base. On June 27, 2014, the Company paid off the principal balance and related interest under the prior credit agreement of $154.8 million using proceeds from the issuance of the 2019 Notes. As of January 30, 2016, the Company did not have any amounts outstanding under the revolving line of credit. As of January 30, 2016 and January 31, 2015, the Company had $15.0 million and $20.2 million in outstanding letters of credit, respectively. As of January 30, 2016, the Company had $535.4 million undrawn borrowing availability under the revolving line of credit. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 11—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 January 30, January 31, 2016 2015 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 70 $ — $ 70 $ 44 $ — $ 44 Commercial paper — 46,726 46,726 — 18,248 18,248 Government agency obligations — — — — 1,001 1,001 Total cash equivalents 70 46,726 46,796 44 19,249 19,293 Short-term investments Commercial paper — 15,488 15,488 — 13,996 13,996 Government agency obligations 22,011 93,302 115,313 — 48,172 48,172 Total short-term investments 22,011 108,790 130,801 — 62,168 62,168 Long-term investments Government agency obligations 7,829 14,225 22,054 — 18,338 18,338 Total long-term investments 7,829 14,225 22,054 — 18,338 18,338 Total $ 29,910 $ 169,741 $ 199,651 $ 44 $ 99,755 $ 99,799 The following table summarizes the amortized cost and estimated fair value of the available-for-sale securities within the Company’s investment portfolio based on stated maturities, which are recorded within cash and cash equivalents, short-term investments and long-term investments on the consolidated balance sheets ( in thousands January 30, January 31, 2016 2015 Cost Fair Value Cost Fair Value Range of maturity Due within 1 year $ 177,564 $ 177,527 $ 81,413 $ 81,419 Due in 1 to 2 years $ 22,033 $ 22,054 $ 18,324 $ 18,338 The Company invests excess cash primarily in investment-grade interest-bearing securities such as money market funds, certificates of deposit, commercial paper, 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 fiscal 2015 or fiscal 2014. There were no transfers into or out of level 1 and level 2 during fiscal 2015 or fiscal 2014. Available-for-sale marketable debt securities are reviewed periodically to identify possible other-than-temporary impairment. Although the Company had certain securities that were in a loss position as of January 30, 2016, the Company has no current requirement or intent to sell the securities in an unrealized loss position nor does it consider any of the unrealized losses to be credit losses. The Company expects to recover up to (or beyond) the initial cost of the investment for securities held. The available-for-sale securities in an unrealized loss position were in such a position for less than twelve months as of January 30, 2016. 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 2019 Notes and 2020 Notes (carrying value excludes the equity component of the 2019 Notes and 2020 Notes classified in stockholders’ equity) were as follows ( in thousands January 30, January 31, 2016 2015 Fair Value Carrying Value Fair Value Carrying Value Convertible senior notes due 2019 $ 257,624 $ 300,711 $ 260,444 $ 287,487 Convertible senior notes due 2020 $ 198,635 $ 224,887 $ — $ — The fair value of the 2019 Notes and 2020 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 As discussed in Note 3— Significant Accounting Policies Significant Accounting Policies |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12—INCOME TAXES The following is a summary of the income tax expense (benefit) ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Current Federal $ 55,676 $ 45,611 $ 21,593 State 9,112 9,235 4,182 Foreign 227 (596 ) (454 ) Total current tax expense 65,015 54,250 25,321 Deferred Federal (5,691 ) 3,895 6,215 State (648 ) (973 ) (596 ) Foreign 105 1 (17 ) Total deferred tax expense (benefit) (6,234 ) 2,923 5,602 Total income tax expense $ 58,781 $ 57,173 $ 30,923 A reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: Year Ended January 30, January 31, February 1, 2016 2015 2014 Provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes—net of federal tax impact 3.7 4.0 5.8 Stock-based compensation — — 21.3 Valuation allowance — — (0.1 ) Foreign income (0.1 ) (0.3 ) (0.2 ) Net adjustments to tax accruals and other 0.6 (0.1 ) 1.2 Effective tax rate 39.2 % 38.6 % 63.0 % In November 2015, the FASB issued ASU 2015-17, which amends the current requirements for an entity to separate deferred income tax liabilities and assets into current and non-current amounts on the consolidated balance sheets. To simplify the presentation of deferred income taxes, the ASU requires that all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheets. The Company has elected to early adopt the guidance on a retrospective basis effective with the consolidated balance sheet as of January 30, 2016. This is a change from the Company’s historical presentation whereby certain deferred tax assets and liabilities were classified as current and the remainder were classified as non-current. To conform to the current period presentation, the Company reclassified $27.9 million and $0.1 million which were previously included in current assets and current liabilities, respectively, as of January 31, 2015 to non-current assets and non-current liabilities, respectively, on the consolidated balance sheets. Significant components of the Company’s deferred tax assets and liabilities are as follows ( in thousands January 30, January 31, 2016 2015 Non-current deferred tax assets (liabilities) Stock-based compensation $ 32,248 $ 29,894 Inventory 29,430 26,067 Deferred lease credits 20,074 14,963 Accrued expense 18,964 22,469 Deferred revenue 1,800 1,281 U.S. impact of Canadian transfer pricing 1,420 1,410 Net operating loss carryforwards 214 752 Property and equipment (24,905 ) (17,113 ) Trademarks and domain names (18,414 ) (18,271 ) Prepaid expense and other (17,956 ) (22,182 ) Convertible senior notes (4,719 ) 1,035 State tax benefit (3,052 ) (3,350 ) Construction allowance — (1,697 ) Other 1,793 1,378 Non-current deferred tax assets 36,897 36,636 Valuation allowance (158 ) (176 ) Net non-current deferred tax assets 36,739 36,460 A reconciliation of the valuation allowance is as follows ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Balance at beginning of fiscal year $ 176 $ 206 $ 293 Net changes in deferred tax assets and liabilities (18 ) (30 ) (87 ) Balance at end of fiscal year $ 158 $ 176 $ 206 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 January 30, 2016, the Company has retained a valuation allowance totaling $0.2 million against deferred tax assets for its Shanghai operations. As of January 30, 2016, the Company had state net operating loss carryovers of $0.2 million. The state net operating loss carryovers will expire in 2019. 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 January 30, January 31, February 1, 2016 2015 2014 Balance at beginning of fiscal year $ 940 $ 1,395 $ 1,841 Gross decreases—prior period tax positions (88 ) (122 ) (151 ) Gross increases—current period tax positions 69 — — Lapses in statute of limitations — (333 ) (295 ) Balance at end of fiscal year $ 921 $ 940 $ 1,395 As of both January 30, 2016 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 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 January 30, 2016, the Company does not have any exposures related to unrecognized tax benefits that are expected to decrease in the next 12 months. The Company accounts for interest and penalties related to exposures as a component of income tax expense. The Company had interest accruals of $0.2 million associated with exposures as of both January 30, 2016, and January 31, 2015. 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 2002 and forward by virtue of net operating loss carryforwards available from those years. There are two tax examination currently in progress in the United States. The Company may also be subject to audits in Canada for years 2008 and forward. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NOTE 13—NET INCOME PER SHARE The weighted-average shares used for net income per share is as follows: Year Ended January 30, January 31, February 1, 2016 2015 2014 Weighted-average shares—basic 40,190,448 39,457,491 38,671,564 Effect of dilutive stock-based awards 2,066,111 1,920,719 1,745,066 Weighted-average shares—diluted 42,256,559 41,378,210 40,416,630 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: Year Ended January 30, January 31, February 1, 2016 2015 2014 Options 522,390 1,009,157 774,745 Restricted stock units 12,916 4,253 90,988 Total anti-dilutive stock-based awards 535,306 1,013,410 865,733 |
Share Repurchases
Share Repurchases | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Share Repurchases | NOTE 14—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. The repurchases are settled with the issuance of promissory notes that bear interest, which is paid annually. The Company’s Year Ended January 30, January 31, February 1, 2016 2015 2014 Shares repurchased 2,625 251,910 40,353 Fair value at purchase price (in thousands) $ 238 $ 16,575 $ 2,710 Weighted-average interest rate 3 % 5 % 5 % Weighted-average term 7 years 8 years 10 years As of January 30, 2016 and January 31, 2015, the aggregate unpaid principal amount of the notes payable for share repurchases was $19.5 million and $19.3 million, respectively, which is included in other non-current obligations on the consolidated balance sheets. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company recorded interest expense on the outstanding notes of $1.0 million, $0.9 million and $0.1 million, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 15—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 consolidated statements of income. The Company recorded stock-based compensation expense of $24.2 million, $17.1 million and $67.6 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. No stock-based compensation cost has been capitalized in the accompanying consolidated financial statements. 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 as Co-Chief Executive Officers at the time. 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 of $52.0 million related to these awards in fiscal 2012. 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 was 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. As of January 31, 2015, there were a total of 13,442,519 shares issuable under the Option Plan and Stock Incentive Plan. On February 2, 2015, an additional 797,851 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 to 14,240,370. 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 January 30, 2016 was 2,151,580. 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 1, 2016, an additional 811,666 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 — A summary of stock option activity under the Option Plan and the Stock Incentive Plan for fiscal 2015 is as follows: Options Weighted-Average Exercise Price Outstanding—January 31, 2015 6,716,306 $ 51.26 Granted 687,600 89.75 Exercised (610,641 ) 42.09 Cancelled (257,692 ) 62.96 Outstanding—January 30, 2016 6,535,573 $ 55.71 The fair value of stock options issued was estimated on the date of grant using the following assumptions: Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Expected volatility 37.7 % 39.7 % 39.7 % Expected life (years) 6.5 6.5 6.7 Risk-free interest rate 1.8 % 2.0 % 1.9 % Dividend yield — — — A summary of additional information about stock options is as follows: Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Weighted-average fair value per share of stock options granted $ 36.43 $ 26.92 $ 30.49 Aggregate intrinsic value of stock options exercised (in thousands) $ 32,590 $ 62,015 $ 11,623 Fair value of stock options vested (in thousands) $ 8,611 $ 2,246 $ 33,871 Information about stock options outstanding, vested or expected to vest, and exercisable as of January 30, 2016 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted- Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Number of Options Weighted- Average Exercise Price $24.00 - $39.00 853,342 6.75 $ 28.29 794,467 $ 27.85 $46.50 - $46.50 2,976,826 6.75 46.50 2,976,826 46.50 $56.27 - $74.03 938,935 8.27 61.67 83,505 61.70 $75.43 - $75.43 1,020,000 7.42 75.43 1,008,000 75.43 $76.80 - $101.84 746,470 9.20 89.33 20,042 81.60 Total 6,535,573 7.35 $ 55.71 4,882,840 $ 49.84 Vested or expected to vest 6,336,741 7.31 $ 55.00 The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of January 30, 2016 was $73.8 million, $73.6 million, and $57.2 million, respectively. Stock options exercisable as of January 30, 2016 had a weighted-average remaining contractual life of 6.92 years. The Company recorded stock-based compensation expense for stock options of $10.4 million, $6.9 million and $1.3 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. As of January 30, 2016, the total unrecognized compensation expense related to unvested options was $35.9 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.59 years. 2012 Stock Incentive Plan — The Company grants restricted stock awards, which include restricted stock and restricted stock units, to its employees and members and advisor of its Board of Directors. A summary of restricted stock award activity under the Stock Incentive Plan for fiscal 2015 is as follows: Awards Weighted-Average Grant Date Fair Value Intrinsic Value Outstanding—January 31, 2015 719,998 $ 64.09 Granted 295,512 90.14 Released (137,227 ) 65.69 Cancelled (72,368 ) 66.96 $ 49,660,482 Outstanding—January 30, 2016 805,915 $ 73.11 A summary of additional information about restricted stock awards is as follows: Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Weighted-average fair value per share of awards granted $ 90.14 $ 63.59 $ 65.37 Grant date fair value of awards released (in thousands) $ 12,223 $ 6,172 $ 760 The Company recorded stock-based compensation expense for restricted stock awards of $13.8 million, $10.2 million and $2.7 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. As of fiscal 2015, the total unrecognized compensation expense related to unvested restricted stock awards was $40.4 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.46 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. 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 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 the end of fiscal 2013, 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 30, 2016 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | NOTE 16—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 2015, fiscal 2014, or fiscal 2013. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 17—RELATED PARTY TRANSACTIONS Aircraft Time Sharing Agreement On March 29, 2016, Restoration Hardware, Inc., a wholly-owned subsidiary of the Company entered into an Amended and Restated Aircraft Time Sharing Agreement (the “Time Sharing Agreement”) with Gary Friedman, its Chief Executive Officer. The Time Sharing Agreement governs use of any of the Company’s aircraft (“Corporate Aircraft”) by Mr. Friedman for personal trips and provides that Mr. Friedman will lease such Corporate Aircraft and pay Restoration Hardware, Inc. 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. 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 18—COMMITMENTS AND CONTINGENCIES Leases The Company leases certain property consisting of retail and outlet stores, corporate offices, distribution centers and equipment. A majority of the Company’s leases expire at various dates through fiscal 2032. The Company has a lease for one gallery location that expires in fiscal 2058. 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 rent payments, with provisions for additional rent based on a percentage of sales, after meeting certain sales thresholds, and for payment of certain expenses. The aggregate future minimum rent payments under leases in effect as of January 30, 2016, are as follows ( in thousands Lease agreements accounted for as: Capital Leases (1) Operating Leases Build-to-Suit Total 2016 $ 1,147 $ 78,586 $ 17,523 $ 97,256 2017 1,116 67,038 35,353 103,507 2018 1,132 58,518 38,200 97,850 2019 1,155 54,219 39,993 95,367 2020 1,194 48,684 40,525 90,403 Thereafter 10,374 334,880 631,528 976,782 Minimum lease commitments 16,118 $ 641,925 $ 803,122 $ 1,461,165 Less—amount representing interest (8,537 ) Present value of capital lease obligations 7,581 Less—current capital lease obligations (182 ) Non-current capital lease obligations $ 7,399 (1) The current and non-current capital lease obligations are included in other current liabilities and other non-current obligations, respectively, on the consolidated balance sheets. Lease payments that depend on factors that are not measurable at the inception of the lease, such as future sales volume, represent contingent rent expense and are excluded from minimum lease payments and included in the determination of total rent 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 rent under lease agreements accounted for as operating leases and lease agreements accounted for as build-to-suit lease transactions are as follows ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Lease agreements accounted for as operating leases Minimum rent $ 76,246 $ 75,654 $ 66,686 Contingent rent 10,209 7,989 6,208 Total operating leases $ 86,455 $ 83,643 $ 72,894 Lease agreements accounted for as build-to-suit lease transactions (1) Minimum rent $ 12,755 $ 7,375 $ 1,980 Contingent rent 442 122 — Total build-to-suit lease transactions $ 13,197 $ 7,497 $ 1,980 (1) As described in Note 3— Significant Accounting Policies In addition to the above, non-cash rent expense recognized within the consolidated statements of income was $2.9 million, $2.9 million and $3.9 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively, which represents the straight-line impact and amortization of tenant allowances under operating leases and land rent expense recorded for build-to-suit lease transactions prior to cash payments occurring under the leases. Commitments The Company had no material off balance sheet commitments as of January 30, 2016. 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 January 30, 2016, 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. Hernandez v. Restoration Hardware 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 $2.4 million 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 | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 19—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 Year Ended January 30, January 31, February 1, 2016 2015 2014 Furniture $ 1,295,486 $ 1,116,351 $ 909,390 Non-furniture 813,520 751,071 641,571 Total net revenues $ 2,109,006 $ 1,867,422 $ 1,550,961 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 2015, fiscal 2014, or fiscal 2013. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | NOTE 20—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly financial data for fiscal 2015 and fiscal 2014 are set forth below ( in thousands, except share and per share amounts Three Months Ended May 2, August 1, October 31, January 30, Fiscal 2015 2015 2015 2015 2016 Net revenues $ 422,445 $ 506,942 $ 532,411 $ 647,208 Gross profit 143,418 194,263 190,750 224,261 Net income 7,156 29,935 20,710 33,302 Weighted-average shares used in computing basic net income per share 39,913,946 40,045,850 40,282,734 40,522,242 Basic net income per share $ 0.18 $ 0.75 $ 0.51 $ 0.82 Weighted-average shares used in computing diluted net income per share 41,959,718 42,243,910 42,413,657 42,225,070 Diluted net income per share $ 0.17 $ 0.71 $ 0.49 $ 0.79 Three Months Ended May 3, August 2, November 1, January 31, Fiscal 2014 2014 2014 2014 2015 Net revenues $ 366,254 $ 433,766 $ 484,675 $ 582,727 Gross profit 124,349 167,909 180,373 218,143 Net income 1,795 27,253 19,429 42,525 Weighted-average shares used in computing basic net income per share 39,152,923 39,436,255 39,507,272 39,734,145 Basic net income per share $ 0.05 $ 0.69 $ 0.49 $ 1.07 Weighted-average shares used in computing diluted net income per share 40,787,726 41,262,629 41,392,831 41,777,509 Diluted net income per share $ 0.04 $ 0.66 $ 0.47 $ 1.02 The three months ended May 3, 2014 included a $9.2 million charge incurred in connection with a legal claim alleging 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. The three months ended January 31, 2015 included a reversal of estimated expenses of $1.5 million associated with this matter based on a revision of estimated class member response. Refer to Note 18— Commitments and Contingencies |
Organization (Policies)
Organization (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
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 child and teen furnishings. These products are sold through the Company’s stores, catalogs and websites. As of January 30, 2016, the Company operated a total of 69 retail stores and 17 outlet stores in 28 states, the District of Columbia and Canada, and had sourcing operations in Shanghai and Hong Kong. |
Convertible Senior Notes | Convertible Senior Notes In June 2015, the Company issued in a private offering $250 million principal amount of 0.00% convertible senior notes due 2020 and, in July 2015, the Company issued an additional $50 million principal amount pursuant to the exercise of the overallotment option granted to the initial purchasers as part of its June 2015 offering (collectively, the “2020 Notes”). In connection with the issuance of these notes, the Company entered into convertible note hedge transactions for which it paid an aggregate amount of $68.3 million. In addition, the Company sold warrants for which it received aggregate proceeds of $30.4 million. Taken together, the Company received total cash proceeds of $256.0 million, net of discounts upon original issuance and offering costs of $6.1 million. Refer to Note 9— Convertible Senior Notes In June 2014, the Company issued $350 million principal amount of 0.00% convertible senior notes due 2019 in a private offering. In connection with the issuance of these notes, the Company entered into convertible note hedge transactions for which it paid an aggregate $73.3 million. In addition, the Company sold warrants for which it received aggregate proceeds of $40.4 million. Taken together, the Company received total cash proceeds of $311.7 million, net of the initial purchasers’ discounts and commissions and offering costs of $5.4 million. Refer to Note 9— Convertible Senior Notes |
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. Certain prior year amounts have been reclassified for consistency with the current year presentation. This reclassification had no effect on the previously reported consolidated results of operations, financial position or cash flows. |
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 January 30, 2016 (“fiscal 2015”), January 31, 2015 (“fiscal 2014”) and February 1, 2014 (“fiscal 2013”) each consisted of 52 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 all highly liquid investments with original maturities of 90 days or less to be cash equivalents. |
Investments | Investments All of the Company’s investments are classified as available-for-sale and are carried at fair value. The Company invests excess cash primarily in investment-grade interest-bearing securities such as money market funds, certificates of deposit, commercial paper, government agency obligations and guaranteed obligations of the U.S. government, all of which are subject to minimal credit and market risks. Investments that have an original maturity of 91 days or more at the date of purchase and a current maturity of less than one year are classified as short-term investments, while investments with a current maturity of more than one year are classified as long-term investments. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. The cost of available-for-sale marketable securities sold is based on the specific identification method. Unrealized holding gains and losses, net of tax, are recorded in accumulated other comprehensive loss on the consolidated statements of stockholders’ equity until realized. Realized gains and losses, interest income, dividends, and amortization and accretion of purchase premiums and discounts on investments are included in interest expense on the consolidated statements of income. Total interest income and accretion of purchase discounts on investments were $1.5 million and $0.1 million in fiscal 2015, respectively. Total amortization of purchase premiums on investments was $1.2 million in fiscal 2015. The Company did not record any realized gains and losses or dividends in fiscal 2015. |
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 January 30, 2016 and January 31, 2015, and at various time throughout these fiscal years, the Company had cash in financial institutions in excess of the amount insured by the FDIC and CDIC. 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, receivables related to our contract business and other miscellaneous receivables. Accounts receivable is presented net of allowance for doubtful accounts, which is recorded on a specific identification basis. The allowance for doubtful accounts was $2.3 million as of both January 30, 2016 and January 31, 2015. |
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 shipped 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 or inventory balances. The Company’s inventory reserve balances were $19.3 million and $14.6 million as of January 30, 2016 and January 31, 2015, 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 expense, recorded in selling, general and administrative expenses on the consolidated statements of income, were $107.7 million, $114.7 million, and $83.0 million in fiscal 2015, fiscal 2014, and fiscal 2013, 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 after they are mailed and the majority of the amortization occurs within the first five to nine months, with the exception of the Holiday Source Books, which are generally fully amortized within a three-month period after they are mailed. 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 statements of income. 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 $35.8 million and $46.9 million of capitalized catalog costs that are included in prepaid expense and other current assets on the consolidated balance sheets as of January 30, 2016, and January 31, 2015, 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 and building improvements 40 years Machinery, equipment and aircraft 3 to 10 years Furniture, fixtures and equipment 3 to 7 years Computer software 3 to 7 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. The Company expenses all internal-use software costs incurred in the preliminary project stage and capitalizes certain direct costs associated with the development and purchase of internal-use software, including external costs of materials and services and internal payroll costs related to the software project, within property and equipment. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally between three and seven years. 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 interest expense is being incurred. The Company capitalized interest of $2.3 million, $1.6 million and $0.9 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. During fiscal 2015, all of the $2.3 million capitalized interest relates to the capitalization of non-cash interest associated with the amortization of the convertible senior notes debt discount. During fiscal 2014, $1.1 million of the $1.6 million capitalized interest relates to the capitalization of non-cash interest associated with the amortization of the convertible senior notes debt discount. Property and equipment acquired under non-cancelable leases, which meet the criteria of capital leases, are capitalized and amortized over the lesser of the useful life of the asset or the lease term. For buildings held under capital lease, unless the fair value of the land at lease inception exceeds 25% of the aggregate fair value of the leased land and building, rent payments under the leases are recognized using the effective interest method as a reduction of the capital lease obligation and interest expense. Pursuant to Accounting Standards Codification (“ASC”) 840— Leases (“ASC 840”) 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, domain names and the fair market value of the Company’s leases. The Company does not amortize trademarks and domain names as the Company defines the life of these assets 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 gross domestic product 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 2015, 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 2015 and fiscal 2014. No impairment to goodwill has been recorded in any period. Trademarks and Domain Names The Company annually evaluates whether trademarks and domain names continue to have an indefinite life. Trademarks and domain names 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 2015, 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 or domain names for impairment. If trademarks and domain names are not qualitatively assessed or if trademarks and domain names 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 results of operations and projected future cash flows. The Company tested the trademarks and domain names 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 is 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 and 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 RH Baby & Child Gallery, which is included in selling, general and administrative expenses on the consolidated statements of income. The Company did not record an impairment charge on long-lived assets in fiscal 2015 or fiscal 2014. |
Lease Accounting | Lease Accounting The Company leases stores, distribution facilities, office space and, less significantly, certain machinery and equipment. The Company classifies leases at the inception of the lease as a capital lease or an operating lease. Build-to-Suit Lease Transactions The Company is sometimes involved in the construction of leased stores, which, depending on the extent to which it is involved, the Company may be the “deemed owner” of the leased premises for accounting purposes during the construction period pursuant to upon commencement of the construction project, as property and equipment U pon completion of the construction project, the Company performs a sale-leaseback analysis to determine if it does not have any forms of “continuing involvement” and therefore can remove the assets and related liabilities from its consolidated balance sheets. If the assets and related liabilities cannot be removed from the Company’s consolidated balance sheets, the Company accounts for the transactions as a financing lease. These lease transactions are referred to as build-to-suit lease transactions. Rent expense relating to the land is recognized on a straight-line basis once construction begins, which is determined using the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate. Once cash payments commence under the lease, all amounts in excess of land rent expense are recorded as a debt-service payment and are recognized as interest expense and a reduction of the financing obligation. Similar to capital leases, the expense recorded within the consolidated statements of income over the lease term is equal to the cash rent payments made under the lease. The primary difference in the consolidated statements of income between build-to-suit lease transactions and operating leases is the timing of recognition and the classification of expenses. Expenses related to operating leases are classified as rent expense compared to expenses related to build-to-suit lease transactions which are classified as a combination of rent expense, depreciation expense and interest expense. Operating and Capital Leases 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. Certain of the Company’s property and equipment are held under capital leases. These assets are included in property and equipment and depreciated over the lesser of the useful life of the asset or the lease term. For buildings held under capital leases, unless the fair value of the land at lease inception exceeds 25% of the aggregate fair value of the leased land and buildings, rent payments under the leases are recognized using the effective interest method as a reduction of the capital lease obligation and interest expense. Pursuant to ASC 840 to the product of the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate. The remaining cash payment is 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 rent expenses, the Company recognizes rent expense on a straight-line basis over the lease term. Tenant improvement allowances received from landlords under operating leases are recorded in deferred rent and lease incentives on the consolidated balance sheets, and are amortized on a straight-line basis over the lease term. During fiscal 2015, the Company received $9.2 million related to profit participation arrangements for two of its distribution center facilities. Such amounts were recorded in deferred rent and lease incentives on the consolidated balance sheets and will be amortized on a straight-line basis over the respective lease terms. |
Debt Issuance Costs | Debt Issuance Costs The Company capitalizes debt issuance costs related to its convertible senior notes and revolving line of credit. Capitalized costs are included in other non-current assets on the consolidated balance sheets as deferred financing fees and convertible debt issuance costs and amortization of such fees are included in interest expense on the consolidated statements of income. Deferred financing fees, and convertible debt issuance costs related to the convertible senior notes are amortized utilizing the effective interest method. Deferred financing fees related to the revolving line of credit are amortized utilizing the straight-line method. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues and the related cost of goods sold when merchandise is received by its customers. Revenues from direct-to-customer and home-delivered sales are recognized when the merchandise is delivered to the customer. Revenues from “cash-and-carry” store sales are recognized at the point of sale in the store. Discounts or other accommodations 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. |
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. |
Gift Cards, Gift Certificates and Merchandise Credits | Gift Cards, Gift Certificates and Merchandise Credits The Company sells gift cards, gift certificates and issues merchandise credits to its customers in its stores and through its websites and product catalogs. Such gift cards, gift certificates and merchandise credits do not have expiration dates. Revenue associated with gift cards, gift certificates and merchandise credits is deferred until either (i) redemption of the gift cards, 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 cards, gift certificates or merchandise credits to the relevant jurisdictions (breakage). The breakage rate is based on monitoring of cards and certificates issued, actual card and certificate redemptions and the Company’s analysis of when it believes it is remote that redemptions will occur. Breakage resulted in a reduction of selling, general and administrative expenses on the consolidated statements of income of $2.0 million, $3.1 million, and $2.9 million in fiscal 2015, fiscal 2014, and fiscal 2013, 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 $2.1 million and $3.0 million related to health care coverage as of January 30, 2016 and January 31, 2015, respectively. 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 $3.0 million and $2.6 million related to workers’ compensation claims as of January 30, 2016 and January 31, 2015, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the fair value of stock-based compensation in the 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 plan 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 15— 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 and supply chain, 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 corporate 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 2014 included an approximately $8 million charge incurred in connection with a legal claim alleging 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. Refer to Note 18— Commitments and Contingencies 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, a $4.9 million charge incurred in connection with the legal claim mentioned above and $2.9 million of costs incurred in connection with the Company’s follow-on offerings in May 2013 and July 2013. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed as net income 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 net income 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. |
Comprehensive Income | Comprehensive Income Comprehensive income is comprised of net income and other gains and losses affecting equity that are excluded from net income. |
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 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 income and are not material for all periods presented. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Revenue from Contracts with Customers In May 2014, the 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 can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The FASB deferred the effective date for the new revenue reporting standard for entities reporting under U.S. GAAP for one year from the original effective date. In accordance with the deferral, ASU 2014-09 will become effective beginning after December 15, 2017 for public entities. Early application is permitted for annual reporting periods ending after December 15, 2016. The Company is evaluating the impact of adopting this new accounting standard on its consolidated financial statements and has not selected an adoption date or a transition method. 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 does not currently believe this guidance will have a material impact 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. Costs associated with line-of-credit arrangements may continue to be recorded as deferred assets. The update requires retrospective application and represents a change in accounting principle. The debt issuance costs guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU 2015-03 will be effective for the Company in its first quarter of fiscal 2016. Early adoption is permitted. The Company has elected not to early adopt. Other than reclassifying $2.1 million as of January 30, 2016 from non-current assets to non-current liabilities on the consolidated balance sheets, the Company does not expect a material impact on its consolidated financial statements upon adoption. 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 does not currently believe this guidance will have a material impact on its consolidated financial statements. Measurement of Inventory In July 2015, the FASB issued Accounting Standards Update 2015-11—Inventory (Topic 330): Simplifying the Measurement of Inventory, which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-11 will be effective for the Company in its first quarter of fiscal 2016. The Company does not currently believe this guidance will have a material impact on its consolidated financial statements. Business Combinations In September 2015, the FASB issued Accounting Standards Update 2015-16—Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . The guidance requires the acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. The business combination guidance is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted, and is to be applied on a prospective basis. The Company has elected not to early adopt. The Company is evaluating the impact of adopting this new accounting standard on its consolidated financial statements. Classification of Deferred Taxes In November 2015, the FASB issued Accounting Standards Update 2015-17—Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , to simplify the presentation of deferred income taxes. The amendments in ASU 2015-17 require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in the update. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company has elected to early adopt the guidance on a retrospective basis effective with the consolidated balance sheet as of January 30, 2016. This is a change from the Company’s historical presentation whereby certain deferred tax assets and liabilities were classified as current and the remainder were classified as non-current. To conform to the current period presentation, the Company reclassified $27.9 million and $0.1 million, which were previously included in current assets and current liabilities, respectively, as of January 31, 2015, to non-current assets and non-current liabilities, respectively, on the consolidated balance sheets. Accounting for Leases In February 2016, the FASB issued Accounting Standards Update 2016-02 — Leases, Financial Instruments In January 2016, the FASB issued Accounting Standards Update 2016-01 — Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, Recognition of Breakage In March 2016, the FASB issued Accounting Standard Update No. 2016-04 — Recognition of Breakage for Certain Prepaid Stored-Value Products ASC 405-20 — Liabilities-Extinguishments of Liabilities |
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 January 30, 2016, 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. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | 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 and building improvements 40 years Machinery, equipment and aircraft 3 to 10 years Furniture, fixtures and equipment 3 to 7 years Computer software 3 to 7 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 January 30, January 31, February 1, 2016 2015 2014 Balance at beginning of fiscal year $ 10,235 $ 12,142 $ 5,206 Provision for sales returns 104,028 87,217 86,541 Actual sales returns (101,575 ) (89,124 ) (79,605 ) Balance at end of fiscal year $ 12,688 $ 10,235 $ 12,142 |
Prepaid Expense and Other Ass30
Prepaid Expense and Other Assets (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expense and Other Current Assets | Prepaid expense and other current assets consist of the following ( in thousands January 30, January 31, 2016 2015 Capitalized catalog costs $ 35,836 $ 46,911 Vendor deposits 22,959 21,585 Prepaid expense and other current assets 20,225 19,480 Total prepaid expense and other current assets $ 79,020 $ 87,976 |
Schedule of Other Non-Current Assets | Other non-current assets consist of the following ( in thousands January 30, January 31, 2016 2015 Construction related deposits $ 15,384 $ 9,250 Deferred financing fees and convertible debt issuance costs 4,334 3,670 Other deposits 3,635 6,193 Other non-current assets 4,207 3,793 Total other non-current assets $ 27,560 $ 22,906 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following ( in thousands January 30, January 31, 2016 2015 Leasehold improvements (1) $ 336,995 $ 280,602 Computer software 96,618 60,650 Furniture, fixtures and equipment 49,650 37,365 Machinery, equipment and aircraft 32,190 15,013 Land 11,188 5,396 Building and building improvements 9,811 2,205 Build-to-suit property (2) (3) 146,550 125,082 Building and equipment under capital leases 8,025 7,937 Total property and equipment 691,027 534,250 Less—accumulated depreciation and amortization (4) (175,422 ) (143,406 ) Total property and equipment—net $ 515,605 $ 390,844 (1) Leasehold improvements include construction in progress of $51.1 million and $47.7 million as of January 30, 2016, and January 31, 2015, respectively. (2) The Company capitalizes assets and records a corresponding non-current liability for build-to-suit lease transactions where it is considered the owner, for accounting purposes, during the construction period. Refer to Lease Accounting Significant Accounting Policies (3) In fiscal 2014, the Company concluded that it was the deemed owner for accounting purposes for a new distribution center located in California during the construction period pursuant to ASC 840. During the construction period, the Company capitalized the cash and non-cash assets contributed by the landlord for the construction of the distribution center on its consolidated balance sheets as an increase in property and equipment and an increase in financing obligations under build-to-suit lease transactions. During the fourth quarter of fiscal 2015, upon the completion of the construction period, the Company performed a sale-leaseback analysis and determined that it did not have any prohibitive forms of continuing involvement and therefore removed the asset and corresponding liability of $74.9 million from its consolidated balance sheet as of January 30, 2016. The effected sale leaseback did not have an impact on the consolidated statements of income or consolidated statements of cash flows in fiscal 2015. (4) Includes accumulated amortization related to equipment under capital leases of $1.6 million and $0.9 million as of January 30, 2016, and January 31, 2015, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | The following sets forth the goodwill and intangible assets as of January 30, 2016 ( in thousands Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Book Value Intangible assets subject to amortization Fair value of leases (1) Fair market write-up $ 1,924 $ (1,697 ) $ — $ 227 Fair market write-down (2) (1,467 ) 1,289 — (178 ) Total intangible assets subject to amortization $ 457 $ (408 ) $ — $ 49 Intangible assets not subject to amortization Goodwill $ 124,461 $ — $ (160 ) $ 124,301 Trademarks and domain names $ 48,309 $ — $ — $ 48,309 (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 consolidated balance sheets. The following sets forth the goodwill and intangible assets as of January 31, 2015 ( in thousands Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Book Value 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 consolidated balance sheets. (3) Customer relationships are amortized over a one-year period. |
Accounts Payable, Accrued Exp33
Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following ( in thousands January 30, January 31, 2016 2015 Accounts payable $ 175,024 $ 133,063 Accrued compensation 27,698 35,942 Accrued freight and duty 27,230 22,747 Accrued sales taxes 19,269 21,240 Accrued occupancy 15,095 7,530 Accrued catalog costs 5,988 4,582 Accrued legal settlements 3,000 4,309 Accrued professional fees 2,736 2,319 Other accrued expenses 4,674 3,427 Total accounts payable and accrued expenses $ 280,714 $ 235,159 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following ( in thousands January 30, January 31, 2016 2015 Federal and state tax payable $ 27,838 $ 1,509 Unredeemed gift card and merchandise credit liability 24,364 23,004 Allowance for sales returns 12,688 10,235 Capital lease obligations—current 182 255 Other liabilities — 584 Total other current liabilities $ 65,072 $ 35,587 |
Other Non-Current Obligations (
Other Non-Current Obligations (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Non-Current Obligations | Other non-current obligations consist of the following ( in thousands January 30, January 31, 2016 2015 Notes payable for share repurchases $ 19,523 $ 19,285 Capital lease obligations—non-current 7,399 7,487 Unrecognized tax benefits 1,125 1,108 Other non-current obligations 1,302 1,064 Total other non-current obligations $ 29,349 $ 28,944 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Convertible Senior Notes Due 2020 [Member] | |
Carrying Value of Notes | The carrying value of the 2020 Notes is as follows ( in thousands January 30, 2016 Liability component Principal $ 300,000 Less: Debt discount (75,113 ) Net carrying amount $ 224,887 Equity component (1) $ 84,003 (1) Included in additional paid-in capital on the consolidated balance sheets. |
Convertible Senior Notes Due 2019 [Member] | |
Carrying Value of Notes | The carrying values of the 2019 Notes are as follows ( in thousands January 30, January 31, 2016 2015 Liability component Principal $ 350,000 $ 350,000 Less: Debt discount (49,289 ) (62,513 ) Net carrying amount $ 300,711 $ 287,487 Equity component (1) $ 70,482 $ 70,482 (1) Included in additional paid-in capital on the consolidated balance sheets. |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | Assets measured at fair value were as follows ( in thousands January 30, January 31, 2016 2015 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 70 $ — $ 70 $ 44 $ — $ 44 Commercial paper — 46,726 46,726 — 18,248 18,248 Government agency obligations — — — — 1,001 1,001 Total cash equivalents 70 46,726 46,796 44 19,249 19,293 Short-term investments Commercial paper — 15,488 15,488 — 13,996 13,996 Government agency obligations 22,011 93,302 115,313 — 48,172 48,172 Total short-term investments 22,011 108,790 130,801 — 62,168 62,168 Long-term investments Government agency obligations 7,829 14,225 22,054 — 18,338 18,338 Total long-term investments 7,829 14,225 22,054 — 18,338 18,338 Total $ 29,910 $ 169,741 $ 199,651 $ 44 $ 99,755 $ 99,799 |
Schedule of Available-for-sale Securities Maturities | The following table summarizes the amortized cost and estimated fair value of the available-for-sale securities within the Company’s investment portfolio based on stated maturities, which are recorded within cash and cash equivalents, short-term investments and long-term investments on the consolidated balance sheets ( in thousands January 30, January 31, 2016 2015 Cost Fair Value Cost Fair Value Range of maturity Due within 1 year $ 177,564 $ 177,527 $ 81,413 $ 81,419 Due in 1 to 2 years $ 22,033 $ 22,054 $ 18,324 $ 18,338 |
Estimated Fair Value and Carrying Value of Notes | The estimated fair value and carrying value of the 2019 Notes and 2020 Notes (carrying value excludes the equity component of the 2019 Notes and 2020 Notes classified in stockholders’ equity) were as follows ( in thousands January 30, January 31, 2016 2015 Fair Value Carrying Value Fair Value Carrying Value Convertible senior notes due 2019 $ 257,624 $ 300,711 $ 260,444 $ 287,487 Convertible senior notes due 2020 $ 198,635 $ 224,887 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
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 January 30, January 31, February 1, 2016 2015 2014 Current Federal $ 55,676 $ 45,611 $ 21,593 State 9,112 9,235 4,182 Foreign 227 (596 ) (454 ) Total current tax expense 65,015 54,250 25,321 Deferred Federal (5,691 ) 3,895 6,215 State (648 ) (973 ) (596 ) Foreign 105 1 (17 ) Total deferred tax expense (benefit) (6,234 ) 2,923 5,602 Total income tax expense $ 58,781 $ 57,173 $ 30,923 |
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 January 30, January 31, February 1, 2016 2015 2014 Provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes—net of federal tax impact 3.7 4.0 5.8 Stock-based compensation — — 21.3 Valuation allowance — — (0.1 ) Foreign income (0.1 ) (0.3 ) (0.2 ) Net adjustments to tax accruals and other 0.6 (0.1 ) 1.2 Effective tax rate 39.2 % 38.6 % 63.0 % |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows ( in thousands January 30, January 31, 2016 2015 Non-current deferred tax assets (liabilities) Stock-based compensation $ 32,248 $ 29,894 Inventory 29,430 26,067 Deferred lease credits 20,074 14,963 Accrued expense 18,964 22,469 Deferred revenue 1,800 1,281 U.S. impact of Canadian transfer pricing 1,420 1,410 Net operating loss carryforwards 214 752 Property and equipment (24,905 ) (17,113 ) Trademarks and domain names (18,414 ) (18,271 ) Prepaid expense and other (17,956 ) (22,182 ) Convertible senior notes (4,719 ) 1,035 State tax benefit (3,052 ) (3,350 ) Construction allowance — (1,697 ) Other 1,793 1,378 Non-current deferred tax assets 36,897 36,636 Valuation allowance (158 ) (176 ) Net non-current deferred tax assets 36,739 36,460 |
Schedule of Reconciliation of Valuation Allowance | A reconciliation of the valuation allowance is as follows ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Balance at beginning of fiscal year $ 176 $ 206 $ 293 Net changes in deferred tax assets and liabilities (18 ) (30 ) (87 ) Balance at end of fiscal year $ 158 $ 176 $ 206 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the exposures related to unrecognized tax benefits is as follows ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Balance at beginning of fiscal year $ 940 $ 1,395 $ 1,841 Gross decreases—prior period tax positions (88 ) (122 ) (151 ) Gross increases—current period tax positions 69 — — Lapses in statute of limitations — (333 ) (295 ) Balance at end of fiscal year $ 921 $ 940 $ 1,395 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
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: Year Ended January 30, January 31, February 1, 2016 2015 2014 Weighted-average shares—basic 40,190,448 39,457,491 38,671,564 Effect of dilutive stock-based awards 2,066,111 1,920,719 1,745,066 Weighted-average shares—diluted 42,256,559 41,378,210 40,416,630 |
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: Year Ended January 30, January 31, February 1, 2016 2015 2014 Options 522,390 1,009,157 774,745 Restricted stock units 12,916 4,253 90,988 Total anti-dilutive stock-based awards 535,306 1,013,410 865,733 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Summary of Company's Repurchase and Promissory Note Issuance Activity | The Company’s repurchase and promissory note issuance activity is as follows: Year Ended January 30, January 31, February 1, 2016 2015 2014 Shares repurchased 2,625 251,910 40,353 Fair value at purchase price (in thousands) $ 238 $ 16,575 $ 2,710 Weighted-average interest rate 3 % 5 % 5 % Weighted-average term 7 years 8 years 10 years |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
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 2015 is as follows: Options Weighted-Average Exercise Price Outstanding—January 31, 2015 6,716,306 $ 51.26 Granted 687,600 89.75 Exercised (610,641 ) 42.09 Cancelled (257,692 ) 62.96 Outstanding—January 30, 2016 6,535,573 $ 55.71 |
Schedule of Assumptions Used to Estimate Fair Value of Stock Options Issued | The fair value of stock options issued was estimated on the date of grant using the following assumptions: Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Expected volatility 37.7 % 39.7 % 39.7 % Expected life (years) 6.5 6.5 6.7 Risk-free interest rate 1.8 % 2.0 % 1.9 % Dividend yield — — — |
Summary of Additional Information about Stock Options | A summary of additional information about stock options is as follows: Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Weighted-average fair value per share of stock options granted $ 36.43 $ 26.92 $ 30.49 Aggregate intrinsic value of stock options exercised (in thousands) $ 32,590 $ 62,015 $ 11,623 Fair value of stock options vested (in thousands) $ 8,611 $ 2,246 $ 33,871 |
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 January 30, 2016 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted- Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Number of Options Weighted- Average Exercise Price $24.00 - $39.00 853,342 6.75 $ 28.29 794,467 $ 27.85 $46.50 - $46.50 2,976,826 6.75 46.50 2,976,826 46.50 $56.27 - $74.03 938,935 8.27 61.67 83,505 61.70 $75.43 - $75.43 1,020,000 7.42 75.43 1,008,000 75.43 $76.80 - $101.84 746,470 9.20 89.33 20,042 81.60 Total 6,535,573 7.35 $ 55.71 4,882,840 $ 49.84 Vested or expected to vest 6,336,741 7.31 $ 55.00 |
Summary of Restricted Stock Award Activity | A summary of restricted stock award activity under the Stock Incentive Plan for fiscal 2015 is as follows: Awards Weighted-Average Grant Date Fair Value Intrinsic Value Outstanding—January 31, 2015 719,998 $ 64.09 Granted 295,512 90.14 Released (137,227 ) 65.69 Cancelled (72,368 ) 66.96 $ 49,660,482 Outstanding—January 30, 2016 805,915 $ 73.11 |
Summary of Additional Information about Restricted Stock Awards | A summary of additional information about restricted stock awards is as follows: Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Weighted-average fair value per share of awards granted $ 90.14 $ 63.59 $ 65.37 Grant date fair value of awards released (in thousands) $ 12,223 $ 6,172 $ 760 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments under Leases | The aggregate future minimum rent payments under leases in effect as of January 30, 2016, are as follows ( in thousands Lease agreements accounted for as: Capital Leases (1) Operating Leases Build-to-Suit Total 2016 $ 1,147 $ 78,586 $ 17,523 $ 97,256 2017 1,116 67,038 35,353 103,507 2018 1,132 58,518 38,200 97,850 2019 1,155 54,219 39,993 95,367 2020 1,194 48,684 40,525 90,403 Thereafter 10,374 334,880 631,528 976,782 Minimum lease commitments 16,118 $ 641,925 $ 803,122 $ 1,461,165 Less—amount representing interest (8,537 ) Present value of capital lease obligations 7,581 Less—current capital lease obligations (182 ) Non-current capital lease obligations $ 7,399 (1) The current and non-current capital lease obligations are included in other current liabilities and other non-current obligations, respectively, on the consolidated balance sheets. |
Minimum and Contingent Rent under Lease Agreements Accounted for Operating Leases and Lease Agreements for Build-To-Suit Lease Transactions | Minimum and contingent rent under lease agreements accounted for as operating leases and lease agreements accounted for as build-to-suit lease transactions are as follows ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Lease agreements accounted for as operating leases Minimum rent $ 76,246 $ 75,654 $ 66,686 Contingent rent 10,209 7,989 6,208 Total operating leases $ 86,455 $ 83,643 $ 72,894 Lease agreements accounted for as build-to-suit lease transactions (1) Minimum rent $ 12,755 $ 7,375 $ 1,980 Contingent rent 442 122 — Total build-to-suit lease transactions $ 13,197 $ 7,497 $ 1,980 (1) As described in Note 3— Significant Accounting Policies |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Net Revenues | Net revenues in each category were as follows ( in thousands Year Ended January 30, January 31, February 1, 2016 2015 2014 Furniture $ 1,295,486 $ 1,116,351 $ 909,390 Non-furniture 813,520 751,071 641,571 Total net revenues $ 2,109,006 $ 1,867,422 $ 1,550,961 |
Selected Quarterly Financial 43
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Quarterly financial data for fiscal 2015 and fiscal 2014 are set forth below ( in thousands, except share and per share amounts Three Months Ended May 2, August 1, October 31, January 30, Fiscal 2015 2015 2015 2015 2016 Net revenues $ 422,445 $ 506,942 $ 532,411 $ 647,208 Gross profit 143,418 194,263 190,750 224,261 Net income 7,156 29,935 20,710 33,302 Weighted-average shares used in computing basic net income per share 39,913,946 40,045,850 40,282,734 40,522,242 Basic net income per share $ 0.18 $ 0.75 $ 0.51 $ 0.82 Weighted-average shares used in computing diluted net income per share 41,959,718 42,243,910 42,413,657 42,225,070 Diluted net income per share $ 0.17 $ 0.71 $ 0.49 $ 0.79 Three Months Ended May 3, August 2, November 1, January 31, Fiscal 2014 2014 2014 2014 2015 Net revenues $ 366,254 $ 433,766 $ 484,675 $ 582,727 Gross profit 124,349 167,909 180,373 218,143 Net income 1,795 27,253 19,429 42,525 Weighted-average shares used in computing basic net income per share 39,152,923 39,436,255 39,507,272 39,734,145 Basic net income per share $ 0.05 $ 0.69 $ 0.49 $ 1.07 Weighted-average shares used in computing diluted net income per share 40,787,726 41,262,629 41,392,831 41,777,509 Diluted net income per share $ 0.04 $ 0.66 $ 0.47 $ 1.02 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) | 12 Months Ended |
Jan. 30, 2016StoreState | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of retail stores | 69 |
Number of outlet stores | 17 |
Number of states | State | 28 |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) | Aug. 14, 2013 | Jul. 17, 2013 | May. 20, 2013 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Number of shares sold by the Company under follow-on offering | $ 0 | $ 0 | |
Investor [Member] | Common Stock [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Follow-on offering of common stock | 8,000,000 | 9,974,985 | |
Offering price, per share | $ 70 | $ 70 | $ 50 |
Investor [Member] | Over-Allotment Option [Member] | Common Stock [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Follow-on offering of common stock | 1,200,000 | 1,301,085 |
Organization - Additional Inf46
Organization - Additional Information 1 (Detail) - USD ($) $ in Thousands | Jun. 18, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Jul. 31, 2015 |
Debt Instrument [Line Items] | ||||||
Payment for convertible hedge transactions | $ 68,250 | $ 73,325 | ||||
Aggregate proceeds from sale of warrants | 30,390 | 40,390 | ||||
Offering costs | 2,382 | 5,385 | ||||
Convertible Senior Notes Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | 300,000 | |||||
Payment for convertible hedge transactions | $ 68,300 | |||||
Aggregate proceeds from sale of warrants | 30,400 | |||||
Cash proceeds from convertible debt issuance and convertible hedge transactions, net of initial purchasers discounts and commissions and offering costs | 256,000 | |||||
Offering costs | 6,100 | |||||
Convertible Senior Notes Due 2020 [Member] | Convertible Bond Hedge and Warrant Transactions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payment for convertible hedge transactions | 68,300 | |||||
Convertible Senior Notes Due 2020 [Member] | Private Placement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 250,000 | |||||
Debt instrument, interest rate | 0.00% | |||||
Convertible Senior Notes Due 2020 [Member] | Exercise of Over Allotment Option in Private Placement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 50,000 | |||||
Convertible Senior Notes Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 350,000 | $ 350,000 | ||||
Aggregate proceeds from sale of warrants | $ 40,400 | |||||
Cash proceeds from convertible debt issuance and convertible hedge transactions, net of initial purchasers discounts and commissions and offering costs | $ 311,700 | |||||
Offering costs | 5,400 | |||||
Convertible Senior Notes Due 2019 [Member] | Convertible Bond Hedge and Warrant Transactions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payment for convertible hedge transactions | 73,300 | 73,300 | ||||
Aggregate proceeds from sale of warrants | 40,400 | |||||
Convertible Senior Notes Due 2019 [Member] | Private Placement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 350,000 | $ 350,000 | ||||
Debt instrument, interest rate | 0.00% | 0.00% |
Significant Accounting Polici47
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Jan. 30, 2016USD ($)Unit | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | Jun. 30, 2016USD ($) | Jan. 31, 2015CAD | |
Summary Of Accounting Policies [Line Items] | |||||
Cash and cash equivalents liquid investments, maturity date | 90 days or less | ||||
Investment maturity period | 91 days | ||||
Interest income | $ 1,500,000 | ||||
Accretion of purchase discounts | 100,000 | ||||
Amortization of purchase premiums | 1,200,000 | ||||
Realize Gains (Losses) | 0 | ||||
Dividends | 0 | ||||
Cash and cash equivalent, FDIC insured amount | 250,000 | ||||
Cash and cash equivalent, CDIC insured amount | CAD | CAD 100,000 | ||||
Allowance for doubtful accounts | 2,300,000 | $ 2,300,000 | |||
Inventory reserve balances | 19,300,000 | 14,600,000 | |||
Advertising expense | $ 107,700,000 | 114,700,000 | $ 83,000,000 | ||
Amortization of catalog | 12 months | ||||
Capitalized catalog costs and other current assets | $ 35,836,000 | 46,911,000 | |||
Capitalized Interest | 2,300,000 | 1,600,000 | 900,000 | ||
Capitalized interest related to amortization of Convertible Notes debt discount | $ 2,300,000 | 1,100,000 | |||
Threshold for determining whether land rent expense is to be recorded for a Capital Lease | 25.00% | ||||
Number of reporting unit | Unit | 1 | ||||
Impairment to goodwill | $ 0 | 0 | |||
Impairment to trademarks and domain names | 0 | 0 | 0 | ||
Impairment charge on long-lived assets | 0 | 0 | 1,385,000 | ||
Deferred rent and lease incentives | $ 53,986,000 | 40,552,000 | |||
Customer deposits | 50.00% | ||||
Revenue recognition, gift cards, breakage | $ 2,000,000 | 3,100,000 | 2,900,000 | ||
Liabilities related to health care coverage | 2,100,000 | 3,000,000 | |||
Liabilities related to workers' compensation | 3,000,000 | 2,600,000 | |||
Assumed dividend yield | 0 | ||||
Charge incurred in connection with legal claim | 8,000,000 | ||||
Non-cash compensation charge | 24,223,000 | 17,072,000 | 67,622,000 | ||
Reclassification of non current assets | $ 2,100,000 | ||||
Reclassification of current assets | 27,900,000 | ||||
Reclassification of current liabilities | $ 100,000 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Charge incurred in connection with legal claim | 4,900,000 | ||||
Cost incurred in connection with follow-on offerings | 2,900,000 | ||||
Selling, General and Administrative Expenses [Member] | Options Granted | |||||
Summary Of Accounting Policies [Line Items] | |||||
Non-cash compensation charge | 33,700,000 | ||||
Selling, General and Administrative Expenses [Member] | Performance Based Shares | |||||
Summary Of Accounting Policies [Line Items] | |||||
Non-cash compensation charge | $ 29,500,000 | ||||
Deferred Profit Sharing [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Deferred rent and lease incentives | $ 9,200,000 | ||||
Computer Software [Member] | Maximum [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Property and Equipment, Useful Life | 7 years | ||||
Computer Software [Member] | Minimum [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Property and Equipment, Useful Life | 3 years |
Significant Accounting Polici48
Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Detail) | 12 Months Ended |
Jan. 30, 2016 | |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 40 years |
Minimum [Member] | Machinery, Equipment and Aircraft [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] | Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 3 years |
Maximum [Member] | Machinery, Equipment and Aircraft [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 10 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 7 years |
Maximum [Member] | Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 7 years |
Significant Accounting Polici49
Significant Accounting Policies - Summary of Allowance for Sales Returns, Net of Cost of Goods Sold (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Accounting Policies [Abstract] | |||
Balance at beginning of fiscal year | $ 10,235 | $ 12,142 | $ 5,206 |
Provision for sales returns | 104,028 | 87,217 | 86,541 |
Actual sales returns | (101,575) | (89,124) | (79,605) |
Balance at end of fiscal year | $ 12,688 | $ 10,235 | $ 12,142 |
Prepaid Expense and Other Ass50
Prepaid Expense and Other Assets - Prepaid Expense and Other Current Assets (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Capitalized catalog costs | $ 35,836 | $ 46,911 |
Vendor deposits | 22,959 | 21,585 |
Prepaid expense and other current assets | 20,225 | 19,480 |
Total prepaid expense and other current assets | $ 79,020 | $ 87,976 |
Prepaid Expense And Other Ass51
Prepaid Expense And Other Assets - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Other Assets Noncurrent [Abstract] | ||
Construction related deposits | $ 15,384 | $ 9,250 |
Deferred financing fees and convertible debt issuance costs | 4,334 | 3,670 |
Other deposits | 3,635 | 6,193 |
Other non-current assets | 4,207 | 3,793 |
Total other non-current assets | $ 27,560 | $ 22,906 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 691,027 | $ 534,250 |
Less-accumulated depreciation and amortization | (175,422) | (143,406) |
Total property and equipment—net | 515,605 | 390,844 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 336,995 | 280,602 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 96,618 | 60,650 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 49,650 | 37,365 |
Machinery, Equipment and Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 32,190 | 15,013 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,188 | 5,396 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,811 | 2,205 |
Build-to-Suit Property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 146,550 | 125,082 |
Building and Equipment under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,025 | 7,937 |
Less-accumulated depreciation and amortization | $ (1,600) | $ (900) |
Property and Equipment - Sche53
Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 691,027 | $ 534,250 |
Sale lease back liability | 74,900 | |
Accumulated amortization | 175,422 | 143,406 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 51,100 | 47,700 |
Building and Equipment under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,025 | 7,937 |
Accumulated amortization | $ 1,600 | $ 900 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 44.2 | $ 33.7 | $ 26.5 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 457 | $ 1,723 |
Finite Lived, Accumulated Amortization | (408) | (1,372) |
Finite Lived, Net Book Value | 49 | 351 |
Goodwill, Gross Carrying Amount | 124,461 | 124,461 |
Goodwill, Foreign Currency Translation | (160) | (37) |
Goodwill, Net Book Value | 124,301 | 124,424 |
Indefinite Lived, Gross Carrying Amount | 48,309 | 47,863 |
Indefinite Lived, Net Book Value | 48,309 | 47,863 |
Trademarks and Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite Lived, Gross Carrying Amount | 48,309 | 47,863 |
Indefinite Lived, Foreign Currency Translation | 0 | |
Indefinite Lived, Net Book Value | 48,309 | 47,863 |
Fair Market Write-Up [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 1,924 | 3,110 |
Finite Lived, Accumulated Amortization | (1,697) | (2,419) |
Finite Lived, Net Book Value | 227 | 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 | 1,289 | 1,127 |
Finite Lived, Net Book Value | $ (178) | (340) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 80 | |
Finite Lived, Accumulated Amortization | $ (80) |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Parenthetical) (Detail) | 12 Months Ended |
Jan. 30, 2016 | |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 1 year |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 0.3 | $ 0.7 | $ 1.1 |
Accounts Payable, Accrued Exp58
Accounts Payable, Accrued Expenses and Other Current Liabilities - Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 175,024 | $ 133,063 |
Accrued compensation | 27,698 | 35,942 |
Accrued freight and duty | 27,230 | 22,747 |
Accrued sales taxes | 19,269 | 21,240 |
Accrued occupancy | 15,095 | 7,530 |
Accrued catalog costs | 5,988 | 4,582 |
Accrued legal settlements | 3,000 | 4,309 |
Accrued professional fees | 2,736 | 2,319 |
Other accrued expenses | 4,674 | 3,427 |
Total accounts payable and accrued expenses | $ 280,714 | $ 235,159 |
Accounts Payable, Accrued Exp59
Accounts Payable, Accrued Expenses and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accounts payable includes negative cash balances | $ 18.4 | $ 17.5 |
Accounts Payable, Accrued Exp60
Accounts Payable, Accrued Expenses and Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Payables And Accruals [Abstract] | ||||
Federal and state tax payable | $ 27,838 | $ 1,509 | ||
Unredeemed gift card and merchandise credit liability | 24,364 | 23,004 | ||
Allowance for sales returns | 12,688 | 10,235 | $ 12,142 | $ 5,206 |
Capital lease obligations—current | 182 | 255 | ||
Other liabilities | 584 | |||
Total other current liabilities | $ 65,072 | $ 35,587 |
Other Non-Current Obligations -
Other Non-Current Obligations - Schedule of Other Non-Current Obligations (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Other Liabilities Noncurrent [Abstract] | ||
Notes payable for share repurchases | $ 19,523 | $ 19,285 |
Capital lease obligations—non-current | 7,399 | 7,487 |
Unrecognized tax benefits | 1,125 | 1,108 |
Other non-current obligations | 1,302 | 1,064 |
Total other non-current obligations | $ 29,349 | $ 28,944 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) $ / shares in Units, shares in Millions | Jun. 18, 2014USD ($)dDerivative$ / shares$ / Derivativeshares | Jun. 30, 2015USD ($)dDerivative$ / shares$ / Derivativeshares | Jun. 30, 2014USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Jul. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Amortization of debt discount | $ 22,114,000 | $ 7,969,000 | ||||
Total cost of convertible note hedge transactions | 68,250,000 | 73,325,000 | ||||
Cash proceeds from sale of warrants | 30,390,000 | 40,390,000 | ||||
Convertible Senior Notes Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | 300,000,000 | |||||
Deemed elected combination settlement amount per note to be received upon conversion | $ 1,000 | |||||
Debt instrument, effective interest rate | 6.47% | |||||
Discounts and commissions payable | $ 3,800,000 | |||||
Third party offering costs | 2,300,000 | |||||
Amortization of debt issuance costs | 600,000 | |||||
Amortization of debt discount | $ 8,900,000 | |||||
Total cost of convertible note hedge transactions | $ 68,300,000 | |||||
Warrants sold to purchase common stock | shares | 5.1 | |||||
Cash proceeds from sale of warrants | $ 30,400,000 | |||||
Warrants price per share | $ / shares | $ 189 | |||||
Convertible Senior Notes Due 2020 [Member] | Convertible Bond Hedge and Warrant Transactions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Conversion price per share | $ / shares | $ 189 | |||||
Convertible note hedge, number of shares | Derivative | 5,100,000 | |||||
Convertible note hedge, price per share | $ / Derivative | 118.13 | |||||
Convertible note hedge, description | The Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 5.1 million shares of its common stock at a price of approximately $118.13 per share. | |||||
Convertible note hedge, inception Date | Jun. 30, 2015 | |||||
Total cost of convertible note hedge transactions | $ 68,300,000 | |||||
Deferred tax liability | $ 32,800,000 | |||||
Deferred tax asset | $ 26,600,000 | |||||
Convertible Senior Notes Due 2020 [Member] | Convertible Debt Instrument Conversion Period One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible trading days | d | 20 | |||||
Debt instrument, convertible consecutive trading days | 30 days | |||||
Debt instrument, convertible percentage of stock price | 130.00% | |||||
Convertible Senior Notes Due 2020 [Member] | Convertible Debt Instrument Conversion Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible trading days | d | 5 | |||||
Debt instrument, convertible consecutive trading days | 10 days | |||||
Debt instrument, convertible percentage of stock price | 98.00% | |||||
Convertible Senior Notes Due 2020 [Member] | Convertible Debt Instrument Conversion Period Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible earliest date | Mar. 15, 2020 | |||||
Convertible Senior Notes Due 2020 [Member] | Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, initial conversion rate | 8.4656 | |||||
Debt instrument, conversion principal amount | $ 1,000 | |||||
Conversion price per share | $ / shares | $ 118.13 | |||||
Debt instrument, conversion description | The initial conversion rate applicable to the 2020 Notes is 8.4656 shares of common stock per $1,000 principal amount of 2020 Notes, which is equivalent to an initial conversion price of approximately $118.13 per share. | |||||
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 | Mar. 15, 2019 | |||||
Deemed elected combination settlement amount per note to be received upon conversion | $ 1,000 | |||||
Debt instrument, effective interest rate | 4.51% | |||||
Discounts and commissions payable | $ 4,400,000 | |||||
Third party offering costs | $ 1,000,000 | |||||
Amortization of debt issuance costs | $ 800,000 | 500,000 | ||||
Amortization of debt discount | $ 13,200,000 | $ 8,000,000 | ||||
Warrants sold to purchase common stock | shares | 3 | |||||
Cash proceeds from sale of warrants | $ 40,400,000 | |||||
Warrants price per share | $ / shares | $ 171.98 | |||||
Convertible Senior Notes Due 2019 [Member] | Convertible Bond Hedge and Warrant Transactions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible note hedge, number of shares | Derivative | 3,000,000 | |||||
Convertible note hedge, price per share | $ / Derivative | 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. | |||||
Total cost of convertible note hedge transactions | $ 73,300,000 | 73,300,000 | ||||
Cash proceeds from sale of warrants | 40,400,000 | |||||
Deferred tax liability | $ 27,500,000 | |||||
Deferred tax asset | $ 28,600,000 | |||||
Conversion price per share, two | $ / shares | $ 171.98 | |||||
Convertible Senior Notes Due 2019 [Member] | Convertible Debt Instrument Conversion Period One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible trading days | d | 20 | |||||
Debt instrument, convertible consecutive trading days | 30 days | |||||
Debt instrument, convertible percentage of stock price | 130.00% | |||||
Convertible Senior Notes Due 2019 [Member] | Convertible Debt Instrument Conversion Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible trading days | d | 5 | |||||
Debt instrument, convertible consecutive trading days | 10 days | |||||
Debt instrument, convertible percentage of stock price | 98.00% | |||||
Convertible Senior Notes Due 2019 [Member] | Convertible Debt Instrument Conversion Period Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible earliest date | Mar. 15, 2019 | |||||
Convertible Senior Notes Due 2019 [Member] | Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, initial conversion rate | 8.6143 | |||||
Debt instrument, conversion principal amount | $ 1,000 | |||||
Conversion price per share | $ / shares | $ 116.09 | |||||
Debt instrument, conversion description | The initial conversion rate applicable to the 2019 Notes is 8.6143 shares of common stock per $1,000 principal amount of 2019 Notes, which is equivalent to an initial conversion price of approximately $116.09 per share | |||||
Private Placement [Member] | Convertible Senior Notes Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 250,000,000 | |||||
Debt instrument, interest rate | 0.00% | |||||
Debt instrument, maturity date | Jul. 15, 2020 | |||||
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 | Jun. 15, 2019 | |||||
Exercise of Over Allotment Option in Private Placement [Member] | Convertible Senior Notes Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 50,000,000 |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Values of Notes (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Convertible Senior Notes Due 2020 [Member] | ||
Liability component | ||
Principal | $ 300,000 | |
Less: Debt discount | (75,113) | |
Net carrying amount | 224,887 | |
Equity component | 84,003 | |
Convertible Senior Notes Due 2019 [Member] | ||
Liability component | ||
Principal | 350,000 | $ 350,000 |
Less: Debt discount | (49,289) | (62,513) |
Net carrying amount | 300,711 | 287,487 |
Equity component | $ 70,482 | $ 70,482 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) | Nov. 24, 2014 | Jun. 27, 2014 | Jan. 30, 2016 | Jan. 31, 2015 |
Line of Credit Facility [Line Items] | ||||
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. | |||
Fixed charge coverage ratio covenant, fixed amount available under revolving line of credit | $ 20,000,000 | |||
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 | 10.00% | |||
Payment of principal balance and related interest under prior credit agreement | $ 154,800,000 | |||
Outstanding revolving line of credit | $ 0 | |||
Outstanding letters of credit | 15,000,000 | $ 20,200,000 | ||
Undrawn borrowing availability under the revolving line of credit | $ 535,400,000 | |||
Tenth Amended And Restated Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Agreement, date | Nov. 24, 2014 | |||
Amended Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized deferred financing fees written off / expensed | $ 200,000 | |||
Amended and restated credit agreement maturity date | Nov. 24, 2019 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized deferred financing fees | 900,000 | |||
Revolving Credit Facility [Member] | Tenth Amended And Restated Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Increase in revolving line of credit | 182,500,000 | |||
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 | 200,000,000 | |||
Term Loan Facility [Member] | Tenth Amended And Restated Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Elimination of term loan facility | $ 15,000,000 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Schedule of Assets Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | $ 46,796 | $ 19,293 |
Total | 199,651 | 99,799 |
Money market funds [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 70 | 44 |
Commercial paper [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 46,726 | 18,248 |
Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 1,001 | |
Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 70 | 44 |
Total | 29,910 | 44 |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 70 | 44 |
Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 46,726 | 19,249 |
Total | 169,741 | 99,755 |
Level 2 [Member] | Commercial paper [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total cash equivalents | 46,726 | 18,248 |
Level 2 [Member] | 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 | 130,801 | 62,168 |
Short-term investments [Member] | Commercial paper [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 15,488 | 13,996 |
Short-term investments [Member] | Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 115,313 | 48,172 |
Short-term investments [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 22,011 | |
Short-term investments [Member] | Level 1 [Member] | Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 22,011 | |
Short-term investments [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 108,790 | 62,168 |
Short-term investments [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 15,488 | 13,996 |
Short-term investments [Member] | Level 2 [Member] | Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 93,302 | 48,172 |
Long-term investments [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 22,054 | 18,338 |
Long-term investments [Member] | Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 22,054 | 18,338 |
Long-term investments [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 7,829 | |
Long-term investments [Member] | Level 1 [Member] | Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 7,829 | |
Long-term investments [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | 14,225 | 18,338 |
Long-term investments [Member] | Level 2 [Member] | Government agency obligations [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total investments | $ 14,225 | $ 18,338 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Schedule of Available-for-sale Securities Maturities (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Cost range of maturity | ||
Cost due within 1 year | $ 177,564 | $ 81,413 |
Cost due in 1 to 2 years | 22,033 | 18,324 |
Fair value range of maturity | ||
Fair value due within 1 year | 177,527 | 81,419 |
Fair value due in 1 to 2 years | $ 22,054 | $ 18,338 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
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 | $ 1,385,000 |
Long-lived assets, fair value | $ 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 Instr68
Fair Value of Financial Instruments - Estimated Fair Value and Carrying Value of 2019 and 2020 Notes (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Convertible Senior Notes Due 2019 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Convertible senior notes, Fair Value | $ 257,624 | $ 260,444 |
Convertible senior notes, Carrying Value | 300,711 | $ 287,487 |
Convertible Senior Notes Due 2020 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Convertible senior notes, Fair Value | 198,635 | |
Convertible senior notes, Carrying Value | $ 224,887 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current | |||
Current, Federal | $ 55,676 | $ 45,611 | $ 21,593 |
Current, State | 9,112 | 9,235 | 4,182 |
Current, Foreign | 227 | (596) | (454) |
Total current tax expense | 65,015 | 54,250 | 25,321 |
Deferred | |||
Deferred, Federal | (5,691) | 3,895 | 6,215 |
Deferred, State | (648) | (973) | (596) |
Deferred, Foreign | 105 | 1 | (17) |
Total deferred tax expense (benefit) | (6,234) | 2,923 | 5,602 |
Total income tax expense | $ 58,781 | $ 57,173 | $ 30,923 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Provision at federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State income taxes-net of federal tax impact | 3.70% | 4.00% | 5.80% |
Stock-based compensation | 21.30% | ||
Valuation allowance | (0.10%) | ||
Foreign income | (0.10%) | (0.30%) | (0.20%) |
Net adjustments to tax accruals and other | 0.60% | (0.10%) | 1.20% |
Effective tax rate | 39.20% | 38.60% | 63.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Reclassification adjustment from current to non-current assets | $ 27,900,000 | |
Reclassification adjustment from current to non-current liabilities | 100,000 | |
Valuation allowance retained against deferred tax assets | 200,000 | |
State net operating loss carryovers | $ 200,000 | |
Expiration of federal and state net operating loss carryovers | The state net operating loss carryovers will expire in 2019. | |
Ownership equity method percentage | 50.00% | |
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 |
Tax year open to federal and state tax examination | 2,002 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Non-current deferred tax assets (liabilities) | ||
Stock-based compensation | $ 32,248 | $ 29,894 |
Inventory | 29,430 | 26,067 |
Deferred lease credits | 20,074 | 14,963 |
Accrued expense | 18,964 | 22,469 |
Deferred revenue | 1,800 | 1,281 |
U.S. impact of Canadian transfer pricing | 1,420 | 1,410 |
Net operating loss carryforwards | 214 | 752 |
Property and equipment | (24,905) | (17,113) |
Trademarks and domain names | (18,414) | (18,271) |
Prepaid expense and other | (17,956) | (22,182) |
Convertible senior notes | (4,719) | 1,035 |
State tax benefit | (3,052) | (3,350) |
Construction allowance | (1,697) | |
Other | 1,793 | 1,378 |
Non-current deferred tax assets | 36,897 | 36,636 |
Valuation allowance | (158) | (176) |
Net non-current deferred tax assets | $ 36,739 | $ 36,460 |
Income Taxes - Schedule of Re73
Income Taxes - Schedule of Reconciliation of Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of fiscal year | $ 176 | $ 206 | $ 293 |
Net changes in deferred tax assets and liabilities | (18) | (30) | (87) |
Balance at end of fiscal year | $ 158 | $ 176 | $ 206 |
Income Taxes - Schedule of Re74
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of fiscal year | $ 940 | $ 1,395 | $ 1,841 |
Gross decreases—prior period tax positions | (88) | (122) | (151) |
Gross increases—current period tax positions | 69 | ||
Lapses in statute of limitations | (333) | (295) | |
Balance at end of fiscal year | $ 921 | $ 940 | $ 1,395 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Weighted-Average Shares Used for Net Income per Share (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Weighted-average shares—basic | 40,522,242 | 40,282,734 | 40,045,850 | 39,913,946 | 39,734,145 | 39,507,272 | 39,436,255 | 39,152,923 | 40,190,448 | 39,457,491 | 38,671,564 |
Effect of dilutive stock-based awards | 2,066,111 | 1,920,719 | 1,745,066 | ||||||||
Weighted-average shares—diluted | 42,225,070 | 42,413,657 | 42,243,910 | 41,959,718 | 41,777,509 | 41,392,831 | 41,262,629 | 40,787,726 | 42,256,559 | 41,378,210 | 40,416,630 |
Net Income Per Share - Anti-Dil
Net Income Per Share - Anti-Dilutive Securities Excluded from Diluted Net Income per Share (Detail) - shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
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 | 535,306 | 1,013,410 | 865,733 |
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 | 522,390 | 1,009,157 | 774,745 |
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 | 12,916 | 4,253 | 90,988 |
Share Repurchases - Summary of
Share Repurchases - Summary of Company's Repurchase and Promissory Note Issuance Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Equity [Abstract] | |||
Shares repurchased | 2,625 | 251,910 | 40,353 |
Fair value at purchase price | $ 238 | $ 16,575 | $ 2,710 |
Weighted-average interest rate | 3.00% | 5.00% | 5.00% |
Weighted-average term | 7 years | 8 years | 10 years |
Share Repurchases - Additional
Share Repurchases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Equity [Abstract] | |||
Unpaid principal amount of notes payable for share repurchases | $ 19,523 | $ 19,285 | |
Interest expense related to notes payable for share repurchases | $ 1,000 | $ 900 | $ 100 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense | $ 24,223,000 | $ 17,072,000 | $ 67,622,000 |
Stock-based compensation cost capitalized | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - 2012
Stock-Based Compensation - 2012 Stock Option Plan and 2012 Stock Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 01, 2016 | Feb. 02, 2015 | Jul. 02, 2013 | Nov. 01, 2012 | Jan. 30, 2016 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 |
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock shares issued | 1,264,036 | |||||||
Resale restrictions period | 20 years | |||||||
Common stock, value, minimum | $ 50.75 | |||||||
Common stock, value, maximum | 111.25 | |||||||
Exercise price of stock option granted | $ 26.50 | |||||||
Unrecognized compensation expense | $ 52 | |||||||
Total number of shares issuable | 14,240,370 | 13,442,519 | ||||||
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock shares issued | 687,600 | |||||||
Exercise price per share | $ 42.09 | |||||||
Exercise price of stock option granted | $ 89.75 | |||||||
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | Stock Options [Member] | Resale Restrictions [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Lapse of shares | 875,389 | |||||||
Exercise price per share | $ 29 | |||||||
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | Stock Options [Member] | Resale Restriction after Offer Date [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Lapse of shares | 5,953,652 | |||||||
Exercise price per share | $ 46.50 | |||||||
2012 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exercise price of stock option granted | $ 75.43 | |||||||
Stock option granted | 1,000,000 | |||||||
Stock-based compensation expense | $ 33.7 | |||||||
Stock option, lapse description | option was 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. | |||||||
Number of additional shares issuable | 797,851 | 2,151,580 | ||||||
2012 Stock Incentive Plan [Member] | Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of additional shares issuable | 811,666 | |||||||
Employees and Advisors [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock shares issued | 6,829,041 | |||||||
Directors [Member] | 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | Restricted Stock Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock shares issued | 40,623 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - 2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] - $ / shares | Nov. 01, 2012 | Jan. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Granted | 1,264,036 | |
Weighted-Average Exercise Price, Granted | $ 26.50 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding, Beginning balance | 6,716,306 | |
Options, Granted | 687,600 | |
Options, Exercised | (610,641) | |
Options, Cancelled | (257,692) | |
Options, Outstanding, Ending balance | 6,535,573 | |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ 51.26 | |
Weighted-Average Exercise Price, Granted | 89.75 | |
Weighted-Average Exercise Price, Exercised | 42.09 | |
Weighted-Average Exercise Price, Cancelled | 62.96 | |
Weighted-Average Exercise Price, Outstanding, Ending balance | $ 55.71 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions Used to Estimate Fair Value of Stock Options Issued (Detail) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected volatility | 37.70% | 39.70% | 39.70% |
Expected life (years) | 6 years 6 months | 6 years 6 months | 6 years 8 months 12 days |
Risk-free interest rate | 1.80% | 2.00% | 1.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Su83
Stock-Based Compensation - Summary of Additional Information about Stock Options (Detail) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of stock options granted | $ 36.43 | $ 26.92 | $ 30.49 |
Aggregate intrinsic value of stock options exercised | $ 32,590 | $ 62,015 | $ 11,623 |
Fair value of stock options vested | $ 8,611 | $ 2,246 | $ 33,871 |
Stock-Based Compensation - Sc84
Stock-Based Compensation - Schedule of Stock Options Outstanding, Vested or Expected to Vest, and Exercisable (Detail) - Stock Options [Member] | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number of Options | shares | 6,535,573 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 7 years 4 months 6 days |
Options Outstanding, Weighted-Average Exercise Price | $ 55.71 |
Options Exercisable, Number of Options | shares | 4,882,840 |
Options Exercisable, Weighted-Average Exercise Price | $ 49.84 |
Vested or expected to vest, Number of Options | shares | 6,336,741 |
Vested or expected to vest, Weighted-Average Remaining Contractual Life (in years) | 7 years 3 months 22 days |
Vested or expected to vest, Weighted-Average Exercise Price | $ 55 |
Range of Exercise Prices $24.00 - $39.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Lower | 24 |
Range of Exercise Prices, Upper | $ 39 |
Options Outstanding, Number of Options | shares | 853,342 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 9 months |
Options Outstanding, Weighted-Average Exercise Price | $ 28.29 |
Options Exercisable, Number of Options | shares | 794,467 |
Options Exercisable, Weighted-Average Exercise Price | $ 27.85 |
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 | shares | 2,976,826 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 9 months |
Options Outstanding, Weighted-Average Exercise Price | $ 46.50 |
Options Exercisable, Number of Options | shares | 2,976,826 |
Options Exercisable, Weighted-Average Exercise Price | $ 46.50 |
Range of Exercise Prices $56.27 - $74.03 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Lower | 56.27 |
Range of Exercise Prices, Upper | $ 74.03 |
Options Outstanding, Number of Options | shares | 938,935 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 8 years 3 months 7 days |
Options Outstanding, Weighted-Average Exercise Price | $ 61.67 |
Options Exercisable, Number of Options | shares | 83,505 |
Options Exercisable, Weighted-Average Exercise Price | $ 61.70 |
Range of Exercise Prices $75.43 - $75.43 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Lower | 75.43 |
Range of Exercise Prices, Upper | $ 75.43 |
Options Outstanding, Number of Options | shares | 1,020,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 7 years 5 months 1 day |
Options Outstanding, Weighted-Average Exercise Price | $ 75.43 |
Options Exercisable, Number of Options | shares | 1,008,000 |
Options Exercisable, Weighted-Average Exercise Price | $ 75.43 |
Range of Exercise Prices $76.80 - $101.84 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Lower | 76.80 |
Range of Exercise Prices, Upper | $ 101.84 |
Options Outstanding, Number of Options | shares | 746,470 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 9 years 2 months 12 days |
Options Outstanding, Weighted-Average Exercise Price | $ 89.33 |
Options Exercisable, Number of Options | shares | 20,042 |
Options Exercisable, Weighted-Average Exercise Price | $ 81.60 |
Stock-Based Compensation - 2085
Stock-Based Compensation - 2012 Stock Option Plan and 2012 Stock Incentive Plan - Stock Options - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 24,223 | $ 17,072 | $ 67,622 |
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of options outstanding | 73,800 | ||
Aggregate intrinsic value of options vested or expected to vest | 73,600 | ||
Aggregate intrinsic value of options exercisable | $ 57,200 | ||
Weighted-average remaining contractual life of options exercisable | 6 years 11 months 1 day | ||
2012 Stock Option Plan and 2012 Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 10,400 | $ 6,900 | $ 1,300 |
Unrecognized compensation expense related to unvested options | $ 35,900 | ||
Unrecognized compensation expense with weighted-average period | 3 years 7 months 2 days |
Stock-Based Compensation - Su86
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member] - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Average Grant Date Fair Value, Granted | $ 90.14 | $ 63.59 | $ 65.37 |
2012 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, Outstanding, Beginning balance | 719,998 | ||
Awards, Granted | 295,512 | ||
Awards, Released | (137,227) | ||
Awards, Cancelled | (72,368) | ||
Awards, Outstanding, Ending balance | 805,915 | 719,998 | |
Weighted-Average Grant Date Fair Value, Outstanding, Beginning balance | $ 64.09 | ||
Weighted-Average Grant Date Fair Value, Granted | 90.14 | ||
Weighted-Average Grant Date Fair Value, Released | 65.69 | ||
Weighted-Average Grant Date Fair Value, Cancelled | 66.96 | ||
Weighted-Average Grant Date Fair Value, Outstanding, Ending balance | $ 73.11 | $ 64.09 | |
Intrinsic Value, Cancelled | $ 49,660,482 |
Stock-Based Compensation - Su87
Stock-Based Compensation - Summary of Additional Information about Restricted Stock Awards (Detail) - Restricted Stock Awards [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of awards granted | $ 90.14 | $ 63.59 | $ 65.37 |
Grant date fair value of awards released | $ 12,223 | $ 6,172 | $ 760 |
Stock-Based Compensation - 2088
Stock-Based Compensation - 2012 Stock Incentive Plan - Restricted Stock Awards - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 24,223 | $ 17,072 | $ 67,622 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 13,800 | $ 10,200 | $ 2,700 |
Unrecognized compensation expense related to unvested options | $ 40,400 | ||
Unrecognized compensation expense with weighted-average period | 3 years 5 months 16 days |
Stock-Based Compensation - 2089
Stock-Based Compensation - 2012 Equity Replacement Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares vested, issued | 512,580 | |
Common stock, per share | $ 24 | |
2012 Equity Replacement Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Mr. Friedman unvested stock at IPO | 1,185,511 | |
2012 Equity Replacement Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares received | 1,331,548 | |
Common stock, price per share | $ 31 | |
Consecutive trading days | 10 days | |
Restricted shares vested, issued | 888,616 | |
Common stock, value | $ 46.50 | |
Non-cash compensation charge | $ 29.9 | |
Resale Restrictions [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 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employee's contribution to 401(k) plan | 50.00% | ||
Employer's contribution to 401(k) plan | 0.00% | 0.00% | 0.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 12 Months Ended |
Feb. 01, 2014USD ($) | |
Related Party Transactions [Abstract] | |
Related party transaction charges | $ 0.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 16, 2015 | Sep. 05, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Commitment And Contingencies [Line Items] | |||||||
Lease expiration year | 2,032 | ||||||
Non-cash rent expense | $ 2,900,000 | $ 2,900,000 | $ 3,900,000 | ||||
Material off balance sheet commitments | $ 0 | ||||||
Fees and costs awarded to plaintiff's attorney | $ 9,500,000 | ||||||
Litigation accrual | $ 9,200,000 | 9,500,000 | |||||
Revised litigation accrual | 8,000,000 | ||||||
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 $2.4 million 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. | ||||||
Loss contingency payment to third party | $ 2,400,000 | ||||||
Merchandise discount coupon rate | 33.00% | ||||||
Merchandise discount coupon expiry period | 1 year | ||||||
Maximum [Member] | |||||||
Commitment And Contingencies [Line Items] | |||||||
Merchandise discount coupon, purchases | $ 10,000 | ||||||
Estimated Class Member Response [Member] | |||||||
Commitment And Contingencies [Line Items] | |||||||
Decrease in litigation charge | $ (1,500,000) | ||||||
Gallery [Member] | |||||||
Commitment And Contingencies [Line Items] | |||||||
Lease expiration year | 2,058 |
Commitments and Contingencies93
Commitments and Contingencies - Future Minimum Rental Payments under Leases (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Commitments And Contingencies Disclosure [Abstract] | ||
2016, Capital Leases | $ 1,147 | |
2017, Capital Leases | 1,116 | |
2018, Capital Leases | 1,132 | |
2019, Capital Leases | 1,155 | |
2020, Capital Leases | 1,194 | |
Thereafter, Capital Leases | 10,374 | |
Minimum lease commitments, Capital Leases | 16,118 | |
Less—amount representing interest | (8,537) | |
Present value of capital lease obligations | 7,581 | |
Less—current capital lease obligations | (182) | $ (255) |
Non-current capital lease obligations | 7,399 | $ 7,487 |
2016, Operating Leases | 78,586 | |
2017, Operating Leases | 67,038 | |
2018, Operating Leases | 58,518 | |
2019, Operating Leases | 54,219 | |
2020, Operating Leases | 48,684 | |
Thereafter, Operating Leases | 334,880 | |
Minimum lease commitments, Operating Leases | 641,925 | |
2016, Build-to-Suit | 17,523 | |
2017, Build-to-Suit | 35,353 | |
2018, Build-to-Suit | 38,200 | |
2019, Build-to-Suit | 39,993 | |
2020, Build-to-Suit | 40,525 | |
Thereafter, Build-to-Suit | 631,528 | |
Minimum lease commitments, Build-to-Suit | 803,122 | |
2016, Total | 97,256 | |
2017, Total | 103,507 | |
2018, Total | 97,850 | |
2019, Total | 95,367 | |
2020, Total | 90,403 | |
Thereafter, Total | 976,782 | |
Minimum lease commitments, Total | $ 1,461,165 |
Commitments and Contingencies94
Commitments and Contingencies - Minimum and Contingent Rent under Lease Agreements Accounted for Operating Leases and Lease Agreements for Build-To-Suit Lease Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Lease agreements accounted for as operating leases | |||
Minimum rent | $ 76,246 | $ 75,654 | $ 66,686 |
Contingent rent | 10,209 | 7,989 | 6,208 |
Total operating leases | 86,455 | 83,643 | 72,894 |
Lease agreements accounted for as build-to-suit lease transactions | |||
Minimum rent | 12,755 | 7,375 | 1,980 |
Contingent rent | 442 | 122 | |
Total build-to-suit lease transactions | $ 13,197 | $ 7,497 | $ 1,980 |
Commitments and Contingencies95
Commitments and Contingencies - Minimum and Contingent Rent under Lease Agreements Accounted for Operating Leases and Lease Agreements for Build-To-Suit Lease Transactions (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Minimum rent payments recognized as interest expense | $ 9.9 | $ 5.3 | $ 1.1 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended | |||
Jan. 30, 2016Segment | Jan. 31, 2015Customer | Feb. 01, 2014Customer | Feb. 02, 2013Customer | |
Segment Reporting Information [Line Items] | ||||
Number of operating segment | Segment | 1 | |||
Number of customers accounted for more than 10% of Company's revenues | Customer | 0 | 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% | 10.00% |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 647,208 | $ 532,411 | $ 506,942 | $ 422,445 | $ 582,727 | $ 484,675 | $ 433,766 | $ 366,254 | $ 2,109,006 | $ 1,867,422 | $ 1,550,961 |
Furniture [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,295,486 | 1,116,351 | 909,390 | ||||||||
Non-furniture [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 813,520 | $ 751,071 | $ 641,571 |
Selected Quarterly Financial 98
Selected Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 647,208 | $ 532,411 | $ 506,942 | $ 422,445 | $ 582,727 | $ 484,675 | $ 433,766 | $ 366,254 | $ 2,109,006 | $ 1,867,422 | $ 1,550,961 |
Gross profit | 224,261 | 190,750 | 194,263 | 143,418 | 218,143 | 180,373 | 167,909 | 124,349 | 752,692 | 690,774 | 556,880 |
Net income | $ 33,302 | $ 20,710 | $ 29,935 | $ 7,156 | $ 42,525 | $ 19,429 | $ 27,253 | $ 1,795 | $ 91,103 | $ 91,002 | $ 18,195 |
Weighted-average shares used in computing basic net income per share | 40,522,242 | 40,282,734 | 40,045,850 | 39,913,946 | 39,734,145 | 39,507,272 | 39,436,255 | 39,152,923 | 40,190,448 | 39,457,491 | 38,671,564 |
Basic net income per share | $ 0.82 | $ 0.51 | $ 0.75 | $ 0.18 | $ 1.07 | $ 0.49 | $ 0.69 | $ 0.05 | $ 2.27 | $ 2.31 | $ 0.47 |
Weighted-average shares used in computing diluted net income per share | 42,225,070 | 42,413,657 | 42,243,910 | 41,959,718 | 41,777,509 | 41,392,831 | 41,262,629 | 40,787,726 | 42,256,559 | 41,378,210 | 40,416,630 |
Diluted net income per share | $ 0.79 | $ 0.49 | $ 0.71 | $ 0.17 | $ 1.02 | $ 0.47 | $ 0.66 | $ 0.04 | $ 2.16 | $ 2.20 | $ 0.45 |
Selected Quarterly Financial 99
Selected Quarterly Financial Data - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | May. 03, 2014 | Jan. 31, 2015 | |
Income Statement [Abstract] | |||
Litigation charge | $ 9.2 | $ 9.5 | |
Reversal of estimated expenses | $ 1.5 |