Sears Hometown & Outlet Stores (SHOS) 10-Q 2 Jun 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Apr. 29, 2017shares
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 29, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	Sears Hometown & Outlet Stores, Inc.
Entity Central Index Key	1,548,309
Current Fiscal Year End Date	--02-03
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	22,702,132

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Income Statement [Abstract]
NET SALES	$ 448,233	$ 536,981
COSTS AND EXPENSES
Cost of sales and occupancy	354,478	420,790
Selling and administrative	110,881	117,992
Depreciation and amortization	2,204	3,257
Total costs and expenses	467,563	542,039
Operating loss	(19,330)	(5,058)
Interest expense	(1,591)	(766)
Other income	319	397
Loss before income taxes	(20,602)	(5,427)
Income tax benefit (expense)	(832)	1,857
NET LOSS	$ (21,434)	$ (3,570)
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS
Basic (in dollars per share)	$ (0.94)	$ (0.16)
Diluted (in dollars per share)	$ (0.94)	$ (0.16)
Basic weighted average common shares outstanding (in shares)	22,702	22,666
Diluted weighted average common shares outstanding (in shares)	22,702	22,666

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 22,360	$ 14,104	$ 22,703
Accounts and franchisee receivables, net	10,915	11,448	10,961
Merchandise inventories	372,487	373,815	430,416
Prepaid expenses and other current assets	8,883	9,370	23,119
Total current assets	414,645	408,737	487,199
PROPERTY AND EQUIPMENT, net	41,021	40,935	50,450
LONG-TERM DEFERRED TAXES	0	0	76,666
OTHER ASSETS, net	17,259	18,754	16,731
TOTAL ASSETS	472,925	468,426	631,046
CURRENT LIABILITIES
Short-term borrowings	93,700	26,800	32,000
Payable to Sears Holdings Corporation	36,023	80,724	103,150
Accounts payable	27,671	17,853	31,214
Other current liabilities	64,252	70,377	62,985
Total current liabilities	221,646	195,754	229,349
OTHER LONG-TERM LIABILITIES	2,117	1,973	2,708
TOTAL LIABILITIES	223,763	197,727	232,057
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS' EQUITY
TOTAL STOCKHOLDERS' EQUITY	249,162	270,699	398,989
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 472,925	$ 468,426	$ 631,046

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (21,434)	$ (3,570)
Adjustments to reconcile net loss to net cash (used) provided by operating activities:
Depreciation and amortization	2,204	3,257
Share-based compensation	(103)	50
Deferred income taxes	0	2,475
Provision for (recoveries of) losses on franchisee receivables	116	(232)
Change in operating assets and liabilities:
Accounts and franchisee receivables	970	1,437
Merchandise inventories	1,328	4,430
Payable to Sears Holdings Corporation	(44,701)	49,024
Accounts payable	9,818	(8,548)
Closing store accrual	(3,440)	0
Other operating assets and liabilities, net	(1,248)	(5,358)
Net cash (used) provided by operating activities	(56,490)	42,965
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(2,076)	(2,290)
Net cash used in investing activities	(2,076)	(2,290)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (payments) of capital lease obligations	(78)	84
Net short-term borrowings (payments)	66,900	(36,300)
Net cash provided (used) in financing activities	66,822	(36,216)
NET CHANGE IN CASH AND CASH EQUIVALENTS	8,256	4,459
CASH AND CASH EQUIVALENTS—Beginning of period	14,104	18,244
CASH AND CASH EQUIVALENTS—End of period	22,360	22,703
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	1,594	782
Cash paid (refunded) for income taxes	$ 616	$ (2,291)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Accumulated Deficit
Beginning balance at Jan. 30, 2016	$ 402,509	$ 227	$ 555,372	$ (153,090)
Beginning balance (in shares) at Jan. 30, 2016		22,722
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,570)			(3,570)
Share-based compensation	50		50
Share-based compensation (in shares)		(3)
Ending balance at Apr. 30, 2016	398,989	$ 227	555,422	(156,660)
Ending balance (in shares) at Apr. 30, 2016		22,719
Beginning balance at Jan. 28, 2017	270,699	$ 227	555,481	(285,009)
Beginning balance (in shares) at Jan. 28, 2017		22,716
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(21,434)			(21,434)
Share-based compensation	(103)		(103)
Share-based compensation (in shares)		(14)
Ending balance at Apr. 29, 2017	$ 249,162	$ 227	$ 555,378	$ (306,443)
Ending balance (in shares) at Apr. 29, 2017		22,702

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Apr. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BACKGROUND AND BASIS OF PRESENTATION	BACKGROUND AND BASIS OF PRESENTATION Background Sears Hometown and Outlet Stores, Inc. is a national retailer primarily focused on selling home appliances, lawn and garden equipment, and tools. As of April 29, 2017 the Company or its dealers and franchisees operated a total of 1,012 stores across all 50 states and in Puerto Rico and Bermuda. In these notes and elsewhere in this Quarterly Report on Form 10-Q the terms “we,” “us,” “our,” “SHO,” and the “Company” refer to Sears Hometown and Outlet Stores, Inc. and its subsidiaries. Our common stock trades on the NASDAQ Stock Market under the trading symbol “SHOS.” The Separation The Company separated from Sears Holdings Corporation (“Sears Holdings”) in October 2012 (the “Separation”). To our knowledge Sears Holdings does not own any shares of our common stock. The Company has specified rights to use the "Sears" name under a license agreement from Sears Holdings. Basis of Presentation These unaudited Condensed Consolidated Financial Statements include the accounts of Sears Hometown and Outlet Stores, Inc. and its subsidiaries, all of which are wholly owned. These unaudited Condensed Consolidated Financial Statements do not include all of the information and footnotes required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the first quarter ended April 29, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year. These financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 (the "2016 10-K"). We operate through two segments--our Sears Hometown and Hardware segment ("Hometown") and our Sears Outlet segment ("Outlet"). Our first fiscal-quarter end is the Saturday closest to April 30 each year. Our fiscal-year end is the Saturday closest to January 31 each year. Reclassifications- certain amounts have been reclassified in order to conform to the current period presentation. Variable Interest Entities and Consolidation The Financial Accounting Standards Board ("FASB") has issued guidance on variable interest entities and consolidation for determining whether an entity is a variable interest entity ("VIE") as well as the methods permitted for determining the primary beneficiary of a variable interest entity. In addition, this guidance requires ongoing reassessments as to whether a reporting company is the primary beneficiary of a variable interest entity and disclosures regarding the reporting company’s involvement with a variable interest entity. On an ongoing basis the Company evaluates its business relationships, such as those with its independent dealers, independent franchisees, and suppliers, to identify potential variable interest entities. Generally, these businesses either qualify for a scope exception under the consolidation guidance or, where a variable interest exists, the Company does not possess the power to direct the activities that most significantly impact the economic performance of these businesses. The Company has not consolidated any of such entities in the periods presented. Fair Value of Financial Instruments We determine the fair value of financial instruments in accordance with standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value under GAAP. Under fair value measurement accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. We report the fair value of financial assets and liabilities based on the fair value hierarchy prescribed by accounting standards for fair value measurements, which prioritizes the inputs to valuation techniques used to measure fair value into three levels, as follows: Level 1 inputs —unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide ongoing pricing information. Level 2 inputs —inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable for the asset or liability, such as interest-rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risks, and default rates. Level 3 inputs —unobservable inputs for the asset or liability. Cash and cash equivalents, merchandise payables, accrued expenses (level 1), accounts and franchisee notes receivable, and short-term debt (level 2) are reflected in the Condensed Consolidated Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. For short-term debt, the variable interest rates are a significant input in our fair value assessments. The carrying value of long-term notes receivable approximates fair value. We measure certain non-financial assets and liabilities, including long-lived assets, at fair value on a nonrecurring basis. The Company was not required to measure any other significant non-financial asset or liability at fair value as of April 29, 2017. Recent Accounting Pronouncements Stock-based Compensation In March 2016, the FASB issued an accounting standards update (ASU) 2016-09, Topic 718 which makes several modifications to the accounting for employee share-based payment transactions, including the requirement to recognize the income tax effects of awards that vest or settle as income tax expense. This guidance also clarifies the presentation of certain components of share-based awards in the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company has adopted this pronouncement in the first quarter 2017, and the impact was not significant to the Condensed Consolidated Financial Statements. Leases In February 2016, the FASB issued ASU 2016-02, Topic 842 which replaces the current lease accounting standard. The update will require, among other items, lessees to recognize a right-of-use ("ROU") asset and a lease liability for most leases. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently evaluating the effect the update will have on our Condensed Consolidated Financial Statements. Upon adoption, the Company expects that the ROU asset and the lease liability will be recognized in the balance sheets in amounts that will be material. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Topic 606, which replaces the current revenue recognition standards. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update will be effective for the Company in the first quarter of 2018 and may be applied retrospectively for each period presented or as a cumulative-effect adjustment at the date of adoption. In May 2016, FASB issued another accounting standards update (ASU 2016-12, Topic 606), which amends certain aspects of the Board's revenue standard ASU 2014-09, "Revenue From Contracts With Customers". In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers. The update makes minor changes to the Board's new revenue guidance, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which was issued in May 2014. The technical corrections affect narrow aspects of the new revenue standard, including: loan guarantee fees, contract costs-impairment testing, contract costs - interaction of impairment testing with guidance in other topics, provisions for losses on construction-type and production-type contracts, scope of the new revenue standard, disclosure of remaining performance obligations, disclosure of prior-period performance obligations, a contract modification example, refund liability, advertising costs, fixed-odds wagering contracts in the casino industry, and cost capitalization for advisers to private and public funds. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by ASU 2014-09). The Company is evaluating the effect of adopting these new standards and has not yet determined the method by which the standards will be adopted. We have formed a committee to evaluate the effect of adopting these new standards, of which evaluation is in the initial stages. Classification of Certain Cash Flows Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Topic 230, which amended ASC 230. The update adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is a result of consensus reached by the FASB's Emerging Issues Task Force (EITF) on issues related to eight types of cash flows, including: 1) debt prepayment or debt extinguishment costs, 2) settlement of zero coupon bonds, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, 6) distributions received from equity-method investees, 7) beneficial interests in securitization transactions, and 8) separately identifiable cash flows and application of the predominance principle. The pronouncement becomes effective for fiscal years beginning after December 15, 2017 (which will be the Company's 2018 fiscal year) and interim periods within those fiscal years. We are currently evaluating the effect the update will have on our Condensed Consolidated Financial Statements and related disclosures. Business Combinations-Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Topic 805. The amendments in the update affect all reporting entities that must determine whether they have acquired or sold a business. The goal of the amendments was to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including: acquisitions, disposals, goodwill, and consolidation. The pronouncement is effective with respect to annual periods beginning after December 15, 2017, including interim periods within those periods. We are currently evaluating the effect the update will have on our Condensed Consolidated Financial Statements and related disclosures. Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05, Subtopic 610-20. The pronouncement clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of nonfinancial assets. The scope of Subtopic 610-20 (as originally issued in update 2014-09) included the derecognition of an in substance nonfinancial asset. Interpretation of the original update was uncertain since the term "in substance nonfinancial asset" was not well defined. Furthermore, under the original promulgation, there was a lack of clarity with respect to the accounting with partial sales of nonfinancial assets- whereby, for example, a seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. The issuance of ASU 2017-05 clarified terminology and provided greater instruction with respect to accounting treatment associated with partial sales of nonfinancial assets. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. We have evaluated the pronouncement with respect to first quarter 2017 business activity, and have determined the ASU is not applicable. While not relevant to the current period, the update will be reevaluated with respect to future business activity, which may trigger the ASU's guidance.

Accounts and Franchisee Receiva

Accounts and Franchisee Receivables and Other Assets	3 Months Ended
	Apr. 29, 2017
Receivables [Abstract]
ACCOUNTS AND FRANCHISEE RECEIVABLES AND OTHER ASSETS	ACCOUNTS AND FRANCHISEE RECEIVABLES AND OTHER ASSETS Accounts and franchisee receivables and other assets consist of the following: Thousands April 29, 2017 April 30, 2016 January 28, 2017 Short-term franchisee receivables $ 1,838 $ 2,197 $ 1,920 Miscellaneous receivables 9,943 9,985 10,475 Long-term franchisee receivables 17,129 21,302 18,406 Other assets 6,702 4,842 7,643 Allowance for losses on short-term franchisee receivables (1) (866 ) (1,221 ) (947 ) Allowance for losses on long-term franchisee receivables (1) (6,572 ) (9,413 ) (7,295 ) Total Accounts and franchisee receivables and other assets $ 28,174 $ 27,692 $ 30,202 (1) The Company recognizes an allowance for losses on franchisee receivables (which consist primarily of franchisee promissory notes) in an amount equal to estimated probable losses net of recoveries. The allowance is based on an analysis of expected future write-offs and existing economic conditions and an assessment of specific identifiable franchisee promissory notes and other franchisee receivables considered at risk or uncollectible. The expense associated with the allowance for losses on franchisee receivables is recognized as selling and administrative expense. Most of our franchisee promissory notes authorize us to deduct debt service from our commissions otherwise due and payable to the franchisees, and we routinely make those deductions to the extent of available commissions payable.

Allowance for Losses on Franchi

Allowance for Losses on Franchisee Receivables	3 Months Ended
	Apr. 29, 2017
Receivables [Abstract]
ALLOWANCE FOR LOSSES ON FRANCHISEE RECEIVABLES	ALLOWANCE FOR LOSSES ON FRANCHISEE RECEIVABLES The allowance for losses on franchisee receivables consists of the following: 13 Weeks Ended 13 Weeks Ended 52 Weeks Ended Thousands April 29, April 30, January 28, Allowance for losses on franchisee receivables, beginning of period $ 8,242 $ 12,141 $ 12,141 Provisions (recoveries) during the period 116 (232 ) (791 ) Write off of franchisee receivables against the allowance (920 ) (1,275 ) (3,383 ) Other — — 275 Allowance for losses on franchisee receivables, end of period $ 7,438 $ 10,634 $ 8,242

Other Current and Long-Term Lia

Other Current and Long-Term Liabilities	3 Months Ended
	Apr. 29, 2017
Payables and Accruals [Abstract]
OTHER CURRENT AND LONG-TERM LIABILITIES	OTHER CURRENT AND LONG-TERM LIABILITIES Other current and long-term liabilities consist of the following: Thousands April 29, April 30, January 28, Customer deposits $ 20,417 $ 24,090 $ 19,943 Sales and other taxes 12,841 13,254 11,380 Accrued expenses 21,939 22,114 27,602 Payroll and related items 6,953 5,079 5,766 Severance and executive transition costs 4,219 1,156 7,659 Total Other current and long-term liabilities $ 66,369 $ 65,693 $ 72,350

Income Taxes

Income Taxes	3 Months Ended
	Apr. 29, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES SHO and Sears Holdings entered into a Tax Sharing Agreement that governs the rights and obligations of the parties with respect to pre-Separation and post-Separation tax matters. Under the Tax Sharing Agreement, Sears Holdings generally is responsible for any federal, state, or foreign income tax liability relating to tax periods ending on or before the Separation. For all periods after the Separation, the Company generally is responsible for any federal, state, or foreign tax liability. Current income taxes payable for any federal, state, or foreign income tax returns is reported in the period incurred. We account for uncertainties in income taxes according to accounting standards for uncertain tax positions. The Company is present in a large number of taxable jurisdictions and, at any point in time, can have tax audits underway at various stages of completion in one or more of these jurisdictions. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law, and closings of statutes of limitation. Such adjustments are reflected in the tax provision as appropriate. For the 13 Weeks ended April 29, 2017 and April 30, 2016, no unrecognized tax benefits have been identified and reflected in the Condensed Consolidated Financial Statements. We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. As no unrecognized tax benefits have been identified and reflected in the Condensed Consolidated Financial Statements, no interest or penalties related to unrecognized tax benefits are reflected in the Condensed Consolidated Balance Sheets or Statements of Operations. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to realize the benefit of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss for the three years ended January 28, 2017. Such objective evidence limits the ability to consider other subjective evidence such as our projections for the future. On the basis of this analysis, management has established a full valuation allowance to offset the net deferred tax assets that are not expected to be realized. Management will continue to evaluate objective and subjective evidence for changes in circumstances that cause a change in judgment about the realizability of the deferred tax assets. We file federal, state, and city income tax returns in the United States and foreign tax returns in Puerto Rico. The U.S. Internal Revenue Service has commenced an audit of the Company's federal income tax return for the year ended January 30, 2016. SHO was also a part of the Sears Holdings' combined state returns for the years ended February 2, 2013 and February 1, 2014. Currently, the Company is under audit in two states for the years ended February 2, 2013 and February 1, 2014 as part of the Sears Holdings' combined return audits.

Related Party Agreements and Tr

Related Party Agreements and Transactions	3 Months Ended
	Apr. 29, 2017
Related Party Transactions [Abstract]
RELATED-PARTY AGREEMENTS AND TRANSACTIONS	RELATED-PARTY AGREEMENTS AND TRANSACTIONS According to publicly available information ESL Investments, Inc. and investment affiliates including Edward S. Lampert (collectively, "ESL") beneficially own approximately 57% of our outstanding shares of common stock and approximately 59% of Sears Holdings' outstanding shares of common stock (the latter percentage amount includes shares that may be acquired within 60 days upon the exercise of warrants to purchase shares). Mr. Lampert is the Chairman of the Board and Chief Executive Officer of Sears Holdings. SHO and Sears Holdings have entered into various agreements (as amended, the "SHO-Sears Holdings Agreements") that, among other things, (1) govern specified aspects of our relationship with Sears Holdings, (2) establish terms under which subsidiaries of Sears Holdings provide services to us, and (3) establish terms pursuant to which subsidiaries of Sears Holdings obtain merchandise inventories for us. The terms of the SHO-Sears Holdings Agreements were agreed to prior to the Separation (except for amendments entered into after the Separation that were approved by the Audit Committee of SHO's Board of Directors) in the context of a parent-subsidiary relationship and in the overall context of the Separation. The costs and allocations charged to the Company by Sears Holdings do not necessarily reflect the costs of obtaining the services from unaffiliated third parties or of the Company itself providing the applicable services. The Company has engaged in frequent discussions, and has resolved disputes, with Sears Holdings about the terms and conditions of the SHO-Sears Holdings Agreements, the business relationships that are reflected in the SHO-Sears Holdings Agreements, and the details of these business relationships, many of which details had not been addressed by the terms and conditions of the SHO-Sears Holdings Agreements or, if addressed, in the past were, and in the future could be, in dispute as to their meaning or application in the context of the existing business relationships. Many of these discussions have resulted in adjustments to the relationships that the Company believes together are in Company's best interests. On May 11, 2016, SHO and Sears Holdings entered into amendments to most of the SHO-Sears Holdings Agreements. The amendments are referred to in our Current Report on Form 8-K (File No. 001-35641) filed with the Securities and Exchange Commission on May 17, 2016. We also filed a Current Report on Form 8-K (File No. 001-35641) with the Securities and Exchange Commission on March 9, 2017 regarding the Amendment to Amended and Restated Merchandising Agreement dated as of March 8, 2017 among the Company, Sears Holdings, and Stanley Black & Decker. Inc. The following is a summary of the nature of the related-party transactions between SHO and Sears Holdings: • SHO receives commissions from Sears Holdings for specified online sales, sales of extended service contracts, and sales of delivery and handling services, and commissions relating to the use in our stores of credit cards branded with the Sears name. For specified transactions SHO pays commissions to Sears Holdings. • We obtain a significant amount of our merchandise inventories from Sears Holdings. We have a retailer's customary rights to return to Sears Holdings merchandise that is defective (except with respect to agreed-upon amounts of defective apparel that we purchase and then liquidate) or otherwise does not meet contract requirements. In addition, we may determine that an item of Outlet merchandise (usually merchandise that is not new in-box) we have received from Sears Holdings cannot be refurbished or reconditioned or is otherwise not in a physical condition to offer for sale to our customers. We and Sears Holdings (and our Outlet vendors generally) refer to an item of merchandise in this condition as "not saleable" or "non-saleable," and in the normal course we can return the item to Sears Holdings. We generally have comparable return rights with our other Outlet vendors. • We pay royalties related to our sale of products branded with the KENMORE®, CRAFTSMAN®, and DIEHARD® marks (which marks are owned by, or licensed to, subsidiaries of Sears Holdings, together the "KCD Marks"). The royalty rates vary but none exceeds 6% . • We pay fees for participation in Sears Holdings' SHOP YOUR WAY REWARDS® program. • We pay fees to Sears Holdings for logistics, handling, warehouse, and transportation services, which fees are based generally on merchandise inventory units. • Sears Holdings provides the Company with specified corporate services. These services include accounting and finance, and information technology, among other services. Sears Holdings charges the Company for these corporate services based on actual usage or pro rata charges based upon sales, head count, or other measurements. • Sears Holdings leases stores and distribution/repair facilities to the Company, for which the Company pays rent and related occupancy charges to Sears Holdings. The following table summarizes the results of the transactions with Sears Holdings reflected in the Company’s Condensed Consolidated Financial Statements: 13 Weeks Ended April 29, 2017 April 30, 2016 Thousands Net Commissions from Sears Holdings $ 17,397 $ 21,574 Purchases related to cost of sales and occupancy 264,530 313,534 Services included in selling and administrative expense 16,533 21,448 We incur payables to Sears Holdings for merchandise inventory purchases and service and occupancy charges (net of commissions) based on the SHO-Sears Holdings Agreements. Amounts due to or from Sears Holdings are non-interest bearing and, except as provided in the following sentences of this paragraph, are settled on a net basis and have payment terms of 10 days after the invoice date. From time to time, in accordance with the SHO–Sears Holdings Agreements and at the request of Sears Holdings, the Company pays invoices on three –day terms and deducts from the invoices an early–payment discount of 37 basis points. The Company can, in its sole discretion, revert to ten –day, no–discount payment terms at any time upon notice to Sears Holdings. The discount received for payments made on three –day terms, net of incremental interest expense, results in a net financial benefit to the Company. During the 13 weeks ended April 29, 2017, the Company paid most invoices on three –day terms and realized a financial benefit of $0.6 million . During the 13 weeks ended April 30, 2016, the Company did not pay any invoice on three –day terms and, accordingly, did not realize any financial benefit. We recorded real estate occupancy payments of $0.3 million and $0.2 million for the first quarters of 2017 and 2016, respectively, to Seritage Growth Properties, a real estate investment trust. Edward S. Lampert is the Chairman of the Board of Trustees of Seritage.

Financing Arrangements

Financing Arrangements	3 Months Ended
	Apr. 29, 2017
Debt Disclosure [Abstract]
FINANCING AGREEMENTS	FINANCING ARRANGEMENTS In October 2012 the Company entered into a Credit Agreement with a syndicate of lenders, including Bank of America, N.A., as administrative agent, which provided (subject to availability under a borrowing base) for aggregate maximum borrowings of $250 million (the “Prior Facility”). Under the Prior Facility the Company initially borrowed $100 million which was used to pay a cash dividend to Sears Holdings prior to the Separation. On November 1, 2016 the Company’s three operating subsidiaries, Sears Authorized Hometown Stores, LLC, Sears Home Appliance Showrooms, LLC, and Sears Outlet Stores, L.L.C., and the Company, entered into an Amended and Restated Credit Agreement with a syndicate of lenders, including Bank of America, N.A., as administrative agent and collateral agent, which provides (subject to availability under a borrowing base) for aggregate maximum borrowings of $250 million (the “Senior ABL Facility”). The Senior ABL Facility, which amended and restated the Prior Facility in its entirety, provides for extended revolving credit commitments in an aggregate amount equal to $170 million (the “Extended Revolving Credit Commitments”) and non-extended revolving credit commitments in an aggregate amount equal to $80 million (the “Non-Extended Revolving Credit Commitments”). The Extended Revolving Credit Commitments will mature on the earlier of (1) February 29, 2020 and (2) six months prior to the expiration of specified agreements entered into with Sears Holdings and its subsidiaries in connection with the Separation (the “Subject Agreements”) unless they are extended to a date later than February 29, 2020 or terminated on a basis reasonably satisfactory to the administrative agent under the Senior ABL Facility. The Non-Extended Revolving Credit Commitments will mature on the earlier of (1) October 11, 2017 and (2) six months prior to the expiration of the Subject Agreements unless they are extended to a date later than October 11, 2017 or terminated on a basis reasonably satisfactory to the administrative agent under the Amended and Restated Credit Agreement. Costs related to and incurred for the November 1, 2016 refinancing totaled approximately $5.4 million , of which $4.9 million is remaining and is included in Prepaid and Other current assets on the Consolidated Balance Sheet as of April 29, 2017 and is being amortized over the remaining term of the Senior ABL Facility. As of April 29, 2017 we had $93.7 million outstanding under the Senior ABL Facility, which approximated the fair value of these borrowings. Up to $75 million of the Senior ABL Facility is available for the issuance of letters of credit and up to $25 million is available for swingline loans. The Senior ABL Facility permits us to request commitment increases in an aggregate principal amount of up to $100 million . Availability under the Senior ABL Facility as of April 29, 2017 was $115.2 million , with $6.1 million of letters of credit outstanding under the facility. In the first quarter of 2017, we resumed our agreement with Sears Holdings whereby SHO paid Sears Holdings's invoices for merchandise and services on accelerated terms in exchange for a 37 -basis point cash discount. The discounts we received for the accelerated payments, less incremental interest expense, resulted in a net financial benefit to the Company. Our Senior ABL Facility borrowings increased by approximately $30 million as a result of the agreement. We can, in our sole discretion, revert to ten -day, no-discount payment terms at any time. The principal terms of the Senior ABL Facility are summarized below. Prepayments The Senior ABL Facility is subject to mandatory prepayment in amounts equal to the amount by which the outstanding extensions of credit exceed the lesser of the borrowing base and the commitments then in effect. Security and Guarantees The Senior ABL Facility is secured by a first lien security interest on substantially all the assets of the Company and its subsidiaries, including, without limitation, accounts receivable, inventory, general intangibles, investment property, equipment, cash, cash equivalents, deposit accounts and securities accounts, as well as certain other assets (other than intellectual property and fee-owned interests in real property) ancillary to any of the foregoing and all proceeds of any of the foregoing, including cash proceeds and the proceeds of applicable insurance. The Senior ABL Facility is guaranteed by the Company and each of its existing and future direct and indirect wholly owned domestic subsidiaries (other than specified immaterial subsidiaries). Interest; Fees The interest rates per annum applicable to the loans under the Senior ABL Facility are based on a fluctuating rate of interest measured by reference to, at the Company’s election, either (1) an adjusted London inter-bank offered rate (LIBOR) plus a borrowing margin ranging from (x) 3.50% to 4.50% , in the case of the Extended Revolving Credit Commitments or (y) 2.00% to 2.50% , in the case of the Non-Extended Revolving Credit Commitments (which the blended rate was approximately 4.19% at April 29, 2017), and in each case based on availability under the Senior ABL Facility, or (2) an alternate base rate plus a borrowing margin, ranging from (x) 2.50% to 3.50% , in the case of the Extended Revolving Credit Commitments or (y) 1.00% to 1.50% , in the case of the Non-Extended Revolving Credit Commitments (which the blended rate was approximately 6.19% at April 29, 2017), and in each case based on availability under the Senior ABL Facility. The interest rates per annum applicable to the loans under the Prior Facility were based on a fluctuating rate of interest measured by reference to, at our election, either (1) an adjusted London inter-bank offered rate (LIBOR) plus a borrowing margin, which rate was approximately 2.44% at April 30, 2016 or (2) an alternate base rate plus a borrowing margin, with the borrowing margin subject to adjustment based on the average excess availability under the Prior Facility for the preceding fiscal quarter, which rate was approximately 4.50% at April 30, 2016. Customary fees are payable in respect of the Senior ABL Facility, including letter of credit fees and commitment fees. Covenants The Senior ABL Facility includes a number of negative covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries (including the guarantors) to, subject to certain exceptions, incur additional indebtedness (including guarantees), grant liens, make investments, make prepayments on other indebtedness, and engage in mergers or change the nature of the business of the Company and its subsidiaries (including the guarantors). In addition, upon excess availability falling below a specified level, the Company is required to comply with a minimum fixed charge coverage ratio. The Senior ABL Facility also limits SHO’s ability to declare and pay cash dividends and repurchase its common stock. SHO may declare and pay cash dividends and may repurchase stock, together not exceeding $37.5 million in any fiscal year or $75 million in the aggregate, if the following conditions are satisfied: either (a) (i) no specified default then exists or would arise as a result of the declaration or payment of the cash dividend or as a result of the stock repurchase, (ii) SHO and its subsidiaries that are also borrowers have demonstrated to the reasonable satisfaction of the agent for the lenders that monthly availability (as determined in accordance with the Senior ABL Facility), immediately following the declaration and payment of the cash dividend or the stock repurchase and as projected on a pro forma basis for the twelve months following and after giving effect to the declaration and payment of the cash dividend or the stock repurchase, would be at least equal to the greater of (x) 25% of the Loan Cap (which is the lesser of (A) the aggregate commitments of the lenders and (B) the borrowing base) and (y) $50 million, and (iii) after giving pro forma effect to the declaration and payment of the cash dividend or the stock repurchase as if it constituted a specified debt service charge, the specified consolidated fixed charge coverage ratio, as calculated on a trailing twelve months basis, would be equal to or greater than 1.1 :1.0, or (b) (i) no specified default then exists or would arise as a result of the declaration or payment of the cash dividend or the stock repurchase and (ii) SHO demonstrates to the reasonable satisfaction of the agent for the lenders that monthly availability, immediately following the declaration and payment of the cash dividend or the stock repurchase and as projected on a pro forma basis for the twelve months following and after giving effect to the declaration and payment of the cash dividend or the stock repurchase will be at least equal to the greater of (x) 50% of the Loan Cap and (y) $100 million. No default or event of default presently exists. SHO believes that it would have met the foregoing conditions at April 29, 2017 and that the Senior ABL Facility as of that date would have permitted us to pay cash dividends and repurchase our common stock subject to the limits described above in this paragraph. The Senior ABL Facility also contains affirmative covenants, including financial and other reporting requirements. As of April 29, 2017, SHO was in compliance with all covenants under the Senior ABL Facility. Events of Default The Senior ABL Facility includes customary and other events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross default to other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, material judgments, change of control, failure to perform a “Material Contract” (which includes specified SHO-Sears Holdings Agreements) to the extent required to maintain it in full force and effect, the failure to enforce a Material Contract in accordance with its terms, or Sears Holdings terminates specified “Separation Agreements” (which include specified SHO-Sears Holdings Agreements).

Summary of Segment Data

Summary of Segment Data	3 Months Ended
	Apr. 29, 2017
Segment Reporting [Abstract]
SUMMARY OF SEGMENT DATA	SUMMARY OF SEGMENT DATA The Hometown reportable segment consists of the aggregation of our Hometown Stores, Hardware Stores, and Home Appliance Showrooms business formats described in “Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations-Executive Overview" of this Quarterly Report on Form 10-Q. The Outlet reportable segment also represents a business format. These segments are evaluated by our Chief Operating Decision Maker to make decisions about resource allocation and to assess performance. Each of these segments derives its revenues from the sale of merchandise and related services to customers, primarily in the U.S. Sales categories include appliances, lawn and garden, tools and paint, and other (which includes initial franchise revenue). 13 Weeks Ended April 29, 2017 Thousands Hometown Outlet Total Net sales Appliances $ 197,726 $ 125,865 $ 323,591 Lawn and garden 63,563 5,595 69,158 Tools and paint 25,287 3,880 29,167 Other 10,638 15,679 26,317 Total 297,214 151,019 448,233 Costs and expenses Cost of sales and occupancy 229,874 124,604 354,478 Selling and administrative 74,417 36,464 110,881 Depreciation and amortization 855 1,349 2,204 Total 305,146 162,417 467,563 Operating loss $ (7,932 ) $ (11,398 ) $ (19,330 ) Total assets $ 320,074 $ 152,851 $ 472,925 Capital expenditures $ 1,255 $ 821 $ 2,076 13 Weeks Ended April 30, 2016 Thousands Hometown Outlet Total Net sales Appliances $ 230,934 $ 142,048 $ 372,982 Lawn and garden 78,417 4,688 83,105 Tools and paint 36,117 4,614 40,731 Other 21,111 19,052 40,163 Total 366,579 170,402 536,981 Costs and expenses Cost of sales and occupancy 284,138 136,652 420,790 Selling and administrative 80,853 37,139 117,992 Depreciation and amortization 1,569 1,688 3,257 Total 366,560 175,479 542,039 Operating income (loss) $ 19 $ (5,077 ) $ (5,058 ) Total assets $ 421,801 $ 209,245 $ 631,046 Capital expenditures $ 1,306 $ 984 $ 2,290

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES We are subject to various legal and governmental proceedings arising out of the ordinary course of business, the outcome of which, individually or in the aggregate, in the opinion of management would not have a material adverse effect on our business, financial position, results of operations, or cash flows.

Loss Per Common Share

Loss Per Common Share	3 Months Ended
	Apr. 29, 2017
Earnings Per Share [Abstract]
LOSS PER COMMON SHARE	LOSS PER COMMON SHARE Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding for each period. In the periods where the Company records a net loss the diluted per share amount is equal to the basic per share amount. The following table sets forth the components used to calculate basic and diluted loss per common share attributable to our stockholders. 13 Weeks Ended 13 Weeks Ended April 29, 2017 April 30, 2016 Thousands except income per common share Basic weighted average shares 22,702 22,666 Diluted weighted average shares 22,702 22,666 Net loss $ (21,434 ) $ (3,570 ) Loss per common share: Basic $ (0.94 ) $ (0.16 ) Diluted $ (0.94 ) $ (0.16 )

Equity

Equity	3 Months Ended
	Apr. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY	EQUITY Stock-Based Compensation Four million shares of the Company's common stock are reserved for issuance under the Company's Amended and Restated 2012 Stock Plan (the "Plan"). A total of 89,221 shares of restricted stock were granted under the Plan in 2013 (the "2013 Grants") to a group of eligible individuals (as defined in the Plan) and 14,000 shares of restricted stock were granted under the Plan to an eligible individual in 2015 (the "2015 Grant"). As of May 16, 2016, 52,691 shares of restricted stock comprising the 2013 Grants had been forfeited. On that date the remaining 36,530 shares of restricted stock comprising the 2013 Grants vested in accordance with the terms and conditions of the governing restricted-stock agreements and the Plan. The 14,000 shares of restricted stock comprising the 2015 Grant were forfeited in the first quarter of 2017. In 2015 the Company granted a total of 159,475 stock units under the Plan to a group of eligible individuals, all of whom were employees of the Company at the time of the grants. As of April 29, 2017, 34,091 stock units had been forfeited. The remaining 125,384 stock units will vest, if at all, on April 13, 2018 in accordance with and subject to the terms and conditions of governing stock-unit agreements, including forfeiture conditions, and the Plan. The fair value of these awards will vary based on changes in our stock price at each reporting period. During the first quarter of 2017 the Company granted a total of 222,788 stock units under the Plan to a group of eligible individuals, all of whom were employees of the Company at the time of the grants. As of April 29, 2017, 33,333 of these stock units had been forfeited. The remaining 189,455 stock units will vest, if at all, in three substantially equal installments on January 30 in 2018, 2019, and 2020 in accordance with and subject to the terms and conditions of governing stock unit agreements, including forfeiture conditions, and the Plan. The shares of restricted stock referred to above in this Note 11 constituted outstanding shares of the Company's common stock. The recipients of the restricted stock grants had, with respect to their restricted stock, full voting and dividend rights with respect to, but were unable to transfer or pledge, their shares of restricted stock prior to the applicable vesting dates. The stock units referred to above in this Note 11, which are payable solely in cash based on the Nasdaq closing price of our common stock at the applicable vesting dates, do not constitute outstanding shares of the Company's common stock. The recipients of the stock unit grants have, with respect to their stock units, no rights to receive the Company's common stock or other securities of the Company, no rights as a stockholder of the Company, no dividend rights, and no voting rights. We are authorized to grant stock options and to make other awards (in addition to restricted stock and stock units) to eligible participants pursuant to the Plan. The Company has made no stock-option awards under the Plan. Except for the grants of restricted stock and stock units referred to above in this Note 11, the Company has not made any grant or award under the Plan. We do not currently have a broad-based program that provides for awards under the Plan on an annual basis. We account for stock-based compensation using the fair value method in accordance with accounting standards regarding share-based payment transactions. During the first quarter of 2017 we recorded $0.1 million in total compensation expense for 314,839 stock units. At April 29, 2017 we had $0.8 million in total unrecognized compensation cost related to the remaining non-vested stock units, which we expect to recognize over the next approximately 2.5 years. Changes during the first quarter of 2017 with respect to the 2015 Grant are noted below. 13 Weeks Ended April 29, 2017 (Shares in Thousands) Shares Weighted-Average Fair Value Per Share on Date of Grant Beginning of year balance 14 $ 9.38 Granted — — Vested — — Forfeited (14 ) 9.38 Balance at April 29, 2017 — $ — Share Repurchase Program On August 28, 2013 the Company's Board of Directors authorized a $25 million repurchase program for the Company's outstanding shares of common stock. The timing and amount of repurchases depend on various factors, including market conditions, the Company's capital position and internal cash generation, and other factors. The Company's repurchase program does not include specific price targets, may be executed through open-market, privately negotiated, and other transactions that may be available, and may include utilization of Rule 10b5-1 plans. The repurchase program does not obligate the Company to repurchase any dollar amount, or any number of shares, of common stock. The repurchase program does not have a termination date, and the Company may suspend or terminate the repurchase program at any time. See Note 7 to these Condensed Consolidated Financial Statements regarding the Senior ABL Facility's limits on SHO’s ability to repurchase its common stock. Shares that are repurchased by the Company pursuant to the repurchase program will be retired and resume the status of authorized and unissued shares of common stock. No shares were repurchased during the 13 weeks ended April 29, 2017. At April 29, 2017, we had approximately $12.5 million of remaining authorization under the repurchase program.

Accelerated Closure of Underper

Accelerated Closure of Underperforming Stores	3 Months Ended
	Apr. 29, 2017
Payables and Accruals [Abstract]
ACCELERATED CLOSURE OF UNDERPERFORMING STORES	ACCELERATED CLOSURE OF UNDERPERFORMING STORES We continue to take proactive steps to make the best use of capital and to reduce costs. In the first quarter of 2017 we recognized a benefit of $0.9 million resulting from lease-termination costs for stores that we closed in the fourth quarter of 2016, which costs were less than our previous accruals. As of January 28, 2017, we had $7.7 million in reserves remaining for future rent obligations, included in Other current liabilities on our Condensed Consolidated Balance Sheets. As of April 29, 2017, we had $4.2 million in reserves remaining after reducing the reserve by $3.5 million for rent payments and lease-termination costs during the first quarter of 2017.

Subsequent Events

Subsequent Events	3 Months Ended
	Apr. 29, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Franchise Reacquisitions In the second quarter of 2017 the Company began discussions and reached an agreement in principle with a franchisee pursuant to which the Company would reacquire a total of 14 franchised locations. The agreement in principle is subject to the negotiation, execution, and delivery by the Company and the franchisee of definitive agreements that would terminate the franchise agreements and sublease arrangements for the affected locations (except with respect to one location as to which the Company would either assume the lease or enter into a lease directly with the landlord). As of the end of the first quarter of 2017 the franchisee of the affected locations was the obligor on promissory notes payable to the Company with a carrying value, net of reserves, of $5.5 million . If the Company and the franchisee were to negotiate, execute, and deliver the necessary definitive agreements (the likelihood of which the Company is unable to predict with certainty), the Company expects that these transactions would be completed in the second quarter of 2017. If the transactions were completed, the Company expects that it would settle the carrying value of the promissory notes payable to the Company based on the terms and conditions of the definitive agreements. The Company could incur an additional loss with respect to the transactions to the extent that any negotiated cash payment or payments on the promissory notes payable plus the value of any reacquisition rights and the value of the furniture, fixtures, and equipment that the Company would acquire were less than $5.5 million . Store Closings In May 2017 the Company determined that it planned to close 22 stores ( 12 Hometown; 10 Outlet) prior to their lease terminations to continue in the Company's efforts to make the best use of capital and reduce costs. The closings are expected to result in a one-time charge of between $7.0 million and $9.0 million between the second and third quarters of 2017 for lease terminations and future rent obligations, inventory markdowns and write-offs, impairment of fixed assets, and other store-closing costs.

Background and Basis of Prese19

Background and Basis of Presentation (Policies)	3 Months Ended
	Apr. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation These unaudited Condensed Consolidated Financial Statements include the accounts of Sears Hometown and Outlet Stores, Inc. and its subsidiaries, all of which are wholly owned. These unaudited Condensed Consolidated Financial Statements do not include all of the information and footnotes required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the first quarter ended April 29, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year. These financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 (the "2016 10-K"). We operate through two segments--our Sears Hometown and Hardware segment ("Hometown") and our Sears Outlet segment ("Outlet"). Our first fiscal-quarter end is the Saturday closest to April 30 each year. Our fiscal-year end is the Saturday closest to January 31 each year. Reclassifications- certain amounts have been reclassified in order to conform to the current period presentation.
Variable Interest Entities and Consolidation	Variable Interest Entities and Consolidation The Financial Accounting Standards Board ("FASB") has issued guidance on variable interest entities and consolidation for determining whether an entity is a variable interest entity ("VIE") as well as the methods permitted for determining the primary beneficiary of a variable interest entity. In addition, this guidance requires ongoing reassessments as to whether a reporting company is the primary beneficiary of a variable interest entity and disclosures regarding the reporting company’s involvement with a variable interest entity. On an ongoing basis the Company evaluates its business relationships, such as those with its independent dealers, independent franchisees, and suppliers, to identify potential variable interest entities. Generally, these businesses either qualify for a scope exception under the consolidation guidance or, where a variable interest exists, the Company does not possess the power to direct the activities that most significantly impact the economic performance of these businesses. The Company has not consolidated any of such entities in the periods presented.
Fair Value of Financial Instruments	Fair Value of Financial Instruments We determine the fair value of financial instruments in accordance with standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value under GAAP. Under fair value measurement accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. We report the fair value of financial assets and liabilities based on the fair value hierarchy prescribed by accounting standards for fair value measurements, which prioritizes the inputs to valuation techniques used to measure fair value into three levels, as follows: Level 1 inputs —unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide ongoing pricing information. Level 2 inputs —inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable for the asset or liability, such as interest-rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risks, and default rates. Level 3 inputs —unobservable inputs for the asset or liability. Cash and cash equivalents, merchandise payables, accrued expenses (level 1), accounts and franchisee notes receivable, and short-term debt (level 2) are reflected in the Condensed Consolidated Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. For short-term debt, the variable interest rates are a significant input in our fair value assessments. The carrying value of long-term notes receivable approximates fair value. We measure certain non-financial assets and liabilities, including long-lived assets, at fair value on a nonrecurring basis. The Company was not required to measure any other significant non-financial asset or liability at fair value as of April 29, 2017.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Stock-based Compensation In March 2016, the FASB issued an accounting standards update (ASU) 2016-09, Topic 718 which makes several modifications to the accounting for employee share-based payment transactions, including the requirement to recognize the income tax effects of awards that vest or settle as income tax expense. This guidance also clarifies the presentation of certain components of share-based awards in the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company has adopted this pronouncement in the first quarter 2017, and the impact was not significant to the Condensed Consolidated Financial Statements. Leases In February 2016, the FASB issued ASU 2016-02, Topic 842 which replaces the current lease accounting standard. The update will require, among other items, lessees to recognize a right-of-use ("ROU") asset and a lease liability for most leases. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently evaluating the effect the update will have on our Condensed Consolidated Financial Statements. Upon adoption, the Company expects that the ROU asset and the lease liability will be recognized in the balance sheets in amounts that will be material. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Topic 606, which replaces the current revenue recognition standards. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update will be effective for the Company in the first quarter of 2018 and may be applied retrospectively for each period presented or as a cumulative-effect adjustment at the date of adoption. In May 2016, FASB issued another accounting standards update (ASU 2016-12, Topic 606), which amends certain aspects of the Board's revenue standard ASU 2014-09, "Revenue From Contracts With Customers". In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers. The update makes minor changes to the Board's new revenue guidance, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which was issued in May 2014. The technical corrections affect narrow aspects of the new revenue standard, including: loan guarantee fees, contract costs-impairment testing, contract costs - interaction of impairment testing with guidance in other topics, provisions for losses on construction-type and production-type contracts, scope of the new revenue standard, disclosure of remaining performance obligations, disclosure of prior-period performance obligations, a contract modification example, refund liability, advertising costs, fixed-odds wagering contracts in the casino industry, and cost capitalization for advisers to private and public funds. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by ASU 2014-09). The Company is evaluating the effect of adopting these new standards and has not yet determined the method by which the standards will be adopted. We have formed a committee to evaluate the effect of adopting these new standards, of which evaluation is in the initial stages. Classification of Certain Cash Flows Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Topic 230, which amended ASC 230. The update adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is a result of consensus reached by the FASB's Emerging Issues Task Force (EITF) on issues related to eight types of cash flows, including: 1) debt prepayment or debt extinguishment costs, 2) settlement of zero coupon bonds, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, 6) distributions received from equity-method investees, 7) beneficial interests in securitization transactions, and 8) separately identifiable cash flows and application of the predominance principle. The pronouncement becomes effective for fiscal years beginning after December 15, 2017 (which will be the Company's 2018 fiscal year) and interim periods within those fiscal years. We are currently evaluating the effect the update will have on our Condensed Consolidated Financial Statements and related disclosures. Business Combinations-Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Topic 805. The amendments in the update affect all reporting entities that must determine whether they have acquired or sold a business. The goal of the amendments was to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including: acquisitions, disposals, goodwill, and consolidation. The pronouncement is effective with respect to annual periods beginning after December 15, 2017, including interim periods within those periods. We are currently evaluating the effect the update will have on our Condensed Consolidated Financial Statements and related disclosures. Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05, Subtopic 610-20. The pronouncement clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of nonfinancial assets. The scope of Subtopic 610-20 (as originally issued in update 2014-09) included the derecognition of an in substance nonfinancial asset. Interpretation of the original update was uncertain since the term "in substance nonfinancial asset" was not well defined. Furthermore, under the original promulgation, there was a lack of clarity with respect to the accounting with partial sales of nonfinancial assets- whereby, for example, a seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. The issuance of ASU 2017-05 clarified terminology and provided greater instruction with respect to accounting treatment associated with partial sales of nonfinancial assets. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. We have evaluated the pronouncement with respect to first quarter 2017 business activity, and have determined the ASU is not applicable. While not relevant to the current period, the update will be reevaluated with respect to future business activity, which may trigger the ASU's guidance.

Accounts and Franchisee Recei20

Accounts and Franchisee Receivables and Other Assets (Tables)	3 Months Ended
	Apr. 29, 2017
Receivables [Abstract]
Schedule of Accounts and Franchisee Receivables and Other Assets	Accounts and franchisee receivables and other assets consist of the following: Thousands April 29, 2017 April 30, 2016 January 28, 2017 Short-term franchisee receivables $ 1,838 $ 2,197 $ 1,920 Miscellaneous receivables 9,943 9,985 10,475 Long-term franchisee receivables 17,129 21,302 18,406 Other assets 6,702 4,842 7,643 Allowance for losses on short-term franchisee receivables (1) (866 ) (1,221 ) (947 ) Allowance for losses on long-term franchisee receivables (1) (6,572 ) (9,413 ) (7,295 ) Total Accounts and franchisee receivables and other assets $ 28,174 $ 27,692 $ 30,202 (1) The Company recognizes an allowance for losses on franchisee receivables (which consist primarily of franchisee promissory notes) in an amount equal to estimated probable losses net of recoveries. The allowance is based on an analysis of expected future write-offs and existing economic conditions and an assessment of specific identifiable franchisee promissory notes and other franchisee receivables considered at risk or uncollectible. The expense associated with the allowance for losses on franchisee receivables is recognized as selling and administrative expense. Most of our franchisee promissory notes authorize us to deduct debt service from our commissions otherwise due and payable to the franchisees, and we routinely make those deductions to the extent of available commissions payable.

Allowance for Losses on Franc21

Allowance for Losses on Franchisee Receivables (Tables)	3 Months Ended
	Apr. 29, 2017
Receivables [Abstract]
Schedule of Allowance for Losses on Franchisee Receivables	The allowance for losses on franchisee receivables consists of the following: 13 Weeks Ended 13 Weeks Ended 52 Weeks Ended Thousands April 29, April 30, January 28, Allowance for losses on franchisee receivables, beginning of period $ 8,242 $ 12,141 $ 12,141 Provisions (recoveries) during the period 116 (232 ) (791 ) Write off of franchisee receivables against the allowance (920 ) (1,275 ) (3,383 ) Other — — 275 Allowance for losses on franchisee receivables, end of period $ 7,438 $ 10,634 $ 8,242

Other Current and Long-Term L22

Other Current and Long-Term Liabilities (Tables)	3 Months Ended
	Apr. 29, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Long-term Liabilities	Other current and long-term liabilities consist of the following: Thousands April 29, April 30, January 28, Customer deposits $ 20,417 $ 24,090 $ 19,943 Sales and other taxes 12,841 13,254 11,380 Accrued expenses 21,939 22,114 27,602 Payroll and related items 6,953 5,079 5,766 Severance and executive transition costs 4,219 1,156 7,659 Total Other current and long-term liabilities $ 66,369 $ 65,693 $ 72,350

Related Party Agreements and 23

Related Party Agreements and Transactions (Tables)	3 Months Ended
	Apr. 29, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table summarizes the results of the transactions with Sears Holdings reflected in the Company’s Condensed Consolidated Financial Statements: 13 Weeks Ended April 29, 2017 April 30, 2016 Thousands Net Commissions from Sears Holdings $ 17,397 $ 21,574 Purchases related to cost of sales and occupancy 264,530 313,534 Services included in selling and administrative expense 16,533 21,448

Summary of Segment Data (Tables

Summary of Segment Data (Tables)	3 Months Ended
	Apr. 29, 2017
Segment Reporting [Abstract]
Schedule of Segment Data	Sales categories include appliances, lawn and garden, tools and paint, and other (which includes initial franchise revenue). 13 Weeks Ended April 29, 2017 Thousands Hometown Outlet Total Net sales Appliances $ 197,726 $ 125,865 $ 323,591 Lawn and garden 63,563 5,595 69,158 Tools and paint 25,287 3,880 29,167 Other 10,638 15,679 26,317 Total 297,214 151,019 448,233 Costs and expenses Cost of sales and occupancy 229,874 124,604 354,478 Selling and administrative 74,417 36,464 110,881 Depreciation and amortization 855 1,349 2,204 Total 305,146 162,417 467,563 Operating loss $ (7,932 ) $ (11,398 ) $ (19,330 ) Total assets $ 320,074 $ 152,851 $ 472,925 Capital expenditures $ 1,255 $ 821 $ 2,076 13 Weeks Ended April 30, 2016 Thousands Hometown Outlet Total Net sales Appliances $ 230,934 $ 142,048 $ 372,982 Lawn and garden 78,417 4,688 83,105 Tools and paint 36,117 4,614 40,731 Other 21,111 19,052 40,163 Total 366,579 170,402 536,981 Costs and expenses Cost of sales and occupancy 284,138 136,652 420,790 Selling and administrative 80,853 37,139 117,992 Depreciation and amortization 1,569 1,688 3,257 Total 366,560 175,479 542,039 Operating income (loss) $ 19 $ (5,077 ) $ (5,058 ) Total assets $ 421,801 $ 209,245 $ 631,046 Capital expenditures $ 1,306 $ 984 $ 2,290

Loss Per Common Share (Tables)

Loss Per Common Share (Tables)	3 Months Ended
	Apr. 29, 2017
Earnings Per Share [Abstract]
Schedule of Income Per Share, Basic and Diluted	The following table sets forth the components used to calculate basic and diluted loss per common share attributable to our stockholders. 13 Weeks Ended 13 Weeks Ended April 29, 2017 April 30, 2016 Thousands except income per common share Basic weighted average shares 22,702 22,666 Diluted weighted average shares 22,702 22,666 Net loss $ (21,434 ) $ (3,570 ) Loss per common share: Basic $ (0.94 ) $ (0.16 ) Diluted $ (0.94 ) $ (0.16 )

Equity (Tables)

Equity (Tables)	3 Months Ended
	Apr. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Restricted Stock Award Activity	Changes during the first quarter of 2017 with respect to the 2015 Grant are noted below. 13 Weeks Ended April 29, 2017 (Shares in Thousands) Shares Weighted-Average Fair Value Per Share on Date of Grant Beginning of year balance 14 $ 9.38 Granted — — Vested — — Forfeited (14 ) 9.38 Balance at April 29, 2017 — $ —

Background and Basis of Prese27

Background and Basis of Presentation (Details)	3 Months Ended
	Apr. 29, 2017storesegmentstate
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of stores | store	1,012
Number of states in which the Company operates | state	50
Number of operating segments | segment	2

Accounts and Franchisee Recei28

Accounts and Franchisee Receivables and Other Assets (Details) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Receivables [Abstract]
Short-term franchisee receivables	$ 1,838	$ 1,920	$ 2,197
Miscellaneous receivables	9,943	10,475	9,985
Long-term franchisee receivables	17,129	18,406	21,302
Other assets	6,702	7,643	4,842
Allowance for losses on short-term franchisee receivables	(866)	(947)	(1,221)
Allowance for losses on long-term franchisee receivables	(6,572)	(7,295)	(9,413)
Total Accounts and franchisee receivables and other assets	$ 28,174	$ 30,202	$ 27,692

Allowance for Losses on Franc29

Allowance for Losses on Franchisee Receivables (Details) - Franchise Notes Receivable - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 29, 2017	Apr. 30, 2016	Jan. 28, 2017
Provision for Losses on Franchisee Receivables [Roll Forward]
Allowance for losses on franchisee receivables, beginning of period	$ 8,242	$ 12,141	$ 12,141
Provisions (recoveries) during the period	116	(232)	(791)
Write off of franchisee receivables against the allowance	(920)	(1,275)	(3,383)
Other	0	0	275
Allowance for losses on franchisee receivables, end of period	$ 7,438	$ 10,634	$ 8,242

Other Current and Long-Term L30

Other Current and Long-Term Liabilities (Details) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Payables and Accruals [Abstract]
Customer deposits	$ 20,417	$ 19,943	$ 24,090
Sales and other taxes	12,841	11,380	13,254
Accrued expenses	21,939	27,602	22,114
Payroll and related items	6,953	5,766	5,079
Severance and executive transition costs	4,219	7,659	1,156
Total Other current and long-term liabilities	$ 66,369	$ 72,350	$ 65,693

Related Party Agreements and 31

Related Party Agreements and Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Related Party Transaction [Line Items]
Invoice payment term	3 days
ESL
Related Party Transaction [Line Items]
Beneficial interest acquired by related party, percentage	57.00%
Sears Holdings Corporation
Related Party Transaction [Line Items]
Maximum percentage of royalty rates	6.00%
Net Commissions from Sears Holdings	$ 17,397	$ 21,574
Purchases related to cost of sales and occupancy	264,530	313,534
Services included in selling and administrative expense	$ 16,533	21,448
Invoice payment term	10 days
Financial benefit	$ 600
Seritage Growth Properties
Related Party Transaction [Line Items]
Occupancy payments	$ 300	$ 200
Sears Holdings | ESL
Related Party Transaction [Line Items]
Beneficial interest acquired by related party, percentage	59.00%
Payments for Merchandise Inventory to Related Party | Sears Holdings Corporation
Related Party Transaction [Line Items]
Early payment discount percentage	3700.00%

Financing Arrangements (Details

Financing Arrangements (Details)	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2012USD ($)	Apr. 29, 2017USD ($)	Apr. 30, 2016	Jan. 28, 2017USD ($)	Nov. 01, 2016USD ($)
Debt Instrument [Line Items]
Increases in aggregate principal		$ 100,000,000
Payments for refinancing fees				$ 5,400,000
Remaining payments for refinancing fees		4,900,000
Amount outstanding		$ 93,700,000
Invoice payment term		3 days
Maximum amount to declare and pay cash dividends and repurchase of stock, per fiscal year		$ 37.5
Maximum amount to declare and pay cash dividends and repurchase of stock, aggregate amount		$ 75,000,000
Covenant, fixed charge coverage ratio		1.1
LIBOR
Debt Instrument [Line Items]
Blended interest rate		4.19%
Base Rate
Debt Instrument [Line Items]
Blended interest rate		6.19%
Senior ABL Facility
Debt Instrument [Line Items]
Aggregate maximum borrowings	$ 250,000,000				$ 250,000,000
Increases in aggregate principal	$ 100,000,000
Remaining borrowing capacity		$ 115,200,000
Credit facility borrowings increase		30,000,000
Senior ABL Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			2.44%
Senior ABL Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			4.50%
Senior ABL Facility Extended Commitments
Debt Instrument [Line Items]
Aggregate maximum borrowings					170,000,000
Senior ABL Facility Non-Extended Commitments
Debt Instrument [Line Items]
Aggregate maximum borrowings					$ 80,000,000
Swingline Loans
Debt Instrument [Line Items]
Aggregate maximum borrowings		25,000,000
Letter of Credit
Debt Instrument [Line Items]
Aggregate maximum borrowings		75,000,000
Letter of Credit | Senior ABL Facility
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 6,100,000
Sears Holdings Corporation
Debt Instrument [Line Items]
Invoice payment term		10 days
Sears Holdings Corporation | Payments for Merchandise Inventory to Related Party
Debt Instrument [Line Items]
Early payment discount percentage		3700.00%
Minimum | Senior ABL Facility Extended Commitments | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		3.50%
Minimum | Senior ABL Facility Extended Commitments | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		2.50%
Minimum | Senior ABL Facility Non-Extended Commitments | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Minimum | Senior ABL Facility Non-Extended Commitments | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Maximum | Senior ABL Facility Extended Commitments | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		4.50%
Maximum | Senior ABL Facility Extended Commitments | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		3.50%
Maximum | Senior ABL Facility Non-Extended Commitments | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.50%
Maximum | Senior ABL Facility Non-Extended Commitments | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1.50%
Debt Covenant Requirement 1
Debt Instrument [Line Items]
Covenant, maximum percentage of Loan Cap		25.00%
Covenant, component of aggregate commitment calculation		$ 50,000,000
Covenant Requirement 2
Debt Instrument [Line Items]
Covenant, maximum percentage of Loan Cap		50.00%
Covenant, component of aggregate commitment calculation		$ 100,000,000

Summary of Segment Data (Detail

Summary of Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016	Jan. 28, 2017
Segment Reporting Information [Line Items]
Net sales	$ 448,233	$ 536,981
Cost of sales and occupancy	354,478	420,790
Selling and administrative	110,881	117,992
Depreciation and amortization	2,204	3,257
Total costs and expenses	467,563	542,039
Operating loss	(19,330)	(5,058)
Total assets	472,925	631,046	$ 468,426
Capital expenditures	2,076	2,290
Appliances
Segment Reporting Information [Line Items]
Net sales	323,591	372,982
Lawn and garden
Segment Reporting Information [Line Items]
Net sales	69,158	83,105
Tools and paint
Segment Reporting Information [Line Items]
Net sales	29,167	40,731
Other
Segment Reporting Information [Line Items]
Net sales	26,317	40,163
Hometown
Segment Reporting Information [Line Items]
Net sales	297,214	366,579
Cost of sales and occupancy	229,874	284,138
Selling and administrative	74,417	80,853
Depreciation and amortization	855	1,569
Total costs and expenses	305,146	366,560
Operating loss	(7,932)	19
Total assets	320,074	421,801
Capital expenditures	1,255	1,306
Hometown | Appliances
Segment Reporting Information [Line Items]
Net sales	197,726	230,934
Hometown | Lawn and garden
Segment Reporting Information [Line Items]
Net sales	63,563	78,417
Hometown | Tools and paint
Segment Reporting Information [Line Items]
Net sales	25,287	36,117
Hometown | Other
Segment Reporting Information [Line Items]
Net sales	10,638	21,111
Outlet
Segment Reporting Information [Line Items]
Net sales	151,019	170,402
Cost of sales and occupancy	124,604	136,652
Selling and administrative	36,464	37,139
Depreciation and amortization	1,349	1,688
Total costs and expenses	162,417	175,479
Operating loss	(11,398)	(5,077)
Total assets	152,851	209,245
Capital expenditures	821	984
Outlet | Appliances
Segment Reporting Information [Line Items]
Net sales	125,865	142,048
Outlet | Lawn and garden
Segment Reporting Information [Line Items]
Net sales	5,595	4,688
Outlet | Tools and paint
Segment Reporting Information [Line Items]
Net sales	3,880	4,614
Outlet | Other
Segment Reporting Information [Line Items]
Net sales	$ 15,679	$ 19,052

Loss Per Common Share (Details)

Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Earnings Per Share [Abstract]
Basic weighted average shares (in shares)	22,702	22,666
Diluted weighted average shares (in shares)	22,702	22,666
Net loss	$ (21,434)	$ (3,570)
Loss per common share:
Basic (in dollars per share)	$ (0.94)	$ (0.16)
Diluted (in dollars per share)	$ (0.94)	$ (0.16)

Equity (Narrative) (Details)

Equity (Narrative) (Details) - USD ($)	May 16, 2016	Apr. 29, 2017	Jan. 30, 2016	Apr. 29, 2017	Apr. 29, 2017	Oct. 29, 2016	Aug. 28, 2013
Stock-based Compensation
Shares reserved under plan (in shares)		4,000,000		4,000,000	4,000,000
Share Repurchase Program
Authorized amount							$ 25,000,000
Stock repurchased during period (in shares)		0
Remaining authorized repurchase amount		$ 12,500,000		$ 12,500,000	$ 12,500,000
Restricted Stock
Stock-based Compensation
Stock granted (in shares)			14,000		89,221
Forfeited in period (in shares)	52,691
Vested (in shares)	36,530	0
Forfeited (in shares)		14,000
Nonvested (in shares)		314,839		314,839	314,839
Share-based compensation expense		$ 100,000
Total unrecognized compensation		$ 800,000		$ 800,000	$ 800,000
Compensation to be recognized term		2 years 6 months
Restricted Stock Units (RSUs)
Stock-based Compensation
Nonvested (in shares)		189,455		189,455	189,455	125,384
Share-based Compensation Award, Tranche One | Restricted Stock Units (RSUs)
Stock-based Compensation
Vesting installment percentage		33.00%
Share-based Compensation Award, Tranche Two | Restricted Stock Units (RSUs)
Stock-based Compensation
Vesting installment percentage		33.00%
Share-based Compensation Award, Tranche Three | Restricted Stock Units (RSUs)
Stock-based Compensation
Vesting installment percentage		33.00%
Amended and Restated 2012 Stock Plan (the 'Plan') | Restricted Stock Units (RSUs)
Stock-based Compensation
Stock granted (in shares)		222,788	159,475
Forfeited in period (in shares)		33,333		34,091

Equity (Restricted Stock Awards

Equity (Restricted Stock Awards) (Details) - Restricted Stock - $ / shares	May 16, 2016	Apr. 29, 2017
Shares
Beginning of year balance (in shares)		14,000
Granted (in shares)		0
Vested (in shares)	(36,530)	0
Forfeited (in shares)		(14,000)
Balance at end of period (in shares)		0
Weighted-Average Fair Value on Date of Grant
Beginning of year balance (in dollars per share)		$ 9.38
Granted (in dollars per share)		0
Vested (in dollars per share)		0
Forfeited (in dollars per share)		9.38
Balance at end of period (in dollars per share)		$ 0

Accelerated Closure of Underp37

Accelerated Closure of Underperforming Stores (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring benefit recognized	$ 900
Restructuring reserves	4,219	$ 7,659	$ 1,156
Reduction of reserve for rent payments and lease-termination costs	3,500
Other Current Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring reserves	$ 4,200	$ 7,700

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	Jul. 29, 2017location	May 31, 2017USD ($)store	Apr. 29, 2017USD ($)store
Subsequent Event [Line Items]
Number of stores			1,012
Subsequent Event
Subsequent Event [Line Items]
Expected number of franchise locations to reacquired | location	14
Franchise Notes Receivable
Subsequent Event [Line Items]
Net financing receivable | $			$ 5.5
May 2017 Store Closings | Minimum | Subsequent Event
Subsequent Event [Line Items]
One-time closing charges | $		$ 7
May 2017 Store Closings | Maximum | Subsequent Event
Subsequent Event [Line Items]
One-time closing charges | $		$ 9
May 2017 Store Closings | Facility Closing | Subsequent Event
Subsequent Event [Line Items]
Number of stores		22
May 2017 Store Closings | Hometown | Facility Closing | Subsequent Event
Subsequent Event [Line Items]
Number of stores		12
May 2017 Store Closings | Outlet | Facility Closing | Subsequent Event
Subsequent Event [Line Items]
Number of stores		10