Sears Hometown & Outlet Stores (SHOS) 10-Q/A 8 Sep 17 2017 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 29, 2017	Sep. 05, 2017
Document and Entity Information [Abstract]
Document Type	10-Q/A
Amendment Flag	true
Amendment Description	To revise the closed store reserve rollforward table in Note 12.
Document Period End Date	Jul. 29, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Income Statement [Abstract]
NET SALES	$ 489,985	$ 556,388	$ 938,218	$ 1,093,369
COSTS AND EXPENSES
Cost of sales and occupancy	397,637	441,508	752,115	862,298
Selling and administrative	115,208	118,808	226,089	236,800
Depreciation and amortization	4,704	3,293	6,908	6,550
Gain on sale of assets	0	(25,269)	0	(25,269)
Total costs and expenses	517,549	538,340	985,112	1,080,379
Operating (loss) income	(27,564)	18,048	(46,894)	12,990
Interest expense	(1,874)	(886)	(3,465)	(1,652)
Other income	231	378	550	775
(Loss) earnings before income taxes	(29,207)	17,540	(49,809)	12,113
Income tax expense	(239)	(6,898)	(1,071)	(5,042)
NET (LOSS) INCOME	$ (29,446)	$ 10,642	$ (50,880)	$ 7,071
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS
Basic (in dollars per share)	$ (1.30)	$ 0.47	$ (2.24)	$ 0.31
Diluted (in dollars per share)	$ (1.30)	$ 0.47	$ (2.24)	$ 0.31
Basic weighted average common shares outstanding (in shares)	22,702	22,696	22,702	22,681
Diluted weighted average common shares outstanding (in shares)	22,702	22,699	22,702	22,682

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 29, 2017	Jan. 28, 2017	Jul. 30, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 18,287	$ 14,104	$ 18,690
Accounts and franchisee receivables, net	10,920	11,448	17,017
Merchandise inventories	356,893	373,815	427,234
Prepaid expenses and other current assets	9,995	9,370	18,562
Total current assets	396,095	408,737	481,503
PROPERTY AND EQUIPMENT, net	39,236	40,935	50,898
LONG-TERM DEFERRED TAXES	0	0	74,984
OTHER ASSETS, net	11,112	18,754	15,493
TOTAL ASSETS	446,443	468,426	622,878
CURRENT LIABILITIES
Short-term borrowings	112,400	26,800	70,400
Payable to Sears Holdings Corporation	24,764	80,724	34,868
Accounts payable	11,408	17,853	38,418
Other current liabilities	75,777	70,377	66,667
Total current liabilities	224,349	195,754	210,353
OTHER LONG-TERM LIABILITIES	2,378	1,973	2,868
TOTAL LIABILITIES	226,727	197,727	213,221
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS' EQUITY
TOTAL STOCKHOLDERS' EQUITY	219,716	270,699	409,657
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 446,443	$ 468,426	$ 622,878

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (50,880)	$ 7,071
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	6,908	6,550
Share-based compensation	(103)	77
Deferred income taxes	0	4,158
Gain on sale of assets	0	(25,269)
Provision for losses on franchisee receivables	5,701	(483)
Change in operating assets and liabilities:
Accounts and franchisee receivables	676	(4,165)
Merchandise inventories	16,922	7,612
Payable to Sears Holdings Corporation	(55,960)	(19,258)
Accounts payable	(6,445)	(1,344)
Closing store accrual	1,714	105
Other operating assets and liabilities, net	4,781	3,725
Net cash used in operating activities	(76,686)	(21,221)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of assets	0	26,073
Purchases of property and equipment	(4,641)	(6,838)
Net cash (used in) provided by investing activities	(4,641)	19,235
CASH FLOWS FROM FINANCING ACTIVITIES
Net short-term borrowings	85,600	2,100
Net (payments) borrowings of capital lease obligations	(90)	332
Net cash provided by financing activities	85,510	2,432
NET CHANGE IN CASH AND CASH EQUIVALENTS	4,183	446
CASH AND CASH EQUIVALENTS—Beginning of period	14,104	18,244
CASH AND CASH EQUIVALENTS—End of period	18,287	18,690
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	3,480	1,678
Cash paid (refunded) for income taxes	$ 572	$ (1,845)

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) income	7,071			7,071
Share-based compensation	77		77
Share-based compensation (in shares)		(6)
Ending balance at Jul. 30, 2016	409,657	$ 227	555,449	(146,019)
Ending balance (in shares) at Jul. 30, 2016		22,716
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) income	(50,880)			(50,880)
Share-based compensation	(103)		(103)
Share-based compensation (in shares)		(14)
Ending balance at Jul. 29, 2017	$ 219,716	$ 227	$ 555,378	$ (335,889)
Ending balance (in shares) at Jul. 29, 2017		22,702

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jul. 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 July 29, 2017 the Company or its dealers and franchisees operated a total of 932 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 13 and 26 weeks ended July 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 segment ("Hometown") and our Sears Outlet segment ("Outlet"). Our second fiscal-quarter end is the Saturday closest to July 31 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 July 29, 2017 . Recent Accounting Pronouncements ASU 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of Business" In January 2017, the FASB issued ASU No. 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of Business" . This ASU is meant to clarify the definition of a business to add guidance when determining when an acquisition or disposal should be accounted for as a sale of assets or business. This ASU provides a more robust framework to use in determining when a set of assets or activities should be classified as a business, providing more consistency in accounting for business or asset acquisitions. This ASU is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those periods. The ASU will be applied prospectively. ASU 2016-15 "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments" In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". This ASU reduces the diversity in reporting of eight specific cash flow issues due to accounting guidance that is unclear or does not exist. The eight issues relate to certain debt activities, business combination activities, insurance settlements and other various activities. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and is to be applied retrospectively using a transition method for each period presented. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This amendment created a new Topic under the accounting standards codification to account for the provisions of the ASU. This amendment is meant to provide transparency and to improve comparability between entities. The ASU requires companies to record an asset and liability on the balance sheet for leases that were formerly designated as operating leases as well as leases designated as financing leases. The provisions of the ASU predominately change the recognition of leases for lessees, but the provisions do not substantially change the accounting for lessors. This ASU will supersede the provisions of Topic 840 Leases. The liability recorded for a lease is generally intended to recognize the present value of lease payments and the asset as a right to use the underlying asset for the lease, including optional periods if it is reasonably certain the option will be exercised. If a lease term is less than twelve months, a company is allowed to elect not to record the asset and liability. Expense related to these leases are to be amortized straight-line over the expected term of the lease. Additionally, the provisions of this ASU provide additional guidance on separating lease terms from maintenance and other type of provisions that provide a good or service, accounting for sale-leaseback provisions, and leveraged leases. These updates are required to be applied under a modified retrospective approach from the beginning of the earlier period presented. The modified approach provides optional practical expedients that may be elected, which will allow companies to continue to account for leases under the previous guidance for leases that commenced prior to the effective date. Reporting in the cash flow statement remains virtually unchanged. Additional qualitative and quantitative disclosures are required. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those periods. Early adoption is allowed. We have just commenced the process for evaluating the impact of this ASU on our financial statements, and therefore it's impact has not yet been determined. However, upon adoption, we expect that the right of use asset and the lease liability will be recognized in the balance sheets in amounts that will be material. ASU 2014-09 , "Revenue from Contracts with Customers (Topic 606)" In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The new revenue recognition guidance more closely aligns U.S. GAAP with International Financial Reporting Standards ("IFRS"). The core principle of the guidance 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. In August 2015, the FASB issued ASU 2015-14: Accounting for Revenue from Contracts with Customers (Topic 606) " The amended guidance deferred the effective date of ASU 2014-9 to annual periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods within those fiscal years. In addition, four other ASUs have been issued amending and clarifying ASU 2014-09 and must be adopted concurrently. • ASU 2016-08 "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) • ASU 2016-10 "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing" • ASU 2016-12 "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients" • ASU 2016-20 "Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements" This update can either be applied under a cumulative effect or retrospective method. We are in the process of reviewing customer contracts and agreements to determine the potential effects of the standard based on our revenue streams and current revenue recognition practices. Following review of customer contracts and agreements, we will summarize contract terms, reference the findings to the applicable new guidance, determine the financial statement impact, and then update policies and controls to ensure application of the new provisions will be applied consistently throughout the Company. As we are still in the process of completing our full assessment of the impact expected from adoption of this standard, we have not yet determined the materiality of the resulting differences in the timing of revenue recognition. The Company expects to adopt the provisions of this standard using the modified retrospective approach, which requires a cumulative effect adjustment to the opening balance of retained earnings on the date of adoption. The Company will adopt ASU 2014-09 effective February 4, 2018.

Accounts and Franchisee Receiva

Accounts and Franchisee Receivables and Other Assets	6 Months Ended
	Jul. 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 July 29, 2017 July 30, 2016 January 28, 2017 Short-term franchisee receivables $ 1,584 $ 2,262 $ 1,920 Miscellaneous receivables 10,363 16,018 10,475 Long-term franchisee receivables 11,260 20,971 18,406 Other assets 5,851 3,822 7,643 Allowance for losses on short-term franchisee receivables (1) (1,027 ) (1,263 ) (947 ) Allowance for losses on long-term franchisee receivables (1) (5,999 ) (9,300 ) (7,295 ) Net accounts and franchisee receivables and other assets $ 22,032 $ 32,510 $ 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	6 Months Ended
	Jul. 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 as of: 26 Weeks Ended Thousands July 29, 2017 July 30, 2016 Allowance for losses on franchisee receivables, beginning of period $ 8,242 $ 12,141 Provisions (recoveries) during the period 5,701 (483 ) Write off of franchisee receivables against the allowance (6,917 ) (1,220 ) Other — 125 Allowance for losses on franchisee receivables, end of period $ 7,026 $ 10,563 During the 13 weeks ended July 29, 2017, the Company and a franchisee entered into agreements that terminated all of the franchisee's franchise agreements and sublease arrangements for 14 franchised 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). The agreements provided that the franchisee transferred ownership of all assets, management of stores, and certain rights to property leases (in one instance pursuant to an Occupancy Agreement). The assets the Company purchased included all store furniture, fixtures, and equipment. As of the transaction date, the franchisee was the obligor on promissory notes to the Company with a total carrying value, net of reserves, of $5.5 million . As part of the transaction, the Company waived the remaining unpaid principal on these promissory notes and received a new promissory note from the franchisee in the amount of $1.5 million , which is payable in installments through December 11, 2022. During the 13 weeks ended July 29, 2017, the Company recognized a loss of $5.5 million on the transaction.

Other Current and Long-Term Lia

Other Current and Long-Term Liabilities	6 Months Ended
	Jul. 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 July 29, 2017 July 30, 2016 January 28, 2017 Customer deposits $ 19,645 $ 25,350 $ 19,943 Sales and other taxes 11,256 11,753 11,380 Accrued expenses 30,923 26,335 27,602 Payroll and related items 6,958 5,203 5,766 Store closing costs 9,373 894 7,659 Total Other current and long-term liabilities $ 78,155 $ 69,535 $ 72,350

Income Taxes

Income Taxes	6 Months Ended
	Jul. 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 and 26 Weeks ended July 29, 2017 and July 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 future income. 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 one state 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	6 Months Ended
	Jul. 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 49% of Sears Holdings' outstanding shares of common stock (the latter percentage amount excludes 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 (and in some circumstances, its subsidiaries) 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 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 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 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Thousands Net Commissions from Sears Holdings $ 18,448 $ 22,818 $ 35,485 $ 44,392 Purchases related to cost of sales and occupancy 268,584 302,554 533,114 616,088 Services included in selling and administrative expense 17,370 18,864 33,903 40,312 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. In accordance with the SHO–Sears Holdings Agreements and at the request of Sears Holdings, the Company can pay invoices on two or three -day terms and receive a deduction on invoices for early–payment discounts of 37 to 43 basis points, respectively. 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 accelerated terms, net of incremental interest expense, results in a net financial benefit to the Company. During 2017, the Company paid most invoices on either two or three –day terms and received discounts of $1.4 million and $2.0 million , for the 13 and 26 weeks ended July 29, 2017, respectively, which is reflected in the Condensed Consolidated Statements of Operations. During 2016, the Company began paying invoices on accelerated terms on May 1, 2016 and received discounts of $1.0 million during both the 13 and 26 weeks ended July 30, 2016, which is reflected in the Condensed Consolidated Statements of Operations. We recorded real estate occupancy payments of $0.3 million and $0.6 million for the 13 and 26 weeks ended July 29, 2017, respectively, and $0.2 million and $0.4 million for the 13 and 26 weeks ended July 30, 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	6 Months Ended
	Jul. 29, 2017
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	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 and its primary operating subsidiaries, 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 Senior ABL Facility. Costs related to and incurred for the November 1, 2016 refinancing totaled approximately $5.4 million , of which $4.4 million is remaining and is included in Prepaid and Other current assets on the Condensed Consolidated Balance Sheet as of July 29, 2017 and is being amortized over the remaining term of the Senior ABL Facility. As of July 29, 2017 we had $112.4 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 July 29, 2017 was $86.8 million , with $6.1 million of letters of credit outstanding under the facility. If the Non-Extended Revolving Credit Commitments had matured prior to the end of the second quarter of 2017, our availability under the Senior ABL Facility would have been approximately $52 million as of July 29, 2017. In the first quarter of 2017, we resumed our agreement with Sears Holdings whereby SHO paid Sears Holdings' invoices for merchandise and services on accelerated terms in exchange for a 37 to 43 basis-point cash discount depending on the number of days we paid before the invoice due date. The Senior ABL Facility borrowings increased by approximately $23 million as of July 29, 2017, as a result of our accelerated payments. The discounts we received for the accelerated payments, less the incremental interest expense, resulted in a net financial benefit to the Company. During 2017, the Company paid most invoices on either two or three –day terms and received discounts totaling $1.4 million and $2.0 million for the 13 and 26 weeks ended July 29, 2017, respectively, which are reflected in the Condensed Consolidated Statements of Operations. During 2016, the Company began paying invoices on accelerated terms on May 1, 2016 and received discounts totaling $1.0 million during both the 13 and 26 weeks ended July 30, 2016, which are reflected in the Condensed Consolidated Statements of Operations. 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 4.52% at July 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 6.52% at July 29, 2017 ), and in each case based on availability under the Senior ABL Facility. 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 (which has not occurred), 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 to repurchase its common stock. The Senior ABL Facility would not have permitted us to pay cash dividends or repurchase our common stock as of July 29, 2017. The Senior ABL Facility also contains affirmative covenants, including financial and other reporting requirements. As of July 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, failure to enforce a Material Contract in accordance with its terms, or termination by Sears Holdings of specified “Separation Agreements” (which include specified SHO-Sears Holdings Agreements).

Summary of Segment Data

Summary of Segment Data	6 Months Ended
	Jul. 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 July 29, 2017 Thousands Hometown Outlet Total Net sales Appliances $ 222,513 $ 116,655 $ 339,168 Lawn and garden 81,237 5,697 86,934 Tools and paint 24,536 3,386 27,922 Other 19,354 16,607 35,961 Total 347,640 142,345 489,985 Costs and expenses Cost of sales and occupancy 280,126 117,511 397,637 Selling and administrative 75,759 39,449 115,208 Depreciation and amortization 1,890 2,814 4,704 Total 357,775 159,774 517,549 Operating loss $ (10,135 ) $ (17,429 ) $ (27,564 ) Total assets $ 297,553 $ 148,890 $ 446,443 Capital expenditures $ 1,096 $ 1,469 $ 2,565 13 Weeks Ended July 30, 2016 Thousands Hometown Outlet Total Net sales Appliances $ 259,446 $ 129,719 $ 389,165 Lawn and garden 91,196 6,871 98,067 Tools and paint 31,369 4,355 35,724 Other 14,603 18,829 33,432 Total 396,614 159,774 556,388 Costs and expenses Cost of sales and occupancy 313,231 128,277 441,508 Selling and administrative 83,554 35,254 118,808 Depreciation and amortization 1,507 1,786 3,293 Gain on sale of asset — (25,269 ) (25,269 ) Total 398,292 140,048 538,340 Operating income (loss) $ (1,678 ) $ 19,726 $ 18,048 Total assets $ 415,501 $ 207,377 $ 622,878 Capital expenditures $ 3,268 $ 1,280 $ 4,548 26 Weeks Ended July 29, 2017 Thousands Hometown Outlet Total Net sales Appliances $ 420,239 $ 242,520 662,759 Lawn and garden 144,800 11,292 156,092 Tools and paint 49,823 7,266 57,089 Other 29,992 32,286 62,278 Total 644,854 293,364 938,218 Costs and expenses Cost of sales and occupancy 510,000 242,115 752,115 Selling and administrative 150,176 75,913 226,089 Depreciation and amortization 2,745 4,163 6,908 Total 662,921 322,191 985,112 Operating loss $ (18,067 ) $ (28,827 ) $ (46,894 ) Total assets $ 297,553 $ 148,890 $ 446,443 Capital expenditures $ 2,351 $ 2,290 $ 4,641 26 Weeks Ended July 30, 2016 Thousands Hometown Outlet Total Net sales Appliances $ 490,380 $ 271,767 $ 762,147 Lawn and garden 169,613 11,559 181,172 Tools and paint 67,486 8,969 76,455 Other 35,714 37,881 73,595 Total 763,193 330,176 1,093,369 Costs and expenses Cost of sales and occupancy 597,369 264,929 862,298 Selling and administrative 164,407 72,393 236,800 Depreciation and amortization 3,076 3,474 6,550 Gain on the sale of assets — (25,269 ) (25,269 ) Total 764,852 315,527 1,080,379 Operating income (loss) $ (1,659 ) $ 14,649 $ 12,990 Total assets $ 415,501 $ 207,377 $ 622,878 Capital expenditures $ 4,574 $ 2,264 $ 6,838

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 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) Earnings Per Common Shar

(Loss) Earnings Per Common Share	6 Months Ended
	Jul. 29, 2017
Earnings Per Share [Abstract]
(LOSS) EARNINGS PER COMMON SHARE	(LOSS) EARNINGS PER COMMON SHARE Basic earnings per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for each period. Diluted income per common share also includes the dilutive effect of potential common shares. 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 share attributable to our stockholders. 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Thousands except income per common share Basic weighted average shares 22,702 22,696 22,702 22,681 Diluted weighted average shares 22,702 22,699 22,702 22,682 Net (loss) income $ (29,446 ) $ 10,642 $ (50,880 ) $ 7,071 (Loss) income per common share: Basic $ (1.30 ) $ 0.47 $ (2.24 ) $ 0.31 Diluted $ (1.30 ) $ 0.47 $ (2.24 ) $ 0.31 For the 13 and 26 weeks ended July 30, 2016, 14,000 unvested shares of restricted stock were excluded from the computation of diluted earnings per share due to the anti-dilutive effect of the unvested shares.

Equity

Equity	6 Months Ended
	Jul. 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 July 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 July 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 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 26 weeks ended July 29, 2017, we recorded $0.1 million in total compensation income for 314,839 stock units. At July 29, 2017 we had $0.8 million in total unrecognized compensation cost related to the remaining unvested stock units, which we expect to recognize over the next approximately 2.5 years. Changes during 2017 with respect to the 2015 Grant are noted below. 26 Weeks Ended July 29, 2017 (Shares in Thousands) Shares Weighted-Average Fair Value Per Share on Date of Grant Balance at January 28, 2017 14 $ 9.38 Granted — — Vested — — Forfeited (14 ) 9.38 Balance at July 29, 2017 — $ — Share Repurchase Program During 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 and 26 weeks ended July 29, 2017 . At July 29, 2017 , we had approximately $12.5 million of remaining authorization under the repurchase program.

Store Closing Charges

Store Closing Charges	6 Months Ended
	Jul. 29, 2017
Restructuring and Related Activities [Abstract]
STORE CLOSING CHARGES	STORE CLOSING CHARGES Closed Store Charges We continue to take proactive steps to make the best use of capital by closing unprofitable stores. The Company closed 70 and 79 Hometown store locations during the 13 and 26 weeks ended July 29, 2017, respectively. In addition, the Company closed 11 and 12 Outlet store locations during the 13 and 26 weeks ended July 29, 2017, respectively. In accordance with accounting standards governing costs associated with exit or disposal activities, expenses related to future rent payments for which we no longer expect to receive any economic benefit are accrued as of when we ceased to use the leased space and have been reduced for estimated sublease income. Store closing costs for the 13 and 26 weeks ended July 29, 2017 were as follows: Thousands Lease Termination Costs (1) Inventory Related (1) Impairment and Accelerated Depreciation (2) Other Charges (3) Total Store Closing Costs 13 weeks ended July 29, 2017 $ 9,397 $ 1,796 $ 979 $ 386 $ 12,558 Thousands Lease Termination Costs (1) Inventory Related (1) Impairment and Accelerated Depreciation (2) Other Charges (3) Total Store Closing Costs 26 weeks ended July 29, 2017 $ 8,447 $ 1,796 $ 979 $ 386 $ 11,608 (1) Recorded within cost of sales and occupancy in the Condensed Consolidated Statements of Operations. Lease termination costs are net of estimated sublease income, and include the reversal of closed store reserves when a lease agreement is terminated for an amount less than the remaining reserve established for the store. (2) Recorded within depreciation and amortization in the Condensed Consolidated Statements of Operations. (3) Recorded within selling and administrative in the Condensed Consolidated Statements of Operations. Closed Store Reserve Store closing reserves at July 29, 2017 and January 28, 2017 are shown in the table below. Store closing reserves of $9.4 million , $0.8 million , and $7.7 million are included within other current liabilities in the Condensed Consolidated Balance Sheets at July 29, 2017, July 30, 2016 and January 28, 2017, respectively. Thousands Total Balance at January 28, 2017 $ 7,659 Store closing benefit (950 ) Payments/utilization (2,490 ) Balance at April 29, 2017 $ 4,219 Store closing costs 9,783 Payments/utilization (4,629 ) Balance at July 29, 2017 $ 9,373

Background and Basis of Prese18

Background and Basis of Presentation (Policies)	6 Months Ended
	Jul. 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 13 and 26 weeks ended July 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 segment ("Hometown") and our Sears Outlet segment ("Outlet"). Our second fiscal-quarter end is the Saturday closest to July 31 each year. Our fiscal-year end is the Saturday closest to January 31 each year.
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 July 29, 2017 .
Recent Accounting Pronouncements	Recent Accounting Pronouncements ASU 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of Business" In January 2017, the FASB issued ASU No. 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of Business" . This ASU is meant to clarify the definition of a business to add guidance when determining when an acquisition or disposal should be accounted for as a sale of assets or business. This ASU provides a more robust framework to use in determining when a set of assets or activities should be classified as a business, providing more consistency in accounting for business or asset acquisitions. This ASU is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those periods. The ASU will be applied prospectively. ASU 2016-15 "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments" In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". This ASU reduces the diversity in reporting of eight specific cash flow issues due to accounting guidance that is unclear or does not exist. The eight issues relate to certain debt activities, business combination activities, insurance settlements and other various activities. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and is to be applied retrospectively using a transition method for each period presented. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This amendment created a new Topic under the accounting standards codification to account for the provisions of the ASU. This amendment is meant to provide transparency and to improve comparability between entities. The ASU requires companies to record an asset and liability on the balance sheet for leases that were formerly designated as operating leases as well as leases designated as financing leases. The provisions of the ASU predominately change the recognition of leases for lessees, but the provisions do not substantially change the accounting for lessors. This ASU will supersede the provisions of Topic 840 Leases. The liability recorded for a lease is generally intended to recognize the present value of lease payments and the asset as a right to use the underlying asset for the lease, including optional periods if it is reasonably certain the option will be exercised. If a lease term is less than twelve months, a company is allowed to elect not to record the asset and liability. Expense related to these leases are to be amortized straight-line over the expected term of the lease. Additionally, the provisions of this ASU provide additional guidance on separating lease terms from maintenance and other type of provisions that provide a good or service, accounting for sale-leaseback provisions, and leveraged leases. These updates are required to be applied under a modified retrospective approach from the beginning of the earlier period presented. The modified approach provides optional practical expedients that may be elected, which will allow companies to continue to account for leases under the previous guidance for leases that commenced prior to the effective date. Reporting in the cash flow statement remains virtually unchanged. Additional qualitative and quantitative disclosures are required. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those periods. Early adoption is allowed. We have just commenced the process for evaluating the impact of this ASU on our financial statements, and therefore it's impact has not yet been determined. However, upon adoption, we expect that the right of use asset and the lease liability will be recognized in the balance sheets in amounts that will be material. ASU 2014-09 , "Revenue from Contracts with Customers (Topic 606)" In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The new revenue recognition guidance more closely aligns U.S. GAAP with International Financial Reporting Standards ("IFRS"). The core principle of the guidance 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. In August 2015, the FASB issued ASU 2015-14: Accounting for Revenue from Contracts with Customers (Topic 606) " The amended guidance deferred the effective date of ASU 2014-9 to annual periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods within those fiscal years. In addition, four other ASUs have been issued amending and clarifying ASU 2014-09 and must be adopted concurrently. • ASU 2016-08 "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) • ASU 2016-10 "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing" • ASU 2016-12 "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients" • ASU 2016-20 "Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements" This update can either be applied under a cumulative effect or retrospective method. We are in the process of reviewing customer contracts and agreements to determine the potential effects of the standard based on our revenue streams and current revenue recognition practices. Following review of customer contracts and agreements, we will summarize contract terms, reference the findings to the applicable new guidance, determine the financial statement impact, and then update policies and controls to ensure application of the new provisions will be applied consistently throughout the Company. As we are still in the process of completing our full assessment of the impact expected from adoption of this standard, we have not yet determined the materiality of the resulting differences in the timing of revenue recognition. The Company expects to adopt the provisions of this standard using the modified retrospective approach, which requires a cumulative effect adjustment to the opening balance of retained earnings on the date of adoption. The Company will adopt ASU 2014-09 effective February 4, 2018.

Accounts and Franchisee Recei19

Accounts and Franchisee Receivables and Other Assets (Tables)	6 Months Ended
	Jul. 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 July 29, 2017 July 30, 2016 January 28, 2017 Short-term franchisee receivables $ 1,584 $ 2,262 $ 1,920 Miscellaneous receivables 10,363 16,018 10,475 Long-term franchisee receivables 11,260 20,971 18,406 Other assets 5,851 3,822 7,643 Allowance for losses on short-term franchisee receivables (1) (1,027 ) (1,263 ) (947 ) Allowance for losses on long-term franchisee receivables (1) (5,999 ) (9,300 ) (7,295 ) Net accounts and franchisee receivables and other assets $ 22,032 $ 32,510 $ 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 Franc20

Allowance for Losses on Franchisee Receivables (Tables)	6 Months Ended
	Jul. 29, 2017
Receivables [Abstract]
Schedule of Provision for Losses on Franchisee Receivables	The allowance for losses on franchisee receivables consists of the following as of: 26 Weeks Ended Thousands July 29, 2017 July 30, 2016 Allowance for losses on franchisee receivables, beginning of period $ 8,242 $ 12,141 Provisions (recoveries) during the period 5,701 (483 ) Write off of franchisee receivables against the allowance (6,917 ) (1,220 ) Other — 125 Allowance for losses on franchisee receivables, end of period $ 7,026 $ 10,563

Other Current and Long-Term L21

Other Current and Long-Term Liabilities (Tables)	6 Months Ended
	Jul. 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 July 29, 2017 July 30, 2016 January 28, 2017 Customer deposits $ 19,645 $ 25,350 $ 19,943 Sales and other taxes 11,256 11,753 11,380 Accrued expenses 30,923 26,335 27,602 Payroll and related items 6,958 5,203 5,766 Store closing costs 9,373 894 7,659 Total Other current and long-term liabilities $ 78,155 $ 69,535 $ 72,350

Related Party Agreements and 22

Related Party Agreements and Transactions (Tables)	6 Months Ended
	Jul. 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 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Thousands Net Commissions from Sears Holdings $ 18,448 $ 22,818 $ 35,485 $ 44,392 Purchases related to cost of sales and occupancy 268,584 302,554 533,114 616,088 Services included in selling and administrative expense 17,370 18,864 33,903 40,312

Summary of Segment Data (Tables

Summary of Segment Data (Tables)	6 Months Ended
	Jul. 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 July 29, 2017 Thousands Hometown Outlet Total Net sales Appliances $ 222,513 $ 116,655 $ 339,168 Lawn and garden 81,237 5,697 86,934 Tools and paint 24,536 3,386 27,922 Other 19,354 16,607 35,961 Total 347,640 142,345 489,985 Costs and expenses Cost of sales and occupancy 280,126 117,511 397,637 Selling and administrative 75,759 39,449 115,208 Depreciation and amortization 1,890 2,814 4,704 Total 357,775 159,774 517,549 Operating loss $ (10,135 ) $ (17,429 ) $ (27,564 ) Total assets $ 297,553 $ 148,890 $ 446,443 Capital expenditures $ 1,096 $ 1,469 $ 2,565 13 Weeks Ended July 30, 2016 Thousands Hometown Outlet Total Net sales Appliances $ 259,446 $ 129,719 $ 389,165 Lawn and garden 91,196 6,871 98,067 Tools and paint 31,369 4,355 35,724 Other 14,603 18,829 33,432 Total 396,614 159,774 556,388 Costs and expenses Cost of sales and occupancy 313,231 128,277 441,508 Selling and administrative 83,554 35,254 118,808 Depreciation and amortization 1,507 1,786 3,293 Gain on sale of asset — (25,269 ) (25,269 ) Total 398,292 140,048 538,340 Operating income (loss) $ (1,678 ) $ 19,726 $ 18,048 Total assets $ 415,501 $ 207,377 $ 622,878 Capital expenditures $ 3,268 $ 1,280 $ 4,548 26 Weeks Ended July 29, 2017 Thousands Hometown Outlet Total Net sales Appliances $ 420,239 $ 242,520 662,759 Lawn and garden 144,800 11,292 156,092 Tools and paint 49,823 7,266 57,089 Other 29,992 32,286 62,278 Total 644,854 293,364 938,218 Costs and expenses Cost of sales and occupancy 510,000 242,115 752,115 Selling and administrative 150,176 75,913 226,089 Depreciation and amortization 2,745 4,163 6,908 Total 662,921 322,191 985,112 Operating loss $ (18,067 ) $ (28,827 ) $ (46,894 ) Total assets $ 297,553 $ 148,890 $ 446,443 Capital expenditures $ 2,351 $ 2,290 $ 4,641 26 Weeks Ended July 30, 2016 Thousands Hometown Outlet Total Net sales Appliances $ 490,380 $ 271,767 $ 762,147 Lawn and garden 169,613 11,559 181,172 Tools and paint 67,486 8,969 76,455 Other 35,714 37,881 73,595 Total 763,193 330,176 1,093,369 Costs and expenses Cost of sales and occupancy 597,369 264,929 862,298 Selling and administrative 164,407 72,393 236,800 Depreciation and amortization 3,076 3,474 6,550 Gain on the sale of assets — (25,269 ) (25,269 ) Total 764,852 315,527 1,080,379 Operating income (loss) $ (1,659 ) $ 14,649 $ 12,990 Total assets $ 415,501 $ 207,377 $ 622,878 Capital expenditures $ 4,574 $ 2,264 $ 6,838

(Loss) Earnings Per Common Sh24

(Loss) Earnings Per Common Share (Tables)	6 Months Ended
	Jul. 29, 2017
Earnings Per Share [Abstract]
Schedule of (Loss) Earnings Per Share, Basic and Diluted	The following table sets forth the components used to calculate basic and diluted loss per share attributable to our stockholders. 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Thousands except income per common share Basic weighted average shares 22,702 22,696 22,702 22,681 Diluted weighted average shares 22,702 22,699 22,702 22,682 Net (loss) income $ (29,446 ) $ 10,642 $ (50,880 ) $ 7,071 (Loss) income per common share: Basic $ (1.30 ) $ 0.47 $ (2.24 ) $ 0.31 Diluted $ (1.30 ) $ 0.47 $ (2.24 ) $ 0.31

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jul. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Restricted Stock Award Activity	Changes during 2017 with respect to the 2015 Grant are noted below. 26 Weeks Ended July 29, 2017 (Shares in Thousands) Shares Weighted-Average Fair Value Per Share on Date of Grant Balance at January 28, 2017 14 $ 9.38 Granted — — Vested — — Forfeited (14 ) 9.38 Balance at July 29, 2017 — $ —

Store Closing Charges (Tables)

Store Closing Charges (Tables)	6 Months Ended
	Jul. 29, 2017
Restructuring and Related Activities [Abstract]
Schedule of Store Closing Costs	Store closing costs for the 13 and 26 weeks ended July 29, 2017 were as follows: Thousands Lease Termination Costs (1) Inventory Related (1) Impairment and Accelerated Depreciation (2) Other Charges (3) Total Store Closing Costs 13 weeks ended July 29, 2017 $ 9,397 $ 1,796 $ 979 $ 386 $ 12,558 Thousands Lease Termination Costs (1) Inventory Related (1) Impairment and Accelerated Depreciation (2) Other Charges (3) Total Store Closing Costs 26 weeks ended July 29, 2017 $ 8,447 $ 1,796 $ 979 $ 386 $ 11,608 (1) Recorded within cost of sales and occupancy in the Condensed Consolidated Statements of Operations. Lease termination costs are net of estimated sublease income, and include the reversal of closed store reserves when a lease agreement is terminated for an amount less than the remaining reserve established for the store. (2) Recorded within depreciation and amortization in the Condensed Consolidated Statements of Operations. (3) Recorded within selling and administrative in the Condensed Consolidated Statements of Operations.
Schedule of Store Closing Reserves	Store closing reserves of $9.4 million , $0.8 million , and $7.7 million are included within other current liabilities in the Condensed Consolidated Balance Sheets at July 29, 2017, July 30, 2016 and January 28, 2017, respectively. Thousands Total Balance at January 28, 2017 $ 7,659 Store closing benefit (950 ) Payments/utilization (2,490 ) Balance at April 29, 2017 $ 4,219 Store closing costs 9,783 Payments/utilization (4,629 ) Balance at July 29, 2017 $ 9,373

Background and Basis of Prese27

Background and Basis of Presentation (Details)	6 Months Ended
	Jul. 29, 2017storesegmentstate
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of stores | store	932
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	Jul. 29, 2017	Jan. 28, 2017	Jul. 30, 2016
Receivables [Abstract]
Short-term franchisee receivables	$ 1,584	$ 1,920	$ 2,262
Miscellaneous receivables	10,363	10,475	16,018
Long-term franchisee receivables	11,260	18,406	20,971
Other assets	5,851	7,643	3,822
Allowance for losses on short-term franchisee receivables	(1,027)	(947)	(1,263)
Allowance for losses on long-term franchisee receivables	(5,999)	(7,295)	(9,300)
Net accounts and franchisee receivables and other assets	$ 22,032	$ 30,202	$ 32,510

Allowance for Losses on Franc29

Allowance for Losses on Franchisee Receivables (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 29, 2017USD ($)location	Jul. 29, 2017USD ($)location	Jul. 30, 2016USD ($)
Provision for Losses on Franchisee Receivables [Roll Forward]
Number of franchise locations terminated | location	14	14
Franchise Receivable
Provision for Losses on Franchisee Receivables [Roll Forward]
Allowance for losses on franchisee receivables, beginning of period		$ 8,242	$ 12,141
Provisions (recoveries) during the period		5,701	(483)
Write off of franchisee receivables against the allowance		(6,917)	(1,220)
Other		0	125
Allowance for losses on franchisee receivables, end of period	$ 7,026	7,026	$ 10,563
Previous Franchisee note Receivable
Provision for Losses on Franchisee Receivables [Roll Forward]
Promissory note carrying amount	5,500	5,500
Loss on transaction	5,500
New Franchisee Note Receivable
Provision for Losses on Franchisee Receivables [Roll Forward]
Promissory note carrying amount	$ 1,500	$ 1,500

Other Current and Long-Term L30

Other Current and Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jul. 29, 2017	Jan. 28, 2017	Jul. 30, 2016
Payables and Accruals [Abstract]
Customer deposits	$ 19,645	$ 19,943	$ 25,350
Sales and other taxes	11,256	11,380	11,753
Accrued expenses	30,923	27,602	26,335
Payroll and related items	6,958	5,766	5,203
Store closing costs	9,373	7,659	894
Total Other current and long-term liabilities	$ 78,155	$ 72,350	$ 69,535

Related Party Agreements and 31

Related Party Agreements and Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Minimum
Related Party Transaction [Line Items]
Invoice payment term			2 days
Maximum
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%		57.00%
ESL | Sears Holdings
Related Party Transaction [Line Items]
Beneficial interest acquired by related party, percentage	49.00%		49.00%
Sears Holdings Corporation
Related Party Transaction [Line Items]
Maximum percentage of royalty rates			6.00%
Net Commissions from Sears Holdings	$ 18,448	$ 22,818	$ 35,485	$ 44,392
Purchases related to cost of sales and occupancy	268,584	302,554	533,114	616,088
Services included in selling and administrative expense	17,370	18,864	$ 33,903	40,312
Invoice payment term			10 days
Discounts received	1,400	1,000	$ 2,000	1,000
Sears Holdings Corporation | Minimum | Payments for Merchandise Inventory to Related Party
Related Party Transaction [Line Items]
Early payment discount percentage			0.37%
Sears Holdings Corporation | Maximum | Payments for Merchandise Inventory to Related Party
Related Party Transaction [Line Items]
Early payment discount percentage			0.43%
Seritage Growth Properties
Related Party Transaction [Line Items]
Occupancy payments	$ 300	$ 200	$ 600	$ 400

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 31, 2012	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016	Jan. 28, 2017	Nov. 01, 2016
Debt Instrument [Line Items]
Increases in aggregate principal				$ 100,000,000
Payments for refinancing fees						$ 5,400,000
Remaining and is included in Prepaid and Other current assets		$ 4,400,000		4,400,000
Short-term debt outstanding under the Senior ABL Facility		$ 112,400,000		$ 112,400,000
LIBOR
Debt Instrument [Line Items]
Blended interest rate		4.52%		4.52%
Base Rate
Debt Instrument [Line Items]
Blended interest rate		6.52%		6.52%
Sears Holdings Corporation
Debt Instrument [Line Items]
Invoice payment term				10 days
Discounts received		$ 1,400,000	$ 1,000,000	$ 2,000,000	$ 1,000,000
Minimum
Debt Instrument [Line Items]
Invoice payment term				2 days
Minimum | Sears Holdings Corporation | Payments for Merchandise Inventory to Related Party
Debt Instrument [Line Items]
Early payment discount percentage				0.37%
Maximum
Debt Instrument [Line Items]
Invoice payment term				3 days
Maximum | Sears Holdings Corporation | Payments for Merchandise Inventory to Related Party
Debt Instrument [Line Items]
Early payment discount percentage				0.43%
Swingline Loans
Debt Instrument [Line Items]
Aggregate maximum borrowings		25,000,000		$ 25,000,000
Letter of Credit
Debt Instrument [Line Items]
Aggregate maximum borrowings		75,000,000		75,000,000
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		86,800,000		86,800,000
Remaining borrowing capacity had credit commitments matured		52,000,000		52,000,000
Credit facility borrowings increase				23,000,000
Senior ABL Facility | Letter of Credit
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 6,100,000		$ 6,100,000
Senior ABL Facility Extended Commitments
Debt Instrument [Line Items]
Aggregate maximum borrowings							170,000,000
Senior ABL Facility Extended Commitments | Minimum | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				3.50%
Senior ABL Facility Extended Commitments | Minimum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%
Senior ABL Facility Extended Commitments | Maximum | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				4.50%
Senior ABL Facility Extended Commitments | Maximum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				3.50%
Senior ABL Facility Non-Extended Commitments
Debt Instrument [Line Items]
Aggregate maximum borrowings							$ 80,000,000
Senior ABL Facility Non-Extended Commitments | Minimum | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				2.00%
Senior ABL Facility Non-Extended Commitments | Minimum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				1.00%
Senior ABL Facility Non-Extended Commitments | Maximum | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%
Senior ABL Facility Non-Extended Commitments | Maximum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				1.50%

Summary of Segment Data (Detail

Summary of Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016	Jan. 28, 2017
Segment Reporting Information [Line Items]
Net sales	$ 489,985	$ 556,388	$ 938,218	$ 1,093,369
Cost of sales and occupancy	397,637	441,508	752,115	862,298
Selling and administrative	115,208	118,808	226,089	236,800
Depreciation and amortization	4,704	3,293	6,908	6,550
Gain on sale of assets	0	(25,269)	0	(25,269)
Total costs and expenses	517,549	538,340	985,112	1,080,379
Operating (loss) income	(27,564)	18,048	(46,894)	12,990
Total assets	446,443	622,878	446,443	622,878	$ 468,426
Capital expenditures	2,565	4,548	4,641	6,838
Appliances
Segment Reporting Information [Line Items]
Net sales	339,168	389,165	662,759	762,147
Lawn and garden
Segment Reporting Information [Line Items]
Net sales	86,934	98,067	156,092	181,172
Tools and paint
Segment Reporting Information [Line Items]
Net sales	27,922	35,724	57,089	76,455
Other
Segment Reporting Information [Line Items]
Net sales	35,961	33,432	62,278	73,595
Hometown
Segment Reporting Information [Line Items]
Net sales	347,640	396,614	644,854	763,193
Cost of sales and occupancy	280,126	313,231	510,000	597,369
Selling and administrative	75,759	83,554	150,176	164,407
Depreciation and amortization	1,890	1,507	2,745	3,076
Gain on sale of assets		0		0
Total costs and expenses	357,775	398,292	662,921	764,852
Operating (loss) income	(10,135)	(1,678)	(18,067)	(1,659)
Total assets	297,553	415,501	297,553	415,501
Capital expenditures	1,096	3,268	2,351	4,574
Hometown | Appliances
Segment Reporting Information [Line Items]
Net sales	222,513	259,446	420,239	490,380
Hometown | Lawn and garden
Segment Reporting Information [Line Items]
Net sales	81,237	91,196	144,800	169,613
Hometown | Tools and paint
Segment Reporting Information [Line Items]
Net sales	24,536	31,369	49,823	67,486
Hometown | Other
Segment Reporting Information [Line Items]
Net sales	19,354	14,603	29,992	35,714
Outlet
Segment Reporting Information [Line Items]
Net sales	142,345	159,774	293,364	330,176
Cost of sales and occupancy	117,511	128,277	242,115	264,929
Selling and administrative	39,449	35,254	75,913	72,393
Depreciation and amortization	2,814	1,786	4,163	3,474
Gain on sale of assets		(25,269)		(25,269)
Total costs and expenses	159,774	140,048	322,191	315,527
Operating (loss) income	(17,429)	19,726	(28,827)	14,649
Total assets	148,890	207,377	148,890	207,377
Capital expenditures	1,469	1,280	2,290	2,264
Outlet | Appliances
Segment Reporting Information [Line Items]
Net sales	116,655	129,719	242,520	271,767
Outlet | Lawn and garden
Segment Reporting Information [Line Items]
Net sales	5,697	6,871	11,292	11,559
Outlet | Tools and paint
Segment Reporting Information [Line Items]
Net sales	3,386	4,355	7,266	8,969
Outlet | Other
Segment Reporting Information [Line Items]
Net sales	$ 16,607	$ 18,829	$ 32,286	$ 37,881

(Loss) Earnings Per Common Sh34

(Loss) Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Jul. 30, 2016	Jul. 29, 2017	Jul. 30, 2016
Earnings Per Share [Abstract]
Basic weighted average shares (in shares)	22,702,000	22,696,000	22,702,000	22,681,000
Diluted weighted average shares (in shares)	22,702,000	22,699,000	22,702,000	22,682,000
Net (loss) income	$ (29,446)	$ 10,642	$ (50,880)	$ 7,071
(Loss) income per common share:
Basic (in dollars per share)	$ (1.30)	$ 0.47	$ (2.24)	$ 0.31
Diluted (in dollars per share)	$ (1.30)	$ 0.47	$ (2.24)	$ 0.31
Unvested shares of restricted stock (in shares)	14,000		14,000

Equity (Narrative) (Details)

Equity (Narrative) (Details) - USD ($)	May 16, 2016	Jul. 29, 2017	Apr. 29, 2017	Jul. 29, 2017	Jan. 30, 2016	Feb. 01, 2014	Jul. 29, 2017	Jul. 29, 2017	Dec. 31, 2013
Stock-based Compensation
Shares reserved under plan (in shares)		4,000,000		4,000,000			4,000,000	4,000,000
Share Repurchase Program
Authorized amount									$ 25,000,000
Stock repurchased (in shares)		0		0
Remaining authorized repurchase amount		$ 12,500,000		$ 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		14,000
Vested (in shares)	36,530			0
Unvested (in shares)		314,839		314,839			314,839	314,839
Share-based compensation income				$ 100,000
Total unrecognized compensation		$ 800,000		$ 800,000			$ 800,000	$ 800,000
Compensation to be recognized term				2 years 6 months
Restricted Stock Units (RSUs)
Stock-based Compensation
Unvested (in shares)		189,455		189,455			189,455	189,455
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)							34,091	33,333
Unvested (in shares)		125,384		125,384			125,384	125,384

Equity (Restricted Stock Awards

Equity (Restricted Stock Awards) (Details) - Restricted Stock - $ / shares	May 16, 2016	Jul. 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

Store Closing Charges (Narrativ

Store Closing Charges (Narrative) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 29, 2017USD ($)store	Jul. 29, 2017USD ($)store	Apr. 29, 2017USD ($)	Jan. 28, 2017USD ($)	Jul. 30, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Store closing restructuring reserves | $	$ 9,373	$ 9,373	$ 4,219	$ 7,659	$ 800
Hometown | Facility Closing
Restructuring Cost and Reserve [Line Items]
Number of store closings	70	79
Outlet | Facility Closing
Restructuring Cost and Reserve [Line Items]
Number of store closings	11	12

Store Closing Charges (Schedule

Store Closing Charges (Schedule of Store Closing Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Apr. 29, 2017	Jul. 29, 2017
Restructuring Cost and Reserve [Line Items]
Total Store Closing Costs	$ 9,783	$ (950)
Facility Closing
Restructuring Cost and Reserve [Line Items]
Total Store Closing Costs	12,558		$ 11,608
Cost of Sales and Occupancy | Facility Closing
Restructuring Cost and Reserve [Line Items]
Lease Termination Costs	9,397		8,447
Inventory Related	1,796		1,796
Deprecation and Amortization | Facility Closing
Restructuring Cost and Reserve [Line Items]
Impairment and Accelerated Depreciation	979		979
Sellingl and Administrative Expenses | Facility Closing
Restructuring Cost and Reserve [Line Items]
Other Charges	$ 386		$ 386

Store Closing Charges (Schedu39

Store Closing Charges (Schedule of Store Closing Reserves) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2017	Apr. 29, 2017	Jul. 29, 2017
Restructuring and Related Activities [Abstract]
Closed store reserve, Beginning balance	$ 4,219	$ 7,659	$ 7,659
Store closing cost (benefit)	9,783	(950)
Payments/utilization	(4,629)	(2,490)
Closed store reserve, Ending balance	$ 9,373	$ 4,219	$ 9,373